Helping you become more competitive

1
The Economy! A light at the end of the tunnel!
Terry R. Head President International
Association of Movers Washington, D.C. USA
2
The Economy! A light at the end of the tunnel!

• WHO IS IAM
• The largest international trade association and
  advocacy group for household goods forwarders,
  movers and service providers
• Founded in 1962 to represent the interests of
  military TSPs broadened scope to commercial
  business in 1970s
• Currently provide the largest networking
  opportunity for business development within the
  industry
• Membership at present 2,200 companies in more
  than 170 countries and territories

3
The Economy! A light at the end of the tunnel!

• RECENT NAME CHANGE
• Name changed January 1, 2009 from
• Household Goods Forwarders Association of
  America, Inc. (HHGFAA) to
• International Association of Movers (IAM)
• To better recognize and serve the needs of the
  global membership
• Unanimous acceptance for both the name change and
  associations expanding mission

4
The Economy! A light at the end of the tunnel!
5
The Economy! A light at the end of the tunnel!

• ONE YEAR AGO
• Industry was adapting to a rapidly changing world
  of globalization
• The U.S. dollar was declining and impacted buying
  power
• U.S. Exports were increasing
• Ocean containers and slots on vessels were scarce
• Fuel, supplies and port costs were soaring

6
The Economy! A light at the end of the tunnel!
Where Are We Today? REPRESSION Worse than a
recession not as bad as a depression
7
The Economy! A light at the end of the tunnel!

• IN THIS ECONOMY (2009)
• WORLD BANK REPORT ON GLOBAL TRADE
• Weakest since 1970
• International trade will shrink for the first
  time in 25 years
• U.N. GLOBAL OUTLOOK REPORT
• Decline of export growth and capital inflows for
  U.S. developing countries
• U.S. GDP will decline 1
• Euro Zone down by .7
• Japan down by .3

8
The Economy! A light at the end of the tunnel!

• OECD
• Worldwide unemployment up 25 million by 2010
• INTERNATIONAL LABOR ORGANIZATION (ILO)
• Noted Latin America could lose 2.4 million jobs
  in 09
• First reduction in employment in 6 years
• IATA
• Forecasts air industry loss of 2.5Bil for 2009
  on the heels of a 5Bil loss in 2008

9
The Economy! A light at the end of the tunnel!

• ALSO RESPONDING TO
• NEWLY EXPANDED SECURITY REQUIREMENTS
• U.S. Transportation Security Agency (TSA)
  Screening Mandate
• Unknown Shippers only on all-cargo aircraft
• 50 cargo on passenger airlines by Feb. 2009
• 100 cargo on passenger airlines by Aug. 2010
• TSA will now screen international inbound cargo
• Who? How? At What Cost?
• New Security Bold Seal Requirement Oct. 08
• Ocean Containers
• New 102 Importer Security Filing Program
• TSA requires more data on shipment and shippers

10
The Economy! A light at the end of the tunnel!

• ALSO RESPONDING TO
• PIRATES!
• In the Horn of Africa Region
• Ocean Carriers re-rerouting vessels and cargo
  away from Suez Canal
• Insurance for vessels and cargo is up
• 400 million / U.N. Security Council
• Fuel (bunker) expenses were higher due to longer
  voyages with transit times increasing
• U.S. Navy (6th Fleet) now engaging with U.S.
• Africa Command and NATO

11
The Economy! A light at the end of the tunnel!

• DURING 2009
• WEATHER IS PREDICTED TO BE BAD
• FORECAST FOR 14 NAMED STORMS
• 7 hurricanes
• 3 major Category 3 to 5 with 111mph winds
• 70 DAYS TROPICAL STORM WINDS
• In the Atlantic Basin alone
• 30 DAYS OF HURRICANE CONDITIONS 6/1-11/30
• What will the impact be on ports and shipping?

12
The Economy! A light at the end of the tunnel!

• THERE IS LIGHT AT THE END OF THE TUNNEL
• No QuestionIts an oncoming train
• Question is
• Who will be on it?
• Who will get run over?

13
The Economy! A light at the end of the tunnel!

• SEEING LIGHT AT THE END OF THE TUNNEL IN THE U.S.
  ECONOMY
• SIX OF TEN LEADING INDICATORS IMPROVED
• Interest Rate Spread
• Real Money Supply
• Building Permits (new construction starts)
• Manufacturer New Orders for Consumer Goods
• Manufacturer New Orders for Non-Defense Goods

14
The Economy! A light at the end of the tunnel!

• SOME LIGHT REMAINS DIM
• NEGATIVE INDICATORS WERE
• Initial Claims for Unemployment Insurance
• Stock (Equity) Prices
• Index of Consumer Expectations (Confidence)
• Average Weekly Manufacturing Hours

15
The Economy! A light at the end of the tunnel!

• OUR CYCLICAL NATURE
• DOWNTURNS IN OUR INDUSTRY ARE NOT NEW
• DOWN CYCLES IN TRANSPORT USUALLY
• LAST FOR 16 MONTHS
• THE INDUSTRY COLLECTIVELY BENEFITS BY ECONOMIC
  CONTRACTION AS WELL AS EXPANSION

16
The Economy! A light at the end of the tunnel!

• SHIPMENT VOLUME HAS INCREASED IN SOME MARKETS AND
  DECLINED IN OTHERS
• Middle East is hot despite global freeze
• BEST OF TIMES WORST OF TIMES
• In 2008, some movers saw their worst year ever
  others saw their best year
• U.S. GOVERNMENT (STATE) AND MILITARY TRAFFIC
  REMAINED ROBUST

17
The Economy! A light at the end of the tunnel!

• THE WAY TO THE LIGHT AT TUNNELS END
• Go Back to Class
• Know Your Numbers
• Protect Your Home Turf
• Market, Market, Market
• Find Somebody to Sell to
• Mix Things Up a Bit
• The Good, The Bad and In-between

18
The Economy! A light at the end of the tunnel!

• GO BACK TO CLASS
• HOW TO GET THINGS ROLLING AGAINWHAT TO DO UNTIL
  THINGS ARE
• Examine your companys mindset
• Stay positive
• Believe in your survivability
• Stay open to opportunities
• Invest wisely technology, fleet staff
• Be focused and energetic
• Find controllable factors

19
The Economy! A light at the end of the tunnel!

• KNOW YOUR NUMBERS
• EXCELLENT OPPORTUNITY TO RE-EVALUATE YOUR
  BUSINESS PLAN
• Numbers are the language of any business
• What are the key indicators?
• Test and retest your numbers/indicators
• Stay lean / manage your cash
• Monitor credit extensions
• Track timeliness of invoices
• YOU CANT IMPROVE WHAT YOU CANT
• MEASURE

20
The Economy! A light at the end of the tunnel!

• PROTECT YOUR HOME TURF
• CLIENTS CUSTOMERS
• Build a Loyalty Fence
• Who is most important? Treat them so
• Educate current clients/accounts
• Understand needs and priorities
• It costs 6 times more to obtain a new customer
  than to retain a current one
• ASK QUESTIONS NOW
• What is important to your client base?
• How can you help them?

21
The Economy! A light at the end of the tunnel!

• MARKET, MARKET, MARKET
• DONT TRIM EXPENSES NOW
• Know what has worked in the past
• Measure results on all marketing programs
• Repeat what works
• Dont spray and pay!
• Generate new leads
• Take advantage of low cost-no cost efforts
• Use press releases, banner ads, blast email
• Attend trade shows and association meetings
• VOLUNTEER - CHAIRITIES AND NON-PROFITS
• Build new relationships

22
The Economy! A light at the end of the tunnel!

• FIND SOMEBODY TO SELL TO
• REFINE SALES EFFORTS
• Good times mask bad sales
• Assess your sales people for effectiveness
• Focus client-centric sales efforts
• Meet with more accounts
• Become consultative and educate
• HIRE OR INTERVIEW AVAILABLE SALES PEOPLE
• Good time to listen and learn about competitors

23
The Economy! A light at the end of the tunnel!

• MIX THINGS UP A BIT
• REVISE OPERATIONAL PROCEDURES
• Re-evaluate what is and isnt working in your
  company
• Established processessuccess or failure?
• Expense for software and consulting assistance
  might be less costly now
• Web-based solutions are on the rise
• Train your staff moreNOW
• Examine all prior business practices to trim and
  become more efficient

24
The Economy! A light at the end of the tunnel!

• THE GOOD, BAD and IN-BETWEEN
• TRIMMING STAFF WHEN IS IT RIGHT?
• Leadership needs to be involved
• No bad employees just bad managers
• Time to coachem up or shipem out
• Three types of employees
  Good, Bad and In-Between
• In-Betweens are just okay
• Go for the good/great employees
• Turnover can be healthy
• Cross train employees

25
The Economy! A light at the end of the tunnel!

• WHAT IAM IS DOING
• INTERNATIONAL SHIPPERS ASSOCIATION (ISA)
• A cooperative buying group
• Expanding into Pacific Rim
• RECEIVABLE PROTECTION PROGRAM (RPP)
• Expanding to monitor slow payers
• GLOBAL MEMBER NEEDS SURVEY
• Determining what members want/need from IAM
• TECHNOLOGY PARTNERSHIP
• FIDI, AMSA, CAM, PAIMA, FEDEMAC
• Global standards to meet security and
  data exchange
  requirements
• FOCUSING ON CONSUMER EDUCATION

26
The Economy! A light at the end of the tunnel!
THANK YOU! International Association of
Movers 47th Annual Meeting Orlando, FL October
10-13, 2009 www.IAMovers.org