by Don C. Brunell, President
Association of Washington
Business

Ask Washingtonians if theyve heard of Jim Casey and most will respond, I know a Jim Casey. Hes related to Few put him in the same league with Bill Gates.
Most people dont realize Jim Casey started what is now the Microsoft of package shipping, United Parcel Service, a 100-year-old company employing 427,000 workers in more than 200 countries worldwide.
Casey was just 19 years old in 1907 when he partnered with Claude Ryan and borrowed $100 to start a delivery company headquartered in Seattles Pioneer Square. Later, they merged the business with Evert McCabe, who ran a competing delivery service, to form American Messenger Service.
Jims brother, George, joined the companys leadership next after serving as one of the companys original messengers. In 1918, Casey recruited Charles Soderstrom, who brought his expert knowledge about cars to the organization that became United Parcel Service. Together, they revolutionized the way Americans think about sending important documents and packages. They even changed the way the U.S. Postal Service handles mail.
UPS, now headquartered in Atlanta, Ga., celebrated a century of service in Seattle on Aug. 28. Its the worlds largest parcel carrier, an example of how private innovation can fulfill peoples needs.
The company that made Brown a household word is now a $42.6-billion business with its iconic brown delivery trucks and drivers clad in brown uniforms.
By going head-to-head with postal services around the world, UPS forced those government monopolies to be competitive. Many were heavily subsidized by taxpayers and the United States was no different. Our Congress had committees in both houses that oversaw postal operations and often propped up the postal service with government subsidies. The mail delivery system was inefficient and many were convinced there was no profit in delivering packages and letters.
UPS proved that when there is competition, innovation flourishes and money could be made.
In 2006, UPS revenue rose almost 12 percent while operating profit increased 8 percent and earnings per share climbed 11.2 percent to $3.86. Those are good Wall Street numbers and they make a lot of good things possible.
For example, people who invest in UPS stock receive dividends. Conversely, taxpayers dont pay subsidies.
Second, UPS pays taxes to governments around the world, which helps fund schools, roads and police and fire protection.
Finally, the U.S. Postal Service and other competitors now emulate the efficiencies UPS developed. Thats good for everyone because customers get better service at lower cost. Today, you can call UPS, have your package picked up and be confident that it will be delivered on time and in good shape.
In 2006, UPS delivered almost 4 billion packages an average of 15.6 million each day. CEO Mike Askew told UPS workers at the Seattle centennial celebration their company now moves 6 percent of Americas gross domestic product and 2 percent of worldwide GDP.
UPS is important to Washingtons economy. It has the worlds seventh-largest airline with more than 600 planes, most of them built by Boeing. In February, UPS ordered 27 new 767 extended-range cargo planes and Askew told folks in Seattle that UPS is ordering more Boeing 747s.
Jim Casey is part of the tradition of entrepreneurs whose innovations make our state great. He stands proudly alongside Bill Gates.