Women In Trucking Association announces its June 2023 Member of the Month
The Women In Trucking Association (WIT) has announced Stephanie Klang as its June 2023 Member of the Month. As a professional driver for 38 years with 4 million miles, she provides her knowledge and perspective as an industry advocate and driver ambassador. Klang began her career in the trucking industry in January 1980. At the time, there were very few driving schools and the regulations were more relaxed, so when she took the written test for her class A license, her husband was allowed to teach her on the job. The pair drove as a team for 15 years, traveling through 48 states. However, she was often treated as her husband’s helper or as an extra logbook. This changed in 1987 when she started her career at CFI, a growing company with an open-door policy, commitment to safety, and providing excellent equipment. From the first day, she was treated like a fully qualified driver and was able to flourish. Klang learned about WIT and its mission when Founder Ellen Voie was promoting ride-alongs in 2010. The next year, she was chosen to pick up Debbie Hersman, a board member for the U.S. National Transportation Safety Board (NTSB), in Washington D.C., and drive her to the Mid-America Trucking Show (MATS) in Louisville, Ky. A film crew was hired by Conway, her employer at the time, to capture the experience, launching Klang’s media career. Due to this successful event, she received Conway’s Constellation Award in 2012, an honor only awarded to five out of 30,000 employees. In 2013, she joined America’s Road Team (ART). As the only woman nominated, she became the third female driver in the history of ART. With the support of her company, Klang was able to attend several events a year and make a difference in enhancing the trucking industry’s image. In 2015, WIT developed its Image Team, a volunteer group comprised of professional drivers and industry experts who represent the spirit of the association and share their knowledge and experience with the media, at events, and more. Klang immediately jumped at the opportunity to be involved. Additionally, she offered her perspective and expertise by serving on the WIT board of directors. Klang achieved her goal of retiring from driving at the age of 60, but her influence on the trucking industry was far from over. After retirement, she transitioned into CFI’s marketing department to continue attending high school career days and truck shows. When the COVID-19 pandemic began in March of 2020, she took it as a sign to retire. However, in the fall of 2022, she felt called to continue her involvement with WIT as an Image Team member and driver ambassador for the association’s WITney trailer program, educating and amplifying how a career in transportation can be rewarding for women. She speaks at industry events, truck shows, and career days. “In my four million miles of driving in transportation, I came away with a few things,” said Klang. “Do the right thing when no one is watching; nothing great is achieved easily or without grit; if you do not like where you are in life, improve yourself and move up; practice and improve every day; and be positive and kind. On the days I did not feel my best, I got up and fulfilled my obligations anyway and they turned out to be some of my best days.”
National Forklift Safety Day 10th Anniversary to feature Government and Industry experts
Industrial Truck Association’s June 13 event emphasizes safety training and practices The 10th Anniversary of National Forklift Safety Day will take place both in person and virtually on Tuesday, June 13, 2023, from 9:00 – 11:00 a.m. (Eastern) at the National Press Club in Washington, D.C. National Forklift Safety Day serves as an opportunity for forklift manufacturers and the industry to highlight the safe use of forklifts, the value of operator training, and the need for daily equipment checks. Open to the public, National Forklift Safety Day will be available virtually by visiting the Industrial Truck Association’s website. The format for 2023 will include presentations from government representatives, safety experts, and industry representatives. The speakers for National Forklift Safety Day 2023 include: Brian Feehan, President, Industrial Truck Association Chuck Pascarelli, ITA Chairman of the Board and President, Americas, Hyster-Yale Group Douglas Parker, Assistant Secretary of Labor for Occupational Safety and Health Administration (OSHA) Michael Wood, Senior Vice President for Quality, Health, Safety and Environment (QHSE), TEAM Industrial Services Ed Stilwell, Innovation Chief Technologist, Hyster-Yale Group Information about National Forklift Safety Day is available on ITA’s website at www.indtrk.org/national-forklift-safety-day.
Episode 387: Demystifying sustainability with Gravity
In the latest episode of The New Warehouse Podcast, Saleh Elhattab, founder and CEO of Gravity, joins Kevin to discuss sustainability in warehousing. Gravity is a platform that helps organizations understand and reduce their carbon emissions. Saleh’s passion for physical industries intersects with his belief in climate risk and assisting organizations to participate in creating a more sustainable future. As businesses face an increased demand to measure their carbon footprint and understand the impact of their operations on the environment, Gravity offers a comprehensive solution. Tune in to learn more about how Saleh and Gravity are making a difference. Carbon Footprinting: Understanding Your Emissions Carbon footprinting is the process of knowing an organization’s or service’s emissions, which are found in the transportation, manufacturing, and construction sectors and, according to Elhattab, comprise 24% of global emissions. Standardization has been used to calculate emissions for two decades, with the Greenhouse Gas Protocol being a canonical example. The quality bar is rising regarding data used in calculations, moving away from industry averages. This shift highlights the importance of accurate and reliable data in understanding and reducing emissions. Elhattab emphasizes the importance of accurate emissions calculations: “As businesses strive for sustainability, it is crucial to move beyond industry averages and focus on empirical data rooted in an organization’s operations. By tracking real-world activities such as fuel consumption and energy mix, we can obtain high-quality data that enables precise emissions calculations and supports informed decision-making for a greener future.” Gravity: A Comprehensive Solution Gravity helps organizations meet immediate disclosure requirements, find reduction opportunities, and understand the cost implications on a single platform. They are demystifying sustainability by providing a user-friendly and efficient way to manage emissions data that enables businesses to focus on implementing solutions that contribute to a more sustainable future. Low-hanging fruit solutions to reduce emissions include switching to LED lights and electric heat pumps and looking into alternative fuel sources such as electric vehicles for transportation and delivery. Overcoming Challenges in the Pursuit of Sustainability Organizations may face challenges when striving for sustainability, including a lack of shared language, regulation, and access to technology. Businesses can overcome these challenges and work towards a more sustainable future by taking action and collaborating with knowledgeable partners. Elhattab emphasizes the importance of finding someone to lead the charge and partnering with experts who can guide how to begin. Key Takeaways: The demand for measuring and reducing carbon footprints is growing, highlighting the need for businesses to prioritize sustainability. Gravity offers a comprehensive solution that helps organizations understand their emissions and identify reduction opportunities. Overcoming challenges in sustainability requires strong leadership and collaboration with experts. The New Warehouse Podcast EP 387: Demystifying Sustainability With Gravity
Cracking the Code: Aligned Incentives + Meaningful Consequences = Solid Results
“They want us to give great service, but they reduce our bonus if our calls go longer than three minutes. I’m not going to lie, I start talking faster at the 90-second mark.” “She asked me to suggest ideas, so I did. I now have a whole bunch of extra work to do. It’s the last time I’m opening my mouth. I didn’t realize offering an idea meant signing up to execute it.” “I get paid for selling products. Deep down, I know some of my customers don’t need what I’m recommending, but I do it anyway. Nothing has happened to me as far as consequences go, but how wrong can it be if nobody is complaining? I’m not proud, but I am getting decent checks. It’s a living.” “We’re supposed to be polite, but most people aren’t. Nobody does anything about it. I guess that’s how business goes around here. I don’t know why I keep trying.” Wow! Incentives and consequences have power. Are you motivating the right behavior, or are you encouraging people to act in ways you don’t want? Misguided incentives or misaligned consequences have a huge downside. The good news is with careful thinking, you can avoid missteps. The Downside of Misguided Incentives: Short-Term Focus: In many cases, businesses with misguided incentives prioritize short-term gains over long-term sustainability. Employees who are only rewarded for immediate financial results or quick wins may overlook the importance of investing in innovation, customer satisfaction, and employee development. This narrow focus can limit the organization’s ability to adapt to changing market conditions and remain competitive in the long run. Do you focus only on the here and now, or do your incentives and consequences take the long-term into account? Unethical Behavior: Misaligned incentives can lead to unethical behavior within an organization. Employees who are rewarded for meeting sales targets, for example, may resort to aggressive tactics, dishonesty, or cutting corners to meet those targets. This undermines trust, harms the company’s reputation, and puts it at risk of legal and regulatory consequences. What kind of ethics do your incentives encourage? Silo Mentality: Incentives designed without considering the broader impact on different departments or teams can foster a silo mentality. When employees are rewarded based on individual performance metrics, collaboration, and knowledge-sharing may suffer. This lack of cooperation can stifle innovation, impede problem-solving, and limit overall organizational effectiveness. Do your incentives and consequences encourage hoarding and silos or do they promote information sharing and collaboration? Demotivation and Disengagement: Incentives that are meaningless can demotivate employees and create a sense of disengagement. Employees may lose intrinsic motivation and become disillusioned if the rewards do not align with their values, interests, or aspirations. This can result in decreased productivity, higher turnover rates, and a general decline in morale. Do employees care about the rewards or consequences you have in place? Tunnel Vision: Employees may develop tunnel vision when incentives are narrowly focused on a single metric or objective, ignoring other critical aspects of their roles. For example, if sales representatives are solely focused on meeting sales targets, they may overlook the value of developing long-term customer relationships or providing exceptional service. In the end, those choices will most likely lead to customer dissatisfaction and reputational harm. Building Effective Incentive Structures A strong system that is aligned with goals and values and regularly applied is the best offense and defense an organization plays. Align with Long-Term Goals: Think about what matters. For example, are you focused on customer retention and satisfaction? If that’s the case, incentives should support those results. Additionally, there should be consequences to address behaviors employees choose that negatively affect retention and satisfaction. For instance, if the employees are rushing interactions, at a minimum, they should not receive a reward. Ideally, managers should address the behavior. Foster Ethical Standards: When people do the right thing, they should receive recognition. When the opposite occurs, management must act quickly to coach, and correct, or cut ties if the first two approaches don’t align behavior. When unethical behavior is ignored, an aggressive cancer can develop. Left unchecked, what’s wrong can quickly become what’s normal. Balance Individual and Team Goals: Strike a balance between individual performance and team collaboration. When designing incentives, promote both individual achievements and collective success, encouraging employees to collaborate and share knowledge. Additionally, think about the consequences. How will you handle those who hoard and don’t think about the group’s success? Evaluate and Adapt: Continuously review and evaluate the effects of your choices. Solicit feedback from employees, monitor unintended consequences, and make necessary adjustments to ensure incentives remain relevant and aligned with evolving organizational goals. Incentives and consequences are powerful tools that can shape employee behavior and drive business outcomes. When designed and implemented correctly, incentives can fuel productivity, innovation, customer service, and sales. Furthermore, carefully chosen consequences can mean the difference between the right choice and the wrong one. About the Author: Kate Zabriskie is the president of Business Training Works, Inc., a Maryland-based talent development firm. She and her team provide onsite, virtual, and online soft-skills training courses and workshops to clients in the United States and internationally. For more information, visit www.businesstrainingworks.com.
Staffing employment dips slightly in May
Staffing employment dipped slightly in the week of May 8-14, with the ASA Staffing Index decreasing by 0.4% to a rounded value of 99. Staffing companies did not mention any one primary factor as a barrier preventing further growth. Staffing jobs were 6.4% below the same week last year. New starts in the 19th week of the year were stable, inching down just 0.1% from the prior week. Almost four in 10 staffing companies (38%) 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 99, and temporary and contract staffing employment for the four weeks ending May 14 was 6.5% lower than the same period in 2022. “After four straight weeks of staffing job growth, staffing employment has started to retreat,” said Tim Hulley, ASA assistant director of research. This week will be used in the May monthly employment situation report scheduled to be issued by the U.S. Bureau of Labor Statistics on June 2. The ASA Staffing Index is reported nine days after each workweek, making it a near real-time measure of staffing employment trends. ASA Staffing Starts are the number of temporary and contract employees placed in new assignments during the reporting week. ASA research shows that staffing employment has historically been a coincident economic indicator.
143 new Industrial Manufacturing Planned Project in March 2023 with Q1 expansion increases MoM
IMI SalesLeads has announced the April 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 143 new projects in the Industrial Manufacturing sector. The following are selected highlights on new Industrial Manufacturing industry construction news. Industrial Manufacturing – By Project Type Manufacturing/Production Facilities – 126 New Projects Distribution and Industrial Warehouse – 68 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 44 New Projects Expansion – 58 New Projects Renovations/Equipment Upgrades – 51 New Projects Plant Closings – 11 New Projects Industrial Manufacturing – By Project Location (Top 10 States) Georgia – 11 Michigan – 9 Ontario – 8 New York – 7 Pennsylvania – 7 Tennessee – 7 Texas – 7 Ohio – 6 California – 5 North Carolina – 5 Largest Planned Project During the month of April, our research team identified 23 new Industrial Manufacturing facility construction projects with an estimated value of $100 million or more. The largest project is owned by Bosch, who is planning to invest $2 billion for an expansion of a recently acquired manufacturing facility at 7501 Foothills Blvd. in ROSEVILLE, CA. Completion is slated for 2026. Top 10 Tracked Industrial Manufacturing Projects ONTARIO: Automotive mfr. is planning to invest $1 billion for the renovation and equipment upgrades on their manufacturing facility in OAKVILLE, ON. Construction is expected to start in Spring 2024. ALBERTA: Building materials mfr. is planning to invest $1 billion in the construction of a processing plant in EDMONTON, AB. They are currently seeking approval for the project. Completion is slated for 2026. OREGON: Wood products mfr. is planning to invest $700 million in the construction of two manufacturing facilities at their manufacturing complex in DILLARD, OR. Completion is slated for 2025. The project also includes equipment upgrades on their manufacturing facilities in RIDDLE, OR, and COQUILLE, OR. KENTUCKY: Battery component mfr. is planning to invest $504 million for the construction of a 350,000 sf manufacturing facility in HOPKINSVILLE, KY. Construction is expected to start in late 2023, with completion slated for early Spring 2025. NEW YORK: Diesel engine mfr. is planning to invest $452 million for the renovation and equipment upgrades on its manufacturing facility in JAMESTOWN, NY. They are currently seeking approval for the project. PENNSYLVANIA: Semiconductor mfr. is planning to invest $300 million for the expansion, renovation, and equipment upgrades on their manufacturing complex in TAMAQUA, PA. They are currently seeking approval for the project. OHIO: Automotive mfr. is planning to invest $280 million for a 1 million sf expansion of their engine manufacturing facility at 101 W. Campus Blvd. in BROOKVILLE, OH. They are currently seeking approval for the project. GEORGIA: Metal recycling company is planning to invest $275 million for the expansion of their processing facility in AUGUSTA, GA. They are currently seeking approval for the project. Completion is slated for 2026. WISCONSIN: Plastic film mfr. is expanding and planning to invest $270 million for the construction of a 130,000 sf manufacturing facility in MILTON, WI. They have recently received approval for the project. The site will allow for additional expansion. FLORIDA: Specialty building materials mfr. is planning to invest $270 million for the construction of a 408,000 SF manufacturing facility in JACKSONVILLE, FL. They are currently seeking approval for the project. About IMI SalesLeads, Inc. Since 1959, IMI SalesLeads, based in Jacksonville, FL is a provider 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.
Salespeople: “Never fail again” Here’s how!
One of the greatest fears of salespeople is failure. Early in his career, the late David H. Sandler, founder of the Sandler Sales Institute, created a mechanism that prevented him, or any salesperson who uses it, from ever failing again. The following adaptation from You Can’t Teach A Kid To Ride A Bike At A Seminar, by David H. Sandler and John P. Hayes, explains Sandler’s technique The Upfront Contract. John Hayes recalls a magic moment in the book where David Sandler recounts how The Upfront Contract was born. One day, the thought occurred to Sandler that all he really needed to do was establish an agreement with a prospect to see if they had anything to discuss. That took the pressure off trying to close the sale. If they agreed they had something to discuss, they could continue to determine if they should do business together. If there was nothing to discuss, however, no harm done. There was no need to try to sell the prospect. By establishing the agreement or a contract before Sandler tried to sell his services, he could call on anyone and never risk failing. Sandler couldn’t fail trying to get an upfront contract. Either he got a commitment to continue, or he didn’t. If he did, all the better, and if he didn’t, Sandler was out the door, no regrets. Suddenly, selling became more of a game than a risk or a challenge. If you think of selling as a game, then you’ll find it appropriate to use The Upfront Contract. Every sport uses one. Before a baseball game, the umpire calls the managers from the opposing teams to home plate, and they discuss the rules of the game. They agree on what’s foul and fair, what makes a home run, and they review any unusual circumstances about the ballpark. Later, during the game, if a batter hits a ball behind the catcher, up over the screen, and into the crowd, there’s no argument that it’s a foul ball. . . Why don’t salespeople take the same approach? What could be more honest than to establish a set of rules at the beginning of interacting with a prospect? An Upfront Contract, or better yet, a series of Upfront Contracts, will save time for both you and the prospect, and help you make more money in sales without offending anyone. By always arriving at an agreement up front, you and the prospect can avoid misunderstandings, as well as the rhetoric and posturing that often occurs during the selling dance. An Upfront Contract improves communications and greatly enhances the profession of selling. Here are some samples of how to form Upfront Contracts: When you meet your prospect (either on the phone or in person), say something like this: “Jim, let’s set some ground rules for our meeting. I’d like to have the opportunity to ask you some questions about your business, and I’d also like you to ask me anything you’d like about my product. Is that okay with you?” (First Upfront Contract). As we ask and answer each other’s questions, “Jim, we may decide there isn’t a fit between what you need and my product. We may decide it doesn’t make sense to spend any more time together. If we reach that point, are you comfortable telling me that?” (Second Upfront Contract). “On the other hand, if you see that my product makes sense to you, we can decide to move forward. Okay, Jim?” (Third Upfront Contract). “When we finish today, Jim, we can set up the ground rules as to how you and I will proceed. Is that satisfactory?” (Fourth Upfront Contract). See how it works? The more often Sandler used upfront contracting in sales calls, he discovered there was rarely a need to make a presentation. . . Why? Because when you create a series of contracts, prospects can experience how your product or service will fulfill their needs. As you develop the contracts, you gently guide the prospects to see that your product or service can eliminate the problem or provide the solution. By establishing Upfront Contracts, you’re not guaranteed to get every order. . . However, establishing Upfront Contracts will guarantee your control of the selling process, every step of the way. As a salesperson, you’ll get in the habit of never making a move without knowing in advance what will happen when you do. Even small items require an Upfront Contract. For example, your prospect asks you to call back on Thursday, but you don’t know why. Gently say, “Sally, I’ll be happy to call you on Thursday. . . what will happen when we talk on Thursday?” Before you give up control of a selling situation, take the opportunity to get an Upfront Contract. Upfront contracting won’t be easy because it’s asking you to change your behavior. At first, it’s going to feel awkward, but the more you use the technique, the faster you’ll master it. One final word: The most important Upfront Contract you will ever make is with yourself. It’s the contract that says nothing will drive you out of sales. The only way you can break that contract is to quit. Don’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.
Top tips to keep Forklift Fleet Operators safe
Forklifts are an everyday essential in material handling operations, which is why forklift safety is a top priority in the industry. Ninety percent of Class 4 and 5 forklifts are powered by propane, which is why proper propane safety practices are an important priority for crews across the country. With safety top of mind this June, below are some of the top tips for operators, floor workers, and truck drivers alike to stay safe around forklifts. Universal Forklift Safety Tips Complete routine checks of equipment before operating and notify management of damages or problems. Wear proper PPE such as hard hats, protective footwear, eyewear, and high-visibility clothing on the warehouse floor and while operating a forklift. Buckle up every time. This may seem obvious, but it’s an essential tip to remember. Overturned forklifts are a leading cause of forklift-related accidents. Move slowly and use the horn. Collisions could happen when vision is obstructed. Using the horn at every intersection will keep pedestrians and other operators safe. Know your forklift’s weight capacity and adhere to it. Exceeding the weight capacity of a forklift significantly increases the risk of tipping and injury. Lower, park, and set. Always lower the forks, use the parking brake, and set the controls to neutral when finished operating a forklift. Safely parking the machine reduces the risk of unintended movement and injury. Use wheel blocks to secure the forklift further, especially if parking on an incline. Mind the ramp. Drivers should always carry a load pointing up an incline with their heads pointed in the direction they are going. If unloaded, keep the forks pointed downgrade. Inspect forklift fleets regularly. Regular maintenance helps prevent unnecessary damage to the equipment and keeps employees safe. Keep forklifts clean and free from excess oil and grease. Propane Forklift Safety Tips Inspect propane cylinders before operation. Check cylinders for rusting, dents, gouges, and leaks. Cylinders that show signs of wear or leaks shouldn’t be used and may need to be replaced, even if within the cylinder’s requalification date. Use proper lift techniques to place a cylinder onto a forklift and wear protective gloves. Carefully place the cylinder into the cradle so the cylinder pin enters the locating hole in the cylinder collar. Once properly situated, secure the cylinder by tightening the brackets and check for leaks using a leak detection solution. Secure the pressure relief valve on the cylinder. Before connecting, confirm the cylinder valve is closed. Once placed in the cradle, operators should check that the pressure relief valve fitting is roughly 180 degrees from the forklift’s locating pin. Firmly tighten the gas line to the service connection. Close the service valves on cylinders when not in use. This helps prevent potential injury around internal combustion engines and unintended fuel loss. Store propane cylinders in a secure rack or cage. The cylinders should be stored horizontally with the pressure relief valves in the uppermost position, and operators should use proper lifting techniques when removing cylinders from storage and placing them onto a forklift. Propane cylinder storage racks must be located at a safe distance from heat or ignition sources, protected from the elements, and kept away from stairwells and high-traffic areas. Warehouses, factory floors, and distribution centers have many moving parts as well as people coming and going. With proper signage, training, and storage, propane is a safe energy source to power forklifts year-round, both indoors and out. Remember to regularly review safety measures with forklift operators and workers not just during the month of June, but every day. To learn more about propane forklifts, visit Propane.com/forklifts. About the Author: Gavin Hale is the Vice President of Business Development of the Propane Education and Research Council. The Propane Education & Research Council is a nonprofit that provides leading propane safety and training programs and invests in research and development of new propane-powered technologies. PERC is operated and funded by the propane industry. PERC programs benefit a variety of markets including transportation, agriculture, commercial landscaping, residential, and commercial building.
Balance sheet Part 2
There is no doubt that Balance Sheet Management needs to be a top priority for Dealer Management. Dealers have a lot of money tied up in the Balance Sheet and with current economic and industry dynamics changing it will be imperative that Dealers be able to convert Balance Sheet Assets into CASH. Sounds like another MTM conversation but it is not. I have been doing my normal economic daily review which entails about 100 email sources plus hours listening to CNBC and Bloomberg to try and anticipate future activities that will impact the equipment business in terms of material handling equipment as well as construction equipment. And as of April 19, 2023, I am taking a stand that: Rates will remain higher and last longer. Inflation factors considered by the Fed are slowing but the remaining factors the Fed has no control over are sticking. The recession will happen if we are not in one already, Banks will be tough to deal with for the foreseeable future. The EV conversion is moving much faster than anticipated. Any customers with any connection to the auto industry can expect major changes in their company activities. OEMs, Dealers, and Customers will probably change the way they do business because they have to. Most items on your Balance Sheet will probably be impacted by the above. Your homework assignment for this evening is to figure out what your Balance Sheet will look like a year from now (especially the cash account). A typical deal Balance Sheet would look like this: On the ASSET SIDE 2% Cash 28% AR 28% Inventory 40% Fleet and Fixed Assets On the LIABILITY & EQUITY SIDE 11% AP 17% NP -current 7% Other Current Lia 25% Long Term Lia 38% Equity So, what do you think? How will the changes discussed above positively or negatively impact your balance sheet, understanding that changes in the Balance Sheet can leave you with either a higher cash balance or a lower cash balance? Hey, maybe we should turn this into a game and see who comes out with the biggest cash balance. The company with the largest cash amount will be featured in my Cover Story for the September issue. Just send me your starting Balance Sheet and a Balance Sheet a year later and we will assign a code number to it to keep it confidential. Dean even said he will give a full-page ad to the winner. Please email the two balance sheets above to me by July 7th. Email them to editorial@MHWmag.com. I guess the first thing I would do is compile a couple of revenue stream projections covering current lines of business as well as what you would expect from changes your OEMs will make and how those new items will price out and how will they compare maintenance wise with what you are selling now. And I guess you would want to include any new products or service lines you may add to support customers and their current needs. Don’t forget to factor in inflation as well as new cost line items needed to support new business. Next, I would get a list of my top 50 customers and determine if they are “auto” related in any way, shape, or form. I guess any company with EV exposure also falls into this category. My fear would be that they will no longer need the number of units owned or rented. Finding this out sooner rather than later allows you to plan to replace “lost” business while at the same time helping them downsize their fleet by selling off the units for them. My biggest fear would be the ultimate value and use of what you have hiding in your parts inventory and used equipment inventory. This is usually a scary scenario. What is interesting is the value can probably increase as supplies disappear, but at some point, sink like a rock as demand disappears. A timing issue for sure. Me, I would sell off what I could now as prices are elevated and convert the assets into cash. The goal here would be to get rid of slow-moving or sure-to-be slow-moving inventory and units to make room for replacement units and related maintenance items. You have to be a little careful here because your Assets are supporting those loans you have on the books in terms of an operating line and equipment purchase long-term notes. Sell off too much and the bank will want a piece to put their ratios back in order. My guess is that new unit revenues will increase for some time but that support revenues will decline as new units become more efficient and thus require less maintenance. I also expect rental revenues to increase but with some new rental scenarios coming into being. And let’s not forget that there are OEMs now planning to sell direct, which puts you in the service and maintenance business, which may not be a bad idea. In the end, however, whatever plan you come up with needs to pay off related debt before you can move on to another business plan. What we are discussing here is not easy to get your hands around. I would suggest that conversations with all OEMs are in order to see what they have in mind, especially for your region. Who knows, this may also be a good time to add other companies into your fold if their management is not ready to deal with this new business environment. About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993. E-mail editorial@mhwmag.com to contact Garry.
Registration opens for fall session of SafetyFOCUS
Registration is open for the fall session of SafetyFOCUS, the semi-annual in-depth education experience from the American Society of Safety Professionals (ASSP). The hybrid event will take place Sept. 18-22 in Arlington, VA, and online, helping workplace safety and health professionals expand their knowledge through collaborative learning and engaging discussions on a broad range of topics. Using case studies, real-life examples, and proven successes, expert instructors will explore key issues and provide new perspectives and strategies to help solve real-world safety and health challenges. SafetyFOCUS is ASSP’s second-largest education event, which was expanded to twice a year in 2022. The one-, two- and three-day courses are standards-based and focus on business and leadership skills, certification preparation, fall protection, risk assessment and management, safety management systems, and comprehensive worker health. Attendees build their own schedule to fit their unique professional development plan, whether they are new to the industry or a seasoned professional. In-person courses will take place at the AMA Washington Area Conference Center. Instructors will facilitate courses from 9 a.m. to 5:30 p.m. ET each day. Online education will be accessible through ASSP’s Live Virtual Classroom via Zoom. Participants will have the same positive and focused learning experience whether they attend in person or online. Attendees who register for the full week of training either in person or online can earn up to 3.5 continuing education units (CEUs) that will help them maintain a range of professional certifications. Participants will also expand their professional networks and take away relevant information and practical guidance they can immediately implement to help their organizations prevent worker injuries, illnesses, and fatalities. Safety and health professionals can get the discounted early rate by registering online by June 29. Groups of five or more from the same company can save even more by contacting ASSP Customer Service at customerservice@assp.org. ASSP members save on registration and receive discounts on all of the Society’s education, training, and workplace safety standards. First-time attendees who have never been an ASSP member will receive a free one-year membership and complimentary memberships in a practice specialty and common interest group.
In pursuit of safety
Safety in the workplace is a goal offering numerous benefits. From aiding in worker retention and meeting standards to ensuring the best for employees, safety is one of the keys to an organization’s success. New designs making an impact One company that has been bringing its safety technology to the industry in recent years is seeing some positive results. HeroWear designs exosuits that aid workers in performing demanding movements at work, according to the business website. “It was born out of a research project at Vanderbilt University,” said Mark Harris, co-founder, and chief executive officer of HeroWear. Dr. Karl Zelik, a biomechanical engineer, had experienced back pain from lifting two small children, according to Harris. “He thought, ‘Could I design something that would take the load off my back and wear every day?” said Harris, who said the concept led to several years of research and development at Vanderbilt. Harris said as the project grew from the research phase, it was introduced to companies and interest was strong. The idea formed of providing a solution to a major industry problem, namely, back pain and injuries. A prototype was launched and HeroWear was formed, announcing the HeroWear Apex. The exosuit is a flexible 3-pound suit that takes 75 pounds of strain off a back with every lift, according to the business website. “For some users, it’s actually closer to 125 pounds of back relief,” the site said. The exosuit is designed to support and assist the lower back muscles involved in repetitive lifting and bending activities, according to the website. It provides strength by functioning with a patent-pending on-off switch, the site said. The switch is “activated by a single, easy-to-use switch that can even be operated through personal protective equipment and coveralls,” the website said. HeroWear officials stress that the exosuit can be integrated with other types of safety equipment already in use. “It works fine on a pallet jack or a forklift,” Harris added. “This was important when we designed it.” Today, HeroWear has over 200 customers, according to Harris. Many companies want to test a launch of the product on a subset of workers and then expand use, he said. “Typically, we see companies start out with 10, 20, or 30 units. They will try them out on a number of workers,” said Harris, who said HeroWear works with its customers to ensure the Apex suits are sized per worker. “It’s really important that these fit very well or else you don’t get the biomedical advantage,” said Harris, noting that the exosuits are modular so pieces can be rebuilt for specific workers. The anecdotal reports from users have been positive, according to Harris. “What we hear a lot of after the first week is, ‘I’m going home and I’m not sore anymore. I can play with my kids. I’m not collapsing on the couch,” Harris said. “That’s what gets us really inspired.” The Apex 2, a redesign based on three years of research, was launched in mid-March, according to Harris. When working with a company, he stressed that HeroWear aims to learn more about how the operation functions. The company does recommend starting with more than a single exosuit. “There is a psycho-social aspect to this. You are putting something new on a worker. You need a critical mass of workers, so it becomes somewhat normalized,” said Harris, who said there is better success in a launch when several workers are wearing the exosuit. Having equipment like the HeroWear exosuit on hand can possibly help with employee retention as well, Harris noted. “These are really, really hard jobs. It’s that first few weeks or a couple of months when they realize how hard it is. If you can make the job a little easier, a smoother transition, we suspect that will improve retention,” he said. The bands on the exosuits are replaced every 12 -to-18 months and the textile base has a 4-to-5-year life, according to Harris. The company’s leaders imagine widespread use of the products in the future. “Our long-term vision is everybody has an exosuit in their garage. Like everyone has power tools. Maybe you don’t need it every day, but it’s there,” said Harris, noting that everyone needs to do some amount of lifting and leaning in their daily lives. He added that research shows about 80 percent of the population will experience back pain at some time in their lives. “It’s kind of crazy that we lift things now in the same way as the people who built the pyramids. The physics haven’t changed,” Harris said. “It seems like a pretty big opportunity.” Studying standards For those looking to stay up to date on robotics, Jeff Fryman offers courses through the Association for Advancing Automation, or A3. “I go through an overview of the basic safety requirements from the American national standard, the ANSI / RIA R 15.06,” said Fryman, a safety standards trainer through A3. He said his courses cover risk assessments and task-based methodology consistent with what the standards require. Class attendees are typically safety engineers or mechanical control engineers responsible for designing and implementing robot applications, according to Fryman. He also offers a class that is more in-depth on standard requirements. Fryman teaches both in-person and online. He noted that the international safety standards match up with the national requirements and has had students around the world for the classes. “There’s basically one worldwide robot standard,” Fryman said. “We’re working on the basic industrial robot, not the walking, talking supermarket-greeting robots.” The basic course is offered monthly and collaborative robot safety training is bi-monthly as a webinar on the A3 website at automate.org. For in-house classes, Fryman said he encourages a limit of 30 students in the room to enhance participation. Although the course is geared toward the manufacturers and integrators of the robots, Fryman said he does address the topic of users in the training and the importance the standards have throughout an organization. “If you have robots, you need to know about the standards for robot safety that covers
EEOC releases new resource on Artificial Intelligence and Title VII
Outlines Considerations for Incorporating Automated Systems into Employment Decisions Today the Equal Employment Opportunity Commission (EEOC) released a technical assistance document, “Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964,” which is focused on preventing discrimination against job seekers and workers. The document explains the application of key established aspects of Title VII of the Civil Rights Act (Title VII) to an employer’s use of automated systems, including those that incorporate artificial intelligence (AI). The EEOC is the primary federal agency responsible for enforcing Title VII, which prohibits discrimination based on race, color, national origin, religion, or sex (including pregnancy, sexual orientation, and gender identity). Employers increasingly use automated systems, including those with AI, to help them with a wide range of employment matters, such as selecting new employees, monitoring performance, and determining pay or promotions. Without proper safeguards, their use may run the risk of violating existing civil rights laws. “As employers increasingly turn to AI and other automated systems, they must ensure that the use of these technologies aligns with the civil rights laws and our national values of fairness, justice, and equality,” said EEOC Chair Charlotte A. Burrows. “This new technical assistance document will aid employers and tech developers as they design and adopt new technologies.” The EEOC’s new technical assistance document discusses the adverse impact, a key civil rights concept, to help employers prevent the use of AI from leading to discrimination in the workplace. This document builds on previous EEOC releases of technical assistance on AI and the Americans with Disabilities Act and a joint agency pledge. It also answers questions employers and tech developers may have about how Title VII applies to the use of automated systems in employment decisions and assists employers in evaluating whether such systems may have an adverse or disparate impact on a basis prohibited by Title VII. “I encourage employers to conduct an ongoing self-analysis to determine whether they are using technology in a way that could result in discrimination,” said Burrows. “This technical assistance resource is another step in helping employers and vendors understand how civil rights laws apply to automated systems used in employment.” The EEOC’s technical assistance document is part of its Artificial Intelligence and Algorithmic Fairness Initiative, which works to ensure that software—including AI—used in hiring and other employment decisions complies with the federal civil rights laws that the EEOC enforces. The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination.
MAY Gordon Report: How to repair America’s talent pipelines
Micron Technology Inc., based in Boise, Idaho, plans to invest $100 billion in a semiconductor-manufacturing campus in a suburb of Syracuse, New York. Once fully built this campus will employ 9,000 workers and possibly support 41,000 jobs for contractors and suppliers, Yet the highly skilled engineers and technicians needed for advanced chip manufacturing are in short supply across the United States. What steps are they and local community leaders taking for solving these critical talent shortages? Micron is seeking to develop a regional talent-creation pipeline through partnerships with K-12 schools and local colleges and universities. It is providing $10 million to local K-12 schools to bolster STEM education. Macron is cooperating with Onondaga Community College to develop a new degree program for chip technicians. Syracuse University is developing plans to greatly increase enrollments in its undergraduate and graduate engineering programs. The extent of Macron’s education partnerships is particularly notable. Education is a continuum. Even before the educational setbacks caused by COVID-19 restrictions, it was clear that K-12 education in the United States has not been providing a significant proportion of our students with the educational foundations needed for their future development The challenge we now face is only about one-third of our high school graduates leave school with reading and math comprehension at the twelfth-grade level. These skill levels are needed for the successful completion of post-secondary certificates, apprenticeships, community college two-year degrees, or four-year degrees. Cascading Challenges It seems likely that Micron will be affected by other types of skilled worker shortages. Micron’s Syracuse area expansion plans were spurred by the federal incentives offered by the Chips Act that was signed by President Biden in August 2022. Other companies have announced plans to build semiconductor manufacturing facilities in Arizona, Texas, and Ohio. Chip manufacturing plants have highly exacting construction specifications requiring specialized training. At the same time, growing international tensions and supply chain disruptions precipitated by the COVID pandemic are leading to the in-shoring of all types of manufacturing to the United States. Construction spending for manufacturing projects was the highest on record last year and is expected to remain elevated as there is a considerable backlog of nonresidential projects across the United States. A major reason for construction delays is worker skills shortages. In a recent survey conducted by the Associated General Contractors of America, 80 percent of the respondents reported difficulty in finding qualified workers. Last year U.S. businesses lost $2 trillion in productivity and profit due to skills-jobs disconnects. We estimate that there are over 27 million skilled and semi-skilled Americans who are not participating in today’s labor force. If their skills were updated through entry-level training, the impact on U.S. productivity would be substantial due to the magnitude of this hidden population. By 2030 Korn Ferry predicts that up to 90 million jobs worldwide could go unfilled. This could cost employers $8.5 trillion in profits. To meet the steeply escalating skill demands of the Fourth Industrial Revolution, more regions across the United States must develop a comprehensive approach to workforce development for a wide range of occupations in which employers and educational institutions cooperate in education and training programs that keep pace with technological advances. About the Author: Edward E. Gordon is the founder and president of Imperial Consulting Corporation in Chicago. His firm’s clients have included companies of all sizes from small businesses to Fortune 500 corporations, U.S. government agencies, state governments, and professional/trade associations. He taught in higher education for 20 years and is the author of numerous books and articles. More information on his background can be found at www.imperialcorp.com. As a professional speaker, he is available to provide customized presentations on contemporary workforce issues.
Session with OSHA’s Parker added to Safety 2023 in San Antonio
The American Society of Safety Professionals (ASSP) will again welcome Doug Parker, assistant secretary of labor for occupational safety and health, to a special general session at Safety 2023 in San Antonio. Parker will discuss the latest activities and future plans of the Occupational Safety and Health Administration (OSHA) to protect workers across the country. The newly added session to ASSP’s annual conference and exposition will start at 10:30 a.m. CT on Wednesday, June 7, in front of thousands of workplace safety and health professionals. It will be held in the Stars at Night Ballroom at the Henry B. Gonzalez Convention Center, 900 E. Market Street, along the River Walk. Parker will present “An OSHA Update” that will include regulatory priorities, enforcement actions, and outreach initiatives. The 60-minute session will include an interactive Q&A with questions submitted via text by attendees. Afterward, Parker will meet with journalists at 11:45 a.m. Parker became the 13th assistant secretary of labor for occupational safety and health on Nov. 3, 2021. He participated in a similar session last June at Safety 2022 in Chicago. The special session will be part of a dynamic three-day program designed to inform and inspire occupational safety and health professionals attending ASSP’s signature event, held June 5-7. Safety 2023 is the 62nd annual conference of the world’s oldest professional safety organization. ASSP is headquartered in the Chicago suburb of Park Ridge. Safety 2023 attendees can register online, with groups of eight or more from the same company qualifying for a discount. Stay informed of the latest conference news at safety.assp.org.
The biggest risk to your business is what you actually see coming
We’re in flood season here in the Midwest. Waters are rising, but it’s not like in the movies, where a torrential flood sweeps across the landscape in seconds, and people are running for their lives. It’s actually quite uneventful. Temporary barriers get put up in streets over the course of multiple days. Water starts to be visible in grassy areas closest to the river, like a series of little splash pools. But within a couple of weeks, standing water will be 10 feet high or more behind those barriers, covering multiple city blocks. In fact, our town saw a breach in those barriers, which caused the water to inundate 12 city blocks, businesses, residences, and people had to be rescued by boat. Floods are typically predictable. There are forecasts which discuss river levels, and projections for where the water will rise to and over what period of time. No one dismisses these projections, and we always prepare accordingly. But these floods don’t happen because there’s monsoon-level rain in the area. It happens because of extensive snow hundreds of miles north of us. The snowpack depth and melting rate where the Mississippi River begins determines our level and timing of flood risk. While most companies don’t have this type of clear correlation or prediction capability to determine what will impact their organization, each and every company has its own proverbial ‘flood risk’. While we often view risks in the form of technology, competition, talent, or products, the trickiest risk is that which moves slowly over a long period of time. One that you don’t notice until the ‘water has breached the wall’ and even then, it still just seems like a puddle that you don’t have to really worry about. This type of risk is the most overlooked and usually is the result of companies having an overly tight vision of the world around them. They look at their past success, often tied to a specific business model and organizational structure, and say, “This works. let’s keep doing it.” They don’t think about the snowpack in Minnesota – that’s too far away. It won’t impact us. Because they don’t think about it, they don’t change or prepare for the ‘flood’ – i.e., examine what’s changing in the customer landscape including new ways of communicating, engaging, and serving, and act on it – but rather continue down the same path. The flood waters start to rise. They see ponding and high river levels – i.e. customer attrition and challenges in securing talent – but they believe this will pass. After all, it doesn’t flood every time the river levels get high. Then the water starts to get higher. It starts to cover the street. Still, the belief is the water will recede naturally, and it won’t reach the building. Then the roads become impassable. Water is coming into the ground floor and beginning to damage property. Sandbagging begins – i.e. scrambling to make organizational changes and reducing headcount – but it’s now too late. It’s either hope and pray for the waters to go down or get the lifeboats out. The point of this story is that the real threats to businesses are those that move slowly. They come from areas so far afield from your own business and industry that you don’t consider them to be threats. You just move along day-to-day like everything’s fine. Not until it’s at your doorstep do you decide to act. Consider what your own ‘flood risk’ is, and whether you are actively working to mitigate that risk. More often than not, you’re watching the flood waters rise and you don’t even know it. 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.
ALAN opens nominations for 2023 Humanitarian Logistics Awards
Annual Awards Honor Extraordinary Supply Chain Relief Efforts The American Logistics Aid Network (ALAN) has officially opened nominations for its seventh annual Humanitarian Logistics Awards, and it’s asking for your help in identifying some of this year’s most deserving honorees. “Many don’t realize how great a role the commercial supply chain community plays in facilitating and supporting humanitarian relief efforts,” said ALAN Executive Director Kathy Fulton. “These awards were created to shine a light on that generosity and to honor our industry’s most selfless companies and individuals. While ALAN works closely with a lot of these organizations to aid disaster relief efforts, there are still many others that we won’t be made aware of – and able to honor – unless someone takes the time to nominate them.” Nominations (including self-nominations) can be made via ALAN’s website (https://www.alanaid.org/humanitarian-awards-nomination/) between now and June 25th. Winners will be announced this fall at the annual CSCMP Edge Conference. ALAN’s Humanitarian Logistics Awards are open to any logistics professional, academic, organization, or department. They are awarded in four key categories, each of which can have multiple honorees: Outstanding Contribution To Humanitarian Logistics Employee Engagement Research And Academic Contributions Lifetime Achievement For a full list of rules and nomination criteria visit https://www.alanaid.org/wp-content/uploads/2023/04/Humanitarian-Logistics-Awards-2023-Nomination-Info.pdf
Keynote sessions highlight Safety 2023 in San Antonio
The American Society of Safety Professionals (ASSP) has unveiled a plenary session that will join two general sessions in a dynamic program designed to inspire, entertain and inform attendees of the Safety 2023 Professional Development Conference and Exposition in San Antonio. ASSP’s signature event will take place June 5-7 at the Henry B. Gonzalez Convention Center along the River Walk. Thousands attend the occupational safety and health event each year to grow their knowledge and skills while meeting experts who can help them advance their careers and elevate safety at their companies. Safety 2023 will highlight best practices, industry trends, and the latest product innovations. “We are excited about what’s in store for attendees, knowing they will be energized and well-informed to better protect workers in all industries,” said ASSP President Christine Sullivan, CSP, ARM. Here is a summary of the three general and plenary sessions planned for Safety 2023: ● Opening general session at 8 a.m. CT Monday, June 5: “5 Strategies to Songwriting: AKA Building Valuable Relationships.” Storyteller and songwriter Jimmy Yeary has spent 30 years writing No. 1 songs and performing as the lead singer of the Grammy Award-winning country group Shenandoah. Yeary has realized the parallels between his songwriting and storytelling and successful communication. His message brings emotional awareness, connection, and shared experiences to the forefront, helping attendees build effective relationships. ● Plenary session at 1 p.m. CT Tuesday, June 6: “How We Can Lead Workplace Safety and Health in New Ways.” Many safety professionals have moved from playing the “safety cop” in their organizations to becoming invested partners in helping to create inclusive workplaces that embrace safety innovation and drive productivity. A moderated three-person panel of safety leaders will share how they increased their impact through a systems view and focus on building relationships as a foundation for change, rather than rules, control, and discipline. ● Closing general session at 2:30 p.m. CT Wednesday, June 7: “The Power of Choice.” Army veteran and Paralympic athlete Melissa Stockwell was deployed to Iraq after college. A roadside bomb made her the first American woman soldier to lose a limb in active combat. What followed was a story of resilience, perseverance, and the indomitable spirit of a woman who chose not only to survive but to thrive. Now a medalist and world record holder, she will redefine common perceptions of disability and inspire attendees to rethink their own limits. At the expo, nearly 500 companies will showcase innovative safety solutions that can help organizations reduce injuries, illnesses, and fatalities. An all-new Career Advancement Center will make its debut on the expo floor, designed to help safety professionals at every stage of their careers. Safety professionals should register online by May 4 to beat a rate increase. Groups of eight or more from the same company can save on the entire conference by contacting ASSP’s Nancy O’Toole at 847.768.3466 or notoole@assp.org. ASSP is also offering an expo-only pass for the third straight year. Stay informed of the latest Safety 2023 news and current safety and health protocols at safety.assp.org.
AAR reports rail traffic for the week ending April 22, 2023
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending April 22, 2023. For this week, total U.S. weekly rail traffic was 480,457 carloads and intermodal units, down 3.5 percent compared with the same week last year. Total carloads for the week ending April 22 were 240,584 carloads, up 5.1 percent compared with the same week in 2022, while U.S. weekly intermodal volume was 239,873 containers and trailers, down 10.8 percent compared to 2022. Six of the 10 carload commodity groups posted an increase compared with the same week in 2022. They included coal, up 10,985 carloads, to 68,879; motor vehicles and parts, up 1,396 carloads, to 14,643; and metallic ores and metals, up 812 carloads, to 23,062. Commodity groups that posted decreases compared with the same week in 2022 included grain, down 1,034 carloads, to 22,013; forest products, down 886 carloads, to 8,875; and chemicals, down 505 carloads, to 34,298. For the first 16 weeks of 2023, U.S. railroads reported a cumulative volume of 3,693,811 carloads, up 0.5 percent from the same point last year; and 3,723,234 intermodal units, down 10.9 percent from last year. Total combined U.S. traffic for the first 16 weeks of 2023 was 7,417,045 carloads and intermodal units, a decrease of 5.6 percent compared to last year. North American rail volume for the week ending April 22, 2023, on 12 reporting U.S., Canadian, and Mexican railroads totaled 346,012 carloads, up 5.0 percent compared with the same week last year, and 320,991 intermodal units, down 10.3 percent compared to with last year. Total combined weekly rail traffic in North America was 667,003 carloads and intermodal units, down 3.0 percent. North American rail volume for the first 16 weeks of 2023 was 10,268,381 carloads and intermodal units, down 3.8 percent compared with 2022. Canadian railroads reported 81,037 carloads for the week, up 4.4 percent, and 64,915 intermodal units, down 9.5 percent compared with the same week in 2022. For the first 16 weeks of 2023, Canadian railroads reported a cumulative rail traffic volume of 2,243,938 carloads, containers, and trailers, up 0.5 percent. Mexican railroads reported 24,391 carloads for the week, up 6.2 percent compared with the same week last year, and 16,203 intermodal units, down 4.8 percent. Cumulative volume on Mexican railroads for the first 16 weeks of 2023 was 607,398 carloads and intermodal containers and trailers, up 2.4 percent from the same point last year. To view the rail charts, click here.
Amplify Business Value by amping up your Brand
Learn how a powerful brand maximizes value and mitigates risk for your business Branding is not what you may think. When executives consider branding, especially those with strong financial experience and limited marketing exposure (a classic CFO), they often see an expense with questionable ROI. They see a logo, tagline, website, marketing materials and equate those with the brand. While these are tools for delivering and building the brand, they are not the brand. The brand is a deliberate mental framework with a set of perceptions that resides in the mind. It is a result of brand-building actions and creates value by influencing decisions. That’s the priceless value of a powerful brand– an almost invisible influence. It’s why iconic investor Warren Buffet recommends investing in companies that have powerful brand. Emotional Influence Makes a Difference People are making decisions about your business all the time. If you want to influence their willingness to try something new, give you a shot, overlook the imperfect, buy more, pay more, or cut you a break –an emotional advantage tips the scale in your favor. Your brand is a mental filter that affects how people think and feel about your company, products, and people. It shapes how people interpret what they see/experience and what they are willing to believe, accept and forgive. The Johnson & Johnson company has saved hundreds of millions in downside costs and produced even more in revenues with the accelerated adoption of new products, by leveraging a brand built on the pure, trusted bond between a mother and child. That brand essence along with the “healthcare company” positioning (vs. a pharmaceutical company positioning) softens the edges, warms the heart, and keeps people pre-disposed in J&J’s favor. Experts tell us that up to 90% of decisions are based on emotion. From Wall Street to Main Street, people use their “gut” and take pride in making up their own minds. They even refute facts and authority when feelings are strong. Powerful brands are built to influence emotions and help people to see things in a specific way. Powerful brands define a context and make people feel. Think John Deere, Patagonia, Nike, Chanel, American Express, the U.S. Navy, Yeti, Apple and the list goes on. There are also tiny brands in niche markets that wield enormous brand authority. More Control Over the Human Side of Business As a leader, you have experienced more and faster change these days than your predecessors did in twenty. You face challenging times fraught with unprecedented emotional volatility. It is a VUCA world – volatile, uncertain, complex, and ambiguous. The Covid-19 pandemic, Great Resignation, the war in Ukraine, remote work, supply chain disruptions, and extreme weather are some of the things that have businesses scrambling to keep up with constant changes in human behavior. You can address these shake-ups with a powerful brand so they don’t shake down your business. Convey calm in these stormy times. Provide warmth in a cold market. Deliver clarity in a sea of confusion. This is how to break through to people so they remain by your side and behind your business in an upside-down world. Branding is less about marketing and more about business strategy and control. It is a strategy to consistently influence people from the inside out. Branding is soft power, not hard power. If you want to influence customers, partners, employees, regulatory authorities, journalists, or anyone who can affect your business, think about the value of having a brand filter in place to shape perceptions and emotions. Alternatively, think about how not setting that mental construct and allowing the market or competitors to define it, creates risk. In today’s tumultuous cancel culture world, many consider branding an essential risk mitigation strategy. Don’t let lack of time and resources and outdated legacy thinking stop you from doing everything it takes to influence the people that make your business live or die, grow or shrink. Take a hard look at what can really move the needle, and you’ll find it all comes down to people. Your brand is the asset that can deliver the sustainable emotional advantage needed to influence people – which sometimes means saving the day. When you build your new playbook for the new world, add what may others miss. Build a powerful brand and reap the priceless dividends that only an emotional advantage can deliver. About the Author: Jane Cavalier, Founder and CEO of BrightMark Consulting is a bestselling author (The Enchanted Brand, Amazon) and business strategist, Jane has built powerful brands like Snapple and Qwest and delivered branding solutions for companies including Samsung, Exxon, Johnson & Johnson, American Express, IBM, and iRobot for over 25 years. Learn more at www.brightmarkconsulting.com and visit www.theechantedbrand.com
Q2 Update to the 2023 Economic Outlook Forecasts 1.0% expansion in Equipment and Software Investment and 0.7% GDP growth as recession looms
Equipment and software investment growth cooled in the early months of 2023, resulting in the Equipment Leasing & Finance Foundation lowering its annual forecast for investment growth to 1.0%, according to the Q2 update to the 2023 Equipment Leasing & Finance U.S. Economic Outlook. The report released today also predicts sluggish economic growth in Q1 as the economy edges closer toward recession, which the Foundation continues to expect will begin during the second half of the year. Overall, annualized economic growth is forecast to be 0.7% in 2023, largely driven by a solid jump-off point at the end of last year. The Foundation’s report is focused on the $1.16 trillion equipment leasing and finance industry and highlights key trends in equipment investment, placing them in the context of the broader U.S. economic climate. Nancy Pistorio, Foundation Chair and President of Madison Capital LLC said, “Despite the U.S. economy ending 2022 with healthy growth and maintaining some momentum into early 2023, equipment and software investment softened to 2% annualized growth in Q4 and remains under pressure. The economy is still above water, but most indicators point to slowing growth, and many economists continue to expect a recession to begin later this year. Should that come to pass, I also expect the equipment finance industry will demonstrate its characteristic resilience, innovation, and resolve, and will continue to serve the financial needs of our customers regardless of the economic climate.” Highlights from the Q2 update to the 2023 Outlook include: Equipment and software investment growth were sluggish in Q1 as the combined effects of a slowing industrial sector and higher interest rates weighed on equipment demand. While certain end-user markets may fare better in the months ahead, a broad economic downturn will drag on investment across the board, resulting in an annualized growth forecast for equipment and software investment of just 1.0%. The U.S. economy is expected to continue to soften despite a healthy labor market, lower energy prices, and supply chain improvements. Stubborn inflation combined with rising consumer financial stress and a looming debt ceiling showdown will add to financial sector woes. Although a “soft landing” scenario is still achievable, a mild recession is likely, beginning during the second half of 2023. The manufacturing sector has worked through much of its pandemic-era supply chain backlogs, but measures of supply chain health indicate the industrial sector is in the midst of a protracted slowdown. On the plus side, the sector’s jumping-off point was strong, so while demand is likely to continue to soften this year, the downturn may not be as severe as in past cycles. Main Street businesses suffered the worst effects of pandemic-era labor shortages, and labor-saving investments in equipment and technology continue to be a lifeline. However, loan availability is expected to tighten following recent bank failures, making financing investments more difficult and adding to small business financial stress. The Federal Reserve continues to battle inflation, even raising interest rates immediately following the second and third-largest bank failures in U.S. history. Interest rates are expected to rise higher than most market-implied forecasts expect this year as the Fed targets an inflation rate of 2%. The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, which is released in conjunction with the Economic Outlook, tracks 12 equipment and software investment verticals. In addition, the Momentum Monitor Sector Matrix provides a customized data visualization of the current values of each of the 12 verticals based on recent momentum and historical strength. This month two are expanding, two are recovering, and eight verticals are weakening. Over the next three to six months, year over year: Agriculture machinery investment growth is likely to weaken further. Construction machinery investment growth may have peaked and could start to slow. Materials handling equipment investment growth may pick up slightly. All other industrial equipment investment growth may have bottomed out and could start to pick up. Medical equipment investment growth is unlikely to pick up. Mining and oilfield machinery investment growth may have peaked and could decelerate. Aircraft investment growth may have peaked and could decelerate. Ships and boats investment growth could decelerate sharply. Railroad equipment investment growth may start to cool but will likely remain in positive territory. Trucks investment growth is likely to sidewind. Computers investment growth will likely remain weak. Software investment growth may reach a peak. The Foundation produces the Equipment Leasing & Finance U.S. Economic Outlook report in partnership with economic and public policy consulting firm Keybridge Research. The annual economic forecast provides the U.S. macroeconomic outlook, credit market conditions, and key economic indicators. The Q2 report is the first update to the 2023 Economic Outlook and will be followed by two more quarterly updates before the publication of the 2024 Economic Outlook in December. Download the full report at https://www.leasefoundation.org/industry-resources/u-s-economic-outlook/.