And so we feel like that’s what we need to continue to focus on. But we’ll continue with our same approach like we always have, and it’s produced good things for us from a financial results standpoint, but an improvement in our balance sheet to support the ongoing investments that we believe we need to continue to make.
Christian Wetherbee: Okay. Thanks very much. Appreciate it.
Operator: The next question is from Scott Group with Wolfe Research. Please go ahead.
Scott Group: Hey. Thanks. Good morning. I want to ask about your perspective on share gains. So we’ve pulled forward, I guess, about 10 years of share gains from Yellow into a quarter. I guess do you think post Yellow, the pace of share gain for you guys in future years will be as good as what we’ve seen from you historically? And I guess I’m curious about this question in the context of this upcoming Yellow auction. I mean ultimately, I guess I want to know like how much – what is your strategy in terms of terminal growth? And how much do you want to add? Obviously, you were involved in the stalking-horse bid. What’s the strategy here with this upcoming auction?
Adam Satterfield: Well, we don’t want to get into any details on that, just given the fact that it’s ongoing, and we’re continuing to evaluate those options. But our long-term strategic plan didn’t depend on one competitor going out of business and us being able to obtain real estate from them. Our plan will continue to be – give superior service at a fair price. And service is what wins market share for us as well as having available capacity. Again, you look at the performance that we have with our volumes and market share in 2018, 2021, 10 points outperformance versus the industry. And that wasn’t just Yellow that we were comparing against. It is the industry, so we win share from others. And I believe we’ve been able to capture more market share for the – when you look at the growth in the industry than anyone else as well.
We’ve doubled our market share over the last 10 years that will require investment as we go forward. We expect that we’ll continue to spend 10% to 15% of our revenues each year on capital expenditures. That will continue to be within real estate and with equipment to support our anticipated growth, but we certainly believe that we can be the biggest market share winner over the next 10 years, just like we have over the past 10 because of the value offering that we have, just validated by Mastio this week. We’ve won this award 14 years in a row. We’re very proud. We had better performance than we’ve ever had in the survey, winning 25 of the 28 attributes that they measure. And our overall gap between us and the industry widened out further than it’s ever been.
So we feel good about where we are, but we’re also focused on making sure that our service continuously improves as we go forward, and that’s what will be key to our ability to win share.
Scott Group: So if I understand, Adam, you don’t think that like your long-term volume growth share gain is any different going forward post Yellow?
Adam Satterfield: Not at all. I don’t think the formula changes just because they’re not here and they’re 45,000, 50,000 shipments, whatever it was, is now dispersed. And that share is somewhat with us, somewhat with other carriers. I think there’s probably an element of it that went into the truckload world as well that probably will, at some point, be rebalanced within LTL once the truckload world tightens up. That’s yet to be seen, but trying to trace the number of shipments they had versus at least what the public carriers have disclosed, there’s a missing element there that I believe may have landed in the truckload world. But for us, the conversations that we have with customers, the long-term trends that we think will support growth in the LTL industry, be it continued improvement with e-commerce trends, that’s conducing to moving freight by LTL, whether we see increased manufacturing, at least in North America, a lot of those things will be more conducive to freight moving by LTL for which there’s no one in the industry that is delivering the same type of service and value that we can offer customers.
And so that’s what we’ll remain focused on. We’ve got to continue to focus on managing our cost inflation, and we focused particularly on that as well. So we can continue to have that 100 basis point to 150 basis point price versus cost spread keeping our prices relative to the industry. But certainly, when you think about the overall value equation, there’s no one that we believe can match what we can offer a shipper.
Scott Group: I appreciate the thought. Thank you, guys.
Operator: The next question is from Amit Mehrotra with Deutsche Bank. Please go ahead.
Amit Mehrotra: Thanks, operator. Hi, Marty. Hi, Adam. I had two questions, if that’s okay. So first question, you just did like a 70 and change OR in a broad freight environment that’s pretty weak, to say the least. Does that – that obviously informs the opportunity in a broadly better freight environment? I know you have the [indiscernible] OR target, but I was wondering if you can update us that because I assume you’re quite happy and impressed with the resiliency of the OR and what has been a weak market even including Yellow. And then I want to push back a little bit on the Mastio. Obviously, you guys on a headline basis, have been exceptional. And I know it’s really hard to get that number one national carrier position.
But the value proposition for OD historically has been, yes, we’re more expensive. But on a total cost basis, we’re still better because of our claims ratio and our on-time performance. And you guys always were in the middle or below that fair value band in the Mastio survey. Today, you’re kind of at the tippy top. And it’s hard to improve 99% service, 0.1% claims ratio, but your price is going up, which on the margin reduces the value that you provide to the market, which may explain some of the market share. I’m sure you disagree with this, but help me understand how you think about moving up towards the very top of the fair value band and what that means for your market share opportunity going forward?
Adam Satterfield: Well, there’s always going to be movement there. And what we’ve got to go by is not necessarily that data. That data is very important, and we pay a lot of attention to it, but it’s the conversations we have every day with customers. And the conversations when we go back to post pandemic when someone may have moved freight away from us because of price and trying to save a little bit, but if they were in jeopardy of losing a customer because the freight never got picked up or it never got delivered, then there’s a premium there for sure. If your product is not on the shelf available for sale, if you’ve got a production line that shut down, waiting on a part or a piece, I think shippers are looking more strategically at value.
That seems to be the outcome post pandemic world. And anytime we go through a slow environment like we’ve been for the last year, there can be some movement within some of those categories. But for us, trying to have a consistent approach to pricing each year, being able to sit across the table from a customer and have an open, honest conversation about being fair to us and being fair to them is what we strive for. And to be able to make the investments that we’re doing, like I said earlier, capacity may not have been at the top of mind over the last year because of the overall weakness in underlying demand. And then you had a couple of carriers earlier this year that were making some changes and doing some different things with respect to their pricing.
So those are things that you always have that are challenges that you manage through. But that environment changes pretty quickly. And keep reference in 2021, that was a period where competitors were increasing rates faster than us where they’re more up playing the market plan versus having a consistent approach. And all of a sudden, we look like a lot better value, if you will, when our service is way ahead on the spectrum. But now that someone has closed that pricing gap because they’ve come in and taken the 10%, 15% type of rate increase, that’s what drives market share to us, and it’s market share that stays sticky. We have had great continuity within our large accounts when we look at our top national accounts. We don’t have turnover in that business over the past 12 months.
