April Manufacturing Technology orders surpassed half a billion dollars
April 2022 orders of manufacturing technology totaled $513.4 million, the second month in a row surpassing half a billion dollars, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology. April orders decreased nearly 7% from March 2022 but were 27.5% larger than April 2021. 2022 orders through April totaled $1.9 billion, a 27% increase over the first four months of 2021. “Despite these strong results, there’s clearly been a lot of news related to declining consumer sentiment, everything from inflation to high interest rates to the war in Ukraine,” said Douglas K. Woods, president of AMT. “While consumer sentiment has been low since April 2021, consumer demand continues to hit record highs, leveraging consumers’ amassed savings as well as large capital investment pools looking for high-value market opportunities. “April USMTO numbers reflect ongoing consumer spending, particularly fueled by demand for manufactured goods, such as aerospace and other capital-heavy industries,” Woods continued. “Based on available economic projections, we had anticipated orders to gradually soften through the middle of the year. However, that pullback has not happened, and signs point to above-average orders for manufacturing technology into the beginning of the summer. “When supply chain issues are minimized, the continued pace of consumer-driven demand could necessitate additional capacity, prolonging a potential slowdown in the industry.”
Why decision making needs dialogue
Consider a situation where a major change for an organization is being debated amongst a leadership team. The group discusses the pros and cons, evaluating whether it should be implemented and if it will produce the outcomes they’re trying to achieve. They debate whether it’s the right direction or if other alternatives are better approaches. After a lengthy back-and-forth, they choose to proceed. The decision is communicated to the front line, and then monthly monitoring ensues. However, the results fall short of expectations. The team is frustrated. They push harder about the importance of making the change a reality, and how it will positively impact the company. They extend deadlines and lower success thresholds. Over the coming weeks, the organization cobbles together enough deliverables to meet expectations, and the change is presented in a good enough light to satisfy the executives but is far from stellar. Does this sound familiar? Why does this occur? Often we blame the plan itself – maybe there was an inherent flaw in its focus. Or it was just a bad idea in the first place. Alternatively, we blame execution – that the team couldn’t effectively implement the plan or didn’t have the skills to do so. I’d argue that blame can’t be solely placed on either camp – but I’d guarantee that a lack of dialogue between the front line and the leadership team help facilitate the failure. Most plans, strategies, or organizational changes take into consideration a wide variety of factors including the competitive landscape, organizational capabilities, and resources to name a few. Yet when these plans are derived, a dialogue between the front-line employees rarely occurs, which leaves it vulnerable to failure. Note that I said dialogue. Dialogue is not about bringing the proverbial tablets down from the mountain, but truly litmus testing your concept in collaboration with those who will have to implement it – before it is set in stone. Why is this important? Because most leaders are not immersed in the day-to-day operations. They don’t know the limitations, pressures, existing workloads, or mindsets of those who will be tasked with rolling out the change. They don’t know the true reality on the ground. This is why an early dialogue is essential. Once your change is outlined, bring to the table a handful of selected front-line employees – those who are candid enough to share their perspectives on potential pitfalls, and broad-minded enough to see the potential of the change. Accept their slings and arrows. That feedback is constructive criticism, which can make or break the success of a change. Enable their contributions to be folded in, making any necessary modifications to the plan which will clearly eliminate roadblocks and open up opportunities for easier adoption. Don’t take a negative view of their feedback. Have a back and forth. Ask why and propose other solutions to their concerns. Debate. Discuss. It’s not simply about fulfilling front-line requests, but rather understanding the landscape and constraints in which they are living and identifying ways to smooth the path that’s efficient, effective, and beneficial for everyone involved. By having a dialogue with those who will have to make your plan a reality, you’ll ensure any change has a much stronger chance of real success. 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, The Financial Brand, SMPS Marketer, 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.
Session with OSHA’s Parker added to Safety 2022 in Chicago
The American Society of Safety Professionals (ASSP) welcomes Doug Parker, assistant secretary of labor for occupational safety and health, to a special general session at Safety 2022 in Chicago. Parker will attend in person to discuss the latest activities and future plans of the Occupational Safety and Health Administration (OSHA) to protect workers across the country. The newly added Q&A session to ASSP’s annual conference and exposition at McCormick Place will start at 8 a.m. CT on Wednesday, June 29, in front of thousands of workplace safety and health professionals, including online attendees who will watch the live stream from Chicago. Parker was sworn in as the 13th assistant secretary of labor for occupational safety and health on Nov. 3. He will be interviewed on stage about many issues facing OSHA, including the pandemic, heat stress, recordkeeping, enforcement, falls from height, OSHA’s staffing goals, and safety and health management systems. The special session with Parker will be part of a dynamic three-day program designed to inform and inspire attendees of ASSP’s signature event, held June 27-29. Safety 2022 is the 61st annual conference of the world’s oldest professional safety organization. The event returns to Chicago for the first time since the Society celebrated its 100th anniversary there in 2011. ASSP is headquartered in the Chicago suburb of Park Ridge. ASSP will live stream five major sessions from Safety 2022 so in-person and online attendees experience them together in real-time. The broad access to Safety 2022 programming will enable safety and health professionals around the world to conveniently grow their career development and elevate safety in their organizations. The safety and health of everyone at the convention center remain a priority. Under ASSP’s on-site safety plan, attendees must provide proof of full vaccination or a negative COVID-19 test within 48 hours of badge pick-up. ASSP continues to track public health guidance and may revise its protocols as the event draws closer. Safety 2022 attendees can register online, with groups of eight or more from the same company qualifying for a discount. Stay informed of the latest conference news and safety and health protocols at safety.assp.org.
EnerSys® supports National Forklift Safety Day 2022
EnerSys®, the global provider of stored energy solutions for industrial applications, joins the Industrial Truck Association (ITA) in support of its annual National Forklift Safety Day. Now in its ninth year, National Forklift Safety Day 2022 will be observed on Tuesday, June 14, 2022, and coincide with a keynote presentation at the National Press Club in Washington, D.C. Estimates from the Occupational Safety and Health Administration (OSHA) indicate nearly 100,000 workers are injured each year from accidents involving the almost 900,000 forklifts currently in operation in the U.S. Statistically, it means that more than one in every ten forklifts will be involved in an accident each year. Those numbers align with data from the Bureau of Labor Statistics, which also shows nearly 100 workers are fatally injured in forklift-related incidents annually. OSHA also estimates that nearly 70% of all forklift accidents can be prevented with proper training or policy. To help facilitate such training, the ITA works with OSHA to develop educational seminars and resources that highlight best practices in manufacturing and warehousing environments. National Forklift Safety Day reflects this mission and provides an opportunity to emphasize operator training, promote greater pedestrian awareness, and share resources about forklift safety. “From battery design and installation to on-site training, safety is a top priority at EnerSys, and we proudly support ITA’s National Forklift Safety Day,” says Harold Vanasse, Senior Director of Marketing, Motive Power Global at EnerSys. “With the world’s supply chain still under tremendous pressure to recover from the pandemic and other influences, raising awareness of lift truck safety and best practices is more crucial than ever. We applaud ITA’s ongoing efforts to do that through National Forklift Safety Day.” For more information about National Forklift Safety Day, click here.
Carolina Handling partners with Wake Tech on new Forklift Diploma program
Charlotte, NC-based Carolina Handling has partnered with Wake Technical Community College and five other material handling equipment dealers to offer a new Forklift Diploma Program that will begin this fall at North Carolina’s largest community college in Raleigh. The new one-year Forklift Diploma Program will pair students with a sponsoring dealer to prepare them to be technicians specializing in the maintenance and repair of lift trucks. Students will attend classes on Monday and Tuesday at Wake Tech and work the remainder of the week at the sponsor’s dealership earning work-based learning credits and an hourly wage, according to Jon Paige Kearns, professor and program director of Heavy Equipment & Transport Technology at Wake Tech. Upon graduation, students will be entitled to tuition and textbook reimbursement based on the agreement with their sponsoring dealer. There also may be a tool program incentive available. The new forklift diploma program will begin on August 15, with space for 16 students. Those interested in the program should apply by August 5. “For a technician, the forklift industry is just not known,” Kearns said. “People see the service vehicles driving around but I just don’t think they put two and two together, so I would like Wake Tech’s heavy equipment program to be a model for programs like this at other schools. There’s no education that will better prepare a student for a career than if they’re going to school and working with their future employer. Their career has been mapped out and they’re ready to go on day one when they graduate and go full time.” James Sanders, Director of Operations-North Division at Carolina Handling, said the company’s partnership is an opportunity to raise awareness about the forklift industry and to help recruit technicians to a growing organization that needs to hire at least 70 technicians in the coming year. The exclusive Raymond Solutions and Support Center for the Carolinas, Georgia, Alabama, and the Florida panhandle, Carolina Handling also will provide the Wake Tech program with drive units, motors, and other components for hands-on learning and electric pallet jacks, reach trucks, and other equipment to coincide with classroom instruction. “We hire a lot of associates out of Wake Tech,” Sanders said. “Wake Tech has been a great partner and we hope that we can be one, as well. We’ve all come together with other dealers to help support this program so we can draw students from it. It’s good for our community and it’s good for our industry.” Going from a traditional five-day school week to the new forklift program’s work-study model also will help build relationships between students and future employers, Kearns added. “When students graduate, they actually are staying with their sponsoring dealer whereas before, students were jumping all over,” he said. For more information on Wake Tech’s new One-Year Forklift Diploma Program, contact Paige Kearns at jpkearns@waketech.edu or (919) 866-5257.
Women In Trucking Association announces its June 2022 Member of the Month
The Women In Trucking Association (WIT) has announced Elizabeth Perez as its June 2022 Member of the Month. Elizabeth is a professional driver for DVL Express and was named one of their best drivers for September 2021. She began her career in truck driving three and a half years ago and has been with the company for almost a year. Growing up in Mexico, Elizabeth lost her father early in life and as one of the oldest children, she took on the maternal responsibility of her seven siblings. As a result, she began working in the United States making minimum wage at a pizza restaurant. She was known to be curious and hardworking and quickly became one of the main kitchen workers who learned and managed all processes. Elizabeth tried many different career paths until one day she saw a woman driving a semi-truck. Seeing how confident and strong this woman was, she decided that truck driving would be the perfect match for her personality. “Truck driving is a job that always keeps you in suspense,” she said recalling a time she got caught in a snowstorm transporting a load from Illinois to Missouri. She has since visited all 50 states and says that Colorado and California are her favorite because they remind her of Mexico more than anywhere else. Although this career path has its challenges, she enjoys the fact that it is still rewarding in many ways. “As of now, I am thankful for the helpful and caring people that surround me at DVL Express, and I am especially grateful for my dispatcher and the connection that we share.” In her spare time, Elizabeth enjoys speaking to her family via FaceTime and exercising while waiting for a load. “As for my future, my biggest dream is to own a big and beautiful house someday, which would become a home for my whole family.”
Equipment Finance Industry confidence lower in May
The Equipment Leasing & Finance Foundation (the Foundation) releases the May 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 49.6, a decrease from the April index of 56.1. When asked about the outlook for the future, MCI-EFI survey respondent David Normandin, CLFP, President and CEO, Wintrust Specialty Finance, said, “Adapting to change is what the equipment leasing industry is all about. Our current rising rate environment will be good for the overall financial health of equipment finance companies as obligors adapt to the new world rate order and margin is built back into the business. I do think this will create challenges for many who may not have a long-term stable capital structure.” May 2022 Survey Results: The overall MCI-EFI is 49.6, a decrease from the April index of 56.1. • When asked to assess their business conditions over the next four months, 6.9% of executives responding said they believe business conditions will improve over the next four months, a decrease from 14.8% in April. 62.1% believe business conditions will remain the same over the next four months, down from 63% the previous month. 31% believe business conditions will worsen, an increase from 22.2% in April. • 10.3% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, down from 29.6% in April. 65.5% believe demand will “remain the same” during the same four-month time period, an increase from 55.6% the previous month. 24.1% believe demand will decline, up from 14.8% in April. • 13.8% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 22.2% in April. 86.2% of executives indicate they expect the “same” access to capital to fund business, an increase from 77.8% last month. None expect “less” access to capital, unchanged from the previous month. • When asked, 48.3% of the executives report they expect to hire more employees over the next four months, up from 40.7% in April. 44.8% expect no change in headcount over the next four months, a decrease from 59.3% last month. 6.9% expect to hire fewer employees, up from none in April. • 3.5% of the leadership evaluate the current U.S. economy as “excellent,” a decrease from 14.8% the previous month. 79.3% of the leadership evaluate the current U.S. economy as “fair,” up from 74.1% in April. 17.2% evaluate it as “poor,” an increase from 11.1% last month. • 3.5% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, a decrease from 7.4% in April. 27.6% indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 51.9% last month. 69% believe economic conditions in the U.S. will worsen over the next six months, an increase from 40.7% the previous month. • In May 34.5% of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 29.6% the previous month. 65.5% believe there will be “no change” in business development spending, down from 66.7% in April. None believe there will be a decrease in spending, down from 3.7% last month. May 2021 MCI-EFI Survey Comments from Industry Executive Leadership: Independent, Small Ticket “Inflation, inflation, inflation!” James D. Jenks, CEO, Global Finance and Leasing Services, LLC Bank, Middle Ticket “Supply chain issues continue to have an impact on lease commencements with dates getting pushed with delivery delays. We are seeing an increase in renewals and over-term rentals.” Michael Romanowski, President, Farm Credit Leasing
Equipment Leasing and Finance Association’s survey of economic activity: Monthly Leasing and Finance Index
April new business volume up 7 percent Year-over-Year, relatively unchanged month-to-month, up nearly 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 $900 billion equipment finance sector, showed their overall new business volume for April was $10.5 billion, up 7 percent year-over-year from new business volume in April 2021. Volume was relatively unchanged from $10.6 billion in March. Year-to-date, cumulative new business volume was up nearly 6 percent compared to 2021. Receivables over 30 days were 2.1 percent, up from 1.5 percent the previous month and up from 1.8 percent in the same period in 2021. Charge-offs were 0.05 percent, down from 0.10 percent the previous month and down from 0.30 percent in the year-earlier period. Credit approvals totaled 77.4 percent, down from 78.3 percent in March. The total headcount for equipment finance companies was down 1.0 percent year-over-year. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in May is 49.6, a decrease from 56.1 in April. ELFA President and CEO Ralph Petta said, “New business volume for a subset of the ELFA membership shows stable growth in April amidst a somewhat slowing economy and rising interest rate environment. Anecdotal information from a number of ELFA member organizations indicates that equipment deliveries continue to be a problem as supply chain disruptions continue. Soaring energy prices and inflation are headwinds confronting the industry as we move into the summer months.” Eric Bunnell, CLFP, President, Arvest Equipment Finance, said, “The recent results from the MLFI-25 mirror what we are seeing every day. Volume continues to be steady even with rising interest rates. The portfolio is performing well, with below-average delinquency rates, but we continue to monitor this closely. We continue to be optimistic for the rest of 2022, especially if the supply chain continues to improve.”
Two safety experts honored as ASSP Fellows
The American Society of Safety Professionals (ASSP), the world’s oldest professional safety organization, is bestowing the honor of Fellow on two longtime members who have made significant contributions to the occupational safety and health profession. Joel Haight and Pam Walaski are the 2022 recipients of the Society’s highest honor. “ASSP Fellows are influential leaders in safety and have played key roles in improving workplace environments as well as the profession itself,” said ASSP President Brad Giles, P.E., CSP, STS, FASSP, GIOSH. “The career accomplishments of Joel and Pam in helping to prevent injuries, illnesses, and fatalities are a true inspiration.” Joel Haight, Ph.D., P.E., CSP, CIH, FASSP, is a professor of industrial engineering at the University of Pittsburgh, where he conducts research on topics such as human factors engineering, biomechanics, and safety engineering. He has been an ASSP member since 1985 and served on the Society’s Board of Directors from 2018-21. Haight has published more than 70 peer-reviewed scientific journal articles, book chapters, and proceedings papers. “Joel has contributed significantly to the evidence-based body of knowledge for the safety profession, evident through peer-reviewed published works and conference presentations conducted around the world,” said Kathy Seabrook, CSP, CFIOSH, EurOSHM, FASSP, past Society president. “One of his greatest accomplishments is bridging the gap between the disciplines of business, management, engineering, and workplace safety and health.” Haight is editor of three editions of “The Safety Professionals Handbook,” a key resource for practicing safety professionals. He mentors students and helps them enter the workforce through his professional collaborations in many industries. Haight also provides consultation and training to businesses on process safety management, root-cause analysis, and human factors engineering. His work has led to thousands of people being safer on the job. Pam Walaski, CSP, FASSP, is the senior program director for Specialty Technical Consultants Inc. and an adjunct faculty member for the Indiana University of Pennsylvania (IUP) Safety Sciences Department. She will become ASSP’s senior vice president on the Board of Directors on July 1, serving as the Society’s president from 2024-25. Walaski is a published author and widely respected speaker and safety trainer who has been an ASSP member since 2003. “Pam is a national expert in risk management, and her contributions to the field are exceptional,” said Dr. Tracey Cekada, CSP, professor and chair of the IUP Safety Sciences Department. “Pam has made a positive impact on more than 200 students in the classroom who will become the safety professionals of tomorrow. Her class is demanding, but students rate her as excellent and say her real-life examples significantly help their learning.” Walaski is a driving force behind the expansion of the safety profession. She helped build a donation to the ASSP Foundation that exceeded $55,000 for recurring student scholarships through the Western Pennsylvania Chapter. Her trip to China in 2010 brought new colleagues into the Society while growing its diversity. And as an early adopter of social media, Walaski uses the platforms to broadly promote occupational safety and health careers. The new Fellows will be honored at ASSP’s Safety 2022 Professional Development Conference and Exposition, held June 27-29 in Chicago. The global event will bring together thousands of safety professionals to learn about best practices, industry trends, and the latest product innovations in the occupational safety and health field. The honor of Fellow recognizes an ASSP member’s lifetime commitment, achievement, and leadership in occupational safety and health. Nominees must have a history of major contributions to the profession for at least 15 years. To see the Society’s list of Fellows dating back more than 50 years, visit ASSP Fellow recipients.
PTDA welcomes four new members
The Power Transmission Distributors Association (PTDA), an association for the industrial power transmission/motion control (PT/MC) distribution channel, welcomed four new member companies. Guardair (Chicopee, Mass.) has a rich history dating back to 1942 as a manufacturer of best-in-class pneumatic tools and gasket cutters used for industrial cleaning and maintenance. The company features multiple distinct brands: Guardair, a U.S. manufacturer of OSHA-compliant safety air guns and pneumatic vacuums, and ALLPAX GASKET CUTTER SYSTEMS, the largest global manufacturer of gasket cutters and accessories used in the fabrication of custom flange gaskets. “Guardair Corporation is excited to develop close alliances with PTDA distributors, learn best practices within the industry and support the relationship between our company and our distribution network,” said Thomas C. Tremblay, president. Learn more at guardair.com Rubber Tree Systems (Cleveland, Ohio), founded in 2006 and developed from a Midwest-based power transmission distributor, specializes in ERP and distribution in many different segments including fluid power, hose, accessories, power transmission, industrial supply, MRO supply, paper, and furniture. “We believe associations like PTDA are the best way to strengthen relationships with our customers and industry leaders. We have a history of serving distributors and manufacturers in the power transmission industry and look forward to building relationships with PTDA members,” said Taryn Stoeger, sales & marketing manager. Learn more at rubbertreesystems.net Renegade Industrial Supply (Beaumont, Texas) services the Texas and Louisiana region. Founded in 2012, Renegade operates in the valves and fittings business/industry within the wholesale trade–durable goods sector, emphasizing gaskets, fasteners, and instrumentation equipment. It has since expanded to include bearings, power transmission products, rotating equipment repairs, and industrial hoses. “As our company continues to grow, so does our customer base. Joining PTDA is vital for a small business such as ours. It helps open doors to work with more manufacturers, which adds to the services that we offer our customers,” said Justin Huff, vice president. Learn more at renegadeindustrial.com MGS Soluções Técnicas Industriais (Americana, São Paulo, Brazil) offers the industry different options for supplying power transmission products, equipment for transporting bulk materials, industrial hand tools, automatic lubricators, motors, geared motors, and rotary seals. “We joined PTDA to learn about market trends and products to become a reference in providing industrial solutions, helping industries develop their full productive potential in Brazil,” said Serna, sales manager. Learn more at solutecindustrial.com
Inflation Strategy—Part Three
As 2022 grinds toward the midway point conditions have not really been improving. The climate continues to be driven by high demand, dwindling supply, rising prices, and an uninspired workforce. The Federal Reserve has been slow to take its medicine and tighten credit to try to halt what some would categorize as “runaway” inflation. Add to that, the disruption to the energy sector caused in great part by Russia doubling down on war, that by the day is looking more and more like a stalemate. In my last two columns (April and May), I laid out a series of strategies that could be employed in order to reshape and align dealership goals moving forward in light of a post-pandemic, but the sluggish and unbalanced economy. This month I want to turn my attention to how these factors affect our efforts in parts. Inflationary pressures, as well as shortages from suppliers, will force us all to think differently about our vendor choices, our stock order time frames, our cost calculations, and our pricing policies. Parts Vendor Decisions I’ve been in this business for 40 years and I have never seen a time when so many consumable parts were on backorder. The word “delay” doesn’t even begin to cover what we are facing. Many of you have long-standing relationships with your current parts suppliers. These suppliers can no longer deliver the parts you need, and in many cases cannot even provide you with an estimated delivery date. These are not 1-off esoteric parts. I’m talking about oil, coolant, filters, hoses, and belts. Inventory that we have counted on for years; inventory that will immediately affect our ability to service our customers. In these conditions, many are quick to abandon their current supplier and find another alternative. I understand the “any port in a storm” logic. There should however be some considerations given to qualifying a vendor before starting a new relationship. Throwing a PO at a new vendor just because they can deliver parts tomorrow morning, may not be a smart idea. It pays to ask WHY they have stock on hand when your current supplier doesn’t. What is THEIR source for these materials? What assurances do they provide that the quality of their parts will meet our customer’s needs? Does their oil have the proper API rating for the equipment you are caring for? What is the micron rating of the filters? Is their coolant the correct type for the equipment (IAT, OAT, Hybrid)? Just because it’s the right color doesn’t mean it meets the standards. Suffice it to say that quality matters. I’d rather try to explain why I have to reschedule the customer’s service than I would try to explain why my new oil is making their units overheat. As an aftermarket organization, your reputation is riding on the quality of the parts you choose, and the capability of your suppliers to stand behind their products if they fail. Price increases – current price or average price Right now, you are most likely seeing price increases affecting every stock order you place. One dealer reported to me that the last four oil deliveries all came in with different net costs. How do you manage the pricing policy when the costs are changing every 10 days? Usually, there is an ebb and flow to the way price increases are effectuated in the industrial marketplace. The regulating factors are easy to identify. In short, prices increase because costs become unmanageable. Your supplier raises their price. Your employees demand higher wages. Increases in health care, interest rates, insurance, taxes, and regulations give you no choice but to feed the inflationary monster. In the last 30 years, price increases have moderated year over year. Increases in efficiency and healthy competition at the wholesale level have provided price stability in the marketplace. Annual price increases have ranged between 2%-5% per year, and are mostly on the lower end of that scale. What we are facing now however is more than anomalous, it’s downright frightening. Labor shortages, supply chain interruptions, and geopolitical circumstances are affecting every market, not just ours. Retail prices can’t seem to find a resting place, as consumer products from fast food to used cars quickly become unaffordable. My point here is that if we are going to survive this disruption, we need to understand that as a supplier, there can actually be an UPSIDE to inflation. That upside is called INVENTORY. When wholesale prices increase, all the stock on your shelf becomes more valuable. There are dealers who manage their retail prices based on “average cost”. Prices are marked up based on the median “per unit” cost of the item. If I own 10 at a cost of $1.00 each, and this month I buy 10 more at a cost of $2.00 each, I now own 20 at an average cost of $1.50. If my markup is 1.55 (35% GP), then my retail price would be $ 2.33. This is a dangerous pricing strategy in an inflationary environment. It blunts the effect of rising prices by using existing inventory to dilute the net inventory value. If this is the way your ERP system is calculating parts pricing, you may want to rethink your practices. Our existing inventory value actually needs to be adjusted every time prices increase! To do this we need to design our markups based on LIST PRICE, or LAST COST ENTERED. Using this practice, a price increase automatically affects the net value of every item we currently own. My example above would now calculate differently. If the system uses the “last cost entered” as the basis for a markup my retail pricing on the item would go from $2.33 to $3.10. Extending price increases to your entire inventory is imperative in times like these. Your ability to pay your own rising expenses will be predicated on your willingness to leverage existing inventory to your advantage. Collect ALL your freight costs – by weight or by item Another
Price-the most perplexing issue of sales
I wish I had a dollar for every salesperson who told me the biggest objection he or she gets is “price.” Price is a complex objection that deals with subheadings like real need, affordability, hidden agendas, value, prospect perception, and communication by the salesperson. The only common denominator about price objections is that they are often buying signals in disguise. Larry Steinmetz is an acknowledged sales expert on issues of price. He has written two books and conducted seminars for twenty years on the subject. “When the customer says, ‘I can get it down the street for less,’ the salesman is being sold by the customer,” says Steinmetz. “If salespeople spent half the amount of time selling the customer as they do on selling the boss to lower the price, they’d be millionaires.” A major part of the price problem is that many salespeople believe that they (or their company) are the same or worse than their competition. Fortunately, there are two quick fixes for this situation: Change your belief or change your employer. Here are Steinmetz’s top four “Don’t” hints, techniques, and pitfalls about the price issue. Don’t volunteer or encourage price reductions. (“You don’t want to pay this”) or they preface giving the price by saying “buckle your seat belt.” This is an act called wowing at the price. Another example is “Are you sitting down?” Don’t say anything but “The price is” the only word to use in front of price is “THE.” As soon as you say best lowest list book preferred it says to the customer the price is negotiable. Don’t suggest a positive reduction to the customer. “Let me see what I can do” “let me talk this over with my boss.” Here the customer clearly expects a cut. Don’t say to the customer “we’re competitive” on anything OTHER than the price. Price provides an opportunity to serve. Don’t waste the opportunity by making excuses about it. “If the performance of the product affects the ability of the user to perform his or her task, price is the lowest priority.” says Steinmetz, “Do you go out for a price bid for brain surgery? No, you get the best quality surgeon you can find. It’s the same in your business. The more important quality is the less important price.” Six things you can do to keep price integrity… Support the price you give as the true price “Let me tell you why…” Use the fact of higher price as the reason to buy “You get the highest level of service after the sale…” Use testimonials “Here are letters from others who have paid a higher and loved it…” Sell your competitive edge, not your price “We’re the company who holds the patent…” Sell the decision-maker on the relationship “In order to serve you after the sale in the manner you expect…” Sell everything BUT price. Start with quality, value, and cost. If you’re not the lowest price, be the best value, lowest overall cost, finest product, highest productivity, fastest (legendary) service. Statistics show most price cuts come from salespeople, not customers, and most price resistance comes from salespeople, not buyers. WOW. Here are a few additional notes about the price enigma: Customer rule number ONE: Price is the first thing you forget if something goes wrong. Business rule number ONE: You must sell at your price because a profit must exist in order to service after the sale. Sales rule number ONE: Don’t give the price before you’re asked. Let the prospect ask, “How much is it?” It’s the biggest buying signal you’ll ever get. Of our top quality, best service, and two-day delivery if I cut my price, which of these services do you want me to eliminate?” Answer price questions with confidence and conviction. The way you deliver the answer to price questions is the difference between a sale and no sale. Secret indicator. Sales managers know their prices are right when salespeople are complaining the price is too high. Sell perceived value. Gasoline why do you buy premium? Perceived value! Why do you pay extra for a credit card or full-serve? Service or convenience! Is price an issue when you run out of gas? The difference between the high price, the low price, and the price at which the sale is made is the reality of the customer’s perception of value that has been created by your ability to sell. Larry Steinmetz does not believe the price is the issue. Neither do I. 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.
Warehouse Safety is on the rise through training and technology
When it comes to warehouse safety, training is a key piece in building the foundation. That line of thinking was echoed by several businesses and organizations interviewed by Material Handling Wholesaler this month, as those in the industry work to ensure safe warehouse spaces. At TrainMOR, which offers forklift training in any class of truck as well as a scissor and boom lift training program, options to train in person and online are both in use, according to Russ Niedzwiecki, the corporate safety trainer. “About four years ago, we began to produce our own online training program. We basically matched it to the live program,” said Niedzwiecki, of TrainMOR, whose parent company is Morrison Industrial Equipment. The timing of the online training development proved advantageous. “We happened to have our program just started before COVID started,” said Niedzwiecki, who said throughout the waxing and waning pandemic, the online training progressed into a natural component of the business. Niedzwiecki added that TrainMOR is now doing lots of live training again but the expectation is that the use of online training will continue. “The popularity of (online training) right now may be at the ground level, but we feel the ground is rumbling,” he said. Niedzwiecki said training can be done on a regular basis, noting TrainMOR offers a library of safety short videos to help keep information fresh as well a unique program that includes sharing a small poker chip with customers containing a QR code that can be scanned daily to access pieces from the video library. “It’s fresh training right in their hands,” he said. “Safety administrators can use it from their desk.” TrainMOR’s approach is to take on a consultant role for each customer in determining specific needs, according to Niedzwiecki. “Imagine someone being in front of a forklift. Where do you think the biggest expense is on this truck? The biggest expense is in the seat. We want to make sure that even though there are lots of advances, it still boils down to the operator being trained,” he said. Safety events Brian Feehan, president of the Industrial Truck Association, agreed. “We know that operator training is a critical component” of warehouse safety, he said. “First, it’s a requirement from OSHA. Second, we know that it works. You can never tell that message too many times.” ITA will host its annual National Forklift Safety Day on June 14, 2022, with an emphasis on the importance of the need for operator training. “In today’s environment, where you’ve got labor shortages everywhere, there may be a lot of people relatively new to the industry,” said Feehan, who said Forklift Safety Day serves as an opportunity for a national round table on forklift training that can work in conjunction with events on the local level. “We provide our members and subsequently their sub-groups information on how to conduct their own events,” said Feehan, who said although local events marking the forklift safety day mostly ground to a halt during 2020 and 2021, the hope is they will be reinstated this year. ITA’s online events for safety day over the past two years drew a large attendance, so this year both in-person and online components will be included, according to Feehan. Another focus of the event will be on the increase of automated vehicles in the warehouse and how to effectively train employees to operate them safely. “We embrace that technology, but there’s training required,” Feehan said. National Forklift Safety Day also offers an opportunity for industry members to focus on a shared objective. “It’s an excellent opportunity for the industry at large to support safety,” Feehan said. “With safety, everybody puts on the same hat.” At Raymond, the emphasis on training is also key. “Training is our number one priority,” said Dave Norton, vice president of customer solutions and support. He said online training is helping complement hands-on training, noting that more people can start with baseline training and can continue watching a truck’s progression through a warehouse. Raymond is able to train operators on real-life trucks or through simulations. Norton envisions training options continuing to evolve with the workforce, especially as the pace of hiring and retention changes. “We’re always working with customers investigating and helping how they can improve operator training,” he said, adding that he believes operator assist technology will continue to evolve. OSHA will also host its Safe + Sound week from Aug. 15 to 21. The nationwide event recognizes the successes of workplace health and safety programs and offers information and ideas on how to keep America’s workers safe, the website said. Safety products In addition to training procedures, products are also being developed to enhance warehouse safety. At Raymond, a Pick2Pallet™ LED Light system helps operators identify pallet placement correctly, with an aim of enhancing efficiency and productivity, according to Norton. Telematics in the Raymond iWAREHOUSE™ allows for monitoring operator behavior. The technology also includes a daily checklist for product operation. “It’s randomized so they can’t just click ‘yes’ all the way through. It will make them read the question and answer appropriately,” Norton said. The data also allows Raymond customers to coach and work with operators, Norton added. The company offers products like a truck system that communicates with the warehouse system to direct an operator to the next pick phase. “So, they don’t have to figure out where in the aisle the pick location is,” Norton said. “You can also incorporate that system with end-of-aisle stops.” At Wildeck, Inc. a variety of products help ensure safety, according to Cory Thomas, products manager of guarding products. Wildeck is a subsidiary of Holden Industries and is a U.S. manufacturer of industrial steel work platforms, vertical lifts, rideable material lifts, safety guarding products, industrial ladders, crossovers, and more, according to the website. “Wildeck has three different levels of protection,” said Thomas in describing the company’s guard rail gate systems, noting an LT line, an MT Medium Duty line, and an XT Heavy Duty line. The heavy-duty XT line offers a 13,000-pound impact rating at 4 miles per hour, the MT is 10,000
How to attract younger employees to offset the industry’s rapidly aging workforce
Our team talks around the proverbial watercooler often about the challenges facing American manufacturing and distribution. One topic that keeps coming up — especially amid the turbulence of the Great Resignation — is how to attract younger employees to offset the industry’s rapidly aging workforce. We’ve noticed it when we do on-site visits. We’ve listened, with empathy, as customers express their growing concern that they’re losing their institutional knowledge-keepers. One customer even told us a dire prediction that 25% of their workforce will age out over the next decade. National data reinforces the anecdotes. According to the U.S. Bureau of Labor Statistics, the industrial workforce employs 20% fewer adults ages 20 to 24 than the nation’s economy as a whole. Meanwhile, there are 20% more industrial workers from ages 55 to 64 than the nation as a whole. This flip-flopped reality means we have a lot of very experienced folks working in our nation’s warehouses and factories — a great value to our industry, to be sure. But it’s a value we’ll lose if we don’t work intentionally to learn from them (and train the next generation) before they set off on their much-deserved retirement years. How to Get Started So here’s the task at hand. Companies — likely yours included — need to attract younger workers now so they have time to learn from experienced employees. At the same time, you’ll need to translate all of that knowledge into standard operating procedures to support the ongoing transition. How do you do that? It’s something we do every day at Vsimple, where we’ve developed software to help companies become more efficient and organized. Here’s what we recommend. Start by digging into your specific workflows and procedures until you have a strong, agreed-upon understanding of the who, what, when, and where. Record all this information — the goal here is to get whatever is stored in your employees’ brains “on paper,” so to speak. (Bonus tip: We like to color code the people and platforms in the process so it’s easy to understand, at a glance, where or with whom steps live.) Technology certainly makes this mapping effort much easier. And while the Vsimple team loves whiteboards as much as the next guy, you’ll want to choose something a bit more permanent. We recommend tools like Whimsical, Visio, Lucidchart, and Miro. Now it’s time to zero in on opportunities to reduce errors, delays, or other friction points. We are often able to eliminate or consolidate a lot of steps from the original process through this exercise. Bring on the Tech Once you have your processes locked down, it’s time to evaluate technology options that can automatically manage your new, streamlined workflows. Unlike traditional project management tools like Monday or Asana which are one size fits all, Vsimple provides a platform unique to the customer’s needs. Vsimple doesn’t always replace existing systems. Sometimes it’s unifying them in a single view or indeed sometimes replacing outdated ones in particular. This way, there’s one place to work and one way to work. This extends across roles and teams to make work more efficient for everyone, whether they’ve been with your company for decades or a few weeks. We’ve helped companies like ProLift Toyota Material Handling boost efficiency, reduce order processing time, speed up the conversion from invoice to cash, and — perhaps everyone’s favorite — cut down on email traffic. A typical customer reduces email volume by more than 50 percent. And in the case of ProLift Toyota Material Handling, the company’s 450+ person workforce now enjoys complete visibility across all departments and eight locations. I think of it as watching a basketball game and seeing every play instead of just hearing the final score. You can’t make positive adjustments without seeing all the action on the court. A Generational Divide I’ll admit something to you: Company veterans are sometimes skeptical of efforts to bring new technology into processes they’ve managed for decades. You may run into the same if you use workflow management software as a tool. But today’s short-staffing motivates many to reconsider. Drowning in email, they are won over by the prospect of making work more efficient, less time-consuming, and definitely less stressful. Young workers, on the other hand, are tech-savvy — they’re looking for companies with strong tech infrastructure. They want tasks that are intellectually stimulating, not mundane busy work. Our industry needs to make that shift, and technology will enable us to do it. Becoming more efficient frees up your team — young or old — to work on the work that matters. Benefits All-Around But it isn’t just prospective workers who benefit. Your company can widen its recruiting pool with well-documented processes, supported by workflow software. You’ll no longer be restricted to hiring folks with 20 years of specialized industry knowledge because you’ll have a how-to guide for new employees to learn the ropes. Technology also opens businesses up to recruiting remote employees from anywhere in the country, exponentially widening your talent pool. It’s never easy to rethink the old ways of doing things. But if we want to ensure the future of our industry, we have to take on the task. Luckily there are tools to help you prepare your business for the next generation. About the Author: Buddy Bockweg is the founder and CEO of Louisville-based software provider Vsimple, which has developed a platform for optimizing, streamlining, and automating business workflows so employees can work faster, more accurately, and with better insights. Before founding Vsimple, he spent nearly 20 years in supply chain and distribution management working with world-renowned brands such as JP Morgan Chase and Chick-fil-A. www.vsimple.com
FANUC introduces new DR-3iB/6 STAINLESS Delta Robot at Automate 2022
FANUC America, a global provider in CNCs, robotics, and ROBOMACHINEs, will introduce the new DR-3iB/6 STAINLESS delta robot for primary food handling at Automate 2022, June 6-9 in Detroit, in booth #3323. FANUC will also demonstrate its latest products including the new CRX cobot series and CR-35iB collaborative robot, the new M-1000iA heavy-payload robot, the new LR-10iA/10 material handling robot for machine tending and warehousing applications, and much more. NEW FANUC DR-3iB/6 STAINLESS Delta Robot The new DR-3iB/6 STAINLESS is FANUC’s first stainless steel food-grade delta robot for picking and packing primary food products. Rated IP69K, the robot meets USDA and FDA food safety standards, and sets a new benchmark for robotic food handling in terms of payload, speed, reach, and sanitation. The DR-3iB/6 STAINLESS features a fully enclosed stainless steel body that is resistant to the chemicals and high pressure/temperatures required in strict wash-down environments. The robot’s mirror-like surface finish ensures that any microbial contaminants can be washed away cleanly. With additional features such as NSF H1 food-grade lubricant, secondary oil catch basins (with viewing windows to monitor potential leaks), self-draining surfaces, and many other small details driven by USDA/FDA standards, the DR-3iB/6 STAINLESS is ideally suited for primary food handling applications. “The new DR-3iB/6 STAINLESS robot combines FANUC’s industry-leading performance and reliability with a food-safe stainless steel construction,” said Jessica Juhasz, staff engineer, FANUC America. “We’re happy to offer a food processing robot that will help companies maximize production efficiencies without compromising food safety.” The DR-3iB/6 STAINLESS has a 1200mm reach (400mm height) and a powerful four-axis design allowing it to handle 6kg payloads at high speeds. The new robot operates with FANUC’s latest R-30iB Plus controller with integrated intelligent functions such as iRVision®, Force Sensing, Robot Link, Collision Guard, and Zero Down Time (ZDT). At the show, the new DR-3iB/6 STAINLESS delta robot using a Soft Robotics gripper will pick bakery, dairy, and meat products from the middle section of the demonstration’s work area and place them in specified zones. COBOT ZONE: CRX and CR Cobot Demonstrations FANUC recently expanded its popular series of CRX collaborative robots with the new CRX-5iA, CRX20iA/L, and CRX-25iA. The new CRX cobots complement FANUC’s existing line of CR and CRX cobots that now total 11 model variations able to handle products from 4 to 35kg. Designed for companies looking to increase their capabilities and overcome labor issues, FANUC’s CRX cobots are extremely robust and can run for up to eight years without maintenance. FANUC will demonstrate a wide range of CRX cobots to address a variety of industrial applications. The new CRX-5iA cobot, featuring a 5kg payload and 994mm reach will make its first appearance in North America at Automate. The CRX-5iA will pick and assemble small gears using integrated force control. First, the CRX-5iA with integrated force control will pick different height gears (short and tall) from a stack. Using the “touch skip” feature, the cobot will determine the height of each gear. Next, the CRX-5iA will assemble the selected gear using integrated force control’s “Phase search” function. A CRX-10iA welding cobot will allow attendees to teach weld joints using hand guidance or a tablet interface with drag and drop icons. The CRX welding cobot supports FANUC’s advanced features including iRVision, Torch Angle Control, Touch Sensing, and Thru Arc Seam Tracking (TAST). The CRX will use Lincoln Electric’s Power Wave® R450 robotic power source and the new Lincoln Electric Smart Torch. Built for the industrial space, the CRX-10iA welding cobot is compatible with Lincoln Electric’s weld programs to help customers maximize productivity. A new CRX-25iA robot, offering a 25kg payload and 1,889mm reach will demonstrate case palletizing. Guided by a 3DV/200 vision sensor mounted to the arm, the CRX-25iA will palletize boxes to nearly 7’ high. A CRX-20iA/L with FANUC QSSR (Quick & Simple Start-up of Robotization) will demonstrate the easy connection of a FANUC CRX cobot and a machine tool. QSSR simplifies the automation of machine tool load/unload applications using the CNC controller’s easy guidance functionality for quick connectivity, start-up, and operation. NEW FANUC CR-35iB – Bicycle Assembly FANUC’s new CR-35iB collaborative robot with a 35kg payload can work in a variety of applications that typically require lift assist devices or custom equipment. In addition to being the industry’s strongest cobot, the CR-35iB has a large work envelope, and small installation footprint, making it ideal for tight spaces. A more streamlined and lighter mechanical unit includes FANUC’s latest sensor technology for safety. At Automate, the CR-35iB will help an operator assemble a bicycle. The operator will program various assembly positions with the easy-to-use tablet TP featuring a “drag and drop” user interface. The demonstration underscores the cobot’s ability to make the assembly process quicker while eliminating ergonomic stress. NEW FANUC M-1000iA Robot – Battery Assembly The new M-1000iA robot is capable of handling very heavy products including automotive components, construction materials, and battery packs for electric vehicles. At Automate, the M1000iA equipped with iRVision will highlight the EV battery assembly process. The M-1000iA’s serial-link construction allows a wider range of motion in every direction. It can extend its arm upright or rotate it backward, which is not possible for typical heavy-payload robots with a parallel-link mechanism. With a 1000 kg payload, a 3,253mm horizontal reach, and a 4,297mm vertical reach the M-1000iA is a good choice to help manufacturers increase output and maximize efficiency. NEW FANUC LR-10iA/10 Robot: Vision-Guided Piece Picking FANUC’s new LR-10iA/10 robot is designed for machine tending and many picking applications found in the warehousing and logistics markets. Weighing just 46 kg, the LR-10iA/10 robot mounts to the floor, upside down, or at an angle. It’s also very easy to mount the robot to an AGV or other mobile platform. The LR-10iA/10 has a 10 kg payload and a large work envelope with a long reach of 1,101 mm. Its compact size accommodates tight floor spaces, and a slim arm fits easily into machine tools for part load/unload. In addition, an enclosed structure makes it
Six things every CEO needs to know about branding to better manage the human side of business
We live in an upside world where the old rules no longer apply. Many call it a VUCA world – volatile, uncertain, complex, and ambiguous. Mass consumerism has been replaced by a new consumption paradigm as people are driven by new essentialism where things matter less and relationships, experiences and self-being dominate all. In this new world, workers are restless, customers fickle, investors skittish, and the public has an appetite to cancel. In order to rally everyone together to stand behind a company and its path during all the ups and downs, leaders need to draw upon emotions as rationality will not carry the day. They have one tool at their disposal to do this delicate work – the brand. Although often associated with marketing, brands are actually cultural icons that symbolically carry meaning. In just a nanosecond, they evoke common immediate meaning and emotions across all people. Think BMW, John Deere, Chanel, Apple, and American Express. In a world where everything is uncertain, brands can be trusted to stand true. Now, if you don’t have a brand, you can build one. Anyone can. It takes commitment to people, to tell their story and represent their interests with your brand, not your own. If you create a brand that represents the highest common denominator between your people (customers, employees, investors) and your products/services, then you can forge an enduring powerful partnership that will yield surprising dividends for your business. It all begins with understanding the basics of what a brand really means for a business. A Brand Resides in the Mind, not in a Logo: Although expressed in a logo and a tagline, a brand is actually a mental construct that gets into the mind and lives in the memory of people. Branding is the process of creating a brand in the minds of people. It is typically done by creating things and experiences that “express” the brand such as marketing materials and product design. Brands also live in the culture. Powerful brands like Nike become social concepts and exist in the culture where they continually give people cues and establish the brand as a part of society. Brands Set Meaning: Brands give meaning to products. Is an anti-lock braking system (ABS) a breakthrough in performance (BMW) or safety (Volvo)? That depends on the brand. The brand is a mental lens that provides immediate meaning. A Snickers bar is a snack. Tiffany means luxury taste and quality. Apple is about unleashing creativity while IBM is about improving productivity. The brand provides context which tells people why a product is important to them. Brands Carry Emotional Power: Like great art, brands are designed to elicit a response, both emotional and rational. Like art, they can enchant and often captivate people which creates desire. Marlboro was the first filter-tipped cigarette and was initially launched as a woman’s cigarette which failed. The same product was re-branded as the ultimate masculine smoke and with the swagger of the Marlboro man still remains one of the most powerful brands in the world. Powerful brands are mythologies that evoke emotions that swell to desire. Brands are Fiction Not Fact: Branding is poetry, not journalism. Messaging matrixes and value propositions belong to marketers and are fact-based. Branding is another world that is concept-based. Branding brings out the big gun – an idea. A powerful, transcendent, mind-tweaking idea designed to engage the mind and heart at another level. The idea is what catalyzes new behavior and thinking. When Tide gets clothes clean, it means that Mom and Dad are good parents and conveys that message. The Home Depot is a large hardware store, but the brand makes it a Home Center for any current and aspiring do-it-yourselfer. Brands Defy Logic: When you have a powerful brand, you’ll be surprised by what it can do. You will see strong conviction and commitment across employees, customers, and investors despite challenges. People tend to defend the brands they love and stay loyal against all odds – better alternatives, cheaper alternatives, easier alternatives. To achieve that kind of priceless cohesion, you have to build and continually maintain the brand campfire – and make it into a bonfire for the whole world to see. At John Deere, they say people bleed green because the brand is so deep. Brands Deliver Business Value Multiple Ways: Because powerful brands are sticky, they have the ability to build a moat around the business. Customers remain loyal even in the face of superior performing or lower-priced competitors. People forgive and forget product and corporate errors which mitigates losses. People are more willing to try new products, services, and experiences from brands they love which accelerates sales. If you have the vision to build an empire, but a brand to amplify the upside and mitigate the downside. Many corporate executives view the brand as simply a marketing asset. Others like Steve Jobs, Bill Gates, Richard Branson, and Elon Musk view it as a corporate asset, part of the business strategy. Once built, a powerful brand can be used to wield influence in many circumstances from Main Street to Wall Street to Capitol Hill. While products and executives may come and go within a company, the brand can endure forever – as long as it is well maintained. In a world of fake news where people are becoming increasingly unmoored and where constant shocks and disruptions seem to prevent ‘normal’ from ever being a reality, brands are a reassuring presence that people can depend on. Powerful brands nurture, the people that come to work, buy products, and invest in companies. Business always comes down to connecting with people on a human level. Powerful brands are creative concepts that stimulate imagination and emotions in ways that most CEOs cannot. With a powerful brand, the CEO has a tool to open minds, raise hearts, command attention, bring everyone together and protect the business again in a volatile, uncertain, complex, and ambiguous world. About the Author: Jane Cavalier, CEO and Founder
U.S. Great Lakes shipping reports mixed results; signs for optimism
U.S. Great Lakes ports reported mixed results for the start of the spring shipping season, with gains and losses heavily tied to global trading conditions and Lake Superior ice-breaking resources. U.S. grain exports, steel imports, road salt, and containerized goods were strong performers. “Inadequate ice-breaking resources in Lake Superior had a major impact on cargo shipments out of the port of Duluth-Superior, which underlines how much we need new and improved capacity for the U.S. Coast Guard icebreaking fleet,” says Bruce Burrows, president and CEO of the Chamber of Marine Commerce. “On a more positive note, grain exports from U.S. ports were in strong demand along with shipments of salt, steel, and containers. We expect that the demand for different cargo segments will continue to be impacted by fluctuating prices and trade flows related to global supply chain issues and the Russia/Ukraine conflict.” Overall cargo shipments (from March 22 to April 30) via the St. Lawrence Seaway totaled 3.5 million metric tons, down by 18 percent compared to the same period in 2021. Iron ore volumes were down 23 percent. Year-to-date U.S. grain shipments via the Seaway totaled 176,000 metric tons, up 175 percent compared to 2021. Road salt shipments were also up 21 percent, as Canadian mines delivered to cities throughout the bi-national region. The Port of Toledo was off to a good start in 2022. Through April, 78 vessels have already called upon the Port and tonnage is up nearly 11 percent over the same period in 2021. Grain, salt, coal, and liquid bulk are all outpacing 2021 totals. “While it is early in the season, there are signs that 2022 will be successful,” said Joseph Cappel, VP of Business Development for the Toledo-Lucas County Port Authority. “Grain and fertilizer are expected to be big movers in 2022 as trade patterns and pricing continues to fluctuate based on various global happenings. If our staple commodities like coal, iron ore, and other dry bulk commodities remain consistent, we will have a strong year.” The Port of Cleveland has experienced a very strong start to the 2022 season in its general cargo operation. April tonnage more than doubled its total tonnage from April 2021. “Our container numbers have also increased dramatically due to the addition of Doornekamp’s Peyton Lynn C to the Spliethoff service last September,” said David Gutheil, Chief Commercial Officer at the Port of Cleveland. “Export customers are now jumping on board due to shortages of containers and vessel space at coastal ports. We are very close to completing the first phase of a very large infrastructure project which will improve the efficiency of the movement of general cargo throughout the Port. This project will be completed in its entirety late first quarter of 2023.” Hampered by Great Lakes icebreaking challenges and a slower-than-normal start for the American lake freighter fleet, total tonnage through the Port of Duluth-Superior reached only 2.43 million short tons in April 2022. Combined with an icy March in which only three ships called on the port, overall tonnage through April 30 trailed last year’s pace and the five-season average by 38 percent and 27 percent, respectively. Iron ore, the port’s top cargo by tonnage, neared 1.6 million short tons through April. This represented a 42 percent dip from the 2021 pace and a 34 percent drop compared to the five-season average. Each of the port’s major cargo categories finished April behind the 2021 pace with the exception of grain and salt. Outbound grain shipments comprised of wheat and beet pulp pellets totaled 148,620 short tons through April, nearly doubling the 2021 pace and exceeding the five-season average by 24 percent. Almost two-thirds of the Duluth-Superior grain float sailed through the Great Lakes-St. Lawrence Seaway System as export commerce. Inbound salt deliveries to Duluth-Superior topped 81,000 short tons in April, more than doubling the April 2021 total and the five-season average. “Winter lingered a bit too long this year, which made March and most of April a tough slog for Coast Guard icebreakers and the freighters that depend on them for support to power through those conditions,” said Deb DeLuca, executive director of the Duluth Seaway Port Authority. “We started to see an uptick in vessel traffic later in the month, as the ice situation improved, but it’s still hard to predict the tenor of 2022. Unusual factors continue to affect the world of cargo transportation, including ongoing global supply chain delays and the situation in Ukraine. That instability keeps everyone guessing, but there’s still reason for optimism that it’ll be a good season in the Port of Duluth-Superior.”
Friendly reminder for Memorial Day: One veteran’s opinion for Memorial Day
On Memorial Day, 1945, the war in Europe had ended but the fighting in the Pacific continued, Lt. Gen. Lucian Truscott voiced remarks at the Sicily-Rome American Cemetery at Nettuno, Italy. Turning his back on the assembled VIP’s he faced the rows upon rows of headstones and apologized to the 20,000 fallen Americans who had been laid to rest far from home. He was quoted as saying, “All over the world our soldiers sleep beneath the crosses. It is a challenge to us – all allied nations – to ensure that they do not and have not died in vain.” Fast forward to Memorial Day 2022, and the familiar voices of brothers in arms begin to call one another on the phone. People usually think of reconnecting with former military buddies as a joyous happening. However, for this Memorial Day, the topic of conversation was not an armistice, a promotion, or even a daughter’s wedding or new addition to a home, it was about the latest in a string of suicides that silence the voice of our brothers but brought renewed connections from other familiar voices. One desperately said, “Sir, I needed to call someone who could understand this.” Everyone in the greatest generation understood war. At home they experienced rationing, schoolchildren collected scrap, and women took up factory jobs while overseas the troops endured combat and were witness to some of the largest and most brutal atrocities in the modern age. When the war was over, they followed the lead of Lt. Gen Truscott and committed their lives to ensure that they “have not died in vain.” The shared sacrifice of a generation united them and helped them solve tough problems. In subsequent wars, such as the Korean and Vietnam era, Veterans did not experience the same level of understanding and thus either turned their voice inward or used their voice to fight for one another on subjects that varied from Agent Orange, PTSD, and other once-silent conditions. The War on Terror introduced a unique time in our nation’s collective history as acts of war played out in real-time on our media devices. Although only one percent of Americans served post 9/11, it seems 100 percent of the country used their voice to express their opinions of this shared history as it unfolded. For Korean and Vietnam Veterans, war was not a shared experience and therefore various voices having various opinions helped further the national conversation regarding the treatment of veterans leading to safer and more thoughtful approaches. Unlike the veterans of Korea and Vietnam, the veterans of the last several decades did not return home to the voices of dissent that could be addressed directly, instead, they returned to a polite nation that creates media of dissent and very little opportunity for honest, open dialog. This new era of media, learning, and personal discussions bring rise to the question, “Do people really remember why we hold our veterans in a place of honor?” For years, voices saying meaningless phrases like “the enemy gets a vote” or “there’s nothing you could have done” were meant to comfort those of us who have held the heavy responsibility of leading troops in combat. However, many people seem to lack the understanding that our hearts have been forever scarred by the invisible wounds of war, scarred by guilt and grief, and by the longing for forgiveness that will never come. Even if forgiveness was offered, it would be hard to accept as no mere words can undo a life experience and because of this, we often feel isolated, misunderstood, and undervalued therefore our voices remain silent. As conversations with the voice on the other end of the phone come to their inevitable conclusion, I am reminded that to remain silent is a betrayal of my obligation to those who made the ultimate sacrifice. As Horace Bushnell once said, the best thing for us to do is to remember “what they have put it on us to do for the dear common country to which they sold their life.” As we gather as one nation this Memorial Day, my hope is that instead of directing shallow words of gratitude at each other, we do as Lt. Gen. Truscott did and direct our gratitude directly towards those who made the ultimate sacrifice. In both our words and actions, let us all commit ourselves to serving the country to which they gave their lives. While there is still much work to be done, the generation of Veterans from this century has access to vast resources, life-saving technology, and increased information. This same generation of Veterans is just now starting to define our post-service legacy and like our grandparents, return home with a deep commitment to service, and a desire to address the many problems that we face. One such issue needing to be addressed is helping Veterans find purpose in their post-service lives. Truscott’s apology to the dead are not empty words, but a strong voice reminding us that we have an obligation to choose resilience and purpose when faced with guilt or grief. As an example, Gold Star Families, who have experienced tremendous loss, continue to serve their communities to maintain the legacy of the loved one they lost. I often recall a colleague of mine responding to the question “why do you do so much to help Veterans?” he simply held up his finger, choking back tears he responded, “for the one, I couldn’t save.” By choosing to use his voice to advocate for other veterans, he not only helped them find their purpose – he found his own. It’s often said that for those who have served “every day is Memorial Day,” a traditionally silent observance in the Veteran’s mind that can best be described as an impossible trinity made up of an overwhelming sense of guilt, grief, and grit. Usually, a moment of silence on this day is a welcomed and solemn way to honor the voices from our past, but for myself, after losing three former
Invest in employees this Supply Chain Professionals Appreciation Day
Supply chain professionals are facing many challenges right now—labor shortages, rising energy costs, and increased demand, just to name a few. Supply Chain Professionals Appreciation Day is an ideal time to remind warehouses and distribution centers that choosing more efficient, reliable equipment can have a big impact on their employees’ morale and productivity over time. “We want to thank the people who are working hard to keep our supply chains moving,” said Joseph Calhoun, director of off-road business development for the Propane Education & Research Council (PERC). “No doubt, it’s a tough time for them, and simply switching to propane-powered equipment is one way to help. For example, propane-powered forklifts offer versatility and consistent power, giving supply chain professionals many advantages that can make their jobs easier while increasing productivity.” Propane-powered forklifts offer 100 percent, reliable, consistent power during operation. One propane cylinder can last an entire eight-hour shift which reduces downtime and allows forklift operators to use their working time more efficiently. According to PERC, propane forklifts can push heavy loads at full capacity longer and at more consistent travel speeds compared with other types of forklifts. A PERC survey revealed that most forklift users operate their equipment both indoors and outdoors. Diesel forklifts can’t be safely used indoors due to their higher emissions profile, but propane forklifts run cleaner with lower emissions, making it possible to run them both inside and outside. And because propane can be used indoors and outdoors, it further simplifies the job for the worker by being able to seamlessly transition between spaces without needing to swap equipment. Other options, like electric forklifts, often can’t bring the power needed for larger jobs. Propane-fueled forklifts maximize productivity, especially for multi-shift operations, because they require less time to refuel than the time needed to recharge electric forklift batteries. Plus, propane-fueled forklifts can typically operate for a full eight-hour shift on one tank fill, whereas electric forklift operators may need to switch out the battery during a shift. Additionally, the purchase price of an electric forklift is 30 percent higher than that of a propane-powered one. Electric forklifts often require the costly installation of battery charging stations, which must be in a designated area of the facility. It’s important to note that charging stations may cause issues in some facilities and require costly service upgrades to accommodate the new power requirements. With propane forklifts, however, infrastructure requirements are minimal and facility managers can easily work with their propane supplier on the best location for their cylinder cage. “Propane makes the job of a supply chain professional easier,” Calhoun said. “Companies that invest in propane-powered forklifts are also investing in their employees, and that’s something that shows how much you value your crew not just on Supply Chain Professionals Appreciation Day, but all year long.”
Wreaths Across America and Young Marines enter partnership
Nonprofits agree to work together to help support common missions of teaching the next generation the values of leadership, citizenship, and freedom Yesterday, national nonprofits Wreaths Across America (WAA) and the Young Marines are proud to announce the signing of a Memorandum of Understanding (MOU) between the two organizations. The signing is to build a stronger awareness of each group’s common missions while supporting educational events throughout the nation. These events will help teach lessons of character and patriotism to the next generation. WAA’s Director of Military and Veteran Outreach, Joseph Reagan, and Young Marines National Executive Director Col. William Davis signed the MOU live as part of the Young Marines Adult Leadership Conference held in St. Charles, Missouri. To watch the video of yesterday’s signing, please click here or visit https://vimeo.com/709265876/c5414c677a . The MOU between the two groups outlines key agreements that establish a framework for cooperation between WAA and the Young Marines. This includes collaborative volunteer efforts to provide opportunities for joint community service activities that bring awareness to both groups’ missions throughout the country, and regular feature interviews on Wreaths Across America Radio. The interviews will highlight youth participants’ academic achievement, community service, good citizenship, and other attributes. “As a program whose core mission focuses on teaching the next generation the value of freedom, supporting and working with leadership groups like the Young Marines is critical to the future of this country,” said Karen Worcester, executive director, WAA. “These kids are learning not only what it means to be a productive member of society, but they are also learning that anyone can find a way to serve their community, and what it truly means to be an American.” “The Memorandum of Understanding solidifies the two organizations’ commitments to citizenship, leadership, and memorializing our nation’s veterans,” said Col William P. Davis USMC (Ret), national executive director and CEO of the Young Marines. “We were especially proud to host the signing at the Young Marines’ Adult Leadership Conference at which hundreds of volunteers were witnesses. The Young Marines and WAA are true partners who have analogous values.” Founded in 2007, and headquartered in Columbia Falls, Maine, WAA is best known for its annual wreath-laying ceremony at Arlington National Cemetery, and now at more than 3,100 participating locations nationwide. The organization’s yearlong efforts support its mission to Remember our fallen U.S. veterans, Honor those who served, and Teach the next generation the value of freedom. Young Marines has more than 238 units including thousands of youth members, most of whom have been placing veterans’ wreaths throughout the country for many years. The MOU will only heighten awareness of this task of respect and honor. The Young Marines is a youth education and service program for boys and girls, aged eight through high school graduation. The Young Marines promotes the mental, moral, and physical development of its members and focuses on teaching the values of leadership, teamwork, and self-discipline, so its members can live and promote a healthy, drug-free lifestyle.