The Herald, Sharon, Pa.

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November 7, 2008

Con-way closing its Hermitage trucking operation

By Michael Roknick

HERMITAGE — A souring economy is taking its toll on a trucking company that is closing its Hermitage operation, with much of the business and 97 workers being moved to Lordstown, Ohio.

Con-way Freight said Friday it was closing the local terminal as part of its previously announced goal of closing 40 service centers across the nation to cut costs. The company said about 75 percent of affected workers will be given opportunities for work at other locations. Con-way expects the closures to save about $30 million to $40 million per year.

While the bulk of Con-way’s Hermitage operations will go to Lordstown, other parts of its services will be divvied up among centers in Aliquippa, Clearfield and Pittsburgh. The Hermitage center is expected to close by Nov. 16.

Company representatives met with Hermitage employees earlier this week and all were offered transfers to locations taking over the territory or consider transferring to other locations with a location package, said Belinda Donovan, a Con-way spokeswoman.

“We don’t know yet the exact number of Hermitage employees who will accept transfers, as it will depend on their personal decisions,’’ Ms. Donovan said. “Those who choose not to remain with the company will receive a separation package.’’

She added all Mercer County area customers will continue to receive freight service, primarily through the Lordstown center.

Con-way hauls less-than-truckload cargo, or shipments from more than one customer in each trailer, which are redistributed through the company’s network.

Based in Ann Arbor, Mich., Con-way has more than 300 service centers in the U.S., Canada, Mexico and Puerto Rico. Con-way is owned by Con-way Inc., a $4.7 billion freight company.

Con-way’s decision to consolidate centers is typical now of the trucking industry which is getting hammered like the rest of the economy.

“We’re a leading indicator of what the economy will be like in the upcoming three to six months,’’ said Jerry Nighswander, president of Chadderton Trucking Inc., Sharon. “Business is down. It’s really down in this area.’’

While fuel prices have plummeted, that savings hasn’t been enough to compensate the trucking industry for the loss of deliveries seen over the past several months.

“There’s a real shakeout going on now,’’ Nighswander said. “There’s a lot of trucking companies going out of business.’’

Despite the downturn, he said he’s been able to steer his company in the right direction.

“My father always told me — ‘Live within your means,’ ’’ Nighswander said.







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