Driver Shortage & Retention
Another conundrum revolves around experience behind the wheel. The U.S. Department of Transportation now requires drivers to have at least two years’ experience before they can be insured. “We have about 15 trucks that make runs to pick up produce from Mexico,” comments Pablo Enriquez, Jr., who owns and runs the trucking division of Enriquez Produce, Inc. on the market. “Drivers have to be at least 21 to drive out of state; from ages 18 to 21, they can drive in-state to gain experience.”
Of course, on top of less time behind the wheel, younger drivers cost shippers and receivers more because of higher insurance premiums, which is why experienced truck drivers are so valuable and in short supply. “One of the biggest challenges is that it’s difficult to retain older, experienced drivers,” explains Enriquez. “These individuals frequently have families and don’t necessarily want to spend days on the road.”
Toss in the ever-changing regulatory atmosphere and maintaining a steady roster of drivers is even harder. “The tough regulations definitely affect our business,” Enriquez asserts. “The limited hours of service and electronic log books can lead to having product stuck on the road. Regulations mandate that all drivers take eight hours of continuous rest (even if an individual is comfortable operating on five hours of sleep), and this slows deliveries—which can result in damage to our perishable products.”
Market Advantages
Although today’s technology has made it possible for merchants to do almost everything online, there are still many advantages to being on-site at the CIPM. Most wholesalers still favor the face-to-face aspect of the business, believing buyers and sellers who rely more heavily on phone calls and online orders may be missing opportunities.
Gaglione appreciates the large customer base and friendly rivalry; he also cites the CIPM’s advantages of newer construction projects, cleanliness, and having everything on a single level (unlike the old South Water location, which had four levels of warehouses and docks originally designed to accommodate horse-drawn wagons).
Pappas agrees that there’s plenty of competition at the CIPM, and it’s both a positive and a negative. “When we started, there were potato houses, leafy green houses, etc.,” he observers. “Now everyone has specialties—but actually, competition is good for business.”
On & Off The Market
Not everyone, however, feels it is necessary to actually be on the market, with some receivers and distributors locating their businesses adjacent to the CIPM or nearby. Anthony Marano Company chose a huge industrial space next to the new $60-million CIPM when the anchor businesses relocated from the South Water Market back in 2002.
“My dad started selling to wholesalers at the CIPM from the Blue Island Avenue location because he didn’t want to compete with his customers,” explains Enriquez. “Here, it’s not as congested for loading trucks and there’s less chance your competitors will come around to check out your merchandise. Also, being outside the CIPM has enabled us to offer better benefits to our workers than the union businesses do.”
Another nontenant is Blue Island Wholesale Produce, Inc. Daniel Suarez is president of Blue Island Wholesale, which imports from Mexico for the Hispanic foodservice trade. He says being across the street from the CIPM works well and can be less complicated than the hectic pace at the market. “We have customers we’ve had for 20 to 25 years,” he explains, and believes that by keeping the company small and off the market makes it more manageable and advantageous to his buyers. “We can serve them better.”
Roger Riehm, owner of Blue Creek Produce—a grower, broker, and distributor located 40 miles outside Chicago in the suburb of St. Charles—made a major transition this year. The supplier, which built its business on tomatoes before expanding to other vegetables and fruit, had been affiliated with the CIPM for many years before opening a new office in Florida.
