Alta Equipment Group appoints Jeff Hoover as Chief Legal Officer and General Counsel
Alta Equipment Group Inc., a provider of premium material handling, construction, and environmental processing equipment, appointed Jeff Hoover as Chief Legal Officer and General Counsel effective immediately. Hoover came to Alta via Dinsmore & Shohl LLP, a national law firm, and before that Howard & Howard Attorneys, PLLC where he was a Partner at both firms and specialized in mergers and acquisitions, corporate finance, commercial lending, and real estate transactions. Hoover holds a Master’s of Business Administration in Finance from Eastern Michigan University and a Doctorate of Law from Cooley Law School. As Chief Legal Officer, Hoover will report to Alta’s Chief Executive Officer, Ryan Greenawalt, and take on the role of leading and coordinating Alta’s legal affairs, corporate governance, and Board relations, as well as being a business partner to our operational leaders from an administrative and compliance perspective day to day. “We are pleased to announce the appointment of Jeff Hoover as Chief Legal Officer and General Counsel. In Jeff’s previous roles, he was an integral partner to Alta where he supported our growth and development since 2016 as external legal counsel. Jeff has tremendous knowledge of Alta, our history, how we do business, and most importantly our culture,” said Ryan Greenawalt, Chief Executive Officer. “I look forward to the contributions he will make as part of the Alta family.” “I am excited to step into my new role as Chief Legal Officer and General Counsel and look forward to using my experience to continue to support the growth and success of Alta. I am thrilled to be joining the Alta family,” said Hoover.
136 new Industrial Manufacturing Planned Industrial projects to finish out December 2023
Industrial SalesLeads has announced the December 2023 results for the new planned capital project spending report for the Industrial Manufacturing industry. The Firm tracks North American planned industrial capital project activity; including facility expansions, new plant construction and significant equipment modernization projects. Research confirms 136 new projects a drop from 161 in both October and November in the Industrial Manufacturing sector. The following are selected highlights on new Industrial Manufacturing industry construction news. Industrial Manufacturing – By Project Type Manufacturing/Production Facilities – 119 New Projects Distribution and Industrial Warehouse – 80 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 42 New Projects Expansion – 38 New Projects Renovations/Equipment Upgrades – 63 New Projects Plant Closings – 11 New Projects Industrial Manufacturing – By Project Location (Top 10 States) Michigan – 13 Indiana – 9 California – 8 New York – 8 North Carolina – 6 Ohio – 6 South Carolina – 6 Texas – 6 Ontario – 5 Tennessee – 5 Largest Planned Project During the month of December, our research team identified 12 new Industrial Manufacturing facility construction projects with an estimated value of $100 million or more. The largest project is owned by Powerco Canada Inc., who is planning to invest $5 billion for the construction of a manufacturing facility in ST. THOMAS, ON. They have recently received approval for the project. Completion is slated for 2027. Top 10 Tracked Industrial Manufacturing Projects ARIZONA: Semiconductor MFR. is planning to invest $2 billion for the construction of a 500,000 sf manufacturing facility in PEORIA, AZ. They are currently seeking approval for the project. TEXAS: Solar panel MFR. is planning to invest $1 billion for the construction of a manufacturing facility in BROOKSHIRE, TX. They are currently seeking approval for the project. Completion is slated for late 2024. SOUTH CAROLINA: EV battery MFR. is planning to invest an additional $810 million for the expansion of their currently under-construction manufacturing facility in FLORENCE, SC. Completion is slated for 2026. ONTARIO: Tire MFR. is planning to invest $550 million for the expansion of their manufacturing facility at 388 Goodyear Rd. in NAPANEE, ON by 420,000 SF. They are currently seeking approval for the project. SOUTH CAROLINA: Magnetic product MFR. is planning to invest $500 million for the construction of a manufacturing facility in SUMTER, SC. They have recently received approval for the project. Completion is slated for Fall 2025. CALIFORNIA: Mobility technology innovation center is planning to invest $300 million for the construction of a 200,000 SF laboratory and manufacturing facility on Ramona Ave. in SACRAMENTO, CA. They are currently seeking approval for the project. They will relocate their operations upon completion. ARIZONA: Semiconductor equipment MFR. is planning to invest $300 million for the construction of a 250,000 sf manufacturing, warehouse, laboratory, and office facility in SCOTTSDALE, AZ. They will relocate their operations upon completion in 2026. OHIO: Biotechnology company is planning to invest $229 million for the expansion, renovations, and equipment upgrades on their processing facility in HAMILTON, OH. They are currently seeking approval for the project. ONTARIO: Medical supplies MFR. is planning to invest $165 million for the construction of a 140,000 SF manufacturing facility on Bonder Road in LONDON, ON. They are currently seeking approval for the project. Completion is slated for 2026. OREGON: Paper product MFR. is planning to invest $150 million for the renovation and equipment upgrades on their manufacturing facility in HALSEY, OR. Completion is slated for 2025. About Industrial SalesLeads, Inc. Since 1959, Industrial SalesLeads, based in Jacksonville, FL is 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 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.
Does CRM really “help” make the sale? Depends on which one you use
Are you using some form of database management to “control” your customer data? Customer Relationship Management or CRM has been around in one form or another for nearly 30 years. But in the last five years it’s become more sophisticated, more of a sales necessity, and a lot more competitive. The main multiple-user programs include Salesforce, Pipedrive, Zoho, Oracle, and Hubspot. Since I am often asked “which one” I recommend, I think it’s best to develop criteria for what I feel needs to be included (you should do the same) and go from there. Logging on to your CRM application gets you to your opening desktop dashboard. At a minimum there has to be an eyeful of “now.” You want to see hot prospects, top proposals, a forecast, their report card, and today’s appointments. You want a quick path to contacts, emails, and calendar – and maybe a motivational quote. From there, it should only be one click to new leads, current accounts, opportunity accounts, activity lists, phone book, email, contacts, tasks, a daily to-do report, a won-loss report, and/or a lead analysis report. And just a double click away from account detail, key issues, key people, and a sales plan to close each deal. ALERT: CRM is MISSING sales coaching. Coaching helps the salesperson make the sale, either internally with product knowledge, or externally with sales answers by means of online coaching when you demand it. If I’m a salesperson using CRM, and I am, I want to have access to better questions, a way to follow-up, pathways to decision makers, strategies to close my sales AS I progress through each sales cycle, and a way to build a relationship once a sale is made. Monitoring a sales cycle is one thing – that’s what databases are designed to do. But assisting salespeople with each step in the sales cycle is the missing element. Now with the domination of e-mail communication to single and multiple customers, PDF proposals, video chat and AI, a new dynamic has emerged in CRM: Monitoring all social and face-to-face activity. REALITY: The tragic flaw in CRM is that salespeople (maybe even you) avoid entering sales data even though it could help them. Yes, salespeople are reluctant to enter data for one silly reason or another, pain in the butt, EVEN though it’s for their own good. Me? I look for what I need and the user-friendliness of the application. Me? I look for what I use every day and how efficient it is. That’s why I chose Pipedrive, ease of use (I programmed it myself to my sales cycle), and amazing sales oriented and sales friendly functions. You? Do the same as I do. Figure out what’s best for you and do that. BUT do something. If you don’t have a CRM application in your life, get one. If you don’t, you’ll find yourself at a technological and informational disadvantage. And in sales, that’s no place to be. If you want the Pipedrive info and a free 30-day demo, go to www.gitomer.com/crm and get the offer. About the Author: Jeffrey Gitomer is the author of seventeen best-selling books including The Sales Bible and The Little Red Book of Selling. All of Jeffrey’s sales and personal development training programs, including his coaching program and a sales skills assessment, are available at www.gitomer.com. Gitomer’s NEW 3-day sales certification program is now available LIVE – go to www.GitomerTraining.com/coach. For information about keynote speaking, customized training and seminars visit www.gitomer.com, or email Jeffrey personally at helpme@gitomer.com.
Screwy numbers
I spend a good couple of hours each day reviewing stock markets and other investment commentary. Always loved investment adventures and even produced my MBA thesis discussing the merits associated with distressed long-term bonds. And guess what? For the period I was covering returns from buying distressed long-term bonds produced above average returns if you select bonds of companies that have a good chance of covering their debt service and paying off the bond on the original due date. As it turns out there is a service available to find the “good” distressed bonds if you are interested. During my daily review of the market, I keep hearing about this Company and that Company reporting earnings for the month or quarter. It seems the most important number is the sales number and how sales have increased consistently over the last couple of years. Thinking about that I say to myself, “If inflation hit 30% for inventory and other operating costs should I not have an increase in sales, even if unit sales took a hit?” HHHHHMMMM? Next question is: If sales increased, did I make more money? Next question is: How about additional cash flow? Considering that every $ of increased sales requires more capital to support it, how did I make out having a larger floor plan and higher AP balances. It is no secret that you need to spend money before you collect money, and thus the increase is working capital to cover the spread. Next Question is: Even if you believe you covered the price increases for new and used equipment, did you Increase margins enough to cover increases in operating expenses, payroll, and interest expense. It is also a time to compare actual activity along with sales dollars: Did you sell more new units and maintain margins? Did you sell more used units and maintain margins? Did you sell more parts and maintain margins? Did you sell more hours and maintain margins? Was your overall required gross margin attained? Does the total gross margin cover total operating expenses including interest? And when you consider that last question about covering total operating expenses and interest you must understand that this is a moving target since the monthly inflation rates keep jumping around, which means pricing may need to be adjusted throughout the year as expenses keep increasing. For example, if you have new units costing $20000 in your inventory and then received a delivery with a cost of $26000 and your goal is a minimum 13% gross margin on the sale, the selling price on the $20000 unit would be $23000 with a $3000 margin, with the newer more expensive unit requiring a $29900 price and $3887 margin at 13%. All in all, the cost, sales and gross profit all increased 30%, leaving you with an additional $887, some of which will cover increased expenses such as floor plan interest, insurance as well as contribute to expense increased operating expenses. You must go through this exercise for each profit silo to determine if the overall results and better than the previous year as well as the current year budget. If you are not careful this could turn into a full-time job. Maybe you can get AI to help you. If you are like the car dealers many of you are sitting on these high price units you ordered that you eventually received a year late, leaving you wonder what you are going to do with them. This is a BIG DEAL because Sally down the street avoided the high price unit problems and is now ready to sell units for less than you can. Now what? Do we give up the business? Do we take a hit on the sales? Do we buy Sally out? I guess you have some play with the pricing but wish to avoid giving up that $887 if you can help it. Do these enough times and the margin for the year will turn downward. And considering that new and used sales drive aftermarket sales, you do have to be careful not to upset the apple cart. What you do not want to do is sit on these higher priced units. The pricing will only get worse as time moves on. And I assure you that your banker will eventually ask you to pay down the units to an acceptable collateral number. So, it is better to find some kind of solution now to avoid a hit to the cash account. What to think about: Are there dealers who need inventory you can sell to at your cost to get it off your balance sheet? Can you work out a rental program using these units where you can transfer part of the risk to a future period? Can you sell off rental assets that are priced at the current levels and replace them with the new units to rent them out to pay down the units to a value where you can be competitive with pricing? Can you get the OEM to help? You also must consider these same issues with your parts department. You have parts at the old low cost mixed in with a good percentage of newer parts at the higher prices. If you’re using the first-in first-out method to account for parts costs, your current sales and going to look good but it will not look so good when the lower priced units are gone leaving you with a parts cost 30% higher when we are probably in a recession where business is slowing up at the same time. And consider that your customers will not what to pay the “higher” parts costs. It’s funny how they always have a handle on this sort of transaction. And if the economy does slow down with inflation following along, it probably means we are in a recession where you will start hearing the word “deflation” caused by vendors trying to unload excess inventory. Will it happen in your industry….
Registration opens for ASSP’s Safety 2024 in Denver
The American Society of Safety Professionals (ASSP) has opened registration for its signature safety education event, held two months later than usual this year. The Safety 2024 Professional Development Conference and Exposition is set for Wednesday, Aug. 7, to Friday, Aug. 9, at the Colorado Convention Center in Denver. Safety 2024 offers workplace safety and health professionals a vast networking experience while highlighting best practices, industry trends and the latest product innovations. More than 200 continuing education sessions will provide practical information that safety professionals can immediately put to use at their organizations. “Our conference and expo is a dynamic learning and networking experience that supports our mission to help protect workers in every industry worldwide,” said ASSP President Jim Thornton, CSP, CIH, FASSP, FAIHA. “It’s a place to find real solutions to occupational safety and health challenges, especially now when environments can quickly change. We’re excited about the experience we have in store for attendees.” Thousands of safety and health professionals look to ASSP’s annual conference – now in its 63rd year – to advance their careers and interact with experts who will share proven techniques for elevating safety at their companies. Attendees will also be inspired, entertained and informed by popular general sessions. As a focal point of the event, the exposition will feature more than 500 exhibitors showcasing innovative safety solutions that can help organizations eliminate hazards and risks that cause injuries, illnesses and fatalities. The expo floor will include an expanded Career Advancement Center that will serve all attendees, not just those looking for a new position. “Our expo is so illuminating and engaging that safety and health professionals find it just as educational as the sessions,” Thornton said. “Many vendors also bring their product developers and present meaningful learning opportunities.” Safety professionals can earn 1.5 continuing education units (CEUs) for career advancement. Register online to get the discounted early rate through March 21. “If your job involves the safety and health of your organization, Safety 2024 is the place to gain critical insights and knowledge to advance your work environment,” said Stephanie Gurnari, CSP, chair of ASSP’s Professional Development Conference Planning Committee. “It’s a comprehensive experience that provides significant value for occupational safety and health professionals at every level of experience.” Denver is one of the most popular locations for ASSP’s events. The pedestrian-friendly Mile High City is known for its natural beauty with more than 200 city parks and views of the Rocky Mountains. There are trendy restaurants and cafes, a thriving arts scene and countless outdoor activities, such as kayaking on the river that runs through downtown. At the State Capitol, the 13th step is exactly 5,280 feet above sea level.
U.S. Rail Traffic for the week ending January 13, 2024
The Association of American Railroads (AAR) today reported U.S. rail traffic for the week ending January 13, 2024. For this week, total U.S. weekly rail traffic was 457,453 carloads and intermodal units, down 4.1 percent compared with the same week last year. Total carloads for the week ending January 13 were 213,277 carloads, down 10.2 percent compared with the same week in 2023, while U.S. weekly intermodal volume was 244,176 containers and trailers, up 1.9 percent compared to 2023. Three of the 10 carload commodity groups posted an increase compared with the same week in 2023. They were chemicals, up 2,591 carloads, to 33,076; petroleum and petroleum products, up 389 carloads, to 10,374; and forest products, up 80 carloads, to 8,193. Commodity groups that posted decreases compared with the same week in 2023 included coal, down 10,924 carloads, to 58,478; grain, down 8,017 carloads, to 18,776; and nonmetallic minerals, down 4,515 carloads, to 25,446. For the first two weeks of 2024, U.S. railroads reported a cumulative volume of 421,453 carloads, down 5.0 percent from the same point last year; and 453,257 intermodal units, up 2.7 percent from last year. Total combined U.S. traffic for the first two weeks of 2024 was 874,710 carloads and intermodal units, a decrease of 1.1 percent compared to last year. North American rail volume for the week ending January 13, 2024, on 12 reporting U.S., Canadian, and Mexican railroads totaled 316,875 carloads, down 9.1 percent compared with the same week last year, and 319,987 intermodal units, up 0.4 percent compared with last year. Total combined weekly rail traffic in North America was 636,862 carloads and intermodal units, down 4.6 percent. North American rail volume for the first two weeks of 2024 was 1,222,708 carloads and intermodal units, down 1.5 percent compared with 2023. Canadian railroads reported 86,253 carloads for the week, down 10.8 percent, and 64,295 intermodal units, down 8.3 percent compared with the same week in 2023. For the first two weeks of 2024, Canadian railroads reported a cumulative rail traffic volume of 295,353 carloads, containers, and trailers, down 4.9 percent. Mexican railroads reported 17,345 carloads for the week, up 19.0 percent compared with the same week last year, and 11,516 intermodal units, up 25.8 percent. Cumulative volume on Mexican railroads for the first two weeks of 2024 was 52,645 carloads and intermodal containers and trailers, up 16.3 percent from the same point last year. To view the Rail Traffic charts, click here.
Dematic invests in future workforce scholarships
The scholarships celebrate the 10-year anniversary of Dematic’s Automated Storage Retrieval System in the Mary Idema Pew Library Dematic recently granted scholarships to five Grand Valley State University (GVSU) students in celebration of the 10th anniversary of the Mary Idema Pew Library and the Dematic Automated Storage Retrieval System (AS/RS) installation. GVSU students were invited to participate in the scholarship opportunity by reading about the Dematic AS/RS that powers library book retrieval at the Allendale and Grand Rapids, Michigan campuses, and answering a question related to the technology. The scholarship recipients were each awarded $1,000 to use toward their educational needs at the university. Who they are: Kallie Crouch – junior English, education, and writing major Isabella Gielniak – senior education, English, and history-teaching major Julia Jones – freshman recreational therapy major Tanja Morhard – freshman health information management and healthcare information systems major Chloe Spradlin – sophomore biochemistry major “We believe in investing in technology as well as in our future workforce and community,” says Mike Larsson, President, Dematic, KION Group Executive Board Member. “These scholarships reflect our commitment to education and innovation, shaping a brighter tomorrow for Grand Valley State University students and the Grand Rapids community.” Installed at GVSU’s Allendale campus in 2013, the Dematic AS/RS fully automates the book collection process. Students and library patrons request materials through the library’s ordering system, triggering the robotic crane to retrieve the book within minutes of the request. The Dematic AS/RS at the Mary Idema Pew Library on the Allendale campus is integrated via a software control system with another Dematic AS/RS in the Steelcase Library on the Grand Rapids campus. This has eliminated off-campus storage while reducing retrieval times from days to around two minutes. The system ensures near 100% accuracy through barcode scanning. Both library storage areas are temperature-controlled, helping to preserve materials and have a total capacity of 800,000 items. “Dematic’s AS/RS technology at GVSU has made accessing study materials quick and easy,” says scholarship recipient Isabella Gielniak. “From checking out materials to now receiving support for my future studies, it showcases how technology enhances educational accessibility and the positive impact of innovation in the Grand Rapids community.”
Carolina Handling approved as DOD SkillBridge partner
Carolina Handling has been approved by the U.S. Department of Defense as a DOD SkillBridge Authorized Organization to provide job training opportunities for military service members transitioning to the civilian workforce. DOD SkillBridge allows active-duty service members and select groups of the National Guard and Reserves within 180 days of their separation date the opportunity to gain civilian work experience through job training, employment skills training, apprenticeships, and internships and gives industry partners access to a highly trained and motivated workforce at no cost. “Being approved as a DOD SkillBridge partner is an exciting step for Carolina Handling and our recruiting team,” said Corporate Recruiter Catie Beth Bishop. “Hiring continues to be a challenge in all verticals, but especially competitive in the field service technician position. DOD SkillBridge is a cost-effective talent acquisition pipeline that provides access to highly trained individuals with technical skills and strong teamwork and leadership experience.” Service members participating in SkillBridge programs continue receiving their military compensation and benefits, allowing employers time to evaluate the service member’s suitability for future employment. Service members can be granted up to 180 days of permissive duty to focus solely on training full-time with approved industry partners. Almost 13 percent of Carolina Handling associates served or are serving in the U.S. Armed Forces. In November 2023, Carolina Handling was named a veteran-friendly employer by the South Carolina Department of Veterans Affairs. Also in 2023, the company became a participant in Recruit Military, a national platform that connects employers to military job seekers via services such as contingency recruiting, career fairs, and job boards.
Change your thinking and create a culture that people don’t want to leave
Five steps to turn negative thoughts into positive actions Do you have a Negative Nancy (NN) or Toxic Tim (TT) that you’re keeping longer than you should? Would you let them go if you weren’t so short staffed? One Negative Nancy or Toxic Tim infiltrates the whole company and it spreads throughout, affecting everyone. Think of it like this: You attend a meeting that NN was in. When you leave, you approach Positive Polly and share with Positive Polly, “It’s so frustrating dealing with NN. Why is she still here? All we do is constantly listen to her babble and unhappiness.” Before you know it, you become a Negative Nancy, and Positive Polly sees the impact the original NN has made on you and the team. It only takes one person thinking negatively to bring the whole environment, culture, and team down. In order to help you, Positive Polly shares the following. You have 60,000 thoughts a day and 80% of them are negative. These come in the form or doubt, worry and stress and are linked to poor attitudes, declining engagement, and poor performance. Most people think they are positive and optimistic, yet negativity shows and they don’t recognize it. In fact, 95% of your thoughts are repetitive. So, all of the negative thoughts keep getting repeated, impacting how you show up, speak out, lead, and live. Your thoughts are the fundamental foundation of everything you do and everything you don’t do, yet often times you don’t think about them. When was the last time you thought about what you thought about? If you’re like most people you think the same way you’ve always thoughts, resulting in the same behaviors, actions, and results. If you want to change relationships, communication, interactions, your confidence, you must first change how you think. Once you change that, then everything else will change as well. Here is a five-step process to help you change your thoughts to invoke different actions, behaviors and results and develop a positive work environment. Identify—Recognize your thoughts. There’s an exercise to help you very specifically identify your negative thoughts. It’s called the Stand up/Sit down exercise. This is a great exercise to do as a team. Have someone read a set of statements. For every statement you agree with, you will move your body. Everyone starts in a stand-up position. For example, if the first statement is “If you’re ever thought you’re not smart enough,” and you agree, you’ll sit down. If you disagree with the statement, you’ll remain as you were. If the next statement is, “If you’ve ever thought you don’t have enough time,” and you agree, you’ll move (either stand up or sit down depending on what you did for the first statement). This repeats for every statement read (there should be about 15 statements read). During this activity, you can expect to hear laughter evoke from your group, as they are moving for most of them, which shows that negative thinking arises without you consciously knowing. And you have a lot more of them than you believe. Write it—Once you’ve identified your negative thoughts, it’s important to write them down. Something happens in your brain when you write things down. They tend to become real, and you remember them more. So, when you write down your negative thoughts, you become more mindful when they arise. Follow the rest of the process with just one of your negative thoughts. Once you have mastered one, work on another (you don’t want to overwhelm you or burn you out on doing too many at once). Triggers—What are your triggers for your negative thinking? Triggers can be a place, situation, mood, experience, or thing. If you’ve ever had a conversation with someone and walked away saying to yourself, “Why do I even bother,” then you also know a trigger can be a person too. And many times, it is a person. Write down all of your triggers. When you’re aware of your triggers, you can be on the lookout for them. When they come up, as they will, you are armed to not allow the negative thoughts to follow. Reframe—List all the ways to reframe the negative thought. There are two ways to do this reframing. First, you can say the opposite of the negative statement. Instead of staying I’m not a good enough leader, you can say, “I’m an awesome leader.” The second way is to ask questions. For instance, what courses do I need to take to become a better leader, what leadership book should I read to improve my leadership skills or who can mentor me into being a better leader. Your brain is constantly talking to. If you say you’re not a good enough leader, your brain will validate it with all the ways that it’s true. If you say you’re an awesome leader, your brain will validate it with all the ways that it’s true. So, listening to the positive part of your brain will make all the difference in your work and life. Action—Once you have your reframing options, pick one to take action on. Nothing changes until you take action on it. Small action makes a huge difference. If you want to know the best leadership book to read, you may initially think you do not know any, however, your brain can solve that dilemma. It’ll reply with ideas to look up leadership books on Google, put a post on Facebook asking your friends for their recommendations or look up Amazon book reviews. Then it’s time to decide which action you will take (which book to order and order it). Small consistent action is key to eradicating negative thinking. The more you work through this process the more positive thoughts you have. You’ll soon recognize negative thoughts in others and can help them master their own mindset. You’ll become the Positive Polly and help develop a positive work environment that no one wants to leave. About the Author: Jessica Rector,
TIA enhances education programming with SYNC Training
The Transportation Intermediaries Association (TIA), the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce, is excited to announce a collaboration with Metafora’s SYNC Logistics Training to enhance TIA’s education programs, New Broker Certification and New Employee Orientation, by adding live simulations for students. With the addition of SYNC Training’s live simulations, students now have the opportunity to implement what they are learning practically without worry before reaching out to potential clients, customers, and drivers. “TIA’s Research and Education arm is always on the hunt for the best instruction so that our members can learn how best to operate and grow their businesses,” said Anne Reinke, president & CEO of TIA. “We are delighted to have added Sync Logistics Training to our team of world-class instructors. Sync will provide practical knowledge and real-life examples of how best to work with carriers, shippers and all freight stakeholders.” Students will have access to the SYNC training platform via TIA’s Learning Management System, which will improve the overall learning experience for each student to help ensure they are prepared to start scaling their business after graduation from the course. The program also corresponds and works in conjunction with best-in-class asynchronous learning modules designed by industry experts, industry-leading coaches that offer live training weekly on a myriad of topics pertinent to new brokers, as well as proven training delivery methods by TIA Education staff that helps to ensure students have the skills they need to be successful within the brokerage industry upon completion of the course. “We are excited to partner with TIA to add additional value to their already strong training by providing some of our scenario-based training,” said Ryan Schreiber, vice president of Growth & Industry at Metafora. “The scenario-based training that Sync offers helps brokers practice the skills they learn in training in a low friction environment and accelerates their ramp.
PTDA 2024 Industry Immersion Conference offers essential knowledge building and networking for those new to the industry
The Power Transmission Distributors Association (PTDA) will host a new talent development event, the PTDA 2024 Industry Immersion Conference in Hollywood, Fla. on February 29, 2024. This intensive program is designed to help those who are new to the power transmission and motion control (PT/MC) industry grow the interpersonal skills, networking capabilities and industry essentials for building successful relationships with coworkers, executives and customers. “Every PT/MC employer wants to develop their employees into trusted and valued contributors to their team, company and customers’ success,” says John Newman, vice president sales—Americas, BDI and Industry Immersion Task Force Chair. “This event is an exceptional investment in helping new talent hone the skills they need to outperform in 2024 and beyond.” The Industry Immersion Conference is designed to advance professional perspectives and experience of emerging leaders within the PT/MC industry. The curriculum of the program has been developed by experienced members and includes: A panel discussion designed to help newcomers discover best practices when working with channel partners. Panelists include veteran PTDA members Jeff Cloud (IBT Industrial Solutions) as moderator and Barabara Ross (Pfannenberg USA), Steve Kalgreen (Akron Bearing Company, Inc.) and AnnaMarie Donaldson (Regal Rexnord). A member panel aimed to help attendees understand how to maintain relationships with customers. Jason Sorce (Bando USA, Inc.) will moderate and John Newman (BDI), Mike Pulley (Bartlett Bearing Co., Inc.) Mitch Bouchard (General Bearing Service Inc.) and Darin Davenport (Affiliated Distributors, Inc.) will serve as panelists. Additional programming will include learning about various PTDA resources and programs to assist attendees in their roles and informal networking with PTDA leadership. For more information, visit ptda.org/IndustryImmersion.
November 2023 Manufacturing Technology Orders fall despite economy’s soft landing
The soft landing the U.S. economy generally experienced through 2023 did not affect all sectors of the economy evenly. Even in the face of improving economic health, orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology, consistently fell short of orders placed in 2022. November 2023 was no different, with orders falling to $399.8 million, 10.3% lower than those placed in November 2022 and 2% behind orders placed in October 2023. Year-to-date orders reached $4.45 billion in 2023, 13.3% below the same period in 2022. Contract machine shops, the largest consumer of manufacturing technology, decreased their November 2023 orders by nearly 16% from October 2023. The decline was nearly balanced by increases from other manufacturing sectors. Of those sectors that increased orders in November, aerospace manufacturers peaked at 60% above the monthly average compared to the rest of 2023. Electrical equipment manufacturers also increased orders. Tight conditions in the labor market persisting through the holiday travel and shopping seasons necessitated additional investment in automation to help manufacturers meet consumer demand. While overall orders for the year were down compared to their near-record levels in 2022, several regions and industries saw a late-year rally, showing strong order activity through November 2023. The Northeast and South-Central regions only declined by around 2% from their 2022 totals – virtually flat compared to the steeper declines seen in other regions. The minimal comparative losses in these regions were driven by significant year-over-year growth in orders from aerospace manufacturers. The South-Central region also benefited from significant growth in orders from the automotive sector. The release of December 2023 USMTO data will determine if the November bright spots were outliers or the beginning of a rebound that could drive manufacturing technology investment into 2024.
NAW vehemently opposes Acting Secretary Su’s renomination for Secretary of Labor
The National Association of Wholesaler-Distributors (NAW), representing the 8.2 trillion-dollar wholesale distribution industry and 6 million American workers, strongly opposes President Biden’s renomination of Julie Su for Secretary of Labor. Brian Wild, Chief Government Affairs Officer at NAW, issued the following statement: “Ms. Su’s time as Acting Secretary has been marked by a disregard for the diverse needs of both businesses and workers, evidenced in her flawed and harmful policies that threaten jobs, stifle growth, and undermine essential freedoms. The proposed overtime pay rule, with its unprecedented hike in the salary threshold, stands as a prime example. This rule, demonstrably harmful to the wholesale distribution industry – the very backbone of our nation’s supply chain – would limit employee development opportunities, diminish workplace autonomy, and restrict flexibility for millions of employees. This is not an isolated misstep. We see Acting Secretary Su’s influence on other alarming policies, like today’s new Labor Department rule redefining independent contractors, a biased regulation that threatens the flexibility and earning potential of millions of Americans. Furthermore, Ms. Su’s oversight of the Department of Labor has yielded flawed proposals like OSHA‘s proposed walkaround rule, a rule that not only fails to advance workplace safety but also violates property rights, imperils trade secrets, and endangers businesses to increased liability risks. This pattern of harmful decisions is simply unacceptable for a leader entrusted with managing an agency that has such a profound impact on our economy. NAW unequivocally calls upon President Biden to withdraw his renomination of Julie Su. We urge the President to appoint a leader who will work tirelessly to build a future where both businesses and workers can thrive.”
Machinery Manufacturer Norwalt continues to invest for career path program for aspiring college students
‘The Collegiate Automation Program’ helps prepare students for careers in machine design and manufacturing. Norwalt, a specialist in custom-built automation and line integration machinery for complex manufacturing applications, continues to expand on its immersive education program for college students interested in careers in machine design, manufacturing, and other automation-adjacent niches. The company’s Collegiate Automation Program (CAP) forges partnerships with the University of Delaware and other colleges to give aspiring students real-life experiences that bolster their learning in the classroom. For example, at the University of Delaware, Norwalt is assisting with facets of the school’s engineering curriculum, and providing funding for hands-on junior- and senior-level projects that complement classroom instruction. Norwalt also offers internship programs and conducts recruitment seminars offering opportunities to join its machine design team. Financial donations and close collaboration with the school’s education administrators round out Norwalt’s CAP program. In recent years, Norwalt has also reached out to the County College of Morris, and several other community colleges with machinery component donations, helping these educational facilities maintain equipment vital for comprehensive student instruction. With facilities in Randolph, New Jersey, and Tampa, Florida, Norwalt is a supplier of concept-to-completion manufacturing equipment solutions. The company’s engineers design, construct, validate, and install premium production equipment whose functionalities include – but are by no means limited to – packaging and product assembly, post-mold automation, modular automation cells, and robotics systems. Norwalt serves customers in a wide array of sectors, from medical devices and food & beverage applications to personal care and household items. “It is highly rewarding to have the opportunity to nurture and mentor the machine designers and engineers of tomorrow,” said Mike Seitel President at Norwalt. “Our partnership with the University of Delaware is already showing tremendous promise, as we strive to provide real-life machining experience that positively influences the overall education process. Supplementing classroom instruction with hands-on scenarios is vital in a field such as ours, and we’re grateful to do our part.”
American Logistics Aid Network (ALAN) announces new Board Chair
The American Logistics Aid Network (ALAN) has announced that it has named Robert O. Martichenko chairman of the board. Martichenko assumes his new role from current ALAN board chair and co-founder Mark E. Richards. “As ALAN enters a new year, I’m delighted to hand off the baton of leadership into Robert’s very capable hands,” said Richards. “His combination of heart, compassion, creativity and logistics experience makes him the ideal choice to guide ALAN as it continues to forge innovative paths in disaster response.” An ALAN board member since 2019, Martichenko is a longtime industry thought leader and active member of the business community. Passionate about the people side of enterprise excellence and the future of workforce development, he co-founded TrailPaths Inc. in 2022, a people development and technology company whose purpose is to create Meaningful Employment Environments™. Prior to that, he spent 15 years as founder and CEO of LeanCor Supply Chain Group. He is an award-winning author of five business books, multiple articles related to Lean, enterprise excellence, supply chain management and leadership, and one novel, Drift and Hum, which won multiple awards, including the IBPA Benjamin Franklin Gold Winner Award for Best First Book-Fiction. He’s the recipient of numerous prominent industry awards, most notably the Council of Supply Chain Management Professionals’ Distinguished Service Award. He is also a popular speaker and active participant/volunteer on multiple advisory boards, including the Association for Manufacturing Excellence (AME). “It is extremely humbling to step into Mark’s current role,” said Martichenko. “Both he and ALAN Executive Director Kathy Fulton are visionary leaders whose passion and work ethic have earned ALAN an upstanding reputation throughout the supply chain industry. I look forward to working side by side with them as ALAN continues to show how meaningful logistics is to the disaster relief community.” “Over the years, Mark has guided us so capably through everything from hurricanes and tornadoes to global pandemics, all with incredible calmness, intelligence and humanity,” said Fulton. “However we’re delighted to know that we have such a capable successor in Robert. We’re looking forward to the amazing talent and new energy and ideas he’ll bring to this role.”
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December 2023 Logistics Manager’s Index Report® LMI® at 50.6
Growth is INCREASING AT AN INCREASING RATE for: Warehousing Utilization, Warehousing Prices, Transportation Capacity, and Transportation Utilization Growth is INCREASING AT AN DECREASING RATE for: Inventory Costs and Warehousing Capacity Inventory Levels and Transportation Prices ARE DECREASING The Logistics Managers’ Index moved back into expansion territory in December. This movement back to growth was led by increased activity among the three warehousing metrics. Warehousing Capacity is tighter (-5.5) while Utilization (+7.4) and Prices (+1.2) are both expanding at increasing rates. Inventory Levels continued to decline at a steady pace (although they were breaking even Downstream – likely indicative of JIT practices products selling briskly). This movement is likely the catalyst behind Transportation Utilization moving back into expansion (+4.6). Despite this, freight continues to struggle, with Transportation Prices decreasing at an increasing rate (-1.1). Finally, it is worth noting that Inventory Costs are growing at 55.8 (-6.3) but at the lowest level recorded in the history of the index. It will be interesting to continue monitoring this metric to see if it continues to moderate given the clear push towards JIT inventory management. 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 December 2023. The LMI read in at 50.6 this month, up (+1.2) from November and back into mild expansion. As is always the case in December, movements in the logistics industry were driven by holiday shopping. The strength shoppers showed over cyber week continued throughout the holiday shopping season, with U.S. retail sales up 3.1% from November 1st to Christmas Eve. Online retail – which requires more trucks and warehouses located close to consumers – was a major part of this activity, with growth of 6.3%. Interestingly, sales per day was down slightly in December from November ($13.8B from $14.9B). This is reflective of both consumers increasingly spending earlier in the holiday season to avoid stock-outs, and the longer than usual 31-day gap between Black Friday and Christmas caused by an early Thanksgiving[1]. This spending was spurred in part by inflation continuing to drop. The personal-consumption expenditures (PCE) index was down 0.1% in November, which is the first drop in the PCE since the height of covid lockdowns in April of 2020. Wallstreet has taken this as a sign that interest rates will almost assuredly come down over the next year as all major indexes have now been up for eight consecutive weeks[2]. A significant portion of deflation can be traced to shifts in the logistics market. Aggregate Logistics costs (measured on a scale of 0-300, with 150 as the “break-even level) read in at 164.4, which is down (-6.2) from November’s reading of 170.6 and well below the readings during the heavy inflation period of 2022 which were often over 250.0. This is consistent with the San Francisco Fed’s measure of contributors to inflation, which showed supply costs as deflationary for both core and headline PCE inflation in November[3] – a direct reflection of decreased inventory costs inherent to the move back to JIT practices. The impact of JIT on this deflation is evidenced by Inventory Costs, which read in at 55.8 (-6.3) – their lowest level in the history of the index. The costs are particularly low Upstream, where they read in at 50.8 which is very close to no movement at all. This metric has never contracted in the history of the LMI. It will be interesting to see if that changes in the new year or if this is the low point and manufacturers and wholesalers will begin building inventories up again. An Upstream rebuild is expected among respondents, who predicted Upstream Inventory Levels will increase at a rate of 56.2 over the next 12 months. This stands in contrast to high-turnover program with our Downstream respondents. Downstream Inventory Levels are 50.0 in December and are expected to be 50.0 over the next 12 months – the clearest sign yet that retailers are looking to get back to JIT and get off the inventory roller coaster they have been riding over the last few years. For this to happen there will need to be some restocking as current Inventory Levels read in at 44.3, which is a level of contraction that is identical to what we saw in November. Some of the strategy behind the designs on JIT can be seen in the shift in how U.S. firms are importing goods. Sailings from China to the West Coast of the U.S. remains subdued[4]. While this is consistent with seasonal trends, it is still notable, and perhaps reflective of the continued shift in manufacturing from China to sources closer to the U.S. Conversely, over $105 billion of goods have been diverted away from the Red Sea due to attacks by Houthi Pirates. Between the instability in the Red Sea and the low water levels at the Panama Canal, moving goods from Asia to Europe or the East Coast of the U.S. – or vice-versa – has become difficult. This is reflected in container prices from Shanghai to the U.K. jumping to $10,000 for a 40-foot container – up from $2,400 in mid-December[5]. Conversely, more of the manufacturing base continues to nearshore to Mexico to take advantage of low-cost labor, technical expertise, proximity to the U.S., and the free border crossings allowed by the USMCA. Reflective of the increased freight volume coming in from Mexico, U.S. Customs and Border Protection is
Container xChange unveils January’24 Container Market Forecaster
“The red sea situation is acute, but not chronic for shipping” says Christian Roeloffs, cofounder and CEO of Container xChange Shipping industry looking forward to up their game in ‘risk assessment and scenario planning’, ‘diversification of routes and suppliers’ & ‘regulatory compliance’ in 2024 as a response to geopolitical risks Shipping professionals see ‘associated costs’ as biggest headache in ‘24 due to geopolitical unrest BRICS expansion to lead polarisation of global trade Container xChange, a online container trading and leasing platform, releases its New Year’s Edition Container Market Forecaster, shedding light on the escalating geopolitical risks set to reshape the landscape of global trade in 2024. In response to these geopolitical risks, majority of shipping professionals surveyed in the month of December 2023, by Container xChange, are gearing up to enhance resilience through strategic initiatives like – ‘risk assessment and scenario planning’, ‘diversification of routes’ and ‘suppliers and regulatory compliance’. The biggest ‘headache’ resulting from geopolitical upheaval is the ‘associated costs’ that they will have to bear on top of the rising operating costs that they have to already face. Key Highlights: Strategic Focus Areas: In response to geopolitical risks, shipping professionals are prioritizing ‘risk assessment and scenario planning,’ ‘diversification of routes and suppliers,’ and ‘regulatory compliance’ in 2024. Rising Concerns: Survey findings reveal that the biggest concern stemming from geopolitical upheaval is the ‘associated costs,’ compounding the challenges posed by soaring operating costs. Many customers are worried about the rising costs resulting from the Red Sea situation like compliance charges, insurance premiums and war risk charges, etc. The operating costs have already been rising soon after the rates crashed in 2022, and demand failed to recover. On top of the rising costs, these additional surcharges will only add to the worries of shippers and forwarders. BRICS Expansion: The inclusion of new economies in the BRICS bloc, including Saudi, Iran, UAE, Egypt, and Ethiopia, sets the stage for potential polarization of global trade, impacting geopolitical compliance. Technology Utilization: Despite challenges, 82% of industry professionals acknowledge the importance of technology for resilience in 2024, with predictive analysis and forecasting tools taking center stage. Sanctions Compliance: Amidst geopolitical developments, sanctions compliance becomes critical for supply chain professionals, adding another layer of complexity to global trade. Fluctuating Freight Rates: freight rates will increase in the short to midterm, but not in the long run as demand and supply is still highly imbalanced with no clear signs of a strong revival. Talking about the Red Sea situation, Christian Roeloffs said, “The Red Sea is a vital artery for global trade which is currently blocked. Thankfully, there are ways to circumvent that artery and keep the global trade moving and therefore, the trade is not stopped. Therefore, the red sea situation is acute but not chronic in the long term for the shipping industry.” There are still many geopolitical risks that have the potential to significantly impact shipping trade in 2024. We have the Israel – Hamas war, the related situation in the Red Sea, the Russia Ukraine war with no end in sight, tensions between China and Taiwan and an increasing enlargement of the BRICS block. BRICS expansion “What can have a far- reaching and long-term impact on the global supply chain is the BRICS inclusions of more economies.” Roeloffs added. There is a host of countries being added in the BRICS block, namely, Saudi, Iran, UAE, Egypt, Ethiopia, while Argentina declined inclusion. BRICS has been viewed as a counterbalance to the Western-led world order. “If the block starts to increasingly align political decisions and geopolitical stances, then there could be added complexities to the global trade order with rising polarisation of global trade. Ultimately this might lead to a situation where one block is not allowed to trade with the other block and eventually, geopolitical compliance becomes more complex and difficult.” he added. The expansion of BRICS will bring further interesting developments worth noting. Iran and Saudi are now in the same organisation despite a strained relationship. Egypt has close commercial ties with Russia and India but also with the US. India and China together account for ~2.5bn people and could heavily influence global policymaking if they are more aligned. And finally, Russia and Iran being able to jointly influence “trade” policymaking within the BRICS group could lead to a “sharpening” of trade rethink of US-allies vs BRICS. Amidst these developments, sanctions compliance will become critical for supply chain professionals for doing business. Any geopolitical unrest has a direct and causal impact on global trade which results in market volatility. Classic case in point is the Gaza Strip and the resulting actions by Houthis in Jemen. This leads to trade rerouting, ultimately resulting in rising operating costs, delays, and service disruptions.” said Roeloffs.
Who’s your brand’s rival?
Everyone likes a good rivalry story. They inspire, build emotional connections, and create a deep level of authenticity with the characters involved. Your brand has rivals too, and capitalizing on those rivals can help you position your identity in a way that differentiates you from the herd. Rivals also play an essential role in storytelling and messaging. A rival is the main enemy of the protagonist. Their actions and motivations are typically opposed, creating conflict and driving the proverbial plot forward. Consider your brand’s story – do you have a rival that you can position your organization against? The trick with rival positioning is that your rival isn’t your typical competitor – it’s the single thing that your customers struggle to overcome that you and only you can help address, allowing you to connect on a deeper, more emotional level. Consider a few well-known brands that have identified non-traditional rivals that allow them to stand out uniquely from the competition: Nike Fighting Self-Doubt: The renowned “Just Do It” campaign connects with people’s struggle against self-doubt and procrastination. This positions Nike as a companion and motivator, helping emotionally connect by encouraging people to overcome their fears and pursue their goals. Dove Fighting Unhealthy Beauty Standards: Dove’s “Real Beauty” campaign pushes against the unrealistic and unattainable beauty standards perpetuated by the media. This positions Dove as an advocate for authentic beauty, emotionally connecting by celebrating diversity and self-acceptance. Patagonia Fighting Environmental Abuse: Patagonia is deeply rooted and highly focused on “environmental activism and sustainability”. This positions Patagonia as a steward of the environment and emotionally connects through the battle against pollution and the overuse of natural resources. How you position your organization doesn’t end with marketing, branding, and messaging. That distinct position should permeate all areas of your organization, guiding decision-making, and aligning those decisions with the core positioning. For instance, Patagonia uses its rival position to drive decisions on material purchasing, factory design, charitable contributions, and even organizational hires. As you consider your brand, examine the opportunity a rival positioning can bring.By broadening your horizons beyond a traditional competitor, and focusing on people’s emotional drivers, you can not only connect with customers on a deeper level but also create a market position that will be incredibly unique and even harder to contest. 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, released in June 2022. 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. More information is also available on www.pragmadik.com and www.andreabelkolson.com.
The U.S. Plastics Industry in 2023 in seven charts
Assessing the plastics industry landscape in 2023 reveals a year marked with nuanced shifts across various sectors. From the fluctuations in production levels and shipments to the intricate interplay between labor constraints and export dynamics, the plastics industry encountered challenges and opportunities. Notably, the year witnessed divergent trajectories: while certain segments, such as plastics material pricing and resin manufacturing, grappled with equilibrium adjustments, others, like the mold for plastics trade, mirrored global economic oscillations. Unpacking these trends and projections explains a complex narrative of the industry’s path ahead into 2024. 1. Plastic Products Manufacturing 2023 saw a notable pullback from the production levels of 2022. The initial increase starting in March did not maintain momentum for the rest of the year. A significant decline occurred in July, followed by another downturn in August. While September witnessed a slight increase, it was followed by successive declines through November. There is a likelihood that production increased marginally in December. It is anticipated that the rate of decline in plastics production in 2024 will be lower than that observed in 2023. 2. Plastics and Rubber Shipments In 2023, the shipments of plastics and rubber remained relatively stable, hovering between $24.4 billion and $24.9 billion. Although there was an initial decline in the first four months, they rebounded until August before stabilizing, with minimal fluctuations projected for November and December. Despite robust economic growth, primarily fueled by personal consumption accounting for 87% of plastics production, inventories remained elevated, prompting a decrease in plastic shipments. Initial projections for 2024 indicate a tepid rise in shipments of plastics and rubber, signaling a modest increase. 3. Plastics Manufacturing Employment The U.S. plastics industry grappled with persistent labor supply constraints throughout 2023, echoing the challenges experienced across the broader manufacturing sector. From January to December, there was a probable 1.7% decrease in the workforce engaged in plastics product manufacturing. According to the U.S. Bureau of Labor Statistics, an estimated 608,000 employees were working in plastics products manufacturing in November, likely declining to 607,500 by December. The ongoing disparity between job openings and actual hires in manufacturing is anticipated to have persisted throughout November and December. These persistent imbalances in labor demand and supply, including within the plastics industry, are forecasted to extend into 2024. 4. Molds for Plastics Trades The slowdown in U.S. manufacturing and weakened economic conditions in export markets became evident in the molds for plastics trade. Projections suggest a notable 8.8% decrease in exports based on dollar value for 2023. Although the decline in inflation might indicate a lower dollar value of exports, year-to-date exports until October dwindled by 13.2% compared to the same period in 2022. Exports of molds for plastics fluctuated monthly, ranging between $37.0 million and $57.3 million. October indicated a potential 2.9% rise in export value, but these gains might have been tempered in December, historically a weaker month for exports compared to other months. Anticipating a global output slowdown in 2024, particularly in advanced economies, while stabilizing in emerging and developing economies, it’s likely that any improvements in molds exports will be weaker compared to the preceding two years. 5. Producers Prices in Plastics Material and Resin Manufacturing Plastics material and resin prices hit their peak in April this year, then gradually fell as demand and supply rebalanced. Reduced U.S. plastics production tempered resin demand, while supply increased from July to October compared to the previous year. November saw a 0.4% price hike, but December may mark a 0.2% decrease. Barring unexpected disruptions like adverse weather affecting resin production, it is unlikely we will see a reversal in the recent path of resin prices in 2024. 6. Capacity Utilization Rates in Plastics and Resin Manufacturing The capacity utilization rate in plastics product manufacturing declined throughout 2023, averaging 83.1% monthly in the preceding year and dropping to an average of 77.4% for the year, with an anticipated rate of 76.6% for December. This decline aligns with the observed decrease in plastics conversion activity during the year. Conversely, capacity utilization in plastics material and resin manufacturing experienced an uptick, notably increasing in the latter half of the year. December might have seen a slight decrease in both capacity (0.1%) and utilization rate (0.4%). The imbalance between resin supply and demand contributed to the decrease in the Producer Price Index for plastics material and resin manufacturing in 2023. Projections for 2024 suggest an anticipated increase in capacity utilization for resin manufacturing, albeit possibly at a slower pace compared to 2023. 7. Plastics Machinery Imports The U.S. imported plastics machinery amounting to $1.8 billion, with projected import values of $129.4 million in October and $150.1 million in November. This year’s total imports have decreased by 4.4% compared to the previous year. As a primary importer of plastics equipment, this data serves as a key indicator for understanding plastics manufacturing. Typically, an upsurge in plastics machinery imports signifies robust plastic conversion. The reduced imports of plastics equipment this year correlate with the decline in plastics product manufacturing. The possibility of an uptick in plastics equipment imports in 2024 relies on increased plastics production, provided there is a limited inventory of plastics equipment available. About the Author: The Plastics Industry Association (PLASTICS) is the only organization that supports the entire plastics supply chain, including Equipment Suppliers, Material Suppliers, Processors, and Recyclers, representing over one million workers in our $548 billion U.S. industry. PLASTICS advances the priorities of our members who are dedicated to investing in technologies that improve capabilities and advances in recycling and sustainability and providing essential products that allow for the protection and safety of our lives. Since 1937, PLASTICS has been working to make its members, and the seventh largest U.S. manufacturing industry, more globally competitive while supporting circularity through educational initiatives, industry-leading insights and events, convening opportunities and policy advocacy, including the largest plastics trade show in the Americas, NPE2024: The Plastics Show.