Hope – Jobs – Change
What are the major roadblocks to changing the ways the United States develops its workforce? We recently sought some answers from other workforce development leaders who also seek major improvements in our education-to-employment systems. There is general agreement that there are new education and training programs that improve adult and student learning, but there are significant obstacles to effectively and comprehensively implementing them. Over the past 30 years, regional public-private partnership hubs have been formed that integrate the wide variety of community resources needed to address skills-jobs disconnects and today’s vacant jobs crisis. But these pathways to a better-educated workforce have only been supported by a comparative handful of enlightened community and business leaders. Why haven’t they been widely adopted throughout the United States? Storrs Hall in his book, Where Is My Flying Car, gives several cogent explanations of why people, in general, are very resistant to systemic change. When their money, power, or prestige are at risk, systemic change issues are often turned into personal turf wars. Hall calls this the “Machiavelli Effect.” As Machiavelli stated in his controversial 1532 treatise, The Prince, innovators are often opposed by “all those who have done well under the old conditions.” Hall asserts that bureaucracies today pose major obstacles to implementing systemic change. There are well-entrenched bureaucracies in business, education, unions, and government. He finds that bureaucrats often block changes because of a “failure of imagination.” They believe in their superior expertise. They automatically rule out the potential of untried but worthwhile solutions. Hall also contends that bureaucracies stifle change due to a “failure of nerve.” Solutions to current challenges gain significant support. Only the details of implementing them need to be worked out. But nothing ever happens! Bureaucrats succumb to the fear that the results of their process will be so good that their leadership will be threatened. Bureaucracies are powerful because they are able to use resource starvation and regulations to suppress systemic change. Furthermore, America today is split into warring factions that resist working together to combat threats to our prosperity and way of life. In its history, the United States has faced formidable challenges and forged innovative solutions that moved the nation forward. What can we learn from the past? After traveling across the United States in 1831, Alexis de Tocqueville wrote Democracy in America in which he concluded that civic activism was America’s greatest strength. As the United States expanded in territory and population during the 19th and early 20th centuries, ordinary citizens banded together to form local governments and organizations to solve common problems and meet local needs. Tax-supported public education is among the most prominent advancements resulting from civic activism. By 1918 spurred by the Progressive movement, all the then states in the United States had enacted this reform. The United States became the first nation in history to attempt to offer basic education to everyone. The system was far from perfect, but for most of the 20th century, it worked well for most citizens. But the technological demands of the Fourth Industrial Revolution have made this education-to-employment system obsolete. Why do we need a revival of civic activism today? There are at least 1.8 job openings for every unemployed worker. U.S. inflation has reached a 40-year high of 8.5 percent. Companies across all business sectors cannot find workers with the requisite skills to fill up to 13 million vacant jobs, thus threatening significant wage inflation. Unless significant efforts are begun to bridge the talent gap between current educational preparation and the rising skill needs of local/regional businesses, we believe that by 2030 the U.S. labor market will be in an even deeper crisis, perhaps triggering a popular backlash that could destabilize our nation. We contend that America’s participatory democracy offers viable solutions to this grave employment crisis. During the Progressive Era, a broad spectrum of voluntary organizations was formed. Many of them focused on civic improvements, such as Chambers of Commerce and Rotary Clubs. Today they and other groups and agencies such as Workforce Development Boards, regional economic development organizations, sectoral business alliances, community colleges, K-12 educational agencies, parent organizations, and unions are serving as catalysts for initiating broader public-private partnerships to update regional education-to-employment systems. Your advocacy and support for such efforts in your communities are vitally important for their success. For a more comprehensive analysis of the causes and solutions for the current skills-jobs mismatch, see Job Shock: Moving Beyond the COVID-19 Employment Meltdown to a New Skilled Talent Decade About the Author: Edward E. Gordon is the president and founder of Imperial Consulting Corporation.
PTDA Foundation now accepting nominations for 2022 Leadership Awards
Wendy B. McDonald Woman of the Year Award and Robert K. Callahan Future Leaders Award Nominations Open Through June 10 The PTDA Foundation is seeking nominations for its Wendy B. McDonald Woman of the Year Award and Robert (Bob) K. Callahan Future Leaders Award, respectively. As the charitable arm of the Power Transmission Distributors Association, the PTDA Foundation champions education, outreach, and research initiatives relevant to the power transmission/motion control (PT/MC) industry that enhance the knowledge and/or professionalism and productivity for industry stakeholders. The Wendy B. McDonald Woman of the Year Award recognizes a woman who, at any stage of her career, is bringing about change as an integral contributor to the success of her company and the PT/MC industry. The PTDA Foundation established the award in 2014 to honor the memory of Wendy B. McDonald, one of the PT/MC industry’s true pioneers known for her legendary charm, philanthropy, and commitment to giving back to the industry and the communities that led to her success. Barbara Ross, Garlock Sealing Technologies, was named the 2021 recipient of the award. The Wendy B. McDonald Woman of the Year Award is presented annually when merited. Nominations will be accepted through June 10, 2022, and judged by the following criteria: The nominee must be a female. The nominee must exemplify leadership and integrity in all business relationships. There are no criteria with respect to title, position in the company, or years of experience. The nominee may work anywhere in the world. Employment by a firm headquartered in Canada is a plus. The nominee need not be employed full-time by a PTDA member company or be employed within the calendar year for which the nomination is made. Employment with a PTDA distributor member is a plus. The Robert (Bob) K. Callahan Future Leaders Award recognizes young and ambitious individuals who demonstrate a passion and drive to grow within the PT/MC industry. The late Bob Callahan made a lifelong commitment to the support and advancement of next-generation trailblazers in the PT/MC industry. The award was established in his honor. In October 2021 Chris Gumas, Ruland Manufacturing Co., was the inaugural recipient of the award. Nominations are due by June 10, 2022. There are no criteria with respect to title or position within a company; however, nominees must meet the following requirements: Working in the industry for at least five years. Employed by a PTDA member organization at the time of nomination and at presentation. Exemplifies leadership and integrity in all business relationships. Nomination forms can be found at ptda.org/WBMcDonaldAward. and ptda.org/CallahanAward, respectively. Both awards will be presented at the PTDA Industry Summit in Nashville, Tenn. in October.
California community grants program honored with Sustainability Award
Southern California Association of Governments recognizes Port’s quest for equity The Port of Long Beach Community Grants Program has been bestowed with a prestigious Sustainability Award by the Southern California Association of Governments, in recognition of the $65 million-plus initiative’s efforts to mitigate the effects of goods movement on local neighborhoods. SCAG gave the prize to the Port this month in the annual award’s Equity category, which honors projects advancing equity and facilitating the growth of healthy, livable, sustainable, and economically resilient communities that are traditionally marginalized, vulnerable, and/or underrepresented. “One of the ways we stand out from competing ports is a commitment to reducing the impacts of port operations in innovative ways,” said Long Beach Harbor Commission President Steven Neal. “An important tool for this is the Community Grants Program, which for more than 10 years has funded community-based projects to reduce the harmful effects of port operations, with air filters for classrooms, mobile health screenings, and asthma education programs for residents and tree plantings. We’re grateful for this recognition.” “This program is a part of a holistic approach to sustainability that has resulted in the most dramatic and substantial environmental progress ever seen in the goods movement industry,” said Port of Long Beach Executive Director Mario Cordero. “I’d like to thank SCAG for the award, and our dedicated staff who run this program, eliminating overhead and ensuring all of the funding goes to the community.” Projects receiving funding from the Community Grants Program must be located in the designated eligibility zone. The zone is identified as the area most impacted by port operations, and starts in downtown Long Beach and extends north along Interstate 710. It includes parts of Wilmington, Carson, Compton, and Paramount. The Community Grants Program was created to help those in the community who are most vulnerable to port-related impacts. Combined with a previous program started in 2009, it is the largest voluntary port mitigation initiative in the country. To date, $31.5 million has been committed. Learn more at www.polb.com/grants.
Seeq launches Conneqt Global Industry Events
Seeq Corporation, a provider of manufacturing and industrial internet of things advanced analytics software, launched Conneqt, the company’s expanded global industry conference designed for manufacturing leaders to explore the latest innovations in advanced industrial analytics. From May 2-4, 2022, in Austin, Texas, Conneqt brought together a community of Seeq customers, partners, and experts in a fully immersive experience that provided access to transformative business trends, use cases, and proactive conversations through a series of interactive sessions. Customer presentations, from organizations including Chevron, Koch Ag & Energy Services, Eli Lilly & Company, Bristol Myers Squibb, Guardian Glass, and others, featured Seeq use cases and best practices for addressing the complex business issues facing the process industries today. Hands-on training sessions, fireside chats with customers, and forward-thinking cloud partner discussions with Amazon Web Services and Microsoft Azure delivered first-hand insights on conquering data and process control challenges across a variety of industries. Dr. Lisa Graham, Seeq CEO, kicked off the event, highlighting the company’s journey from inception to the present day as well as its vision for the future of the product portfolio, which includes continued investments in extensibility, machine learning, and the cloud. “The goal of Conneqt is to provide an environment for our customers, partners, and other industry leaders to exchange ideas, data-driven insights, and manufacturing expertise that will drive sustainable and scalable business results for their organizations,” says Dr. Lisa Graham, CEO at Seeq. During the customer keynote presentation, “Accelerating Business Impact Through Cultural Innovation,” Brent Railey, Manager of Data Science at Chevron Phillips, shared how Seeq fits into the organization’s overall digital transformation strategy and how influencing organizational culture enabled his team to successfully drive adoption of the advanced analytics solution across multiple sites. “The successful adoption of any digital solution requires analysis of its relationship with the organization’s culture,” says Brent Railey, Manager of Data Science at Chevron Phillips. “By understanding the significant opportunities for improvement that Seeq could uncover and potential change management challenges before deployment, we could proactively address them to accelerate the positive production outcomes we achieved.” Limited sessions were recorded at Conneqt and will be offered on-demand on the Seeq website. Seeq customers include companies in the oil and gas, pharmaceutical, chemical, energy, mining, food and beverage, and other process industries. The company has raised over $100M to date from investors including Insight Ventures, Saudi Aramco Energy Ventures, Altira Group, Chevron Technology Ventures, and Cisco Investments. Seeq is available worldwide in the Amazon Web Services Marketplace, the Microsoft Azure Marketplace, through a global partner network of system integrators, which provides training and resale support for Seeq in over 40 countries, and its direct sales organization in North America and Europe. In addition to cloud and channel partnerships, Seeq connects to an extensive set of data storage platforms from vendors including OSIsoft, Siemens, GE, Honeywell, Inductive Automation, AVEVA, AspenTech, Yokogawa, InfluxDB, Snowflake, and others.
Plant Facilities reach 148 new Industrial Manufacturing Projects in April 2022
Industrial SalesLeads, IMI just announced the April 2022 results for the newly planned capital project spending report for the Industrial Manufacturing industry. IMI tracks North American planned industrial capital project activity; including facility expansions, new plant construction, and significant equipment modernization projects. Research confirms 148 new projects in the Industrial Manufacturing sector. The following are selected highlights on new Industrial Manufacturing industry construction news. Industrial Manufacturing – By Project Type Manufacturing/Production Facilities – 130 New Projects Distribution and Industrial Warehouse – 56 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 55 New Projects Expansion – 51 New Projects Renovations/Equipment Upgrades – 46 New Projects Plant Closings – 11 New Projects Largest Planned Project During the month of April, our research team identified 17 new Industrial Manufacturing facility construction projects with an estimated value of $100 million or more. The largest project is owned by VinFast Auto US, which is planning to invest $4 billion in the construction of a manufacturing and distribution facility in MONCURE, NC. They are currently seeking approval for the project. Completion is slated for 2024. Industrial Manufacturing – By Project Location (Top 10 States) New York – 13 California – 11 Michigan – 11 Ontario – 9 Indiana – 8 Ohio – 8 South Carolina – 8 Texas – 8 Minnesota – 5 North Carolina – 5 Top 10 Tracked Industrial Manufacturing Projects KENTUCKY: EV battery mfr. is planning to invest $2 billion in the construction of a 3 million SF manufacturing facility in BOWLING GREEN, KY. They are currently seeking approval for the project. KANSAS: A biotechnology company is planning to invest $650 million in the construction of a 500,000 SF processing facility in MANHATTAN, KS. They are currently seeking approval for the project. CALIFORNIA: A steel fabricator is planning to invest $350 million in the construction of a manufacturing facility in MOJAVE, CA. Construction is expected to start in early 2023, with completion slated for early 2025. ALABAMA: Automotive mfr. is planning to invest $300 million for expansion and equipment upgrades at their warehouse and manufacturing facility in MONTGOMERY, AL. TEXAS: Custom corrugated paper products mfr. is planning to invest $200 million for the renovation and equipment upgrades on a recently leased 1 million SF distribution and manufacturing facility on S. US-67 in CEDAR HILL, TX. NORTH CAROLINA: Building materials mfr. is planning to invest $118 million for the expansion of its manufacturing facility in OXFORD, NC by 225,000 SF. They have recently received approval for the project. MISSOURI: Automotive mfr. is planning to invest $109 million for the renovation and equipment upgrades on their manufacturing facility in TROY, MO. They are currently seeking approval for the project. ARKANSAS: Flexible packaging products mfr. is expanding and planning to invest $80 million in the construction of a manufacturing and distribution facility in SEARCY, AR. They have recently received approval for the project. GEORGIA: Horticultural container mfr. is planning to invest $44 million in the construction of a 256,000 SF manufacturing facility in LYONS, GA. They have recently received approval for the project. SOUTH CAROLINA: Automotive glass mfr. is planning to invest $34.5 million for an expansion of its manufacturing facility in FOUNTAIN INN, SC. Completion is slated for early 2023. About SalesLeads, Inc. Since 1959, SalesLeads, based in Jacksonville, FL is a leader in delivering industrial capital project intelligence and prospecting services for sales and marketing teams to ensure a predictable and scalable pipeline. Our Industrial Market Intelligence, IMI identifies timely insights on companies planning significant capital investments such as new construction, expansion, relocation, equipment modernization and plant closings in industrial facilities. The Outsourced Prospecting Services, an extension to your sales team, is designed to drive growth with qualified meetings and appointments for your internal sales team.
Plant facilities reach 170 new Distribution and Supply Chain Industrial Projects in April 2022
Industrial SalesLeads, IMI, just announced the April 2022 results for the newly planned capital project spending report for the Distribution and Supply Chain industry. IMI tracks North American planned industrial capital project activity; including facility expansions, new plant construction, and significant equipment modernization projects. Research confirms 170 new projects in the Distribution and Supply Chain sector. The following are selected highlights of new Distribution Center and Warehouse construction news. Distribution and Supply Chain – By Project Type Distribution/Fulfillment Centers – 43 New Projects Industrial Warehouse – 161 New Projects Distribution and Supply Chain- By Project Scope/Activity New Construction – 83 New Projects Expansion – 45 New Projects Renovations/Equipment Upgrades – 43 New Projects Closing – 4 New Projects Largest Planned Project During the month of April, our research team identified 7 new Distribution and Supply Chain facility construction projects with an estimated value of $100 million or more. The largest project is owned by VinFast Auto US, which is planning to invest $4 billion in the construction of a manufacturing and distribution facility in MONCURE, NC. They are currently seeking approval for the project. Completion is slated for 2024. Distribution and Supply Chain – By Project Location (Top 5 States) Florida – 14 Texas – 13 California – 11 Indiana – 10 Ohio – 10 Top 10 Tracked Distribution and Supply Chain Project Opportunities Pennsylvania: Specialty chemical company is planning to invest $1.1 billion in the construction of processing, warehouse, and storage facility in POINT TOWNSHIP, PA. They are currently seeking approval for the project. Construction is expected to start in Fall 2022, with completion slated for Fall 2024. North Carolina: A department store chain is planning to invest $584 million for the construction of a 1.4 million SF distribution center in CHINA GROVE, NC. They are currently seeking approval for the project. Completion is slated for Summer 2023. Wisconsin: A real estate development company is planning to invest $300 million in the construction of a 1.57 million SF warehouse and hydroponic greenhouse facility in JANESVILLE, WI. Construction is expected to start in Fall 2022, with completion slated for late 2023. Alabama: Automotive mfr. is planning to invest $300 million for expansion and equipment upgrades at their warehouse and manufacturing facility in MONTGOMERY, AL. Texas: Custom corrugated paper products mfr. is planning to invest $200 million for the renovation and equipment upgrades on a recently leased 1 million SF distribution and manufacturing facility on S. US-67 in CEDAR HILL, TX. New York: Warehousing and logistics provider is planning to invest $130 million for the construction of a 2 million SF warehouse and distribution complex in HORSEHEADS, NY. Construction will occur in phases, with the completion of the first 461,000 SF warehouse and distribution facility slated for early 2023. Arkansas: Flexible packaging products mfr. is expanding and planning to invest $80 million in the construction of a manufacturing and distribution facility in SEARCY, AR. They have recently received approval for the project. Tennessee: A global shipping company is planning to invest $60 million in the construction of a 58,000 SF warehouse at 2900 Democrat Rd. in MEMPHIS, TN. They are currently seeking approval for the project. Texas: A waste recycling service provider is planning to invest $47 million in the construction of a 200,000 SF processing, warehouse, and institutional center in SAN ANTONIO, TX. They are currently seeking approval for the project. Completion is slated for 2024. Kentucky: An aviation service provider is planning to invest $40 million in the construction of a 150,000 SF warehouse, office, and maintenance hangar at Cincinnati/Northern Kentucky International Airport in HEBRON, KY. They have recently received approval for the project. About SalesLeads, Inc. Since 1959, SalesLeads, based in Jacksonville, FL is a leader in delivering industrial capital project intelligence and prospecting services for sales and marketing teams to ensure a predictable and scalable pipeline. Our Industrial Market Intelligence, IMI identifies timely insights on companies planning significant capital investments such as new construction, expansion, relocation, equipment modernization and plant closings in industrial facilities. The Outsourced Prospecting Services, an extension to your sales team, is designed to drive growth with qualified meetings and appointments for your internal sales team.
Toyota Material Handling, Cornell Engineering announce partnership on innovative forklift learning studio
The partnership aims to fundamentally change the learning experience by connecting theory and application Toyota Material Handling (TMH) and Cornell University’s College of Engineering have announced a unique partnership dedicated to the development of an innovative learning studio that incorporates Toyota equipment to elevate immersive engineering education to an entirely new level. The Forklift Learning Studio will be built and developed during the summer with the goal of officially launching it to Cornell engineering students at the start of the fall semester in August. Toyota and faculty from Cornell Engineering’s Sibley School of Mechanical and Aerospace Engineering (MAE) began discussing this partnership late last year as a way to revolutionize the way engineering students learn by finding a more optimal balance between lecture and lab sessions. “Our students enjoy theory, but they are motivated by action–building, and testing. They respond best to seeing engineering systems first and having the system motivate the theory they learn,” said David Erickson, the S.C. Thomas Sze Director of MAE. “The educational opportunity Toyota is enabling us to bring to life will fundamentally change the student experience by allowing them to see how each area of engineering connects to a larger system – in this case, a forklift. We believe this will provide students a uniquely engaging learning environment.” Erickson intends for this to be the first of multiple learning studios. Each one will be designed to unify multiple courses and link students across classes and skill levels as they engage in work with real-world applications. They will each incorporate a fully functional system – like a forklift – so that students can use it to perform experiments and model problems that connect to lessons from other classes. This set of lab redesigns is supported by an Innovative Teaching and Learning Award from Cornell’s Active Learning Initiative. “We are excited about the future of this partnership and the impact it will have on the next generation of engineers,” said Brett Wood, President & CEO of Toyota Material Handling North America and a Cornell graduate. “As a former engineering student, I would have loved the opportunity to learn in such a hands-on way that connects the classroom to the real world. Young people often wonder how they’ll use certain theories in their professional lives because it’s often difficult to connect the dots. In our Forklift Learning Studio, all of the ‘dots’ will exist in the same space as the finished product. This connects perfectly to our Toyota culture of continuous improvement by giving Cornell Engineering students a place for continuous learning.” Toyota proposed that forklifts would be a perfect fit for such a learning studio and offered to donate the equipment and branding work necessary to bring the idea to life. Forklifts encompass all aspects of a mechanical engineering curriculum – they use internal combustion engines (thermofluids), bear weight (structural mechanics), and their use depends on dynamic stability (dynamics and controls). This innovative learning space will provide students with opportunities to discover new principles and to build bridges – both between their courses and from their coursework to their careers. For the college, this model provides efficient and effective use of space that allows engaging lab work to be spread evenly through the curriculum. “Systems thinking is at the core of what we teach students. The ability to take apart a complex system – and to analyze its key components and their interconnections – is essential to modern engineering,” said Lynden Archer, the Joseph Silbert Dean of Engineering at Cornell. “This learning studio will advance our educational priorities and enrich the MAE experience for all students. I anticipate that the model we’ve formed with Toyota will be replicated in programs that span the entire college. We deeply appreciate the expertise and forward-thinking approach that Brett and his colleagues at Toyota have brought to the table as we reimagine engineering education and strengthen our connections to important industries.” In addition to modernizing the way students learn, the mutually beneficial partnership will expose them to new products and industries where they could build successful careers. The forklift industry is an essential part of the nation’s supply chain, and it is coming off a record year in 2021 with 334,000 units sold in North America. The industry contributes more than $26 billion to the United States’ annual GDP and offers wide-ranging opportunities for engineers – including in automation. “When you think about it, forklifts are incredibly important to the world we live in. Everything that we buy at the grocery store, every package that ends up at our front door was touched by material handling equipment at some point in the process,” said Brian Kirby, the Meinig Family Professor of Engineering at Cornell’s MAE. “If we can’t move goods and materials, it has a domino effect on all kinds of things in the industry, the economy, and ultimately our society. The opportunity to expose our students to such an important industry while also revolutionizing the way they learn is a win-win on every level.”
April 2022 Logistics Manager’s Index Report®
LMI® at 69.7 Growth is INCREASING AT AN INCREASING RATE for: Inventory Levels, Warehousing Utilization, Warehousing Prices, Transportation Utilization, and Transportation Prices. Growth is INCREASING AT A DECREASING RATE for Inventory Levels Warehousing Capacity and Transportation Capacity are CONTRACTING After reaching an all-time high of 76.2 in March, the overall LMI is down (-6.5) to 69.7 in April. This slowdown (which should be pointed out is still comfortably above the all-time average of 65.3) is largely driven by a shift in Transportation metrics. After 23 consecutive months of contraction Transportation Capacity has finally shifted back into expansion, bumping up 11.2 points to a reading of 56.9. There was an equivalent dip in Transportation Price expansion, down 15.8 points to 73.9. Despite the slowdown in transportation, respondents still indicate growth in the sector, just at a slower pace than what we’ve seen over the last 18 months. There is much less change in Inventory and Warehousing metrics as costs continue to grow and capacity remains tight Researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report today. Results Overview The LMI score is a combination of eight unique components that make up the logistics industry, including inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50 percent indicates that logistics is expanding; a reading below 50 percent is indicative of a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in April 2022. Overall, the LMI is down (-6.5) from March’s all-time high reading of 75.2. The dip is fueled by the first expansion of Transportation Capacity in nearly two years and a subsequent dip in the rate of growth for Transportation Prices. Inventory and Warehousing metrics remain are down slightly but still, show high rates of growth as supply chains continue struggling to find the capacity needed to deal with high levels of inventory. The economy is clearly in a complex place. GDP in the U.S. was down 1.4% year-over-year and 0.4% when adjusted for inflation. Interestingly, consumer spending grew through Q1, up 0.7%[1]. April was also tough on the market, the Nasdaq dipped 4.2% on the final Friday of April, capping off the worst month for the composite index since the recession of 2008. Since the start of 2022 the Nasdaq is down 21%, the S&P 500 is down 13%, and the Dow is off by 9%[2]. At the same time, wages continue to grow, up about 6% from a year ago, and unemployment remains low at 3.6%[3]. Goldman Sachs reports that the US. Currently has 5.3 million more available jobs than it does workers – the highest this gap has been since the end of World War 2[4] (Goldman Sachs, 2022). The large shifts in Transportation Prices (gold line) and Transportation Capacity (maroon line) over the six-year history of the LMI can be seen in the chart below. We have often stated that transportation metrics are the most dynamic piece of the LMI and the most reflective of the overall economy. Specifically, anytime there is an inversion between the lines representing Transportation Prices or Capacity, it usually means there has been some shift in the overall economy. For instance, after experiencing a 65-point spread in April of 2018 (coming on the heels of the Republican Tax Cut), there was an inversion in early 2019 as the freight market slowed dramatically – particularly upstream. This inversion, during which thousands of carriers went out of business, lasted until the outbreak of COVID-19 in America in early 2020. Transportation Price exceeded Capacity in March of 2020 as goods were pushed forward in anticipation of lockdown, and then dropped down again from April to May as much of the world fell into lockdown. The most recent inversion occurred in June 2020 as some restrictions lifted and supply chains shifted into high gear in an attempt to first make up the deficit built up during lockdowns, and then simply to keep up with burgeoning international demand. The deficit between Transportation Prices and Costs was near its peak a year ago with a 59.4-point spread. Today, that spread is only 17 points as the last two months have seen prices drop dramatically, and Capacity shift from contraction to expansion. It can be observed that the two curves have not yet inverted, suggesting that while the frantic pace in the transportation market has slowed down, we have not yet tilted into a full-on recession. The freight market has slowed, but it has not stopped. In late April, FreightWaves’ tender rejection index sat at 10.89%, a far cry from its reading of 25.45% at this time last year. This tells us that carriers had the capacity to take 3 out of every 4 loads available in April 2021 but can pick up roughly 9 out of 10 in April 2022. This is reflected in our Transportation Capacity metric, which as predicted in last month’s report moved from contraction up (+11.2) to expansion at a rate of 56.9. It should be noted that during April 2019 the tender rejection rate was just over 4%[5], so although a rate of 10-11% is down from the robust market carriers have been dealing with over the last 18 months, it is still double the rates observed during the freight recession of 2019. Interestingly, there are also reports that over 37,000 trailers were ordered in March – the highest figure since December 2020[6]. Demand for trailers has outstripped supply for the last 18 months, it will be interesting to observe whether this demand remains high, or if this was a temporary blip. Orders for new Class-8 trucks also remain fairly consistent, with very few order cancellations as firms as hesitant to “get out of line” when they’ve been waiting
Gorbel® CEO Brian Reh appointed Vice President of MHI
The leading association for handling, supply chain, and logistics appoints Gorbel® CEO to help shape its strategic vision Gorbel® Inc., a provider in overhead material handling, ergonomic lifting, and industrial fall protection, is excited to announce that Gorbel CEO Brian Reh has recently been elected to serve as Vice President of MHI, the nation’s largest material handling, supply chain, and logistics organization. In this role, Reh will be a vital part of solidifying the organization as the authoritative resource for material handling. Reh has been involved at MHI in various capacities for more than 15 years and has been a key participant in recent initiatives to set the direction for the organization. Reh and Gorbel® are key members of MHI industry groups that focus on overhead lifting and ergonomics. MHI members produce products and solutions ranging from mobile automation to storage equipment. MHI has a commitment to building supply chains that make the world work. To achieve this, the association delivers up-to-date knowledge, close professional connections, and top industry leadership, alongside the best market access for manufacturing and supply chain professionals. “MHI and Gorbel® share a commitment to sustaining the invisible force that connects everything, that is, supply chains,” affirms Reh. “Even in times of disruption,” he adds, “it is crucial that these supply chains run smoothly and successfully to keep critical goods flowing fast and freely. At MHI and Gorbel, we make sustaining supply chains our mission.”
KION North America announces the opening of its brand-new Aftermarket Distribution and Training Center
KION North America has opened its brand-new Aftermarket Distribution and Training Center in Summerville, South Carolina. This new location is just five miles from KION North America’s production facility, tripling the warehouse space for high-demand spare parts. The new location also offers a state-of-the-art Sales and Service Training Center for in-person and live events, which will support over 1,600 dealer technicians and sales representatives in 2022. The distribution warehouse increases floor space by 86%, vertical storage by 80%, high rack storage by 64%, and small parts storage by 30%. This allows KION North America to increase the total number of parts in stock to more than 30,000 SKUs to best serve its customers. The Aftermarket Distribution Center utilizes brand new Linde Material Handling warehouse equipment for a highly efficient storage and picking process. The opening of this new location has also provided additional jobs in the Summerville, South Carolina area. Daniel Schlegel, Vice President of Customer Service, says, ”the new Aftermarket Distribution Center and the new Sales & Service Training Facility are important milestones of our North American growth strategy. It puts the necessary foundation in place to provide state-of-the-art aftermarket support to our high-performing Sales & Service Dealer Network. The entire project execution took 11 months from planning to launch, and it also substantially improved the work environment for our Customer Service team.” The new training center will support roughly 400 dealer technicians and sales representatives in 2022. In addition to in-person training, the training center will produce up to 20 live webinars in the new virtual studio. KION North America will support an additional 1,200 service technicians and sales representatives throughout North America through live webinars in 2022. Bob Menges, Customer Service Technical Training Manager, says, “the new Training Center is specifically designed for service and sales/product training. It features a state-of-the-art classroom and a dedicated hands-on training lab where trainees, whether service technicians or sales representatives, can seamlessly move between classroom training and hands-on training to optimize the training environment and experience.” KION North America understands that immediate access to parts and experienced technicians to address customer issues quickly is essential to keep businesses running in these highly demanding times. With a continued focus on its customers, KION North America is proud to expand its offerings, including products, parts, training, and solutions to its dealer network.
ALAN opens nominations For 2022 Humanitarian Logistics Awards
Annual awards honor extraordinary supply chain relief efforts The American Logistics Aid Network (ALAN) has officially opened nominations for its sixth annual Humanitarian Logistics Awards, and it’s asking for your help in identifying some of this year’s most deserving honorees. “Many humanitarian efforts couldn’t happen or happen as well without the generosity of the commercial supply chain community,” said ALAN Executive Director Kathy Fulton. “These awards were created to shine a light on that generosity and to honor our industry’s most selfless companies and individuals. We clearly know who some of them are because we’ve worked hand-in-hand with them to help provide disaster relief. However there are many others that we won’t be aware of – and able to honor – unless someone takes the time to nominate them.” Nominations (including self-nominations) can be made via ALAN’s website (https://www.alanaid.org/humanitarian-awards-nomination/) between now and June 30th. Winners will be announced this fall. ALAN’s Humanitarian Logistics Awards are open to any logistics professional, academic, organization, or department. They are awarded in four key categories, each of which can have multiple honorees: Outstanding Contribution To Humanitarian Logistics Employee Engagement Research And Academic Contributions And Lifetime Achievement For a full list of rules and nomination criteria visit https://www.alanaid.org/wp-content/uploads/2022/04/ALAN-Award-Nomination-Information-2022.pdf. Established in 2017, ALAN’s Humanitarian Logistics Awards recognize companies and individuals who exemplify the best that the supply chain profession has to offer by assuring that aid and comfort are rapidly delivered to communities in crisis. Previous winners have included CEVA Logistics, Palmer Logistics, Core-Mark International, J.B. Hunt Transport Services, American Trucking Associations, Tucker Company Worldwide, Truckstop.com, Dr. José Holguín-Veras, Dr. Hossein Zarei, and the students on ALAN’s intern teams from the W.P. Carrey School of Business at Arizona State University, the University of Tennessee, Knoxville, and the University of Wisconsin Madison.
The National Association of Wholesaler-Distributors (NAW) announces addition of Greg Ferrara to Board of Directors
The National Association of Wholesaler-Distributors (NAW) has announced the election of Greg Ferrara, president and CEO of the National Grocers Association (NGA), to its Board of Directors. “I am proud to announce the addition of Greg Ferrara to NAW’s Board of Directors,” NAW CEO Eric Hoplin said. “Greg is an incredible leader, who brings tremendous insights from the grocery industry, one of the most important categories of distribution. As the president and CEO of the National Grocers Association, Greg understands how a trade association can best serve its members. We look forward to his guidance and insights as NAW continues to work to strengthen and support the wholesale-distribution industry.” “It’s an honor to join the NAW Board of Directors and I appreciate the opportunity to further the important work done by our organizations, especially on public policy issues, such as labor and tax, that have a direct impact on wholesaler distribution businesses,” Greg Ferrara said. “NGA and NAW have a strong working relationship and I look forward to continuing our partnership to support the wholesale-distribution industry in Washington, DC, and beyond.” From joint letters to Congress to form a coalition to stand against devastating tax hikes, NAW and NGA have a long-standing history of working with one another to strengthen their respective industries and member organizations. We are proud to continue this partnership as we welcome Greg Ferrara to our Board of Directors.
Below Expectations: Employers not meeting Training Expectations of Workers
While 80% of employed U.S. adults consider an employer’s professional development and training offerings an important consideration when accepting a new job, just 39% say their current employer is helping them improve their current skills or gain new skills to do their job better, according to results from the latest American Staffing Association Workforce Monitor® online survey conducted by The Harris Poll in late October and early November 2021. Job training programs put employers at a competitive advantage when recruiting job candidates from all generations. Among those employed, 84% of Millennials view an employer’s professional development and training offerings as important considerations when accepting a new job, along with 79% of Baby Boomers and 79% of Generation X. Seven in 10 of those in Generation Z (70%) share this view. Meanwhile, many employees said they were not receiving from their employers the skills training needed to maintain or grow their careers. Just 31% of Baby Boomers said their employer is helping them improve or expand their skillset, compared with 50% of Millennials, and 33% of those in Generation X. Of Generation Z employees, who comprise the newest members of the workforce, just 37% said their employer was helping them improve or expand their skills to do their job better. “For employers looking for an edge in 2022, investing in training and development could make the difference in competing in the war for talent,” said Richard Wahlquist, President and Chief Executive Officer of the American Staffing Association. “Employees are looking to employers to provide the job training they need to elevate their careers. During the Great Resignation, if an employer is not willing to train and upskill its workforce, those employees may begin to look for an employer that will.” The study also found concern among some U.S. workers about the effects of automation on their employability, with 37% worrying that automation will cost them their jobs. Nearly half of Hispanic/Latino employees (49%) worry that automation will eliminate their jobs, compared with 35% of Black/African-American employees and 33% of White/Caucasian employees. In addition, 52% of Millennial workers expressed worry about their job security due to automation, compared with 40% of Generation Z employees, 30% of Generation X employees, and just 20% of Baby Boomer employees. “The acceleration of automation due to the pandemic has only increased the importance of employer investments in workforce training and development,” added Wahlquist. Method This survey was conducted online within the U.S. by The Harris Poll on behalf of ASA between Oct. 28 and Nov. 1, 2021, among a total of 2,042 U.S. adults age 18 and older of whom 1,054 were employed. Results were weighted for age within gender, region, race/ethnicity, household income, education, marital status, and size of the household where necessary to align them with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online. About the American Staffing Association The American Staffing Association is the voice of the U.S. staffing, recruiting, and workforce solutions industry. ASA and its state affiliates advance the interests of the industry across all sectors through advocacy, research, education, and the promotion of high standards of legal, ethical, and professional practices. For more information about ASA, visit americanstaffing.net.
Are your Organization’s capabilities aligned with your strategy?
Imagine you’re faced with creating organizational change. You need to do something big and bold to turn around the organization’s downward trajectory. Or you need to catapult growth. You have some great, innovative ideas that you’ve vetted and know they’ll make a positive impact. You have a budget, resources, and a rollout plan. You’re all ready to go – or are you? One key element to any successful change that many leaders overlook is having an honest understanding of their organization’s capabilities. New ideas come with a bright and alluring sheen that is hard to turn away from. You gain momentum and buy-in to the idea, and it’s incredibly difficult to put the brakes on. Yet the question is, can your organization deliver on the idea? For example, say a company wants to become “the tech leader” in their industry. They’ve identified that consumers are seeking more tech-based, self-serve options, and they know they are woefully behind their competitors. Seems like, on the surface, a straightforward strategy to tackle. However, their current tech stack is incredibly outdated. The development team is comprised of legacy coders, who have never implemented a major transformation before. The organization as a whole isn’t very tech-savvy and isn’t used to processing changes. This is the problem with the strategy – the organization isn’t up to it. This doesn’t mean the strategy is all bad or unreachable. Many would argue that lofty strategic goals are a good thing. But just like deciding to become the best golfer in the world, you should first determine whether you have some basic golf talent in the first place. Unless the leader in this scenario plans to uproot the entire organization, churning new people in until completely overhauled, this lofty strategy implementation will be a long and rough road. In addition, the turmoil caused by such a massive change will be a project in and of itself (the caveat is that sometimes a leader will anyway). So what should be done instead? First, conduct a thorough assessment of your organization’s true capabilities. What are you amazing at? That none of your competitors do or do as well as you. What is something you can capitalize on? What is the thing you can leverage? This is a great litmus test for your strategy. Does your current state – whether skills, culture, infrastructure, and capabilities – realistically has a chance to be able to implement your strategy? If not, is your strategy too far afield or misaligned with the realities of today? Don’t misunderstand me – a strategy should have room for growth. Yet without having a firm grip on your organization’s real-world abilities, you might be stretching too far. No amount of communications or execution planning will be able to bridge the chasm. The smarter approach is to design a strategy that capitalizes on the best organizational attributes you have today and leverage those with a strategy that can create a competitive advantage that can actually be implemented. Otherwise, you may simply have an aspirational strategy without any basis in reality. 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.
Nearly $120,000 raised in first stage of PTDA Foundation’s Fundraising Campaign
During the first three months of its 2022 Fund Drive campaign, the PTDA Foundation raised nearly $120,000 of its 2022 fundraising goal. Contributions to the annual PTDA Foundation Fund Drive support PT WORK Force®, an initiative to empower PT/MC (power transmission/motion control) industry employers to be more successful in their recruitment and retention efforts. “The PT/MC industry is vital and full of great opportunities for career growth and advancement,” says PTDA Foundation Vice President and 2022 Fund Drive Chair, Hafeez Hameer, business development manager, KLOZURE Seals for Garlock Sealing Technologies, Inc. “Every contribution to the PTDA Fund Drive directly impacts and assists PT/MC employers in building the talent pipeline. Hiring challenges abound in every industry, yet the work of PT WORK Force–thanks to the support of generous donors–ensures that both employers and talent reap the reward of their involvement in this thriving and exciting workforce.” Early campaign contributions provide for new and vital programs and research for 2022, including: The Cross-Industry Compensation and Benefits Survey are due for release in May. The six-part webinar series, “Winning the War for Talent.” New PTDA Foundation LinkedIn page. Recruitment Agency Checklist “Growth Mindset Recruitment” keynote during the PTDA 2022 Canadian Conference in June. PTWORKForceBlog.org What’s Trending in Recruitment and Retention monthly e-newsletter The webinar “Inclusion in Action: Recruiting and Onboarding Diverse Talent” Thank you to these 2022 PTDA Foundation Vanguard Contributors (October 2021–December 31, 2021): Partner Contributors ($15,000+) Allied Bearing & Supply, Inc. Motion Investor Contributors ($10,000 – $14,999) Applied Industrial Technologies Stakeholder Contributors ($5,000 – $9,999) Bishop-Wisecarver Group NSK Americas WEG Electric Corp. Benefactor Contributors ($2,500 – $4,999) BDI Americas (USA & Canada) (in honor of Rick Copfer) Garlock Sealing Technologies Houston Bearing & Supply Co., Inc. Interlynx Systems–Sales Lead & Rebate/POS Management Systems JIE USA, Inc. Master Power Transmission, Inc. NTN Bearing Corp. of America RBC Bearings, Inc. RBI Bearing Inc. Renold Ringfeder Power Transmission USA Corporation U.S. Tsubaki Power Transmission LLC W.C. DuComb Company Leadership Contributors ($1,000 – $2,499) Freudenberg-NOK FYH Bearing Units USA Inc. Lafert North America Regina USA Inc. The Rowland Company Ruland Manufacturing Co., Inc. Sumitomo Machinery Corporation of America Transply, Inc. USA Roller Chain & Sprockets Webster Industries Foundation Sponsor Contributors ($500 – $999) Brewer Machine & Gear Co. ERIKS North America, Inc. KML Bearing USA MPT Drives, Inc. Orthman Conveying Systems Torque Drives, Inc. Colleague Contributors: ($250 – $499) ErieTec, Inc. Individual Contributors Chris & Heidi Bursack Hafeez Hameer (in honor of Zahir Hameer) Alan and Betsy Haveson Pamela & Mark Kan Bill Moore Keith & Sharon Nowak Matthew Pavlinsky Barbara J. Ross (in memory of Bob Callahan) Chuck Schwender Jos Sueters C.C. & Dan Vest The PTDA Foundation Fund Drive is underway with a goal of raising $275,000 in 2022. While we raised $120,000 in the first three months, we are currently at 58 percent of our goal with nearly $160,000 in contributions raised as of today. To join these contributors and get recognized for your generous donation, give online at ptda.org/FoundationGive or download a pledge form at ptda.org/FoundationSupport. The PTDA Foundation, whose work is funded solely by donations, was founded in 1982 to champion education, outreach, and research initiatives relevant to the power transmission/motion control (PT/MC) industry that enhance the knowledge and/or professionalism and productivity for industry stakeholders. The Foundation is a not-for-profit, tax-exempt 501(c)(3) corporation; contributions are tax-deductible to the full amount allowed by law. For a complete list of donors, visit ptda.org/FoundationSupport.
Department of Labor investigates warehouses paying works as little as $2.50 per hour
While dozens of companies along the U.S. border in California hire workers from Mexico to labor as warehouse and logistics workers in scores of non-descript buildings, U.S. Department of Labor investigators and attorneys are also working hard – to prevent the exploitation of these workers and hold employers accountable. Since a landmark investigation of Premar Global Warehouse Logistics in September 2021, Wage and Hour Division investigators have found three more San Diego-area customs warehouses paying workers in Mexican pesos at an equivalent rate of as little as $2.50 per hour in violation of the Fair Labor Standards Act. Based on these investigations, the department’s Office of the Solicitor reached consent judgments against the three employers – Columbia Export Group PDSA, OMG Global Logistics, and Atlas Freight Forwarding – resulting in the U.S. District Court for the Southern District of California ordering the companies to pay nearly $2 million combined in minimum and overtime back wages to 108 workers. To learn more, read “Working for $2.50 per hour: US Department of Labor’s crackdown on grossly exploitive, abusive pay practices in San Diego continues” from the U.S. Department of Labor.
Forget B2B or B2C–Why digital engagement is actually P2P
The pandemic arrived and brought with it many new and surprising changes in how companies do business. One of the most interesting, and most impactful, changes for organizations has been how consumers engage with brands. There was a recent survey* on this very topic and the results were clear. Consumers are re-thinking how they interact with others and have re-evaluated priorities in life. This includes the types of brands that will get their business in the future. These consumers were much more willing to change brands if they did not feel the brand promise was in alignment with their core values. They also felt that they would spend more money with brands that they felt supported and understood their needs during challenging times. This can translate to a simple construct: the more human the brand, the more business that brand may get. These consumers looked at factors other than just price and quality; trust and brand reputation factored into their decisions. This trust encompassed brands taking responsibility to live by their values and be more relevant in today’s world. No Longer A Nebulous Concept Consumers are looking for companies that represent and reflect their values, their beliefs, and their sense of purpose in the world today. Brands of the PPE (Pre-Pandemic Era) could float out in the ether as a nebulous concept with no real shape or form. Those types of companies may still try to exist on that plane, but companies that do are missing out. They fail to capitalize on retaining customers as well as attracting new customers. And those new customers may be willing to pay more for the relevancy brought to the business exchange. The antiquated constructs of business-to-business or business-to-consumer (B2B or B2C) do not take into account this new shift in consumer beliefs or wishes. Prospects and customers want a deeper focus on building the relationship, having a brand reflect today’s current values, and providing the type of support and alignment that makes the interaction feel more like an investment in a relationship. Instead of looking at organizations as one end of a transaction, companies that wish to grow in the current paradigm must look at the who in the interaction. The focus must now move to people-to-people or people-to-person (P2P). How To Translate Digital Engagement Into P2P Digital engagement and communication are set up to be much more humanistic than many organizations allow. The focus on connection and community is readily available for organizations. By allowing the people behind the brand to emerge out of the shadows, companies can move beyond the products and services they sell and provide engagement with the people who create those products and services. Several recommendations can be quickly applied by any organization to move past B2B and B2C and move into a P2P interaction. Here are three ways to help move in that direction. Many Voices, One Brand There was a time when one person was sharing content on behalf of the organization. Smart organizations, however, have moved to share several different voices and points of view in their digital communications. Not only does this allow different viewpoints from a brand perspective, but it also keeps content fresh, as many voices make the brand what it is today. Providing different styles of content engages more than one type of prospect, which sets up potential growth. Focus On The Individual In Every Interaction It should be obvious that the individual consumer should be a focus. But what about when businesses market to other businesses? There are individuals that each business brings to the table for engagement, and each one is important in bringing a different viewpoint. When creating content, consider the personality of the key players in the receiving organization. What are their individual roadblocks? How does s/he define success? Always consider the individual sending and the one receiving the communication. Because either way, a person is on each end of that communication. Know Where The Power Lies It has been said that consumers are now holding all the cards in the business interaction and have no plans to give them back. When organizations look at who is in control of the communication, the power lies with the consumer, not with the company. Organizations need to understand this fundamental shift in power to the person receiving marketing and communication. This will help move communication to a person-to-person level and allow the consumer to drive the engagement, which is what the consumer not only wants but demands in today’s digital paradigm. Taking the opportunity to bring humanity into any organization’s digital communications can bring accelerated digital growth and engagement. This may feel like a risk to some organizations. However, the new paradigm has shifted this from novelty to necessity. By switching the focus from B2B or B2C to P2P, digital communication can be realigned to meet the current demands of audiences. With this ever-changing shift in consumer behavior, thinking about how one person communicates with another has become a cornerstone in digital engagement. This is no longer a passing trend but a new way of being, and the organization that embraces this way of being will reap the rewards. About the Author: Lisa Apolinski, CMC, is an international speaker, digital strategist, author, and founder of 3 Dog Write. She works with companies to develop and share their message using digital assets. Her latest book, Persuade With A Digital Content Story, was named one of the top content marketing books in the world by Book Authority. For information on her agency’s digital services visit www.3DogWrite.com.
Port of Long Beach celebrates Earth Day with Green Milestones
Continues to lead the nation with environmental goals, set the bar higher Earth Day 2022 marks another year of environmental achievements for the Port of Long Beach, as it continues to pursue the most ambitious sustainability goals for any seaport in the world. Earlier this month, on April 1, the Port, along with the Port of Los Angeles, launched the Clean Truck Fund rate, collecting from cargo owners up to $20 per loaded container moved into or out of the ports’ terminals. Between the two ports, the rate in its first year is expected to generate up to $90 million to pay for zero-emissions vehicles and the support infrastructure for recharging and refueling. It’s part of working toward the complete transition of the truck fleet to zero emissions by 2035. The rate builds upon the Clean Truck Program, which has already succeeded in phasing out older, dirtier trucks. Today, more than 20,000 trucks are registered to service the San Pedro Bay ports. All are the model year 2007 or newer. More than 60% are the model year 2014 or newer. In February, the Port broke ground on a new microgrid demonstration project, which will use an array of solar panels and batteries to provide energy resilience for the Port’s security center while enhancing air quality by delivering clean power for daily operations. The project also reduces the Port’s reliance on diesel generators to produce electricity during outages. Also in February, the Port issued a request to vendors to assist in creating one of the largest networks of publicly accessible electric-charging stations for the battery-electric heavy-duty drayage trucks that will serve the port complex. The Port’s goal is to support the installation of at least 100 chargers in the Harbor District. “The Port of Long Beach was America’s first Green Port and we continue to lead on sustainability,” said Long Beach Mayor Robert Garcia. “From construction to procurement to zero-emissions clean technology development, I’m proud of what the Port has done, and more importantly, what it will do in the future to take on climate change.” “This Earth Day, we not only look back at our many environmental accomplishments, but we also look ahead to achieving the ambitious goals we have set for the Port for the years to come,” said Port of Long Beach Executive Director Mario Cordero. “We have come a long way, but we are by no means finished.” “We take our role as a leader in seaport sustainability very seriously at the Port of Long Beach,” said Sharon L. Weissman, Vice President of the Long Beach Board of Harbor Commissioners. “As a leader, we are continually looking for new ways to improve the environment and the health of the community.” The Port’s latest annual Air Emissions Inventory, the 2020 report issued in September 2021, confirmed that the Port has reached and surpassed its third and final target for slashing ground-level air pollution from port-related operations – three years ahead of schedule. Under the Clean Air Action Plan, the Port committed to reducing emissions of diesel particulate matter (DPM) by 77%, nitrogen oxides (NOx) by 59%, and sulfur oxides (SOx) by 93% by 2023. The Port met and exceeded its DPM reduction target in 2013 and its SOx reduction target in 2014. In 2020, the NOx target of 59% was met and exceeded. To reduce greenhouse gases, the Port is moving forward with measures to transition to zero emissions for terminal cargo handling equipment by 2030 and the truck fleet by 2035. The Port’s goals are a 40% reduction of greenhouse gases by 2030 and 80% by 2050, compared to 1990 levels. The Port of Long Beach leads by example. The Green Fleet Policy, initiated in 2006 and updated in 2021, requires that when the Port buys a new vehicle, it’s the cleanest one that meets the Port’s performance requirements with the goal of having a 100% zero-emission fleet by 2030. Many electric vehicles have been added to the Port fleet over the years under this policy. Last year, for example, the Port bought a zero-emissions electric street sweeper vehicle for the Port’s new bike paths. In August 2021, the Port celebrated the substantial completion of the new Long Beach Container Terminal, which features advanced technology and zero-emissions cargo operations. LBCT’s five major structures are built to gold Leadership in Energy and Environmental Design (LEED) standards for sustainable design, construction, and use, which include water and energy conservation and reuse of recycled materials. Developed at a cost of $1.5 billion to the Port, LBCT is one of the greenest terminals in the world. In addition to air quality, harbor waters are an equal priority for the Port. Released in 2021, the latest survey of water quality, aquatic habitat, and biological resources in the San Pedro Bay shows the harbor’s ecosystem is thriving, with more than 1,000 species of aquatic plants, fish, birds, invertebrates, and marine mammals. Meanwhile, the Port continues to look for more innovative ways to be green. The Port’s Community Grants Program financially helps local groups carry out health, facility improvement, and community infrastructure projects to mitigate port-related impacts on air and water quality, traffic and noise. Since 2009, the Port has set aside more than $65 million for the program. For example, Rancho Los Cerritos in Long Beach this year kicked off construction of a new stormwater reclamation project that will help the Rancho historic site to conserve water and will help educate the public on the importance of stormwater control. The project received a $1 million Port Community Grant.
Earth Day Investment is important, says Plastics Industry Association
The Plastics Industry Association (PLASTICS) has issued its support of Earth Day 2022, saying it is important to continually recognize the need to properly care for the planet. “This year’s Earth Day theme of investing in our planet could not be more appropriate,” said Patrick Krieger, VP for Sustainability at PLASTICS. “The plastics industry has invested and continues to invest billions in new recycling technologies and programs at home and abroad, innovating to increase the recyclability of the products we make and including more recycled content at a record pace.” Krieger went on to say that technology exists to recycle most types of plastic and that technology continues improving by the day. “Improving our national infrastructure to make sure all plastics can be recovered and recycled is the most important answer to reducing waste and building a more circular economy,” he said. PLASTICS has a number of its own sustainability goals that include promoting the use of recycled plastics in new products, educating companies on how to recycle more and make products easier for consumers to recycle, and demonstrating viable business models for collecting and recycling plastic materials from locations such as hospitals, offices, auto repair shops, and others. “Even with plastic being only 13 percent of municipal solid waste in the U.S.”, Krieger said, “the plastics and recycling industries want to ensure these materials are kept at their highest and best use. We are investing to ensure plastics are used as circularly as possible.” The association supports legislation such as the Realizing the Economic Opportunities and Values of Expanding Recycling (RECOVER) Act, which would allocate funds to recycling infrastructure improvement, and the Recycling Enhancements to Collection and Yield through Consumer Learning and Education (RECYCLE) Act, to create a new federal grant program through the Environmental Protection Agency (EPA) to help educate households and consumers about their residential and community recycling programs. Krieger recommended, “On Earth Day, and every day, we encourage people to contact their government officials, asking them to push forward legislation and programs that prioritize recycling. That would be a great investment in our planet.”
PERC encourages material handling professionals to decrease forklift emissions this Earth Day
Research reveals low-emission propane forklifts can assist with decarbonization This Earth Day, the Propane Education & Research Council (PERC) is reminding material handling professionals that because of propane’s clean, low emissions profile, propane forklifts are a reliable and sustainable choice for both indoor and outdoor environments. “Professionals throughout the supply chain industry are working to decrease emissions and achieve a more sustainable operation—and Earth Day brings a heightened awareness to these efforts,” said Joseph Calhoun, director of off-road business development at PERC. “For material handling professionals, this often means taking a closer look at the equipment and energy sources that are being used.” Research from PERC reveals propane forklifts provide a smaller carbon footprint than electric forklifts under several conditions. The analysis, Fork(lifts) in the (Off) Road: Should We Ban Internal Combustion Engines for Electric? debates California Air Resources Board (CARB)’s proposed to ban on internal combustion engine (ICE) forklifts. CARB’s mandate would ban all internal combustion engine forklifts including hybrid electric solutions, allowing only battery-powered and hydrogen fuel cell forklifts. The analysis from PERC compares the lifecycle profiles of propane and electric-powered forklifts, including carbon dioxide (CO2) and nitrogen oxide (NOx) emissions. Findings for several states show that forklifts with conventional propane engines are superior to those powered by electricity, especially when considering marginal emissions. The case for internal combustion engine forklifts becomes even stronger with hybrids and renewable fuels. In fact, nearly all propane ICE forklifts technologies emit extremely low levels of criteria pollutants compared to the regulatory standards. PERC conducted the analysis using available Environmental Protection Agency (EPA) certification emissions data to compare the CO2 and NOx lifecycle emissions of propane and electric forklifts. The comparative analysis presented the following scientific findings: A zero-emissions forklift does not exist. Hybrid electric forklifts, with both conventional and renewable fuels, emit less CO2 than battery-electric forklifts. For most states, NOx emissions from propane-powered forklifts engines can be less than half that of battery-electric forklifts powered by the electric grid. Nearly 314,000 ICE forklifts are operating in California alone. Replacing all ICE forklifts in the state with battery-electric forklifts would require nearly 10 GWh/day of additional charging capacity. Electrification as a means of decarbonization sounds attractive but as proven, is not real without complete consideration of lifecycle emissions. “As fuels and engine technologies continue to evolve—coming together as a unified and environmentally conscious industry has never been more important,” Calhoun said. “Earth Day provides the perfect opportunity for companies throughout the supply chain industry to re-evaluate their current practices and determine where they can make a positive change. With the clean energy of propane, every day is Earth Day.” Download PERC’s new analysis or visit www.Propane.com/Research to learn more about how to decrease forklift emissions this Earth Day.