Episode 413: Creating a Sustainable Supply Chain: Strategies for a greener future
In this episode of The New Warehouse Podcast, Ann Sung Ruckstuhl, Senior Vice President and Chief Marketing Officer of Manhattan Associates, discusses sustainability and efficiency within the warehousing and logistics industry. Manhattan Associates is at the forefront of sustainable supply chain transformation through innovative systems and software solutions for the warehouse and transportation segments. Sustainability isn’t just a buzzword to Ann; it’s a critical aspect of modern business, intertwining passion and science. As Ann aptly puts it, “Sustainability has a bleeding hearts element, but there’s a science element to it as well. Without the passion and the science, nothing real will happen.” So, let’s embark on a journey to explore how sustainability is becoming an integral part of the warehousing and logistics landscape. The Urgent Need for a Sustainable Supply Chain Ann points out that the logistics industry is a significant contributor to global carbon emissions, responsible for 60% of the world’s carbon emissions. This alarming statistic makes it clear that we, in the logistics industry, are both guilty and empowered to drive change. A sustainable supply chain isn’t just a nice-to-have; it’s an urgent need. She emphasizes, “When you want to solve a problem, you look for the variable with the biggest influence. We’re the biggest variable in this whole equation. That’s one of the biggest reasons we must focus on sustainability.” Furthermore, we live in an era where technology, climate change, and shifting human behavior converge. Technology gives us the tools to gain visibility and control over supply chains. Climate change forces us to confront the urgent need to reduce our carbon footprint. And human behavior is shifting towards more sustainable choices. Ann explains, “We have a unique window of opportunity where technology, climate change, and human behavior change converge. This convergence empowers us to operate supply chains most efficiently, sustainably, and socially responsibly.” The Consumer-Driven Sustainability Ann highlights Manhattan’s survey results, revealing that 49% of global consumers prioritize sustainability in their purchase decisions. However, only 27% of retailers consider sustainability a top business priority. This gap between consumer expectations and retailer priorities is an area that needs attention. Ann emphasizes, “Consumers care about sustainability, and brands must catch up. The level of urgency is not matched, but the winners who make money in unified commerce do more on sustainability.” One way Manhattan Associates is empowering consumers is through improved visibility and control. By partnering with Google, Manhattan ensures consumers can access vital information such as product availability, location, and accurate delivery promises. This enhanced visibility benefits consumers and aligns with the sustainability goals of reducing unnecessary trips and improving overall efficiency. A Sustainable Supply Chain Yields Profitable Results Sustainability isn’t just about reducing environmental impact; it also makes good business sense. Manhattan Associates’ recent Unified Commerce Benchmark proves this. Leaders in sustainability practices within the commerce sector are experiencing revenue growth three to six times that of their counterparts. Ann shares some empirical facts from the benchmark. Leaders are twice as likely to offer sustainable packaging, 87% of them disclose sustainability practices related to product sourcing, and 60% disclose sustainability product-specific information. These actions resonate with consumers increasingly purchasing based on a brand’s sustainability efforts. Ann explains, “Sustainability is a good business. It’s important, measurable, trackable, and optimizable. These practices benefit the environment and boost revenue and profitability.” Key Takeaways for a Sustainable Supply Chain Urgent Need for a Sustainable Supply Chain: The logistics industry significantly contributes to global carbon emissions, making sustainability an urgent need. Converging factors, including technology, climate change, and shifting consumer behavior, provide a unique opportunity for positive change. Consumer-Driven Sustainability: Consumers prioritize sustainability, but many retailers lag in making it a top business priority. Enhanced visibility and control, facilitated by Manhattan Associates, empower consumers to make more sustainable choices. Profitable Sustainable Practices: Sustainable supply chain practices are environmentally responsible and drive revenue and profitability. Leaders in sustainable supply chain practices experience substantial revenue growth and are more likely to disclose sustainability efforts. The New Warehouse Podcast EP 413: Creating a Sustainable Supply Chain: Strategies for a Greener Future
Staffing Employment holds steady in August
Over four-in-ten staffing firms report gains in new assignments Staffing employment edged up in the week of Aug. 7-13, with the ASA Staffing Index increasing by 0.1% to hold at a rounded value of 102. Staffing companies listed no one primary factor as a barrier preventing further growth. Staffing jobs were 4.4% below the same week last year. New starts in the 32nd week of the year inched down 0.8% from the prior week. More than four-in-10 staffing companies (44%) reported gains in new assignments week to week. The ASA Staffing Index four-week moving average increased from the prior week to a rounded value of 102, and temporary and contract staffing employment for the four weeks ending Aug. 13 was 4.7% lower than the same period in 2022. “Staffing employment has returned to the same levels we saw earlier this year even as it remains lower than last year’s historic numbers,” said Max Aldrich, ASA research coordinator. This week, containing the 12th day of the month, will be used in the August monthly employment situation report scheduled to be issued by the U.S. Bureau of Labor Statistics on Sept. 1.
140 New Industrial Manufacturing Planned Projects for July remain steady for second month
SalesLeads announced today the July 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 140 new projects in July as compared to 141 in June, unchanged for the Industrial Sector. The following are selected highlights on new Industrial Manufacturing industry construction news. Industrial Manufacturing – By Project Type Manufacturing/Production Facilities – 129 New Projects Distribution and Industrial Warehouse – 82 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 44 New Projects Expansion – 48 New Projects Renovations/Equipment Upgrades – 57 New Projects Plant Closings – 13 New Projects Industrial Manufacturing – By Project Location (Top 10 States) California – 10 New York – 9 Texas – 9 Indiana – 8 Ohio – 8 Michigan – 7 Georgia – 6 Minnesota – 6 Tennessee – 6 South Carolina – 5 Largest Planned Project During the month of July, our research team identified 16 new Industrial Manufacturing facility construction projects with an estimated value of $100 million or more. The largest project is owned by Formosa Plastics Corporation, who is planning to invest $12 billion for the construction of a processing facility in ST. JAMES, LA. They are currently seeking approval for the project. Construction is expected to start in Summer 2024. Top 10 Tracked Industrial Manufacturing Projects CALIFORNIA: Semiconductor MFR. is planning to invest $2 billion for the expansion, renovation, and equipment upgrades on their manufacturing facility at 7501 Foothills Blvd. in ROSEVILLE, CA. They are currently seeking approval for the project. Completion is slated for 2026. TENNESSEE: Automotive component mfr. is planning to invest $790 million for the construction of two manufacturing and warehouse facilities totaling 940,000 SF in STANTON, TN. The project includes the construction of a 400,000 SF manufacturing facility in LAWRENCEBURG, TN. Completion is slated for 2025. TEXAS: Tissue paper MFR. is planning to invest $400 million for the construction of a manufacturing and warehouse facility on Gene Campbell Rd. in NEW CANEY, TX. They are currently seeking approval for the project. They will relocate their operations upon completion. INDIANA: Plumbing equipment MFR. is expanding and planning to invest $300 million for the construction of a 300,000 sf manufacturing facility adjacent to their existing plant in WABASH, IN. Construction is expected to start in early Fall 2023. ARIZONA: Semiconductor equipment MFR. is planning to invest $270 million for the construction of a laboratory and manufacturing facility on the Arizona State University campus in TEMPE, AZ. They are currently seeking approval for the project. FLORIDA: Building materials MFR. is planning to invest $235 million for the expansion and equipment upgrades on their manufacturing facility in PALATKA, FL. They are currently seeking approval for the project. GEORGIA: Automobile MFR. is planning to invest $200 million for the renovation and equipment upgrades on their manufacturing facility in WEST POINT, GA. Completion is slated for Spring 2024. OHIO: Tissue paper MFR. is planning to invest $185 million for a 500,000 SF expansion of their manufacturing facility in CIRCLEVILLE, OH. They are currently seeking approval for the project. Completion is slated for 2025. SOUTH DAKOTA: Industrial supplies MFR. is planning to invest $158 million for a 200,000 sf expansion of their manufacturing and warehouse facility in BROOKINGS, SD. They are currently seeking approval for the project. KENTUCKY: Automotive components MFR. is planning to invest $153 million for a 752,000 SF expansion and equipment upgrades on their manufacturing facility in BEREA, KY. They are currently seeking approval for the project. About IMI SalesLeads, Inc. Since 1959, IMI 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, IMI identifies timely insights on companies planning significant capital investments such as new construction, expansion, relocation, equipment modernization and plant closings in industrial facilities. The Outsourced Prospecting Services, an extension to your sales team, is designed to drive growth with qualified meetings and appointments for your internal sales team. Visit us at salesleadsinc.com.
People of Influence are successful. Are you one them?
Are you seeking more influence with your customers? With your boss? With your prospects? With your connections? With your associates and coworkers? Have you ever thought about what elements go into being an influential person? Below is the list, BUT don’t just read it – compare your skill levels to it, so that you can develop your understanding AND your status at the same time. This list contains elements of the IDEAL influencer. All people of influence do not have to have all these qualities, but the more they possess, the greater their power to influence. A power influencer is: Smart. A person who can reason and be reasonable. A person who can think in terms of answers, rather than fret over circumstances. Someone who sees the big picture, rather than the immediate urgency. Shrewd. Beyond smart, a shrewd person sees an answer and a game plan to implement it. And the implementation is seen in favor of the other, rather than in favor of themselves. It doesn’t mean that you give up your winnings (earning, commission, money), but it does mean that everyone wins, not just you. Knowledgeable. Beyond smart, a knowledgeable person knows what’s going on in detail. Product knowledge, service knowledge, and experience. Not just how to work it – but how to use it to profit and produce. Successful. A person who has completed tasks successfully and had successful outcomes. A person who lets their record speak for them. A Winner. A person whose history shows they know how to win, and they’ve won more often than they’ve lost. Full of Answers. Influencers do not always push. Often, they are called upon because an answer is needed, and the caller has confidence or faith that the influencer knows the right answer and the best answer. Someone with ideas that work. Ideas based on past experience, the best possible answer, and a firm understanding of the circumstance will create influence enough to be accepted and implemented. Creative. Creativity is the mother of ideas. A creative person has studied creativity and combined it with the brainpower to never be at a loss of thought in any situation. A thinker. Most people never spend time thinking. That’s why most people are not power influencers. Thinkers are also observers. They don’t just talk – they look, they think, they reason, and then they respond. Someone with a GREAT reputation. If you seek to become a person of influence, other people will have to corroborate your credentials and your credibility. You may think you’re a person of influence, but in the end, it’s not what you think, it’s what others think and what others say about you. Someone with great timing. Knows when to hold ’em. Knows when to fold ’em. Someone with a great attitude. I don’t think you can influence at the same time you’re whining and complaining. And maybe you should substitute the words power influence with the words positive influence. Well, that’s the end of part ONE. Yes, there are several more elements to being a “power influencer” and I’ll reveal them all next in a future issue. How are you doing so far? More complicated than you thought. Relax – you’re not alone. Rereading and rating yourself on each element will give you a realistic picture of your present power to influence. PLEASE NOTE WELL. There is nothing on this list about using sales tactics or closing techniques. No need to. Power influencers do not close sales; they create the desire for the customer to BUY. 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.
Global Economic Outlook and Plastics Trade
Global trade prospects are significantly influenced by the global economic outlook. The state of the global economy plays a crucial role in shaping international trade dynamics and determining the growth and opportunities for industries and economies around the world. For the U.S. plastics industry, the world serves as the market. With the International Monetary Fund revising its global economic outlook, this has implications for the global plastics trade. The recent revision by the International Monetary Fund (IMF) indicates that world output is expected to grow by 3.0% this year, which represents a 20-basis point increase from its earlier forecast in April. However, it is essential to note that this upward revision still suggests a weaker global economic growth compared to the previous year, 2022. As we enter the second half of 2023, businesses planning for the next six-to-twelve-month cycle must carefully consider the economic outlook for 2024. According to the IMF’s growth revisions, the global economy is anticipated to remain relatively stable from 2023 to 2024 but indicating a sideways movement. This projection has implications for the global plastics trade as well. While the industry can still expect growth opportunities in 2023, the subdued economic outlook for 2024 might pose some trade-related concerns. Global growth matters for trade. The IMF recently revised its forecast for world trade volume for goods and services, lowering it from 2.4% to 2.0% for the year 2023. This indicates that global trade is expected to be less robust than previously projected for this year, suggesting some economic challenges and uncertainties in the international trade landscape. However, there is optimism for the following year, as the IMF anticipates an upturn in global trade volume, revising the forecast for 2024 from 3.5% to 3.7%. This indicates a potential recovery and growth in trade opportunities for industries worldwide, including the U.S. plastics industry. In contrast, the World Trade Organization’s projection in April suggested a slower growth rate of 1.7% for global merchandise trade in the current year, highlighting the cautious outlook for international trade dynamics. The trade data from January to May indicate a decline in the dollar value of plastics materials, resin, and plastics products exports, which decreased by 5.4% compared to the same period last year. Similarly, imports in the same category experienced a more substantial decrease of 20.3% during the same period. These declines align with the trend observed in the monthly Import Price Index for plastics and related articles, which has been consistently decreasing year-on-year during the first half of 2023. It is noteworthy that the Index experienced an increase starting in January 2021 and remained elevated for twelve months before the current decrease. Uneven plastics trade outlook Despite the upward revision in the global economic outlook, the growth of the plastic trade is likely to be uneven. Based on the PLASTICS Global Plastics Ranking®, China, the U.S., and Germany hold the top three positions in the global plastics trade. However, their economic performance is projected to differ in 2023. The U.S. economy is expected to grow by 1.8% this year, while China’s is anticipated to experience stronger growth at 5.2%. In contrast, Germany is projected to face a decline of 0.3% in its economic output in 2023. This variation in economic growth among these key players will impact their respective plastic trade volumes and dynamics. For the U.S. plastics industry, two crucial export markets to watch are Mexico and Canada. Mexico, which is the largest U.S. export market for plastics and plastic products, is now projected to grow by 2.6% this year—an upward revision from the previous forecast of 1.8% growth. Similarly, Canada, the second-largest market for U.S. plastics and plastic products, is expected to grow by 1.7%, up from the previously expected 1.5% output increase. However, looking ahead to 2024, with a flat global growth prospect and Mexico and Canada projected to grow at 1.5% and 1.4%, respectively, the U.S. plastics industry may experience weaker export growth compared to this year. Nevertheless, trade volume could be influenced by lower prices. If the U.S. dollar remains stable but below its highs from 2022, U.S. export, to some extent, could experience a global advantage.
June 2023 Orders of Manufacturing Technology reach $411.3 million; and slide from peak continues but orders remain above historical average
New orders of manufacturing technology totaled $411.3 million in June 2023, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology. June 2023 orders increased 12.6% over May 2023 but fell 1.7% below orders in June 2022. This brings total orders through the first half of 2023 to nearly $2.5 billion, about 13% below the total for the first half of 2022. “Orders of manufacturing technology have continued their downward trend since peaking in the second half of 2021; however, for perspective, they remain above historical averages,” said Douglas K. Woods, president of AMT. “Even in non-IMTS years, the majority of orders tend to come in the second half of the year. Despite some headwinds, including fears of a recession, it would seem reasonable that manufacturing technology orders could outperform some of the more pessimistic expectations if we return to that historical trend.” Job shops, the largest customer segment, only increased spending by 4.2%, well under the industry growth of 12.6% from May to June 2023. They also decreased the number of units ordered, while the industry remained about flat. “Job shops tend to be smaller to medium-sized businesses, and the effects of economic uncertainty, coupled with higher interest rates, have begun to take a toll, causing some to delay capital investments,” said Woods. There was one surprising bright spot despite high interest rates and the ever-looming fear of a coming recession: Manufacturers of automotive transmissions have been noticeably increasing investment in manufacturing technology. “Investments on this scale show how manufacturers are preparing for a prolonged transitional period from internal combustion engines to electric vehicles,” said Woods. “Moving toward electrification means facing numerous supply and logistical hurdles, from the sourcing of elements to grid reliability. Auto manufacturers recognize that until these challenges are overcome, demand for internal combustion engines will justify further investment.” Year-to-date orders for manufacturing technology from the automotive transmission and powertrain parts manufacturing sector are at the second-highest level since the first half of 2015.
The Council of Supply Chain Management Professionals (CSCMP) partners with LinkedIn Learning to boost supply chain skills
The Council of Supply Chain Management Professionals (CSCMP) and LinkedIn have partnered in introducing an innovative Professional Certificate available exclusively on LinkedIn Learning. CSCMP, the premier supply chain association, just announced the partnership with LinkedIn to elevate supply chain professionals with cutting-edge skills and expertise. This collaboration of these two powerhouses brings forth an exciting new offering – the CSCMP Supply Chain Foundations: The Essentials Professional Certificate on LinkedIn Learning. Today, more than ever, supply chain professionals need multidisciplinary expertise to navigate through this disruptive time in the industry. This certificate program aims to help supply chain professionals develop the skills needed through captivating coursework and then offers the opportunity to demonstrate an understanding of these skills by taking an assessment. Upon passing, learners can earn a co-branded CSCMP and LinkedIn Learning certificate and showcase it on their LinkedIn profiles. CSCMP Supply Chain Foundations: The Essentials Professional Certificate is just the first certificate to be launched on LinkedIn Learning that aligns with the eight fundamental topics of supply chain covered in CSCMP’s SCPro™ series of professional development and certification. The CSCMP Supply Chain Foundations: The Essentials Professional Certificate is currently available for all learners on LinkedIn Learning. Supply chain professionals seeking to stay ahead of industry trends can start earning this certificate. In the coming months, we will launch an additional 7 Professional Certificates on LinkedIn Learning covering these essential supply chain skills: Customer Service, Transportation, Warehousing Operations, Demand Planning, Inventory Management, Manufacturing Operations, and Procurement.
Episode 409: Empowering Disaster Recovery efforts with the American Logistics Aid Network (ALAN)
In this episode of the New Warehouse podcast, Kevin is joined by Emilee Martichenko, the Communications Coordinator at the American Logistics Aid Network (ALAN). ALAN is a registered 501C nonprofit organization specializing in disaster relief using coordinated logistics solutions. Their mission is to save lives and reduce suffering by ensuring the right materials reach the right place at the right time. They engage a broad network of industry partners to supplement nonprofit organizations’ logistics capabilities, acting as a facilitator in connecting critical resources with disaster sites and communities in need. Enhancing Disaster Relief through Logistics Coordination Emilee shares how ALAN came-to-be after Hurricane Katrina when the lack of coordinated logistics hindered disaster relief efforts. “There was such a struggle to get resources to the site, and the logistics surrounding it were not coordinated effectively. That’s when a group of organizations came together to create ALAN, realizing the need for better supply chain solutions during disasters.” The organization emerged to fill this crucial gap, connecting businesses, nonprofits, government entities, and the public to respond to disasters effectively. By matching businesses with nonprofits, ALAN ensures that the right materials and resources are rapidly delivered to impacted areas, helping hope and aid arrive sooner. The Importance of Preparedness and the Supply Chain Intelligence Center Beyond disaster response, ALAN also focuses on preparedness by actively interfacing with government and industry partners to promote collaboration and situational awareness. They review infrastructure, anticipate impacted industries, and gather information to build a solid foundation for immediate response when disasters strike. One of ALAN’s invaluable tools is the Supply Chain Intelligence Center, providing real-time updates on disasters, supply chain impacts, and charted paths of hurricanes and tropical storms. Emilee adds, “We’re a behind-the-scenes organization, and we pride ourselves on taking a step back to ensure everything is in place before disasters hit. The Supply Chain Intelligence Center is an incredible GIS tool providing real updates on the path of hurricanes, supply chain impacts, and infrastructure changes. It serves various industries and helps businesses plan for potential disasters.” Celebrating Humanitarian Logistics Efforts ALAN annually hosts the Humanitarian Logistics Awards to honor businesses and individuals contributing to the humanitarian logistics field. Emilee shares, “The Humanitarian Logistics Awards aim to recognize our partner organizations and others in the logistics space doing incredible work for their communities and humanitarian crises. We want to celebrate their achievements and contributions to making a difference.” The awards recognize outstanding contributions to disaster relief, employee engagement, lifetime achievements, and research and academic contributions. The program aims to spotlight and acknowledge the generous efforts of organizations within the logistics and supply chain industry that go unrecognized. Key Takeaways: ALAN plays a crucial role in disaster relief by coordinating logistics and connecting businesses and nonprofits, ensuring the timely delivery of critical resources to impacted areas. The Supply Chain Intelligence Center provides real-time updates on disasters and supply chain impacts, facilitating businesses’ preparedness for potential disasters. The Humanitarian Logistics Awards honor outstanding contributions to disaster relief and humanitarian efforts within the logistics community, highlighting unsung heroes. The New Warehouse Podcast EP 409: Empowering Disaster Recovery Efforts with the American Logistics Aid Network (ALAN)
Rack Manufacturers Institute (RMI) embraces a new look for 65th anniversary
RMI has unveiled a new logo and fresh branding to coincide with its 65th year of promoting rack safety. Founded in 1958, RMI is an MHI Industry Group and the leading racking industry association. It currently boasts 38 members, who are identified as leaders in the rack manufacturing and material handling industry space. RMI selected the advertising firm Birdsong Gregory, LLC of Charlotte, North Carolina to assist in a multi-phase brand articulation. With the introduction of a new logo and website updates, the agency has completed the first steps of rebranding. Although members eagerly anticipated the new logo, they also ensured nostalgia was built into it. RMI opted to keep the classic black and orange color palette for the new logo with a “cross beam” line through the center while adding new lettering that showcases a Serif pattern reminiscent of anchor plates on a racking system. Some of the new elements of the RMI site include the newly minted logo, a refreshed infographic design, and a fresh look for its free informational blog site, www.rmiracksafey.org. The blog newsletter also received an overhaul; readers can subscribe for free updates at www.rmiracksafety.org/newsletter-signup. “RMI has a long-established 65-year history in the industry, and it was important to the group to honor our original logo while giving a nod to the future for our new look and branding. We wanted to provide a fresh take on the widely recognized, black and orange logo, which end-users have trusted with confidence for decades to know that their project adheres to the highest engineering and design standards,” said Paul Neal, RMI President and Unarco President & CEO. An additional refresh on the horizon is the R-Mark® Certification program update and logo. Industry should expect to see the new R-Mark® logo stamp debut on member sites, as well as digital and print platforms, as early as September 2023. “The timing for a style evolution for RMI couldn’t be better as it really coincides with an industry push to integrate a variety of automation and technologies into existing facilities and rack structures as well as new ones, stated Jonathan Hirst, RMI Marketing Chair and both the Vice President and General Manager of North American Storage Equipment Inc. “Rack has evolved to meet the needs of the industry and we wanted our branding to strongly reflect that.”
ARA’s quarterly economic forecast updates CIE rental revenues
The American Rental Association (ARA) has released an updated forecast for the construction and industrial equipment rental industry. In the quarterly update, the ARA presented significant changes in the economic forecast, particularly for construction and industrial equipment (CIE) rental revenues. In the previous forecast, CIE rental revenue was expected to reach $45.5 billion in 2023 and $46.7 billion in 2024. With new considerations, the CIE rental revenue is expected to total $56 billion this year and $59 billion in 2024. There are two factors underpinning these changes. The first is the data on non-residential construction spending used in the model and the second is the increasing importance of ‘specialty rental’ to overall rental revenues. Recent analysis by economists at the Federal Reserve Board has suggested that data for non-residential construction spending produced by the U.S. Census Bureau has underestimated non-residential construction spending by at least 20 percent since the second quarter of 2021. “The Fed economists’ analysis is both well-reasoned and analytically sound and we believe that this new information needs to be included in our revised forecast,” says John McClelland, Ph.D., ARA vice president for government affairs and chief economist. “The second change in our forecast is the inclusion of information about specialty rentals which has been a growing trend. Recent work by our partners at S&P Global has constructed a ten-year time series of specialty rental from multiple data sources. Incorporating this new information into our model now gives specialty rentals a larger share among the variables that forecast CIE revenues.” With current CIE forecasts including both traditional and specialty rental as the new industry measure, Canadian CIE rental revenues are expected to reach $4.4 billion in 2023 as opposed to previous forecasts totaling $3.7 billion. In 2024, Canadian CIE rental revenue is predicted to total $4.4 billion, an increase from the previous forecast of $3.8 billion. Canadian general tool equipment rental revenue is down slightly from the last forecast at $991 million. However, stronger growth is expected in 2024 and beyond as the forecast indicated 2024 revenue at $1 billion. In the United States general tool market, rental revenue growth will slow through 2023, totaling $14.9 billion this year. This is driven by weakness in residential construction markets. Growth in 2024 is predicted to slow as well, with revenues equaling $15.7 billion in 2024.
Percentage of female HR professionals in transportation remains high
According to new data from the 2023 WIT Index, which recently was released by the Women In Trucking Association (WIT), an average 74.6% of human resources (HR) and talent management roles in transportation companies are held by women. The WIT Index is an industry barometer to benchmark and measure each year the percentage of women who make up critical roles in commercial freight transportation. In addition, the 2023 WIT Index finds that approximately 48.6% of respondents report 50% to 89% of professionals in their company’s HR/Talent Management positions are women. Traditionally, the HR profession has been long-perceived as a female-oriented profession, primarily because of the skill sets requirement in the field, according to Jennifer Hedrick, WIT’s president and CEO. “Women are commonly considered to have a strong Emotional Intelligence (EI) score,” she said, “and in general tend to possess the critical skills required for this discipline, such as multitasking, leadership, planning, communication, and human relations.” Initiated in 2016, the WIT Index is based upon reported statistics by companies in transportation, including for-hire trucking companies, private fleets, transportation intermediaries, railroads, ocean carriers, equipment manufacturers, and technology companies. Data involving the 2023 WIT Index was confidentially gathered from January through April of 2023 from 350 participating companies of various sizes operating in the trucking industry. Percentages are reported only as aggregate totals of respondents rather than by individual company. Along with its traditional benchmark percentages among HR/talent management, leadership, and professional drivers in commercial freight transportation, WIT again this year has expanded its collection on the percentage of women to include operations, technicians, sales, and marketing. For more information on the WIT Index and to download a full executive summary of the 2023 WIT Index findings, visit https://www.womenintrucking.org/index. Click here for HR/Talent Management – Percentage of Women
Transient leaders kill culture for reasons you don’t realize
Some organizations go through CEOs and department heads like Kleenex. Today, the average tenure of a CEO is 4.6 years. In other cases, C-Suite leaders rotate out of the organization within 1 or 2 years, and a new leader is installed. And it’s always “This one is the right one – they’re bringing incredible experience/ideas/perspective to the organization.” They try to install a few changes that typically don’t stick, and are moved out in short order. Then the pattern repeats. Why does this happen? Sometimes there are unrealistic expectations that are set. Other times, it actually may be a poor hire. But rotating leaders in and out costs your company much more than simply hiring bonuses. It kills culture in ways you don’t realize. I spoke with a friend recently, who is working in an environment where they’ve had 5 new CEOs in the last 7 years. While some may view this issue as causing pressure, confusion, and constant priority changes for the organization, this wasn’t the core problem. The churn created inertia, where employees simply waited out the new CEO’s tenure, knowing they would be leaving soon, and any new idea or initiative would be killed by the next incoming CEO. My friend’s analogy was spot on, stating, “It’s like a single mom that has another new boyfriend. As a child, you know it’s temporary. You don’t need to respect their authority or become close to them. You do what is necessary to appease them in the short term until they are rotated out by the next one.” This is what kills culture. It’s not that the new hire might not be a great talent, have great ideas, be a great leader, or have a great vision. If there’s a track record in the organization where leaders come and go, the new hire won’t be successful because they are the proverbial “new boyfriend”. Employees will fight to maintain the status quo and resist change, as any time they have in the past those efforts are short-lived, as the next leader upends them. And just like the new boyfriend, the same type of individual is picked every time, and the pattern continues. Leadership might not see it, but employees sure do. So while you may think you just haven’t found the right leader, often it’s the organization’s reaction to historical churn. And that cycle is incredibly hard to break. Do yourself a favor and talk to your employees about what type of leader they want. Find out what has worked in the past and what hasn’t from their perspective. Identify employees internally that have the potential to take a leadership role in a few years, and determine what they need to get there faster. Take a different approach to finding a new leader, whether a temporary employee who is there to prep an internal staff member for the job, or even a totally different leader from outside the industry that signals it’s actually different this time. Otherwise, you’ll just churn through yet another boyfriend. 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.
Reusable Packaging Association set to showcase groundbreaking solutions in the RPA Pavilion at Pack Expo Las Vegas 2023
The Reusable Packaging Pavilion is Home to the Technology Hub and Learning Center – The Ultimate Global Gathering of Reusable Packaging Experts, All Under One Roof Leading the way in advancing the circular economy, the Reusable Packaging Association (RPA), has announced the much-anticipated Reusable Packaging Pavilion at PACK EXPO. This exceptional event is set to take place in Las Vegas, September 11-13, uniting the largest assembly of reusable packaging experts and unveiling a diverse range of cutting-edge products and technologies. “For over two decades, RPA has been at the forefront of reusable transport packaging solutions, and the Reusable Packaging Pavilion at PACK EXPO has been a cornerstone showcase of member company innovations in products and services,” said Tim Debus, CEO of RPA. “Attendees at the show can see the latest developments in reusable packaging for the supply chain and learn from the industry’s leading experts in adopting and optimizing reuse systems – all in one place.” The RPA Pavilion will feature over 40-member company exhibitors this September. PACK EXPO attendees are encouraged to check out RPA’s member exhibitors and floorplan to learn where to find each exhibitor in the South Upper Hall at the Las Vegas Convention Center. The adjacent Reusable Packaging Learning Center will host RPA’s education program with 19 sessions over the two days Monday and Tuesday, September 11 and 12, from 10 a.m. until 4:45 p.m. US Pacific Time. Sessions include company presentations and industry panel discussions focused on improving supply chain performance, sustainability, and technology with reusable transport packaging. See the full schedule here. All sessions are open to PACK EXPO Las Vegas attendees. RPA will conclude the Learning Center with the 2023 Excellence in Reusable Packaging Awards on Tuesday at 3:00 p.m. The annual awards celebrate primary (end) users and suppliers that have significant impactful achievements in one of three categories: a reusable packaging system, design innovation, or product technology.
Episode 408: Empowering the Blind and Visually Impaired workforce in warehousing with The Austin Lighthouse
In this episode of The New Warehouse Podcast, Kevin sits down with Raelene Gomes, the IT Manager at the Travis Association for the Blind, also known as The Austin Lighthouse. The Austin Lighthouse, founded in the 1930s, is a warehousing and distribution organization that employs and trains blind and visually impaired workers intending to help them find employment outside the Lighthouse while encouraging upward mobility. Improving Workforce Inclusivity at The Austin Lighthouse through Transformative Technology Raelene discusses how they’ve successfully utilized various technologies, such as screen reading technology, voice picking, and textured tape on the floor, to create a more inclusive and accessible workplace for visually impaired employees. She believes “Technology is so powerful and can be a big equalizer across abilities. With the right technology in place, I cannot limit what I can achieve.” By partnering with technology providers like Zebra and Manhattan Associates, they’ve worked to make software and hardware more accessible, enabling their workforce to thrive. Embracing the Future of Work: Work from Home and Automation Looking to the future of work, Raelene highlights the importance of work-from-home opportunities, especially for individuals with transportation challenges. She also emphasizes the potential of automation as a means to elevate job opportunities rather than replace employees. For example, robots can reduce travel time, making tasks more manageable for employees with specific impairments. She adds “I think automation is going to be a big thing, which, if done right, opens up job opportunities rather than taking them away.” Tapping into an Untapped Workforce in Warehousing Market Raelene urges employers to be open-minded about hiring visually impaired individuals and to inquire about the adaptive technology needed to support them effectively. “I’d like to see more employers ask what kind of adaptive technology is needed. It’s usually not a big ask and can open up job opportunities for people with disabilities.” By doing so, companies can tap into an untapped labor pool, fostering a more diverse and inclusive workforce. Key Takeaways from The Austin Lighthouse By implementing accessible technologies, companies can create a more inclusive and empowering work environment for visually impaired employees. Embracing work-from-home opportunities and automation can enable greater workforce participation and job growth for people with disabilities. Employers should explore adaptive technology and open themselves up to hiring from the visually impaired labor pool, expanding workforce diversity and fostering inclusivity. The New Warehouse Podcast EP 408: Empowering the Blind and Visually Impaired Workforce in Warehousing with The Austin Lighthouse
Port of Long Beach awards $220,000 in college scholarships
The Port of Long Beach on Wednesday announced $219,500 in scholarships for 154 local college and high school students to assist in their pursuit of higher education degrees in port-related fields from engineering to international business. The students receiving the scholarships were recognized at the Port’s “Celebrating Education” event on Aug. 2. The event also honored the 2023 class of summer high school interns, the first class after a three-year hiatus due to the COVID-19 pandemic. The Celebrating Education event brings together students, educators, public officials and business leaders to highlight the Port’s education outreach programs and recognize the accomplishments of students involved. “The Harbor Commission has a longstanding goal to create and support programs aimed at advancing the development of a skilled workforce in international trade, goods movement and related professions,” said Sharon L. Weissman, President of the Long Beach Board of Harbor Commissioners. “Scholarships are just one of the many ways we work toward that goal.” “We’re proud to provide the college scholarships which will help in guiding our youth toward rewarding careers in the logistics industry,” said Long Beach Mayor Rex Richardson. “These scholarships will play a crucial role in providing essential financial assistance to hardworking students, enabling them to pursue higher education and other training opportunities.” “Our education programs offer training and funding to prepare students for positions at every level within the port industry,” said Port of Long Beach CEO Mario Cordero. “We’re doing our part to make sure our local young people have every opportunity to be part of the goods movement workforce of tomorrow.” Since 2014, the Port has awarded nearly $1.1 million in scholarships to students pursuing careers in international trade and goods movement. This year’s scholarships went to students from local high schools, Long Beach City College and Cal State Long Beach. This fiscal year’s budget for scholarships was $250,000, up from the previous year’s $200,000.
American Welding Society strengthens support to younger welding professionals with complimentary student membership
As an organization that recognizes the importance of developing the next generation of welding professionals, the American Welding Society announced today that it’s making its student membership complimentary. “The complimentary student membership is part of the Society’s strategy of supporting the younger generation in the earliest stages of their careers,” said Cassie Burrell, Senior VP, Marketing & Membership Development. “AWS boasts a large portfolio of offerings that will resonate with young people, helping to build a bridge from student to early career to professional membership.” For decades, the annual dues for the student membership were $15. Now, stude nts can obtain a complimentary membership for four years and maintain the same benefits. These include free digital access to the Welding Journal, discounts on publications and educational offerings, and access to the ever-popular Member Network, including a student community. “The complimentary student membership will introduce young people to a vast library of AWS resources and services designed to enhance their education outside the classroom, from scholarships through the AWS Foundation to networking opportunities at local AWS Student Chapter and Section events,” added Burrell. “We’re looking forward to welcoming student members and for them to find career and real-life opportunities they may not have discovered otherwise.” Students looking to elevate their education can apply online at aws.org/membership. They’ll then receive their member ID, giving them instant access to their member benefits.”
July 2023 Logistics Manager’s Index Report®
LMI® at 45.4 Growth is INCREASING AT AN INCREASING RATE for: Inventory Costs, and Warehousing Capacity Growth is INCREASING AT AN DECREASING RATE for: Warehousing Utilization, Warehousing Prices, and Transportation Capacity Inventory Levels, Transportation Utilization, and Transportation Prices are DECREASING Similarly to last month, Inventory Levels are down (-1.0) to 41.9 which is the steepest rate of contraction in the history of the index. Decreasing inventories have led to slowing rates of growth for both Warehousing Utilization and Warehousing Prices, with Warehousing Capacity increasing. Interestingly, we do see the rate of growth for Transportation Capacity slowing while Transportation Prices decline at their slowest rate since April. Warehousing metrics are still buoying the overall index, but they are softening as transportation metrics are beginning to stiffen. 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 July 2023. We continue to see very different outcomes for the overall economy and the logistics industry. This dichotomy is most clearly seen in employment figures. While 209,000 workers were added in June, 14,000 freight and parcel carriers were cut and 6,900 warehousing and storage jobs were lost. In the past we would expect to see transportation and warehousing ramping up hiring in late summer ahead of peak season. However, analysts do not see the same “urgency” towards hiring in the logistics industry so far this year (1) . Freight and storage markets are at lease somewhat suppressed by high interest rates. Ironically, the contraction we see in the former and the softening we see in the latter have driven down supply costs, allowing some prices to come down and taking pressure off of labor. Essentially, the slowdown in logistics costs is allowing growth to slow to a more sustainable level. A point in that direction can be seen in personal-consumption expenditures (PCE) increasing by 3% in June year-over-year, which is down from the 3.8% increase in May and steadily moving closer to the Fed’s preferred targe t(2). This is partially fueled by a decline in wage growth. Wages were up one 1% in Q2 (down from a 1.2% bump in Q1) and up 4.5% year-over year (3). We also saw that consumer spending on goods in Q2 was down year-over-year, particularly on durable goods like cars and appliances (4). All of this led the Fed to once again raise interest rates at their most recent meeting, pushing rates to a range between 5.25 and 5.5% – the highest in 22 years. However, Chairman Powell noted that further increases would be dependent on the how quickly inflation can be reined in. Perhaps most encouragingly, Powell stated that Fed analysts were no longer predicting a recession to occur in 2023 – a marked change from their stance earlier in the Spring (5) (and as dedicated readers will know – in line with what the LMI has been predicting all year). While there may still be interest rate increases in 2023, Powell did say that the improvement in inflation means the Fed can “afford to be a little patient” (6). Inventories showed up in an unexpected way in the GDP numbers that were published in July. U.S. GDP was up 2.4% in Q2 – up from analyst expectations and the growth seen in Q1. This is a far cry from the same time last year when the economy was in the midst of a two-quarter retraction. Interestingly, private inventories contributed positively, adding 0.14% to overall GDP growth after acting as a net negative of 2.1% in Q17 . Relatedly, in late July the Atlanta Fed released a prediction of 3.5 percent GDP growth for Q38 . This is a far cry from late 2022 and earlier this year when many were predicting a recession. This prediction raises two major questions: 1) How would inventories have to change to facilitate this level of growth? 2) Will firms be able to move this many goods this quickly? There is plenty of idle trucking and warehousing capacity, but for 3.5% growth there will need to be a lot of goods passing through them. Would the improvements that have been made to port, storage, and intermodal infrastructure be enough? Or would we see congestion that is similar to what we had in 2021? Currently inventory levels are at their lowest point in the history of the index, down (-1.0) from June’s reading and contracting at a rate of 41.9. Working through the bulge of inventories that firms had in 2022 was a lengthy process, and according to July’s results, still ongoing for Upstream respondents (Downstream Inventory Levels ticked up slightly). On a recent earnings call Knight-Swift CEO David Jackson posited that wide-scale destocking is near the end, and seasonality should return in the “coming quarters” (9) . While this is reflected in the respondent future predictions discussed below, it should be pointed out that some carriers have been predicting a restock to happen for months and it has still not yet materialized. However, one argument for restocking occurring is that the Consumer Sentiment Index tracked by the University of Michigan was up 11% to 71.6 in July, which is the highest reading since October 2021 and suggests that consumers are increasingly confident about the short- and long-term health of the economy (10). Confident consumers need something to spend money on, and firms will need to build inventories back up if they don’t want to miss potential
Association of Diesel Specialists adopts Right to Repair Position
The Board of Directors of the Association of Diesel Specialists (ADS) adopted a formal Right to Repair position for the association during its July 14, 2023 Board Meeting. Realizing the importance of the Right to Repair to ADS diesel service shops, the ADS Board unanimously approved the ADS Right to Repair position that: • Advocates for independent repair shops to have access to the technology and parts necessary to service vehicle engines and the components thereof. • Approves supporting right to repair legislation. • Authorizes the officers of the Association in coordination with Association staff, to take all reasonable actions to support the position of the Association on right to repair, including authoring position statements and endorsing position statements from other organizations. “I will work with the elected leaders of the association to determine the most effective path forward for ADS to support the Right to Repair initiatives,” stated ADS CEO Scott D. Parker. “Just as it has done since its founding in 1956, ADS will continue to support the independent diesel aftermarket.” The Association of Diesel Specialist was formed in 1956 for “companies or concerns engaged in servicing and selling diesel fuel injection equipment, governors and immediately related accessories.” Over the next 67 years, 32 Presidents, hundreds of Board members and countless volunteers have worked together to develop various services and products to provide value to members. Today, ADS diesel service shop members face an increasing challenge in their ability to provide service to their customers – including lack of necessary access to technology, information and parts. ADS will update its members on its action to Right to Repair initiatives and encourage them to promote the concept where and when appropriate.
Plastics Industry Association submits comments, disappointed with EPA draft strategy on plastic pollution
The Plastics Industry Association (PLASTICS) has submitted comments in response to the Environmental Protection Agency’s (EPA) request for public input on its Draft National Strategy to Prevent Plastic Pollution. “The plastic industry appreciates the opportunity to submit comments to the EPA, however, we are disappointed with the agency’s draft strategy,” said PLASTICS’ President and CEO Matt Seaholm. “The EPA was directed by Congress in an overwhelmingly bi-partisan way to focus on post-consumer materials management and infrastructure, and instead the agency’s first stated objective in this strategy is to reduce the production of essential materials rather than address plastic waste.” “The strategy is not focused on improving infrastructure, meanwhile, the plastics industry continues to invest billions of dollars in innovations to expand recycling capacity. Understanding and addressing the essential nature of plastics and tackling environmental challenges should not be mutually exclusive.” “We don’t recycle enough, and we need to improve recycling rates in the U.S., period. PLASTICS remains eager to collaborate with the EPA, stakeholders and anyone who is willing to work towards our common goal of effective solutions to keep plastic waste out of the environment,” concluded Seaholm. PLASTICS’ comments state that the EPA’s draft strategy should: Recognize plastics serve a critical and sustainable role in modern life and have more than “some potential benefits.” Acknowledge that innovations in product and material design have outpaced our infrastructure, negatively impacting our country’s ability to recycle at acceptable levels. Revise a draft consistent with the bipartisan legislation that directed the EPA to develop a strategy to improve post-consumer materials management and infrastructure, not pre-production and product restrictions. Foster circularity, not advocate production limits. Hold all materials to the same standard and recognize that plastics often outperform other materials environmentally. Revise the draft strategy following appropriate, thorough stakeholder engagement in a transparent process to develop practicable and achievable goals, gain and leverage greater collaboration necessary to achieve those goals.
Nominations open for Influential Woman in Trucking Award, Sponsored by Daimler Truck North America
The Women In Trucking Association (WIT) and Daimler Truck North America (DTNA) are seeking nominations for the 2023 Influential Woman in Trucking award. This prestigious award was created in 2010 to honor women in the transportation industry who make or influence key decisions in a corporate, manufacturing, supplier, owner-operator, driver, sales, or dealership setting. Nominees must also have a proven record of responsibility, mentorship, and serve as a role model to other women in the industry. “The number of women in the trucking profession continues to grow,” said Jennifer Hedrick, president and CEO. “We are honored to share their stories and mark their accomplishments through this award.” Nominations will be accepted through September 11. The winner will be announced at the upcoming WIT Accelerate! Conference & Expo Nov. 5-8 in Dallas, TX. Each finalist will serve as a panelist for the Unstoppable Women in Trucking You Must Know About panel discussion on Nov. 7. “As Women In Trucking’s results from the recently released 2023 WIT Index reflect, the representation of women in the industry continues to grow at all levels,” said Angela Lentz, chief people officer, Daimler Truck North America. “By highlighting the incredible accomplishments of women already in the industry, we can continue to improve that representation everywhere from truck cabs to C-suites while propelling the many companies represented forward with diverse perspectives.” Past recipients of the Influential Woman in Trucking award include: 2022 – Trina Norman, southern California feeder operations manager, UPS 2021 – Lily Ley, vice president and chief information officer, PACCAR 2020 – Kristy Knichel, president, Knichel Logistics and Jodie Teuton, co-founder, Kenworth of Louisiana 2019 – Ruth Lopez, director, transportation management, Ryder System, Inc. 2018 – Angela Eliacostas, founder and president, AGT Global Logistics 2017 – Daphne Jefferson, principal and executive coach, Jefferson Consulting Group, LLC (former deputy administrator, Federal Motor Carrier Safety Administration [FMCSA]) 2016 – Ramona Hood, president and CEO, FedEx Custom Critical 2015 – Kari Rihm, president and CEO, Rihm Kenworth 2014 – Marcia G. Taylor, CEO, Bennett International Group 2013 – Rebecca Brewster, president and COO, American Transportation Research Institute (ATRI) 2012 – Joyce Brenny, founder and CEO, Brenny Transportation, Inc./Brenny Specialized, Inc. 2011 – Rochelle Bartholomew, CEO, CalArk International Learn more and nominate at https://www.womenintrucking.org/influential-woman-in-trucking.