Industrial Construction News: Labs, and Power, Energy and Oil & Gas with Noticeable Increases in October 2023
Research by Industrial SalesLeads experienced industrial market research team, shows 419 new planned industrial projects tracked during the month of November. Planned industrial project activity decreased by 4% from the previous month, however, there were noticeable increases in laboratory, Power / Energy / Oil & Gas. The following are selected highlights of new industrial construction news and project opportunities throughout North America. Planned Industrial Construction – By Project Type: Manufacturing Facilities – 146 New Projects Processing Facilities – 97 New Projects Distribution and Industrial Warehouse – 210 New Projects Power/Energy/Oil and Gas – 3 New Projects Laboratory Facilities – 13 New Projects Mine – 1 New Projects Terminal – 0 New Projects Pipeline – 0 New Projects Planned Industrial Construction – By Scope/Activity New Construction – 181 New Projects Expansion – 116 New Projects Renovations/Equipment Upgrades – 125 New Projects Plant Closing – 27 New Projects Planned Industrial Construction – By Location (Top 10 States) Texas – 28 New York – 26 Ohio – 21 Florida – 20 Indiana – 20 North Carolina – 20 Michigan – 19 Illinois – 17 Georgia – 13 Pennsylvania – 13 Largest Planned Industrial Construction Project During the month of November, our research team identified 31 new General Industrial facility construction projects with an estimated value of $100 million or more. The largest project is owned by Northvolt AB, which is planning to invest $5 billion in the construction of a manufacturing facility in MCMASTERVILLE, QC. They have recently received approval for the project. Completion is slated for late 2026. Top 10 Tracked Industrial Construction Projects ARKANSAS: Specialty gas company is planning to invest $3.5 billion for the construction of a gas-to-liquid processing plant in PINE BLUFF, AR. They are currently seeking approval for the project. Construction will occur in multiple phases, with completion slated for 2029. INDIANA: Automotive MFR. is planning to invest $3.2 billion for the construction of an EV battery manufacturing facility in KOKOMO, IN. Completion is slated for early 2027. MICHIGAN: Battery MFR. is planning to invest an additional $3 billion for the expansion of its manufacturing facility in HOLLAND, MI. They are currently seeking approval for the project. CALIFORNIA: University is planning to invest $2 billion for the construction of a 1.4 million SF space research and development center in MOUNTAIN VIEW, CA. They are currently seeking approval for the project. Completion is slated for 2027. LOUISIANA: Fertilizer MFR. is planning to invest $2 billion for the construction of a processing facility in ASCENSION PARISH, LA. They are currently seeking approval for the project. QUEBEC: Specialty steel MFR. is planning to invest $1.7 billion for the construction of a manufacturing facility in SEPT-ILES, QC. They are currently seeking approval for the project. Construction is expected to start in 2026, with completion slated for 2029. MASSACHUSETTS: Consumer goods mfr. is planning to invest $1 billion for the expansion, renovation, and equipment upgrades at its manufacturing facility in ANDOVER, MA. They will relocate their manufacturing operations from BOSTON, MA upon completion. The project includes the renovation of their corporate campus in BOSTON, MA. INDIANA: Solar panel MFR. is planning to invest $800 million for the construction of a manufacturing facility in JEFFERSONVILLE, IN. Completion is slated for late 2025. OHIO: Agricultural processing company is planning to invest $500 million in the construction of a soybean processing plant in UPPER SANDUSKY, OH. Construction is expected to start in early 2024. MICHIGAN: Hydrogen technology company is planning to invest $400 million for the construction of a 510,000 sf manufacturing facility in PLYMOUTH TOWNSHIP, MI. They are currently seeking approval for the project. 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. Visit us at salesleadsinc.com.
Hyster-Yale Group recognizes National STEM Day with manufacturing engineering and innovation programs
Major manufacturer of forklifts and related technologies collaborates with non-profit, universities across the country to foster opportunity and innovation among students pursuing careers in engineering Coinciding with National STEM Day, Hyster-Yale Group announces several milestones and opportunities for engineering students through its longstanding collaborations with academic and career development programs from coast to coast. The company is sponsoring dozens of senior capstone projects, providing mentorship and internship opportunities, opening a new innovation lab and lending industry perspective to new university engineering programs. Innovation Lab at the University of Portland The Hyster-Yale Group Innovation Lab will resume in January 2024 at the new Shiley-Marcos Center for Design and Innovation at the University of Portland. The lab was paused due to the COVID-19 pandemic and construction of the new facility. The lab, which has been a model for other industry-university cooperation, immerses student interns in real engineering and product development projects. Four interns have already been hired into development and innovation roles with the company. The lab is led by Chief Technologist of Innovation for Hyster-Yale Group, Ed Stilwell, who created and taught an innovation course for several years at the university. Internships and advisory councils The company works with other colleges in the communities where it operates to provide internship opportunities, including East Carolina University, Berea College, Eastern Kentucky University and the University of Kentucky. Hyster-Yale Group also serves alongside companies such as Lockheed Martin and Lexmark on the Eastern Kentucky University engineering advisory council. Anthony Wasson, Value Stream Manager, and Ken Deters, Director of Service Operations, are active on the council, which was established to provide industry perspective to the development and operation of the school’s new degree program in manufacturing engineering. At East Carolina University, the Warranty and Quality Improvement Manager for Hyster-Yale Group, John Roberson, also serves on an engineering advisory council. Hyster-Yale Group’s Counterbalanced Development Center (CBDC) in Oregon is in the planning process for 2024 internships with the Multiple Engineering Co-Operative Program (MECOP), a non-profit that works with member companies and universities in the Pacific Northwest to cultivate the highest level of engineering and business graduates by bridging academic theory with industry reality. Since 2000, more than 95 interns across mechanical, electrical, computer engineering and computer science disciplines have worked at the CBDC supporting various product development projects. At least 15 former MECOP interns are employed across the development team, working in design, validation, program management, software and simulation or virtual testing. Hyster-Yale Group posts internship opportunities for fall, spring and summer semesters at several locations. To learn more about all available internship opportunities or to apply, visit https://hyster-yalecareers.com/. University capstone projects Each year, the CBDC sponsors capstone projects for 35 to 40 seniors from local universities. The students work in teams on eight to 10 real-world and often multi-discipline engineering problems provided by Hyster-Yale Group. In Greenville, North Carolina, the company’s Warehouse Product Development Center and manufacturing facility also host engineering students from East Carolina University completing their capstone projects. In both cases, students are guided through the process of developing viable solutions by mentors from the company, accessing valuable experience and insight to the field and developing relationships in the industry as they progress. Student teams have created specialized test equipment, innovative human-machine interfaces, improvements to forklift operator comfort, new sensing methods and other innovations at the leading edge of the materials handling industry.
Strategy is also about People and Culture Dynamics
When organizations design strategies, the focus is typically on crafting an approach to achieve key organizational goals.These plans usually take hundreds of hours collectively, and once complete, are presented to the organization in a series of town halls, beautifully illustrated documents, and leadership meetings. Yet while we believe the strategy itself is the path to success, it’s the people and culture that make a strategy work. Yeah, yeah. “Culture eats strategy for breakfast”. But it doesn’t have to. Culture and strategy can work together in harmony, and even complement each other in a way to compete more effectively. This starts with crafting your strategy with your culture and people in mind. What I mean by this is by examining and deeply understanding what you’re genuinely good at, where you are today, and the behaviors inherent across the organization. Here’s why: What You’re Good At – Many strategies focus on big, aspirational goals, while ignoring what can be leveraged as differentiators today. This doesn’t mean your strategy shouldn’t look towards the future – it just means your strategy needs to consider what advantages you have today that you can capitalize on. For example, your company might be excellent at customer service, so your strategy should consider how this can be leveraged in a way to compete more effectively. Instead of thinking of it as a basic requirement and looking for alternative ways to grow, consider how this advantage can be amplified, accelerated, and further differentiated. Where You Are Today – For instance, a strategy may center on leveraging advanced technology to better engage customers and compete against new entrants. On its face, this sounds like a smart approach. Yet, if your organization is in the proverbial technology stone age, simply declaring this strategic goal won’t get you anywhere. Instead, understand where your organization is today, and articulate within your strategy the key steps you’ll take to get from here to there. In this scenario, becoming technologically advanced may seem like an unreasonable leap, especially if teams are struggling today to convert Word documents into PDFs. This is why knowing where you are today provides you with a clear starting point for articulating your strategy in a way that the organization can see a clear, plausible path forward. Behaviors Inherent In The Organization – Strategies often declare major behavior changes while ignoring how those changes should occur. For instance, a company might claim in its strategy that the goal is to be customer-centric. Arguably, an admirable objective. However, if there’s an undercurrent of doing what’s in the best interest of the organization rather than the customer, it will take a lot more than a strategy to change long-standing habits. Instead, examine organizational behaviors and identify specific ones that may undermine your strategy. Then, use those key behaviors that need to change as the infrastructure to support your customer-centric strategic goal. In short, don’t declare that you simply want change, but illustrate the key things that need to change to make it happen. Granted, there are cases where an organization has become so toxic and internally focused, that a major overhaul is in order. But these are the exceptions – most companies have gotten to the level they’re at by doing something right. And many of those people who helped the organization get there are still employed with the company. Don’t throw yet another strategy over the fence, hoping and praying this time it’s so compelling people won’t be able to resist making it happen. People need to not just understand where you want the company to go, but that you see the realities of today and have a clear path to getting the organization to its destination. Because people are the only thing that will bring a strategy to life. 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.
Episode 434: The pivotal role of Propane in sustainable warehousing
In the latest episode of The New Warehouse podcast, Kevin welcomes an influential figure in the energy sector—Tucker Perkins, CEO of the Propane Education and Research Council (PERC). Perkins leads an organization at the forefront of educating users and promoting the safe, innovative use of propane across various industries, including material handling and warehousing. PERC distinguishes itself by focusing not on lobbying or codes but on the end-users of propane. Whether it’s for farmers, builders, homeowners, or forklift operators, PERC’s mission is to optimize the use of propane, ensuring that machines operate efficiently and sustainably. Safety and training are pillars of their work, as they strive to ensure that industry professionals and consumers alike are well-versed in handling propane with the utmost care. But what exactly does PERC do beyond safety and training? How does propane hold up against other energy options in the industry’s shift toward sustainability? Tune in to the full episode as they unpack these questions, revealing insights that could reshape how the warehousing industry thinks about energy. The Role of Propane in Modern Material Handling Perkins notes, “We’re quickly becoming a two-fuel society regarding material handling.” Its benefits—economic and environmental—pose a compelling case for its increased adoption. In distribution centers, particularly those operating at ports or locations with limited access to electricity, propane is more than just a fuel—it’s a solution. Perkins states, “Five years ago, I think we identified that distribution centers probably just didn’t have adequate access to electricity for what some of their needs are going to be.” This foresight has led to an innovative approach where propane not only powers traditional equipment but also supports the infrastructure for electric vehicles (EVs). The introduction of renewable propane bolsters the sustainable narrative of propane. Perkins points to its potential to reach zero or even harmful carbon emissions, providing a “great story to tell about using conventional propane in a material handling application.” Furthermore, the application of propane goes beyond mobility. Perkins shares insights into power generation: “We’re involved around the country now in using what I think is at least far better than using diesel generators—using propane power generators.” Whether stationary or mobile, these generators are crucial in powering electric vehicle infrastructure without diesel. Harnessing Propane for Sustainable Warehouse Operations Perkins challenges the conventional narrative that fossil fuels are inherently detrimental to the environment, suggesting that the efficiency and cleanliness of propane, particularly in internal combustion engines like forklifts, often outperform electricity derived from coal-dependent grids. “In vast parts of the country, you would better serve the environment by directly using propane,” he asserts. This insight is crucial for warehouse operators assessing their carbon footprint and energy strategies. In collaboration with industry giants such as Hyster-Yale, Toyota, and Mitsubishi-Cat, PERC is innovating for the future. Perkins shares, “We’re working on hybrid forklifts that combine the best of electric powertrains and internal combustion powertrains,” which signifies a leap towards optimizing efficiency and sustainability. The transformative work of PERC focuses not only on current solutions but also on the future of renewable energy sources. Perkins envisions a shift toward renewable propane, especially in states with stringent environmental standards, offering “zero carbon” alternatives. This forward-thinking approach places propane as a versatile and potentially game-changing fuel in the material handling industry, securing its role not just for the present but for decades. The Rise of Renewable Propane in Warehousing Perkins is not just advocating for a greener option; he’s showcasing a shift in the industry towards a zero-emissions goal. He highlights the vast potential of renewable propane, made from diverse feedstocks, including used cooking oils, agricultural oils, and even recycled plastics. His narrative is not limited to hypotheticals; he describes how these processes have moved “from the lab into pilot scale and commercial scale.” The increasing adoption of renewable propane in states like California, Washington, and Oregon is paving the way for its wider acceptance across the warehousing industry. Perkins’ vision is clear: to harness the potential of propane as an energy source that ticks all the boxes for warehouses striving to stay ahead in a competitive, cost-sensitive, and environmentally-conscious market. His parting insight speaks volumes about the future trajectory of energy use in material handling and distribution, making propane not just a specialty but a strategic asset for the warehousing sector. Key Takeaways on Propane in Warehousing Propane is a versatile solution in material handling, with innovation pushing it from a traditional fuel to a key player in sustainable energy. Perkins challenges the environmental impact of fossil fuels, proposing propane, mainly renewable propane, as a cleaner alternative to coal-dependent electricity. Renewable propane is gaining traction as a strategic asset for zero-emission goals in warehousing, with industry collaborations fostering hybrid forklift technologies. The New Warehouse Podcast EP 434: The Pivotal Role of Propane in Sustainable Warehousing
What to do about burnout when you’re not burned-out–3 ways to keep burnout from spreading like wildfire
Burnout is impacting every company, position, and industry. With 90% of the workforce experiencing burnout in the last year, you can no longer afford to ignore this epidemic. It’s affecting teams, leaders, and the whole organization…even you. Even if you’re not the one in burnout, it still impacts you. Think of it this way. How do you feel the next morning when you don’t get quality sleep the night before? Grumpy? Groggy? Foggy? Impatient, irritable, unfocused? Lack of sleep impacts your perspective, attitude, how you respond to others, and how you react to situations. The same thing happens with burnout. It doesn’t stay self-contained. When a team member, let’s say Burnout Betty, has burnout, it impacts how she leads, communicates, listens, focuses, thinks, interacts, her behaviors, energy, mood and disposition. It literally impacts everything. When one person is in burnout, it also trickles out to others, because burned out people burn others out. Even if you don’t have burnout, you’re being impacted by it when someone else does or is on the brink of it. You have the power to do something about it. What can you do? Start a dialogue—Begin talking about burnout is the best place to start. Even though burnout is rampant in the workforce, there’s still some stigma around it. People often fear, if they admit they have it, what will others think, do or say. Will my leaders think I can’t do my job? Will they take away responsibilities or will they lose trust in me? If Burnout Betty (BB) isn’t focused, she becomes distracted, unproductive, and making more errors. She will do the same work multiple times, miss deadlines or forget to meet a client. Those are best case scenarios. BB will easily cut corners leading to cybersecurity attacks, safety issues and possible injuries. When BB misses deadlines, makes mistakes, or has to redo work, how does that impact you? You might have to stay longer, do some of her work, or maybe your work gets pushed back waiting on her to get her part to you, which means missing dinner with your family, being absent at your kids’ activities, or not meeting your deadlines. Lean into your storytelling skills. Share your burnout story with BB. When you were in it, what led to burnout in your life, and the strategies you implemented to move past it. When people are in burnout, they tend to pull away and isolate themselves. When you tell your burnout story, they will start to engage. The more you talk about burnout, the more it reduces this stigma. In the process, you allow others who are experiencing it to not feel alone and to know that someone, somewhere gets it and understands. You create a safe place of compassion and empathy. This lets others know it’s okay to feel burned out. You can still love your job and be burned out. Create awareness around burnout—Burnout doesn’t discriminate. It’s impacting your people. The more your team knows what to look for and what to do to prevent it, the less likely they will find themselves in it. Develop a keen eye, because you can’t change something you aren’t aware exists. Since burnout impacts mental health, Burnout Betty is easily frustrated or irritable, making it harder to communicate or interact with her, because others don’t want her mood to affect them. One Burnout Betty, Negative Nancy or Toxic Tim can bring a dynamic team to a halt. Talking to BB can leave the most positive person in a negative state, because she doesn’t listen or she’s in a bad mood. So, every conversation takes longer than it should, which means less time for you to tend to your daily tasks. Build a task force of people who want to be the eyes and ears in your organization in regards to burnout. They can gather information, ask questions to BB and other team members, and start creating a strategy to combat this epidemic. Then take the information they gather, and do something now to help them prevent it. This allows BB to know that she is being heard and understood and that she matters. One of the biggest qualities people want in their company is to know they matter. When BB knows she matters, she feels supported, knowing she will get the help she needs to combat burnout. Hint: Time off is great, but vacation won’t cure burnout. Once you create awareness around it, share with your people day to day strategies that work to help alleviate burnout. Implement a burnout program—This is the key, fundamental element. Talking about it is a great beginning, but it’s imperative to do more. The only way to prevent and address burnout is to be intentional and strategic with it. Workplace wellness programs aren’t enough; 97% of them don’t specifically address or help with burnout, which is also why 80% of employees aren’t actively involved in wellness programs. As a leader, you have to do your part to help your people with burnout. If you want long term results, your organization MUST implement a continual program (not a one and done) to help people like Burnout Betty with burnout and others to prevent it. A long-term strategy is where the magic happens with burnout. Burnout is a slow crawl, and working through it is multi-layered. Whether it’s an online course, bootcamp or Train the Trainer certification, burnout training is no longer a “nice to have.” It’s imperative if your company wants to keep their top talent and create a happy, thriving workplace and culture. The most successful burnout programs have these key components: accountability, support, encouragement, and Q&A. Burnout doesn’t go away on its own. With most industries incurring staff shortages, it’s up to you, as a leader, to invest in your people if you want to keep them. Since the #1 reason why people leave organizations is due to burnout, it’s a huge opportunity for you to end the burnout epidemic by starting the dialogue, creating
Women In Trucking Association announces its November 2023 Member of the Month
The Women In Trucking Association (WIT) has announced Maria Cardenas as its November 2023 Member of the Month. Cardenas is the marketing manager at Sworkz, a nearshoring and staffing service provider. Cardenas’ father’s first job was providing food to truckers on the highways. Years later, as a little girl, he used to sit her on his lap, and she would steer the wheel in a parking lot while he drove slowly. Those moments with him sparked her fascination with driving. “It’s funny how it all comes full circle,” said Cardenas. “From those childhood memories to now working in an industry that’s intrinsically tied to my family’s history.” She is now 27 years old and believes being a young woman in this industry has its own unique set of challenges such as feeling the need to prove yourself and fighting against stereotypes of how a woman should conduct herself or act. However, Cardenas considers herself lucky to have been born into a family where her grandmother, mother, and sister all exuded leadership and strong character. From their example, she has learned to be a strong woman and unapologetically herself. As a result, she has held onto her values and principles, and surrounds herself with empowered women who have guided her through her journey. Cardenas is determined to carve a path not just for herself, but for other women too; enabling them to shine even brighter by staying true to themselves, even in a world that often casts being unique in a negative light. Cardenas feels her journey wasn’t conventional as she has worked in various marketing agencies, spanning B2B and B2C industries to e-commerce to NGOs and education platforms. But it was Sworkz that led her to the nearshoring industry and its unique challenges. “The idea of empowering women in this male-dominated field resonated with me deeply. As part of the leadership team, I have the privilege and ability to make impactful decisions, advocating not just for women’s talents but also helping some of them as business owners to grow their companies,” said Cardenas. “At Sworkz, we are more than just hollow words – we realize we need to lead with our actions. Our leadership team is 50% women, and our marketing team is almost 90%. As a nearshoring and staffing service provider, we have a responsibility to embody the change we want to see in the industry.” Cardenas hopes her story inspires women to keep breaking more barriers saying, “if you’re a woman considering working in this industry, never apologize for being yourself. Embrace your uniqueness, your skills, and your passion. I hope my journey can be a testament that age and gender are not a barrier and what truly matters is your dedication, kindness, and the mark you want to leave on the world.”
ASSP’s McNelly appointed to ANSI Board of Directors
CEO Jennifer McNelly of the American Society of Safety Professionals (ASSP) has been appointed to the board of directors of the American National Standards Institute (ANSI), which provides a framework for safety standards development and conformity assessment systems. Her three-year term as a director-at-large begins Jan. 1. McNelly, CAE, will continue her full-time role at ASSP during her time on the ANSI board. She will attend ANSI’s board meeting and year-end event as a guest on Dec. 6-7 in Washington, D.C. “I look forward to helping advance ANSI’s and ASSP’s valuable work developing voluntary national consensus standards,” McNelly said. “Our longtime collaboration with ANSI has been an important element of our successful efforts to elevate workplace safety standards.” ANSI accredits standards that are developed by government agencies, consumer groups and other standards organizations such as ASSP, which is a global leader in creating voluntary national consensus standards to protect workers. The standards provide the latest expert guidance and fill gaps where federal regulations don’t exist. Companies rely on voluntary consensus standards to drive improvement, injury prevention and sustainability. Since regulatory requirements are slow to change and often out of date, compliance is not sufficient. A standards-based approach to workplace safety also improves productivity and boosts a company’s bottom line. “With Jennifer giving ASSP a voice on the ANSI board, it will improve our alliance and support the standards process in today’s changing world of work,” said ASSP President Jim Thornton, CSP, CIH, FASSP, FAIHA.
Staffing employment edges down in October
Staffing employment edged down in the week of Oct. 9-15, with the ASA Staffing Index decreasing by 0.1% to a rounded value of 100. Staffing companies listed no one primary factor that limited further growth. Staffing jobs were 7.2% below the same week last year. New starts in the 41st week of the year inched up 0.9% from the prior week. Close to half of all staffing companies (45%) reported gains in new assignments week to week. The ASA Staffing Index four-week moving average decreased from the prior week to hold at a rounded value of 101, and temporary and contract staffing employment for the four weeks ending Oct. 15 was 6.4% lower than the same period in 2022. “Staffing employment has eased in October, though it remains above the lows we saw in the second quarter of the year,” said Tim Hulley, assistant research director at ASA. This week, containing the 12th day of the month, will be used in the October monthly employment situation report scheduled to be issued by the U.S. Bureau of Labor Statistics on Nov. 3.
Women In Trucking Association announces finalists for 2023 Influential Woman in Trucking Award
The Women In Trucking Association (WIT) just announced the three finalists for the 2023 Influential Woman in Trucking award sponsored by Daimler Truck North America (DTNA), the leading manufacturer of Class 6-8 commercial vehicles in North America. This award was developed in 2010 to recognize female leaders and to attract and advance women in the trucking industry. The award highlights the achievements of female role moles and trailblazers in the trucking industry. The 2023 Influential Woman in Trucking finalists are: Tori Blake, Chief Financial Officer and Co-owner, Western Logistics Express and WLX Megan Ferguson, Vice President and of End-to-End Delivery Acceleration, Walmart Shelley Simpson, President, J.B. Hunt Transport Services, Inc. Tori Blake, Chief Financial Officer and Co-Owner of WLX and Western Logistics Express “WLE”, has made it her mission to mentor women in all facets of her business. In her role, she is responsible for financial management, talent acquisition, employee development and strategic visioning. WLX|WLE have been recognized as one of Kansas City’s fastest growing companies each year Tori has been on the team, as well as one of Kansas City’s best places to work. She was also named Kansas City Business Journal’s 2023 CFO of the year. At the start of her career, Tori was an auditor at Ernst & Young, one of the four largest accounting firms in the world. Over her 16-year career as an executive leader, she has led startup companies and has a true passion for entrepreneurial endeavors. Tori has a heart for serving others. She was instrumental in supporting Children’s Mercy Hospital in Kansas City through “Sunshine Taggie” blankets for patients, handmade by WLX|WLE employees. She has also served as chairwoman of her church board, has been a children’s church teacher for over a decade, and is serving as the church mission trip leader. Tori is also a coach of two youth sports teams where she has the honor of coaching and guiding 25 young female athletes and leaders each year. Megan Ferguson, Vice President of End-to-End Delivery Acceleration at Walmart, holds over 15 years of experience at Walmart and Sam’s Club, with a deep background in transportation operations and strategy and merchandise operations. Megan joined Walmart in 2007 as a Private Fleet Strategy Intern and moved into the role of Project Manager of Walmart’s Private Fleet Strategy upon obtaining a degree in Supply Chain Management at Michigan State University. During her career at Walmart, she has filled transportation leadership roles in sourcing and procurement, inventory management and optimization as well as merchandise operations. In her current role, Megan brings Walmart’s delivery strategy to life, across first, middle, and last mile, and always prioritizing the customer’s needs. Megan is a passionate mentor and leader to her teams. She co-leads Walmart’s Women of Supply Chain Council as well as hosts educational sessions and mentorship circles while continuing to grow herself as an active member in the Walmart’s Women’s Officer Caucus. While her passions lie in advocating for women in the transportation and supply chain industries, her mentorship extends to all associates seeking guidance in managing relationships, peer collaborations, and various business topics. Megan prioritizes volunteering her time to train and participate in fireside chats and panel discussions to inspire other women to take on leadership roles. Shelley Simpson is President of J.B. Hunt Transport Services, Inc. Her 29-year career at J.B. Hunt reflects the company’s continued progression as an innovative leader in the transportation and logistics industry. Since joining J.B. Hunt as an hourly customer service representative, she has held multiple positions in business segments across the company, including leading Integrated Capacity Solutions, Truckload, Customer Experience, Highway Services and most recently serving as Chief Commercial Officer and Executive Vice President of People and Human Resources. While leading the strategic direction of marketing, sales, customer experience, and external product development, Shelley also led the development of the company’s freight matching technology platform J.B. Hunt 360°®. As the company evolved the platform and its technology-driven services, Shelley was also responsible for commercializing them on a global scale as the leader of International Services. In 2021, she was named one of the Top 100 Women in Supply Chain by Supply Chain Digital and has been named one of the top 100 HR Professionals by the National Diversity Council in 2022. She recently received the 2022 Woman of the Year in Innovation award by the Women’s Foundation of Arkansas and the Excellence in Free Enterprise Award from Economics Arkansas. There will be a panel discussion at the WIT Accelerate! Conference & Expo held in Dallas, TX, Nov. 5-8, 2023. The winner will be announced after the panel discussion on Tues, Nov. 7 at 10:15 a.m. CST.
Enabling frontline workers to drive efficiency and cost reductions with lean manufacturing
When it comes to supply chain and logistics, efficiency takes center stage. Central to this pursuit is the practice of lean manufacturing, which identifies processes and practices to streamline operations, reduce costs, and engage frontline workers. However, multiple misconceptions surround lean, from its purpose to its impact on the workforce. Contrary to popular belief, lean does not typically result in layoffs and is not merely about trimming the fat. It’s a strategic growth initiative that demands investment and engagement at every level – including your frontline employees. Unlocking efficiencies through lean manufacturing requires active participation and support from frontline workers familiar with daily tasks and operations. Warehouses and manufacturing facilities can tap into their expertise by involving frontline workers in all aspects of lean training and instilling a deeper understanding of lean’s purpose and methodology. Recent surveys reveal a disconnect between the potential benefits of involving more employees and actual lean training practices. Historically, frontline workers have been left out of lean training even though 72% of manufacturers say production would increase, and 91% believe their workers would be more engaged in efficiency efforts if they understood lean principles and objectives. Yet only 40% of manufacturers provide lean training to frontline workers.* Let’s break down some of the positive outcomes of extending lean training to a broader set of warehouse and manufacturing employees. Strategic investments for tomorrow The beauty of lean lies in its ability to generate substantial cost savings that can fund employee-related initiatives such as enhanced training, upgraded tools, and new technology or wellness programs. By introducing these benefits, frontline workers can see the advantages of lean manufacturing firsthand. Redirecting lean savings back into the workforce creates a culture of loyalty and empowerment among frontline workers. Companies can build trust and provide a sense of belonging by showing they value employees enough to dedicate resources that improve their work environment. Skill-building programs, health and wellness programs and facilities, and employee assistance programs demonstrate commitment to frontline employees who become a driving force for long-term prosperity. Maximizing employee potential and growth As the lean process takes hold, a transformative shift occurs within the workforce. Enhanced efficiency gives employees more time and opportunities to explore other value-added tasks. Companies have more time to cross-train employees, giving them additional skills and opportunities for professional growth. Embracing the spirit of experimentation One of the most important facets of lean manufacturing is the willingness to embrace experimentation. Failure is necessary for continuous improvement and is one of the most critical factors in the overall success of the lean process. Every employee, from the frontline workers to managers to top executives, plays a pivotal role. Implementing lean processes requires managers and workers to introduce new ideas, some of which will work and some that won’t. Ideas that don’t work provide employees with valuable lessons. A good rule of thumb for all lean improvements is to plan, do, check, and adjust. Lean manufacturing uncovers new efficiencies and cost savings that can be reinvested to create a more engaged and empowered workforce. When employees are incentivized to find more savings, a never-ending cycle of improvements and efficiencies is created. *Source: Industry Survey, “The Regulatory, Economic, and Workforce Trends that Will Shape 2023,” Intertek Alchemy About the Author: Holly Mockus has over 30 years of experience in safety and quality assurance roles at companies like ConAgra, Kellogg, and Sara Lee, Holly currently serves as Director, Content and Industry Strategy at Intertek Alchemy, where she helps to create world-class workforce development solutions for large, complex operations within the manufacturing industry.
Monetize your value Part 2
I am preparing an intro for this month’s topic, and then we will jump into material prepared by Nathan Hawkins asking him to update the readers about the status of ESOPs in today’s economic environment. I asked him five questions about the state of the ESOP (Employee Stock Option Plan) market, how ESOPs could help with recruiting and employee retention, what’s changed since the Pandemic, how interest rates and inflation have impacted ESOP transactions and what the future holds for ESOPs. I also asked for a recap of the tax benefits generated by an ESOP transaction (spelled additional cash flow). Hopefully, we can include all of this material in this month’s publication. I am afraid Dean is going to charge me for the additional space I am asking for. I am doing this because the annual readers’ survey indicated that readers wanted to know more about ESOPs. So, here you have it. I believe this is an important topic since I keep reading about markets consolidating through M&A transactions. In other words, you can sell it to an outsider or to your employees. With the ESOP you can sell 100% or 51% and get tax benefits. You can also use the ESOP and a platform to build a larger company. If there is any interest going forward, I am sure we could put together a ZOOM meeting to address questions readers may have. We, of course, would not disclose who is asking the questions. 1.What is the state of the ESOP market, and what are some of the key components impacting decisions today? Growing Popularity: ESOPs have been growing in popularity as a succession planning and employee retention tool for business owners. ESOPs can help owners sell their businesses to their employees, ensuring continuity and preserving the company culture. Regulatory Environment: The regulatory environment for ESOPs can influence their prevalence and structure. Changes in tax laws and regulations may impact the attractiveness of ESOPs as a business transition strategy. Financing: The ability of employees to finance the purchase of company shares can affect the feasibility of ESOP transactions. Companies may use a combination of debt, seller financing, and contributions from the business to fund the ESOP. Valuation: Determining the fair market value of a company’s shares for ESOP transactions is critical. Professional valuation firms are often involved to ensure fairness and compliance with regulations. Employee Benefits: ESOPs offer employees an opportunity to accumulate ownership in the company. Employees may become more engaged and motivated when they have a financial stake in the business’s success. Exit Strategy: For business owners looking to retire or exit their companies, ESOPs can provide an alternative to selling to external parties or competitors. Industry Variability: The prevalence of ESOPs can vary by industry. Some industries, such as manufacturing and construction, have a long history of using ESOPs, while others may be less common. Challenges: ESOP transactions can be complex and require careful planning and execution. Challenges may include financing, governance, and managing the transition from owner to employee ownership. 2. How do ESOPs help businesses attract and retain employees? Employee Stock Ownership Plans (ESOPs) can be effective tools for attracting and retaining employees for several reasons: Ownership Stake: ESOPs provide employees with a direct ownership stake in the company. When employees have a financial interest in the success of the organization, they are more likely to be motivated and committed to achieving the company’s goals. This sense of ownership can lead to increased loyalty and dedication to the company’s long-term success. Financial Incentive: ESOPs offer employees the opportunity to share in the company’s financial success. As the company performs well, the value of their ESOP shares increases. This can serve as a powerful financial incentive, aligning the interests of employees with those of the company and its shareholders. Long-Term Perspective: ESOPs encourage employees to think long-term rather than focusing solely on short-term gains. This can be especially valuable for companies that prioritize sustainable growth and stability over quick profits. Employees are more likely to stay with a company that emphasizes long-term success. Employee Engagement: When employees feel like owners, they are more likely to be engaged and committed to their work. They may be more willing to go above and beyond to contribute to the company’s success because they directly benefit from that success. Retention Incentive: ESOPs often have vesting schedules, which means that employees must stay with the company for a certain period of time to fully vest in their ESOP accounts. This serves as a retention incentive, as employees who leave the company before vesting forfeit some or all of their ESOP benefits. Retirement Benefits: ESOPs can serve as a valuable retirement savings vehicle for employees. Knowing that they are building a significant retirement nest egg through their ESOP participation can be a strong incentive for employees to stay with the company for the long term. Competitive Advantage: Offering an ESOP can be a competitive advantage when recruiting new talent. It can set a company apart from competitors and attract candidates who value the opportunity to become company owners. Positive Company Culture: ESOPs can contribute to a positive company culture. They promote transparency, open communication, and a sense of teamwork among employees, which can enhance the overall work environment. Tax Benefits: ESOPs can provide tax benefits to both the company and employees. Contributions to ESOPs are often tax-deductible for the company, and employees may receive favorable tax treatment on the distribution of their ESOP benefits. Succession Planning: For companies looking to transition ownership from one generation to the next, ESOPs offer a structured way to do so while retaining the company’s legacy and culture. Overall, ESOPs can be a powerful tool for attracting and retaining employees who value ownership, financial incentives, and a long-term commitment to the company’s success. However, it’s important for companies to communicate effectively about the benefits of ESOP participation and provide ongoing education to employees to ensure they fully understand and appreciate the value of their ESOP ownership.
The secret formula is React, Respond, Recover, +1
You do something wrong. The customer gets mad. You apologize and try to fix the problem, make nice, and hope they don’t go someplace else next time. Want to buy some “Customer Insurance?” Sure, you do. How do you get “Customer Insurance”, you ask? Easy, you already have it. The problem is that most people (companies) don’t use it. Reason? Insurance costs a little extra. It’s called Plus One Insurance and here’s how it works: When the customer is angry, or you can’t deliver the way they expect, the formula that will make them forgive you, continue to do business with you, and tell others about you is React, Respond, Recover, +1. Here’s what that means. Let’s say you’re late for a delivery, or you deliver the wrong thing, or you make an error in something personalized, or you miss a deadline, or you deliver bad food to the table. In short, you make a business mistake that irritates (or angers) the customer. Now, you must react, respond and recover from the mistake. When you’re done with your dance of apology and making amends, that’s when the customer STARTS talking. They will say something good, nothing, or something bad about you depending on what you said, how you said it, what you did, and how you did it. IMPORTANT NOTE: The customer’s story was crafted by your words and deeds. How much is a positive story worth? How much is a saved customer worth? How much does a negative story cost? How much does a lost customer cost? The answer is “Plus 1.” All you have to do to ensure that the story will be positive, and the customer will be saved is to add a “+” to the end of the transaction. Something extra that the customer was not expecting. Something that will add a smile. Something that will add some “good” to the situation and make a pleasant surprise the last memory the customer has. For example, if your customer: goes into your store for a sale item and you’re sold out. checks into your hotel and their room isn’t ready. orders something and you deliver it wrong. You figure if you just get the customer what they need, you’re out of the woods and they’re “satisfied.” And you figured it wrong. You may be out of the woods, but you may still be in the dog house. You need to add the extra. The “Plus.” You need to add a surprise. You need to add the memory. You need to add a reason to say something good about you. Because the risk of NOT doing it is too large. Let’s take the three examples above and elaborate. Let’s assume you can meet their fundamental needs and recover from the wrong. The real question is: what can you ADD to the situation that will make it a memorable one? Here’s how to add the “+” and create a WOW! You go into the store for a sale item, and they’re sold out. The clerk gives you a “raincheck” to ensure you get the item. AND (the plus) the clerk calls other stores, locates the item and has it delivered to your home at no extra charge. AND (another plus) the clerk gives you a “private sale” card that lets you purchase anything else in the store today only at a 15% discount. You check into a hotel and your room isn’t ready. The clerk says, “Mr. Gitomer, you’re in luck! Your room isn’t ready. That means you get to eat breakfast for free AND (the plus) use our business canter for free. Wow!” You order something and it’s delivered wrong. The correct response when confronted is NOT an excuse. The correct response is, “OH, THAT’S HORRIBLE.” Followed by a statement of what will be done and when. Followed by some bonus that has verbiage something like this: “Mr. Gitomer, you are in luck. You have qualified for our “Wrong delivery, customer bonus” program. Here’s how it works………” The “PLUS” is the difference between satisfactory and loyal. The “PLUS” is the difference between a positive and negative story retold. And the story will be retold. The only question is which way. I hope you’re willing to invest in the “plus” customer insurance premium. Some fools aren’t. About the Author: Jeffrey Gitomer is the author of twelve best-selling books including The Sales Bible, The Little Red Book of Selling, and The Little Gold Book of Yes! Attitude. His real-world ideas and content are also available as online courses at www.GitomerLearningAcademy.com. For information about training and seminars visit www.Gitomer.com or email Jeffrey at salesman@gitomer.com or call him at 704 333-1112.
Eliminating waste over increasing efficiency
Efficiency is fundamentally about using less input and getting more output.When CEOs talk about increasing “worker efficiency”, it usually means getting fewer workers to do more work. You can have the most efficient workforce in the world, but if the company, the system, and the process they’re working in are wasteful, none of it really matters. Eliminating waste is actually way more important than driving efficiency. Efficiency will help you, but waste will crush you. To waste means to use or expend carelessly, extravagantly, or for no purpose. In business, this usually manifests as time spent on things that don’t matter. This could be anything from an executive’s pet project to utilizing hundreds of hours to tweak and modify documents that never end up seeing the light of day. There are also things that might look like waste but aren’t. Waste is not an idea explored that ultimately doesn’t make the cut. Waste is not an effort that fails. Waste is not a canceled project, no matter how much went into it. Waste is not a prototype abandoned along the journey to a solution – there’s always a portion of things that can get naturally lost in the process. (In making whiskey, this is called the “angel’s share” – a portion of the product that’s lost in the production process.) But when we allow actual waste to occur, we’re draining our organization culturally, competitively, and financially. Typically, there are four common causes of waste within an organization. First is bad communication – Say you come out of a leadership meeting energized with clear direction. You and your team charge ahead and make a ton of progress. Then, you hear from leadership the direction has already changed. Days ago, in fact. The problem here isn’t the fast pace of change, it’s bad communication or even the lack thereof. Is bad communication worse than no communication? Who cares. They both create excessive waste. Second is no framework — When a team gets handed strategic direction without any framework, they’re guessing what will meet expectations. They will bust their butts only to find out they’ve misunderstood the goalposts or worse, the goalposts have changed. When teams have to guess to understand strategy, objectives, or success measures, they’re mining rubies with a spoon and flicking them into the ocean. Third is bottlenecks — A bottleneck is a place in the work process where progress gets stuck. It might be because progress can’t happen without meeting with someone who’s double booked until 2050 or hasn’t looked at their inbox in months. Bottlenecks can force teams to sit on their hands until the bottleneck is resolved. What’s even worse is when ambitious teams decide to push on with the work anyway, only to find out only they were on the wrong track, and now you didn’t just generate waste but also destroyed souls at the same time. Fourth is fake urgency — Say you’re just wrapping up for the day when you get a message from the boss asking you to drop everything because something urgent is needed before the next morning. Your team pulls an all-nighter and gets it out the door. Then crickets. You never hear back and only later find out it wasn’t really needed at all. When we create false urgency, often it’s theater. It’s like when your boss’s boss slightly mentions that it’d be interesting to see some data, and your boss is already lighting up to get your team to produce it. Some people will see this as “an issue with leadership” and that it should be remedied by conducting a slew of leadership training exercises. I’d argue it’s not just leaders, but organizational culture. It’s likely most leaders aren’t thinking about waste on a day-to-day basis. But most organizations also haven’t created a culture to continually define, examine, and discuss waste, or define success metrics that actively measure the amount of waste in the organization versus how much has been eliminated. By ignoring organizational waste, you’re also wasting employee enthusiasm and morale. You’re also wasting opportunities for employee growth and learning. And ultimately you’re wasting employee loyalty. Most people are actually willing to work extremely hard. When it’s rewarding, they feel it. But when they see their good work wasted for no good reason, they’re left with animosity, angst, and frustration. And that’s what puts one foot out the door. 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.
Women In Trucking Association announces continued Gold Partnership with Walmart
The Women In Trucking Association (WIT) announced that Walmart has renewed its Gold Level Partnership for the fourteenth year, supporting the nonprofit organization as it attracts more women to the transportation industry and empowers them to be successful. Since 2009, Walmart has supported WIT at the Gold Level, making them the longest-standing top-level sponsor. In addition to financial support and regularly sponsoring the Driver of the Year program, the company actively participates in the association. Walmart’s Ryan McDaniel, vice president of transportation, serves on the WIT board of directors. “Walmart is proud to renew our partnership with Women in Trucking, a 14-year commitment that reflects our dedication to creating an environment of belonging,” said Ryan McDaniel, vice president, transportation at Walmart. “Together, we aim to drive positive change and ensure a more prosperous future for all that empowers women within the transportation industry at large.” “Walmart has shown a long-standing commitment to WIT’s mission, gender diversity and creating opportunities for women across the transporation sector,” said Jennifer Hedrick, WIT president and CEO. “We’re pleased to continue our strong partnership.”
ASSP welcomes new chief financial officer
The American Society of Safety Professionals (ASSP) has welcomed a new chief financial officer. Steven M. Lothary, MBA, will lead the Society’s finance team as of Nov. 1. He will replace Bruce Sufranski, who is retiring at the end of October after more than 14 years of service. Lothary joins ASSP’s leadership team, working with the CEO and Board of Directors to align resources with the organization’s strategic direction. He will oversee all financial functions of ASSP and the ASSP Foundation. His responsibilities include accounts payable and receivable, cash management, annual budgets and audits, financial and tax reporting, risk management, insurance, and headquarters office building operations and maintenance. Lothary brings more than 20 years of experience in the not-for-profit and association industry. “We’re excited to bring Steve on board to continue the competent work and valuable contributions that Bruce has provided for many years,” said ASSP President Jim Thornton, CSP, CIH, FASSP, FAIHA. “Steve will play a significant role as we continue to grow post-pandemic and strengthen our position as a global leader in occupational safety and health.” Lothary will create and manage a long-term financial sustainability plan and work to increase reserves. He also will oversee human resources, which includes compensation and benefits, organizational planning and talent management. “This is a terrific opportunity that is meaningful to me because it helps protect worker safety and health,” Lothary said. “My background and career experiences align well with ASSP’s objective of increasing its financial health and stability. I look forward to helping the Society build on its history of success.” Lothary most recently served for six years as senior director of finance at the Emergency Nurses Association in Schaumburg, IL. The professional medical association provides education for more than 50,000 emergency department nurses. He led the redesign of their budget process and implemented an automated budget system. Prior to that, Lothary was director of finance and facilities for the American Society of Anesthesiologists – also in Schaumburg – from 2008 to 2012 and again from 2014 to 2017. The professional medical association provides education and lobbying support for more than 50,000 members. He implemented monthly dashboard reporting that focused on major revenue sources to better enable the organization’s leaders to pursue strategic initiatives.
MHI sets date for ProMat 2025 and expands to three halls
MHI recently announced the dates for ProMat 2025. ProMat 2025 will be held March 17-20, 2025 at Chicago’s McCormick Place. ProMat is the largest international manufacturing and supply chain show and conference held in the United States. The 2025 event will be the biggest ProMat ever and will include an expansion into McCormick Place’s Lakeside Hall. ProMat brings together solution providers who demonstrate their equipment, systems and services to over 50,000 manufacturing and supply chain professionals from around the globe, seeking productivity solutions for their operations. Over 1,100 exhibitors will showcase their solutions on ProMat’s three show floors totaling over 700,000 square feet of manufacturing and supply chain solutions. ProMat exhibits will represent all segments of the material handling, transportation, and logistics industry, from traditional, manual equipment to computerized, automated systems. To make it easier for attendees to find the solutions they need, ProMat’s three hall’s will be solution-focused: South Hall Manufacturing, Planning & Sourcing Fulfillment, Workforce & Labor Data Capture, Analytics & Information Management North Hall Automation and Robotics Emerging Supply Chain Technology Lakeside Hall Sustainability & Risk Management Transportation, Distribution & Warehousing Last Mile ProMat 2025 will also feature a comprehensive educational conference including keynotes and show floor educational seminars led by industry experts and leading authorities. ProMat 2025 will again include its highly regarded and prestigious International Buyer Program. The Program provides matchmaking for interested buyers and sellers through an International Business Center located near the show hall. Exhibit Space Draw Lease Deadline is November 1, 2023. The ProMat 2025 Exhibit Space Draw will be held November 14-16, 2023. This will be the first opportunity for organizations to secure exhibit space at this event. The deadline for leases for the Space Draw is 5pm ET on November 1, 2023.
MODEX-The biggest manufacturing and supply chain event of 2024 is coming to Atlanta March 11-14
Trade show and conference to feature over 1,000 exhibitors, 165 sessions and keynotes from Jeremy Renner, AI expert Gerd Leonhard, and UPS’s Bill Seward When the largest manufacturing and supply chain trade event of 2024, MODEX, returns to Atlanta on March 11 it will include over 1,000 exhibitors from leading solution providers and a comprehensive Educational Conference focusing on best-in-class solutions for manufacturing and supply chain operations. MODEX 2024 exhibits will represent all segments of the material handling, logistics and transportation industry, from traditional, manual equipment to computerized, automated systems and smart, connected supply chain technologies and last mile logistics. “Only at MODEX, can you engage in face-to-face business interactions and gain immersive firsthand experiences with cutting-edge supply chain equipment, technology, and solutions,” says John Paxton, CEO, MHI. “The value of witnessing these solutions in-person, in-action on the exhibition floor, participating in informative educational sessions, and connecting with industry leaders and innovators all in one place is invaluable to taking your operations to the next level of excellence. MHI is excited to offer this market access and knowledge-sharing opportunity to their entire industry.” “Supply chains are essential to the health of the overall global economy.” says Daniel McKinnon, EVP of Exhibitions, MHI. “By exploring the diverse range of solutions, engaging with industry-leading suppliers, and networking with peers, manufacturing and supply chain professionals can unlock opportunities to identify essential solutions that will pave the way for their future success.”MODEX 2024 Conference In addition to the exhibits, the MODEX Conference will include four keynotes and over 165 show floor educational sessions covering leading trends, best practices and state-of-the-art equipment and technology solutions that can make manufacturing and the entire supply chain work more resiliently, efficiently and profitably. March 11 Keynote: Lessons Learned from the Supply Chain Front Line Bill Seward, President, UPS Supply Chain Solutions March 12 Keynote: Exponential Change in the Age of AI: Digitization, Decarbonization and Reformation Gerd Leonhard, CEO, The Futures Agency and Founder, The Good Future Project March 13 Keynote: A Conversation with Jeremy Renner The Heart of An Avenger March 30 Keynote Panel: Preview of MHI 2024 Annual Industry Report John Paxton, CEO, MHI and Wanda Johnson, Supply Chain Specialist Leader, Deloitte Consulting LLP March 13: MHI Industry Night with Colin Jost MODEX will feature an evening of music, food, drinks and entertainment by comedian Colin Jost on Wednesday, March 31. Tickets to this event are $50 and include beer, wine and hors d’oeuvres. The door prize for this event will be a trip of a lifetime vacation. Women in the Supply Chain Industry Forum on March 11 at MODEX MHI has partnered with Material Handling Equipment Distributors Association and the Warehousing, Education and Research Council (WERC) to bring an afternoon of discussion, education, and networking for women in our industry. MHI Young Professionals Network Reception on March 11 at MODEX This event provides attendees with an opportunity to network and connect with young professionals in the material handling and supply chain industry. MODEX 2024 Student Day on March 13 MHI in partnership with Warehousing Education and Research Council (WERC), College Industry Council on Material Handling Education (CICMHE), Material Handling Equipment Distributors Association (MHEDA) and the Material Handling Education Foundation (MHEFI) presents Student Day at MODEX. More than 300 students will have the opportunity to tour the exhibition and gain first-hand experiences of the latest supply chain technologies. MODEX is the largest manufacturing and supply chain expo held in North America and South America. The event will be held March 11-14, 2024 at Atlanta’s Georgia World Congress Center. MHI also announced the dates for ProMat 2025 in Chicago. ProMat will be held March 17-20, 2025 at McCormick Place.
September 2023 Logistics Manager’s Index Report® LMI® at 52.4
Growth is INCREASING AT AN INCREASING RATE for: Warehousing Utilization, Warehousing Prices, Transportation Capacity, and Transportation Utilization. Inventory Costs, Warehousing Utilization, and Warehousing Prices Growth is INCREASING AT AN DECREASING RATE for: Warehousing Capacity and Inventory Costs Inventory Levels and Transportation Prices ARE DECREASING In September the Logistics Manager’s Index read in at 52.4, up (+1.2) from August’s reading of 51.2. This is the second consecutive month of expansion following three straight readings of contraction from May-July. While this is the fastest rate of expansion since February, a reading of 52.4 is still well below the all-time average of 62.9 and represents a very moderate level of expansion. The largest contributor to September’s expansion is our three warehousing metrics. The rate of expansion has slowed for Warehousing Capacity (-3.4) while rates of expansion for Warehousing Utilization and Warehousing Prices (+3.1 and +7.9 respectively). We also observe Transportation Utilization moving from no change to expansion (+3.5) and a slight slowdown in the decline of Transportation Prices (+0.6). Conversely, we do observe a slight increase in the contraction of Inventory Levels (-4.5) and Inventory Costs (-4.5). This second consecutive expansion provides further evidence suggesting that the move towards growth in August was not a one-off occurrence and may have marked a turning point back towards growth in the logistics industry. It is possible we could see the index slide back into contraction in the face of a potential government shutdown and the UAW strikes. However, we have generally observed strong rates of growth in the fourth quarter, so seasonally speaking, it would be unusual to see a move back towards contraction through the rest of 2023. 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 September 2023. The overall LMI is up slightly (+1.2) to 52.4, which represents a very moderate level of expansion. Moderate expansion might be an apt description of the U.S. economy overall. Labor force participation is increasing as the U.S. added 187,000 new jobs in August. While this is slightly above the pre-pandemic average from 2019, it is down from the explosive growth observed throughout 2022 and early 2023. This move towards more sustainable levels of growth may take some pressure off the Federal reserve to raise interest rates again in 2023[1]. Feelings of optimism continue around the U.S. economy as indicated by the University of Michigan’s consumer confidence measure reading it at 68.1 in September – up 16.2% from this time a year ago. When combined with the “Current Economic Conditions” reading of 71.4[2], it is clear that consumers are optimistic about the state of the economy. This optimism is partially due to the continued slowing of inflation. Personal consumption expenditures were up 0.4% in August due to energy and fuel prices. Core inflation rose by only 0.1% over the same period[3]. Wall Street is not quite as confident, as the S&P fell more than 4% in September, making it the worse month for stock prices in 2023. This may be partially due to money moving over to Treasury bonds, where returns have increased with the anticipation that higher interest rates could stick around for longer than had been expected[4]. That being said, the U.S. is still in better shape than many other places around the world. China continues to struggle with consumer sentiment and a crash in their exports and construction industries. A survey by the U.S.-China Business Group does not paint a rosy picture regarding a potential Chinese turnaround, with 43% of respondents stating the Chinese business environment has deteriorated in the past 12 months due to stop-start lockdowns, and restrictions on trade and technology transfer between the U.S. and China[5]. Germany, which has long been the economic driver of the EU, is struggling as well. Europe’s economy may have contracted in Q3 as interest rates continue to take a toll. Conversely, it appears as though there may be growth in places like Australia and Japan. Many central banks are now pulling back on interest rate increases, but it remains unclear if or when any countries could slide into recession[6]. Consumer spending remained strong through the summer as well. While this provides a hope that holiday spending will increase the movement of goods, there are a few potential obstacles on the horizon in the form of the resumption of student loan payments, the UAW strike, and a potential U.S. government shutdown. While a government shutdown was avoided in the last few hours of September, the matter will likely come up again in another 45 days, which could potentially coincide with the runup to black Friday and Cyber Monday. Beyond any potential damage a shutdown could do to sectors of the economy, it would also delay the publication of the economic statistics that the Fed partially bases their interest rate decisions on[7]. While a shutdown remains theoretical, the UAW strike is very real and is increasing in scale in its third week at the end of September, with more walkouts focusing on Ford and GM facilities[8]. Goldman Sachs estimates that annualized economic growth will decrease 0.05 to 0.1 percentage points every week that the strike goes on[9]. Inventory metrics were a somewhat mixed bag in September. Inventory Levels declined (-0.5) at a rate of 47.4, marking the fourth consecutive month that inventories have declined. There is some nuance to this however, as large firms with over 1,000 employees actually saw
The ARA Show 2024 returns to The Big Easy in February
The ARA Show™ returns to The Big Easy when the world’s largest equipment and event rental trade show makes its way to the Ernest N. Morial Convention Center in New Orleans, Louisiana, February 18 – 21, 2024. The American Rental Association’s (ARA) annual trade show is a can’t-miss event with nearly 40 hours of education and more than 19 hours of trade show excitement over three days with more than 630 exhibitors. Registration for The ARA Show 2024 opens Tuesday, October 17. Both current and prospective ARA members can take advantage of incentive pricing through October 31, and advance pricing through February 15. “We are thrilled to bring The ARA Show 2024 back to New Orleans for an engaging, insightful and fun week for our members. Last year’s show set the bar high and we’re excited to carry that momentum forward with a mix of educational programs, professional networking and our popular social gatherings throughout the week,” says Tony Conant, ARA CEO. The excitement begins on Saturday, February 17, with the return of EventsU. Designed specifically for event rental professionals, the one-day program gives attendees an opportunity to hear from industry leaders on topics including event rental safety, tenting and the latest trends, plus exclusive networking with their event rental industry peers. The ARA Show 2024 officially kicks off with a full day of education sessions on Sunday, February 18. An unmatched array of exceptional sessions will feature professional speakers, industry experts and rental peers. Content on a variety of relevant and timely topics will be offered that appeals to rental professionals at every level. The keynote address — sponsored by ARA Insurance — will be delivered by John Taffer on Monday, February 19. Host and executive producer of Paramount Network’s “Bar Rescue,” Taffer relies on four decades of hospitality, entertainment and nightlife industry experience to advise companies on resetting their business models to ensure future success. Taffer is the best-selling author of three books, in addition to being featured in Forbes Magazine, Rolling Stone and the New York Times. As part of his keynote presentation, Taffer will share the business management expertise he has offered to thousands of businesses and Fortune 500 companies. Immediately following Taffer’s keynote session, the trade show floor will open for two and a half days of product introductions, the latest innovations and Show-Only Specials that allow attendees to fit more equipment and services into their budgets with exclusive deals. “There is a lot of excitement about The ARA Show 2024 being back in New Orleans and that is evident with more than 630 exhibitors confirmed and limited booth space remaining,” says Christine Hammes, ARA Vice President Association Services/Events. “That presents a great opportunity for our members and prospective members to prepare for a successful year ahead by bringing together the education, products and services tailored to their business needs.” Other featured networking events during The ARA Show 2024 include the ARA Young Professionals Network Reception, ARA’s Industry Awards Lunch, Regional Receptions, Women in Rental Breakfast, ARA’s Tuesday Night Event at House of Blues New Orleans featuring Mitchell Tenpenny and more. Advanced registration and ticket requirements may apply. The ARA Show 2024 registration opens Tuesday, October 17. For complete show details, including registration and pricing information, visit ARAshow.org.
August orders of Manufacturing Technology grow 16.1% from July
New orders of manufacturing technology totaled $404.2 million in August 2023, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology. August orders increased 16.1% from July 2023 but were down 12.2% from August 2022. Year-to-date orders reached $2.23 billion, 12.6% lower than the first eight months of 2022. “We are seeing industries focused on shorter-term projects reduce their spending, but at the same time, OEMs focused on longer-term production timelines have been increasing their spending, keeping orders at an elevated level,” said Douglas K. Woods, president of AMT. “The net result is that for the third consecutive month, the gap between year-to-date orders in 2022 and 2023 has narrowed, falling from a 14.6% deficit in May to the 12.6% difference we see today.” Job shops continued to order machinery below their typical monthly share. The value of orders was well below their historical trend despite their share of unit orders remaining elevated. This indicates that while job shops are continuing to buy to increase capacity, OEMs are increasing their purchases of specialized machinery to make more complex, higher-value parts. Of those OEMs increasing orders, manufacturers of automotive transmissions have increased for yet another month. This marks the highest three-month streak of orders since June to August 2017. Manufacturers of engines, turbines, and other power transmission technologies are also increasing orders at a rapid pace. The current upward trend is the largest sustained increase in orders since the increase that peaked in summer 2008, which was driven by the transition from coal-fired power plants to electricity generated by natural gas turbines. “Much of the spike in demand for manufacturing technology over the last few years can be traced back to elevated consumer demand. To gauge the probable path of manufacturing technology orders in the future, we should keep an eye on the health of consumer spending,” said Woods. “Between mortgage payments becoming a larger share of discretionary income, wages in many industries not keeping pace with inflation, and ongoing labor disputes shuttering production lines, there are still several headwinds that face both consumers and the manufacturing technology industry.”