Elk Grove owner started business with one truck 35 years ago
Luis Toledo started working for a moving company when he was 18 years old. Shortly after that, nearly 35 years ago, he started his own business with one truck.
He now owns two moving companies and has between 75 and 100 employees that handle roughly 2,500 moves a year.
He moved from Puerto Rico to Evanston in 1955 at a time when there were only a handful of Latino families living in the city.
After facing many industry challenges, Toledo has grown to become the largest Latino-owned moving company in the Midwest.
He was one of 15 local executives recognized for their excellence in leadership and service recently at the annual C-Suite Awards hosted by the Daily Herald Business Ledger.
We asked the president and CEO of Mid-West Moving & Storage a few questions.
Q: Tell us about the business.
A: Mid-West Moving & Storage is a full service professional moving company. We offer a variety of moving services as well as specialty services to support the move process with customer service excellence in mind at every step of the way. With 35 years in business we have implemented and perfected processes to make sure the moving experience is the best it can be. Chicago Office Movers focus solely on commercial office and industrial union moves.
Q: How did the business start?
A: I was working for a moving company starting at about 18 years old in 1977. I really enjoyed the industry and the physical and organizational challenges it brought. I worked there until starting my own moving company in 1983. When I left to start my own company, my past employer (boss) supported me and even mentored me through the years. I started with one truck, a name and a logo.
Q: Tell us about your personal background.
A: My parents moved from Puerto Rico to Evanston in 1955. I am the third born (in 1959). We were the only Puerto Rican family in Evanston at the time out of maybe 5 Latino families total. We had some challenges. I went to a Catholic school (St. Nicholas) and we were the only Latino family in the school at the time. Now it is almost 100 percent Latino. I went to Evanston High School and Wilbur Wright Junior College for a short time.
Q: With the truck driver shortage, are you having a problem finding drivers? Any solutions?
A: Yes, we are definitely having challenges finding qualified drivers. One solution I think would help with this would be to lower the commercial driving age from 21 down to 18.
I also feel very strongly about training from within the organization. We do this in our organization very regularly and promote this as an advantage of working with us. Career advancement with our employees is very important. We try to promote and train our movers into a driving position when possible. This is also a successful way to keep good employees.
I have also witnessed that freight drivers only need to know how to drive and back up. Our drivers need to have additional skills on many levels. They need to be trained in moving, padding the shipment properly, customer care, physical labor and more. It takes more skills than just driving skills. We have seen that freight drivers are tapping into woman in their workforce but for us that is challenging with physical labor needs.
Q: How many moves do you do a year?
A: More than 2,500 moves a year and growing.
Q: How has the industry changed over the years?
A: One change is that national accounts used to be a huge source of business. We would form relationships with the HR department and the internal relocation staff. Now, companies outsource the entire thing to a third party relocation company. These companies, predominantly run by realtors, tap into the profits cutting our margins and making it hard to work like we used to. We of course still deal with the third parties but they have definitely changed the way we do business.
Another change occurred in 1980 when deregulation hit. That's when a lot of different movers came into the industry play. This brought the pricing way down. Until they were deregulated in 1980, the interstate moving companies had no price competition.
Q: What other changes have you seen?
A: The internet. Over time with the internet, some companies, referred to as rogue movers, have found ways to look professional online, steal business from real moving companies and then fraud their consumers. We have fallen prey to this many time. In fact, a company in 2016-2017 as well as some residual impact in 2018, has been using our name and our social sites to show their "good reviews," which are really ours, then they book the job and ultimately steal money, items and dignity from their customers.
And last but not least, workmen's comp insurance premiums have gone through the roof, which affect our business.
Q: Who is your target market?
A: Commercial office and industrial; government agencies, local, state, county and federal government as well as residential.
Q: Tell us about the growth of the company.
A: Our growth has been a gradual and steady over the years. We have grown organically with no acquisitions, no mergers and no investors. We continue to learn, change, adapt and organically grow the organization year over year. Our focus for the last two years has been to put the right people in the right places to optimize their talent as well as our organizational structure. We have also put a focus on have the right software in place to make everyone's job more efficient and effective. There are always ebbs and flows in any business and I never sit still and let things happen. I am always looking for ways to keep things moving forward in a pro-active way.
Q: What were your first jobs?
A: When I was 12 years old, I was a paperboy. I made $15 a week and my parents took half of it to help out with rent and food. At age 14, I got a job at True Value and worked 20 hours a week for 1.65 an hour while going to school. I paid rent to my parents and bought my own clothes and personal items. At 18 I got my first moving job for $4.50 an hour. I moved out shortly after and rented a room and took care of myself.
Q: If you were not doing this, what would you be doing?
A: I would probably have opened a gym or a personal training business. I have always really enjoyed physical fitness and I wanted to be a trainer. I used to compete for body building when I first opened my business until I got too busy to continue.
Q: Two words that describe you.
A: Energetic and resilient.
Q: What is one fact about you or your company most may not know.
A: We are the largest Latino-owned moving company in the Midwest.
Mid-West Moving and Storage donates a ton of stuff to multiple organizations. This is not always talked about or advertised. Goodwill is an important, a mutually beneficial, and a standard of our business model. We donate unwanted furniture, office supplies, food, large offices full of decommissioned items and more. Some organizations that have benefitted are Little City, city of Chicago, Chicago Public Schools.
Q: What is one tip you would give to a rookie CEO?
A: Open your organization's mail. You learn so much about your business by opening your own mail.
Q: What is one question I forgot to ask?
A: How is your family involved in your family run business? My family is involved but not dependent on the company. One of my daughters works in the office during summers and college breaks, my other daughter consults for the sales and marketing department and my son works as a mover. I wanted them all involved but I also wanted them to do other things and explore other interests to make them well rounded as well as independent of the organization.
Mid-West Moving & Storage and Chicago Office Movers
<b>1255 and 1717 Tonne Road, Elk Grove Village, IL 60007</b>Number of employees: 75-100
Founder: Luis Toledo
Annual sales: Between $8 and $10 million
Year business started: 1983 (Mid-West) 2016 (Chicago Office)
Web address: <a href="http://www.midwestmoving.com">midwestmoving.com</a> and <a href="http://www.chicagoofficemovers.com">chicagoofficemovers.com</a>