You’ve come to expect best-in-class services from Old Dominion over the years, and we’re here to exceed those expectations as your trusted LTL carrier.
To support this means executing OD’s long-term strategic plan – providing superior service at a fair price while also ensuring that we have sufficient capacity to support anticipated growth. Historically, we’ve spent 10-15 percent of our revenue on areas such as service center growth, investing in our fleet, and improving our information technology systems. Couple that with robust investments in our OD family of employees, we believe we’re strategically positioned to continue providing the premium service you have come to expect from OD.
Last year’s capital expenditures totaled $775 million, and we’re anticipating an additional $800 million investment for 2023 in three key areas: real estate, equipment, and technology. Here is a breakdown:
OD plans to invest $300 million in land, new or expanded service centers, and facility improvements. With 255 service centers across the continental U.S., we’re always looking for ways to improve our facilities to better process your shipments. More physical space means we can handle your increase in business, improve our transit times, and expand our footprint across key markets. In 2022, we opened four new centers and expanded five additional service centers. We anticipate maintaining an active year of real estate activity again in 2023.
Since 2013, we’ve invested $2 billion in expanding our service center network, adding 37 new facilities, and increasing our door count by approximately 50 percent.
Maintaining our fleet of more than 56,000 tractors and trailers means working with our suppliers to continuously add new tractors and trailers. Operating a well-maintained fleet allows us to operate in the most efficient way possible by keeping maintenance time low, transit times competitive, maximizing fuel efficiency, and improving the service metrics that are most important to you, like our low claims ratio. We know OD is often seen as an extension of your business and that it’s important that your shipment arrives to your customer in well-maintained equipment.
We’re always finding ways to improve operational efficiency. Sometimes that involves changing the way processes are done and using technology to drive process improvement. The investment in IT will make it easier for you to do business with OD and improve your digital experience.
Investing for the future is important in how we plan to stay ahead of your shipping needs. We believe these unmatched investments in our network and equipment are just one more way we’re here to help keep your promises.