So that’s about all we’re probably going to share on that. But like Fritz said there’s cost inflation in the business. Just because the environment is softer doesn’t mean you’re going to be able to take a year off on wage inflation or healthcare costs, things like that. I would like to point out though, I mean, we’ve been looking at a lot of numbers over the last few days and the reason we’re going through this and maybe it plays to your second question and what we’re building for the long-term, we’re doing it because we see what that can be as we build it out. For example, we manage our business across 11 regions. So in the first-quarter a seasonally slower quarter with a lot of front-loading of expenses for our growth we had a handful of regions of the 11 that operated sub-80.
And when we look at those regions, we say what’s the common denominator, well, it’s great coverage. It’s our brand’s been there for a long-time and well-received by those customers. Our footprint’s competitive with our — some of our larger peers. And guess what? We get more share than our headline 6% industry share of revenue. So even in a quarter like this, we’ve got regions that are operating sub-80. So our goal is to build out more of the map to look like those regions and push this whole thing lower into the 70s. So just something to think about.
Frederick Holzgrefe: Yeah. I would just add, I mean, it’s kind of building on Doug’s comment. I mean the — one of the things that we’ve shown that we can do over the opening of the last 50 terminals is that we know how to add a terminal to a network and how to approach a market. And it — there’s a lot of value that we can create both for our customer and for Saia at the same time. So all of the terminals that we have in our pipeline this year are all ones that we think have got a decade of opportunity for us. So we’re pretty excited about them.
Operator: Our next question comes from Jason Seidl from TD Cowen. Please go ahead. Your line is open.
Jason Seidl: Thanks, operator. Doug, congratulations. You’re not much older than me, so I’m very jealous here talking about retirement. I got a long ways to go ahead of me. I wanted to circle back on a few things. One, obviously, there’s a lot of expansion going on here. You’re opening up some very key terminals. How should we think about looking out to 2025 in terms of the pace of expansion with more openings? And then, Doug, I wanted to circle back a little bit to the comments somebody asked, or the question’s been asked about the truckload marketplace. It seems like you don’t think the truckload marketplace has had a significant impact on the LTL space in either tonnage or pricing. I just want to make sure that I got your answer correct.
Douglas Col: That’s one guy’s opinion. I’m just saying it’s a different business than ours, but our shippers are sophisticated and they’ve got transportation management groups that are very technical. And if they’re figuring out a way to move more in — in volume truckload before it gets down to a shipment-type move, then that certainly could be going on. I just don’t think personally that there’s a lot of multi-stop truckload going on. I mean, it’s different equipment the — a truckload driver is not typically used to handling freight or have the tool to handle freight. So I find that personally hard to believe that that’s having a big impact. But the shipper themselves might be figuring out a way to use the — a favorable TL rate environment to take advantage of that because they’re facing cost inflation too.
So now that was — that’s what’s my opinion. But look, maybe I’m old, maybe I’m retiring because I don’t know what I’m talking about, but it seems to me that that makes sense.
Frederick Holzgrefe: Yes. And so on the first question about the multi-year or the expansion, so keep a couple of things in mind. If we were having this conversation a year-ago, pre-the Yellow auction, we would have been telling you about 10 terminals to 15 terminals a year out of our real estate pipeline because we’ve got — we’ve spent a lot of time developing sort of core competency around like organic growth, and particularly around how do we expand terminals. So we had a pipeline of facilities in there. And then we added in the 28 that came through the Yellow auction, which we’re excited about. We’re going to open a number of them this year. They will continue into next year. Next year, it could be 10, could be 15, somewhere in there, potential openings or not.
We’ll see how that goes. But the pipeline that we have is multi-year. And once we get through the end of this year, I don’t think we’re going to have the exact full on footprint that we think we ultimately need to have. I think that you’ll see us continue to replace and upsize facilities as our network matures and grows. So I think that that — that’s an important part of our multi-year story here. So I think that there’s opportunity for us into next year around growing facilities.
Jason Seidl: Perfect. That’s what I was looking forward. Doug, looking forward to seeing you in June and happy to be with you, sir.
Douglas Col: Thanks. See you then.
Operator: Our next question comes from Ken Hoexter from Bank of America. Please go ahead. Your line is open.
Ken Hoexter: Great. Thank you. Good morning. Doug, I’ll throw it in. Congrats on your retirement or what we all know is your move to really try to get back to the sell side, so good luck on that. But it’s [Multiple Speakers]
Douglas Col: [Multiple Speakers] Situation is too stiff there now these days, Ken. I would not do that.
Ken Hoexter: Fritz, can you talk about maybe customer engagement in the quarter was? I just want to understand what happened on the volume side. Was it due to, I don’t know, addition of large enterprise customer, Yellow business that kind of came back, and then you kind of re-hit on pricing and it fell away? I’m just trying to decipher the volume weakness here versus maybe what we see in some parts of the market.
Frederick Holzgrefe: So I would just kind of highlight that just the macro situation, right? So just kind of like the GDP report that came out like earlier this week that said Q1 GDP is 1.6%. I think anybody would say that’s kind of a mixed sort of macro-environment, maybe soft macro-environment. So I think you have that sort of overhang for the industry, and I think you’ve seen that in other reports that are out there from other modes, and I think competitors and such. So I think there’s that going on. And I think what you see with Saia specifically is you see the impact of our own initiatives around our geographic expansion. I think that if we had a bit of a stronger macro-environment, I think we would have seen a little bit more of a lift in Q1.
But I — actually despite the limits of the macro-environment, I thought our performance is actually really good, and that’s a reflection of kind of our idiosyncratic story and our ability to deliver service in that kind of environment. So I think what it does is that, I mean, I think the takeaway out of that is the point when the macro maybe it becomes — it firms up or more certain or people are more comfortable, whatever it might be, Saia is going to be in a position to really take advantage of that. And — because we’re doing a good job in the environment we’re in now. So I like how that sets up for us. I think the Q1 situation was as we’ve highlighted on the call, so the macro’s backdrop, I think it’s probably ongoing, maybe a little bit of churn around that.
We’re working on making sure we got the appropriate freight in our network. Maybe we’ve shed a little bit there on the margins. But fundamentally, I think what we — what we posted was still really good.
Ken Hoexter: So just to clarify, it’s not like what you took on was Yellow Freight or Amazon Freight or something like that and then you took that on because it was in the market against a bad macro and you had to go reprice it, that’s not — [Multiple Speakers]
Frederick Holzgrefe: No, no, no, no. I think what you had is we got — we had Yellow Freight that came our way because there — we had a lot of share accounts. And then in Q4, we were talking about pulling contracts forward. So you saw a little bit of that churn. We got mix of business changes a little bit Q4 to Q1. And we’re not giving up on that either. We’re continuing to make — find that freight that makes the most sense for us and get the pricing right. So I think some of that’s just kind of underlying business and what we deal with on a daily basis.
Ken Hoexter: All right. And then for my follow-up, just your thoughts on claims ratio. I don’t think you touched that in the release, and then has tightening flattened out now, are we seeing that settle in at this point or is it still volatile given some of those repricings and revisits of contract?
Frederick Holzgrefe: I think it’s just kind of ongoing — specifically around your contractual question. I mean, I think we’re in a unique spot because we’re growing. We’re taking on some new customers or we’re getting different mix of business as we go. And I think what you find with that is that you — we’ve got to continue need to reprice and get the book of business and the margins right and make sure that we’re getting paid at sort of market rates. And that’s kind of key. So you’ll continue to see that from us going forward in all likelihood. And any other quote on claims?
Douglas Col: Yes, I mean, the claims ratio has been hanging in there in the 6.5%, 6.6% range for a while, very consistent service, even with all the new team members and things like that. So, I think we’re hearing good things about our service and it’s — we look forward to rolling it out in more markets.
Ken Hoexter: Appreciate the thoughts. [Technical Difficulty] Thanks guys.
Operator: And our last question today will come from [Daphne] (ph) Moore from Jefferies. Please go ahead. Your line is open.
Stephanie Moore: Hi, good morning. Stephanie Moore here from Jefferies. I —
Douglas Col: I thought you had a new assist — I thought you had a new assistant or something [Multiple Speakers]
Stephanie Moore: No, it’s Stephanie. Sorry about that. I guess, it’s been a busy week. But real quick here. Look, I think a very short-term macro question has been asked. So I’ll ask this a little bit differently. If you step up — if you just take a step back, how would you compare this year 2024 in your expansion plans? How does this compare to maybe another year in the last, call it, seven that you’ve embarked on this similar pretty aggressive capacity expansion plan? So whether it’s by terminals or door count, however you want to look at it, but I’d love to get your perspective is there a similar year that you can kind of point us to where you’re making these investments and ultimately see this loaded springboard for when that — the market eventually turns? I’d love to just hear your perspective. Thanks.
