Q4 2019 Jarrett Industry Update (NASGW) by Jarrett

Jarrett Quarterly Industry Update Q4 2019 / Volume 12

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NOTE FROM THE PRESIDENT

Customer account teams gathered to take photos for our 2019 holiday cards

Mike and Diane Jarrett at the 2019 Inc. 5000 Conference in Phoenix, Arizona

ike so many businesses everywhere, quarter four has been full of busy days preparing for the new year that will undoubtedly bring new opportunities!

catered by Old Carolina Barbecue and Baja West Coast Kitchen. It was a great day for celebrating a successful year of growth and continued unparalleled service to our customers.

In this Q4 Industry Update, you can read about the various holiday initiatives we had going on here at Jarrett in an effort to help our community during a time that can often be full of hardship for many people. We are always thrilled around the office to take part in collecting canned goods, buying Christmas presents for children, or giving bags full of Thanksgiving essentials to families in our area who might not enjoy turkey and stuffing otherwise. Investing in our community and practicing civic responsibility is one of our core values. Providing opportunities for our employees to be a part of something bigger than themselves perfectly aligns with the core values and our goals as a business.

Although the end of the year is full of celebrations and busy schedules, we make sure to keep our client’s priorities at the top of our list, never letting the fun we have here sacrifice efficiency or reliability for our clients. They need stability through the year-end busy season as much, if not more, as other times.

Amongst all the holiday initiatives we have going on to support our community, we have brought some holiday cheer to our Orrville office with a cookie competition! For our final celebration of our 20th anniversary, we had employees volunteer as bakers to bring in their best cookie confection. Everyone else was happily willing to participate as judges. Prizes were given to the individuals who were voted the tastiest, prettiest, and overall best cookie! On the same day, we held our annual Christmas luncheon

Q4 2019 • Volume 12 • Page 1

Earlier this quarter, Diane and I attended the Inc. 5000 conference in Phoenix, AZ. We heard inspiring insight from many successful business leaders, including Alex Rodriguez, a favorite of ours from the conference. While we were there, we also challenged ourselves to a hike to the top of Camelback Mountain. It was a challenging hike, but well worth it once we reached the peak. Jarrett was on the Inc. 5000 list for the 14th time, an accomplishment only achieved by six companies in the list’s history.

named as both a 2019 Food Logistics Top Software and Technology Provider as well as a 2019 Green Supply Chain award winner from Supply & Demand Chain Executive. The Green award honors companies that make sustainability central to their supply chain strategy and have measurable goals which are worked toward daily. The Top Software and Technology Providers award recognizes providers that “ensure a safe, efficient and reliable global food and beverage supply chain” (foodlogistics.com/awards). We are thrilled to have been named to both of these awards in 2019. Like many this time of year, it’s hard to believe that we have reached the end of a year and begun another! We hope you ended 2019 strong and started this new decade even stronger. From everyone at Jarrett, we wish you prosperity and growth as you set out to reach your new goals this new year. Have an excellent Q1 and 2020!

This edition of the Industry Update also contains a featured article on supply chain visibility and the numerous benefits companies gain because of it. The article covers how supply chain visibility keeps you one step ahead and supports real-time, real-life results. In other exciting news, Jarrett was

W. MICHAEL JARRETT President & CEO

WHAT’S INSIDE 3-4

SUPPLY CHAIN VISIBILITY

FUEL UPDATE

LESS THAN TRUCKLOAD REPORT

TRUCKLOAD REPORT

PARCEL NEWS

9-10

THE AMAZON EFFECT

"How Data Can Help Align Services with Customer Demand"

Q4 update of diesel fuel price fluctuations

2020 will be a busy year for the less-thantruckload market

The largest carrier shut down in years occurred as Celadon Group Inc. filed for bankruptcy protection in December

Holiday shopping flooded the market with millions of packages this past holiday season and parcel carriers worked to keep everything delivering on time

Amazon.com Inc focused its attention on its next-day shipping option for Prime members as Cyber Monday and the holiday season tested Amazon’s logistics capabilities

11-12 TRENDING TOPICS

The United Auto Workers strike at General Motors Co. ended early in the quarter, after causing considerable disruptions throughout the automakers industry

13-14 LIFE AT JARRETT

"Caring for our Community: Holiday Edition"

Q4 2019 • Volume 12 • Page 2

SUPPLY CHAIN VISIBILITY

supply chain VISIBILITY How Data Can Help Align Services with Customer Demand

Q4 2019 • Volume 12 • Page 3

BY MIKE JARRETT

SUPPLY CHAIN VISIBILITY

hen ordering items or purchasing tickets online, you know the drill: click “order now” and within minutes, you receive an email confirming your purchase. Next, you are alerted that your order has been shipped, and you’re given a tracking number to follow its progress from the distribution center to your mailbox. The process is efficient, transparent, and customer-focused. Supply chain visibility works the same way for shippers. Supply chain visibility is the capability to monitor shipments from departure through destination, using data gleaned from a network of shared information across services and organizations. It provides accurate, timely information, and transparency through the entire cycle to both shipper and receiver, facilitates the movement of goods, and the flow of relevant information. This end-to-end visibility allows the shipper to develop strategies that increase efficiency and fulfill customer expectations.

STAY ONE STEP AHEAD The shipping industry is fraught with delays and disruptions. Heavy traf-

dard to expedited. Supply chain visibility enables you to quickly align your services with your customer’s demand.

REAL-TIME REPORTS PRODUCE REAL-LIFE RESULTS Data are the key components of successful management of any operation. Supply chain visibility provides data that improve services and manage costs. Rather than hoping a shipment arrives on time, businesses can rely on solid, verifiable, realtime information to ensure timely delivery. Most companies that haven’t embraced supply chain visibility are reluctant to do so because of the significant investment in technology. Business Intelligence software, hardware, servers, and staff training costs money that most leaders would rather spend in other areas. In this case, third-party logistics providers (3PLs) can be extremely beneficial — they have the technology, and the investment is a regular cost of doing business.

''Most companies that haven’t embraced supply chain visibility are reluctant to do so because of the significant investment in technology. [...] In this case, third-party logistics can be extremely beneficial — they have the technology, and the investment is a regular cost of doing business.''

fic, road repair and closures, accidents, and weather can wreak havoc on a driver’s itinerary. Supply chain visibility helps mitigate these issues by providing information that allows for detailed routing and back-up planning before the shipment even hits the road. Full visibility from pickup to delivery enables agility, allowing the shipper and receiver to flex up or down in response to unexpected disruptions. Information is accessible in real time, allowing stakeholders to proactively adjust plans, rather than scramble after receiving bad news. It provides foresight (“I will … ”), which is always better than hindsight (“I should have … ”). Supply chain visibility can increase the velocity of a shipment, as well. If a customer has an unexpected urgent need when the shipment is mid-transit, the mode of delivery can change from stan-

Clients who value the services of a 3PL realize great savings in money, time, and effort. For example, a consumer goods company that ships food to bix box stores must adhere to a strict “on time in full” (OTIF) required delivery date, or pay substantial fines. With supply chain visibility, the customer has verifiable data to prove the shipment arrived promptly. A telecommunications equipment manufacturer must know when machinery is delivered, because installation crews will be standing by, getting paid, whether the equipment is there or not. At oil and natural gas development sites, equipment is delivered on flatbed trucks to rural fields, where riggers and cranes must be standing by to offload. Without supply chain visibility, these clients would be wasting money and losing valuable time. Visibility of orders and shipments is key to a stronger supply chain. When real-time data is available from shipper to final destination, all stakeholders benefit.

Q4 2019 • Volume 12 • Page 4

FUEL UPDATE

Gasoline & Diesel FUEL UPDATE

AVERAGE DIESEL FUEL PRICES AS OF DECEMBER 31, 2019:

ON-HIGHWAY DIESEL FUEL PRICES

• U.S. National: $3.069 • East Coast: $3.096 • New England: $3.114 • Central Atlantic: $3.271 • Lower Atlantic: $2.975 • Midwest: $2.978 • Gulf Coast: $2.808 • Rocky Mountain: $3.113 • West Coast: $3.623 • California: $3.899

WHAT WE PAY FOR A GALLON

Q4 2019 • Volume 12 • Page 5

LESS THAN TRUCKLOAD FREIGHT

LESS THAN TRUCKLOAD FREIGHT 2020 promises to be an interesting year for the less-than-truckload (LTL) market. LTL revenues may dip slightly to begin the year, but around mid-year, revenues are expected to rise again. Many factors could affect the 2020 LTL market, ranging from any major weather conditions to tariff expectations. 2020 is also a presidential election year in the United States, which could also have an effect on shipment volumes. Fuel prices could rise this year, as unrest in the Middle East could lead to fluctuating fuel costs.

General Rate Increases • January 6, 2020 - FedEx Freight: average increase of 5.9% across the United States and shipments between the United States and Canada. (Transportation Topics)

Other News • YRC Worldwide, headquartered in Overland Park, Kansas, decided to reorganize its less-than-truckload network, by consolidating regional and national subsidiaries into “co-habita-

tion” terminals. YRC Freight will go from 384 terminals down to 320 by the end of 2020. (JOC)

per day dropped 7.7% Y/Y for UPS Frieght, revenue per LTL hundredweight rose almost 4%. (WSJ)

• Roadrunner Transportation Systems Inc. plans to decrease its dry van business by reducing their fleet by over 50%. This would result in layoffs of around 10% of the company’s total workforce. (DC Velocity)

• Thomasville, North Carolina lessthan-truckload carrier, Old Dominion Freight Line Inc. (ODFL)’s third quarter net income fell 5.4%. (Winston Salem Journal)

• Roadrunner Transportation Systems Inc. located in Downers Grove, Illinois, sold its intermodal business unit to Universal Logistics Holdings Inc., located in Warren, Michigan, in early November. Roadrunner then sold D&E Transport, its flatbed business, in early December. (DC Velocity & Supply Chain Dive) • XPO, which took a step back from acquisitions earlier in 2019, has decided to concentrate on its mergers and acquisitions strategy again, with a focus on smaller deals. Mergers and acquisitions comprise 10-15% of CEO Brad Jacobs’ focus. (SupplyChainDive)

• ODFL joined the S&P 500 on the New York Stock Exchange in December. (Winston Salem Journal) • Saia Corp., a less-than-truckload carrier located in Johns Creek, Georgia, saw its third quarter revenue up 10.2% Y/Y and net profit up 16.9% Y/Y. Saia’s expansion into the northeast (New Hampshire and Massachusetts) and a new terminal in Long Beach, California helped drive profits and revenue up. Daily shipments were up 7.3% Y/Y, in part due to expansions, along with the shutdown of northeast regional carrier New England Motor Freight in early 2019. (JOC)

• While less-than-truckload shipments

Q4 2019 • Volume 12 • Page 6

TRUCKLOAD REPORT

TRUCKLOAD REPORT T

he final quarter of 2019 brought the largest carrier shut down in years, as Celadon Group Inc. filed for bankruptcy protection in December. This was a trend which saw nearly 800 trucking firms close their doors in 2019, which has provided more opportunities for more mid-size and owner operators to get more consistent business. Rates continued to trend down from 2017-18 levels. Expect rates not to shift significantly in the early part of 2020. Rate increases (in the 4-6% range on average) are expected sometime closer to the second half of 2020, as carriers are expecting freight flow increases and capacity reductions to affect operations later in the year.

Celadon Shut Down • Two former executives at Celadon Group Inc. were indicted for their part in an alleged fraud scheme that cost company shareholders over $60 million. Both could face decades in prison. (Indy Star) • Following the indictment, Celadon, the truckload carrier headquartered in Indianapolis, Indiana, filed for Chapter 11 bankruptcy protection on December 9th. “We have diligently explored all possible options to restructure Celadon and keep business operations ongoing; however, a number of legacy and market headwinds made this impossible to achieve,” Chief Executive Officer, Paul Svindland, said in the statement. Over 3,800 employees including 2,500 drivers were affected by the sudden shutdown. (WSJ) • According to freight industry experts, the trucking market should be able to absorb the biggest trucking bankruptcy in years. While Celadon had an estimated $611 million in revenue in 2019, their market share is small compared to the almost $200 billion truckload market. Because capacity was down compared to 2018 levels, there are more trucks than

Q4 2019 • Volume 12 • Page 7

loads in the general market. (WSJ) • A bankruptcy judge authorized Celadon to pay workers by drawing from an $8.2 million Chapter 11 loan. (WSJ)

Other News •

Stevens Transport Inc., a trucking company located in Dallas, Texas, shut down its Stevens Tanker Division, cutting nearly 600 jobs across Texas. (Dallas News)

•

KLLM Transport and Marten Transport, both refrigerated intermodal carriers, purchased over 1,000 containers in 2019. This comes as BNSF Railway and Norfolk Southern Railway are looking for trucking companies to use containers instead of trailers for intermodal operations. (JOC)

•

J.B. Hunt Transport Services Inc.’s revenue fell short of expectations, even after a third quarter increase in revenue of 7%. (Wall Street Journal (WSJ))

•

GDS Express Inc., a freight company out of Akron, Ohio with over 70 drivers, abruptly shut down a week before Christmas. (The Columbus Dispatch)

•

Truckload carrier Knight-Swift Transportation Holdings Inc.’s third quarter revenue was down 10.8% Y/Y. This, along with capacity, caused Knight-Swift to lower its fourth quarter earnings forecast. (WSJ & MarketWatch)

•

The average non-paid empty miles per load for truckload operations at J.B. Hunt Transportation Service Inc. was 95 miles in the third quarter, compared to 83.7 miles in the third quarter of 2018. (WSJ)

PARCEL NEWS

PAR CEL NEW S T

he fourth quarter each year brings holiday shopping that floods the market with millions of packages needing timely deliveries. The fourth quarter 2019 was no exception, as an estimated two billion packages were delivered between Thanksgiving and Christmas. Both United Parcel Service Inc. (UPS) and FedEx Corporation (FedEx) announced rate increases, with UPS’ increases going into effect on December 29th, and FedEx’s increases waiting until January 6th to go into effect. • UPS raised the rates for its UPS Ground, UPS Air and International services by an average of 4.9% on December 29th. UPS announced this two months after FedEx announced their 4.9% rate increase that goes into effect on January 6th. (Logistics Management) • Next-day air shipping volume at UPS increased 24% in the third quarter, which helped increase profit to $1.75 billion. Domestic package revenue also rose 9.8%. (WSJ) • UPS and Michaels Cos. Inc. announced a partnership that will have over 1,000 of Michaels’ stores become pick-up and drop-off locations for UPS packages. (MarketWatch) • UPS received approval from the Federal Aviation Administration (FAA) to begin setting up a fleet of drones to deliver health supplies and consumer packages throughout the United States. The FAA’s approval allows UPS to begin using drones to transport medical products, starting in Virginia. (WSJ) • Between 2020 and 2022, UPS plans to purchase 6,000 natural gas-powered vehicles. (Supply Chain Dive) • UPS hired a significant amount of temporary workers to deliver packages using their own personal vehicles to keep up with the flood of holiday deliveries. (Bloomberg)

• With Thanksgiving falling on the latest possible date (November 28), delivery companies only had 23 days between Thanksgiving and Hanukkah and only 26 days between Thanksgiving and Christmas to deliver packages. The holiday season brings in an estimated two billion packages that need delivered. (WSJ) • Walgreens and FedEx announced a partnership that will allow customers to print out return labels for FedEx shipments at Walgreens stores. (Commercial Appeal) • FedEx announced it was closing the pension plan to new U.S. hires starting in 2020, something UPS did back in 2016. FedEx will instead begin offering a 401(k) plan at the beginning of 2021. (WSJ) • FedEx is testing an autonomous delivery robot in Dubai. Located in the United Arab Emirates, Dubai became the first city outside of the United States to host the autonomous delivery device named Roxo. Roxo is designed to travel on sidewalks and along roadsides, which would allow it to help with last-mile deliveries. Roxo is equipped with technology allowing it to detect and avoid obstacles and plot a safe path, all while following road signs and safety rules. (Gulf News UAE) • Deutsche Post DHL Group expects to invest $2.2 billion on digital initiatives through 2025. (WSJ) • Purolator Inc., a Canadian parcel-delivery company, is spending over $1 billion (over $760 million US) in an attempt to keep up with e-commerce demand. This spending includes a new automated hub in Toronto, increasing the size of its delivery fleet and adding specialty service vans where consumers can pick up packages from the truck rather than having them delivered to their homes. (WSJ)

Q4 2019 • Volume 12 • Page 8

THE AMAZON EFFECT

THE

amazon EFFECT

Q4 2019 • Volume 12 • Page 9

THE AMAZON EFFECT

mazon.com Inc. (Amazon) had yet another busy quarter. It continued to focus more on its next-day shipping option for its Prime members, while trying to keep up with increased orders during the holiday season. Estimated Cyber Monday spending by U.S. consumers was $9.2 billion in 2019, up 16.5% from the $7.9 billion spent in 2018. Walmart, Target, and others continue trying to compete with e-commerce demand by increasing online pickup and delivery services.

Top Amazon News • Amazon plans to open a chain of grocery stores in the United States. Los Angeles, Chicago, and Philadelphia will most likely be the first cities they target. (WSJ) • Amazon is expanding its in-store pickup locations by partnering with GNC, Health Mart, and Stage Stores. This would expand the locations to 1,500 GNC, Health Mart, and Stage Stores stores by 2020. (USA Today) • Amazon is making its grocery delivery service free for all Prime members in the United States. The plan is to integrate all orders for groceries into one portal, which would have one and two hour delivery windows and include grocery delivery from Amazon Fresh and Whole Foods Market. (Reuters) • Rising shipping costs hurt Amazon, as profit decreased 26% in the third quarter, even with a 24% increase in revenue. Amazon spent $9.6 billion in shipping costs, partially due to rolling out one-day shipping for its Prime subscribers. (WSJ)

• Investment and financial firm Morgan Stanley expects Amazon to handle more U.S. package deliveries by 2022 than both UPS and FedEx. According to estimates, Amazon was shipping at a rate of 2.5 billion packages per year in 2019, compared to estimates of 4.7 billion and 3 billion for UPS and FedEx respectively. (CNBC) • In a further effort to keep up with next-day shipping, Amazon hired carrier Sun Country Airlines to operate 10 cargo jets. Amazon currently has almost 50 jets operating on its behalf, and expects to add another 20 to that number before 2021. (WSJ) • Amazon announced it was raising the fees it charges merchants to warehouse and ship their goods in the United States. The increase is an average of 3%, and is yet another way Amazon is coping with the higher costs for its next-day delivery. Amazon let merchants know that is has invested over $15 billion in tools, infrastructure, and programs like Fulfillment by Amazon in order to better support its sellers. (Reuters)

Keeping up with Amazon • Walmart's new delivery service, InHome Delivery, started in October. The service was made available in Kansas City, Pittsburgh, and Vero Beach, California. (Supply Chain Digital) • Target invested in extra payroll hours in order to boost employee hours and training during the short holiday season. Target CEO Brian Cornell said “This will be our single biggest investment in holiday payroll ever.” (Star Tribune)

• Best Buy Co. (Best Buy) announced that close to 99% of its customers are now able to get free next-day delivery on items from BestBuy.com. Some larger items such as TVs and refrigerators are not eligible. (Star Tribune) • Target stated that e-commerce sales profitability increased as the company began moving fulfillment from distribution centers to its stores. (WSJ) • Many grocery retailers, such as Walmart, Albertsons, Meijer, and others, have started to build “dark stores”. These “dark stores” are built to look like supermarkets, but instead of being open to customers, they are simply used in preparing online pickup and delivery orders. The idea for these stores stems from a rise in online grocery orders, which is currently 5% of US shoppers, but that number is expected to climb in the years to come. (CNN Business) • Walmart’s CEO believes the best chance Walmart has to compete with Amazon is to focus on supercenter stores. Walmart plans to build these supercenters by combining the physical and digital strategy already at work into one building. The idea is that by combining the two strategies, Walmart will be able to provide its products to consumers quickly, through increased delivery and shipping capacity along with online pickup orders. By using the stores it already has across the United States, Walmart is hoping it will be able to keep up with Amazon’s continued logistics efforts. (WSJ)

Q4 2019 • Volume 12 • Page 10

TRENDING TOPICS

ne of the major carry-overs from the third quarter to the fourth quarter was the United Auto Workers strike at General Motors Co. (GM), which lasted 40 days and caused considerable disruptions throughout the automakers industry. The ELD mandate went into full effect at the end of the quarter, while a trade agreement between the United States, Canada, and Mexico continues to move closer to ratification.

LABOR DISRUPTION • The United Auto Workers strike at GM, that started on September 16, ended after 40 days with workers approving the new four year agreement. The agreement included pay increases over those four years. Production of over 300,000 vehicles was lost due to idled factories over the course of the strike. GM stated that the 40 day strike cost the company almost $3 billion in lost earnings. (WSJ) • The United Auto Workers union and Ford Motor Co. reached a labor agreement in early November, shortly after the GM strike ended. (WSJ) • The United Auto Workers union and Fiat Chrysler Automobiles NV (Fiat Chrysler), reached a labor agreement in early December. Fiat Chrysler was the last of the three Detroit automakers to reach a labor agreement. (WSJ) • Several auto parts makers, including American Axle & Manufacturing Holdings Inc., AK Steel Holding Corp, Kaiser Aluminum Corp, and others, lowered their full year forecasts, and began to estimate the losses due to the United Auto Workers strike at GM. (Reuters)

TRADE NEGOTIATIONS • The U.S.-Mexico-Canada Agreement (USMCA) was agreed upon between the three countries and is now advancing between the three countries’ legislatures before it will be ratified. The

agreement contains provisions looking to create more manufacturing jobs by requiring cars and trucks, as an example, to have a greater proportion of content originating in North America in order to avoid duties. The United States House of Representatives passed the agreement in late December. The vote will now move onto the United States Senate. (WSJ) • Over 2,500 companies have filed for tariff exclusions on Chinese imports. (WSJ)

• The Panama Canal Authority will double the slots for tankers which will help increase U.S. natural gas exports to Asia. (Nikkei Asian Review) • Iran warned that commercial shipping routes in and around the Red Sea are unsafe, after announcing that three of its tankers had been attacked over a six month span. (WSJ)

OTHER NEWS

• The Electronic Logging Device (ELD) mandate went into full effect. As of December 16, 2019, any carriers that use an (Automatic Onboard Recording Device) AOBRD or non-ELD compliant logging software will be placed out of service (OOS). (CCJ)

• Atlanta-based companies, Delta Air Lines and Roadie have partnered together again. Roadie is a delivery service company, and has partnered with Delta since 2015 to deliver delayed baggage to passengers’ homes. Roadie and Delta are now partnering to launch a door-to-door pickup and delivery service for businesses to ship parcels with same-day delivery. (Atlanta Journal-Constitution)

• According to Arlington, Virginia based trade group, The American Transportation Research Institute (ATRI), operating costs for trucking companies rose 7.7% in 2018. (DC Velocity)

• Plus.ai, an autonomous truck company, completed a three-day cross-country transport of butter for Land O’Lakes using a self-driving truck. (The Mercury News)

• Trucking bankruptcies in the United States have more than doubled in 2019 compared to 2018. (CCJ)

• The Department of Transportation ordered FedEx to remove their delivery robots from New York City, claiming that having the robots roam the sidewalks of NYC is illegal. (New York Post)

TRUCKING

• Connecticut will be changing to highway tolls that only charge commercial trucks, joining Rhode Island. (The Connecticut Mirror)

OCEAN SHIPPING • Japanese ocean carrier Kawasaki Kisen Kaisha (K Line) has reached an agreement with Hiroshima University, the National Institute of Maritime, and others to research artificial intelligence on how and if it can be used to improve shipping operations. (Port Technology)

• According to PwC, the combined transactional value of mergers and acquisitions in the logistics and transportation sector was $27.6 billion in the third quarter. This is the highest it has been since the first quarter of 2018. • According to a survey conducted by Duke University’s Fuqua School of Business, 56% of Chief Financial Officers at companies throughout the United States say they are preparing for a recession. (WSJ)

• Shipping tonnage going through the Panama Canal rose 6.2% in the 2019 fiscal year. (Seatrade Maritime News)

Q4 2019 • Volume 12 • Page 12

LIFE AT JARRETT

CARING FOR OUR COMMUNITY: OUR FAVORITE OUTREACH

The gifts have been unwrapped, the cookies have been eaten and carols have been sung. The holidays have come and gone, and for us in Orrville, OH, a long winter still awaits. For so many of us, the holidays are a time of cheer and joyful company. We get to spend time with loved ones, eat delicious food, and stay warm by the fire. However, what we often forget, is that there are people, people in our own community, that don’t experience the holidays in the same way. In fact, the holidays can be a time of struggle, pain, and loneliness. No matter where, people experience this closer to home than you might think. That’s why, at Jarrett, we have been dedicated to supporting our community through various holiday initiatives.

One of our initiatives is in partnership with the Make-A-Wish Foundation through the Wayne County Children Services. Each year, Jarrett “adopts” two children who may not receive Christmas gifts that year. Wayne County Children Services sends us the children’s favorite colors, movies, toys, and specific Christmas list. We put up trees and hung a variety of ornaments containing either a gift or monetary amount to be used towards a gift as requested by the child. Once all the gifts are bought, wrapped, and placed under the Christmas trees, we deliver the gifts to Wayne County Children Services and the child will have them to unwrap on Christmas morning!

Civic responsibility is a major part of every quarter. In fact, it is so essential to who we are that it is one of our eight core values. At Jarrett, we define civic responsibility as “giving back to our communities by donating our time, talents, energy, and resources to worthwhile causes in our communities and society.” Although we are always striving to help our community, we really kick it up a notch during the holidays.

This initiative always has a significant amount of participation. It feels good to know the gift goes to a local child and that Kerry was a part of a team that really they will be getting exactly what they want, stirred everything up, challenging people because they are the ones who asked for it. to bring in more and still promising to beat them - and they did! We went from 230 Recently, another initiative that also has cans in 2017 to 4,950 cans in 2018. This high participation is the canned food drive. year, we added our few thousand cans to In partnership with the Salvation Army, Jar- the pile at the collection site, adding to a rett employees collect items for those in warehouse full of food for families.

Q4 2019 • Volume 12 • Page 13

need. Starting in 2018, we turned it into a competition! Each department competed against each other to see who could bring the highest percentage of cans in. The excitement of competition fused with the spirit of Christmas, and we raised 5x the amount of cans than in 2017. Kerry Ward, Lead IT Project Coordinator, recalls memories from last year, “Toward the end, the competition between departments was pretty heated, and we may have gone a little overboard. I can still picture various co-workers walking into the office with multiple cases of canned goods in their arms, and people running out of desk/floor space in their cubicle areas to store their cans and boxes. I think the employees at the Orrville Save-A-Lot were more than a little confused about how much of their inventory we were depleting.”

LIFE AT JARRETT Also in partnership with the Salvation Army, but new in 2019 and inspired by our 20th anniversary, is providing Thanksgiving meals to families through something we call “20 Meals for 20 Families.” Together employees picked up a reusable bag and filled it with all the Thanksgiving essentials on the grocery list. In addition to the dry goods, each family also received a frozen turkey, which were purchased through cash donations and contributions from the company. Allie Benter, Human Resources Coordinator, comments on why this initiative is her favorite: “First of all, we are able to provide an entire meal for families. I think that’s cool because the way it’s set up – they get to prepare it together. It’s for the families that just can’t swing it that time of year. For a lot of people, the act of putting food on the table is tied a lot to dignity and pride. So, it’s cool that families can be like ‘look what we made as a family.’”

STEPPING UP TO SERVE

as well. Although there is a need for monetary donations, donating other resources such as time can have just as great of an impact. “I think people assume that other people are going to step up and do it, but what if everyone thinks that?” says Dalenberg. “Then, it’s not going to get done. A lot of times it just takes the initiative to do it.”

season. However, providing opportunities for people to connect outside of the office builds stronger relationships. In our case, if we have stronger relationships with the people that we work with, then whoever we are moving freight, coordinating shipments or providing customer services for, will receive the benefits of those relationships. “The fact is that it creates a deeper BENEFITS FOR BUSINESS bond between employees internally and between the employees and the company,” It’s clear to see how participating in com- said Benter. “So, you could say it helps with munity engagement helps others. What is retention. You want your employees to feel not as obvious, but still evident through- apart of something bigger.” out these initiatives, is how it impacts the businesses that host them. At Jarrett, we In the end, it all comes down to the culsee how our holiday volunteer programs tural impact giving back has. Typically, it accelerate good spirits around the office. starts with people who have core values Teresa Durham, Administrative Assistant, aligned with the organization. “You can describes it like this, “Excitement is in the have a big corporation or a small mom and air. Where we work is a joyful atmosphere pop store and have people that have years every day, but when you see the gift tree of experience, but don’t really care about up, that’s when it elevates. It makes your one another,” Dalenberg commented. “They heart full and puts a pep in our step for the might be good for a while and make a good rest of the season.” These initiatives can impression, but at the end of the day, they go even further than increasing good spir- aren’t going to fulfill what the end user its around the office. When people serve needs.” the community, they continually strengthen their compassion and integrity thresholds. Our work communities need us to be as It’s not the reason to participate in commu- devoted to them as our home community outreach, but typically, clients want to nities. When you invest in something, it partner with companies that care about grows. So, if you want your community to people, because it means they will care grow, you have to invest in it. about them in return.

The world doesn't turn without generous people. Everyone is better off when we help one another. It doesn't matter if it’s neighbors, co-workers, family, friends, or community members - we all need each other. TJ Dalenberg, Senior Human Resources Coordinator, put it this way, “We all got to the point where we are today with help along the way. There are people in need no matter where you are. We all have something to give, so why not give it?” Giving can Especially during the holidays, people be more than just financial contributions already feel connected because of the

“We all got to the point where we are today with help along the way. There are people in need no matter where you are. We all have something to give, so why not give it?" TJ DALENBERG

LEAD HUMAN RESOURCES COORDINATOR Q4 2019 • Volume 12 • Page 14