U-Haul 2016 Annual Report Download - page 10

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4
Moving and Storage Operating Segment
Moving and Storage operating segment (“Moving and Storage”) consists of the rental of trucks,
trailers, portable moving and storage units, specialty rental items and self-storage spaces primarily to the
household mover as well as sales of moving supplies, towing accessories and propane. Operations are
conducted under the registered trade name U-Haul® throughout the United States and Canada.
Net revenue from Moving and Storage was approximately 91.0%, 91.0% and 90.6% of consolidated
net revenue in fiscal 2016, 2015 and 2014, respectively.
During fiscal 2016, the Company placed over 38,000 new trucks in service. These additions and
replacements to the fleet were a combination of U-Haul manufactured vehicles and purchases. Typically
as new trucks are added to the fleet the Company removes older trucks from the fleet. The total number
of rental trucks in the fleet increased during fiscal 2016 as the pace of new additions was greater than
those trucks removed for retirement and sale.
Within our truck and trailer rental operation we are focused on expanding our independent dealer
network to provide added convenience for our customers. U-Haul maximizes vehicle utilization by
managing distribution of the truck and trailer fleets among the approximately 1,700 Company operated
stores and approximately 19,500 independent dealers. Utilizing its proprietary reservations management
system, the Company’s centers and dealers electronically report their inventory in real-time, which
facilitates matching equipment to customer demand. Approximately 53% of all U-Move rental revenue
originates from the Company operated centers.
At our owned and operated retail stores we are implementing new initiatives to improve customer
service. These initiatives include improving management of our rental equipment to provide our retail
centers with the right type of rental equipment, at the right time and at the most convenient location for
our customers, effective marketing of our broad line of self-moving related products and services,
expanding accessibility to provide more convenience to our customers, and enhancing our ability to
properly staff locations during our peak hours of operations by attracting and retaining “moonlighters”
(part-time U-Haul employees with full-time jobs elsewhere) during our peak hours of operation.
Our self-moving related products and services, such as boxes, pads and insurance, help our
customers have a better moving experience and help them to protect their belongings from potential
damage during the moving process. We are committed to providing a complete line of products selected
with the “do-it-yourself” moving and storage customer in mind.
Our self-storage business operations consist of the rental of self-storage rooms, portable moving and
storage units, sales of self-storage related products, the facilitation of sales of services, and the
management of self-storage facilities owned by others.
U-Haul is one of the largest North American operators of self-storage and has been a leader in the
self-storage industry since 1974. U-Haul operates over 536,000 storage rooms, comprising 47.9 million
square feet of storage space with locations in 49 states and 10 Canadian provinces. U-Haul’s owned and
managed self-storage facility locations range in size up to 172,000 square feet of storage space, with
individual storage units in sizes ranging from 6 square feet to over 1,000 square feet.
The primary market for storage rooms is the storage of household goods. We believe that our self-
storage services provide a competitive advantage through such things as Max Security, an electronic
system that monitors the storage facility 24 hours a day, climate control in select units, individually
alarmed rooms, extended hours access, and an internet-based customer reservation and account
management system.
Moving Help and U-Haul Storage Affiliates on uhaul.com are online marketplaces that connect
consumers to independent Moving Help™ service providers and thousands of independent Self-Storage
Affiliates. Our network of customer-rated Moving Help and affiliates provide pack and load help, cleaning
help, self-storage and similar services all over North America. Our goal is to further utilize our web-based
technology platform to increase service to consumers and businesses in the moving and storage market.