In a year marked by a deceleration in freight shipping, Chattanooga’s trucking and logistics enterprises have surged ahead, achieving remarkable growth in 2022 and solidifying their position among the swiftest-growing American businesses.
Inc. magazine’s annual ranking of the nation’s most burgeoning companies features an impressive inclusion of 20 Chattanooga-based enterprises in its prestigious list of the top 5,000 US businesses that have experienced the most rapid revenue expansion over the past three years. Notably, a substantial 70% of the local companies spotlighted on the fresh Inc. 5000 roster are affiliated with logistics or provide services to the trucking sector.
Craig Fuller, CEO of Freightwaves, observed in a recent telephone interview, “Logistics has emerged as a cornerstone of our entrepreneurial and startup landscape in Chattanooga, leading to our apt moniker ‘Freight Alley.’ The city’s concentration of talent combined with a business environment that fosters innovation and growth has fueled the momentum of numerous logistics startups.”
Fuller, hailing from a family involved in establishing major trucking enterprises like Southwest Motor Freight, U.S. Xpress Enterprises, Covenant Logistics, and Transcard in Chattanooga, is a prominent voice in tracking and analyzing the logistics industry for Freightwaves, a software and media company that has secured its spot on the Inc. 5000 list once again this year.
Fuller likened Chattanooga’s significance in the logistics field to that of Chicago, indicating the city’s ascent as a thriving hub. This recognition has prompted Freightwaves to host its “F3: Future of Freight Festival” in Chattanooga this November, a three-day event anticipated to draw a multitude of leaders from the freight industry, akin to its successful edition last autumn.
Ted Alling, a co-founder of Access America, a freight brokerage firm, and an investor in various logistics startups in Chattanooga, expressed his conviction in an emailed statement, “The Inc. 5000 listing underscores my belief that Chattanooga is the prime US city for launching logistics enterprises. The city’s rich pool of local talent magnetizes investments from burgeoning logistics startups and major industry players alike. The support from local venture capitalists and academic institutions like UTC and Chatt State has been invaluable.”
Nurturing Progress
Despite challenges such as the slowdown in freight shipments and industry consolidations like KnightSwift’s acquisition of U.S. Xpress, Chattanooga’s strong industry foundation and talent reservoir are poised to drive further startup ventures in the logistics sector. This adaptability to industry shifts positions the city to remain fertile ground for innovation, according to Fuller.
The 20 Chattanooga companies securing a spot on the new Inc. 5000 list represent a 25% increase compared to the prior record set in the 2022 Inc. 5000 compilation. Collectively, these companies registered a remarkable 219% growth in revenue over the past three years, amassing a total of $358.2 billion in the previous year. Moreover, they have contributed nearly 1.2 million jobs to the US economy, as reported by Inc. magazine.
Gaining Momentum
Leading the pack among Chattanooga’s surging logistics companies on the Inc. 5000 list is Steam Logistics, an international freight brokerage firm that recently relocated to the renovated John Ross building, housing over 500 of its 700 employees.
Steam Logistics, holding the No. 260 spot on the Inc. 5000 list, has enjoyed an impressive seven-year streak of being featured among the fastest-growing companies since its inception in 2012. Jason Provonsha, Founder and CEO of Steam Logistics, emphasized the significance of this year’s ranking, particularly due to the substantial growth achieved over a larger foundation compared to previous assessments.
Provonsha shared, “Going from a $33 million company in 2019 to $765 million in revenues last year is an experience I will never forget. We’ve nurtured a distinctive and diverse culture at Steam, and our success owes much to our dedicated team that upholds this culture.”
Steam Logistics is among the numerous local freight brokerage companies that facilitate shipments by connecting firms needing transportation with carriers. While a majority of the Inc. 5000 firms in Chattanooga this year are freight brokers, others like Freightwaves, Workhound, and Reliance Partners contribute to the trucking and logistics sectors through tracking data, employee surveys, and financial services.
Chattanooga’s Flourishing Enterprises
In the realm of America’s fastest-growing businesses spanning the past three years, Chattanooga proudly claims 20 of these remarkable entities. Of these, 14 are rooted in logistics or provide vital support to the industry. The leading local companies on the Inc. 5000 list, along with their growth rankings from 2019 to 2022, encompass:
- Steam Logistics, established in 2012 and led by Jason Provonsha, a freight brokerage firm that secures the No. 260 spot with an astonishing growth rate of 2,151%.
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