U.S. Economy, Fuel Costs and Healthcare Top List of Executive Concerns Finds Saia Survey of Small to Medium Businesses

Businesses Are Increasing Their Supply Chain Budgets

JOHNS CREEK, GA--(Marketwire - Jun 28, 2011) - Saia, Inc. (NASDAQ: SAIA) today announced the findings of the 2011National Trends in Smallto Medium-sized Businesses, a nationwide survey of U.S. executives on their motivations and beliefs about economic conditions, budgets and supply chains. The vast majority (65 percent) of U.S. executives say the economy is their number one concern, followed by fuel costs (23 percent) and health insurance (15 percent).

"Small to medium-sized businesses are the backbone of our economy," said Rick O'Dell, president and CEO of Saia. "Normally, you would expect business leaders to be more upbeat coming out of a downturn like we recently experienced. I am encouraged by several of the survey's findings including those regarding staffing and supply chain expenditures."

For more information about Saia or the 2011 National Trends in Small to Medium-sized Businesses study report, please visit http://www.saia.com/v2/studylink.aspx.

Budgets in 2011

More than one-third (39 percent) of those surveyed say capital expenditures will be the same in 2011 as in 2010. Capital expenditures for 2011 will be higher according to one-third (33 percent) of business executives. More than one-quarter (28 percent) say capital expenditures will be less in 2011 than in 2010.


Supporting their concern of uncertainty, nearly three-quarters (72 percent) of executives say they plan on maintaining the same number of employees for the next 12 months as they have today. Seventeen percent of those surveyed say their company plans to increase the number of employees in the next 12 months, while 11 percent say they plan to reduce their current staffing levels.

Business Interruption

"About one in ten small to midsize businesses are changing their inventory practices as a direct result of the catastrophes in Japan earlier this year," said O'Dell. "Nearly two-thirds of those surveyed say they do not have a contingency plan in place to handle inventory issues during a business interruption or emergency event. With an increased number of natural disasters, both abroad and here in the U.S. in recent months, businesses need to consider developing contingency plans."

In the event of a major business interruption or emergency event, respondents say their company:

  • Has alternative suppliers for key materials and parts (38 percent)
  • Maintains safety stock (36 percent)
  • Has a business continuity plan already in place (25 percent)
  • Plans for contingent shipping arrangements (20 percent)
  • Accelerates shipments as needed (21 percent)
  • Carries business interruption insurance (17 percent)
  • Implements a crisis communications plan with key vendors (14 percent)
  • Monitors product transportation paths (13 percent)
  • Taps into onsite emergency preparedness plans and onsite tools (8 percent)

Maintaining the Supply Chain

"Even with the concern many executives are feeling, not all companies are cutting costs at every corner," said O'Dell. "In fact, when it comes to their supply chain, many companies are increasing their budgets this year. Nearly half of those surveyed say they are increasing their less-than-truckload budget."

With regard to shipping, executives say their 2011 budgets are increasing when it comes to:

  • Less-than-truckload (46 percent)
  • Truckload (20 percent)
  • Expedited Shipping (19 percent)
  • Guaranteed Shipping (18 percent)
  • Distribution (15 percent)
  • International (13 percent)
  • 3PL (2 percent)

When it comes to carrier measurements, executives were asked which measurement they valued most. On-time delivery leads the way hands down (65 percent) followed by pick-up performance (11 percent) and claims-free service (9 percent).

Nearly half of all executives (41 percent) say they are unfamiliar with the federal government's Comprehensive Safety Analysis (CSA) program. Of those expressing familiarity, more than half (54 percent) are concerned the program will impact their supply chain.

Going Green
Nearly half of those surveyed (49 percent) say their companies offer a recycling program for multiple items, whether it is paper products, plastic, batteries, glass or aluminum. Thirty-one percent say their company employs faxing via e-mail to eliminate paper, and 23 percent say their company offers a recycling program, but only for paper products. Other eco-friendly practices include:

  • Ceramic or other plate/utensils in the kitchen or break room, eliminating the need for plastic (13 percent)
  • Telecommuting (11 percent)
  • Composting (7 percent)
  • Community programs focused on green initiatives (4 percent)
  • Cafeteria sourcing local foods when available (3 percent)

While 50 percent of business executives say "how green" a vendor is can play a role in their decision to work with that vendor, nearly one-third (30 percent) say their company is not green at all.

Young Grads Take Note
Thirty-nine percent of U.S. executives recommend recent graduates watch the movie Wall Street in order to prepare for the corporate world, followed by Pursuit of Happyness and Jerry McGuire (11 percent), Nine to Five (10 percent), Office Space (9 percent) and Working Girl (7 percent).

About Saia, Inc.
Saia, Inc. (NASDAQ: SAIA) is a less-than-truckload provider of regional, interregional and guaranteed services covering 34 states. Saia is home to the industry-leading Xtreme Guarantee product, which guarantees total customer satisfaction from pick-up through invoicing. Saia offers complete North American coverage through partner agreements. With headquarters in Johns Creek, Ga., and a network of 148 terminals, the carrier employs 8,000 people.

About the Survey
Conducted in May, the 2011 Nationwide Survey of Small to Medium Business Executives, sponsored by Saia, is based on an online, nationwide survey of U.S. executives at small to medium-size businesses. Of the 385 participants, 27 percent live in the South, 26 percent in the West, 25 percent in the Midwest and 21 percent in the Northeast. The survey's margin of error is plus or minus 6 percent. To learn more, visit www.saia.com or call 404-840-3404.

Editor's Note
Camera-ready charts and graphs in *.JPG format are available by contacting Jeannie S. Jump, Saia Corporate Communications Coordinator, at 770-232-4069 or via e-mail at jjump@saia.com.

Contact Information:

For more information, contact:
Jeannie S. Jump
Saia Corporate Communications Coordinator
Phone: 770-232-4069
E-mail jjump@saia.com