The company's Vegas service latest addition to logistics industry
The Reno terminal of Auburn, Wash.-based Oak Harbor Freight Lines Inc. is now providing nonstop ground service to Las Vegas and increasing its visibility in Northern Nevada's shipping market.
Location is the one of the primary factors explaining the increase in the freight industry in Northern Nevada, said Dale Rogers, a professor of supply chain management and director of the Center for Logistics Management at the University of Nevada, Reno.
"We're positioned in a great spot (in Northern Nevada)," Rogers said. "The laws of Nevada are beneficial to people who want to locate here."
And the logistics industry, which includes air, boat, train, ground and pipelines, is growing.
"The logistics industry has become the second-largest industry in the state behind the gaming industry," Rogers said.
As of July 2004, U.S. companies spent $936 billion shipping and managing goods nationally and internationally, according to the state of logistics report produced by the Council of Supply Chain Management Professionals, based in Oak Brook, Ill.
Part of the large budget also includes planning and positioning. Positioning increases the possibility for expansion.
Oak Harbor had provided direct service to cities such as Portland and Salt Lake City from Reno, where it has been located since 1991, but did not have any service inside of Nevada until April.
Many businesses want to have their business distributed to certain geographical locations, and having a terminal in Reno is a necessity for major distributors, said Ron Kieswether, vice-president of operations for the privately-owned Oak Harbor.
"If we were to have a presence in any of the other five states (where we operate) and not in Reno we wouldn't be as effective." Oak Harbor also has operations in Calif., Oregon, Wash. and Idaho.
The addition of service from Las Vegas to Reno will increase business in this growing industry for Northern Nevada, said Oak Harbor co-president David Vander Pol.
"We hope to grow business in Reno from Las Vegas to Reno and also California," Vander Pol said. "We see that as our biggest growth opportunity.
Vander Pol said the company can compete against bigger corporations.
"UPS will bring a lot of muscle and money," Vander Pol said. "But as some companies get larger, they lose flexibility."
As Northern Nevada continues to grow, so will the freight industry. The growth will depend largely on the economy, especially interest rates, Vander Pol said.
"It will continue to grow, but federally regulated interest rates have a huge impact on all businesses, including freight," Vander Pol said.
Despite economic factors, Reno's continual growth keeps some hopeful.
"I'm hoping it will grow," Rogers said, noting that agencies such as the Economic Development Authority of Western Nevada are bringing many new companies here. "There's room for growth."