Primary Freight Services Inc. has come a long way since siblings John Brown and Kathy Hogan founded the company nearly three decades ago with just four employees.
Today, it has grown into a global freight logistics and transportation services provider, managing shipments in more than 100 countries and employing 70 people across California, New York and Chicago.
In an effort to preserve the company’s legacy, Primary Freight began in 2024 giving its many long-tenured employees an ownership stake in the business.
“I truly believe in my heart that if I took care of the people that worked for me, that they would take care of our business,” Brown, the company’s chief executive, told the Business Journal.
“It sounds simplistic, but I believe that’s why I’m here 28 and a half years later.”
Primary Freight received the Longevity Award during the Business Journal’s 27th annual Family-Owned Business Awards ceremony held June 11 at the Irvine Marriott.
Hogan, president of Primary Freight, previously won a Business Journal Women in Business Award in 2023.
For Brown, the honor validated the approach that has guided the company since its founding.
Brown said his goal is for Primary Freight to become a fully employee-owned company by 2028.
Employees Invested in Company’s Success
When accepting the award, Brown brought his leadership team with him on stage, including two employees who have been with Primary Freight since the very beginning.
Brown and Hogan were joined by Chief Compliance Officer Lisa Parlier and Vice President of Import Operations Karen Liu. All four worked together at vehicle washing tech company Mark VII before Brown and Hogan decided to start their own firm together.
Brown said that although Liu had recently given birth and spoke limited English, she demonstrated a “tremendous work ethic.”
“When I asked her to come join me, I said, ‘I got good and bad news. The good news is: I’m going to start my own company. The bad is, if you come, you’ll be taking a pay cut,’” Brown said.
Liu decided to take a leap of faith and join Primary Freight, turning down an offer by her previous employer to double her salary if she stayed.
Liu is one of several employees, representing more than 40% of the company, who have stayed at Primary Freight for 10 to 28 years.
Part of what has contributed to the low turnover rate, Brown said, is transparency.
For the past 15 years, the company has held quarterly town hall meetings to keep employees informed about its financial performance and organizational direction.
Brown also said that Primary Freight invests heavily in training its management team through Vistage, an executive coaching and peer advisory organization for small and midsize businesses.
Besides the company’s chief financial officer, every person on the current leadership team has risen from a desk-level role to a manager, according to Brown.
“People see that if you do show initiative and work hard, there is room to grow in our organization,” he said.
Visionary CEO
Brown said that he and his sister have distinct roles in the company, with Hogan overseeing execution and team management as president, while he focuses on Primary Freight’s long-term vision as CEO.
“My job has always been to keep us in tomorrow,” he said.
Currently, the company is evaluating how to use AI, which it’s already utilizing to help with invoices, while maintaining a personal touch.
Living only 10 houses apart, the siblings have watched their children grow up together.
“We’ve been part of each other’s lives forever,” Brown said. “She’s my little sister, but we have a mutual respect for each other and each other’s roles. I don’t know where I’d be without her in our organization today.”
Since the siblings started Primary Freight, their nephew Christopher and niece Christina have also joined the family business.
While Brown is unsure who else from their family may join Primary Freight in the future, he is sure children of current employees will join the company.
Brown said that they set up childcare at Primary Freight in its first year due to having several single mothers on staff.
At least five of those children have attended school and come back to work at the company. Two are still employed today with one in the IT division and one in accounting, according to Brown.
Supply Chain Disruptions from Tariffs
Having been in business for 28 years, Primary Freight has overcome numerous challenges.
The supply chain logistics firm has weathered through 9/11, the 2008 financial crisis, the pandemic and now tariffs. Brown said import and warehousing traffic has suffered significantly due to the uncertainty causing some of their larger importers to take a wait and see approach.
While imports and warehousing have softened, those operations represent only part of Primary Freight’s business. As an integrated logistics provider, the company manages the supply chain from purchasing to final delivery.
“Though our import and warehousing traffic has come down a bit, the rest of our domestic and international export business has been OK,” Brown said.
He credits the company’s perseverance to a diversified business model and loyal customer base, noting that its top 50 customers have remained with the firm for more than 10 to 15 years.
“By the end of 2027, I hope that some of this pain will be gone and that we can get back into a full swing of business,” Brown said. “Until that happens, we’re treading water for the time being.”
