The Pennsylvania-based Hanover Logistics Group consists of two core business aspects: Hanover Terminal Inc. represents warehousing management services for the Northeastern and Mid-Atlantic regions of the United States, while R.H. Crawford Inc. deals in everything based in transportation.
Since we previously spoke in 2022, the last two-and-a-half years have brought steady and consistent growth for Hanover Logistics. This growth is due to its considerable customer base on the warehousing side and is also thanks to the onboarding of new business. The company has worked with local businesses in the Hanover area for trucking, while warehousing has helped it grow and retain both businesses and local workers. The Hanover, Pennsylvania community and region have seen overall growth, too, as manufacturers and shippers in South Central Pennsylvania increase their supply holdings closer to manufacturing bases.
Hanover Logistics recently introduced its new building, on which construction began in early 2024 and was completed by year’s end. It is the first company build made with pre-cast concrete as opposed to metal sides, with soaring ceiling heights of up to 38 feet.
Director of Logistics, Kevin Davis, says that the intention is to fully rack the space and to purchase height lift equipment to allow staff to easily add or remove stock. In an energy-conscious move, Hanover Logistics took the time to upgrade the lighting in all its facilities to LED lights as well. As Davis explains, the move was done for the company to do its part for energy conservation and to be a good environmental steward.
The company’s position as a warehousing and logistics provider continues to provide advantages to its market. Davis points out that the ability to offer multiple levels of value-added service streamlines the supply chain for customers. Hanover handles the entire supply chain for its clients and makes it easier to offer an end-to-end solution, which in turn helps its customers focus on their strengths.
“We try to work with our customers to… provide a full-service supply chain partnership,” he says. This includes managing e-commerce solutions for shippers and distributors, as well as traditional truck movement both in and out of state. Hanover has thus positioned itself as a uniquely capable and dependable provider.
Beyond its client-facing services, the company’s high regard for its workforce reinforces the people-first focus that is at the heart of the business. The company proudly puts its people first and gives them ownership of their own teams and processes. This allows the workforce to take more pride in their work, an attitude which passes down to customers and makes them more highly engaged. At five of Hanover’s active facilities, the company has individual customers that are supported by several leadership teams, who are allowed to build their own teams as they see fit to better serve clients.
Concerning workplace safety, Hanover maintains its own safety committee comprising coordinators, leaders, and others from all different sites at every level. The committee meets monthly for site walks to identify potential hazards, which are then submitted into work and repair orders as well as a monthly report to the executive leadership.
The team also engages in some fun and engaging practices to encourage safety, including Safety Bingo, where employees can win prizes each day without a documented safety incident, says Davis. A similar bonus is available to drivers on the trucking side, with bonuses awarded for safe miles driven and for passing Department of Transportation inspections. “People, safety, and customers are our highest priorities,” Davis says.
Back in 2022, Hanover Logistics was still in recovery mode from the COVID-19 pandemic, the effects of which were still being dealt with worldwide. While the company has made its way out of the tumultuous time, the pandemic highlighted the flaws in the just-in-time shipping approach because manufacturers had a hard time getting materials from overseas; as a result, more businesses began to think about holding raw material closer to manufacturing hubs to avoid it getting stuck in transit.
This trend away from the just-in-time model will likely persist as Hanover Logistics navigates other industry challenges. According to Davis, space availability will be a big priority going into 2025, as warehouse and storage space will be tight in certain markets while abundant in other areas. Over the last couple of years, he notes that there has been a big push to build more warehouses, leading to a flood in the market. The continuation of this push will depend on location and what the state of importing will look like over the next four years of the new administration.
Davis believes that automation will continue to find a stronger foothold within the logistics industry as well, with new manufacturing buildings and factories being constructed with automation in mind for the long term. While many within these spaces are a bit leery of fully embracing it, several manufacturing outfits in Hanover, Pennsylvania are thankfully resilient (especially considering that Hanover is considered the snack food capital of the world) to changing economies, so the region is in a good spot to retain its high occupancy rating even amongst potentially disruptive market shifts and trends.
Trucking, Davis says, has been a bit depressed in the last few years as a decline in freight demand coupled with higher interest rates is slowing the trucking economy. Hanover Logistics hopes to see more of an increase than a decline going forward; if anything, trucking is seeing a rebalancing after a large post-COVID spike, so things will hopefully level off to a more typical volume in time, he believes.
When it comes to its people, Hanover also takes a strong approach to new employees’ health and wellness, with the desire to help staff understand that it supports them in healthy lifestyle choices, whether through offering a fitness center to staff and families or by featuring group health insurance benefits that encourage regular health appointments. The Hanover team is always eager to support and celebrate the successes of its workforce, which garnered several awards in 2024 for their hard work in trucking collectively and individually. That support starts with making sure workers can remain at the top of their game—safe, healthy, and supported by leadership.
As a small trucking company, Hanover Logistics stays at the forefront of both safety and service by hiring good drivers, compensating them well, and giving them work which fits their lifestyle. Davis says that Hanover wants its employees to enjoy coming to work and to aspire to be good teammates.
The years to come will see Hanover Logistics continue to grow its presence in warehousing, investigating potential opportunities outside of Hanover as well. The company aims to grow its brand in a smart and measured way, without becoming over-leveraged or carrying too much liability. “We hope to work with our key customers in pursuit of that growth and in regions that are seeing difficulty,” Davis concludes. We look forward to seeing where that growth takes the company next.
