Hub Group was founded in 1971 and grew rapidly, finding itself on a list of the 500 fastest-growing companies regularly since the mid-1990s. Sign up today to receive our FREE, weekly email newsletter! By the early 1990s, Fortune 500 accounts made up about 35 percent of Hub's total business, and it was one of the fastest-growing segments of the company. A Hoovers subscription is your VIP access to key information. Up from the mere handful of employees Hub started with, by 1990 it had 350 employees, working out of 35 locations. As U.S. automakers moved parts across borders with increasing regularity, Hub felt it was in a good position to arrange intermodal transport for them. Freight transportation services provider Hub Group announced late last week it entered into a definitive agreement to sell Mode Transportation, a subsidiary company, to an affiliate of global private investment firm, York Capital Management, for roughly $238.5 million. This was a huge boon to Hub, because Sears made more than 70,000 intermodal shipments a year. Hub Group (NASDAQ: HUBG) is a transportation management company that provides multi-modal solutions throughout North America, including intermodal, truck brokerage and logistics services. Hub Group's wholly-owned subsidiary, Hub Group Trucking (formerly Comtrak Logistics), is one of the largest intermodal drayage carriers in the United States, with nearly 2,650 drivers and 25 terminals servicing both the domestic and international markets. Key coverage. After a year in business, the Highway Services division brought in over $17 million. Its functions through a network of independent business owners that sell and operate the business throughout North America. $67k. Hooking the Fortune 500 accounts spurred Hub to rapid growth. HGDS offered door-to-door distribution of shipments for its clients. Hub Group’s 4Q Profit Slumped Hub specializes in alleviating shippers' difficulties in coordinating different transport services. "Mode has an excellent management team, with a strong, solid agent base and loyal customers,” said David Yeager, Hub Group Chairman and Chief Executive Officer, in a statement. By the mid-1990s, this division had grown to a $100 million business, serving major corporations such as Borden, Nabisco, Clorox, and Lever Brothers. Hub Group Expands Its Supply Chain Service Offering With the Acquisition of Last Mile Logistics Provider NonstopDelivery, LLC Hub Group, Inc. acquires non-asset based Last Mile logistics provider NonstopDelivery, LLC (“NSD”); enhances end-to-end solutions for its customers in one of the fastest growing sectors of the transportation market. Principal Competitors: Landstar System; Exel Logistics Ltd. The auto industry had changed the way it managed its parts and inventory during the 1980s, responding to competition from Japanese automakers. Hub Group also opened a subsidiary in Canada in 1990, and moved into the southern California market more aggressively by opening an office in San Diego. Hub Group operates a subsidiary company, Hub Group Distribution Services, that offers clients an array of logistics services, coordinating transportation, warehousing, inventory management, set-up and assembly of products and displays, and other services, to businesses nationwide. Yeager's Hub City Terminal opened in April 1971, operating out of a cramped office in a side street in Hinsdale. Hub Group was founded in 1971 by Phillip Yeager. This gave both Hub and the railroads much more efficiency in moving freight. Local Hub offices were spread across the country, radiating out from the company's suburban Chicago center. And it added that proceeds from this sale will go towards acquisitions of businesses in both new and existing service lines, with Hub saying it is focused on acquiring high quality businesses that will deepen its relationships with its customers, strengthen its platform for growth and create shareholder value. By 1992, the company had become by its own account the nation's largest intermodal shipping agent. Hub also owns and operates the subsidiary Hub Group Trucking Inc., formerly Comtrak, which handles approximately 70 percent of Hub’s drayage needs. “We are excited about joining forces with York and the support they will provide as we execute our growth plan,” he said. Hub Group operates a subsidiary company, Hub Group Distribution Services, that offers clients an array of logistics services, coordinating transportation, warehousing, inventory management, set-up and assembly of products and displays, and other services, to businesses nationwide. The company owns two subsidiaries: Mode Transportation ; and Hub Group Trucking, which provides intermodal freight transport and drayage services. Hub Group Trucking, Inc. is located in Oak Brook, IL, United States and is part of the Specialty Trucking Industry. Its revenue from its logistics business was up almost 90 percent, and revenue from truck brokerage also increased by close to 20 percent. But Yeager lost his job when Penn Central went bankrupt, and in 1971 he and his family moved to suburban Chicago. The company continued to be privately held by Yeager and his family. Hub seemed to be moving in the direction it had set itself when it went public. United Parcel Service (stylized as ups) is an American multinational package delivery and supply chain management company.. As the U.S. auto industry moved toward so-called just-in-time inventory management, it turned to third parties for logistics expertise. Of that, $8 million was spent with Comtrak (which earned $85 million in drayage in 2005). From activating comprehensive technology for added visibility and efficiency, to leveraging strong third-party relationships and the industry’s second-largest private intermodal fleet, we provide access to the right support and the right end-to-end supply chain solutions, at the right time. The sales figure, Hub said, is equivalent to 10x Mode’s adjusted EBITDA for the 12 months ended June 30, 2018. Its another subsidiary, UNYSON Logistics, offers a range of railcar and pharmaceutical transportation services. The joint venture was christened HLX. Hub Group is a supply chain management company that offers multi-modal freight services including arranging transportation by truck, rail, and more recently, by ship. Founder Philip Yeager and his son David are instrumental in managing the publicly owned company, and the Yeager family still controls a majority of Hub Group's stock. Before Hub instituted this system, less than 25 percent of its carriers were reloaded. Yeager and his wife ran the business with only a few employees. 2) Working more closely with Comtrak will improve the overall quality of Hub’s intermodal product. However, the company began to become a national presence in the mid-1980s, when Hub started to actively solicit business from Fortune 500 companies. Similar Companies. New Operations in the Late 1980s and Early 1990s. Productive workers could make a lot of money on top of the base salary. By using its computer network to keep track of them, Hub Group was able to reduce the time the rail containers stood empty between loads. Hub Group continued to boom in both sales and profits. Learn to implement digital manufacturing into your supply chain, the benefits of digital manufacturing, and how to minimize the impact of economic and political changes. Mode President Jim Damman said that Mode is an exceptional agent-based transportation solutions provider differentiated by customer-specific expertise, offerings across all modes of freight transportation and leading edge technology and analytics. Hub also brokers highway transportation through a wide variety of carriers. Evan Armstrong, president of supply chain consultancy Armstrong & Associates, call the selling off of Mode a "good move" by Hub. Freight Brokerage services are provided by the Freight Hub Group’s wholly-owned subsidiary, Assetco Freight Brokers DBA Freight Hub Group, a licensed brokerage firm, DOT # 2887871 MC #969677, Full Truck Load Nationwide are managed by wholly-owned subsidiary FTL Hub Inc. Hub Group creates innovative, end-to-end supply chain solutions tailored to your unique business needs. View All with Free Trial. Because of Hub's state-of-the-art data management capabilities, it was able to offer sophisticated services to some of the nation's biggest companies. Yeager's strategy for his staff was to offer a low salary but high commission. Sales for fiscal 1999 were $1.3 billion, an increase of almost 15 percent over the previous year. Hub Group installed an electronic data interchange, or EDI, computer system that allowed it to link in real time with the computer systems of all the major railroads. The two-way system meant that a trailer leaving Chicago for Los Angeles, for example, sent enough advance notification that a new load could be waiting for it when it unloaded its cargo on the West Coast. The Hub Group consists of four main business units: Hub Intermodal, which provides access to an extensive fleet of over 24,000 intermodal containers on major North American railroads.