Gordon Report: Why job vacancies are surging & likely to continue
The Great Disruption Aftermath As the labor market starts recovering from the severe disruptions caused by the COVID-19 pandemic, there are some reasons for hope and many reasons for concern. The labor participation rate which continues to remain 1.1 percent lower than before the pandemic’s start, may rise somewhat as normal schooling enables more women to return to the workforce and the fear of contracting COVID subsides. On the other hand, reports are showing that students at all levels have lost a year or more of learning, and community college enrollments have declined at a time when job skill requirements are growing. The biggest and most persistent negative factor is the shrinkage of the U.S. working-age population in this decade. The baby boomers who caused a huge surge in the working-age population are retiring in droves and this will continue until 2030. As the U.S. birthrate declined precipitously starting in the 1970s, a much smaller cohort is now entering the workforce. Also, since 2017 fewer immigrants have been admitted to the United States. Current Job Vacancies Soar The rebound from the pandemic and the shrinking labor pool has caused the unemployment rate to plummet and job vacancies to soar. An estimated 10.7 to 12.5 million jobs are now unfilled. The Bureau of Labor Statistics June JOLTS Report showed high rates of job vacancies in many major business sectors: information 7.9 percent, health care 9.1 percent, education 8.4 percent, and professional/business services 8.3 percent. The National Federation of Independent Business reported an all-time high of small businesses that cannot find qualified applicants for skilled positions. A January 2022 Fortune/Deloitte survey reported that 71 percent of CEOs expected that labor and skills shortages will significantly disrupt their business strategies over the course of this year. U.S. defense contractors have major staffing shortages. Their aging pool of high-skill specialized employees – particularly engineers with security clearances – is rapidly shrinking as they reach retirement age. These are also tough times for military recruiters. As of late June, only 40 percent of the 57,000 new recruits that the U.S. Army wants by September 30 had been enlisted. The Navy, Marine Corps, and even the Air Force are also having trouble finding personnel that meets their fitness and educational requirements. To retain workers and recruit new ones, many employers are raising salaries or offering special hiring bonuses. So far in 2022, the average increase in base pay in the United States is 4.8 percent. As there currently is a shortage of one million registered nurses in the United States, hospitals are offering up to a $40,000 signing bonuses to nurses who sign a two-year contract. Walgreens Boots Alliance is offering signing bonuses of up to $75,000 to pharmacists who agree to stay in their jobs for a specified period. The Society for Human Resource Management reports that projections for 2023 indicate that salaries will increase from 4 to 5 percent driven by continuing shortages of skilled workers. Can We Enlarge the Labor Pool? As we cited earlier, the labor participation rate remains below pre-pandemic levels. As of June 2022, there were about 100 million Americans of working age that is currently not employed or looking for work. We estimate that about 21 million are deterred from seeking employment because they lack the skill requirements for vacant jobs but could gain them if provided with entry-level training. Many of the 5.6 million Americans currently listed as unemployed also are in the same position. Yet only 20 to 25 percent of American businesses have training and education programs. This includes both entry-level job training and upgrading the skills or knowledge of current employees. For every dollar our chief foreign competition invests in worker training, U.S. business contributes just 20 cents! Can Robotics and Artificial Intelligence Fill the Gap? Many industry analysts are saying robots will largely solve current worker shortages. Businesses are investing billions in robotics and AI. A Material Handling Institute survey found that its members plan to increase robotics in warehouses by 50 percent over the next five years. However, as nations such as Singapore that have successfully automated industrial facilities illustrate, this approach relies heavily on having a high-skill labor pool and providing retraining to workers whose jobs now require programming, monitoring, or repairing automated equipment. While AI software can now generate text and field telephone inquiries, it can’t go beyond the set of data with which it is programmed. It can’t solve cause-and-effect problems or learn about the world like a child. Advancements in AI and robotics will require HI (human intelligence), i.e., more knowledgeable workers. How to Expand the Knowledge Pool Raising salaries will not generate more qualified employees, it will only increase job churn and fuel inflation. The Fourth Industrial Revolution requires a higher proportion of workers to be high-skilled, and their skills and knowledge need to be continually updated to keep pace with rapid technological change. Surveys indicate that most American workers want to work for employers that provide workers with opportunities to upgrade their capabilities. Cooperative options for providing training and education need far more support. Small businesses particularly can profit from participating in regional associations in which businesses, educational institutions, and training providers work together in developing programs that develop and retrain workers with in-demand job and career skills. About the Author: Edward Gordon is available to provide customized presentations on talent and the current and future U.S. and global labor market. Please visit our website www.imperialcorp.com for more information or contact us by email at imperialcorp@juno.com or by calling 312.664.5196.
Getting On-the-Job Training Right: Four strategies to start using now
“I learned so much during orientation. It’s too bad I won’t use most of it for six months. I took some notes, but I’m sure I won’t remember half of what they told me to do.” “I’m overwhelmed. I learned a new piece of equipment today. The person showing me what to do knew everything. The problem I had was the deep dives. He spent so much time on troubleshooting techniques. It was just too much for my first day.” “I can follow the steps, but I have no idea why I’m doing what I’m doing. I sort of feel like a trained monkey. I hope nothing goes wrong because I will have no clue how to fix it if something does.” Despite our best efforts, it’s not as easy as it looks to get the training equation right. We train too early, we train too much, or we make a host of other errors. While some of us learn from our mistakes, many of us practice a cycle of rinse and repeat as we make the same blunders year after year. The good news is it doesn’t have to be this way. With some careful planning and follow-through, you can avoid problems many people will encounter again and again. Strategy One: Keep Training Relevant and Immediately Applicable Countless onboarding programs attempt to teach everything a person would ever want to know or need to know about a job in the first few hours, days, or weeks. The information is essential, but it has no immediate value. Subsequently, learners become overwhelmed in class, and then they don’t have opportunities to apply or reinforce what they’ve learned for months or even years. Good training designers know the value of careful pacing, and they practice just-in-time training when they can. Ask yourself, what does my learner need to be successful on the first day, the first week, and the first month? Teach those needs as much as possible, and save the more in-depth information for a more appropriate time. What do you need to prioritize? Strategy Two: Connect to Why Again and Again When people don’t know why they are doing something, they don’t understand the big picture. While they get the process at a surface level, their limited understanding potentially keeps them from following procedures later. For example, if someone is learning how to use a printer/copier/scanner/fax machine and part of the process is putting the guard up on the paper tray with jobs over 100 sheets, without explaining why that’s important to do, that learner might take it upon himself to skip that step back on the job. Only when papers are scattered all over the floor and have to be re-collated does the learner know the importance of raising the guard. Great trainers make connections. They repeatedly explain why they’re doing what they’re doing, why procedures are written as they are, and so forth. Are you connecting the dots as well as you should, or could you do a better job? Strategy Three: Use Multiple Channels to Cement Learning I showed her how to do it, she did it, and now she’s trained. Maybe that’s true for the simple stuff, but for the complex processes and procedures, multi-channel encoding reigns supreme. For example, show learners in real-time how to complete a process. Then do it again, at the same time providing a narration track while the learner takes notes. Next, have the learner read aloud the notes she’s taken. Finally, have the learner demonstrate the procedure. The multi-channel approach allows learners to see, to hear, to write, to speak, and to do whatever process they are learning. Depending on the learner, some senses may be more powerful than others. And in rare cases where there is no preference, repetition wins the day. What can you do differently to engage more senses? Strategy Four: Teach with Reference Tools It’s one thing to conquer a task during class or one-on-one job coaching, but it’s entirely another to reproduce those results on the job. People who have mastered the training function know to develop and teach reference tools in addition to processes themselves. Ask yourself what kinds of support you need to develop. Decide where you need to incorporate them in your training plans. Those who learn how to solve problems themselves are worth their weight in gold. In addition to strong productivity, these people are also usually happier and more motivated than those who don’t have the tools to stand on their own feet. Four strategies and none hard: make training relevant, connect to why, repeat information using different channels, and incorporate the tools learners should use to solve problems back on the job. If done deliberately and with routine, you will almost certainly get a good result. 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.
OpX leadership network offers updated FAT Guidance
Introducing the newly revised One Voice Factory Acceptance Tests – Protocols for Capital Equipment in the CPG Industry work product, designed to assist consumer packaged goods (CPG) companies and OEMs improve the factory acceptance test (FAT) process for all. This critical industry guide was developed by the OpX Leadership Network convened by PMMI, The Association for Packaging and Processing Technologies. The Factory Acceptance Tests work product is designed to resolve FAT criteria, expectations, and miscommunications that often result in unbudgeted costs in travel and material, increased timelines, and overall confusion for CPGs and OEMs. This update includes new leadership guidance, an additional review of responsibilities for both OEMs and end users, as well as the integration of the Virtual FAT work product, now an appendix versus a stand-alone product. “When conducting an effective FAT, clear communication between all parties is critical,” says Bryan Griffen, senior director, industry services, PMMI. “This latest update helps streamline that communication and facilitate a more productive FAT, regardless of whether it is virtual or in-person.” The OpX Leadership Network was founded in 2011 by PMMI to ensure CPG companies and OEMs are well connected and well prepared to solve common operational challenges, make smarter decisions, and achieve operational excellence. The revised FAT work product, as well as other operational solutions, are available for free download at opxleadershipnetwork.org/projects/download.
American Staffing Association elevated to Ambassador in OSHA Safety Program
The American Staffing Association was promoted to ambassador status in recognition of its longstanding alliance with the Occupational Safety and Health Administration during a signing ceremony today. Ambassador status reflects OSHA’s recognition that an alliance participant has built, and will continue to maintain, a productive cooperative relationship with the agency. As an ambassador to OSHA’s Alliance program, ASA will continue to work with OSHA to: Help staffing firms, host employers, and temporary workers recognize and prevent workplace hazards Speak, exhibit, or attend OSHA or ASA conferences, local meetings, webinars, or other events Share information among OSHA personnel, staffing industry safety and health professionals, and ASA member companies regarding temporary worker safety best practices “The health and safety of temporary workers is a top priority for our member companies in the staffing and recruiting industry,” said Richard Wahlquist, president and chief executive officer at ASA. “We are proud to take the next step in our continued partnership with OSHA as we work to ensure temporary workers can do their jobs safely.” ASA signed a formal alliance with the Occupational Safety and Health Administration in 2014 to promote awareness of health and safety measures in the workplace, including the Temporary Worker Initiative, Safe and Sound Campaign, and Safety Matters web page. The ASA Safely Back to Work campaign also provides employers with resources and guidance regarding Covid-19 prevention in the workplace.
ASSP encourages involvement in Safe + Sound Week
Everyone can play a role in minimizing workplace risks that lead to injuries, illnesses, and fatalities. The American Society of Safety Professionals (ASSP) encourages involvement in Safe + Sound Week, an annual workplace safety campaign spearheaded by the Occupational Safety and Health Administration (OSHA). The nationwide event takes place Aug. 15-21. More than 1,300 businesses have already registered online to join the event, which recognizes the successes of workplace safety and health programs and provides information on how to keep America’s workers safe. “It’s easy to take for granted that our family members will return home safe and healthy at the end of the workday,” said ASSP President Christine Sullivan, CSP, ARM. “That is far from a guarantee, and employers must recognize the value of safety and health management systems to protect workers across all industries.” According to the U.S. Bureau of Labor Statistics, more than 5,000 workers are killed each year on the job (a rate of 14 per day) and more than 3.6 million suffer a serious job-related injury or illness. ASSP’s 36,000 members help organizations around the world implement safety and health programs to proactively identify and manage workplace hazards before they lead to problems. The results are increased sustainability, higher employee satisfaction, and an improved bottom line for businesses. “The Safe + Sound campaign draws attention to the responsibility we all have to make our workplaces safer, and we’re proud to be a partner in that effort,” Sullivan said. Join ASSP’s social media outreach on Twitter and Facebook to share resources and bring value to the OSHA campaign by using #SafeAndSoundAtWork.
ARA adds to leadership team focused on Rental Workforce Development initiatives
The American Rental Association (ARA) announces Erika Singleton as the association’s new Workforce Development Manager. With a background in human resources management, employee training, and program marketing, her role will work to address the industry labor shortage by promoting rental as a career. “We’re elated to have Singleton on board,” said Tony Conant, ARA CEO. “She’s the perfect fit to support our current and future workplace initiatives due to her extensive experience and her proven success in driving new strategies and solutions forward.” The current ARA workplace initiatives include an industry job portal, best practices documents, customizable job description templates, employee recruitment videos, and an employee recruitment website — exclusively available for ARA member access. Singleton will also serve as a resource on additional topics, such as the following: Rental industry public speaking – Tips for speaking at colleges, trade shows, career fairs, and more. Attending career and job fairs – Advice on how to best promote rental careers among various audiences. Workforce solutions – Guidance and resources for attracting quality candidates for rental industry careers and temporary employment opportunities. Alternative funding programs – Understanding special grants, funding, and local and state programs available for employers to use. “Adding Erika to our team will enhance current workplace initiatives,” said James Auerbach, ARA’s Vice President for the Event Segment and Rental Industry Workforce Development department. “She is focused on continuing to expand her knowledge and putting her expertise into practice in her role with ARA.”
Percentage of Female Leaders in Transportation continues to increase
New data by Women In Trucking’s WIT Index shows an increase in Leadership and Boards of Directors The percentage of leaders in corporations in the commercial freight transportation industry continues to increase, according to new data highlighted in the WIT Index, which was just released by the Women In Trucking Association (WIT). The WIT Index is the official industry barometer to benchmark and measures each year the percentage of women who make up critical roles in transportation. The 2022 WIT Index shows that 33.8 percent of C-suite executives in transportation companies are women, an increase of 1.5 percent in 2019 when the last WIT Index was measured. In addition, the 2022 WIT Index shows that 39.6 percent of company leaders are female. “Company leaders” are defined as someone with supervisory responsibilities and also include executives within the C-suite. “Every large carrier today started with a man and a truck,” said Ellen Voie, WIT’s president and chief executive officer. “As more and more women become leaders, owners, and directors in the trucking industry we are looking forward to the days of women-owned and led companies. In addition, this year’s WIT Index shows that 31 percent of individuals serving on boards of directors are female. There is evidence that larger companies in transportation tend to have a smaller percentage of women on their boards, according to Voie. For example, the only 14 publicly traded asset-based carriers had an average of 23 percent women on their board of directors in 2021, according to Bloomberg. These companies continue to make progress in diverse gender representation on their boards, as this was up from 22 percent in 2020 and 18 percent in 2019. However, there is still significant to be done in incorporating more gender diversity into boards of directors, as the 2022 WIT Index shows that 21 percent of respondents have no females on their boards. Initiated in 2016, the WIT Index is comprised of average percentages of females in various roles that are reported by companies in transportation, including predominantly for-hire trucking companies, private fleets, transportation intermediaries, railroads, ocean carriers, equipment manufacturers, and technology companies. This data was confidentially gathered from January through April of 2022 from 180 participating companies and percentages are reported only as aggregate totals of respondents. This year, WIT has expanded its collection on the percentage of women in additional functional roles, including operations, technicians, human resources and talent management, and marketing. For more information on the WIT Index and to download a full executive summary of the 2022 WIT Index findings, visit https://www.womenintrucking.org/index.
EP 304: Schneider Electric
No matter where your organization finds itself in its sustainability journey, you won’t want to miss this week’s episode of The New Warehouse. Jana Gerber, North America Microgrid President for Schneider Electric, joins me to discuss the state of sustainability in warehousing and beyond. Schneider Electric specializes in industrial automation and power management products and solutions. In addition to discussing microgrids and sustainability, Jana shares Schneider Electric’s holistic approach to sustainability. Key Takeaways Schneider Electric is working on three areas to help companies with their sustainability journey: strategy, digitization, and decarbonization. Jana explains precisely what a microgrid is and why businesses should be motivated to be on a microgrid to manage power, provide cost predictability, achieve sustainability goals, and improve resiliency. Jana shares cost-effective ways Schneider Electric provides energy service solutions for warehouses and fulfillment centers. Schneider Electric focuses on helping customers become net zero through a holistic sustainability approach. This approach to sustainability provides actionable steps for their customers, providing a map for starting and moving forward on the sustainability journey. Listen to the episode below and leave your thoughts in the comments. The New Warehouse Podcast EP 304: Schneider Electric
Women In Trucking Association names 2022 Top Woman-Owned Businesses in Transportation
Redefining the Road magazine, the official magazine of the Women In Trucking Association (WIT), announced today the recipients of the 2022 “Top Woman-Owned Businesses in Transportation.” The list was created to recognize women in leadership and encourage more women to become proactive leaders in their organizations – and even start their own businesses, according to WIT president and CEO Ellen Voie. The program supports WIT’s overall mission: To encourage the employment of women in the trucking industry, promote their accomplishments, and minimize the obstacles they face. Entrepreneurship is a viable means of economic self-sufficiency, and many women are choosing an enterprise connected to transportation to be part of their career aspirations, according to Brian Everett, group publisher and editorial director of Redefining the Road magazine. Criteria used to identify qualified applicants include majority ownership by a woman, financial stability and growth, innovation, and entrepreneurial spirit. Each company was nominated and chosen based upon business success and accomplishments–including those related to gender diversity. “This year’s list is comprised of companies from a diverse range of business sectors in the commercial freight transportation marketplace, including motor carriers, third-party logistics companies, and original equipment manufacturers,” said Everett. “Those who made the list are impressive, high-growth companies that are led by innovative, resourceful female pioneers in the transportation industry.” Companies named to the 2022 “Top Woman-Owned Businesses in Transportation” list and the primary female business owners are: AGT Global Logistics (Angela Eliacostas, President and Founder) Andy Transport, Inc. (Andreea Crisan, President and CEO) Aria Logistics (Arelis Bonilla, President and CEO) Atlantic Logistics (Evie Hooper, President and Founder) Bennett Family of Companies (Marcia G. Taylor, CEO) Candor Expedite (Nicole Glenn, Founder and CEO) Garner Trucking, Inc. (Sherri Garner Brumbaugh, President and CEO) Kenco Logistics (Jane Kennedy Greene, Chairwoman) Knichel Logistics, Inc. (Kristy Knichel, CEO and President) Powersource Transportation (Barb Bakos, President and Owner) Rihm Family Companies (Kari Rihm, President and CEO) S-2international, LLC (Jennifer Mead, C.T.B./CEO and Owner) Sunset Transportation (Lindsey Graves, President and CEO) Tucker Freight Lines, Inc. (Saunya Tucker, CEO) United Federal Logistics, Inc./UFL Services, Inc. (Jennifer Behnke, President and Co-Owner) Veriha Trucking (Karen Smerchek, President and Owner) Walker Transport, LLC (Sandra Walker, Owner)
Is Business about Dollars or People?
The answer to this question may seem obvious, depending on what side of the proverbial fence you sit on. Traditionalists may say business is fundamentally about creating value and generating profit. Others may say that it’s about being good stewards of the environment, people, and society, creating something of value greater than simply money. But a business can’t survive without money. In fact, 82% of small businesses fail due to cash flow problems. A business also can’t survive without people. A recent study found nearly 70% of employers worldwide are having a difficult time filling vacancies, causing businesses to fail or cut back dramatically on hours of operation. When revenue is declining, it’s all about cutting costs. When we’re struggling to recruit talent, it’s all about building culture. But why do we have the mindset that these things are mutually exclusive? Is it that we struggle to grow or that we misunderstand growth? One of the most amazing and powerful statistics from a five-year study, where 94% of respondents from some of the world’s largest companies said that there are barriers to achieving their growth targets. But it’s not because of a lack of market, market saturation, technologies they couldn’t possibly acquire, unbeatable competitors, or government regulations. They said that 94% of the time it is internal, with the primary reasons being related to organizational complexity. The traditional issues, including poor communication, unclear roles and responsibilities, senior management distractions, too many middle levels, issues with focus and trust, and everyone spending all their time in meetings/calls – these are both people problems and money problems. These issues waste organizational resources and time, draining bandwidth and costing the company money – even if it can’t be directly seen on a P&L. I’d love to say these problems can be solved with “strong core values,” but we all know that’s bs. These problems are ignored so long as the money keeps rolling in. As the problems fester, people get annoyed and leave. If organizations really wanted to focus on the dollars, they’d focus on the people. Slow decision-making, excessive bureaucracy, one point of failure, crappy “me-too” products to ‘make a quarter,’ which cycles over and over — that kills not only culture but the long-term growth potential of a company. True leadership of an organization is not really about hitting targets as much as it’s about harnessing the energy and passion of other people, ensuring they understand the goals and how to reach them. If we solely focus on money, we can’t care about people. But we can’t ignore the money – we just need to have a better understanding of where the money and the people intersect, and how to create a profitable harmony. 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 The Customer Mission: Why it’s time to cut the $*&% and get back to the business of understanding customers, No Disruptions: The future for mid-market manufacturing, and her upcoming book, What To Ask, coming 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, 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.
PTDA welcomes new member MEM Industrial, LLC
The Power Transmission Distributors Association (PTDA), an association for the industrial power transmission/motion control (PT/MC) distribution channel, welcomes a new member company. MEM Industrial, LLC (Wichita, Kan.) began in 2003 as a rebuild shop for electric motors, gearboxes, and pumps. In 2015, the company opened a parts side–Midwest Industrial Supplies. Following the 2019 merger of the two ventures, MEM Industrial LLC was formed. Today, MEM is the largest U.S. motor stocking distributor in the state of Kansas. MEM is a distributor of variable speed drives, bearings, belts & chains, conveyors & material handling components, shaft couplings & u-joints, gearings, motors, industrial specialty chemicals, linear motion components, pumps, and accessories. “We felt joining PTDA was a must to let people know we’re part of the best out there, and it never hurts to network,” says Scott Arnold, general manager. The Power Transmission Distributors Association (PTDA) is the leading 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 billion in sales and span over 2,700 locations. PTDA members also include manufacturers that supply the PT/MC industry.
Nominations open for 2022 Influential Woman in Trucking award
The Women In Trucking Association (WIT) and Daimler Truck North America (DTNA) are seeking nominations for the 2022 Influential Woman in Trucking award. More than a decade ago, the award was created to honor women in the transportation industry who make or influence key decisions in a corporate, manufacturing, supplier, owner-operator, driver, sales, or dealership setting. Nominees must also have a proven record of responsibility, mentorship, and serve as a role model to other women in the industry. “Women continue to make their mark in the trucking industry,” said Ellen Voie, president and CEO, Women In Trucking. “It is a privilege to share their stories and inspire others through this award.” Nominations will be accepted through September 20 at https://witawards.secure-platform.com/site The winner will be announced at the WIT Accelerate! Conference & Expo held in Dallas, Texas, November 13-16, 2022. Each finalist will be asked to serve as a panelist for the Influential Women in Trucking panel discussion on November 15, 2022. “DTNA continues to support this award because we feel strongly about promoting and raising awareness of this industry and the many career paths it creates. Especially now more than ever, we want to highlight trucking in these unprecedented times,” said Kary Schaefer, Chief Engineer, Cab Systems and Entire Vehicle Engineering, Daimler Truck North America. “This award highlights the exceptional female leaders that help shape our industry and we want to show our support and continue to foster diversification in the workplace.” Past recipients of the Influential Woman in Trucking award include: 2021 – Lily Ley, vice president and chief information officer, PACCAR 2020 – Kristy Knichel, president of Knichel Logistics, and Jodie Teuton, co-founder of Kenworth of Louisiana 2019 – Ruth Lopez, director, transportation management, Ryder System, Inc. 2018 – Angela Eliacostas, founder and CEO, AGT Global Logistics 2017 – Daphne Jefferson, principal and executive coach, Jefferson Consulting Group, LLC (former deputy administrator, FMCSA) 2016 – Ramona Hood, president and CEO, FedEx Custom Critical 2015 – Kari Rihm, president, Rihm Kenworth 2014 – Marcia Taylor, CEO, Bennett International Group 2013 – Rebecca Brewster, president & COO, American Transportation Research Institute 2012 – Joyce Brenny, president, Brenny Transportation, Inc./Brenny Specialized, Inc. 2011 – Rochelle Bartholomew, CEO, CalArk International
Distribution Industry condemns Tax Increase on American Families and Businesses
H.R. 5376 raises taxes on the American middle class by $16.7 billion in 2023 The National Association of Wholesaler-Distributors (NAW), which represents the voice of the 7.4 trillion-dollar distribution industry, and employs more than 5 million U.S. workers, sent a letter today to all members of the U.S. Senate opposing H.R. 5376, The Inflation Reduction Act, and urging legislators to vote against the bill. “NAW and our members are incredibly disappointed and disheartened that the U.S. Senate would aim to raise taxes on an already taxed American middle class, during a period of record-high inflation and continued economic uncertainty,” said NAW CEO, Eric Hoplin. “This bill irresponsibly raises taxes on millions of middle-class workers, in violation of President Joe Biden’s pledge not to raise taxes on Americans earning less than $400,000 per year. We encourage Congress to reconsider the strain this will place on American families and businesses and vote against H.R. 5376,” Hoplin concluded. The bill, which is the latest iteration of Build Back Better, and passed the U.S. House of Representatives in November, includes a new $313 billion corporate alternative minimum tax on “book income,” provides $80 billion in new funding for the Internal Revenue Service (IRS), and spends billions of dollars on healthcare and energy subsidies and comes at a time when Americans are struggling with record high inflation, economic uncertainty, and the continued stress of an ongoing global pandemic. “This new funding will empower the IRS to audit, scrutinize, and even harass many family-owned, small businesses, that are following the law and paying their taxes,” said Jade West, Chief Government Relations Officer for NAW. “Now is not the right time for increasing taxes on hardworking Americans and small business owners. Rather than increasing audits, the IRS should prioritize modernizing its IT services, addressing the backlog of tax returns, and making the agency more customer friendly,” concluded West. NAW is the “national voice of wholesale distribution,” an association comprised of employers of all sizes and national, regional, state, and local line-of-trade associations spanning the 7.4 trillion wholesale distribution industry, that employs more than 5 million workers in the United States. There are approximately 35,000 enterprises with almost 150,000 places of business in all 50 states and the District of Columbia, that are affiliated with NAW.
Staffing employment remains high after Holiday
Staffing employment increased 4.9% in the week of July 11–17, returning to a rounded value of 106 after a drop over the July Fourth holiday. Several staffing companies cited a holiday or school break as factors preventing further growth. Staffing jobs were up 9.5% from the same week last year. New starts grew in the 28th week of the year, rising 21.1% from the prior week. About half of staffing companies reported gains in new assignments week-to-week. The ASA Staffing Index four-week moving average edged up marginally from the prior week but held at a rounded value of 105, as temporary and contract staffing employment for the four weeks ending July 17 was 9.2% higher than the same period in 2021. “Staffing employment is still holding strong despite a brief decline over the Fourth of July,” said Tim Hulley, ASA assistant director of research. “The ASA Staffing Index continues to measure above last year’s levels and is at an all-time high for the month of July.” This week, containing the 12th day of the month will be used in the July monthly employment situation report scheduled to be issued by the U.S. Bureau of Labor Statistics on Aug. 5.
Look both ways before hiring
Internal, External, and other solutions to staffing shortages It’s no secret that the staffing shortages facing most businesses today are extremely challenging. It is also highly unlikely that these challenges are going to resolve in the near term. So, what do you do now when you just cannot find the talent you need? It is time to rethink all of your staffing options. The key is to make the most of the staff you have and to augment them with outside resources and technology. Prioritize Those Who Interface with Your Customer The foundation of business success is based upon your revenue and the stability of your revenue streams. Customer loyalty and retention depend on their satisfaction. Prospects rely on their ability to access the information they need to make informed decisions and gain a comfort level with their options. Organizations with a history of sales success often rely on operational delivery to keep them going when they are short-staffed. Yet it is your customer-facing staff who are the most valuable to sustaining enterprise revenue. Identify staff who interact with your customers along the entire range of their customer journey. Their success in meeting customer needs, satisfaction, and prospect demands determines if you can satisfy and keep them. If they have the bandwidth to provide exceptional service, they can keep your customers and expand your prospect pool. Today’s consumers are looking for faster information. Many prefer to get information via video or audio. Adjust to how they want to consume information. Streamline your team’s workload by creating tools and resources to quickly get them the answers they want and need. Ensure they have the tools and resources they need to be more efficient. Clarify what can help them deliver a better customer experience. Remove the roadblocks to their success. Outsource When Necessary The gig economy is here to stay. Leveraging external relationships with outsourced resources can help you flex your staffing and can be a valuable way to get the work done. While not as optimal as building your own team, the pressure relief you experience when critical work is being completed can give you the breathing room needed to determine if this role really needs a full-time hire or it can be permanently outsourced. For small projects, online resources like Fiverr and Upwork provide you with worldwide access to Gig Workers with specific skills that are needed for short-duration work. Most of these online sites have filters allowing you to clarify what your service needs, information ahead of time on the potential cost, control over where your talent comes from, and what languages they speak. Staffing Agencies can bring in talent to your organization for a project that is going to take a bit longer. While it will be more expensive, keep in mind, that you are not paying any benefits and you will not get hit with an unemployment claim when you no longer need them. Agencies vet the staff who work with you and will help you find the right talent you need. Trusted Outside Vendors can provide key services for you and do bookkeeping, administrative work, sales support, social media, website management, etc. Long-term vendors have deep insight into your history, your team, and your culture. They know your preferred communication methods and how you like to work. Outside vendors are an exceptionally valuable safety valve when you cannot find the right permanent talent. Do not try to manage too many different outside resources. Focus on the most critical work they can provide for you and engage in short-duration tests to see if you have chemistry and if they provide you with value. Consider the Potential of Technology Technology and automation use is exploding as companies are seeking opportunities to invest in devices and software to provide options to leverage the staff they already have and enhance their productivity. Autonomous devices include robots, drones, vehicles, floor cleaners, and more. These devices can sense the environment around them and operate without human involvement. Other devices such as exoskeletons are able to support a worker’s body and provide augmented biological capabilities such as safely lifting heavy objects. While robotics as a field is advancing, they are not truly autonomous of human interaction. They still need people involved in the process to use them. This includes programming, monitoring them, and changing batteries as they perform their service. At best this is now “co-botics” and people will never be fully eliminated from the equation and they will work in tandem. As these options expand, you can take advantage of them too, even if you are a small business. There is growing interest in how data and analytics can be used to manage staff productivity and service delivery. Most technology devices are already collecting data. When combined in the future with artificial intelligence, the possibilities for data analytics appear to be endless. When the data is combined with AI interpretation, this can provide valuable insight to help streamline your processes and maximize staff efficiency. Evaluate how you are using the software and technology currently deployed in your business to see how you can maximize their value. The return on the investment (ROI) should be very carefully evaluated to identify any efficiencies achieved or productivity enhancements. Get your team any needed training so they can effectively work with advanced technologies. You might need a different skillset in your workforce to work with the technology and this may expand your workforce to pull from a broader pool of potential talent. Final thoughts It is clear that the staffing shortages are not going away. We have to find opportunities to gain increased productivity from our existing workforce and alternatives for completing the work we need done. Focusing on the needs of our customer-facing team members, making smart use of outside resources and maximizing technology use provide viable options for addressing the issue. When you expand your potential for getting the job done, you are more likely to find the resources you need. About the
EP 303: Instawork
In this week’s episode, we discuss the state of the warehousing labor market with Daniel Altman, Chief Economist at Instawork. Instawork provides a flexible solution for employers and employees by connecting in-person hourly workers with businesses across the US and Canada. While working across many industries, transportation, warehousing, and logistics are significant for Instawork, especially since the pandemic. Daniel and I discuss the current state of staffing in the warehouse industry and the growing trends among employees and employers. Key Takeaways In the past, warehouses have been cautious in how they approach filling specific roles. The lack of available labor and competition have forced many businesses to get creative when it comes to hiring and seek a more flexible approach. While Instawork offers both 1099 and W2 employee services, Daniel believes the pressure of the labor market is allowing many businesses to see 1099 employees as a viable option. This is giving the opportunity for a test run with employees and employers. Daniel discusses how labor participation declined over the pandemic and how many workers have not returned to the workforce. He also shares what he feels are the three most essential factors in getting people back into the workforce. Daniel provides insights on how long staffing challenges and high wages will continue, as well as his thoughts on how automation will play a role in the future of the workforce. Listen to the episode below and leave your thoughts in the comments. The New Warehouse Podcast EP 303: Instawork
Nominations open for Women In Trucking Technology Innovation Award
The Women In Trucking Association (WIT) has announced that it is seeking nominations for its inaugural Technology Innovation award for WIT members, which is sponsored by Clean Harbors. The newly created award recognizes innovation, vision, and technical achievements that support and advance the trucking industry. Nominations are open to any WIT member who has: Contributed innovative technical or mechanical solutions, ideas, practices, or innovations in the management and maintenance of the commercial motor vehicle industry. Promoted the advancement of women in the trucking industry. Earned the respect of their peers and clearly demonstrated industry leadership and applicability of trucking products and technologies that support the transportation industry. “We’ve seen some amazing innovation in the industry to help our drivers become more efficient, safer, and productive,” said Ellen Voie, WIT president and CEO. “This award will highlight some products or services that help us advance our mission to remove obstacles as well as celebrate success!” Nominations will be accepted through September 28 at https://witawards.secure-platform.com/site. The winner will be announced at the WIT Accelerate! Conference & Expo held in Dallas, Texas, November 13-16, 2022. The award is sponsored by Clean Harbors, the nation’s leading provider of environmental and industrial services. “As a leader of safety, innovation, and technology, we’re excited to sponsor this award in conjunction with WIT,” said Michelle DeStefano, senior director of Culture and Engagement at Clean Harbors. “This is an excellent way for us to celebrate the contributions of those in trucking who are at the forefront of making positive impacts throughout the industry.”
Women In Trucking Association announces its August 2022 Member of the Month
The Women In Trucking Association (WIT) has announced Maria Rodriguez as its August 2022 Member of the Month. Maria is a professional driver for NFI Industries. As a longtime restaurant worker laid off due to the COVID-19 pandemic, Maria was seeking stable employment when her boyfriend, who was also pursuing a career in transportation, convinced her to try trucking school. Being a mother of a 4-year-old son, she needed a job to provide for her family while being close to home. She attended the New England Tractor Trailer Training School (NETTTS) and knew it was the right career path. During her time at NETTTS, NFI’s core family values and local routes stood out to her, and she was offered a driver trainee opportunity. With a consistent schedule, she appreciates being able to be home before her son finishes school. “I think I’m unique because I’m a mother and I am still able to go to work as a truck driver. It’s very rewarding to have a stable income and be able to come home to my son,” she said. Additionally, Maria is a trainee in the Biden administration’s Trucking Action Plan’s extended 90-Day Trucking Apprenticeship Challenge, which is focused on attracting and retaining talent within the transportation industry. Earlier this year, she was chosen to participate in a special White House event for the program, allowing her to make a speech about her journey to truck driving and then introduce the President of the United States, Joe Biden. The attendees of this event included freight executives, WIT President and CEO Ellen Voie, truck drivers, and senior officials. As a first-generation immigrant from Venezuela, Maria is proud to be an advocate and uses her voice to encourage other minorities, including other females and Latinas, to pursue a career in the transportation industry. “Women are capable of getting into trucking, they just need to take the first step and enroll,” Maria says. “There are plenty of opportunities where you can go over the road or if you’re a mother like myself, there are local routes where you are home daily.”
Two Sides North America Anti-greenwashing Campaign responds with record-breaking success
For years, major corporations, service providers, and government agencies have surrendered to the temptation to cloak their cost-saving efforts in a veneer of environmental virtue by claiming – without evidence – that going paperless is better for the environment. Two Sides North America (TSNA), the only industry organization to directly challenge this greenwashing, has been highly effective in stemming the tide of misleading declarations, persuading 170 major organizations to remove anti-paper environmental claims. However, as rising inflationary pressures drive cost-cutting, greenwashing is once again on the rise. To help reverse this trend, TSNA has doubled down on its anti-greenwashing efforts, and with unprecedented success. So far this year, TSNA has already broken its full-year record for the number of corporations and other organizations it has persuaded to eliminate anti-paper greenwashing claims. “Since its inception, the Two Sides Anti-greenwashing Campaign has eliminated literally billions of instances of greenwashing in the United States and Canada, and the 24 large organizations that removed misleading claims from January through July represent millions more,” says Two Sides North America President Kathi Rowzie. “These types of claims pose a serious threat to the economic security of the more than 7 million people whose livelihoods depend on a healthy North American paper, printing, and mailing sector. Our recent research found that 65% of consumers who’ve seen anti-paper greenwashing are influenced to go paperless.” That same research found that the Two Sides Anti-greenwashing Campaign has annually preserved more than $300 million in revenue for the paper, printing, and mailing sector over the last decade. Two Sides challenges greenwashing companies and other organizations to remove unsubstantiated environmental claims in a non-confrontational way, educating CEOs and other senior management with facts from credible, third-party sources that clearly demonstrate the unique sustainability characteristics of paper products and the solid and continually improving environmental record of the North American paper industry. “Paper is one of the few products on earth that already has an environmentally sustainable, circular life cycle,” Rowzie says. “North American paper is made from an infinitely renewable natural resource – trees that are purpose-grown, harvested, and regrown in sustainably managed forests. It’s manufactured using mostly renewable, carbon neutral bioenergy in a process that uses water, but in reality, consumes very little of it. And paper products are recycled more than any other material. But many consumers believe paper is bad for the environment because corporations and other organizations they trust are telling them so. Two Sides is working hard to change that.” You can help Two Sides in the fight to eliminate greenwashing and protect North American jobs. If you see instances of anti-paper greenwashing, please send them in a PDF, JPG file, or link to info@twosidesna.org.
FSIP announces relaunch of the Technical Forum
After ten years of activity, Flight Systems Industrial Products (FSIP) has redesigned and relaunched its Material Handling Technical Forum. The new look makes navigating, posting and replying easier for customers interested in sharing their knowledge. FSIP understands business is a 24/7 event, and we value our business-to-business relationships. FSIP aims aim to provide the information you need, when you need it, even during non-customer service hours. FSIP’s community is here to help solve your problems whenever they occur. Steve Lloyd, Compliance & Quality Manager, states “Technical forums are a great troubleshooting tool for all field technicians when running into that odd issue. Chances are others have already found the solution and can share their experience with you.” FSIP invites you to join the conversation at: http://fsip.community.chat/categories