Subcategory: Training Education

Strong start to Q3 with 136 new Industrial Manufacturing Planned Industrial Projects

Industrial SalesLeads released its October 2024 report on planned capital project spending in the Industrial Manufacturing sector. The firm monitors planned industrial capital projects across North America, including facility expansions, new plant construction, and major equipment modernization initiatives. The latest research identified 136 new projects, an increase from 128 in September. The following are selected highlights of the new Industrial Manufacturing industry construction news. Industrial Manufacturing – By Project Type Manufacturing/Production Facilities – 118 New Projects Distribution and Industrial Warehouse – 85 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 47 New Projects Expansion – 42 New Projects Renovations/Equipment Upgrades – 56 New Projects Plant Closings – 12 New Projects Industrial Manufacturing – By Project Location (Top 10 States) Pennsylvania – 10 Indiana – 9 North Carolina – 7 Ohio – 7 Ontario – 7 Tennessee – 7 Texas – 7 Illinois – 6 Washington – 6 Arizona – 5 Largest Planned Project In October, our research team identified 19 new industrial manufacturing facility construction projects with an estimated $100 million or more value. The largest project is owned by Eli Lilly and Company, which plans to invest $4.5 billion in the construction of a processing, laboratory, and research campus in Lebanon, IN. The company is currently seeking approval for the project. Top 10 Tracked Industrial Manufacturing Projects NORTH CAROLINA: A pharmaceutical company plans to invest $2 billion in constructing a processing campus in Wilson, NC. Construction is expected to start in Spring 2025. NEVADA: Battery MFR. is planning to invest $1 billion in constructing a 1.2 million sf manufacturing facility in RENO, NV. They are seeking approval for the project, which is expected to start in 2025. PENNSYLVANIA: A pharmaceutical company plans to invest $800 million in constructing two processing facilities on its campus in MARIETTA, PA. It is currently seeking approval for the project. Construction is expected to start in late 2024 and be completed in late 2028. MICHIGAN: Semiconductor MFR. plans to invest $325 million in constructing a manufacturing facility on its campus in HEMLOCK, MI. It is currently seeking approval for the project. VIRGINIA: A pharmaceutical company plans to invest $200 million in expanding its processing facility at 2020 Avon Ct. in Charlottesville, VA. The project has recently been approved. PENNSYLVANIA: Generator MFR. plans to invest $175 million in constructing a 300,000 SF manufacturing facility in FINDLAY TWP., PA. They are seeking approval for the project, which is expected to start in 2025. NORTH CAROLINA: Consumer goods MFR. plans to invest $146 million in a processing facility’s renovation and equipment upgrades at 4700 Sandoz Dr. in Wilson, NC. They are currently seeking approval for the project. TEXAS: A plastic recycling company plans to invest $145 million in constructing a processing and warehouse facility in HOOKS, TX. It is seeking approval for the project, which will start in Summer 2025. OREGON: Wood product MFR. plans to invest $120 million in its manufacturing facility’s renovation and equipment upgrades in SPRINGFIELD, OR. The project includes the construction of two manufacturing facilities at the site. Completion is slated for early 2026 and late 2026, respectively. ALABAMA: Automotive component MFR. plans to invest $100 million in the renovation and equipment upgrades of a manufacturing facility in Auburn, AL. They recently received approval for the project. About the Author: Since 1959, Industrial SalesLeads, based in Jacksonville, FL, has been a leader in delivering industrial capital project intelligence and prospecting services for sales and marketing teams to ensure a predictable and scalable pipeline. Our Industrial Market Intelligence, IMI, identifies timely insights on companies planning significant capital investments such as new construction, expansion, relocation, equipment modernization, and plant closings in industrial facilities. The Outsourced Prospecting Services, an extension to your sales team, is designed to drive growth with qualified meetings and appointments for your internal sales team. Visit us at salesleadsinc.com.

Think CASH in ’25

Last month, I suggested that dealers compare their 24 results against their peers’ accounting and cash flow budgets. I also stated that the month’s topic would be free cash flow, which we will discuss after a few additional topics that need to be on your radar for ’25. Take a look at the markets that are used for your product line. How are the Fair Market Value (FMV) and Forced Liquidation Value (FLV) stats coming along? In some categories, they are sharply up and some sharply down. Some even show a surge in FLV as customers continue to purchase used equipment. Performing this exercise will assist with your pricing policies for 25. And what I hear on the street is there are deals to be had with the OEMs, which dealers will need as the used market pricing is softening up. Walter McDonald produced a 60-question form to help dealers review how they compare to Industry Dealer Fundamentals. These are questions for owners as well as department heads. And I would share it at department meetings and include all the employees who work in that department to help them understand the dealers’ game plan for 25. I assure you it is worth the read. If you do not score at least 90% after going through the questions with your sales, parts, service, and rental departments, I would figure out a way to decide which issues are most important and assign managers to report back with a program to correct the problem. I asked Walter If I could include the list in this month’s column, and he gave me an “OK.” The article is included in this issue or can be accessed by clicking this link. There is money to be made by performing this review of your dealership. Get it! Cybercrime is increasing and becoming more dangerous now that hackers can access AI. With AI, hackers can duplicate voices, photos, and documents to move money from corporate accounts to theirs. Unfortunately, even disgruntled employees could initiate a sophisticated cyberattack. You may want to review how money is transferred into and out of your accounts. Having more than one approval process is probably a wise thing. Work with your bank and IT folks to develop a program that works for you. Let’s discuss Cash Flow Management Some factors will surely get in your way of managing a cash flow that ensures stability. Let’s face it: goods and services remain costly. Those 4-5% wage hikes, higher insurance costs, and customer requests for lower-priced goods make it difficult to maintain adequate cash flows. A survey found that one in four finance leaders say they do not have enough cash to run the business for the next twelve months. Interestingly, using new ways to control and measure cash flow requires a new level of expertise in the Finance Department to accomplish this task. I know this since my Grandson does this for a living. Gather the data. Make sure it makes sense, determine a billing cycle, plan out costs per period, fold in payment and collection programs, and move on to Budgeting, Forecasting, and Analytics. In addition, new processes and technology are also required to ensure reliable results, which can be reviewed and analyzed as the process progresses. Talking to Grandson, I am learning that this is a very tough job if you cannot get correct and reliable input, especially if deadlines and reports are required for management and financing sources. This tells you that if you have a cash flow problem, ways are being developed to improve control over and maximize cash flow. We will discuss this further next month. Free Cash Flow Free cash flow refers to cash flow from Operating Activities minus one or two claims against the cash flow. You usually see it presented as: CASH FLOW FROM OPERATIONS  minus  CAPITAL EXPENDITURES  equals   FREE CASH FLOW If the result of this exercise is positive, you have cash flow that will cover the expenditures cost with something left over that you can use for other activities. In your business, however, Cap-x, including technology and rental fleet, probably exceeds the CF from Ops, thus telling you of a need to obtain capital to cover the cost of the rental and technology equipment. Wall Street loves FCF because they need to see stability moving forward, Before further discussing CASH FLOW, I suggest you purchase a few CASH FLOW for DUMMIES books and make them available to your department managers and finance department. Since CASH FLOW is KING you may as well get them thinking cash flow and not book profits or losses. We all know that you can be profitable and be short on cash. One positive note regarding this topic is having your entire management team on the same page regarding cash flow. And if you don’t seem to be getting anywhere, I will send my Grandson to teach you the ropes. About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993.  E-mail editorial@mhwmag.com to contact Garry.

Assessing Machinery Dealer Fundamentals – A Strategic Approach

Are you ready for 2025? Here is a 60-question assessment of how well your business has adopted those fundamental Best Practices essential to be competitive today. Enter a “Yes” or “No” for each question in the margin. Scoring is on the last page. DEALER OWNER AND EXECUTIVE ISSUES Have you considered your proper leadership role? Do you want to manage sales and customer relationships OR internal operations and financial administration? You can’t do both well. Is there an established set of Core Values for your company that guides and inspires your employees and helps ensure your organization is constantly aligned with these core values? Are there established quantitative “Big Hairy Audacious Goals” (BHAGs*) that are clear and compelling, stimulate your entire organization’s progress, and create immense team spirit? *BHAGs were first introduced by Jim Collins and Jerry Porras in their pivotal text, Built to Last. Are there mechanisms installed to create discomfort and dissatisfaction with current performance levels: to obliterate complacency, to stimulate change, and to improve before the external world demands it? Is the business making proper investments for the future in new technologies, human capital, technician recruitment, facilities and equipment, new management techniques, and innovative practices vs. waiting for the market and industry to force you to change? Is leadership and supervisory management a strategic training initiative? Are you developing your own personal management skills? Is there an annual Strategic Business Plan that helps management examine marketing and business operations by Revenue Center with statements on how to improve quantitative performance metrics? Does the annual Strategic Business Plan support your Annual Budget? Describe the strategic steps to be taken in each Revenue Center, Sales Territory, and each Key Account to achieve your financial goals for the year. Does planning receive the time and attention it deserves, making it specific and realistic? In addition to having goals and measurable objectives compatible with resources, does your management team evaluate new product and market opportunities? Do your sales reps establish specific new account penetration targets? Do you, the ownership/senior management, have a viable succession plan? Are the investments in a management information system adequate? Will the system provide support for all departments, including service and parts, and generate reports on critical performance metrics in each area? Are all your dealer management information system modules properly installed, and are employees being provided essential training? Are there challenging and meaningful goals for each employee, and structure performance-based incentive compensation for reaching those goals? Does the dealership review monthly financial statements, which include a balance sheet, profit and loss, and cash flow statements? Does the dealership review a daily “flash report” on sales and gross margin by department, cash position, and available line of credit? NOTE: Ask me to send you a useful example. Does the dealership practice “Open Book” management, providing each revenue center manager with monthly financial results and actual performance against budget? Does your management team review and discuss monthly variance from budgeted performance objectives in each revenue center? Is your management team properly managing cash and avoiding cash traps such as excessive obsolete parts, unsold new units, over-aged used machinery, and idle rental machinery? Does your management team have strong skills in utilizing key financial ratios, critical profit variables, and operations performance metrics daily, weekly, and monthly to help identify the causes of potential problems (low cash, poor gross margins, low labor productivity, weak parts sales, drop in field sales account contacts, etc.)? Is the dealer leadership team improving financial management skills by learning what to ask and where to look? Is the leadership team helping and coaching employees to understand how their actions affect the company’s ability to make money, how they can make decisions that support the company’s profit objectives, and how they will benefit if the company is successful? Does the dealership offer special recognition and incentives for employees who suggest practical ways to increase efficiency, reduce costs, increase revenue, and improve overall profitability? Do you set an absorption rate goal and monitor it monthly toward a long-term objective of over 100%? Do you review the scores of Absorption Rate components with your management team at least monthly? Can Revenue Center Managers give five reasons why achieving a 100% Absorption Rate is critical to the dealership’s future? Is the dealership making the proper investments in service and parts essential to succeeding in today’s market? Is the dealer website current, user-friendly, and a useful living catalog for the business? Is the dealership capturing website visitors with appropriate “Can I help you?” popups? When a major problem occurs, do your managers first look for a process issue before seeking to blame an individual employee? Does your dealership formally review work processes and procedures at least every 2 years to ensure they are meeting the needs of your growing organization? Do your managers understand the importance of your Cash Flow Cycle and the role their department plays in optimizing cash generation? Does the leadership team review critical OEM Sales and Service Agreements that drive the business at least annually and update new executives to avoid blunders that could end the business relationship? Does sales leadership track sales mix and profitability by major product line, including aftermarket revenue, and works toward improving overall margin contribution by each product line? Does the dealership conduct a formal annual product line revenue/cost analysis based on the operating profit generated by each line to determine where to invest and what line(s) to drop? Does management honestly evaluate new product and market opportunities as well as branch and/or acquisition options to maintain growth and competitiveness? NOTE: Manufacturer strengths, technology, and priorities change over time, and although they may not impact your business immediately, over time, these small changes can have a determining impact on your ability to be competitive. Senior management can’t afford to be caught off guard. Long-term success for a dealership is more than impacting current metrics. MACHINERY SALES AND RENTAL MANAGEMENT ISSUES Is there an effective process for identifying and capturing at least three large, never-before-conquest accounts each

Enhancing AI Chatbot Interactions with Context-Rich Personas

Imagine having access to the expertise of a lawyer, accountant, or warehouse manager, wherever and whenever you like, for pennies. I’ll show you how. Last month’s issue laid the foundation for effectively prompting Generative AI-powered chatbots (such as ChatGPT, Claude, and Gemini). This month, I’ll delve into customizing these interactions to suit your business needs better through the use of personas. What is a persona? Think of a persona as a character the chatbot adopts during interactions. A persona encompasses tone, expertise, language style, personality traits, and response tendencies. The clearer we define these elements, the better the AI can tailor its responses to meet our specific needs. For instance, you can expect a more useful response to a request to resolve your laptop issue if you first instruct the chatbot to be a “laptop support specialist”. Building a persona Here’s a summary of the key elements to consider when creating an effective persona. While it’s not necessary to include every detail, generally, the more information you provide, the better and more tailored the response will be. Job Title and Experience Specify the desired job title, position, and years of experience that you want. You can also consider any relevant professional qualifications. You can never make the chatbot too overqualified. Example: “You are a Human Resources Director with a SHRM-CP qualification and 20 years of experience in handling employee relations, tracking HR metrics, and managing compensation and benefits at an OEM dealership.” Industry and Company Include the relevant industry and company details. Specifying the industry helps generate general best practices while including specific company information—such as size, locations, and customer base—can produce more tailored insights and actionable recommendations. Example: “You are a Sales Manager working in the manufacturing industry, with a focus on material handling equipment.” Tone and Personality Describe the personality and tone you want the responses to convey. The tone should be appropriate for the target audience. Example: “You are a Customer Support Specialist for an e-commerce retailer. You are friendly and empathetic when interacting with customers, ensuring a positive and supportive experience.” Goals and Objectives Describe the goals and objectives you want the chatbot to achieve. This will guide the development of responses that align with the desired outcome. Example: “You are a Project Manager with 15 years of experience in the construction industry. Your primary objectives are to ensure projects are completed on time and within budget and to improve project efficiency.” Content Format Specify the format you prefer for the responses, such as a bulleted list for quick reads, step-by-step guides, or full paragraphs for in-depth articles. Example: “You are a Warehouse Operations Manager. The preferred format of your outputs are step-by-step guides, to ensure clarity and comprehensive procedures.” Approach to Unknown Even with its vast intelligence, the chatbot may not always have the answer. It’s helpful to instruct it to let you know when it doesn’t know something instead of guessing. Example: “If you don’t know the answer, tell me “I do not know” instead of guessing.” By clearly defining these key elements, you can create a well-rounded persona that enables the chatbot to deliver more accurate, relevant, and engaging responses. Tip: Once you’ve created a persona you’re happy with, save a copy so you can easily reuse it later. Example persona: Below is an example persona you can try today. Update the wording in [brackets] according to your needs and enter them into your chatbot of choice. Feel free to add as many details as you’d like. “You are a [job title] with [number of years] of experience in the [industry name] industry and [company details]. You are [desired personality traits and/or tone], and your objectives are to [goals or objectives]. Your preferred format is [content format]. If you don’t know the answer, tell me “I do not know” instead of guessing.” Completed example: “You are a Warehouse Manager with 20 years of experience in the logistics and supply chain industry, specializing in small replacement parts. You are authoritative yet approachable, and your primary objective is to optimize the layout of your warehouse, measured by improved packing efficiency of 5% and reduced shrink of 2%. Your preferred format is bulleted lists. Tell me “I do not know” instead of guessing if you don’t know the answer. Let’s Try It Out As an experiment, try this prompt without a persona: “Give me best practices and a detailed how-to guide on warehouse layout optimization for my warehouse.” Your response will likely be suitable as an introductory guide but will lack the customized, actionable steps that would most benefit your unique warehouse and optimization efforts. Now, start a new chat, copy in the ‘completed example’ persona above, and add the same prompt immediately after it. The updated response likely offers a more in-depth and accurate response tailored to your specific industry and operational goals. Moreover, when the chatbot is equipped with a persona, it vastly improves its ability to answer follow-up questions in a way that is relevant to your business needs. The Bottom Line AI-powered chatbots can be customized in various ways to meet your unique and business needs. Incorporating a well-defined persona into your prompts is a great way to get more accurate and relevant responses from your AI Chatbot. As I often advise my clients, education, and experimentation are the keys to kickstarting their AI journey. Try the tech today; your organization will be much further ahead tomorrow. If you have any questions or need help getting started, please contact me at ai_automation@connorgp.com. You can also connect with me on LinkedIn for the latest trends and insights in AI and automation. About the Author: Jason Pikoos is a managing partner and leads Connor Group’s technology and innovation, which includes AI-driven solutions. He brings over 20 years of accounting, operational, and technology experience, working with high-growth and technology companies. Jason is a leader in helping companies drive operational excellence through process improvement, technology and automation, data and analytics, and effective governance.  

Manufacturers and Dealers need to embrace a new set of opportunities in 2025

As another December has arrived and 2024 winds down, you may be reflecting on a year filled with growth, innovation, and evolving challenges that you are facing in the industry and your local market. The close of one year offers a unique opportunity to assess the past and set sights on the future. Looking ahead to 2025, it’s clear that the industry will continue to face rapid changes, from advancements in technology to shifts in customer expectations.  With these changes comes a new set of opportunities and challenges, and both OEMs and dealers are poised to navigate them through stronger partnerships, strategic innovations, and a renewed focus on sustainability and digital transformation. As we do each year in the December edition, we explore the critical dynamics of the manufacturer-dealer relationship. Let’s discuss how dealers can leverage their manufacturers’ strengths to drive revenue growth and foster innovation for the year ahead. This partnership, which was once primarily about sales and distribution, has evolved to encompass a broader, more strategic alliance that enables both OEMs and dealers to thrive in an increasingly complex marketplace. At its core, the OEM-dealer relationship is a mutually beneficial arrangement. OEMs depend on their dealer networks not only to sell products but also to provide essential after-sales services like parts, maintenance, and technical support. Dealers, in turn, rely on OEMs for product innovation, training, and support to meet the changing needs of their local customer base. This dynamic ensures that end-users receive the high-quality service and equipment necessary to keep their operations running smoothly. However, the nature of this relationship is changing. Technological advancements, shifts in customer expectations, and evolving market dynamics are pushing both OEMs and dealers to adopt new strategies and approaches. This includes deeper collaboration on everything from financing and warranty processes to addressing safety concerns and driving innovation in product development. Key Trends Shaping the OEM-Dealer Relationship As we look ahead to 2024 and beyond, several key trends are shaping the future of the OEM-dealer relationship. Understanding these trends is critical for both parties to stay competitive and continue providing value to their customers. New Truck Inventory and Rental Utilization Lift truck dealers face a significant cash flow challenge when OEMs demand new truck purchases for their rental fleets amid declining rental demand and rising interest rates on existing inventory. Increased depreciation expenses further aggravate these financial pressures, negatively impacting dealer profitability. As new equipment prices begin to fall, the dealer-OEM relationship becomes delicate. OEMs aim to keep production lines active, but dealers must balance managing high inventory costs with profitability. This highlights the fine line between keeping a strong partnership while facing market challenges and fluctuating demand. Increased Focus on E-Commerce and Digital Platforms I recently presented the importance of offering customers the option to purchase your products online at MHEDA’s Parts & Service Management Conference this past September. I discussed how dealerships can leverage e-commerce to enhance customer satisfaction and streamline the ordering process. Customers today expect a seamless, user-friendly experience when researching, purchasing, and maintaining their equipment. This shift toward digital solutions transforms the traditional OEM-dealer model, forcing both parties to invest in new technologies that enhance the customer experience. Dealers are increasingly adopting e-commerce platforms to streamline parts sales and service scheduling. Meanwhile, OEMs are developing digital tools that allow dealers to offer more personalized support to their customers. The result is a more efficient, customer-centric approach that meets the demands of a digital-first marketplace.  The balance between the OEM and the dealer will be for those OEMs who already sell their products online and credit the dealer for the sale. How do those OEMs align with their dealers who already have their own stand-alone e-commerce platform? Data-Driven Decision Making Data is becoming an increasingly critical asset in the material handling industry, but dealers need better access to actionable insights from their OEMs to make informed, data-driven decisions. As the industry evolves, it’s not just about having data about having the right data in the hands of dealers to enhance decision-making and improve customer service. Having access to data on customer preferences and buying trends allows dealers to tailor their products and services more precisely, providing a personalized experience that fosters stronger customer relationships. Collaboration between OEMs and dealers, built on sharing robust, actionable data, is key to unlocking new revenue streams and staying ahead of customer needs. Sustainability and Environmental Responsibility Sustainability is no longer just a buzzword; it’s a driving force in the material handling industry. OEMs and dealers are pressured to reduce their environmental impact and adopt more sustainable practices. This includes everything from developing energy-efficient equipment to implementing eco-friendly service and maintenance practices. OEMs are increasingly designing products with sustainability in mind.  Dealers are crucial in promoting these products and educating customers on the environmental and financial benefits of choosing more sustainable options.  For example, by helping customers understand how the shift to electric can optimize fleet performance and sustainability, dealers are key drivers in accelerating the adoption of cleaner, more efficient technologies in the marketplace. Aftermarket Support Aftermarket support is becoming a more critical component of the OEM-dealer relationship. As equipment lifecycles lengthen and customers demand more reliable and cost-effective solutions, dealers are being called upon to provide a higher level of service and support throughout the equipment’s life. This trend drives OEMs to invest more in training and support for their dealer networks. By equipping dealers with the tools and knowledge they need to offer comprehensive aftermarket services, OEMs can ensure that their products continue to perform at a high level long after the initial sale. Rise of Direct Consumer Business Strategic partnerships between OEMs and dealers are becoming increasingly important, driven by the rising demand for direct-to-consumer (D2C) business. As consumers expect more direct and personalized interactions with manufacturers, OEMs, and dealers must collaborate closely to meet these demands. Traditionally, OEMs relied on their dealer networks for customer interactions, but the shift to D2C models is changing the landscape. Customers now expect direct engagement

Easiest way to make a sale? Top-Down Selling!

In every company, there is one person you are certain that can make a decision…The CEO. Why start anyplace else? The power of being introduced by the CEO down to the decision-maker is better than Christmas where Santa brings you everything on your list. The easiest way to make a sale? Top-Down Selling! What does the Guggenheim Museum (a classic modern art museum in NYC housed in a building designed by Frank Lloyd Wright) have in common with sales success? They recommend that you start at the top. The building is one big circular ramp. You take an elevator to the top floor and casually walk down eight inspiring floors. It’s the same with sales. Why do you start at the bottom and fight your way up through people who can’t decide and who’ll use their one ounce of power to make your life miserable? Take the elevator and start at the top, man. Don’t walk uphill! Where do you start? How high up the ladder do you dare go when making an initial approach to a prospect? The rule is… The higher you start, the more success you’re likely to meet. Getting there properly can be tricky. If you ask for the president, the owner, the boss, or the fearless leader, you may get through, but it will pay you to prepare before making a call to the CEO, especially if the prospect represents an important sale to you. Here is a four-step plan for contacting and scoring a CEO appointment: Get ready before you start. You only have one shot at it; make it your best one. Have a written game plan. Target 1 to 10 companies and define in writing what you want to accomplish and what it will take to get what you want. Be totally prepared to sell before you make the call. Have everything (sales pitch, concept, samples, daily planner) prepared and in front of you before you make the first call. Identify the leader (by name) and get as much information and characteristics as possible. Before you make the big call, contact underlings, associates, and associations for pertinent information. Use the right tactics when getting to and getting through… ASK FOR HELP. If you get the president’s secretary, get her name and use it. Be polite but firm. Be professional. Persist you can’t take the first no or rebuff. Get his name. You can try “How do you spell his last name?” but it’s embarrassing to hear Jones. If they won’t put you through the first time… Get his extension number Get the best time to call Find out when he usually arrives Find out when he takes lunch Find out who sets his calendar Find out if he leaves the building at lunch Find out when he leaves for the day An example: You call; the secretary says, “Mr. Jones is on vacation.” You say, “Wow, that’s great, Sally, where did he go?” Get anything personal you can (golf, sales meeting time, staff meeting time, important new product) and refer to it subtly when you get him or her on the phone. Make sure the person closest to the boss likes you. Take a chance on humor. Try this line: I know you actually run the company, but could I speak to the person who thinks they do? When you get him or her on the phone, shoot quickly. Have your opening line. Get right to the point. Make it compelling (your life’s best Power Question and statement). Ask for no more than five minutes (offer to be thrown out if you exceed five.) Have five comebacks if you are initially rebuffed. Notes about the CEO and the process… CEOs are hard to get to, harder to appoint, and easiest to sell. If the CEO is interested, he or she will take you by the hand and introduce you to the team member (underling) who will actually do the deal. The CEO always knows where to send you to get the job done. If they try to pawn you off without seeing you, it means you have not delivered a powerful enough message, and he’s not interested. The solution? Fix it. Keep trying until you get an appointment. If you start lower than the top, there is danger. No matter how powerful someone says they are or appears to be, they usually have to ask someone else for final approval EXCEPT THE CEO. They usually ask their secretary or administrative assistant if they like you. Get the picture? The benefits are obvious… The leader is always the decider. The CEO may not be directly involved in purchasing what you’re selling. Still, after a brief “interest generating” meeting, his or her introduction can be the difference between a sale and no sale. The power of being introduced by the CEO down to the decision-maker is as real as you would hope it is. Beware of the handoff: If the boss tries to hand you off too early (before the proposed five-minute meeting), don’t accept it. Say, “I appreciate your wanting to delegate, but I wanted to meet with you personally because this will impact your business significantly. I’d like five minutes to show you the highlights and get your reaction before I talk with anyone else in your firm. I know your time is valuable. If I take more than five minutes, you can throw me out.” Make your five-minute meeting the best you ever had. Have a proposal in writing. Have notes on everything you want to cover. Have a list of anticipated questions and answers. Have samples or something to demonstrate. Have credibility builders your best letter, something in print. Be early. Look as sharp as you’ve ever looked. Be knowledgeable and have answers in terms of how it works for the buyer. Be memorable. The thing that sets you apart, the thing that gets remembered, is what leads to the sale. You have one chance. Please don’t blow it by not following through. It’s

September 2024 Manufacturing Technology Orders jump as IMTS returns to Chicago

Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders (USMTO) report published by AMT – The Association For Manufacturing Technology, totaled $450.6 million in September 2024. These orders for metalworking machinery increased 24% from August 2024 and increased 14.6% over September 2023 orders. Year-to-date orders reached $3.35 billion, a decline of 7.7% compared to the first three quarters of 2023. Orders in September 2024 were at the highest level of the year and 5.1% above an average September. While this may be a good sign for an industry looking to find a bottom after nearly three years of decline, the optimism comes with a major caveat: orders were 9.1% lower than in an average IMTS September. Orders tend to peak for the year in September of even years, when IMTS – The International Manufacturing Technology Show, the largest manufacturing trade show in the Western Hemisphere, is held in Chicago. However, this year’s lower-than-average order level may be due to many show attendees planning for longer investment timelines. Contract machine shops, the largest customer segment for manufacturing technology orders, increased their orders to the highest level since March 2023. These job shops are a major bellwether for the wider industry, as sudden demand from this segment indicates that OEMs are increasing orders from them to meet additional capacity needs. If this demand remains elevated, it will typically lead to later investments across customer industries. The aerospace sector pulled back orders by nearly a third from August 2023. This is no surprise because the Boeing machinist strike caused major disruptions to the industry’s output beginning in the latter half of September 2024. Since the strike lasted for the entirety of October 2024, we can expect a similar drop-off in orders in next month’s report. New orders from airlines continued to roll in throughout the strike, and with the strike ending in November, the industry is positioned to finish the year with additional investments should capacity utilization quickly return to its pre-strike level. Orders from the automotive sector have lagged for most of 2024. This changed in September when manufacturers of automotive transmissions increased orders to their highest level since August 2023. This investment is not surprising, as automakers have been reassessing their outlook for the electric vehicle market throughout much of the year. Throughout most of 2024, manufacturers hesitated to invest in manufacturing technology due to concerns over heightened interest rates and November’s U.S. presidential election. In September, the Federal Reserve cut rates after a year of its “higher for longer” monetary strategy to reduce inflation. We may not see the effects of this development until the October 2024 data is released, and the effects of a further rate cut and the effects of the presidential election may not be seen until the November data is released. While these political and economic events may prove consequential to buying decisions, another major factor that could spur additional investment in the remaining few months of 2024 is the next step in the phase-out of the bonus depreciation allowance from the Tax Cut and Jobs Act of 2017. While investments in capital equipment are subject to 60% additional depreciation in 2024, that bonus will decrease to 40% in 2025. As the gap in orders between 2023 and 2024 has narrowed over the last two months, the reduction in headwinds puts the manufacturing technology industry in a position to end the year strong.

Why Operationalizing Strategy isn’t about Communicating Proclamations

Here’s a line in a corporate strategy document from a multi-billion-dollar client I was working with a few years ago: “We need to focus on better understanding the evolving needs of our current and future customers and tailor solutions to meet those needs.” What the hell? Isn’t that what the company should do as just a basic, daily operating principle? That’s not a strategy; it’s a proclamation. Sure, it sounds nice, important, and like something “we should focus on.” But it doesn’t tell employees how. How you’ll identify unique customer needs and how you’ll uniquely tailor those solutions. I mean, if this is a strategy, I don’t know why I haven’t gone to every single client and told them this. Likely, they’d laugh in my face and tell me, “No shit – thanks for that insight.” Any CEO who says this crap to their board should be reprimanded at least and fired at worst. They don’t know anything about strategy. And if people don’t know how to craft a strategy, they’ll fill in templates with the obvious and give the company no true direction or advantage. In short, if your strategy makes statements that no one would refute, you haven’t made any real strategic choices at all. On the flip side, being too constrained will limit the organization’s opportunity to explore new ideas despite having the means and capacity to pursue them. Here’s another excerpt from that same corporate strategy: “We will generate salesperson success through improved onboarding and team selling.” Okay, but are onboarding and team selling the only barriers to salesperson success? How is “salesperson success” defined? What about other ways to support salesperson success? What about other departments’ contributions to generating salesperson success, not just the sales team’s efforts? Moreover, what problem is “improved onboarding” solving? Is the problem getting new salespeople productive more quickly? Or is it reducing salesperson attrition? These have wildly different solutions. What problem is “team selling” solving? Is it getting departments to communicate more effectively? Or is it uncovering hidden customer needs? Or something else? Again, there are different solutions to different problems. Without a clear understanding of the problems being addressed, the “actions” defined in the strategy can unintentionally cause the organization to spend resources on the wrong things. About the Author: Andrea Belk Olson is a keynote speaker, author, differentiation strategist, behavioral scientist, and customer-centricity expert.As the CEO of Pragmadik, she helps organizations of all sizes, from small businesses to Fortune 500, and has served as an outside consultant for EY and McKinsey. Andrea is the author of three books, including her most recent, What To Ask: How To Learn What Customers Need but Don’t Tell You. She is a 4-time ADDY® award winner and host of the popular Customer Mission podcast. Her thoughts have been continually featured in news sources such as Chief Executive Magazine, Entrepreneur Magazine, Harvard Business Review, Rotman Magazine, World Economic Forum, and more. Andrea is a sought-after speaker at conferences and corporate events throughout the world. She is a visiting lecturer and startup coach at the University of Iowa, a TEDx presenter, and TEDx speaker coach. She is also an instructor at the University of Iowa Venture School.

Inaugural PTDA Foundation Employee and Student Scholarship Recipients announced

The PTDA Foundation recognizes the urgent need for skilled professionals in the power transmission and motion control (PT/MC) industry. As such, it is committed to helping PT/MC employers further the education of current and upcoming talent by introducing two new scholarship programs. “We developed the PTDA Foundation scholarships to promote the study of a power transmission or motion control-related field in engineering, technology, or business. The PTDA Foundation was pleased by the reception and the number of employee and student scholarship applications received for our inaugural year of this program,” explained Matt Pavlinsky, PTDA Foundation President. The employee scholarship provides recipients with $2,500 to continue their education for further advancement in their PT/MC career. The 2024 recipients are: Kylie Hester, Regal Rexnord Ohio University, master’s of Business Administration Tom Ley, NORD DRIVESYSTEMS Madison College, professional certification in Project Management Brian Malambwe, Regal Rexnord Purdue University, bachelor’s degree in Engineering Science Emily Soller, Regal Rexnord University of Wisconsin-Madison, master’s of Business Administration “This scholarship will further my career by giving me the tools necessary to best facilitate projects,” says Tom Ley of Regal Rexnord, employee scholarship recipient. “It will help me become a value-added employee and learn how to better interface with professionals. My Project Management Professional certification will also help me provide excellent customer service by providing on time deliverables to our customers.” The student scholarship provides recipients with $3,000 toward their education in a PT/MC-related field. The 2024 recipients are: Josh Bourbeau, Bismark State College Field of Study: Engineering Justin Christensen, University of Nebraska Kearney Field of Study: Supply Chain Management/Technical Sales David Dell, Adrian College/North Dakota University Field of Study: Mechanical Engineering, Physics Caden Palamar, Frostburg State University Field of Study: Mathematics, Engineering Ria Sharma, Texas A&M University Field of Study: Engineering “What interests me about supply chain management and technical sales is the customer engagement and unique perspectives you gain from the people you interact with,” says Justin Christensen, student scholarship recipient. “Power transmission and motion control not only affect communities, but it also affects the world. This scholarship not only helps me financially, as I’m a first-generation college student, but it’s a great confidence booster.” Read more about each recipient online at ptworkforce.org/scholarships. Applications for 2025 scholarships will be available in January. The PTDA Foundation, funded solely by donations, was founded in 1982. Its core purpose is to champion education, outreach, and research initiatives relevant to the PT/MC industry that enhance industry stakeholders’ knowledge and/or professionalism and productivity. The PTDA Foundation is a not-for-profit, tax-exempt 501(c)(3) corporation; contributions are tax-deductible to the full amount allowed by law. For more information, visit ptworkforce.org.

October 2024 Logistics Manager’s Index Report® LMI® at 58.9

Growth is INCREASING AT AN INCREASING RATE for: Warehousing Utilization, Transportation Capacity, Transportation Utilization, and Transportation Prices. Growth is INCREASING AT A DECREASING RATE for: Inventory Levels, Inventory Costs, Warehousing Capacity and Warehousing Prices The October Logistics Manager’s Index reads in at 58.9, up (+0.3) from September’s reading of and at its highest levels since September 2022. The overall index has now increased for eleven consecutive months, providing strong evidence that the logistics industry is back on solid footing. The clearest example of this is the jump in the expansion for Transportation Prices which were up (+5.7) to 64.1, which is the fastest rate of growth for this metric since May of 2022. Transportation Capacity was fairly consistent with last month, increasing very slightly (+0.8) to 50.8 and implying very minimal levels of growth. Interestingly, Transportation Capacity actually contracted in the first half of October (45.8) before expanding again later in the month (54.3). It will be interesting to see if capacity continues to loosen in November or if it moves back towards no change. It is possible that as Transportation Prices continue to rise more idle capacity will come off the sidelines to take advantage of the increased opportunity, leading to the somewhat counterintuitive situation that we now find ourselves in where both Transportation Prices and Capacity are increasing. By contrast, our three warehousing metrics have remained fairly stable as capacity grows at a steady rate (-0.1 to 55.8) and Warehousing Utilization (+1.9 to 62.9) and Warehousing Prices (-1.1 to 65.8) are relatively consistent with the changes observed in September. Underlying all of this is the continued expansion of Inventory Levels (-0.4 to 59.4) and Inventory Costs (-5.5 to 65.8). Breaking the streak of the last 6 months, more Inventory Level expansion is now coming from Downstream retailers (65.7) than from Upstream firms (56.3), suggesting that retailers are stocked up, and will likely continue to stock up, for the holiday shopping season. Researchers at Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report today. Results Overview The LMI score is a combination of eight unique components that make up the logistics industry, including: inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50.0 indicates that logistics is expanding; a reading below 50.0 is indicative of a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in October 2024. The LMI read in at 58.9 in October, which is up (+0.3) from September’s reading of 58.6. This is the fastest rate of expansion for the overall index since September of 2022. While this is the 25th consecutive reading below the all-time average of 61.8 for the overall metric, the current trajectory suggests that may not be the case for much longer. The sustained growth in the LMI over the last few months is reflected in the steady growth of the U.S. economy throughout Q3. The 2.8% growth was driven largely by consumer spending, which was up 3.7% year-over-year (up from the 2.8% y-o-y growth in Q2), as well as an 8.9% growth in exports[1]. The increased consumer spending in Q3 was likely one of the signals firms have relied on in their decisions to increase exports throughout the second half of 2024. Spending may have been driven by the continued deceleration of inflation, as the PCE was only up 1.5% year-over-year in Q3, which is the lowest quarterly rate of inflation growth in four years. Core PCE inflation, which excludes food and energy, read in at 2.2%. Drilling in to a more micro level, core September PCE was up 2.1%, down from the 2.7% growth seen a year ago and essentially in line with the Fed’s stated target of 2% annual growth[2]. There are also some indicators that inflation will continue slowing, as wholesale prices in the U.S. were unchanged month-over-month in September – standing in contrast to the 2.8% increase seen over the same period in 2023. Because wholesale price increases are generally passed down to retailers and consumers, this stabilization may represent some price relief yet to come[3]. In the last week of October, The Conference Board reading of U.S. consumer confidence jumped up to 108.7. This is an increase of 9.5-points which is the largest jump since March of 2021. The proportion of respondents anticipating a recession in the next year also fell to its lowest level since July of 2022 (which was the first month the question was included in the survey)[4]. It was not all positive news in October. The U.S. added only 12,000 jobs which was significantly below expectations and is down from previous months. Transportation and warehousing jobs remained essentially unchanged in October, which is not what one might expect heading into the traditional peak season[5]. This low number was at least partially due to strikes at Boeing, and the aftermath of the two hurricanes that hit the East Coast early in the month[6] and may have cost the economy somewhere around 100,000 jobs[7]. However, even with those anomalies, job growth has been slowing over the last three months, providing another indication that the level of economic growth in the U.S. has moved to a more sustainable level and that interest rates can continue to come down. A big reason for the slowing rates of inflation is how well supply chains are working right now. According to the San Francisco Fed, supply-driven inflation was negative in September, meaning that the abundance of goods such as fuel, consumables, and groceries drove prices down. This marks the third time in the past 10 readings that supply has been deflationary for the U.S. economy[8]. Taken altogether, the news on inflation has caused analysts to expect that the Fed will cut interest rates by another quarter point at their meeting

Plastics Industry Association to celebrate Recycling Week

The Plastics Industry Association (PLASTICS) will commemorate Recycling Week from November 11-15, reaffirming the industry’s continued commitment to promoting recycling efforts across the United States. This weeklong observance provides an important opportunity to spotlight the progress, innovations, and partnerships driving a circular economy for plastics. Throughout Recycling Week, PLASTICS will engage with industry stakeholders, policymakers, and the public to foster a recycling infrastructure that benefits both the environment and the economy. “Recycling Week reminds us that we all need to work together to increase recycling rates in America,” said PLASTICS president and CEO Matt Seaholm. “By collaborating across industries, communities, and governments, we can enhance recycling infrastructure, promote innovation in materials recovery, and ensure that valuable materials are returned to the economy rather than ending up in landfills.” “The plastics industry is committed to making plastic material more sustainable and supporting innovative recycling technologies that will improve recycling rates and ensure that plastics are repurposed effectively,” said PLASTICS Vice President of Sustainability, Patrick Krieger. “Recycling is not only possible; it’s essential to creating sustainable systems that support a circular economy.” Click here for more information on how PLASTICS will support Recycling Week.

PACK EXPO International 2024 delivers in size and substance

Largest industry show of the year provides dynamic solutions, engaging thought leadership, and impactful connections The largest packaging and processing show of the year, PACK EXPO International, wrapped up on November 6th with significant crowds throughout its four-day stint at McCormick Place in Chicago. Produced by PMMI, The Association for Packaging and Processing Technologies, the show brought together 48,000 attendees and 29,500 exhibitor personnel, reaching 77,500 in total attendance. International attendance increased by 19% over 2022. A record number of 2,700 exhibitors occupied 1.32 million net square feet of space, making PACK EXPO International the largest show in its history and the biggest event at McCormick Place this year. “PACK EXPO International 2024 has truly raised the bar for what an industry event can achieve,” says Jim Pittas, president and CEO of PMMI. This show has not only grown in scale but also in substance, attracting attendees and exhibitors from every corner of the industry. The connections  made here are invaluable, reinforcing PACK EXPO’s role as an unmatched platform for innovation, collaboration, and progress across the packaging and processing landscape.” The show has grown significantly year over year, with a 10% increase in exhibit space and a 24% increase in exhibitors from PACK EXPO International 2022. “All across the board, our numbers have increased. Exhibitors continue to showcase top innovations, and attendees are flocking to see the latest solutions to their manufacturing challenges,” says Laura Thompson, vice president of trade shows at PMMI. “It’s not just the size of our show which draws people in – it’s the quality.” With seven pavilions tailored to meet industry demands, new show features like Sustainability Central and Emerging Brands Central, and show resources to help attendees plan their days, attendees found value throughout the show. “I am a packaging engineer in the pharma space, and I love coming to PACK EXPO International to network and find new packaging materials – it’s an amazing show,” says Rachel Hark, packaging engineer at Catalent Pharma Solutions (Kansas City, MO). “I’m especially focused on finding packaging solutions that are also good for the earth. I have attended PACK EXPO shows about ten times and love the app! It has really helped me map out what I have to do while onsite and not feel overwhelmed.”   “We came to PACK EXPO International looking for conveyors and other solutions that can help improve our operations. The show is great. A lot of people and a lot of vendors! It’s awesome to see so much innovation all under one roof,” says Ali Buehler, an engineer at Hallmark (Leavenworth, KS). “This show is packed with great companies and innovation. If each person from my team walks away with just one great idea as a result of the inspiration we find here at PACK EXPO International, it will already have been worth it!” says Warren Pruitt, svp of global engineering at Colgate-Palmolive (Piscataway, NJ). It was not only large companies and long-time attendees who found the show inspiring. Several first-time attendees and emerging brands also gave it high marks. “This is our first time attending, and it’s been a really great show. It’s been great to see the equipment that’s here and see who’s differentiating across various areas,” says Michaela Belling, business development director, Plexus (Neenah, WI). “I’m most impressed with how well-organized everything is given the number of exhibitors and attendees,” says  Ernest Swindell, Owner of XCEL.  “We produce vegan and gluten free meal replacement bars and have been in business since 2021. We do everything by hand right now and we’re looking to scale up, so attending an event like this allows us to network with end users and the equipment manufacturers for our potential future co-manufacturers.” Exhibitors found the show rewarding, and it provided plenty of opportunities for sales leads. “PACK EXPO International is a very important packaging show for our business in the U.S. market and the automation industry,” says Jonathan Titterton, CEO of Coesia North America. “We appreciate the opportunity to discuss with our customers face-to-face how customized solutions are helping them with greater flexibility, efficiency, and productivity.” “This is our first time exhibiting at PACK EXPO International. We have a lot of customers at the show, and we’re seeing a ton of foot traffic,” says Conrad Lilleness, CEO of Conduit. “As a result, we already have several meetings booked. PACK EXPO International is the biggest show I’ve ever exhibited, with the right audience. We’re connecting with high-quality leads and plan to be at PACK EXPO Las Vegas next year.” “PACK EXPO International is a great show. We’ve been an exhibitor for many years. This year, we’ve met many of our target customers, connected with vendors, and met our goals for leads. The conversations we’re having are positive,” says John W. Ruyf, project planner, The Austin Company. “We choose to exhibit at the show for the brand awareness. The industry’s major suppliers and brands are all here. It’s a good place to connect with the people we work with. As long as the show is around, we’ll be at PACK EXPO International.” “We’re exhibiting at PACK EXPO International for the first time this year. We’ve received good interest. Our goal was to find the people interested in automating processes–not just exploring it–and we’ve had conversations with leads that are ready to automate,” says Matt Labinski, director of business development at Macrovey. Attendees were able to make valuable connections off the show floor as well with popular networking events like PACK gives BACK™, sponsored by Rockwell Automation, seeing nearly 3,000 attendees enjoy comedy from Nate Bargatze to benefit the PMMI Foundation. The popular Packaging & Processing Women’s Leadership Network (PPWLN) breakfast was captivating, with guest speaker Lisa Sun, founder & CEO of retail brand and lifestyle company GRAVITAS, giving an inspiring presentation. The Young Professionals Networking Reception, sponsored by Beckhoff Automation LLC at Flight Chicago, gave emerging leaders in packaging and processing a chance to build new relationships with their peers. “There is so much to take from the

Women In Trucking Association names 2024 Top Companies for Women to Work in Transportation

Redefining the Road magazine, the official magazine of the Women In Trucking Association (WIT), announced today the recipients of the 2024 “Top Companies for Women to Work in Transportation.” The magazine created the award in 2018 to support an element of WIT’s mission: to promote the accomplishments of companies that are focused on the employment of women in the trucking industry, according to Jennifer Hedrick, president and CEO of WIT. There are a number of characteristics that distinguish the companies recognized on this list, according to Brian Everett, publisher of Redefining the Road. These characteristics include corporate cultures that foster gender diversity; competitive compensation and benefits; flexible hours and work requirements; professional development opportunities; and career advancement opportunities. Qualified companies also must meet minimum requirements of what they report through the WIT Index, the industry barometer that benchmarks and measures the percentage of women who make up critical roles in transportation. The list includes a diverse range of trucking company types, including motor carriers, third-party logistics companies, and original equipment manufacturers. These companies will be recognized at the upcoming WIT Accelerate! Conference & Expo, which will be held Nov. 10-13 in Dallas, Texas. International Motors, formerly Navistar, is the sponsor of this year’s program. “Companies named to this prestigious list must demonstrate corporate attributes that are essential to any successful enterprise committed to gender diversity as part of their corporate strategy,” said Everett. “Qualifying companies to this list involves a two-step process. First, nominations by companies are carefully reviewed to ensure they meet a minimum threshold of qualifications. Then, the final ballot of companies is voted on by individuals in the industry. This is the seventh year of this prestigious recognition program, and it garnered a record number of more than 31,000 votes to identify and validate the final companies named to the list.” Companies generating the largest number of votes are named to the “Elite 30” of the 2024 Top Companies for Women to Work in Transportation. They are Air Products, ArcBest, Averitt, Cummins Inc., Daimler Truck North America, Epes Transport System, Estes Express Lines, FedEx, Great Dane, International Motors, J.B. Hunt Transport, Kenan Advantage Group, Landstar System, Old Dominion Freight Line, Penske Transportation Solutions, Peterbilt Motors Co., Premier Truck Group, Quality Carriers, Roehl Transport, RXO, Ryder System, Schneider, Sysco, The Goodyear Tire & Rubber Company, TravelCenters of America, UPS, Volvo Group North America, Walmart, WM, and XPO. Companies named to the overall 2024 Top Companies for Women to Work in Transportation list are 4Refuel, ADM Trucking, Aim Transportation Solutions, American Expediting Logistics, America’s Service Line, Ancora Training, Arrive Logistics, Arrow Truck Sales, Aurora Parts, Bay & Bay Transportation, Bennett Family of Companies, Bob’s Discount Furniture, Boyle Transportation, Brenny Transportation, Bridgestone Americas, Cargomatic, Carter Express, Centerline Drivers, Certified Express, CJ Logistics America, Clean Harbors, ContainerPort Group, Conversion Interactive Agency, Covenant Logistics Group, CrossCountry Freight Solutions, Crowley, Day & Ross, Dot Transportation, Dupré Logistics, Dynacraft (a PACCAR Company), Echo Global Logistics, Excargo Services, FStaff, Garner Trucking, Giltner Logistics, GLT Logistics, Great West Casualty Company, Halvor Lines, Highway Transport Logistics, Interstate Billing Service, ISAAC Instruments, J.J. Keller & Associates, JoyRide Logistics, JX Truck Center, Kenworth Truck Co., Koch Companies, Leonard’s Express, LGT Transport, Marathon Petroleum Co., May Trucking Co., McLeod Software, Michelin North America, MOTOR Information Systems, Musket Transport, National Carriers, National Shunt Service, New West Truck Centres, NFI Industries, OOIDA, Orica – USA, PACCAR Inc., PACCAR Leasing Co., PACCAR Parts, Palmer Trucks, Pennsy Supply, PepsiCo Foods North America, Polaris Transportation Group, Purolator, RE Garrison Trucking, Red Classic, Reliance Partners, Rihm Family Companies, Saia LTL Freight, Savage, Southeastern Freight Lines, Southwest International Trucks, Standard Logistics, Stericycle, Suburban Propane, Sun State International, Sunset Transportation, SWTO, TA Dedicated, The Erb Group, The Evans Network of Companies, The Pete Store, Thomas E. Keller Trucking, Total Transportation of MS, TRAC Intermodal, TRAFFIX, Trimac, Tri-National, Trinity Logistics, Triumph Financial, Truckstop, Tucker Freight Lines, Tyler Technologies, U.S. Xpress, Uber Freight, USAL, Venture Logistics, Werner Enterprises, Wilson Logistics, and Zonar Systems

Inaugural jobs report shows how industry careers deliver for America’s Railroaders

Today, the Association of American Railroads (AAR) released the “Rail Jobs Report: The Value and Opportunities in Railroading,” which provides a comprehensive review of the benefits and opportunities associated with freight rail careers. Featuring various employee testimonials, the report spotlights railroaders throughout the industry with stories of advancement, family legacy, and career impact. “Railroaders are the lifeblood that powers our industry and supports every facet of the economy,” said AAR President and CEO Ian Jefferies. “Rail work is not only a source of pride; it is a pathway to stability, growth, and opportunity that often spans generations. Combining data and employee testimonials, this report demonstrates the value of a railroading job – and the reasons why so many railroaders turn these jobs into careers.” The jobs report features statistics that distinguish freight rail jobs from those across other industries, highlighting railroading’s strong wages, world-class benefits, and hundreds of career paths and advancement opportunities: The median tenure of railroad employees is 13 years (compared to 3.9 years for other private sector workers). The average Class I railroad employee’s annual pay and benefits package is valued from $135,000 to almost $190,000. Effective Jan. 1, 2025, unionized freight rail employees’ monthly health care premiums will decrease by more than 10%, from $309.21 to $277.54 (compared to the national average monthly premium of more than $500 for employer-provided family coverage). Career railroaders (those 60+ who have served at least 30 years) receive more than two times as much retirement income as the average Social Security recipient. Veterans account for about 1 in 6 rail employees. Railroading isn’t just a job; it’s one of the best careers in industrial America. Learn more about the industry’s commitment to competitive compensation, robust benefits, and a strong focus on safety and professional development in the “Rail Jobs Report: The Value and Opportunities in Railroading.”

American Staffing Association names 2025 Board of Directors Officers

Today, the American Staffing Association announced its newly elected officers for the 2025 board of directors. The board voted on the leaders during the association’s annual Staffing World® convention and expo, which is taking place this week in Nashville, TN. The 2025 ASA board officers are: Chair: Janette Marx, Airswift First Vice Chair: Tom Gimbel, LaSalle Network Second Vice Chair: Jeff Bowling, Four Piers Advisors Treasurer: Ken Taunton, CSC, The Royster Group Secretary: Dana Baughns, Allegis Group Immediate Past Chair: Joanie Bily, Employbridge At the annual membership meeting, ASA members elected the following board members for three-year board terms: Andrea Brenholz, ATR International W. Benjamin “Ben” Elliott, Randstad Tom Gimbel, LaSalle Network Karenjo Goodwin, Exact Staff Inc. Ranjini Poddar, Artech LLC Mark Toth, CSP, ManpowerGroup Steve Wehn, AMN Healthcare DeLibra Wesley, National Recruiting Consultants Other directors currently serving on the board include Threase Baker, TSC, CSP, Abbtech Professional Resources, Inc.; Jeffrey S. Burnett, CSP, Labor Finders International Inc.; James A. Essey, CSP, TemPositions Group of Cos.; Jeff Harris, Workforce Unlimited; Jason Leverant, TSC, CSP, CSC, CHP, AtWork Group; Laura MacNeel, Aya Healthcare; Kelly McCreight, CSP, Hamilton-Ryker; Robin Mee, MeeDerby; Peter W. Quigley, Kelly; and Joyce Russell, Adecco Group US Foundation. “I’m deeply honored to have the opportunity to give back to the staffing industry through my role as chair of the ASA board,” Marx said. “Along with my colleagues, we’re excited to ensure our industry continues to innovate and lead the way in the labor market and the economy.” “The world of work and recruiting is undergoing an era of transformative change. Our association is fortunate to have forward-looking leaders who will advance the interests of the staffing, recruiting, and talent solutions industry in the coming year,” said Richard Wahlquist, chief executive officer of ASA. “Under Janette’s leadership, ASA and the board of directors will continue to play a key role in shaping the future of our industry and the world of work.” The complete list of ASA board members can be found at americanstaffing.net.

Sales Engineering Co. welcomes Derek Anderson as Territory Sales Manager for New England

Sales Engineering Co., a manufacturers’ representative in the New England electronics market, has announced Derek Anderson’s appointment as New England’s new Territory Sales Manager. With over 28 years of sales leadership experience and a robust background in the electronics and semiconductor industries, Derek drives growth and strengthens partnerships across the region. Derek, a Worcester Polytechnic Institute graduate with a degree in electrical engineering and an MBA from the Olin School at Babson College, has led sales teams on both regional and national scales. His proven track record in sales strategy and team development will enhance Sale Engineering’s offerings to its technology partners and clients. “Derek Anderson’s wealth of experience and strategic vision make him a tremendous asset to our team,” said Tim Kilfoil, president of JF Kilfoil, the parent company of Sales Engineering. “His expertise will be invaluable as we continue to expand our reach and strengthen our offerings to our technology partners, customers, and distribution partners. We are thrilled to have him on board and are confident in the positive impact he will bring.” Derek will lead and mentor a dynamic team of manufacturing partners and account managers in his new role. He will focus on matching customers with Sales Engineering’s trusted supplier partners and their value-added technology solutions. His leadership is expected to foster continued growth and cultivate strong relationships with Sales Engineering’s customers and distribution networks.

August 2024 U.S. cutting tool orders total $209.3 million

Shipments of cutting tools, measured by the Cutting Tool Market Report compiled in a collaboration between AMT and USCTI, totaled $209.3 million in August 2024. Orders increased 9.1% from July 2024 but were down 4.5% from August 2023. Shipments of cutting tools, measured by the Cutting Tool Market Report compiled in a collaboration between AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI), totaled $209.3 million in August 2024. Orders increased 9.1% from July 2024 but were down 4.5% from August 2023. Year-to-date shipments totaled $1.67 billion, up 1.5% from shipments made in the first eight months of 2023. The year-to-date growth rate has declined every month since April 2024. “U.S. cutting tool orders have hit significant headwinds as we move into the fourth quarter of 2024,” said Steve Boyer, president of USCTI. “We saw drop-offs in orders for two of the last three months of the third quarter of this year compared to last year. Challenges continue with work stoppages in the aerospace sector. Instability in world events is also significantly impairing market confidence as we finish out 2024. Defense spending continues to be strong, while other markets have shown some stagnation. Early expectations for continued growth in 2025 originally showed promise, but a lackluster 2025 is probably more realistic with so many factors in flux.” Bret Tayne, president of Everede Tool Company, said: “Sales of industrial metal cutting tools seems to have plateaued. We can look past some of the ‘noise’ by focusing on the 12-month moving average, and that is flat. This conclusion seems to be consistent with what we read about the broader economy. We are at an inflection point. Some macro data points to a recession and other data indicates we may avoid it. From the perspective of our industry, it will be interesting to see if we achieve any sustainable momentum from IMTS, which took place in September.” IMTS – The International Manufacturing Technology Show was held Sept. 9-14 in Chicago. A biennial event produced by AMT, IMTS is the largest manufacturing trade show in the Western Hemisphere and regularly provides a boost to manufacturing technology and machine tool orders across all sectors. The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production, and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in the manufacturing process, the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels.

Getting started with AI-Powered Chatbots

You’ve heard the buzz around Generative AI-powered chatbots like ChatGPT, Claude, and Gemini. But are they worth the hype? Absolutely. The key to success is learning how to use these tools effectively. With the correct instruction, chatbots can produce detailed, relevant, and tailored results to your specific requirements. No technology expertise is required to become a pro – just a curiosity for exploration. It would be best to learn how to “prompt,” which means providing good instructions to the chatbot, so you get more valuable responses and output. Start with basic experimentation to understand where AI works well (and not well). From there, you can explore how to integrate AI into your workflows to tackle more complex needs. This article will explore using chatbots and provide tips for effective prompting. Where should you start? Many robust use cases are simple and require no prior experience or specific expertise. Start by asking your chatbot the same questions you’d ask a search engine – in many cases, you’ll find the responses more useful. Chatbots can provide personalized, context-aware answers tailored to your criteria. Plus, follow-up questions help refine responses to get exactly what you need. For instance, chatbots can quickly propose a customized travel itinerary, saving you the hassle of researching online. Try out this prompt: I’m flying from [home city] to [destination city] from [start date] to [end date] and want to stay near [insert landmark or area]. I prefer a direct flight and to stay in [insert hotel preference, e.g., preferred hotel chain], but I’m open to alternatives if the price difference is more than [$XX] for the flight or [$XX]/night for the hotel. Please recommend an itinerary, including the best flight times. More prompt ideas are provided at the end of this article. Tips for prompting Chatbots Chatbots respond to “prompts”—instructions or questions you provide. Here are a few tips for writing effective prompts: Speak naturally Ask questions as if you’re talking to a person. This makes it easier for the chatbot to understand and respond accurately. And don’t worry overly about spelling; it will figure it out. Be clear and specific Treat the chatbot like a new employee who needs clear instructions. The more specific you are, the better the response. Example: Instead of “Plan a meeting,” try to “Create an agenda for a 30-minute meeting to discuss quarterly sales targets.” Utilize follow-ups Think of chatbot interaction as a conversation. If the first response isn’t quite right, refine it with follow-up prompts or ask it to try again. Example: “Incorporate a 10-minute Q&A session at the end of the meeting” or “Your response is not to my liking; try again.” Set context To get better responses, tell the chatbot what kind of role, tone, or personality you want it to have. Example: Instead of “Create a marketing campaign,” say, “You are a senior marketing director. Create a professional B2B marketing campaign for warehousing and logistics.” Specify the desired output Let the chatbot know how you want the information presented. It can provide summaries, bullet points, tables, or even images. Example: Instead of “Tell me about the project,” try “Give me a bullet-point summary of the project timeline.” Attach relevant documents Quickly and effectively analyze files, especially documents and PDFs, by attaching them to your prompt. Example: Instead of manually analyzing a customer or vendor contract, attach it to the chatbot and use this prompt: “Summarize the key terms, pricing, and product details in the attached contracts, and provide the output in a bullet form.” Experiment with your scenarios and prompts; the more you try different ways, the better you will get. A reminder While chatbots are powerful, be cautious with data confidentiality. Unless you implement the enterprise version of these chatbots, your data and chat history may be used to train AI models. Final thoughts AI-powered tools, like chatbots, have the potential to deliver efficiency, personalization, and insights at an unprecedented scale. However, success with AI isn’t just about the tools themselves. It starts with understanding how to apply these technologies effectively. Focus on small, practical use cases as you begin experimenting with AI. These could include simple communication, generating content, or automating routine tasks. Over time, this knowledge will open the door to more complex applications, such as predictive analytics or customer service automation. Your business will thrive in the new AI-driven landscape by starting small, experimenting thoughtfully, and staying informed about AI’s evolving capabilities. If you have any questions or need help getting started, please contact me at ai_automation@connorgp.com. You can also connect with me on LinkedIn for the latest trends and insights in AI and automation. Useful prompting tool ChatGPT Prompting Guide (Ruben Hassid, LinkedIn) Example prompts      To get started, here are some example prompts you can try today. Update the wording in [brackets] according to your needs and enter them into your chatbot of choice: Writing an Email “Write an email as a [job title] to [name], informing them of [topic]. Use a [desired tone].” Completed Example: “Write an email to John as an Account Manager, informing them about the XAR32, a new forklift that your company is offering, and to offer an on-site demo at their warehouse. Use a warm yet professional tone.” Prepare a “How-To” Guide “You are an experienced [job title]. Give me best practices and a detailed how-to guide on [insert topic]. The guide should cover [insert desired sections].” Example: “You are an experienced Warehouse Manager. Give me best practices and a detailed how-to guide on warehouse layout optimization for perishable food products. The guide should cover safety protocols and tips for energy efficiency.” Contract Review Prompt Attach the contract you’d like to review for a thorough contract analysis. Specify the key terms and clauses you want highlighted. The chatbot can also point out any unusual or non-standard terms for this type of agreement. “Review the attached [contract type] contract and highlight key terms such as [insert specific terms, e.g., payment terms, liability clauses]. Additionally, identify any clauses

128 promising Industrial Projects on the horizon for September 2024

Industrial SalesLeads released its latest MiR Report for September 2024 results for the Industrial Manufacturing industry’s planned capital project spending. This comprehensive report tracks North American industrial capital project activities, encompassing facility expansions, new plant constructions, and significant equipment modernization projects. The data within the report serves as a valuable resource for businesses seeking insights into industrial investment trends and strategic decision-making. Research confirms 128 new projects, a notable decline from August, which reported 168 projects in the Industrial Manufacturing sector. The following are selected highlights of the new Industrial Manufacturing industry construction news.   Industrial Manufacturing – By Project Type Manufacturing/Production Facilities – 100 New Projects Distribution and Industrial Warehouse – 75 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 35 New Projects Expansion – 36 New Projects Renovations/Equipment Upgrades – 54 New Projects Plant Closings – 15 New Projects Industrial Manufacturing – By Project Location (Top 10 States) Indiana – 11 Michigan – 9 Ohio – 9 Texas – 8 Tennessee – 7 Ontario – 6 Pennsylvania – 6 Virginia – 6 Louisiana – 5 New York – 5 Largest Planned Project In September, our research team identified 16 new industrial manufacturing facility construction projects with an estimated value of $100 million or more. Highland Materials, Inc., which owns the largest project, plans to invest $1.4 billion in constructing a 1.2 million-square-foot manufacturing facility in Rocky Mount, NC. The company is currently seeking approval for the project. Top 10 Tracked Industrial Manufacturing Projects TENNESSEE: Specialty silicon product manufacturer plans to invest $1 billion in constructing a 1.2 million-square-foot manufacturing facility in SURGOINSVILLE, TN. They are seeking approval for the project, which is expected to start in 2026.  NORTH CAROLINA: A titanium manufacturer plans to invest $868 million in constructing a 500,000-square-foot manufacturing facility at 557 Bethune Dr. in FAYETTEVILLE, NC. They are seeking approval for the project, which is slated for completion in 2027. KENTUCKY: Battery Manufacturing Company is seeking approval for a $712 million project to construct a manufacturing facility in SHELBYVILLE, KY. INDIANA: Solar panel manufacturer is planning to invest $500 million in the renovation and equipment upgrades of a 781,000-SF—manufacturing and warehouse facility at 5880 W. Indiana 28 in TIPTON, IN. Construction is expected to start early in 2025, with completion slated for fall 2026. MICHIGAN: Automotive manufacturers plan to invest $400 million in renovations and equipment upgrades at their manufacturing facilities in STERLING HEIGHTS, MI, WARREN, MI, and DUNDEE, MI. It is currently seeking approval for the project. PENNSYLVANIA: A plastic recycling service provider is seeking approval for a $183 million project to construct a warehouse and processing facility in ERIE, PA. MICHIGAN: An EV battery manufacturer is planning to invest $175 million in constructing a manufacturing facility in Flint, MI, and is seeking approval for the project. WEST VIRGINIA: A battery technology company plans to invest $150 million in expanding its manufacturing facility in WEIRTON, WV. It is currently seeking approval for the project.  ILLINOIS: A pharmaceutical company plans to invest $146 million to expand its manufacturing, processing, and distribution campus in ROCKFORD, IL, by 545,000 SF. Completion is slated for Fall 2025. MICHIGAN: Battery materials manufacturing company plans to invest $125 million in constructing a manufacturing facility at 4925 Evanston Ave. in EGELSTON TOWNSHIP, MI. They are currently seeking approval for the project, which is expected to start in early 2026. About Industrial SalesLeads, Inc. Since 1959, Industrial SalesLeads, based in Jacksonville, FL, has been a leader in delivering industrial capital project intelligence and prospecting services for sales and marketing teams to ensure a predictable and scalable pipeline. Our Industrial Market Intelligence, IMI, identifies timely insights on companies planning significant capital investments such as new construction, expansion, relocation, equipment modernization, and plant closings in industrial facilities. The Outsourced Prospecting Services, an extension to your sales team, is designed to drive growth with qualified meetings and appointments for your internal sales team. Visit us at salesleadsinc.com. Each month, our team provides hundreds of industrial reports within a variety of industries.

Tune up time

It is time once again to figure out how you did compared to last year, against budget, against cash flow budgets, and against your peers. We review the overall results and then dive into each department. Finally, you review personnel in each department in terms of “sales per employee,” gross profit per employee, and then sales and gross profits per employee for each department. Good for you if you find yourself in the top 25 % of the peer group. If you did not, there is a ton of $ available waiting for you and your team to harvest them. And really, there is no excuse not to make strides every year to close the gap between the Top 25 and your results. Get the SEC documents from the public companies in your SIC code to make this study even more interesting. They make it interesting reading when they explain market fluctuations, supply chain issues, changes in customer demands and expectations, and the sales per employee stats that most of them provide. Your internal review and a public company financial report would be great topics for your 2025 strategic planning meeting. Many companies also have their “ANNUAL” meeting around this time to discuss the current year against the planned expectations and to approve the plan for the following year. The Board typically approves cap-X costs and related financing decisions at this meeting. A critical topic for the remainder of this year and next year will be inflation and how the fed rate reduction affected inflation going forward. The essential points are as follows: REDUCING INFLATION DOES NOT MEAN PRICES DECLINE. IT MEANS THE ANNUAL INCREASE WAS REDUCED. AND THERE STILL IS INFLATION BECAUSE THE GOAL WAS TO REDUCE IT TO 2% PER YEAR. SO, YOU STILL HAVE INFLATED COSTS, BUT THEY ARE NOT INCREASING AS THEY HAVE IN THE LAST FOUR YEARS. THE COST OF PRODUCTS COULD DECREASE BECAUSE OF DEMAND AND SUPPLY ISSUES. LET’S ASSUME YOU AND YOUR OEM ARE STUCK WITH UNITS THAT COST OUT AT THE HIGH END OF THE RANGE. IF YOU NEED TO TAKE A HIT ON THESE UNITS TO MOVE THEM, THEN THERE WILL BE A PRICE REDUCTION UNTIL THE MARKET IS IN BALANCE ONCE AGAIN. BUT THIS DOES NOT MEAN THE PRICES WILL FALL BY ANY SUBSTANTIAL AMOUNT AND STAY THAT WAY. PRICE REDUCTIONS, TO ANY GREAT EXTENT, WILL CAUSE DEFLATION, WHERE PRICES WILL, IN FACT, DECREASE UNTIL THE DEMAND EQUATION IS IN BALANCE AGAIN. DEFLATION IS USUALLY CAUSED BY RECESSIONS OR DEPRESSIONS, WHICH PRODUCES A WHOLE OTHER SET OF ISSUES TO DEAL WITH. IN THIS DAY AND AGE, AN OEM OR DEALER CAN PRODUCE DEFLATION AND, AS A RESULT, BE MORE COMPETITIVE IN THEIR MARKETS. YOU CAN ACHIEVE THIS GOAL BY DEVELOPING A PROGRAM COMPRISED OF INNOVATION-PRODUCTIVITY IMPROVEMENT- AND AUTOMATION. BY REDUCING COSTS AND SPEEDING UP PROCESSING A COMPANY CAN OFFER MORE EFFECTIVE PRICES AND CREATE THEIR OWN DEFLATION, WHICH FLOATS DOWN TO CUSTOMERS. One last point on inflation: It contains two indices: one for products and services and one for payroll. The payroll results may not decrease as much because of a shortage of help in most industries. Keep this in mind when planning for 2025. The experts are expecting payroll increases in the 3.5-4.0% range. Another reason to do more with less is to keep costs in check. Your financial arrangements also need review. Bank terms and rates to see if you can renegotiate your loans to reduce interest costs or to spread out payments in some way to reduce cash outflow. I would not hesitate to shop my loan package to reduce my rate and/or to push out the payment schedule. And what about customer financing? Customers would also like to reduce their rates and spread out the payments. Can you or your OEM do anything to reduce their cash flow burden? Insurance has also been costly. Shop your program with at least three carriers. Work with an experienced broker who can read and suggest upgrades or changes needed in the policy. Please pay special attention to cyber coverage because it will require internal upgrades on your part before it begins. I would ask my IT folks to review the Cyber policy to ascertain that you can provide the IT coverage required to support and protect your systems and information. And how can any tune-up not discuss local, state, and Federal taxes? I suggest you take advantage of the current tax programs before year end because many of the current breaks are set to expire in 25. And it goes without saying that customers should consider doing the same if it fits into their current financial plan. Have your tax folks make your sales department knowledgeable about these opportunities. There is, of course, a possibility that the current tax breaks will be extended, but that will depend on who wins in November. You have heard a lot about FREE CASH FLOW, which is next month’s topic. I would like to know if any of you have had the opportunity to discuss AI, etc., with Connor Group. If so, please let me know how it went. HAPPY PLANNING! About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993.  E-mail editorial@mhwmag.com to contact Garry.