145 new Industrial Manufacturing Planned Industrial Project reports – November 2021 Recap
SalesLeads just announced the November 2021 results for the newly planned capital project spending report for the Industrial Manufacturing industry. The Firm tracks North American planned industrial capital project activity; including facility expansions, new plant construction, and significant equipment modernization projects. Research confirms 145 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 – 128 New Projects Distribution and Industrial Warehouse – 61 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 52 New Projects Expansion – 55 New Projects Renovations/Equipment Upgrades – 46 New Projects Plant Closings – 12 New Projects Industrial Manufacturing – By Project Location (Top 10 States) North Carolina – 12 California – 11 Ohio – 9 Indiana – 9 Georgia – 8 Florida – 7 Ontario – 7 Texas – 7 New York – 6 Michigan – 6 Largest Planned Project During the month of November, our research team identified 13 new Industrial Manufacturing facility construction projects with an estimated value of $100 million or more. The largest project is owned by SKC, Inc., which is planning to invest $473 million for the construction of a manufacturing facility at 3000 SKC Dr. in COVINGTON, GA. Completion is slated for Fall 2023. Top 10 Tracked Industrial Manufacturing Projects SOUTH CAROLINA: Flooring products mfr. is planning to invest $400 million for an expansion of their manufacturing facility in AIKEN, SC. They have recently received approval for the project. Completion is slated for late 2024. GEORGIA: Metal recycling service provider is planning to invest $340 million for the construction of an electronic recycling facility in AUGUSTA, GA. Completion is slated for Spring 2024. FLORIDA: Contact lens mfr. is planning to invest $200 million for the expansion of their manufacturing facility in JACKSONVILLE, FL. They are currently seeking approval for the project. INDIANA: A biotechnology company is planning to invest $125 million for the construction of a 110,000 SF processing facility in FISHERS, IN. They have recently received approval for the project. Completion is slated for late 2023. NORTH CAROLINA: Consumer products mfr. is expanding and planning to invest $110 million for the construction of an 80,000 SF manufacturing facility in GREENSBORO, NC. They have recently received approval for the project. TEXAS: Medical glove mfr. is considering the construction of two manufacturing facilities and is currently seeking sites in the KATY and CYPRESS, TX areas. Watch SalesLeads for updates. ALABAMA: Wire mfr. is planning to invest $100 million for the construction of a 270,000 SF manufacturing facility in HARTSELLE, AL. They have recently received approval for the project. Completion is slated for early 2023. OHIO: Home appliance mfr. is planning to invest $65 million for an expansion of their manufacturing facility in OTTAWA, OH. Construction is expected to start in Summer 2022, with completion slated for 2023. INDIANA: Trailer mfr. is planning to invest $50 million for the renovation and equipment upgrades on their manufacturing facility in TERRE HAUTE, IN. They are currently seeking approval for the project. Construction is expected to start in early 2022. They will consolidate part of their operations upon completion in late 2024. NORTH CAROLINA: Shipping pallet mfr. is planning to invest $40 million for the renovation and equipment upgrades on a recently leased 253,000 SF warehouse and manufacturing facility in MOCKSVILLE, NC. Completion is slated for Summer 2022. About SalesLeads, Inc. Since 1959, SalesLeads, based out of Jacksonville, FL has been providing Industrial Project Reports on companies that are planning significant capital investments in their industrial facilities throughout North America. Our professional research team identifies new construction, expansion, relocation, major renovation, equipment upgrades, and plant closing project opportunities so that our clients can focus sales and marketing resources on the target accounts that have an impending need for their products, services, and indirect materials.
Much needed plans for 2022
There is little doubt that 2022 is going to be a handful to deal with. David Baiocchi laid it all out in last month’s issue and every bit of what he said is going to take place in some form in 2022 and even 2023. To make matter worse, from the time David’s article appeared in MHW we have a new highly contagious COVID-19 strain to deal with which could put you back six or nine months, which in turn could offset some of the changes you made to your business to get back on track to a more profitable 2022. Not only is the new Covid strain a problem but when you add in the supply chain issues that continue to plague us there seem to be more roadblocks in front of us than pathways to profitability and cash flow. And just so you know, Dean informed me I had the cover story for January and the topic should cover what dealers will face in 2022 to the best of my ability. I said that would not be a problem. The next day, however, I received a copy of David’s article. Needless to say, I am thinking David covered most of what to expect in 2022, leaving me to follow up where he left off which in my mind is a tough thing to do. So, I did my homework and am taking a shot at projecting what roadblocks you will face in 22 along with ideas on how to turn problems into opportunities. Hopefully, I will provide you with some paths to explore to improve sales, profits, and cash flow. So, let us get going. First of all, let us stop talking about 2019. I keep hearing people say they wish they could get back to their 2019 operating results. Well, FORGET IT! It is not going to happen because too much has changed in your business world that will not permit a return to the past. If you want to understand what I am talking about go back and read David’s article and then tell me how you would use your 2019 business strategy to correct your problems and put you back at 2019 operating results. Not going to happen. Equipment and parts are somewhere on a boat or on a truck (if you are lucky). A recent article written by a 35-year truck driver states that non-union drivers who get paid per load or some other metric will not go to the ports because they wind up losing money on the deal. His conclusion was that this condition will continue for years to come. So do not expect to replenish your new unit inventory any time soon. The labor problem also seems to continue even though there are plenty of jobs available. People want to work from home. People want to avoid coming in contact with the virus. People want more money for what they do. All these factors place you in a tough position. And then we have inflation to deal with, which many of you have not had the pleasure of dealing with the negative impact of inflation. Your inventory and parts cost increase. Your other expenses increase. Payroll increases because employees need to cover the inflationary cost increases. How do you plan for these scenarios and still have adequate capital to stay afloat? That is the question to which every one of you will have a different answer, depending on how much capital you have available, the markets you are in and the customer base you do business with. Quite frankly, you are starting with a clean slate when you plan out 22 because all the variables are nothing like what you faced in the past with fewer solutions and resources available to make meaningful changes. If I were sitting in your office, I would suggest using a zero-base budgeting approach to attempt to zero in on areas where the spend is too high or the returns too low. There is little doubt that technology will be part of this correction even though part of the problem is to figure out which technology to adopt. But no matter what the technology has to provide benefits and support to customers as well as your company. Otherwise, you are wasting your money. To start on a budget, I suggest you make use of the Profit Planning Model found in the annual MHEDA DiSC report. This tool provides methods to determine RETURN ON ASSETS and RETURN ON NET WORTH. The formula covers both your balance sheet and income statement activity, making it easy to spot what activity or investments are causing the ROA or RONW to move to the better or worse. To start with I would not use your 2019 operating results as a starting point for your budgets. I would use that zero-based approach where you build up costs from the bottom up using a method where you eliminate unnecessary costs or excessive costs. But no matter how you look at it the goal is to arrive at a plan that allows you to do more with less and more efficiently with the dollars you spend. If you cannot arrive at this goal, I believe you will find it hard to compete in your markets because a competitor has produced a new strategic plan that allows him/her to put forth more competitive pricing than you can. This competitor will have a good handle on customer needs and how to fill them, be able to notify customers of potential problems, use fewer people to do more work, and market in a way to attract new customers. Let us face it, the cheapest way to reduce cost is to become more productive. Know what your employees are doing, have employees accountable for the work they perform. Find ways to reduce the time to perform tasks. This goes for your employees and the employees of vendors that supply goods and services. Part of this solution may
Acquiring Talent
Happy New Year! I am sure that everyone reading this is trusting that the new year will hold fresh opportunities for us to continue building and refining our engagement with customers. A good way to kick that off is by taking stock of the current economic landscape. The supply chain disruption I spoke about in the last edition is still with us, and it’s expected that shortages of critical manufacturing components will continue deep into the Spring and Summer of 2022. I’ve said before, that the calendar holds no magic. When December gives way to January, annual forecasting efforts are many times driven by hope instead of strategy. In spite of our valiant efforts to “pencil-whip” our obstacles; the same realities blocking our progress on December 31st will, no doubt, still be limiting our progress on January 3rd. There are a lot of factors currently in play that we can do nothing to control. We can’t conquer them; we can only prepare ourselves to work “around” them. One of these obstacles has been looming far longer than the pandemic. Last month I talked about “Job Shock”, and how our inability to hire and retain quality technicians has reached critical levels. With a dearth of new equipment on the lot, our opportunities in CUSTOMER SERVICE will be priority one. Our customers will depend on us to extend the life of the equipment that is tired and worn. These challenges will be impossible to solve without hiring more technicians and putting more vans on the road. It’s difficult however to ramp that up quickly. It’s not necessarily the capital investment (vans, tools, and parts) that is holding us back. Most of the dealers I speak to, have MULTIPLE vans sitting empty on their lot, awaiting new staff. Many dealers could hire 3, 5, even as many as 8 additional technicians without having to invest an additional dollar of capex. Customarily, we have used three venues to locate and acquire technical talent. Competitors: We all know that this is the quickest method to fill a van with a warm body. The strategy is based on the assumption that our dealership is already the “employer of choice” with wages, benefits, and working conditions outpacing competitive employment offerings. This strategy however seldom really provides the quality individuals we were looking for. The fact is…the trainable, self-motivated, and high-caliber technicians in the marketplace already have a sweet deal with their current employer. Most of the hires willing to jump ship and sign on with you, always seem to develop training deficiencies. attendance issues, or behavioral problems that never allow them to really help move the team forward. The reasons are self-evident. This is a competitive industry. You know it…. your competitor knows it. Everyone knows what it takes to retain top talent, and they are already offering it. Automotive and Industrial: Making the shift from automotive or industrial repairs to material handling equipment is not a difficult shift. Yes, there is some training needed to acclimate new automotive techs to working on hydraulics or motive power systems, but the “nuts and bolts” of the job are not usually the limiting factor. The issues inherent with the conversion have more to do with expectations than they do with technical abilities. Most of these candidates come from automotive dealerships where they were guaranteed 40 hours a week, and all repairs are conducted under one roof. They also are certain that they will never be called to work overtime on a weekend or after hours. Training, tools, resources, and facilities in an automobile dealership may also be more robust and modern than in an equipment dealership setting. I am not suggesting that these candidates can’t be successful if they are offered in-shop opportunities. The problem here is that we are looking to fill ROAD. Once that tech gets his third call in three nights to repair units after hours, in the elements, they may not be so willing to see it through. Automotive Trade Schools: Graduates from these institutions have invested heavily in their future and are looking to recoup this investment. These institutions however are geared toward (and many times financed by) automotive OEM direct training programs. Students enter the program for Ford, Chevrolet, Toyota, or Nissan with the assurance that they will be trained and certified to service and repair that OEM’s line of products. This leaves little room for material handling companies to make a competitive argument. Some of these students however enroll in the basic mechanical programs and we should regularly target these graduates with the lure of having their own service vehicle, opportunities for overtime, and a hungry job market in our industry. These three venues aside, my suggestion for bolstering the ranks, is to enlarge the pool of candidates. We can do that by using some tactics that allow us to engage the candidate at an earlier juncture. It will require a longer-term process, and we will have to design and execute “home-grown” training regimens in order to be successful. Most dealers have never considered these options, but with growing market needs, and shrinking talent pools, WE HAVE TO DO SOMETHING DIFFERENT. Military: If you have a military base in your market area, there is always a motor pool. Here technicians repair everything from armored troop carriers to Blackhawk helicopters. Most military motor pools are manned with enlisted ranks who will “term out” after a period of time. Those who do not choose to re-enlist will need employment. The upside is that usually, the skills and knowledge base of these candidates are top quality. They also have personal habits and interpersonal skills honed by a disciplined lifestyle. They generally enjoy the autonomy of working on the road, and many of them are good candidates for leadership in the ensuing years. The downside, especially for those deployed in combat scenarios, is that they can come with some unexpected mental and emotional issues that may require accommodation. Transitioning troops into private life is taken
The 30-second personal commercial—How to write it
When you go to a business meeting or are networking in general, you are on the lookout for contacts and prospects. Your commercial is the ability to provide information to create interest and response from prospects. It is the prelude and the gateway to a sale. How effective is your commercial? Do you even have one? Let’s say you’re out with a customer networking at her trade association meeting, and she introduces you to a prospect. The prospect says “What do you do?” If you’re in the temporary staffing industry and you say, “I’m in the temporary staffing industry,” you should be shot. Your reply should be, “We provide quality emergency and temporary employees for businesses like yours so that when one of your own employees is sick, absent, or on vacation there is no loss of productivity or reduction of service to your customers.” You deliver a line like that and the prospect can’t help but be impressed. Now you have the prospect’s attention. You ask your power question(s) to find out how qualified the prospect is. “How many employees do you have?” You ask, “Do you give them one- or two-week’s vacation?” “How do you ensure that the level of service to your customers isn’t reduced during these vacation times?” Make the prospect think. Want to prepare or revise your commercial? Here’s how: Your objective is to have 1,530 seconds of information that states who you are, who your company is, creatively tells what you do, shows how you can help others, and why the prospect should act now. After you creatively say what you do, you ask a power question or series of questions that make the prospect think and respond in a way that gives you needed information. This information allows you to formulate an impact response to show how you can help, and lets you know how qualified the prospect may be. The questions must be open-ended. (A question where the answer makes the prospect say more than yes or no.) The power question is the most critical part of the process because it sets up your impact response. When formulating the power questions for your commercial, ask yourself these five questions… What information do I want to get as a result of asking this question? Can I tell how qualified my prospect is as a result of the question? Does it take more than one question to find out the information I need? Do my questions make the prospect think? Can I ask a question that separates me from my competitor? Here are some lead-ins to power questions that will expose areas of need: What do you look for… What have you found… How do you propose… What has been your experience… How have you successfully used… How do you determine… Why is that a deciding factor… What makes you choose… What do you like about it… What is one thing you would improve about… What would you change about… (do not say “what don’t you like about”) Are there other factors… What does your competitor do about… How do your customers react to… How are you currently… What are you doing to keep… How often do you contact… What are you doing to ensure… You should have a list of 25 power questions that make the prospect think and give you the information you need to strike. Your commercial is the ability to provide information to create interest and response from people you network with. Here is a personal commercial example… Name…Hi, (hey) my name is Richard Herd. Company Name…My company is (or I’m the president of) Continental Advertising. Creatively Say What You Do…We impact your image, create sales, and ensure repeat business by providing innovative advertising specialties that keep your name in front of your customers and prospects. Insert your power question…How are you currently using ad specialties? (Variations: What are you doing to keep your name in front of your customers every day? How often do you contact your present customers? What are you doing to ensure your name is in front of your customers more than your competitors?) How You Help…(May be modified based on answers to power questions). I think we can help you. We have creative brainstorming sessions with our clients where we bring together a small team of our people and yours. We place various items on the table that relate to your business and the customers you serve. This process creates a dialog that always leads to innovative products that compliment your marketing plan and impacts your customer’s image of you. Not only is it productive, but it’s also fun. Why the Prospect Should Act Now…Would you like to schedule a brainstorming session, or have lunch first and preview a few items to get a better feel for what I mean? Use this example to help you write your own commercial. After you write it, rehearse it. Then go try it out and adjust it for the real world. Then really practice it (More than 25 times in real situations) until you own it. 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.
Safety professionals turn to ASSP for knowledge
In addition to being a resource for occupational safety and health conferences, industry standards, education courses, and networking opportunities, the American Society of Safety Professionals (ASSP) is the place to go for books and technical publications that cover every facet of the workplace safety. And now is when safety professionals worldwide can find the best deal on every title to help them expand their knowledge, advance their careers and improve safety at work. Through Jan. 15, safety professionals can use the promo code 21BOOKS20 to receive a 20 percent discount on all print and digital publications on the ASSP website. The Society’s collection of more than 100 books and technical publications enables workplace safety and health professionals to learn about industry best practices and prepare for essential certification exams. ASSP’s most popular titles include “The Safety Professionals Handbook, Second Edition,” which offers comprehensive information from many experienced safety professionals. Essential topics include regulatory guidance, science and engineering, cost analysis and budgeting, benchmarking and performance criteria, and hazardous materials handling. Other widely read books in ASSP’s collection focus on incident investigation and prevention, construction, fall protection, safety management systems, worker well-being, and business and leadership skills. ASSP’s newest titles include “Introduction to Fall Protection, Fifth Edition,” recently updated by expert J. Nigel Ellis. The book reflects the latest standards and innovations for eliminating falls on the job. It presents real-world case studies and a model fall protection program with extensive safety examples. Another new title is “Assessing and Managing Risk: An ERM Perspective,” which provides practical guidance in the fundamentals of risk assessment and management as described in the ISO 31000 Risk Management standard. The book by Bruce Lyon and Georgi Popov includes access to online resources such as interactive exercises, tools, and videos. ASSP’s limited-time 20 percent book discount excludes print/digital bundles and standard/book bundles. Browse the Society’s entire collection of safety books and technical publications by visiting the ASSP store.
American Logistics Aid Network (ALAN) mobilizes in wake of recent tornadoes
As relief efforts begin for this weekend’s devastating tornadoes, the American Logistics Aid Network (ALAN) is preparing to work overtime – and asking members of the logistics community to be ready to help. “The last few days have been filled with tragic reports from areas affected by at least 30 tornadoes, including a long track tornado that crossed four states. We mourn alongside those who’ve lost friends, family, and co-workers to these events,” said Kathy Fulton, ALAN’s Executive Director. “In response, ALAN has activated to support these communities via our network of non-profit partners.” ALAN has an active Disaster Micro-site where it features a list of its latest open requests, and it will be updating this site frequently as requests for post-tornado assistance arrive. “That hasn’t happened yet, because people are still actively engaged in life-saving search and rescue efforts. But once humanitarian organizations begin assessing what is needed in the affected areas, they’ll be requesting various forms of logistics assistance from ALAN, including transportation, warehousing, and material handling,” Fulton said. “In light of that, we’re asking people to connect with us frequently over the next few days and weeks, because that’s when the real need for our industry’s support will begin.” Fulton added that the initial requests for ALAN’s assistance should start coming in within the next 48 to 72 hours. In the interim, ALAN is coordinating and communicating with many of the non-profit groups that will be providing first response and relief efforts – and asking businesses NOT to self-deploy or organize collection drives. “We have already begun hearing about collection drives and ‘trucks driving around with no place to deliver their donations.’ Although the intention behind these efforts is good, they often create more challenges than they solve, including getting in the way of rescue efforts,” Fulton said. “So please don’t add to an already difficult situation. If you truly wish to help, send funds. Cash donations allow non-profits to buy what they need, when and where they need it, and that will help survivors faster.” (For more on that, see the attached list of post-tornado advice.) “Now, as always, we wish that we didn’t have to send out notifications like this, because it means there’s another community that’s suffering,” said Fulton. “However we’re grateful to know that so many members of the logistics industry are anxious to help, and we’re thankful in advance for everything they’ll be doing to help us save – and improve – the lives of disaster survivors.” ALAN’s Helpful Post-Tornado Relief Do’s And Don’ts Do make sure your employees are safe – and supported If any of your facilities were located in any of these storms paths be sure to check in with your employees to ensure they are safe and sound. And if they have been affected, make helping them and their families your first priority, because even though many government and non-profits will be stepping in to provide relief, few things are more meaningful than knowing that the people we work with (and for) have our backs. Don’t forget that we’re here for you Have any of your operations been affected by the tornados? Do you need any specific information or insights – and if so, what kind? Drop us an e-mail at ops@alanaid.org. We’ll do our best to get you an answer or to put you in touch with someone who can. Do let us know if you might be willing to help If you have warehouse space, trucks, equipment, or expertise to share, go ahead and offer it now. (And please know that we understand you’re making an offer, not a guaranteed commitment to provide services. It just lets us know that you’re okay with us reaching out and at least asking if you might be able to assist ) The more advanced information we have about available resources, the more quickly and effectively we’ll be able to fulfill requests for assistance as they come in. Don’t assume you can’t be of help just because your operations are nowhere where a tornado hit Often the donated materials that urgently need to get to disaster sites may be located much farther away and require more logistics support than you might imagine. As a result, the seemingly random or remote location, service, or piece of equipment you’re offering may be just the ticket. Do check ALAN’s website and Disaster Micro-Site often over the next few weeks We’ll be updating it frequently as conditions change, including posting specific relief requests and sharing any important infrastructure updates. Don’t host a collection drive for products Although the intention behind these drives is good, they often create more challenges than they solve – including adding more products to a supply chain that is already under tremendous strain. At a time when transportation capacity to disaster-impacted markets is so overloaded, the last thing we need to do is choke it even more. In a similar vein, don’t self-deploy. Often having extra, unsolicited “help” while search and rescue efforts are taking place can impede critical first response efforts. Do consider helping in other ways instead If you’re looking for a tangible way to engage your employees in hurricane relief, pick a humanitarian organization and collect money for it instead. Such donations will be much more useful and efficient, especially right now. And unlike many post-disaster product donations (which often end up in landfills), they will not go to waste.
Past 90 days sees the largest streak in Manufacturing Technology Orders in over 23 years
New orders of manufacturing technology totaled $571.5 million in October 2021, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology. October orders declined 3.6% from September 2021 but increased by 50.2% over October 2020. Total orders in 2021 nearly reached $4.7 billion, a 53% increase over 2020. The three consecutive months ending in October totaled $1.7 billion, the largest three-month total since April 1998. “The manufacturing technology market is flourishing in the current economic environment. Unfortunately, the impact on the bottom line isn’t as significant,” said Douglas K. Woods, president of AMT. “Our members are caught between higher material, component, and transportation costs and a customer base that is resisting price increases. This is an issue that will only grow worse if Federal Reserve actions this winter lead to higher interest rates. I believe it would be counterproductive to tighten monetary policies and raise the cost of expanding capacity at a time when our nation is experiencing an unparalleled supply chain disruption.” The U.S. manufacturing technology market growth rate of 53% over 2020 levels is outstanding. It is particularly exciting because the critical component producers and industries hit hard by offshoring in the 1990s are driving this expansion through dramatic investments to expand U.S.-based capacity. These industries increased capital expenditure investment by multiples of previous years, far exceeding October’s market mean of 53%. The current level of manufacturing technology orders signals a start of manufacturers reinvesting in American-based production and strengthening of U.S. manufacturers’ supply chains.
ALAN asks for your help for those affected by this weekends tornadoes
By now you’ve probably seen the drone footage of the terrible destruction in Mayfield, KY, or heard reports of the deaths at an Amazon warehouse in Edwardsville, IL. The last two days have been filled with tragic reports from areas affected by at least 30 tornadoes, including a long-track tornado that crossed four states. The American Logistics Aid Network or ALAN mourns alongside those who’ve lost friends, family, and co-workers to these events. In response, ALAN has activated to support these communities via our network of non-profit partners. As the non-profits assess what is needed in the affected areas, they expect them to request various forms of logistics assistance from ALAN, including transportation, warehousing, and material handling. So please, stay in touch with us often over the next few days and weeks. Your supply chain help may be urgently needed. Meanwhile, here are a few quick updates. What ALAN Is Doing For Tornado Response ALAN is currently coordinating with our non-profit partners via daily conference calls that are being hosted by state VOADs (Voluntary Organizations Active In Disaster). During these calls, we’re getting key updates about which humanitarian services are most needed – and what kinds of specific challenges that first responders, rescuers, and area non-profits are facing. We are sharing information from those calls with our partners in the non-profit, government, and business community so that they, too, can be working with the latest, most accurate information. ALAN has updated the “Tornado/Hurricane Information” portion of our Disaster Micro-site to include some resources for businesses or individuals who have been affected by these tornadoes – and who might be in need of assistance. They have also included them at the end of this e-mail. Feel free to pass these links along to anyone you think might find them useful. And of course, ALAN is preparing to fill logistics requests. There are no active requests for our services yet, which is not unusual because things are still very much in the search and rescue phase and most non-profits are still assessing what’s most needed. However, they expect that situation to change rapidly in the next 48–72 hours – which is where you come in. How You Can Help If you have warehouse space, trucks, equipment, or supplies you’d be willing to donate to this cause, go ahead and offer it now. The more advanced information they have about available resources, the more quickly ALAN will be able to fulfill requests for assistance and get survivors the help they need. In a similar vein, make plans to visit the “Current Needs” section of our Disaster Micro-site often in the weeks ahead. That’s where ALAN will be posting any unfilled needs they have, and they are grateful to have you help them fill one or more of them. Just as important, please make a donation to support our response activities. ALAN relies on your financial support. And your gift allows them to provide the logistics assistance that is so critical to helping these communities recover. What Not To Do On a final note please don’t self-deploy. ALAN has already begun hearing about collection drives and “trucks driving around with no place to deliver their donations.” Although the intention behind these efforts is good, they often create more challenges than they solve, including getting in the way of rescue efforts. So please don’t add to an already difficult situation. If you truly wish to help, send funds. Cash donations allow non-profits to buy what they need, when and where they need it, and that will help survivors faster. RESOURCES TO ASSIST SURVIVORS OF DECEMBER 11, 2021 TORNADOES Survivors who need assistance cleaning their homes – Crisis Cleanup If you are trying to locate family or friends in affected areas, visit Red Cross Safe and Well
Exceptional Leaders have clarity: How to SORT your thoughts
Most leaders believe they make good decisions. They believe they already have clarity about their situation. Protecting the status quo is the norm. Then something significant happens: their financials show losses, revenues stall, clients leave, good employees take better jobs elsewhere. All executives and board of directors share a desire to resolve the situation when they are in the middle of a complicated or difficult situation. But exceptional leaders are unique. They demonstrate a willingness to gain real clarity about what is going on inside and outside their organization. They want a depth of information to understand the truth about what is right and wrong with the strategies they are implementing. They want to identify the factors impacting their ability to be successful. They take control by looking for ways to innovate their organizations to solve their problems, to meet the evolving needs of their customers, and improve their market position. They take the time to SORT their thoughts to gain the clarity they need for success. Skewed Viewpoint Most leaders believe they are already doing the right things. They believe their products and services already meet the valuable needs of their customers. What they don’t realize is their view has been skewed by changes that have gone on around them. New competitors to the market may have significantly altered their historical market position, but they were so certain they were doing a good job they do not realize how much their market has changed. Exceptional leaders understand staying close to your market is crucial to long-term success. Markets change over time. They want to understand how their market is changing and why. They determine what they need to do to meet evolving market needs. They want to understand what they need to do to compete effectively with new competitors to retain or enhance their market position. They are constantly assessing customer expectations and if their needs may be shifting beyond what they now offer. Their focus is on the future and moving forward with true success. They move on. Overcoming Obstacles Sometimes leaders freeze when confronted with the need to take real action. They are so paralyzed by the fear of making a mistake that they make no decision at all. They wait until the situation is dire and then react by putting out the inconsequential fires. By focusing on the wrong things, they ignore the main fire that rages all around them. Their inability to address the real issues before there is a complete crisis result in chaos. They blame others. Their people don’t trust them. Their boards lose confidence. Leaders without clarity and they can do great harm to their organizations. Exceptional leaders expect their situations will change and they have the discipline to continually look forward and assess what changes may affect them. They are always on the lookout for ways to innovate and revitalize their products, services, and organizations. They look for new ways to grow, evolve, and succeed. They understand periodic strategic corrections are a necessity to overall long-term success. Right Information Most leaders believe they already have enough information. They apply the same set of assumptions to their decision-making that have historically worked for them. They use the same data sources they have always used. They rely on the opinions of underperforming staff to explain the challenges they face rather than engage in the proper due diligence to find out the underlying causes for their organizational difficulties. They fail to understand the significance of how changes in external market forces can impact consumer expectations or their long-term survival. Exceptional leaders look for more than a superficial answer. They don’t stop looking at the first 10 answers that pull up in their Google search. They look for the pearls of wisdom buried deep in the data and they are not afraid to find advisors who will help them find the truth and interpret it. Getting the right information for real decision-making is hard work. They know that it requires a significant effort to re-consider every current assumption and look for changes in the trends and patterns of the data. Doing that without a biased view is even harder. They are willing to invest the time and money to bring in a fresh and different point of view to discover the truth. The Truth Most leaders believe they already have a complete understanding of what is going on. Yet the fundamental reason for a lack of clarity at the top is usually because no one tells them the whole truth. Employees tell their leaders what they think they “want” to hear. People are penalized for telling the truth. Cultural paradigms cause employees to withhold candid feedback because they don’t want to displease another with bad news. Worse, some leaders are not able to listen to a divergent perspective. As a result, these leaders lose control of the situation and lose their ability to implement corrective actions before things go completely haywire. Exceptional leaders understand clarity begins with a real desire to see the truth of the situation. Truth gives you information. Information gives you insight. Insight gives you the clarity to set the right priorities and focus your people on the most critical activities designed to create success. These leaders find it refreshing to have someone around who will tell them what they don’t necessarily want to hear, but that they already suspect is true. They use objective advisors to get to the truth and to help them work through the issues to create real and lasting improvements that move their organizational success forward. Final Thoughts Getting clarity can be frightening. Clarity about your problems and challenges can scare your board and staff. It can be humbling to realize that critical strategies you previously implemented are now the cause of the problems now facing your organization. Yet when you have clarity, it becomes much easier to prioritize what needs to be done to resolve the issue or improve it. About the Author:
Sparking women’s interests in transportation careers
MTI researchers develop and test college-level educational intervention to attract more young women to transportation Only approximately 14% of the transportation workforce are women. The pressing need for a workforce with diverse skills and experiences, especially given the critical role transportation innovation will play in combating society’s biggest challenge—climate change. New Mineta Transportation Institute (MTI) research, Promoting Interest in Transportation Careers Among Young Women, developed and tested a college-level educational intervention that uses pro-environmental framing and exposure to female transportation role models to help attract more young women to the industry. The most notable findings of the research include: Female students who completed the climate change course that included the one-class transportation module were more open to working in a transportation career by the end of the semester (17.5% increase) compared to the control group. All students who were exposed to the transportation module better understood (39.7% increase) that the transportation industry can provide a green and sustainable career. “Students visited the Careers for Change website (www.careersforchange.net) to watch videos of three of the featured transportation professionals and view the articles accompanying each professional. We designed the website, which includes 5–8 minute interviews with transportation professionals like Dr. Beverly Scott and Dr. Hilary Nixon to highlight the diverse career paths that align with green and sustainable careers,” explain the authors. The components of the learning module—including pro-environmental framing of the transportation industry and video lectures from women transportation professionals—developed and implemented in this research could easily be adopted by instructors of existing environmentally-themed courses. Attracting students of all genders to the transportation industry will create a more robust, diverse workforce ready to overcome any challenge in the years to come.
New Analysis from the Propane Council Examines CARB Ban on Internal Combustion Engine Forklifts
Responding to California’s mandate to ban internal combustion engine forklifts in the near future, the Propane Education & Research Council has released a new environmental comparative analysis comparing greenhouse gas and nitrogen oxide emissions between propane and electric forklifts. Research reveals that propane forklifts provide a pathway to decarbonization today. Emissions from propane forklifts provide a smaller carbon footprint than electric forklifts under several conditions. “Electrification is often touted as the only solution to full decarbonization, overlooking how electricity is generated, stored, transmitted, and consumed,” said author Dr. Gokul Vishwanathan, Director of Research and Sustainability at PERC. “A single-energy mandate isn’t sufficient or realistic and the truth is, propane and renewable propane can lead to immediate decarbonization of this sector.” The comparative analysis presents the following 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. Approximately 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. Download PERC’s new analysis or visit Propane.com/Research-Development to learn more. Electrification as a means of decarbonization sounds attractive but that is not the reality without consideration of complete lifecycle emissions. Regulatory agencies should conduct detailed emissions lifecycle analyses on technologies before considering a ban on specific technologies. Achieving decarbonization and reducing criteria pollutants is possible as renewable fuels and high-efficiency engine technologies continue to innovate. As good stewards of environmental justice, we need to ensure that we are not displacing the problem but are indeed solving a problem for the greater good of humanity and all life on Earth. Reach out to the National Propane Gas Association or your state propane gas association to support ongoing efforts and build awareness about the benefits of propane forklifts.
Invixium Integrates Biometric Solutions with AEOS by Nedap
Invixium Integrates Touchless Face Recognition and Multi-Factor Biometric Solutions with AEOS Access Control Invixium, a manufacturer of innovative touchless biometrics, has integrated its portfolio of modern solutions with AEOS by Nedap, a provider of access control solutions. This integration between AEOS and IXM WEB, Invixium’s enterprise-grade software solution, streamlines the process of setting up and using Invixium biometric systems with AEOS. AEOS users can now seamlessly deploy Invixium touchless biometrics, such as face recognition via IXM TITAN, as well as the rest of Invixium’s world-class biometric portfolio. This integration is powered by IXM Link, a licensed software feature for IXM WEB that allows for one- or two-way database-to-database synchronization between IXM WEB and AEOS. Database synchronization ensures easy setup, installation, and use of Invixium biometric solutions for AEOS users. Administrators can effortlessly enroll biometric data to cardholders (securely stored in IXM WEB) which are continuously synchronized with AEOS. In addition, Device Integration Protocol (DIP) has been implemented to allow AEOS to control the verification process. “Integrating leading security solutions, such as touchless face recognition, with AEOS has enabled Nedap to remain at the forefront of COVID-19 response,” said Susanne Adriaanse, Managing Director at Nedap Security Management. “Invixium’s innovative technologies like face recognition, mask detection, and touchless thermal screening make them a partner that closely aligns with our strategy to provide a wide range of high-level solutions to modern security problems.” “Expanding our reach through technology integrations is vital to our strategy,” said Shiraz Kapada, CEO & President at Invixium. “This integration simplifies installation and management while reducing costs for businesses that are looking for unified end-to-end security systems. We look forward to addressing the needs of AEOS users with our unique solutions.”
EP 232: Peter C. Lewis and What’s Next
On this episode, I was joined by Peter C. Lewis of Wharton Equity Partners. Peter is the Chairman and President at Wharton Equity Partners and currently started the firm in 1987 where they now focus on investing in industrial real estate as well as other companies that impact that space. We discuss how Peter pivoted from fully in on residential investments to fully in on industrial investments, their recent investment in micro-fulfillment company Fabric, and also his thoughts on where the industry is going. Key Takeaways One of the craziest and most impactful parts of my conversation with Peter was how he pivoted into the industrial space. He started his firm in 1987 and was focused on residential real estate investments but then he started to notice the pace at which e-commerce was growing. In fact, he said the pivotal moment was when he saw his 90-year-old father was starting to order things online. Typically people would get dip their toe in at first but Peter C. Lewis dove right in and unloaded all of his residential investments ($500 million worth) to move everything into industrial real estate. He has built up several large warehouses over the years and has now also begun investing in technology companies that support warehousing and logistics initiatives. Their most recent investment was in Fabric which is a micro-fulfillment company that focuses on taking small spaces and using technology to help them become fulfillment powerhouses. Peter had been watching them for some time as he believes that micro-fulfillment is the future as consumers are wanting their products faster which means the product needs to be closer to them in order to meet quick delivery times. He was also blown away when he saw one of their operations underneath a mall in Israel on a trip in the area. With micro-fulfillment on the rise, we will be sure to see more of Fabric and other companies like them growing rapidly. Throughout the pandemic, I have been curious to see if the vacant retail locations would become more fulfillment spaces than true brick and mortar locations. Peter is the perfect one to ask since he deals in the real estate side of things. He believes that brick and mortar will never completely go away but what we will continue to see is the amount of inventory they hold continue to decrease. The idea is that these will become more of a showroom type of location so that consumers can still feel the product and understand it in person if they need to but it will be fulfilled to them from a different location whether it is a regional warehouse or micro-fulfillment location. Very interesting forward-looking insights from Peter in this episode. Listen to the episode below and leave a comment with your thoughts. The New Warehouse Podcast EP 232: Peter C. Lewis and What’s Next
Getting your team to think and act more strategically
Organizational leaders often talk about strategy, but when it comes down to it, strategic thinking is rarely done. Leaders are often pulled back into tactical thinking due to a variety of factors, from putting out fires to having undue pressure to execute. These pulls create a culture of reaction. There’s no time to actually develop a strategy. It’s too long, complicated, and the outcome is unclear. Why spend time on theoretical, future stuff when we have so much to get done today? Strategy isn’t just an activity, but a way of thinking. It requires practice, focus, and time. It’s not a thing that you can get done in a couple of weeks with a few leadership roundtable meetings. It’s even harder when your team has never really developed a strategy before or has never been thinking strategically for the past few decades. No special process or technique will magically produce a strategy. You need to first start shifting internal mindsets to think differently. It’s actually an incredibly common challenge. CEOs that realize the organization is adrift and getting their lunch slowly eaten bite-by-bite by the competition. They declare and establish a major initiative to craft a strategy that will turn things around. They make promises to their boards that their dedicated, senior-level leaders will develop a game-changing approach. After multiple weeks of time and effort wasted in meetings and discussions, there’s nothing to show for it, other than a few fluffy high-level diagrams. Nothing revolutionary. Nothing game-changing. Why? Because their senior-level leaders did not have the right mindsets. They bop back and forth from daily tactics to a bi-weekly strategy session, where they’ve had little time to prepare, and are mentally overwhelmed with the tactical activities they aren’t addressing by sitting in yet another meeting. CEOs need a new approach to have their vision become reality. It begins with mindsets. While the reality is these leaders can’t simply unplug from the day-to-day, they can be exposed to what strategic thinking looks like. This starts with shifting thinking from internal to external before they dive into actually creating a strategy. Shifting to a strategic mindset starts with sparking depth, exploration, strategic dialogue, and transformative thinking. It demands that leaders flex a different set of muscles than they are used to. There are three steps to enabling this shift: 1. Taking the customers’ perspective – While the past can offer critical lessons, a strategic mindset is open to choice and possibility. It is unimpeded by the limitations of present knowledge. Making this mental shift begins with putting yourself in the mind of the customer. Not just what they think about your company, your offerings, or your products – but also their lives – in the context of your business. This takes us to step two. 2. Understanding their context – Outside-in thinkers understand the customers’ contextual environment. This requires understanding their ‘why’ – the contextual catalysts (emotional, functional, social) that bring them to a need. For example, a customer seeking a mortgage of course is looking to buy a house, but why? It may be they got a promotion, just had a baby, or have an ill family member they need to take in. This context is critical, as it helps you consider the bigger picture and new opportunities to serve customers in a new way. This takes us to step three. 3. Challenging conventional wisdom – Long-established, familiar ideas breed predictability and rigidity. They are the enemy of innovation. By having an understanding of the customer and their contextual environment, new perspectives can be drawn. These perspectives will inherently challenge internally-focused, conventional wisdom because they draw from a new outlook. A new outlook that takes into consideration areas of customer need that were never considered in the old, internal mindset, and which will challenge status-quo thinking. Before a new, revolutionary strategy can be crafted, your team must first build a strategic mindset. While the concept is easily understood, cultivating one is the key to creating that elusive, game-changing strategy you seek. About the Author Andrea Belk Olson is a speaker, author, applied 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, and more. Andrea is a sought-after keynote speaker at conferences and corporate events throughout the world. She is a visiting lecturer and Lead Coach of the Startup Business Incubator at the University of Iowa’s Tippie College of Business, a TEDx presenter, and TEDx speaker coach. She is also a mentor at the University of Iowa Venture School. More information is also available on www.pragmadik.com and www.andreabelkolson.com.
California Ports ‘Container Dwell Fee’ on hold until November 29
San Pedro Bay ports cite continued progress on marine terminals Following meetings today with U.S. Port Envoy John D. Porcari and industry stakeholders, the Port of Long Beach and the Port of Los Angeles announced a further postponement of the “Container Dwell Fee.” With continued progress moving containers off marine terminals, the fee will not be considered before Nov. 29. Since the fee was announced on Oct. 25, the two ports have seen a decline of 33% combined in aging cargo on the docks. The executive directors of both ports are satisfied with the progress thus far and will reassess fee implementation after another week of monitoring data. Under the temporary policy approved Oct. 29 by the Harbor Commissions of both ports, ocean carriers can be charged for each import container that falls into one of two categories: In the case of containers scheduled to move by truck, ocean carriers could be charged for every container dwelling nine days or more. For containers moving by rail, ocean carriers could be charged if a container has dwelled for six days or more. The ports plan to charge ocean carriers in these two categories $100 per container, increasing in $100 increments per container per day until the container leaves the terminal. Before the pandemic-induced import surge began in mid-2020, on average, containers for local delivery remained on container terminals under four days, while containers destined for trains dwelled less than two days. Any fees collected from dwelling cargo will be reinvested for programs designed to enhance efficiency, accelerate cargo velocity and address congestion impacts. The policy was developed in coordination with the Biden-Harris Supply Chain Disruptions Task Force, U.S. Department of Transportation, and multiple supply chain stakeholders.
Will the Real Decision-Maker please stand up
The prospect tells you, “I only need one more approval and the order is yours.” For joy, for joy the order is mine! Eh, eh, eh don’t celebrate too soon. The one last person needed to approve is the real decision-maker. The boss. The guy you were supposed to be talking to in the first place. The one person who can say “no,” and there’s no possibility of reversing it. Rut-ro. Throw some water on yourself, pal. This sale hangs by a thread and what are you doing about it? Going home and bragging “it’s in the bag,” or saying over and over, “I hope I get it; I hope I get it”? Neither will work. Here’s what to do: The words “I only need one more approval and the order is yours” must trigger your response to the prospect, “Great, when do we all meet?” Get the prospect to agree to let you attend the final decision meeting. If you’re not present when the last decision is made, odds are you will lose the final battle of the sales war without being able to fire one bullet. Try this: (In a non-salesy, friendly way), say to the prospect, “I’m an expert at (what you do), and you’re an expert at (what they do). Surely as you discuss our service, questions about productivity and profitability will arise. I’m sure you agree that the right information needs to be presented so that the most intelligent decision can be made, true? (Get commitment) And questions might arise about our service, wouldn’t you agree? I’d like to be there to answer questions about my expertise so you can make a decision that’s in the best interest of your business.” (If this fails, try adding on the phrase “Pleeeeaaase, I’ll be your best friend.”) If the prospect (customer) agrees to the meeting, he or she considers you a resource, a partner. They trust you. If they don’t agree to let you in the meeting, they just consider you a salesperson. When others need to “final approve” the deal, besides learning to qualify the buyer better, you must take these five action steps or the sale is in jeopardy… Get the prospect’s personal approval.“Mr. Prospect, if it was just you, and you didn’t need to confer with anyone else, would you buy?” (The prospect will almost always say yes). Then ask, “Does this mean you’ll recommend our service to the others?” Get the prospect to endorse you and your service to the others, but don’t let him (or anyone) make your pitch for you. Get on the prospect’s team. Begin to talk in terms of “we,” “us,” and “the team.” By getting on the prospect’s team, you can get the prospect on your side of the sale. Arrange a meeting with all deciders. Do it any (ethical) way you have to. Know the prime decider in advance. “Tell me a little bit about the others.” (Write down every characteristic). Try to get the personality traits of the other deciders. Make your entire presentation again. You only have to do this if you want to make the sale. Otherwise, just leave it to the prospect. He thinks he can handle it on his own and will try his best to convince you of that. If you think you can get around these five steps, think again. (It’s obvious you’re looking for shortcuts or you would have properly qualified the buyer in the first place.) Here are two ounces of prevention (for next time): Qualify the decision-maker as the “only” by asking a seemingly innocent question at the beginning of your presentation “Is there anyone else you work with (confer with, bounce things off of) on decisions (situations) like this?” The object is to find out if anyone else is involved in the decision BEFORE you make your presentation. Prevent the situation from occurring by saying in your initial presentation: “If you’re interested in our __, when we’re finished, would it be possible to meet the CEO and chat about it?” If you make the mistake of letting your prospect become a salesperson on your behalf (goes to the boss or group instead of you), you will lose. Most every time. 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.
Transitory my _ _ _!
Well, let’s start by saying that cryptocurrencies are here to stay and somewhere, somehow your company will be called upon to complete a transaction using crypto. Never thought it would happen this fast but with the continued inflation talk one way to protect your buying power is to use a product that holds its value no matter how much the value of the dollar decreases. What led me to this conclusion? Basically, the investment newsletters I receive recently all had Crypto type investments to consider. In addition, my latest issue of Forbes has a young man on the cover (29 years old) who started a company called FTX, which is a crypto exchange where traders can buy and sell digital assets such as Bitcoin and other cryptocurrencies. FTZ handles about 10% of the $3.4 T (that is Trillion) market of futures and options trades crypto traders use each month. Big numbers! Consequently, this young man is worth $26 B as of this date. If crypto can generate that kind of value for a service provider these crypto companies are surely becoming an acceptable means of transferring value. Then I saw where contractors are using Crypto to purchase materials as well as receive Crypto as payment for services rendered. A masonry contractor in fact. If a masonry contractor uses this process, I suspect many other contractors will jump on the bandwagon. And, of course, we assume the value of the Crypto will increase in value as the value of the dollar falls as a result of another trillion dollars added to our money supply. Interesting, especially for those of you doing business with offshore vendors or customers. Probably worth the time to investigate further. Next on my list for this month is the “transitory” talk regarding inflation, general price increases, and how long the inflation levels (some say 5-7%) will hold until they return to a more normal 2%. Everything I read and hear about tells me the supply chain issue will remain for another two years. And because of shortages every one of you will experience cost pressures which you can hopefully pass on to the customers. And then they speculate that once the demand/ supply issue reverses we may even experience a recession. What fun owning a company that buys offshore products, has products that use the major industrial materials that are already at high price levels, has a need for trained personnel to service customers, and has to carry substantial inventories which are financed by bank debt where interest rates are sure to increase as means to curb inflation. If these issues were something you could reasonably plan for you are in a position to control whatever they throw at you. But the issues we face today are not “normal” and require closely managed companies to stay ahead of the game. To see what may happen to your financials under these conditions I prepared a simple balance sheet and income statement to determine how inflation will impact your financial stability. To get going I calculated the inflation impact for 10 years using 2% per year and also 5% pre year. After 10 years at 2%, the $1,000 current cost would increase to $1,200. Not bad. Something you can handle. But at 5% the $1000 cost becomes $1,550 (a 55% increase) that will necessitate a much higher degree of financial management. Would be great if you could get a dealer projection model where you could use all the variables and estimate profits and the balance sheet impact. The profit planning model would do for a start as long as you gross up the figures used to calculate ratios. The model I am referring to appears in the annual MHEDA Disc Report. The problem going forward relates to your ability to pass on increased costs to customers have the service capability to maintain your normal above-average performance, turn your inventory levels and still make an adequate profit to support this new business structure. My concern is the Balance Sheet. The cost of every non-cash asset category will increase not because you are buying more, but because they cost more per unit. Consequently, the liabilities will mirror what happened on the asset side and in addition incur expected interest rate hikes that will eat up cash. In the end, I see both the cash balance and the equity account not moving much even if sales increase. Remember the old saying ….and it is true that FOR EVERY DOLLAR OF SALES THERE IS AN ADDITIONAL CAPITAL REQUIREMENT. I remember years ago when I did a presentation titled HOW TO SELL YOURSELF INTO BANKRUPTCY, demonstrating how additional sales require more cash to cover the time you have to pay for items sold versus the time you collect from the customer. In short, you could have a great sales increase and run out of money, which is close to what I see if here if a substantial inflation rate sticks. Ways to mitigate this capital shortfall is more use of technology to improve productivity which will decrease the cost of doing business. Another is to manage inventory levels, which includes refurbing used units or rental fleet units to sell, which probably would be seen as beneficial since customers are in the same boat as you are. Another is to adapt to electrical units. Another is to clean up the rental fleet and used equipment inventory and covert as much as you can into cash. All of which assists with the “gap” referred to above. Stay on top of your game and be prepared no matter what the economy throws at you. About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993. E-mail editorial@mhwmag.com to contact Garry.
163 new Industrial Manufacturing Planned Industrial Project Reports – October 2021 Recap
SalesLeads has announced the October 2021 results for the newly planned capital project spending report for the Industrial Manufacturing industry. The Firm tracks North American planned industrial capital project activity; including facility expansions, new plant construction, and significant equipment modernization projects. Research confirms 163 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 – 148 New Projects Distribution and Industrial Warehouse – 53 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 41 New Projects Expansion – 61 New Projects Renovations/Equipment Upgrades – 72 New Projects Plant Closings – 13 New Projects Industrial Manufacturing – By Project Location (Top 10 States) Ontario – 10 Indiana – 10 Texas – 9 Ohio – 8 Michigan – 8 North Carolina – 8 Pennsylvania – 7 New York – 7 South Carolina – 6 Illinois – 6 Largest Planned Project During the month of October, 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 Ford Motor Company, which is planning to invest $5.8 billion for the construction of two EV automotive and battery manufacturing facilities in GLENDALE, KY. They are currently seeking approval for the project. Completion is slated for 2025 and 2026. Top 10 Tracked Industrial Manufacturing Projects ONTARIO: Automotive mfr. is planning to invest $1.5 billion for the renovation and equipment upgrades on their manufacturing facility in WINDSOR, ON. They are currently seeking approval for the project. KENTUCKY: Home appliance mfr. is planning to invest $450 million for the expansion, renovation, and equipment upgrades on their manufacturing facility in LOUISVILLE, KY. They have recently received approval for the project. FLORIDA: Satellite mfr. is planning to invest $300 million for the construction of a 660,000 s.f. manufacturing facility in CAPE CANAVERAL, FL. Construction is expected to start in Summer 2022. INDIANA: Automotive mfr. is planning to invest $230 million for the renovation and equipment upgrades on their three manufacturing facilities in KOKOMO, IN. They have recently received approval for the project. TEXAS: Metal products mfr. and distributor is planning to invest $200 million for an expansion of their manufacturing facility in NASH, TX. They are currently seeking approval for the project. NEW YORK: Aluminum products mfr. is planning to invest $130 million for expansion and equipment upgrades on their manufacturing facility in OSWEGO, NY. Construction is expected to start in Spring 2022, with completion slated for 2024. TENNESSEE: Automotive mfr. is planning for the renovation and equipment upgrades on their manufacturing facility at 983 Nissan Dr. in SMYRNA, TN. They are currently seeking approval for the project. OHIO: A clinical research firm is considering investing $100 million for the construction of a 40,000 s.f. manufacturing facility and currently seeking a site in the CINCINNATI, OH area. NORTH CAROLINA: Flooring products mfr. is planning to invest $87 million for an expansion of their manufacturing facility in THOMASVILLE, NC. They have recently received approval for the project. MISSOURI: Medical device mfr. is planning to invest $83 million for a 58,000 s.f. expansion and equipment upgrades on their processing facility in ST. LOUIS, MO. Completion is slated for Fall 2023. About the Author: Since 1959, SalesLeads, based out of Jacksonville, FL has been providing Industrial Project Reports on companies that are planning significant capital investments in their industrial facilities throughout North America. Our professional research team identifies new construction, expansion, relocation, major renovation, equipment upgrades, and plant closing project opportunities so that our clients can focus sales and marketing resources on the target accounts that have an impending need for their products, services, and indirect materials.
PT/MC Industry supports employers with $250,000 for PT WORK Force® in 2021
As the employment landscape continued to change in 2021, more than ever, employers required resources and tools to seek, retain and support quality employees. For those in the power transmission/motion control (PT/MC) industry, the need is even greater as companies look to build an essential workforce. The PT WORK Force® initiative of the PTDA Foundation exists to develop programs to support the recruitment and retention efforts of PT/MC companies. Thanks to voluntary contributions from companies and individuals in 2021, $250,000 was collected to aid these efforts. “Despite the challenges that emerged during the past 20 months, PT WORK Force® consistently produced quality programs and resources to bolster the endeavors of those seeking to advance the PT/MC workforce,” says 2021 PTDA Foundation President Keith Nowak, MPT Drives, Inc. (Madison Heights, Mich.). Across all job functions—warehouse workers to sales executives and beyond—greater support is needed for employers to grow and develop staff. With nearly 40 percent of PT/MC companies lacking a dedicated HR professional, managing recruitment and retention becomes a secondary job function for other staff. PT WORK Force® presents employers with a range of opportunities to assist them—from insightful and relevant content on PTWORKForceBlog.org and webinars on topics like stress management to an engaging Industry Summit presentation and panel on finding right-fit employees. “Wherever there is a demand, PT WORK Force® addresses it,” adds Nowak. “One of the greatest needs today is counsel on how to onboard employees virtually. PT WORK Force® answered by creating a guide to assist employers. Likewise, employers needing assistance drafting job postings can find examples through PT WORK Force® resources. The PTDA Foundation continues to tap into the pulse of what PT/MC companies require to stock their HR toolbox.”
Equipment Finance Industry confidence higher in November
The Equipment Leasing & Finance Foundation (the Foundation) releases the November 2021 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). 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 64.6, an increase from the October index of 61.1. When asked about the outlook for the future, MCI-EFI survey respondent Dave Fate, Chief Executive Officer, Stonebriar Commercial Finance, said, “While I believe the equipment leasing and finance Industry will always perform well through various cycles, the last few months have shown a number of interesting data points. Strong corporate earnings continue to drive the equity markets. The current rise in Inflation rates is alarming and seems like it will be with us for a while. Continued issues with the lack of skilled and non-skilled labor are the number one concern of most of our customers. Supply chain issues are causing real disruption and seem to have no viable plan to alleviate them. The rest of Q4 and into Q1 will be very interesting as we navigate through year-end closing in our industry and the Christmas holiday season.” November 2021 Survey Results: The overall MCI-EFI is 64.6, an increase from the October index of 61.1. • When asked to assess their business conditions over the next four months, 34.6% of executives responding said they believe business conditions will improve over the next four months, up from 25.9% in October. 46.2% believe business conditions will remain the same over the next four months, down from 70.4% the previous month. 19.2% believe business conditions will worsen, up from 3.7% in October. • 42.3% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 22.2% in October. 50% believe demand will “remain the same” during the same four-month time period, a decrease from 74.1% the previous month. 7.7% believe demand will decline, up from 3.7 in October. • 26.9% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 14.8% in October. 73.1% of executives indicate they expect the “same” access to capital to fund business, a decrease from 85.2% last month. None expect “less” access to capital, unchanged from the previous month. • When asked, 53.9% of the executives report they expect to hire more employees over the next four months, up from 40.7% in October. 46.2% expect no change in headcount over the next four months, a decrease from 59.3% last month. None expect to hire fewer employees, unchanged from October. • 15.4% of the leadership evaluate the current U.S. economy as “excellent,” an increase from 7.4% the previous month. 80.8% of the leadership evaluate the current U.S. economy as “fair,” down from 81.5% in October. 3.9% evaluate it as “poor,” down from 11.1% last month. • 23.1% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, an increase from 22.2% in October. 57.7% indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 63% from last month. 19.2% believe economic conditions in the U.S. will worsen over the next six months, up from 14.8% the previous month. • In November 42.3% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down slightly from 42.9% the previous month. 57.7% believe there will be “no change” in business development spending, up slightly from 57.1% in October. None believe there will be a decrease in spending, unchanged from last month. November 2021 MCI-EFI Survey Comments from Industry Executive Leadership: Bank, Middle Ticket “We continue to see interest in capital expansion for the sectors we serve, especially with middle-market customers. Supply chain issues continue to be a headwind to the implementation of capital investment.” Michael Romanowski, President, Farm Credit Leasing Independent, Middle Ticket “Business owners are feeling much more confident and are moving forward with capital acquisitions, some that had been delayed because of the pandemic. Pending no flare-up of COVID-19 infections in the coming months, we expect smooth sailing for the next several quarters.” Bruce J. Winter, President, FSG Capital, Inc.