Equipment Leasing and Finance Association announces Top 10 Equipment Acquisition Trends for 2023
The Equipment Leasing and Finance Association (ELFA), which represents the $1 trillion equipment finance sector, today revealed its Top 10 Equipment Acquisition Trends for 2023. Real private investment by U.S. businesses in equipment and software is forecast to be more than $2 trillion in 2023, with a substantial amount of that investment activity financed, so these trends impact a significant portion of the U.S. economy. ELFA President and CEO Ralph Petta said, “Slower economic growth underlies the trends this year as equipment acquisition continues to drive supply chains across all U.S. manufacturing and service sectors. Nearly eight in 10 of U.S. businesses currently use equipment leasing and financing to acquire the productive assets they need to operate and grow. We are pleased to provide the Top 10 Equipment Acquisition Trends to help businesses make their strategic equipment acquisition plans.” ELFA distilled recent research and data, including the Equipment Leasing & Finance Foundation’s 2023 Equipment Leasing & Finance U.S. Economic Outlook, industry participants’ expertise, and member input from ELFA meetings in compiling the trends. ELFA forecasts the following Top 10 Equipment Acquisition Trends for 2023: The U.S. economy will experience sluggish growth in 2023. U.S. GDP growth bounced back during the second half of 2022, but underlying conditions remain troubling, including a struggling housing market, volatile financial markets, and the slowing global economy. With a mild recession expected to begin midway through the year, U.S. GDP growth is forecast at 0.9% (annualized) for 2023. The pace of growth in capital spending will continue to slow. A surge of 12% annualized growth in capital spending in Q3 2022 provided a solid jumping-off point for 2023. While growth in equipment and software investment has been steady since the onset of the pandemic, rising interest rates, high inflation, and other economic uncertainties are expected to weigh on investment with a 4.2% growth forecast for this year. Financial conditions will tighten regardless of interest rate hikes. Interest rate levels are expected to rise above 5% this year and potentially higher as the Fed continues to battle inflation despite the risk of an economic downturn. Even if rate increases slow down or pause later in the year, the Fed’s shrinking balance sheet will contribute to tighter financial conditions. The majority of equipment acquisitions will be financed. In 2023, more than half (55%) of equipment acquisitions are forecast to be financed. Eight out of 10 businesses use leases, secured loans, or lines of credit for their acquisitions. Protection from equipment obsolescence, tax advantages, and cash flow optimization will be the top drivers for end-users to finance. Businesses will utilize equipment and software investment to offset labor costs. To reduce dependence on labor, businesses in some industries will increase their use of automation and other labor-saving equipment. Additional benefits will be increased economic productivity and downward pressure on inflation in the long term. Normal supply chain backlogs will ease equipment acquisitions. By most measures, supply chain backlogs have returned to their historical averages and will ease equipment delivery delays or shortages this year. A combination of cooling demand and an improving public health situation has given suppliers a chance to catch up. In addition, global supply chain disruptions have triggered a paradigm shift with many large organizations “near-shoring” and/or “re-shoring” elements of their supply chains. Many equipment types will thrive amid a slow-growth economy. Despite a souring economic backdrop, the residual effects of the pandemic will spur demand for certain equipment types. Post-pandemic hybrid work arrangements will require acquisitions of equipment types such as computers, software, office equipment, and communications equipment. Aircraft investment will boom early in the year as supply chains unwind and travelers return to the skies. Medical equipment appears to be another stand-out vertical for 2023. Federal spending will provide a boost to equipment investment. Three major bills passed in Congress authorize at least $600 billion in new funding for a variety of industrial and infrastructure projects and should provide a sharp boost to equipment investment. Funding from these bills will be distributed over the next five years and should help backstop the U.S. manufacturing sector and increase the demand for equipment in 2023 and beyond. Explosive growth in green projects will drive demand for “climate financing.” Organizations are committed to cutting their production and emissions of greenhouse gases and require equipment from wind turbines and solar energy systems to microgrids, storage facilities for lithium-iron and hydrogen batteries, electric vehicles, and more. Globally, an estimated $18 trillion of climate-focused equipment is forecast to be financed between now and 2030. “Wild cards” will factor into business investment decisions. Businesses will keep an eye on other areas that could impact their equipment acquisition strategies in addition to the trends above. Tightening credit, a potential debt-ceiling showdown in Congress, and energy price increases due to Russia’s war on Ukraine are among potential business impacts. For an infographic highlighting the Top 10 Equipment Acquisition Trends for 2023, please visit ELFA’s Equipment Finance Advantage website for end-users at https://www.equipmentfinanceadvantage.org/toolkit/10trends.cfm.
Manufacturing Technology Orders Total $436.5 in November 2022; Annual total value dips below 2021 for first time in 2022
New orders of manufacturing technology totaled $436.5 million in November 2022, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology New orders of manufacturing technology totaled $436.5 million in November 2022, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology. November 2022 orders were down 4.5% from October 2022 and down nearly 32% from November 2021. Year-to-date orders dropped below 2021 for the first time in 2022, dipping 3.7% below the total through November 2021. “After recording the highest level of orders in 2021, it was only a matter of time before 2022 fell slightly behind,” said Douglas K. Woods, president of AMT. “The fact that orders stayed above 2021 levels for 10 months really speaks to the continued strength in the demand for manufacturing technology. This demand has been spurred by the extraordinary economic challenges of the last few years, which has prompted expanded domestic manufacturing as well as foreign direct investment.” Although domestic capacity has expanded greatly over the last two years, the current economic environment is starting to take a toll on demand for manufacturing technologies in some sectors. In an environment of rapidly rising interest rates, home construction and renovation has slowed, and manufacturers of household appliances have continued to reduce their orders through November 2022. Likewise, declining investments in capital goods by manufacturers of HVAC and commercial refrigeration reflect slowing demand from commercial construction. While job shops remain the largest customer segment, their orders have continued to decline since peaking in September 2022. Interestingly, the average value of orders from job shops has been increasing, indicating continued demand for the more-automated, higher-value machinery. Order activity in this sector appears driven by application-specific needs rather than expanding capacity. “Despite some of the slowing orders, a number of our members remain confident in their 2023 projections because of the outstanding orders collected in 2022,” said Woods. “2023 will most likely be a balancing act. The manufacturing that has returned to the country will continue to spur economic activity, which may be tempered by rising interest rates and slowing demand.”
Section 1202: Small Business Stock Capital Gains Exclusion
Selling your business? What if I told you that you could exclude up to $10 Million from the sale of your business if you meet certain parameters? It is important business owners take note of the requirements as they are very important in order to qualify for the exclusion. Section 1202 of the Internal Revenue Code is a very beneficial tool and the exclusion and easily be applied to your sale. Section 1202 is known as the Small Business Stock Capital Gains Exclusion. This section can only be applied to qualified small business stock acquired after September 27, 2010, that is held for more than five years. Within the Protecting Americans from Tax Hikes (PATH) Act in 2015, one tax benefit, made permanent by the Obama administration, was the Small Business Stock Capital Gains Exclusion found in Section 1202. The intention of this section in the Internal Revenue Code was to provide an incentive for non-corporate taxpayers to invest in small businesses in the United States. Before February 18, 2009, Section 1202 allowed up to 50% of capital gains to be excluded from gross income. The American Recovery and Reinvestment Act then increased the exclusion rate from 50% to 75% for stock purchased between February 18, 2009, and September 27, 2010. This was done in order to stimulate the small business sector. The latest revision to Section 1202, where we are today, provides for 100% exclusion of any capital gain if the small business stock was acquired after September 27, 2010. The capital gains exempt from tax are also exempt from the net investment income (NII) tax applied to most investment income at a rate of 3.8%. The limit upon the amount of gain a shareholder can exclude is limited to either $10 Million or 10 times the adjusted basis of the stock. Any taxable portion of the gain from selling small business stock has an assessment at the maximum tax rate of 28%. Keep in mind, not all small business stocks qualify for this tax break. Some very stringent requirements must be followed regarding small business stock. These requirements are: It was issued by a domestic C-corporation other than a hotel, restaurant, financial institution, real estate company, farm, a mining company, or business relating to law, engineering, or architecture. Can also be applied to an LLC taxed as a C-Corporation. It was originally issued after Aug. 10, 1993, in exchange for money, property not including stocks, or as compensation for a service rendered. On the date of the stock issue and immediately after, the issuing corporation had $50 million or less in assets. The use of at least 80% of the corporation’s assets is for the active conduct of one or more qualified businesses. The issuing corporation does not purchase any of the stock from the taxpayer for four years beginning two years before the issue date. The issuing corporation does not significantly redeem its stock within two years beginning one year before the issue date. A significant stock redemption is redeeming an aggregate value of stocks that exceed 5% of the total value of the company’s stock. If you own a business that satisfies these requirements, then start celebrating. Whenever you go to sell your business, you should be able to exclude all or almost all your federal capital gains tax. Keep in mind that state taxes differ from federal taxes. If your state taxes conform to federal taxes, you could also exclude capital gains from your state taxes. Since all states do not correlate directly, taxpayers should seek guidance on how their states will treat the gain from the sale of qualified small business stock. Looking at an example, consider a single taxpayer with normal taxable earnings of $600,000. Due to their income, they are subject to the highest tax rate. When they sell the eligible small company shares, they bought on September 30, 2010, they get $60,000 in realized profit. Since the person may deduct all their capital gains, no federal tax is owed on the profits. Assume the Investor bought the stock on February 9, 2009, and traded it for a gain of $60,000 after five years. The amount of federal tax owed on capital gains is 28% × 50% x 60,000, or $8,400. About the Author: Business owners must check immediately with their business broker, accountant, or legal counsel regarding their business structure. This is especially true for those who plan to sell within the next couple of years. If you are looking into selling your business and have any questions about the Small Business Stock Capital Gains Exclusion, reach out to the professionals at The Center for Financial, Legal, and Tax Planning, Inc at our website, www.taxplanning.com or by phone at (618) 997-3436.
National nonprofit Wreaths Across America announces new theme for 2023
Each year, millions of Americans come together to REMEMBER the fallen, HONOR those that serve and their families, and TEACH the next generation about the value of freedom. This gathering of volunteers and patriots takes place in local, state, and national cemeteries in all 50 states – most recently at 3,702 participating locations – as part of National Wreaths Across America Day. Each year, a new theme is chosen to help volunteers and supporters focus their messaging and outreach in their own communities. Today, the national nonprofit announces the theme for 2023 is “Serve and Succeed.” The inspiration for this year’s theme came while discussing the significance of 2022’s theme, which was “Find a Way to Serve,” and the need to continue to stress the importance of service and the positive ways it can impact lives. Wreaths Across America plans to focus on the storylines of veterans and military families who have found success through their own service, while also highlighting local volunteers across the country and the success that comes from serving their communities. The organization will continue its commitment to supporting and bringing attention to the needs of our veteran community while also showcasing the continued contributions of those who serve. “There are many ways to serve your community and country, and just as many definitions of success,” said Karen Worcester, executive director, Wreaths Across America. “We hope through focusing on those stories of success we will help change the dialogue around what it means to serve your country.” In 2022, more than 2.7 million veterans’ wreaths were placed by volunteers on headstones at 3,702 participating locations around the country in honor of the service and sacrifices made for our freedoms, with each name said out loud. Wreaths Across America volunteers work year-round to ensure military laid to rest are remembered, their families and living veterans are honored, and the next generation is taught about the value of freedom. This year, National Wreaths Across America Day is Saturday, December 16, 2023. It is a free event and open to all people. For more information on how to volunteer locally or sponsor a wreath for an American hero, please visit www.wreathsacrossamerica.org. To follow stories throughout the year from across the country focused on this theme, please use the hashtag #ServeAndSucceed.
Women In Trucking Association launches 2023 WIT Index Survey to collect Gender Diversity Data
The Women In Trucking Association (WIT) is encouraging companies in transportation to complete a survey that collects data on gender diversity in the industry. The data will be used to develop this year’s version of the WIT Index, which is the official industry barometer to regularly benchmark and measure the percentage of women who are professional drivers, in corporate positions, and serve in leadership roles. WIT is requesting for-hire trucking companies, private fleets, transportation intermediaries, railroads, ocean carriers, equipment manufacturers, and technology companies to report the percentage of women in various roles in their workforce include. Data reported will be kept strictly confidential and data will be reported only as aggregate totals of respondents. Individuals completing the survey must be an authorized respondent from the company. Interested participants can report their data via the live survey through April 21, 2023, at womenintrucking.org/index. Participating companies in the survey will receive an executive summary of the 2023 WIT Index at no cost, which will enable them to benchmark their gender diversity practices against other companies in transportation. Monitoring gender diversity in a male-populated industry like transportation is critical so that statistically valid data can be used to evaluate progress made in this area. “Since 2007, when the Women In Trucking Association was formed, the percentages of women in the industry have been rising significantly. In order to track these advancements, we created the WIT index to annually monitor the increase in female drivers, technicians, safety directors, managers, and even directors,” said Ellen Voie, president and CEO of WIT, who spearheaded the launch of the first WIT Index in 2016. “Your participation in this important survey will help us accurately track these efforts and provide benchmarking opportunities for everyone working toward a more gender-diverse workforce.” Last year, the 2022 WIT Index found that the percentage of professional drivers who are female increased to 13.7%, an uptick of more than 3% since 2019. Additionally, the report found that women make up 33.8% of C-suite executives in transportation companies, 40.5% of safety professionals, and 74.9% of human resources and talent management roles.
WERC announces Distribution Logistics Fundamentals course
The Warehousing Education & Research Council (WERC) announces the availability of a new warehousing e-learning course, called Distribution Logistics Fundamentals. The Distribution Logistics Fundamentals course will introduce different types of facilities, functions, and roles within the warehouse or distribution center, future trends, and the role of warehousing within the greater supply chain. Topics covered include: Introduction to material handling and distribution logistics and warehousing operations Inventory management and fulfillment best practices Benefits and types of Warehouse Management Systems Warehouse layout and design Key roles within a warehouse/distribution center Leading industry trends impacting warehouses/distribution centers Once the participant has completed this course, they will be issued a certificate and digital badge to display on their LinkedIn profiles and email signature. This course is the first in a series of six learning modules leading to a WERC certificate for warehousing education. Click here to learn more about and sign up for the WERC Distribution Logistics Fundamentals course. Contact Rebecca Woods for questions regarding this course.
AAR reports weekly Rail Traffic for December and the week ending December 31, 2022
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending December 31, 2022, as well as volumes for December 2022. U.S. railroads originated 842,171 carloads in December 2022, down 4.4 percent, or 38,476 carloads, from December 2021. U.S. railroads also originated 900,213 containers and trailers in December 2022, down 5.2 percent, or 49,107 units, from the same month last year. Combined U.S. carload and intermodal originations in December 2022 were 1,742,384, down 4.8 percent, or 87,583 carloads and intermodal units from December 2021. In December 2022, four of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with December 2021. These included: motor vehicles & parts, up 5,842 carloads or 12.9 percent; crushed stone, sand & gravel, up 2,034 carloads or 3 percent; and food products, up 721 carloads or 3.2 percent. Commodities that saw declines in December 2022 from December 2021 included: chemicals, down 16,067 carloads or 12.1 percent; coal, down 12,991 carloads or 5.2 percent; and grain, down 4,589 carloads or 5.2 percent. “Rail markets are always evolving, and 2022 was no exception,” said AAR Senior Vice President John T. Gray. “Coal carloads grew solidly in 2022 largely because higher natural gas prices made coal-fired electricity generation more competitive. However, those same higher natural gas prices, along with other market disruptors, hurt rail chemical volumes, since natural gas is a key raw material for chemical manufacturing. Grain carloads in 2022 were slightly higher than the annual average over the past decade, but they were down year-over-year because 2021 was the best year for grain carloads since 2008. Intermodal volume in 2022 was the sixth best ever, but down from an even stronger 2021.” Excluding coal, carloads were down 25,485 carloads, or 4 percent, in December 2022 from December 2021. Excluding coal and grain, carloads were down 20,896 carloads, or 3.9 percent. Total U.S. carload traffic for the first 12 months of 2022 was 11,976,283 carloads, down 0.3 percent, or 34,001 carloads, from the same period last year; and 13,452,480 intermodal units, down 4.9 percent, or 686,580 containers and trailers, from last year. Total combined U.S. traffic for the first 52 weeks of 2022 was 25,428,763 carloads and intermodal units, a decrease of 2.8 percent compared to last year. Week ending December 31, 2022 Total U.S. weekly rail traffic was 365,553 carloads and intermodal units, down 6.8 percent compared with the same week last year. Total carloads for the week ending December 31 were 179,992 carloads, down 12.5 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 185,561 containers and trailers, down 0.5 percent compared to 2021. One of the 10 carload commodity groups posted an increase compared with the same week in 2021. It was motor vehicles and parts, up 466 carloads, to 9,418. Commodity groups that posted decreases compared with the same week in 2021 included chemicals, down 7,190 carloads, to 25,174; coal, down 6,330 carloads, to 52,863; and nonmetallic minerals, down 3,248 carloads, to 19,853. North American rail volume for the week ending December 31, 2022, on 12 reporting U.S., Canadian and Mexican railroads totaled 256,632 carloads, down 8 percent compared with the same week last year, and 244,189 intermodal units, down 0.1 percent compared with last year. Total combined weekly rail traffic in North America was 500,821 carloads and intermodal units, down 4.3 percent. North American rail volume for the first 52 weeks of 2022 was 34,897,040 carloads and intermodal units, down 1.9 percent compared with 2021. Canadian railroads reported 59,380 carloads for the week, up 3.6 percent, and 47,068 intermodal units, down 1.2 percent compared with the same week in 2021. For the first 52 weeks of 2022, Canadian railroads reported a cumulative rail traffic volume of 7,516,426 carloads, containers, and trailers, down 0.6 percent. Mexican railroads reported 17,260 carloads for the week, up 9.7 percent compared with the same week last year, and 11,560 intermodal units, up 11.4 percent. Cumulative volume on Mexican railroads for the first 52 weeks of 2022 was 1,951,851 carloads and intermodal containers and trailers, up 4.4 percent from the same point last year. To view the weekly rail traffic chart, click here.
Mike McLain and Tammy Balogh leading PTDA in 2023
The recently-elected 2023 Board of Directors and Manufacturer Council of the Power Transmission Distributors Association (PTDA) begin their leadership terms. Mike McLain, vice president, Allied Bearing & Supply Co. (Harahan, La.) assumes the leadership of the association as PTDA President. McLain has been active in PTDA since 2014, serving as a member of numerous task forces and the Education & Training Committee (now known as the Professional Development Committee). He has been a member of the PTDA Board of Directors since 2017. “PTDA is poised to launch several new and pivotal programs in 2023, all expected to progress the efforts of our essential PT/MC industry,” says McLain. “I look forward to the collective expertise our board and leadership will bring to guide our efforts, ensuring our members are well equipped with the information, knowledge sharing, and networking they seek to advance their respective businesses and our industry.” Joining McLain on the 2023 PTDA Board of Directors are: Immediate Past President JP Bouchard, vice president, General Bearing Service Inc. (Ottawa, Ontario, Canada) First Vice President Brian Nowak, president and CEO, Kurz Industrial Solutions (Neenah, Wis.) Second Vice President Bill Shepard, vice president, BDI (Cleveland, Ohio) Treasurer Brian Davis, co-CEO, B & D Industrial (Macon, Ga.) Manufacturer Council Chair Tammy Balogh, chief people officer, Flexco (Downers Grove, Ill.) Manufacturer Council Vice Chair Andrew A.O. Brown, vice president, Whittet-Higgins Company (Providence, R.I.) PTDA Foundation President Bill Moore, president, Industrial Profit Strategies, LLC (Chester Springs, Pa.) EPTDA President Luca Martelli, CEO, TRM (Italy) Directors: Chester Collier, senior vice president of global distribution, Walter Service Technologies (Pointe Claire, Quebec, Canada) Tom Holtry, senior director, strategic sales support, Motion (Birmingham, Ala.) Jim Jeffiers, vice president, Applied Industrial Technologies and Applied US Energy (Fort Worth, Texas) Rob LaRue, president, Baldwin Supply Co. (Minneapolis, Minn.) Jeff Mattson, president, ISC Companies, Inc. (Minneapolis, Minn.) Craig Pirie, president, Daemar, Inc. (Oakville, Ontario, Canada) Tammy Balogh, chief people officer, Flexco (Downers Grove, Ill.) assumes the duties of the PTDA Manufacturer Council chair. Balogh has been active in PTDA committees since 2009 when she joined the Employee Development Committee. Since then, Balogh has served on various task forces and committees, including the Education & Training Committee, Leadership Development Task Force, Handbook Revision Task Force, Electronic Media Task Force, and PT Interactive Online Task Force. She joined the Manufacturer Council in 2017. “I’ve gained tremendous insight into our members’ and industry’s needs through my work with PTDA over several years,” says Balogh. “Together, we are stronger and collectively our PTDA manufacturers and leadership is well prepared to bring forth solutions in 2023 that ensure our industry continues to successfully anticipate, and address, challenges and opportunities.” Joining Balogh on the Manufacturer Council is: Immediate Past Chair, Randy Disharoon, sales director, conveying division, Regal Rexnord Industries, LLC (Beloit, Wisc.) Manufacturer Council Vice Chair, Andrew A.O. Brown, vice president, Whittet-Higgins Company (Providence, R.I.) Council Members: George Basel, director marketing & product management, U.S. Tsubaki Power Transmission LLC (Wheeling, Ill.) Maxine Gomez, sales manager, Belden Universal (Hillside, Ill.) Chris Gumas, director of marketing, Ruland Manufacturing Co. (Marlborough, Mass.) Chris Keyser, vice president channel & segment sales, ABB Motors and Mechanical Inc. (Fort Smith, Ark.) Michael Moonan, senior vice president sales, Solve Industrial Motion Group (Charlotte, N.C.) Paul Phillips, president, Maxi-Lift, Inc. (Addison, Texas) Sara Zimmerman, vice president business development, Sumitomo Machinery Corp. of America (Chesapeake, Va.) The Power Transmission Distributors Association (PTDA) is a global association for the industrial power transmission/motion control (PT/MC) distribution channel. Headquartered in Chicago, PTDA represents power transmission/motion control distribution firms that generate more than $19.6 billion in sales and span over 2,700 locations. PTDA members also include manufacturers that supply the PT/MC industry.
December 2022 Logistics Manager’s Index Report®
LMI® at 54.6 Growth is INCREASING AT AN INCREASING RATE for Inventory Levels and Warehousing Utilization Growth is INCREASING AT A DECREASING RATE for Inventory Costs, Warehousing Prices, and Transportation Capacity. Warehousing Capacity, Transportation Utilization, and Transportation Prices are CONTRACTING. The Logistics Managers’ Index reads at 54.6 in December, up (+1.0) from November’s reading of 53.6. The overall index had declined in seven of the eight months leading up to December’s reading, so even the modest increase we see here is a marked change. Like November, Inventory Levels (57.3) are increasing at a much slower rate than was observed throughout most of 2022. Inventory Levels were much higher for Downstream than for Upstream firms (62.8 to 53.3 respectively), which is indicative of the split we observed in December. Essentially, Downstream respondents such as retailers held higher levels of inventory and dealt with more limited warehousing as they pushed to get goods to consumers for holiday shopping. Transportation metrics were weak across all levels of the supply chain. Transportation Utilization was down to 48.1, marking the first time it has dipped into contraction territory since April of 2020. Transportation Prices contracted at a rate of 36.9, which is the sharpest rate of contraction we have measured for this metric in the over six years of the Logistics Managers’ Index. Researchers at Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report today. Results Overview The LMI score is a combination of eight unique components that make up the logistics industry, including inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50.0 indicates that logistics is expanding; a reading below 50.0 is indicative of a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in December 2022. Transportation metrics continue to be a drag on the logistics industry, while warehousing remains strong, inventories are still expensive, but the pace of growth for Inventory Levels has slowed significantly relative to what we had seen through most of 2022. As always, December’s economic activity revolves around holiday shopping and the steps firms take to prepare for it. According to Mastercard, consumer spending was up 7.6% for the holiday season (spanning from November 1st – December 24th) year-over-year. E-commerce was up 10.6% year-over-year as consumer spending increased on items like apparel, department stores, and services such as dining, but declined for electronics and jewelry[1]. This may have caught some by surprise as personal spending increased by 0.1% in November, down from the 0.9% increase observed in October, leading some to believe that retail spending would be depressed. However, consumer expectations for continued inflation have declined to their lowest level since June 2021, driving up consumer sentiment in December and partially explaining the willingness to spend for the holidays[2]. Consumers were also enticed to spend due to aggressive sales by retailers, with some large chains like Lands’ End and Tommy Hilfiger cutting prices by 50-70% in the week leading up to Christmas. Analysts believe that due to a combination of inflationary pressures and the consumer assumption that goods were less likely to run out than in 2020 and 2021 that shoppers were more willing to wait until the last minute to buy gifts, this is reflected in (note: the person writing this did most of their shopping on Christmas Eve), leading nervous retailers to cut prices leading up to the holiday[3]. Inventory Level growth was up slightly from November (+2.4), but its reading of 57.3 is still down significantly from the rates of growth in the 80s and 70’s we observed earlier in the year. Despite the sizable reductions in inventories, it does not appear that many retailers are aggressively pursuing a sizable restocking of goods. The level of containers coming through the Southern California ports was 566,522 loaded TEUs in November, the lowest level recorded since March 2020[4]. Container rates from the East Coast of China to the West Coast of North America are now at the same level they were at in late 2019, coming full circle from the wild ride they had during COVID. Rates to the East coast are still up slightly but have come down from the highs they reached earlier this year[5]. This low volume is partially due to the still-high rate of growth in Inventory Costs (-0.6) which read in at 72.8 in December. Other factors behind slow imports are depressed demand, shutdowns in China (Tesla shut down production at its Shanghai facility during the last week of December due to a high number of positive COVID cases at the plant)[6], and the continued diversion of inbound inventory through alternative ports. It would appear that firms will continue to pursue a diversified routing strategy as many firms are planning to invest more in distribution centers in places like Pennsylvania and North Carolina as they reorient their distribution networks towards East Coast ports[7]. Much of this new capacity will be near the ports themselves. CBRE is projecting warehousing space around seaports to be in particularly high demand in 2023[8]. Container line CMA CGM, the world’s third-largest carrier by capacity, is investing in cargo terminals on both the West and East Coast of the U.S. to increase its reach into inland logistics and avoid a situation like 2021, in which the carrier and its customers were at the mercy of infrastructure partners[9]. This expansion is in response to the continued lack of Warehousing Capacity (-2.1) which read in at 44.7 in December, marking 29 consecutive months of contraction. In addition to more investment in port storage, there continues to be consistent investment around the more expensive facilities used for last-mile delivery. Given the tightness in available Warehousing Capacity, an increased number of retailers utilized brick-and-mortar stores as fulfillment centers during the holidays[10].
Women In Trucking Association announces its January 2023 Member of the Month
The Women In Trucking Association (WIT) has announced Alicia Wilson as its January 2023 Member of the Month. Wilson is an equipment cleaning technician at Highway Transport, a Knoxville, Tennessee-based company providing bulk transportation of specialty chemicals. Growing up, Wilson’s father would take the family on long road trips, usually an 8-hour trip to the Rockies or drives from Colorado to California. “There’s nothing quite like randomly finding new mom-and-pop restaurants and watching the scenery change,” Wilson said. Wilson learned to drive on one of the California trips driving across Donner Pass. These cherished experiences served as her driving force to pursue a career in the transportation industry. In 2018, Wilson started her professional driving career in the tanker division at a large logistics company. From there, a truck breakdown in Houston, Texas, led to some unexpected friendships and a big career change. In 2020, Wilson became a professional tanker driver at Highway Transport, and in 2022, she transferred to her current role to remain closer to home. As an equipment cleaning technician, she performs all aspects of tank trailers and International Standard Organization (ISO) cleaning, including inspecting trailers for residual products and conducting post-cleaning inspections. She is one of the few women to have held this position at Highway Transport, and the work-life balance affords her time to care for an aging parent while remaining active in the industry she loves. Wilson is not afraid of going after any job and highly encourages other women to continue or pursue careers in the transportation industry. If there’s any doubt or intimidation, she advises: “take what the guys say with a grain of salt. With the understanding of what you yourself can do, plan your day with that in mind and ignore the words of people who don’t think you can do it. You do you!” Wilson holds a bachelor’s degree in accounting and finance as well as a master’s in library science, and she also maintains her CDL. She enjoys the freedom of driving a tanker and hopes to return to that passion soon. In her spare time, Wilson enjoys reading and baking.
Staffing employment declines in December
Staffing employment declined in the week of Dec. 12–18, decreasing by 2% to a rounded value of 106. Several staffing companies mentioned a holiday and inclement weather as barriers preventing further growth. Staffing jobs were up 0.3% from the same week last year. New starts fell in the 50th week of the year, decreasing by 10% from the prior week. Close to four in 10 staffing companies (35%) reported gains in new assignments week-to-week. The ASA Staffing Index’s four-week moving average edged down from the prior week to hold at a rounded value of 106, as temporary and contract staffing employment for the four weeks ending Dec. 18 was 0.2% higher than the same period in 2021. “Staffing employment remains slightly above the level seen at this time in 2021, with the usual holiday trends seemingly taking hold,” said Scott Vanderbilt, ASA senior director of research. This week, containing the 12th day of the month will be used in the December monthly employment situation report scheduled to be issued by the U.S. Bureau of Labor Statistics on Jan. 6.
Why we confuse tenure with experience
A tenured employee is someone who has worked for a company or organization for a number of years. Employees that have worked for a company for more than five years are considered long-tenured employees, while those that have worked for a company for less than five years are considered short-tenured employees. Employees with tenure usually have more expertise in their positions than others. But often, this expertise isn’t what we think it is. Does someone have 20 years of experience or one year of experience repeated 20 times? There are many times when no experience may be better than 20 years. An employee with 20 years of tenure can help or hurt a team. If that person is doing the job the same way they did it 20 years ago, they are tied to the status quo. They aren’t growing, and they often will squash new ideas and perspectives because they’ve developed “the best way”. But organizations change. Competitors change. Markets change. Customers change. If they haven’t changed along with that, their experience doesn’t hold the weight it used to. We frequently value tenure because that employee understands how the “sausage is made” in an organization and understands historically what works and what doesn’t. Yet this experience is tied most strongly to technology (shortcuts, limitations), processes (how to get something through internal barriers), politics (who will kill ideas and who will get things done), and dead-on-arrival ideas (things that didn’t work in the past which now have a negative cultural stigma). Don’t get me wrong, all this experience is valuable. Organizations couldn’t effectively operate without these folks, as new employees are blind to these challenges. But this type of experience – experience inside the organization – isn’t usually experience that will transform the organization. Some tenured folks continually push for change. Some continually push for themselves and their teams to grow and advance their skills. Many have succumbed to company gravity, getting pulled back into the status quo. In short, tenured employees often don’t have the experience to catapult an organization to a new level because their experience is limited to only to that company. Sure, they may have worked for other companies in the past, but those with 10+ years in one company lack the breadth of exposure to other industries, technologies, processes, strategies, and ideas – all of which are key to growth. We push our teams to come up with new ideas all the time – through brainstorming sessions, cross-functional teams, and innovation exercises – all the while believing these mechanisms will draw out some revolutionary insight. Because they have so much experience, insight must be in there – we just need to uncover it! However, we’ve kept these employees in a bubble for years. Is it reasonable to expect something amazingly new from tenured employees who have been mostly insulated from anything outside the company (aside from the periodic competitor assessments)? A tenured employee may be very experienced in their area of responsibility – they might be a great salesperson. They might be very adept at project management. Or they may be very technically savvy. That’s great, but this experience gets convoluted with broader, more diverse business experience. Technical skills are one thing. Experience across different industries, different businesses, and different roles are another. Experience can be defined in a variety of ways – depending on what your organization wants to achieve determines the type of experience you need on board. Don’t get me wrong – tenured employees can gain new experiences and grow. But many organizations don’t provide the resources and opportunities for them to flourish in this way. Just because you have a team of tenured employees with experience, doesn’t mean they have the right experience to create the transformational outcomes you’re seeking. Either help them gain the exposure they need to new ideas and insights or bring in resources with a different type of experience more suited to the challenge. And in many cases, those can be one and the same. 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.
Engineering the next generation
Sulzer sets up collaboration with Fontys University to provide students with real-world engineering knowledge Improving processes and unlocking future innovations relies on new ideas. Many of the engineers of tomorrow who will deliver these breakthroughs are currently learning their craft at university. However, students at Fontys University of Applied Sciences are already making a difference in the world of engineering thanks to an initiative set up by Sulzer’s Venlo Service Center. Designed to teach the Taguchi method, students have collaborated with engineers at the service center to help improve the quality control process for gas turbine coating samples, gaining valuable real-world experience. Start from scratch The Sulzer Venlo Service Center in the Netherlands is a provider of repairs and upgrades for rotating equipment, with a specialism in turbomachinery. As part of this service offering, the facility carries out turnkey projects for gas turbines used in the power generation sector. These often involve applying metallic and ceramic coatings (M-CrAlY’s and TBC) to turbine parts to ensure they can resist corrosion/oxidation and withstand the high temperatures of combustion. To assure customers of the quality of these coatings, Sulzer provides detailed reports on samples, including photographs. However, during preparation, it was clear that the sanding and polishing process was introducing scratches into the samples – a phenomenon that Sulzer wanted to eliminate. While these scratches were a superficial byproduct of the preparation process, it was important for Sulzer to ensure that the samples provided to customers in the reports were of the best possible quality. Seizing an educational opportunity Paul Thommassen, the Process Engineer at Sulzer, has worked at the company for 22 years and saw an educational opportunity in the planned project: “We’re part of Innovation Circle Venlo, which gathers local companies to discuss trends and developments in our respective industries. As part of this, I delivered a presentation on the Taguchi method, a statistical technique to improve designs and processes that I’d been applying at the service center. An attending lecturer from Fontys University approached me and said that this would be a good subject for engineering students. With the coating samples project we were undertaking, I thought it would be a great opportunity to collaborate with the university.” The Taguchi method relies on a statistical analysis of design or process parameters during research and development (R&D). Its main objective is to expedite the testing phase through a smarter workflow and reduce the negative social impact of a product. Furthermore, when properly applied, it can reduce R&D times, improve quality and lower costs. Paul connected the relevant teams at the Venlo Service Center and Fontys University to set up the coating samples project. After agreeing with the scope and course outline, the project began in earnest. The process of a Taguchi method project To begin with, professors at the university delivered lectures on the Taguchi method. As an initial introduction, students took part in a paper helicopter case study. The aim was to modify the design parameters of the helicopter to maximize the amount of airtime it could achieve. The students were then invited to the service center. Paul continues: “We spent two days with the students at Sulzer. First, we gave them a workshop tour so they had a good understanding of our operations, especially concerning gas turbines. Then we showed them the laboratory with the polishing and grinding machines, so they could see the process in action and build a knowledge base. “Next, we moved to the classroom to learn the steps of Taguchi. With everyone up to speed, we split the students into five teams of five, with each team providing a proposed test schedule for the coating sample preparation. Once we received each schedule, our laboratory carried out the tests following the student’s instructions, with results sent back to the university for data analysis. Finally, we all met again for teams to present their results.” Solving a real-world engineering challenge The fact that a test schedule developed by the students is now being incorporated into quality documentation at the service center proves that the project was a success. The optimal approach heavily depended on parameter selection. The more successful proposals focused on shortening the process while reducing scratches. To achieve this, students reduced the original eight grinding stages down to six, eliminating the very coarse sandpaper used at the beginning to instead rely on the finer grades used later. This helped to avoid scratches, which were caused during the first stages of grinding. Furthermore, the students suggested increasing the revolutions per minute (RPM) of the grinding machine to ensure that any particles that came loose from the paper were quickly swept away before they could cause scratches. As well as improving the quality of the samples, the new process also reduced lead times and costs, offering a tangible benefit to Sulzer customers. Young engineering students making the grade The project didn’t just benefit the service center. It provided up-and-coming engineers with the chance to prove their skills in the real world. Nicky Janssen, who is studying Industrial Product Design, said: “Putting my knowledge into practice is something that gives me great satisfaction. I found it very interesting to see the different departments at Sulzer and ask questions. “Being able to apply the knowledge of different disciplines is necessary to arrive at the best products. During this project, I discovered that not only the right mix of engineers but also different techniques can make a distinction in the quality of what is delivered.” Also studying Industrial Product Design with Mechanical Engineering as an option, Jill Vloet was another project participant: “If I may speak for myself, I learn the most from these internships and other practical assignments. This also applies to the project we carried out with Sulzer – I think it is a good way to prepare students for entering the working world, helping to provide them with the tools to work independently and also take initiative in groups. “I think that every person can contribute
Merry Christmas from Material Handling Wholesaler
The staff at Material Handling Wholesaler want to wish you and your family a joyous and Merry Christmas. Our offices will be closed on Friday, December 23, and Monday, December 26th. We will open on Tuesday, December 27th.
ASSP reacts to fatality data expects impact at DEI Summit
The American Society of Safety Professionals (ASSP), the world’s oldest professional safety organization, is disheartened by newly released fatality data from the U.S. Bureau of Labor Statistics (BLS). The BLS reported that the fatal occupational injury rate of 3.6 fatalities per 100,000 full-time equivalent workers in 2021 represented the highest annual rate since 2016. Furthermore, ASSP is troubled that the share of Black or African American workers fatally injured on the job reached an all-time high of 12.6 percent of total fatalities in 2021. The Latino worker fatality rate of 4.5 per 100,000 workers also remained significantly above the national average. “It’s unacceptable that our nation’s fatal worker injury rate is at a five-year high – a fact made worse by minority populations being disproportionately impacted,” said ASSP President Christine Sullivan, CSP, ARM. “Most occupational incidents are preventable given today’s technologies and proven safety and health strategies. Employers must be proactive in adopting workplace safety standards to protect workers across all industries.” ASSP, which has 36,000 members worldwide, is increasing its focus on diversity, equity, and inclusion (DEI) in the occupational safety and health profession, understanding there is a connection between DEI concepts and workplace safety. The organization has planned a free daylong DEI Summit on Jan. 26 that is open to workplace safety and health professionals everywhere. Registration for the online event opened on Dec. 1. “Diversity helps strengthen an organization in many ways, including the safety and health of its workforce,” Sullivan said. “We are going to hear from experts and collect different perspectives from attendees on how we can elevate DEI in our profession.” Presenters and participants will collaborate on the DEI issues facing the industry today, generating ideas on how to remove barriers and build inclusive cultures to help the safety profession create safer workplaces. Discussions will focus on the way DEI directly impacts workplace safety and health. “It’s so important to understand how societal issues such as racism and systemic inequities can undermine workplace safety and disenfranchise workers,” Sullivan said. “Organizational improvement occurs when diversity, equity, and inclusion are embedded components of a business strategy.”
Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index
November new business volume up 9 percent year-over-year, down 24 percent month-to-month, up 6 percent year-to-date The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross-section of the $1 trillion equipment finance sector, showed their overall new business volume for November was $8.6 billion, up 9 percent year-over-year from new business volume in November 2021. Volume was down 24 percent from $11.3 billion in October. Year-to-date, cumulative new business volume was up 6 percent compared to 2021. Receivables over 30 days were 1.7 percent, unchanged from the previous month and down from 2.2 percent in the same period in 2021. Charge-offs were 0.27 percent, up from 0.26 percent the previous month and up from 0.20 percent in the year-earlier period. Credit approvals totaled 77.7 percent, up from 77.0 percent in October. The total headcount for equipment finance companies was down 4.7 percent year-over-year. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in December is 45.9, an increase from the November index of 43.7. ELFA President and CEO Ralph Petta said, “Moving into the final month of the year, equipment finance companies report solid performance. Rising interest rates seem to have little or no effect on origination volume in November. The economy grew in Q3—albeit slowly—and is expected to do so again in the current quarter. Labor markets are stable, inflation woes appear to be abating, consumers are spending, and businesses continue to expand and grow: a recipe for stable growth by providers of equipment financing.” Patrick Hoiby, President, Equify Financial, LLC, said, “New volume continues to be very strong despite continued rate hikes. Charge-offs and delinquency are remaining in check and overall credit quality is good. Employee count is hard to measure because many companies wish to expand, but are having hard times finding people.”
Vice President Mike Pence to address Distributors at Executive Summit 2023
Pence to share insights on global and domestic realities ahead for North American businesses The National Association of Wholesaler-Distributors (NAW), which is the voice of the 8.1 trillion-dollar wholesale distribution industry, and employs more than 5 million U.S. workers, announced that Vice President Mike Pence will keynote Executive Summit 2023, the premier industry event for wholesale-distribution, January 31 – February 2, 2022, at the Fairmont, Washington, DC. Vice President Pence will address North America’s leading class of distributors and share his insights on the global and domestic realities ahead for North American businesses, the U.S. economy, the supply chain, and more. NAW’s Executive Summit is known in the industry as the most important and insightful event of the year; bringing together an incredible roster of distribution industry executives and service suppliers from all corners of the country to network, share best practices and innovate for the future. “We could not be more honored to welcome Vice President Mike Pence to address distributors from across North America at Executive Summit 2023,” said NAW CEO Eric Hoplin. “The Vice President’s leadership has been felt throughout the business community and we are eager to hear his ideas and insights for the future advancement and prosperity of the country and to ensure that distributors can do what they do best and supply and support America,” concluded Hoplin. “Distributors are the heart of the American supply chain,” said Vice President Mike Pence. “Thanks to the critical links and connections this industry makes possible, the goods and products needed to live and prosper in America make their way to communities and municipalities around the country. It is through distribution that towns and cities are built, homes are lit, families are fed, and the sick are supplied with life-saving medical products. We are thrilled to address leaders of this critical industry that keep the economy and the country moving,” concluded Pence. Each year, the Wholesale-Distribution Industry gathers in Washington, DC for NAW’s Executive Summit to hear from top executives and thought leaders from across the industry on topics such as innovation, supply chain visibility, profitable growth strategies, regulation, the economy, branding, and the value in investing in a happy workforce. NAW is one of America’s leading trade associations, representing the $8.1 trillion wholesale distribution industry. Founded in 1946, NAW is comprised of national, regional, and state employers of all sizes, industry trade associations, partners, and stakeholders spanning all sectors of distribution. Our industry employs more than 5 million workers throughout the United States and accounts for 1/3 of the U.S. GDP. There are 35,000 wholesale distribution companies that operate in nearly 150,000 places of business across North America, including all 50 states. NAW’s mission is to deliver world-class programs and services, designed to help the most dynamic companies in wholesale distribution succeed. Our programming is tailored for the CEOs, senior executives, and rising leaders at our member companies and associations. Members engage with NAW through our offerings in Thought Leadership, Networking, Executive Education, Benchmarking/Research, Shared Resourcing, Partnerships, Government Relations, and Public Affairs.
Cheers to a New Year!
I hope that everyone reading this is coming off a great 2022 and is ready to come out of the gate firing on all cylinders in 2023. As I write this article, topics such as inflation, interest rates, economic outlook, supply chain, automation, technology, competition for talent, and electrification of the North American forklift fleet remain at the top of mind for many lift truck dealers. These topics and their impact on our industry could be a column each on its own. However, to kick off this New Year edition, I wanted to briefly touch on some of these topics. Supply Chain The hidden cost of variability in the supply chain was the topic of my column in the October edition. There I posed a few questions: What is your dealership doing to diversify your offerings? Are the various departments within your dealership working together to optimize purchases of inventory and products from your suppliers? A few trends continue to prevail on the supply chain topic. Labor shortages and disruptions are still a factor throughout the supply chain. China is sticking to the zero-tolerance COVID-19 policy, which has the potential for disruptions when their ports shut down for COVID reasons. Ocean freight rates are trending down; however, some are stating that this trend could be due to the early shipment of Christmas retail goods. There is likely to be continued pressure on certain products, especially those with electronics as there have yet to be signs of improvement in chips or electronic components availability. Variability in the supply chain will continue to be a thing in 2023 and your procurement teams will continue to have to determine which products and commodities it makes sense to apply just-in-time inventory practices to vs just in case. Businesses must continue to remain vigilant in anticipating supply chain disruptions and have alternative options ready in advance to avoid not only a negative impact on their revenue stream but also prevent negative customer experience. Automation It was great to see in-person trade shows thriving and back to pre-pandemic or higher attendance in 2022. I attended last year’s MODEX show in person and it was evident that automation was one of the top themes. Labor shortages continue to be a trend with our industry’s target customers such as warehouses, fulfillment centers, big box stores, etc. These warehousing companies are implementing automation, robotics, and artificial intelligence to not only attract and retain a younger generation but also to fill the voids of shortage of labor in warehousing facilities. Many lift truck dealers in our industry have added systems and automation solutions to meet the needs of their customers over the past years, especially as they needed to have additional products to sell. Smart warehousing and automation will continue to advance in our industry and there will be plenty of opportunities to sell parts and service this type of equipment as well. The need for additional technicians on your service team will certainly play into the ability to provide aftermarket service on these systems. Competition for Talent The labor shortage and competition for talent, especially for your service technician workforce has been a hot topic for many years now and remains as such. As I mentioned in my previous paragraph, if you are looking to add the service opportunities that come with the boom in smart warehousing and automation, then you will either look to add additional service technicians or invest in training your existing technician force. As a growing number of service technicians are retiring or nearing retirement, dealers and independent service providers continue to face a shortage of technicians. The competition for talent is certainly not limited to your service technician staff. The competition for parts professionals, sales staff, office personnel, and management will continue to be fierce. You will want to be sure to keep your finger on the pulse of the retaining, recruiting, and development of your workforce. Be mindful of what businesses are doing in not only this industry or adjacent industries; keep up with what businesses are doing across various types of industries. Electrification Many businesses now have dedicated departments and positions for Environmental, Social, and Governance. Some may be instituting corporate policies around environmental issues such as air pollution, greenhouse gas emissions, and compliance with government environmental regulations. For example, according to a recent article on the Rental Equipment Register website, “Sunbelt Rentals will be expanding its electric on-road fleet with an order of 700 Ford F-150 Lightning trucks. The purchase of the trucks will contribute to the goal Sunbelt Rentals set to reduce greenhouse gas (GHG) emission intensity by 35 percent by 2030.” Just this past year, the California Air Resources Board, passed legislation that will require all new cars sold in the state by 2035 to be free of greenhouse gas emissions such as carbon dioxide. If you visit the California Air Resources Board website, you will read there they are trying to “accelerate the transition to zero-emission to meet the state’s air quality and greenhouse gas reduction goals. They are currently developing a measure that would drive the greater deployment of zero-emission forklifts within fleets throughout the state; one of several near-term actions intended to facilitate further zero-emission equipment penetration in the off-road sector. This measure is scheduled for Board consideration in 2023.” If the trend in automotive does mirror itself into the off-road equipment sector such as the forklift industry, what will the impact be on your business and your market? Manufacturers and new equipment sales aside, the service of electric forklifts is different than the service of internal combustion or gas-powered forklifts. Everything from the diagnostics to the parts consumption are factors that will have an impact on your service departments. Electrification in the forklift industry electrified equipment and fleets, will be hot topics in 2023. Technology As I wrote in my November column, B2C customer experience and shift of buying behavior to the ease of online transactions is now an expectation of your customers and
Decide to make everyday the First of the Year
Well, it’s a new year again. More resolutions, more goals, more plans. If the new year only ran until February, we would be fine. Most people can only keep their resolutions and goals going for about a month. Don’t take my word for it ask any fitness center. Crammed in January, empty in February. Hey, wait a minute. Didn’t someone say it only takes 30 days to make a habit? So how come if I can keep it up through January that I can’t keep it going for the rest of the year? Easy answer whoever said the thirty-day crap lied. It takes about 1,000 days to make and keep a habit (unless it’s to break an addictive habit like drinking or smoking then you must be inactive for as long as you were active repay a day for a day). OK, so what’s the secret of achievement? Ray Pelletier, known as “America’s Business Attitude Coach” has been speaking internationally on the subject of winning for more than 20 years. He has just authored a book entitled “Permission to Win.” Presented here are some of his principles and philosophies. To Pelletier, winning is as easy as 1,2.3: Implement a winning way of thinking, Follow a winning positive principle, and Execute a winning success action. The winning way of thinking is: You become what you think about. Think win. The winning positive principle is: Self-talk equals self-performance. Talk win. The winning success action is: Give yourself permission to win. Take winning action. Hey, wait a minute, you say. That sounds too easy. No, it’s simple there’s a big difference between simple to understand and easy to do. Positive thinking ain’t easy. Success ain’t easy. Winning ain’t easy but it can be learned. Pelletier says, “The key (and least executed principle) is giving yourself permission to win. I’m talking about a college degree in positive thinking with an attitude… and a postgraduate degree in permission to win attached to it. You don’t THINK you’re going to win. You don’t HOPE you’re going to win. You DECIDE you’re going to win.” “The most incredible aspect of this process is that people block their own success by telling themselves they can’t succeed. Sounds incredible, but it’s true,” says Pelletier. “They tell themselves It’s OK to settle for less than what I want. They give themselves excuses like, It’s not my job or worse They don’t pay me enough to… or worst They tell themselves that it’s OK to quit. Winning must be an active permission before it becomes a living reality.” “Napoleon Hill, studied 157 of the world’s most successful entrepreneurs, and that every one of them had one trait in common: they KNEW they would succeed,” says Pelletier with passion. “It was a flat-out decision. Most of them had little money or support, and several of them had almost no formal education. But one thing they all understood: winning is a decision.“ “Not to decide is to decide,” He adds. “It’s a permit to win, and you have to give it to yourself. Others can support it but you give it to yourself. You want the secret. That’s the secret.” Permission to win is an active process made up of winning thought components. Here are the winning components and actions that will encompass your decision to win: Develop the desire to win. Most people want to win but lack the desire to accomplish it. Permission opens desire. Visualize winning every time you play. See the win before it occurs. Permission lets the mind’s eye focus. Remember past wins. Think about previous wins makes present wins seem more achievable. Permission relives memorable wins. Talk win to yourself. You tell yourself you’re a winner. Permission is granted to yourself from yourself. Read about winners. Learn how others won. Permission is stronger when understanding is present. Listen to winning stuff. The more you hear sounds of winning, the easier it is to understand winning ways. Permission is easier when you repeat the message. Hang around winners. The best place to learn winning ways is from a winner. Permission comes from winning thoughts and ideas. Take winning actions. There’s no such thing as a passive winner. You don’t wait to win you take action. Permission is a winning action. Act like a winner. “Permission to win is the most powerful decision a person can make,” says Pelletier. “As it evolves in your psyche, your thinking will begin to automatically adjust to disappointments and setbacks and find a way to get around them or overcome them. Winning will gradually become instinctive. Your mindset will be different than anything you’ve ever experienced before. Your approaches will be exclusively winner-oriented.” “If you start out every day like it was the first of January, you begin to develop the attitude and intensity needed to become a winner. A daily winner,” says Pelletier. “Real winners make every day New Year’s Day.” Ray Pelletier understands winning like few people in the world. Not only has he taught it in the corporate board room one of his most notable successes is in the college locker room. Ray delivered the pregame “Permission to Win” talk to Notre Dame before the Orange Bowl when they beat Colorado in 1989. Ray was given the game ball. “Permission to win is a lifestyle.” Says Pelletier. “It’s more than a choice, it’s a decision. A decision is something you make after you choose. And the cool part is that you decide between an excuse about losing or permission to win.” What’s your decision? 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.
Astronaut Chris Hadfield to headline NAW’s Executive Summit Dinner Gala
Former International Space Station Commander to speak to top wholesale distribution executives at National Air & Space Museum The National Association of Wholesaler-Distributors (NAW) has announced that Chris Hadfield will headline its 2023 Executive Summit dinner gala– the premiere event for the wholesale distribution industry. “We are thrilled to have renowned astronaut, Chris Hadfield, at the NAW Executive Summit this year,” said NAW CEO Eric Hoplin. “Chris will headline our dinner gala at the National Air & Space Museum- a fitting venue as we look towards the Next Frontier of wholesale distribution,” concluded Hoplin. “The wholesale-distribution industry is such a dynamic and enduring industry on the front line of America’s supply chain every day. I’m honored to address this incredible group of executives and share my experience, lessons learned, and what the future of innovation holds for us all, “ said Colonel and Retired Astronaut Chris Hadfield. A heavily decorated astronaut, engineer, and fighter pilot, Colonel Hadfield’s many awards include the Order of Canada, the Meritorious Service Cross, and the NASA Exceptional Service Medal. Drawing upon his insights from an extensive career in the astronaut corps, the Colonel will discuss the necessity for both preparation and reaction to complex change, with our members at the premier dinner event for the North American distribution industry. Held annually, NAW’s Executive Summit gathers the top executives across the wholesale distribution industry for world-class education and programming, and to discuss the future of the industry. This year’s theme is the Next Frontier of Wholesale Distribution. The wholesale distribution industry has seen America through every advancement and inflection point in history. Whatever the next frontier looks like, the wholesale-distribution industry will be there to meet the moment and lead the way. NAW is one of America’s leading trade associations, representing the $7.4 trillion wholesale distribution industry. Founded in 1946, NAW is comprised of national, regional, and state employers of all sizes, industry trade associations, partners, and stakeholders spanning all sectors of distribution. Our industry employs more than 5 million workers throughout the United States and accounts for 1/3 of the U.S. GDP. There are 35,000 Wholesale-Distribution companies that operate nearly 150,000 places of business across North America, including all 50 states. NAW’s mission is to deliver world-class programs and services designed to help the most dynamic companies in Wholesale Distribution succeed. Our programming is tailored for the CEOs, senior executives, and rising leaders at our member companies and associations. Members engage with NAW through our offerings in Thought Leadership, Networking, Executive Education, Benchmarking/Research, Shared Resourcing, Partnerships, Government Relations, and Public Affairs.