Scott City trucking company expands logistics operations

While trucking companies throughout the country are struggling financially, one local trucking operation is experiencing growth.

Scott City-based Buchheit Trucking has expanded its warehousing and logistics operation with the recent purchase of the former Rowe Manufacturing property in Morehouse, Mo. The property consists of industrial buildings totaling nearly 160,000 square feet on 39 acres in the  community, according to Lorimont Ltd. commercial broker Tom Kelsey, who handled the deal.

Buchheit president Ron Gjerstad said the company had an immediate need for additional industrial storage space in addition to its 260,000-square-foot warehouse in Scott City. The logistics services offered at the new warehouse will service customers from companies across the country. Services include handling and storage, inventory control, shipping and labeling.

While no price was disclosed in the Morehouse sale, the Lorimont website showed an asking price of $599,900.

The Rowe building was used for drying, storing and manufacturing wood products for furniture. Rowe closed its Missouri facilities in 2007, both in Morehouse and Poplar Bluff, Mo.

Started in 1934, Buchheit Trucking operates 80 company and independently owned trucks.

Gjerstad said the company's focus in 2008 has been to turn a profit when faced with high fuel prices. While the price of a gallon of diesel fuel was $2.32 on Tuesday, according to the Energy Information Administration, it cost about $4.75 at its peak in early July.

As he looks to the 2009, Gjerstad said the first quarter is worrisome.

"However, we'll button down and keep control of expenses," he said. "We'll take care of our customers to get through the first quarter and beyond.

"Those who come out on the other side of this will come out much stronger in the end," Gjerstad said. "Fuel being high and business being down has been a double whammy. But we hope it turns around in the spring."

Gjerstad said his company has not been hit with layoffs like other trucking operations. Elfrink Transportation, a Cape Girardeau-based regional truckload company that was founded in 1994, went out of business Dec. 17 because of financial troubles. The American Trucking Association reported tonnage volumes reported by fleets declined 1.8 percent last month compared to November 2007, the second straight yearly decrease.

Instead of cutting back on its work force, Gjerstad has chosen not to fill some positions at Buchheit through attrition.

"Many things we buy in this country is handled by truck," Gjerstad said. "So trucks will be here. The strong will get through this downturn and be here to provide service into the future."

bblackwell@semissourian.com

388-3628

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