Announcer:
From the New York Stock Exchange at the Corner of Wall and Broad Streets in New York City, welcome Inside the ICE House. Our podcast from Intercontinental Exchange is your go-to for the latest on markets, leadership, vision, and business. For over 230 years, the NYSE has been the beating heart of global growth. Each week we bring you inspiring stories of innovators, job creators, and the movers and shakers of capitalism here at the NYSE and ICEs exchanges around the world. Now, let's go Inside the ICE House. Let's your host, Lance Glinn.
Lance Glinn:
Reaching 90 years in business isn't just a celebration. It's a bold testament to resilience, innovation, and enduring impact. It signals that a company didn't merely weather change, it let it staying ahead of shifting markets, rising technologies, and evolving customer needs. A nine-decade legacy speaks to unwavering values, deep-rooted trust, and a team relentlessly committed to excellence.
It's a rare milestone that honors a rich history while setting the stage for an even bolder future. At its heart, it's a tribute to the people and purpose that have propelled the company forward and will continue to do so for generations to come. Schneider National, that's NYSE ticker symbol SNDR, isn't just celebrating 90 years, it's showcasing a legacy of resilience, innovation, and leadership.
Listeners Inside the ICE House may recall CEO Mark Rourke's insights from episode 351 back in March of 2023. Well, now, two years later, he returns to the New York Stock Exchange Library as Schneider marks this milestone anniversary. Mark, thanks so much for joining us Inside the ICE House.
Mark Rourke:
Yeah, it's a pleasure to be here.
Lance Glinn:
So 2025 marks a celebratory year for Schneider, 90 years since Al Schneider founded the company and bought his first truck. The anniversary was on March 1st. Events to commemorate the occasion planned for June 12th. But when you think about 90 years, nine decades of reliable operations working for customers, just what initially comes to mind?
Mark Rourke:
Well, first of all, it's such a meaningful milestone to be around nine decades, and I think it's just a testament to our associates, over 19,000 strong today. We started with the one driver and one truck with Al. And now to have over 19,000 folks who really wake up every day to serve customers and customers choosing us is really what this business is all about.
And so to adapt and change through, we've been through recessions, we've been through a depression, we've been through global events and continue to find ways to adapt, I think it's the resiliency of the organization. I think that's really what it takes to be around 90 years is the ability to be resilient and change with the times.
Lance Glinn:
And so I mentioned that June 12th date, and I bring it up because I know it'll be a celebration, obviously, to commemorate the 90 years. The anniversary really does, as you say, highlight the 19,000 associates because you can't do what you do without them and what they do on a daily basis. So how are you honoring them, ensuring that they get recognized for the efforts in helping Schneider reach such a momentous point?
Mark Rourke:
Yeah, I think that's why we're really taking the whole year to celebrate in different ways with different audiences, just so we can touch as many people as we can. That June 12th day that you mentioned, we're going to have our Haul of Fame drivers, haul, H-A-U-L, come in and be recognized on their milestones. It's just a great testament.
We have over 6,000 drivers in our history that have driven over 1 million safe miles without any type of accident. And then we have many more at the three and four and now even a couple now at the 5 million safe miles. So that's really what it's all about is taking the opportunity to just step back and recognize all those contributions along the path.
Lance Glinn:
1 million, 5 million. As I was talking to your team before our conversation, I was trying to do in my head, if we average humans who don't work at Schneider, don't work in trucking, come close to a million miles in our lifetime. Now, obviously it depends if you drive to work, if you don't drive to work. I don't. I take the train. But a million miles, 5 million miles, really a crazy milestone to do it so effectively, to do it so safely. Really a testament to, as you said, those haul, H-A-U-L, Haul of Fame drivers, really a real credit to them and I think a real shining light in Schneider.
Mark Rourke:
Well, it's one of the reasons that our truck color and our trailer color so often are orange because it's the safest color. And it really just starts really from that first decision, that safety first and always. And it really is something that we're so proud of because nothing we do is worth getting hurt over or hurting others. And so to see those drivers live that out every day on behalf of our customers is really what makes this worth it. But let me get back to your question on those numbers.
Lance Glinn:
Have you ever gone to a million miles?
Mark Rourke:
Well, I haven't kept track to that degree, but we do about 9 million freight miles a day as a company, which is 380 times around the globe. So if you take that from a 5 million driver like Greg Swift, who celebrated that last year, you're talking about 150 times around the globe without having any type of mishap. And it's just an incredible accomplishment.
Lance Glinn:
Really incredible. Yeah, I don't know if I'll ever reach a million miles, definitely won't reach 5 million miles. As long as I keep commuting into the city via train, I assume maybe I'll come close depending on how far I drive outside of work.
Mark Rourke:
It doesn't really count riding miles. No. It really has to be driving.
Lance Glinn:
Exactly. Exactly. So you came on two years ago for episode 351. We spent a lot of time on that episode talking about your history, your background. So we're not going to spend a ton of time focusing on it here, but your Schneider career started in 1987. You've been around for now almost 40 years of the 90 years that Schneider has been in existence. Began as a service team leader in Seville, Ohio.
Now oversee a company that, as you just said, travels over 9 million freight miles per day. So being so experienced in the company having this 40 years or almost 40 years of time with Schneider, how are you connecting with this great milestone having experienced the ups and the downs and all the different events that the company has had to overcome to become so successful?
Mark Rourke:
Yeah, one of the things I just reflect on regularly is really the foresight of Al and Don Schneider who really embrace change. The reason you're around nine decades is that you didn't fight where the world was going. Supply chains changed. We went to a global supply. We went into an intermodal product that combines truck and train. And if you fight any of those trends or try to protect what today is, you can really hurt the long-term prospects of the company.
And so I've always admired and appreciated the foresight, the strategic foresight, that they shown. And I want to make sure that I'm carrying that tradition on, is how you stay relevant is that you're adapting and changing technology, the safety technology, all the things that are happening. It just makes the company better, and it makes you ability to stay for the long haul. And that's really what we're all about.
Lance Glinn:
And you mentioned Al and Don Schneider. How are you blending with such experience at the company, how are you now as CEO blending everything that they built over the last 90 years? As it's been 90 years, how are you blending that long history, that rich legacy with obviously everything being more modern today?
Mark Rourke:
Yeah, and I think one of the things I take from Don is that he often said, "Change everything but your core values. And if you stay true to who you are, you'll make the right decision. But you have to adapt and change and not be afraid of it." And I think that's what we're doing. We're a leader in technology.
We're a leader in just about every business that we're involved in, whether it's trucking, dedicated, intermodal, and continue to forward invest and not get overly wrapped up in the issue of the day or the issue of the time, and keep your eye on the long-term horizon. Because as he often like to say, we're here and we're built to last.
Lance Glinn:
And you mentioned intermodal a couple of times. We're going to talk about that a little bit later in our conversation. But I do want to speak to the present day. In December of 2024, Schneider acquired Cowan Systems. It's been now five months with Cowan a part of the company portfolio. Q1 was the first full quarter with the acquisition included in the results. But before we just look at its impact, what has Cowan provided Schneider since December that it may not have had prior to the acquisition?
Mark Rourke:
Sure. Maybe just back up just one step on that. We made a strategic pivot that said that we wanted to have deep, long-term relationships with our customers and dedicated contract services where we're signing up for a specific service with a specific set of resources. It gives us a chance to be stickier and more long-term with our customer. And we've done that organically, but we've also, over the last three years, added three acquisitions, Cowan being the most recent, to really build on that strategy.
And so right now we have over 8,400 tractors every day and dedicated service contracts with our customers. And what Cowan brought to us, it was really a different approach in the Northeast, particularly in the mid-Atlantic, but also very lightweight equipment. So what they really focus on is how can they get more payload on their trailer on behalf of their customers.
And so you think about that, who has heavy payload? Generally food and beverage, building supplies, folks that weigh out on their trailer before they cube out. And that's really their focus. And it's been a very unique model. And like you said, we're only four or five months in, but it's been a terrific acquisition.
Lance Glinn:
How has its integration of the fleet and services that Cowan provide, how has it just impacted Schneider's operational efficiency, its customer service capabilities, and really long-term just what's the potential for what this acquisition could become for the company?
Mark Rourke:
Yeah, I think one of the real attractive elements of someone like Schneider acquiring a very successful, and this was 100-year-old company, is that we have access to capital. We can let them achieve their growth potential that they may have been capped for lack of ability to attract capital. And so we want to build on their successes. And part of that is we don't really change... We don't paint them orange, for example. We really hold onto the things that made them special around the customer and the driver community.
But we bring a lot of synergies behind the scenes on purchasing power, our maintenance infrastructure, other things that really benefit the associate or benefit the customer. We integrate those and we've had great success. And each one we move a little bit faster because we learn how to do that each successive time. And so being our third acquisition the last three years, we're moving at a different rate and pace to take advantage of those advantages.
Lance Glinn:
So three in three years, Cowan obviously being the most recent one.
Mark Rourke:
And the largest.
Lance Glinn:
And the largest, and I said December 2024. What is just your overall process when it comes to M&A and your philosophy to make sure that sure, a company on paper may look attractive, may look like it's the right fit, but you really don't know for sure if it will be until you meet the people, until you really engage with the company to be certain that they'll fit in with what Schneider is doing?
Mark Rourke:
Yeah, you hit it on the nose. Culture is so important. But we think we're the best buyer, particularly those companies that are family owned, might be their first, second or third generation of their own business and it matters to them where it goes. They've built something special. They care deeply about their life's work.
And no better place than Schneider who comes from a similar background and has that family feel, but also very contemporary, very leaning forward and can really help that company over the long-term achieve its potential. And so we really in our due diligence stress that fact. And through our assessment, we want to make sure that we're going to be a good fit for them and they're going to be a good fit for us.
Lance Glinn:
So I want to stay on the topic of business growth, and no technology seems to have the potential to really optimize speed and efficiency in the modern day more than artificial intelligence. And you spoke to the benefits of AI in Schneider's most recent earnings call saying about the technological advancements that they can help in "freeing up associates to focus on more meaningful work higher in the value chain." So just what does AI implementation look like at Schneider?
Mark Rourke:
Yeah, and it's something we've been involved with for the last several years, and what we're really looking at is where do we have the ability to take all the information that we gather and use artificial intelligence to help us make better decisions? How does it as a digital assistant to our people doing the work? And in some cases, we can even have digital employees that we can then raise folks that are doing something that we can replace with technology into higher value, the customer values.
And so it's a combination of both. It's early in the journey in some respects, but I think the potential and the opportunity, particularly in transportation and supply chain, is very rich. And so we're continuing to experiment. We're having opportunities to advance that process and we look for more progress here in 2025.
Lance Glinn:
And can you speak further on how you balance the AI and the impact it provides while also still having that human touch? Because I think that's something that a lot of companies are still grappling with, making sure that, yeah, they use the technology to its full benefits, to its full capabilities, but they still have people that are on the phones that are working with customers that are there to provide the service that still most people, I think, want. I think most people would rather talk to a human than an AI robot, for example.
Mark Rourke:
Yeah, I think most customers, what we call want an effortless experience and how to best serve them at the right time and in the right way. And you're dead on. If you think about the last several years, there was this whole phase of digital brokers. And they were going to come in and the machines were going to do all the work, and we're going to make all this massive disruption to the industry.
But in the end, to your point, there's a combination to make that work is the combination of people and technology. It's not one or the other. It's both and how they harmonize and how they work. And so it's been somewhat gratifying to see the incumbents like ourselves adopt technology, but also understand that people make a difference. This is a people business at the end of the day. And how you combine those two things matter.
Lance Glinn:
So we obviously spoke earlier to the expansion or to the acquisition, excuse me, of Cowan. And in 2021, Schneider began pursuing a new vertical of forestry, moving timber straight out of the woodland, something that maybe 70, 80 years ago, Al and Don Schneider probably didn't foresee being a part of the company portfolio. But what brought Schneider to this new vertical and how has it just grown over the last few years?
Mark Rourke:
Yeah, that's a long way from cheese, beer, and toilet paper with the Wisconsin staples. But I think it does speak to my earlier comments about dedicated contract services. And it allows us to reach into different verticals because the needs, the equipment, and the solution is much different, hauling logs out of a forest going to a pulp mill than moving toilet paper to a big retailer on a drop and hook across the country.
And so while it's not all applicable, you have to go in and really learn the industry, take the time to learn where the pain points are, be a consultant, how can we make a difference with maybe some of the things we've learned in other areas and how do we apply it here, but also understand that it's different and we have to adapt to what their needs are. So forestry is just a great example.
Maybe it was printing paper back in the day. But when I started 30 years, 40 years ago, now it's packages that we could deliver to our homes. So packaging is the big byproduct of the forestry industry, and so the demands there. And we think we have a better way to help them achieve across the seven-day work week what they need to do to get that timber to the pulp mills.
Lance Glinn:
So I mentioned before that you obviously last joined us Inside the ICE House on episode 351 in March of 2023. And in that episode, you spoke then to the company's increased investment in intermodal services. And in November of 2024, so a few months ago, the investment continued as you launched a new intermodal service between the Southeast of the United States and Mexico. Just how has this expansion benefited Schneider's capabilities and their ability or your ability, excuse me, to service the customer?
Mark Rourke:
What we did, we assessed what's the long-term trend of where products will be sourced. And I think coming out of the COVID era, the long supply chains coming across the whole globe was a problem and the ability to respond and be nimble. And so our assessment was one of the areas that was really going to benefit from changes that customers are going to make is nearshoring, and Mexico we thought would be a big winner long-term and I think even now as we talk about tariffs and all the things going on across the globe.
And so we wanted to make sure that we were there to take advantage of that trend. We've been in Mexico for 30 years. But with the CPKC having the first service that doesn't have any handoffs, that goes right from Mexico to the Midwest, now Mexico into the Southeast, and as the anchor provider on that railroad, we think we have the best solution. And so to us it was a no-brainer and we're really, really pleased with the progress we've made. It's our fastest growing segment in the company right now servicing in and out of Mexico.
Lance Glinn:
And to that point, when you look at this intermodal, this cross-border intermodal, how important is it to Schneider's long-term growth strategy and what makes the company just uniquely positioned to lead in this area?
Mark Rourke:
Well, our strategy is to have the best control for our customers. So we own our box, our container. We own the chassis. We do about 93-94% of the dray on our company assets. And so when you think about all those handoffs, if you're trying to use third parties and all of that, there's complexity, there's cost, there's friction.
And so by keeping that optimized across all of our assets within our control, we think we have the best customer experience, most efficient for the railroad because our partner is the railroad and we want to be efficient in and out of their locations. And we think that's absolutely the best model and certainly that's what we've taken to Mexico too with this new CPKC relationship.
Lance Glinn:
And where do you see the greatest growth opportunities when it comes to this area, this cross-border intermodal?
Mark Rourke:
Well, it's across really all the key service areas. I think there's certainly appliances. There's automotive. There's increasing manufacturing of all sorts. And so as Mexico's footprint grows... And the beauty also is there's things produced here in this country that goes into Mexico as part of that manufacturing process. So there's support of our domestic manufacturers as well in that supply chain.
And so what people are looking for is how do I do that at the most economic way and intermodal fits that bill and their execution is phenomenal. So what can we get to transit to match what is over-the-road trucking? And so you take that combination, it's pretty powerful. It's hard to beat.
Lance Glinn:
So we started off the conversation just reflecting on 90 years. And over the course of those nine decades, Schneider has weathered everything from economic downturns, major industry shifts. Obviously we talked about the COVID pandemic earlier. We mentioned the COVID pandemic earlier as well. Just what have been the defining traits in your mind in the company since 1935 that have allowed it to remain resilient, bust through these obstacles, and continue to be successful?
Mark Rourke:
I think the only thing we haven't dealt with is locusts and fans at disjunction after 90 years. But I do think transportation is such an essential industry. I think 85% or 90% of the things that you and I buy at one point has been on a truck. And so that whole essential nature makes sure that we're the economic engine of the economy and we'll go through ebbs and flows and economic good times and tough times.
But if we focus on the customer, if we focus on making sure that we're not holding on to things just because that's the way we've always done it, and we adapt and change and embrace new technologies and new services, we stay relevant and we can thrive no matter what's going on around us. And what I keep focusing with our group is let's control our controllables.
We can't control public policy, we can't control tariffs, but we can control our cost position, we can control how we serve our customers, we can control how we treat our people. We've been through a lot, and we'll come out the other side a stronger company.
Lance Glinn:
So since I have you here Inside the ICE House, I can't let you leave without asking a few questions about your Green Bay Packers. Now, I'm a big football fan. I'm a big Giants fan.
Mark Rourke:
I'm sorry.
Lance Glinn:
No, no, no. For the last couple of years, yes, it's been a rough few years as you know. Although to that, we do have over your Packers 2007 and 2011.
Mark Rourke:
Those were painful. I was there.
Lance Glinn:
But with that said, but with that said, obviously Green Bay had the draft this past year. First and foremost, were you at the draft?
Mark Rourke:
I'm a little bit of a draft junkie.
Lance Glinn:
Okay. So am I. So am I. I love it. Can't get enough.
Mark Rourke:
I went all three days. I couldn't get enough. I thought the city and the Packers, who hosted it there at Lambeau, couldn't have done a better job. And so we saw fans from all Jersey types, and even some New York Giants fans. But yeah, it was a great moment for the city, a lot of fun. My hat's off to them.
Lance Glinn:
And first wide receiver, I think, in 23 years. That must have been an exciting moment, as we saw on television, must have been an exciting moment for the fan base.
Mark Rourke:
Sure. I'm sure Aaron Rodgers said, "Now you finally do it." But yeah, they have a good young quarter wide receivers.
Lance Glinn:
I love Golden. I love Matthew Golden.
Mark Rourke:
I think is going to be very interesting.
Lance Glinn:
So one last question on the Packers, just your preseason or not even at preseason yet, off-season now that the draft has passed, free agency has passed, off-season outlook, how excited are you for Jordan Love, Coach LaFleur, everything that the Packers have coming and now 2025-2026?
Mark Rourke:
Well, I'm on the Packer board, so I have to be careful what I say. But one of the things that I've enjoyed about that experience is how talented really the whole organization is and how committed they are to not what the product they put on the field, but how positive the fan experience is. And so I think they're well, well-positioned, a tough division. The division is loaded.
Lance Glinn:
I think the best division in football.
Mark Rourke:
But I think they're ready.
Lance Glinn:
So I asked you about the Packers, had to get those few questions in. Now back to Schneider, its 90 years, you've, as we've talked about, spent almost 40 years now within the company. What does leading Schneider with all this experience in it, what does leading Schneider during this milestone anniversary, this nine-decade anniversary, only now a decade away from the century mark, teach you about stewardship and the responsibility to the generations who came before you, as well as those who one day will come after you?
Mark Rourke:
Yeah, I was just going to use that word, stewardship. So that was interesting that you chose that word as well. I'm only the fourth CEO in the 90th year of the company, which is in of itself pretty amazing. And I think about that every day, is I want to make sure that I do everything I can to leave the company in a better place when I leave than when I got here. We're all motivated, I think, for Don's built to last theme, but it's a great deal of pride.
Obviously transportation logistics is an incredibly interesting industry. It's so essential. It changes all the time. And so just preparing the organization, how we think about our human capital pipeline and the leadership and really our culture and our values. Everything we do has to go through that prism because everything's bigger than one individual and our obligation is for the long-term.
We're really looking forward to this summer to take a step back and celebrate our history. But really what it does for me is it defines our future as well, because with that comes confidence, not swagger, but a confidence that we're prepared to lead into the next 100 years.
Lance Glinn:
So as you approach that 100 years, as I said, only 10 short years away, and I feel like it's going to go a lot quicker, right? You'll blink and that 100-year anniversary will be here. What does the next decade look like? How are you and your leadership team plotting out the next 10 years to maintain and grow on the current successes and gear up for that century anniversary?
Mark Rourke:
Yeah, it's really how do we want to position the organization for the future. And what I really like about our organization is we're so diversified across really three platforms, truckload, intermodal, and one of our fastest growing is logistics where we bring other people's assets on behalf of our customer.
And so across those three platforms. I don't know if anybody's as diversified and as scaled as we are. And what we have to figure out is how do we take advantage on behalf of our customers, how to bring those services together to grow and be relevant not only now, but well into the future. And to me, that's the whole fun of the role.
Lance Glinn:
Well, Mark, I wish your Packers the best of luck this year, congratulations on 90 years, and thank you so much for joining us once again Inside the ICE House.
Mark Rourke:
Appreciate it. Thank you.
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