Economic Indicators: Arthur Barrett, Barrett Distribution
Who are your customers?
We really have two different types of customers. Some customers use us as a single shipping point. Those companies typically are based in the Boston area and we handle all distribution and fulfillment requirements. The other type of customer uses us as a regional distribution center. Those are typically companies that utilize multiple distribution centers. We have some really huge companies that use our services, such as Best Buy, Rite Aid and Advanced Auto Parts. The smaller companies on our customer list may not be household names, but they’re often bigger customers to us because they depend us.
How do you expect to close out 2010 in terms of revenues?
If you look at our existing business, we’re probably up 15 percent. But we also just closed on an acquisition in Memphis, which will increase our revenue by 25 percent. It’s really not surprising that we’re up. When you have an uncertain economic climate, our solutions are pretty appealing.
What are your projections for 2011?
We grow pretty consistently between 10 and 20 percent per year and we grew 15 percent in 2010. We expect that baseline of business will grow 20 percent in 2011 without adding on the additional source of revenue in Memphis.
Are you planning to do anything different in 2011 to help drive revenues?
We’re pretty technology savvy and the big initiative for 2011 is to introduce our technology into the new operations in Memphis.
How did the recession impact your business?
In 2009 we took a hit. Our revenue was down about 15 percent. But we’ve recovered all of that and then some in 2010. We have a number of clients that sell high-end merchandise and they took it on the chin more severely than some of the staples. But once the stock market rebounded in 2010, people started spending again, and our high-end clients saw volume come back.
How are you feeling about 2011?
Very encouraged and enthused.
WBJ Web Partners
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