Good morning, ladies and gentlemen, and welcome to the ArcBest Corporation 2020 Annual Meeting of Stockholders. At this time, all participants are in a listen-only mode. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Judy R. McReynolds, Chairman, President, and CEO.
Thank you, Whitney, and good morning. I welcome you to the ArcBest Corporation 2020 Annual Stockholders Meeting. As Chairman of the Board of ArcBest Corporation, it is also my pleasure to serve as chairman of this meeting. At this time, I call the meeting to order. Michael Johns will serve as Secretary. To ensure an orderly meeting, you've been provided with a link to the rules of conduct, which we will strictly follow in carrying out the business of this meeting. We now need to handle a few procedural matters. There will be an opportunity for questions later in the morning. While shareholders who join the meeting using a control number may submit a written question to the moderator, no questions will be answered until the question-and-answer period, which will occur after all matters have been voted on and the votes tabulated and will last up to five minutes.
All questions must be submitted in writing through the meeting website. Mr. Johns will serve as the moderator. A list of the company's stockholders entitled to vote at this meeting has been available for inspection by stockholders at the company's offices for the last 10 days. Stockholders may submit a request to inspect the list during this meeting through the email address provided in the notice announcing this virtual meeting. Daisy Kuhn of Equiniti Trust Company, the company's stock transfer agent, has been appointed as the Inspector of Elections. She will determine the presence of a quorum and serve as inspector on all matters requiring a vote at this meeting. Only holders of record of the company's common stock as of the close of business on the record date, March second, two thousand and twenty, are entitled to vote at this meeting. Ms.
Kuhn has informed me that she has evidence that notice of this meeting has been properly given to all of the company's stockholders of record as of the close of business on March second, two thousand and twenty. If any stockholder is holding a proxy to vote at this meeting but has not submitted the proxy to the Inspector of Elections, please do so at this time by following the instructions on the meeting website. If any stockholder has joined the meeting who wishes to vote at this meeting, please do so through the link provided on the meeting site. Ms. Kuhn has informed me that she has determined there are stockholders represented either in person or by proxy, who hold a majority of the company's shares entitled to vote at this meeting.
Therefore, I find that a quorum is present for the purpose of conducting business at this meeting, and I declare that this meeting is legally convened and ready to transact business. Mr. Secretary, please file a copy of the quorum report with the permanent records of this meeting. All stockholders of record as of the close of business on March 2, 2020, are entitled to vote at this meeting, either in person through the link provided or by proxy, and each stockholder is entitled to 1 vote for each share of the company's common stock held of record on that date. The first item to be considered at this meeting is the election of 9 members to serve as the directors of ArcBest Corporation until the company's annual meeting of stockholders in 2021. The nominees for director are Eduardo F. Conrado, Fredrik J.
Eliasson, Stephen E. Gorman, Michael P. Hogan, Kathleen D. McElligott, Judy R. McReynolds, Craig E. Philip, Steven L. Spinner, and Janice E. Stipp. The second item to be considered for business at this meeting is the ratification of the selection of Ernst & Young as the company's independent registered public accounting firm for 2020. The third item to be considered for business at this meeting is the advisory vote on executive compensation. The fourth item to be considered for business at this meeting is the approval of the first amendment to the ArcBest Corporation Ownership Incentive Plan, as amended and restated. This concludes the matters to be considered and voted upon at today's meeting. Let's proceed with the balloting. If you have already voted by telephone, internet, or returning your proxy card, then you don't need to do anything further.
But if you wish to change your vote, or you intend to submit a proxy but have not yet done so, or you intend to vote your shares, please do so by following the instructions provided on the meeting website. It is now 8:05 A.M. on May 1, 2020, and I declare the polls open on each of the proposals. The Inspector of Election will complete the tabulation of votes on each of the proposals and will submit a report to me electronically. At this time, I'd like to introduce the company's other directors and the executive officers.
The directors are Eduardo Conrado, Fredrik Eliasson, Stephen Gorman, Michael Hogan, Bill Legg, who is retiring at the conclusion of this meeting, Kathleen McElligott, Craig Philip, Steven Spinner, Janice Stipp. As the company's President and Chief Executive Officer, I will be giving the President's report following the conclusion of the formal portion of this meeting. ArcBest's other executive officers are Dennis Anderson, Chief Customer Officer; David Cobb, Chief Financial Officer; Erin Gattis, Chief Human Resources Officer; Jim Ingram, Chief Operating Officer, Asset-Light Logistics; Michael Johns, Vice President, General Counsel, and Corporate Secretary; Steven Leonard, Chief Sales and Customer Engagement Officer; Danny Loe, Chief Yield Officer; Michael Newcity, Senior Vice President and Chief Innovation Officer, and ArcBest Technologies President; Tracy Soursby, Vice President, Controller, and Chief Accounting Officer; and Tim Thorne, ABF Freight's President. Please note that the polls will close in two minutes.
At this time, I would like to move back to the formal portion of our agenda. It is now 8:09 A.M., and I declare the polls closed. We have confirmed with the Inspector of Elections that all proposals have met quorum, and each of the following proposals have received the required number of votes in favor of its passage. Election of Eduardo F. Conrado, Fredrik J. Eliasson, Stephen E. Gorman, Michael P. Hogan, Kathleen D. McElligott, Judy R. McReynolds, Craig E. Philip, Steven L. Spinner, and Janice E. Stipp to the Board of Directors. Ratification of Ernst & Young as the company's independent registered public accounting firm for, for FY 2020. Advisory vote on executive compensation, and approval of the first amendment to the ArcBest Corporation Ownership Incentive Plan, as amended and restated. Thank you.
I am not aware of any other business that should be brought before this meeting, and I declare this meeting adjourned. We will continue informally with a business presentation and a question-and-answer session. I'm now pleased to present the 2019 annual report. So I'd like to thank you for joining us, and I appreciate the opportunity to share the ArcBest story with you. On Page 3, I'd like to ask you to keep the forward-looking statement information that I provided in our filings with the SEC on the slide in mind, as I talk today about our company and our outlook for the future. On Page 4, I think everyone is aware of the COVID-19 pandemic that began significantly impacting our country in early March. We continue to experience the impact of this crisis on our employees and our customers throughout our business.
As a global logistics provider, ArcBest is considered an essential business, so we are offering services to our customers as they fulfill the food and product needs of the citizens throughout this country. Shipments we have delivered during this pandemic have contained virus testing kits, hand sanitizer, protective masks, and ventilators. We've supplied government agencies, including the CDC, with equipment and drivers. We've worked with state governments to stage needed shipments to help their citizens, and we take great pride in being a part of our nation's response in these challenging times, and our employees have responded in amazing ways. Moving on to Page 5. The pandemic has impacted our business, reducing shipment and tonnage levels. As a result, we have taken some financial and cost-cutting steps to help us weather the storm.
In late March, we announced a $225 million drawdown on our bank credit agreements. We entered this pandemic period in a solid financial position, but because of the uncertainty of its impact or severity, we felt that increasing our financial reserves was a prudent step to take. As a result of our actions, at the end of March 2020, our cash and short-term investments were approximately $530 million-$540 million. Beginning in April 2020, we implemented several cost-cutting actions that included a 15% reduction in the salaries, wages, or work hours of all company officers and non-union employees, as well as a 15% reduction in the fees paid to the ArcBest board members and to the board committee chairpersons.
We anticipate that the second quarter expense reduction associated with all the changes we are making on non-union compensation will be in a range of $15 million-$20 million, provided the measures are maintained throughout the second quarter of 2020. In addition, total net capital expenditures for 2020 are now expected to be in a range of $95 million-$105 million, a reduction of approximately 30% from the range we planned for at the beginning of the year. We continue to manage our financial and logistics resources based on our lower level of business as we focus on effectively serving our customers while emphasizing the health, welfare, and safety of our employees. On Page 6, I want to move back into a discussion of the ArcBest story.
ArcBest is a leading logistics company with creative problem solvers who deliver innovative solutions. We've come a long way since our roots with ABF Freight in 1923, particularly in recent years. After careful strategic choices, our company has transformed in significant ways, and I'll talk to you about that today. There are a lot of new models in the market. It is important to have a business model that is effective for customers in both the short term and the long term. Our differentiated business model will be key to our future performance. On Page 7, you'll see many characteristics of ArcBest that have propelled us into our industry-leading position, some of which are shown on this Page. We operate across the country with owned assets as well as contracted carriers, which is unique in our industry.
In addition, we bring a solid balance sheet, as I mentioned, and our 2018 and 2019 financial results were some of the best we've ever had, certainly in the last 10 years. On Page 8, you can see, with the exception of parcel, that we do it all in the logistics arena. ArcBest provides a full suite of logistics solutions, including less-than-truckload through our carrier, ABF Freight, and ground expedite and premium logistics through Panther Premium Logistics. We also offer truckload, final mile, and international shipping, as well as managed transportation and supply chain optimization, where we use data to create solutions to our customers' supply chain challenges. In addition, we provide unique retail services like product launch. Our Retail+ Compliance solution for vendors is another retail solution we provide.
Moving to Page 9, as I mentioned, our roots with ABF Freight represent the foundation of our company from which we have expanded significantly. This transformation has been purposeful as we've made strategic acquisitions to build out our logistics portfolio, starting with the acquisition of an expedited services expert, Panther, in 2012. Since then, our logistics asset-light revenue has grown from 7% to 31% of total revenues. We've undertaken a number of other significant initiatives, including introducing an enhanced market approach in 2017, and implementing space-based pricing to ensure we receive the appropriate value for our services. Following the August 2017 implementation of our space-based pricing initiative, we saw quarterly year-over-year increases of 8%-10% in 2018.
We were able to follow that in each quarter of 2019, with high single-digit price increases on LTL-rated shipments, excluding fuel surcharge. We've also invested significantly in transformative technologies that have contributed to improved operational efficiencies and have strengthened our employees' focus on providing a superior customer experience. On Page 10, we show that ArcBest has experienced a solid revenue growth in the last three years. We've also experienced improved operating income. Though below 2018, which was an exceptional year, our 2019 operating income was the second best we've had since 2006. On Page 11, I'd like to discuss our differentiated business model. As background, we know that as customers' expectations evolve and they begin looking for faster delivery, more transparency, and more flexibility from suppliers, on average, their supply chains have grown more complex.
The need for unique distribution models, real-time information, excellent customer service, and trusted analytical business partners has been a driving force for innovation across the industry. On Page 12, we show our differentiated business model and how we leverage it. We are addressing these requirements and opportunities in five key ways by targeting large, attractive markets through deepening the excellent customer relationships that we have. Using innovative solutions, we create a winning customer proposition, which leads to a solid financial profile. This model is accomplished by our hardworking team of employees, who really embrace this vision in what they do for customers and capacity providers through our values-driven culture. On Page 13, we discuss our values-driven culture. Our values exemplify our corporate culture. It's how we do business and operate over the long term, which has become a greater emphasis by the investment community.
Our values of integrity and excellence contribute heavily to our reputation and our ability to adapt the delivery of our logistics solutions to our customers' needs. Our customers place a high degree of confidence and trust in our company and have additional logistics needs, enabling us to grow. Now, more than ever before, it is important to collaborate among our service offerings for the benefit of our customers. Because our business is defined by our people, wellness is one of our values. We see a high degree of value in bright, engaged, and productive employees. We talk about these values a lot within our company, and they drive every decision and initiative that we have at ArcBest. ArcBest is committed to doing our part to reduce our environmental footprint, and our people are making a lasting impact, volunteering to serve in organizations dedicated to building stronger and healthier communities.
On Page 14, we illustrate the large markets of opportunity available to ArcBest. Our business model starts with participating in a large U.S. transportation market. The size of the U.S. freight transportation market is in the area of approximately $1 trillion. We've identified 9 segments of the overall market in which we offer services to our customers. The LTL market continues to grow and is currently estimated to be $41 billion. Some of the other primary services we offer fall into the $87 billion dollar domestic transportation management market, the $20 billion dollar premium logistics market, and the $13 billion dollar final mile market. We also serve markets that are outside of freight transportation, such as the $17 billion dollar moving services market and the $43 billion dollar maintenance and repair market. The total of all the markets we serve is over $325 billion.
In the midst of an uncertain economic environment, we continue to have great opportunities in all of these markets as customers continue to value the options we bring and the services we offer. On Page 15, we illustrate the approach we use with customers. Our strategy focuses on deepening the amount of services we offer to existing customers and providing multiple services for new customers. We have done a lot of work, and there is more to do to enhance and deepen the relationships we have with our customers. As the relationship deepens, through our high level of service as trusted advisors to help solve challenges, we see customer loyalty increase and greater levels of service offerings purchased, which in turn, has many benefits for the customer and for us. Among those are higher retention rates, greater profitability, a larger share of wallet, and recommendations to other customers.
And now, moving on to Page 16. As I mentioned, we are participating in large markets. We're focused on deepening customer relationships, and this slide and the next, I want to highlight some of the innovative things we are doing to power our business model. ArcBest is uniquely positioned between what our customers need and want, and the capacity resources, both internal and external, to ArcBest, that can be offered as a part of a complete logistics solution. We offer our customers the opportunity to interact with us in the forum they prefer, which could be digitally, with most tools offered on our website, or directly when speaking to one of our creative problem solvers, or both, depending on the circumstances. We are intent on listening to our customers while analyzing their data to ensure that we match the right opportunity with the best resource we can offer.
Our quoting system offers various mode options and levels of service and related pricing, matching the customer's desired need in one phone call without being transferred throughout our company. During 2019, we made progress in expanding the digital experience elements of these capabilities. Access to capacity is the key to growth in our asset-light business, and we're also improving the digital access channels that we have with many of our capacity providers. We are utilizing unique systems to properly match our capacity sources to the shipments we are handling for customers, and this includes a capacity sourcing tool we launched to optimize the utilization of internal equipment capacity while reducing the time it takes to secure external equipment capacity in filling load requests from our asset-light customers.
In addition, our asset-based business is benefiting from cost reductions associated with the optimization of our city pickup and delivery and line haul operations coming from innovative tools we have developed internally. On Page 17, in early 2019, we began a pilot test program to improve freight handling at ABF Freight. Rather than moving freight into and out of trailers one piece at a time, we can pull full freight loads out of the trailer and access it from multiple points. The pilot provides ABF Freight an opportunity to evaluate the potential for improving transit performance, improving safety, and for providing a better experience for customers. We are currently testing this process in two facilities, and we plan to begin testing it in a distribution center environment beginning late summer.
A number of factors will be involved in determining proof of concept, and there can be no assurances that pilot testing will be successful or expand beyond current testing locations. Moving on, to Page 18, we'll talk about our winning customer proposition, which is the fourth key element of our differentiated business model, and it results from listening to customers and engaging with them regularly. The key things that we hear from our customers are that we solve their complex challenges, we are a trusted provider and partner, and we make it easy to do business. With the initiatives that we've undertaken and a culture combined with technology solutions that empowers creative problem solvers, we are focused on fulfilling these critical supply chain requirements.
On Page 19, as you can see here, we continue to see impressive progress in our customer experience metrics, which include not only Net Promoter Score, but also other metrics that tie to our strategy. We understand that as supply chains get more complex, we must stay focused on helping customers solve their challenges in a way that earns trust and makes their jobs easier. We attribute much of the improvement to quickly getting customer feedback to employees that are closest to the customer, as well as implementing a feedback process to follow up with the customer. The most encouraging aspect is that we know we must do a good job on a customer's exiting, or excuse me, existing business before they will consider giving us more. Cross-selling continues to be a focus. As customers buy more services from us, their retention rates increase.
These metrics are a good measure to ensure that we're setting ourselves up to continue growing business, not only with our existing customers, but by adding new customers. Transitioning to Page 20, we had some solid results in the past couple of years, and we're working hard to extend this momentum. The current COVID pandemic was unexpected, but we were in a solid financial position when it began, and the financial steps we have taken in the past month prepare us even more for what might come. On Page 21, we achieved the $3 billion level of revenue and are continuing to expand on revenue opportunities through new and existing customer relationships. We are focused on accelerating the growth of our asset-light business, which will contribute to a more diversified revenue stream that offers the opportunity for higher returns on our invested capital.
Over time, with a greater percentage of revenue coming from our Asset-Light business going forward and ongoing cost improvements generated through technology advancement and other initiatives, we are focused on the goal of achieving higher profitability. We are effectively dealing with the ever-changing impacts of COVID-19 on our ability to serve our customers and to keep each of our employees safe and healthy. These goals will guide us each day as we move through the remainder of the year. Page 22 reflects our financial goals. Our long-term financial goals are simple and straightforward. Since 2017, we have made progress on our goal of asset-based margins in the low 90s. We have more opportunities to consistently perform at those profit levels. We believe we can make additional progress as we gain benefits from the further development of innovative productivity investments we're making.
As we are driving to provide multiple logistics services to a greater number of our customers, we will continue to make progress on our goal of more evenly balancing the revenue contributions of our asset-based and asset-light service offerings. As our asset-light business grows and becomes a greater contributor to our profits, we hope that our stock price reflects an expanded earnings multiple. As I've mentioned before, the COVID-19 virus event will likely impact the pace and timing of ArcBest's future growth and profit improvement, but nonetheless, we will continue to focus on achieving our future goals for the company. On Page 23, as I just presented, we have the right strategy and plans in place to continue generating strong financial performance for shareholders. We're targeting large market opportunities with our expanded suite of innovative logistics solutions.
We are deepening and broadening our relationships with customers who have large cross-sell needs and opportunities, and our solid financial profile allows ongoing investment in areas that enable us to create a winning customer proposition. Our values-based culture serves as the foundation from which all the activities at ArcBest begin, with engaged employees who are dedicated to our customers' success. Thank you for your attention as I presented the 2019 annual report for ArcBest Corporation. We have now come to the part of the meeting for your questions and comments, and we'll allow up to five minutes. As a reminder, any shareholder wishing to submit a question must do so in writing through the meeting website. We will be pleased to answer questions during the allotted time, to the extent that they do not require us to disclose material, nonpublic information. Mr.
Johns, have any questions been submitted? Okay, so, with no questions submitted, that concludes the question and answer period, and I thank you. I would again like to express my appreciation to each of you who logged in and joined us today. I also want to congratulate Bill Legg, our retiring director, on his years of service that he dedicated and devoted to our company. We really appreciate Bill and wish him all the best. Thank you very much for joining us. We look forward to reporting to you again next year.
Ladies and gentlemen, this concludes today's conference. Thank you for your participation, and have a wonderful day. You may all disconnect.