Ransomware Readiness and Recovery –Eight Do’s and Don’ts
There were seven people seated around the table: The CEO, the VP, the CFO, the Special Agent from the FBI, the owner, the forensics technician, and the company’s CISO (Chief Information Security Officer). “Don’t pay” was the CEO’s vote. Same for the VP. “Pay it” was the owner’s response. The CFO nodded in agreement. “Paying could be a violation of Federal law” stated the FBI representative. The CISO had a hard time getting words out, as this was the largest ransom that he had dealt with at the time. $1,200,000 was a lot of money. “I don’t see another option given the status of our backups. Either we pay the ransom or we begin liquidating the assets of the company as soon as possible. Which is the lesser of two evils?” The CISO negotiated the ransom down to $410,000. The Bitcoin took several hours to amass. The cybercriminals delivered a decryption key, but 30% of the company’s data was gone forever — some of their hard drives filled up during the ransomware encryption process, and the encryption software kept running after the drives couldn’t hold any more data. Every file encrypted after that point was irretrievable. The total recovery took three months to ensure that no backdoors were left in the company’s systems, and the lawsuit to get the insurance company to cover the incident lasted almost two years. Stopping ransomware includes three key areas: Cybersecurity hygiene of your employees, proper practices by your IT department, and your data backup strategy. Here are eight ways to prevent a ransomware attack, and eight ways to recover from an attack if you fall victim to one: Ransomware Defenses to Help Prevent Attacks: Add Multi-Factor Authentication (MFA) on all of your company’s email accounts and on all external access to your network (VPN, TeamViewer, WebEx, etc.). This will help prevent a cybercriminal from taking over an email account using a compromised username/password. If your company uses Windows Active Directory, do NOT log in to computers with Domain Admin accounts. There is an attack called “Pass the Hash” that will steal encrypted (hashed) credentials left behind. If you must log in with a Domain Admin account, change the password. Patch your PCs. Workstations and servers. Every month. No exceptions. That includes conference room PCs, loaner PCs, HVAC computers, etc. Patch your networking gear. Firewalls, switches, UPSs, phone systems, etc. Install good antivirus software everywhere. All PCs. All Macs. All servers. Everywhere. Geofilter your Internet traffic and emails – if you don’t do business with a foreign country, block traffic and emails to/from it. It keeps out lazy cybercriminals. No, it won’t keep out the cybercriminals that VPN into your country before attacking you, but it’s surprising how many cybercriminals don’t take the time to do that. If you are part of a company with many workstations, use the Microsoft Local Administrator Password Solution (LAPS) to randomize the local administrator password on all PCs. If you have the same initial local admin username/password for every workstation, then if one machine gets compromised, it’s very easy for them to all get compromised. If your users have local admin credentials, you may want to rethink that. Today. Right now. If a cybercriminal compromises a computer, they normally inherit the permissions of the user for that computer. If that user is a local administrator, the bad guys are going to use that access to do more damage. In case you fall victim to ransomware, you need the following. Please note that most of these need to be done before the attack takes place: OFFLINE backups. These are backups that are kept off of your network. Cybercriminals try to delete your backups. If your backups are not on your network, the bad guys can’t destroy them. Tested restore procedures. If you try to restore your backups only when you need them, you are rolling the dice every time you are in a real bind. Offline restore methodology. Don’t begin a restore with your network still attached to the Internet. Ransomware cases often unfold where the cybercriminals still have hooks into a company’s network, and they destroy the used-to-be-offline backups as soon as the restore process begins. Workstation reimages. You need a clean workstation image to restore workstations quickly if you suspect they have been compromised. Server rebuilds. You need a clean server image to recreate your servers quickly. Pre-negotiated incident response team contract. Find a cyber incident response company and get a contract in place. That way you will know how to “call in the cavalry” very quickly as opposed to going through contract negotiations in the middle of a crisis. 35% free drive space on all network drives. Ransomware often bloats the data on the drives it encrypts. As soon as a drive fills up, the encryption process will keep trying to move forward, but every file it encrypts after the drive is full will be unrecoverable. If you have cybersecurity liability insurance, call your insurance company ASAP! There are many stories of insurance policies with a clause stating that the customer must inform their insurance company of a suspected incident within 24 hours of the initial discovery. If they take a few days to confirm that the incident was real, it can be an expensive mistake. If all companies followed the specific recommendations above, ransomware cybercriminals would become a thing of the past. With proactive action and a good cybersecurity awareness training program for your employees, cybercrime is a solvable problem! About the Author: Bryce Austin the CEO of TCE Strategy, an internationally-recognized professional speaker on technology and cybersecurity issues, and author of the book “Secure Enough? 20 Questions on Cybersecurity for Business Owners and Executives”. He is the named Chief Information Security Officer for companies ranging from 40 employees to S&P 500 organizations. Bryce actively advises companies on effective methods to mitigate cyber threats. For more information, please visit www.BryceAustin.com.
Wreaths Across America announces 2021 Escort to Arlington
President of American Gold Star Mothers, Inc., and President Emeritus of Gold Star Wives of America, Inc., to serve as Co-Grand Marshals; Chevrolet to once again provide wrapped vehicles to transport Gold and Blue Star Families and Veterans The country’s longest veterans’ parade – Wreaths Across America’s annual escort to Arlington National Cemetery – kicks off on Saturday, Dec. 11, 2021. National President of American Gold Star Mothers Inc. (AGSM) Jo Ann Maitland and President Emeritus of Gold Star Wives of America, Inc. (GSW) Nancy Menagh will lead the caravan as this year’s Co-Grand Marshals. The official escort will travel down the East Coast stopping at schools, memorials, and other locations along the way to spread the mission to REMEMBER, HONOR, and TEACH. Stops with public events will be held in Maine, Vermont, New York, New Jersey, Delaware, Maryland, and Washington D.C., before arriving at Arlington National Cemetery on the morning of Saturday, Dec. 18 – National Wreaths Across America Day. To view the complete schedule, please visit www.wreathsacrossamerica.org/arlington-escort-information. “For those who have had the opportunity to participate in the escort of wreaths over the years, it is truly an experience of a lifetime,” said Karen Worcester, executive director, WAA. “The way we and the mission are welcomed into communities, with flags waving and streets lined with children and veterans, is something we always wished every American could witness. This year we’re hoping that supporters will once again join us in lining the roadways safely and welcome the mission into their communities.” For the 7th year in a row Chevrolet, which has generously sponsored the escort vehicles transporting participating Gold Star families and veterans, will again provide wrapped vehicles in addition to sponsoring 4,000 veterans’ wreaths for placement at Arlington National Cemetery. “Chevrolet and its dealers are proud to support the work of Wreaths Across America and deliver the message of their mission to Remember, Honor, and Teach. This annual tradition has become a cornerstone event for Chevrolet and its dealers here in the Northeast Region,” said Dan Adamcheck, regional director, sales, service, and marketing for Chevrolet. “To be able to give back to our communities, and the men and women who have given so much to our country is truly an honor for Chevrolet and its employees.” Participants for this year’s convoy include Gold Star Families, Blue Star Families, veterans, volunteers, and members of the Patriot Guard Riders and Patriot Riders. Law enforcement from departments across Maine and other states along the route will provide escort to ensure safe transport for all participants throughout the week. Twelve tractor-trailers representing Walmart Transportation, Schneider National, Gully Transportation, Witte Bros. Exchange, Inc., Hartt Transportation Systems, Inc., Delhaize Transportation LLC (DBA Hannaford Supermarkets), American Trucking Associations – Share the Road Truck, Pottle’s Transportation, Cargo Transporters, Inc., Boyd Grain Inc., Hampton Road Moving & Storage, and Tyson Foods, Inc., will haul a portion of the sponsored veterans’ wreaths heading to Arlington National Cemetery for placement on Saturday, Dec. 18. Additionally, Load One Carriers will once again serve as the ceremonial wreath transporter for the escort. In total, nearly 257,000 sponsored wreaths are needed to reach the goal of placing a wreath on every eligible marker at Arlington National Cemetery. To sponsor a $15 veteran’s wreath for this location, please visit www.wreathsacrossamerica.org/ARLING. Note, volunteers placing wreaths at Arlington will be required to preregister this year and show proof of registration on Wreath Day. You may also register at the above site. What began 30 years ago as a pilgrimage by Maine wreath maker, Morrill Worcester, in a single truck to deliver 5,000 wreaths to Arlington as a gesture of thanks has become a national mission to Remember, Honor, Teach. National Wreaths Across America Day ceremonies are happening at more than 2,900 participating locations across the country on Saturday, Dec. 18, 2021. These events are free and open to all people. To find a participating location near you to support and/or volunteer to place wreaths, click here. Learn more here: https://www.wreathsacrossamerica.org/arlington-escort-information
AAR issues statement on Infrastructure Package signing
AAR President and CEO Ian Jefferies issued the following statement on the heels of President Biden signing the Infrastructure Investment and Jobs Act, which makes record public infrastructure investments and reauthorizes the nation’s surface transportation programs for five years. “Today, the nation took a long-overdue step toward a more competitive, prosperous economic future with President Biden’s signing of the comprehensive infrastructure package. Prioritizing investments and commonsense policy solutions were the result of thoughtful, bipartisan negotiations and the tireless work of many. As we collectively face today’s challenges and build tomorrow’s opportunities, this package will help pave the way for a more modern, safer, and resilient infrastructure network.” The Infrastructure Investment and Jobs Act includes nearly $845 million per year for highway-rail grade crossing safety and elimination projects and an average of $5.55 billion per year for discretionary infrastructure grant programs, including $1 billion per year for the Consolidated Rail Infrastructure and Safety Improvement (CRISI) grant program, which provides essential support to short line and passenger railroads as well as state departments of transportation. Finally, the bill includes significant funding for research, development, and demonstration projects that will play an important role in creating and further refining technologies that will help railroads to continue reducing their greenhouse gas emissions and further address climate change.
With President Biden’s signature, State DOTs ready to implement Infrastructure Bill
The following is a formal statement from the American Association of State Highway and Transportation Officials upon the President’s signature of the Infrastructure Investment and Jobs Act. “Today, President Biden signed the Infrastructure Investment and Jobs Act into law, providing resources for the much-needed long-term investments in our nation’s infrastructure,” said Jim Tymon, AASHTO executive director. “State departments of transportation applaud Congress and the President for getting this important piece of legislation to the finish line, as it provides historic funding increases for federal highway, transit, highway safety, and rail programs and directly addresses equity, climate change, system resiliency, bridge investment, and project delivery and environmental review processes. “AASHTO and state DOTs look forward to working with our partners at USDOT to implement the law as soon as possible. State and local transportation agencies are eager to get to work on the multi-modal projects that will provide real benefits to the people of every community across the country.”
EP 228: Vecna Mark 3
In this episode, I was joined by Matt Cherewka of Vecna Robotics. Matt is the Director of Business Development and Strategy at Vecna and you may remember I spoke with him previously during ProMatDX earlier this year. We discussed the market for AMR’s over the last year and a half, the Mark 3 software update, and interoperability standards. Key Takeaways Vecna Robotics is in the AMR game and over the last year and a half with the pandemic creating all kinds of unexpected changes in the way we operate, I was curious what they have seen in terms of demand. In discussing with Matt, it is clear that AMR adoption is on the rise and as he said a lot of companies have made their 2030 technology plans into their 2020 technology plans to keep up. One of the biggest drivers of this adoption is the labor shortages that many of Vecna’s customers are experiencing. With the ability to take over a lot of the repetitive material movement tasks, AMR’s like Vecna’s are in a great position to help alleviate some of these struggles. The latest from Vecna is their software upgrade called Mark 3. With this upgrade, they are improving a lot of the efficiencies with their hardware but most notably is the increase in speed. From my perspective, AMR and robots are making great strides but they have still been a bit limited in the speed at which they can do things. This upgrade pushes Vecna’s offerings to a max speed of 6.7 mph which is a jump from their previous 4.5 mph. At 6.7 mph they are getting very close to what a standard human-operated machine would perform at. It is certainly a big advancement as it gets closer to the replacement of the typical manually operated machine, however, there are certainly notable efficiencies that an AMR presents versus a manually operated machine which Matt and I discuss. At the end of the episode, Matt and I talk about the Mass Robotics Interoperability Standards which Vecna is a huge champion of. Since they are one of the founders of Mass Robotics, it only makes sense that they are also leading the way when it comes to interoperability standards. Matt discusses the first test and demo of how these standards work and the potential they hold. They did the first demo with Waypoint Robotics and were able to have great results. This is certainly something that will move the industry forward in an amazingly collaborative way. Listen to the episode below and let us know your thoughts in the comments. The New Warehouse Podcast EP 228: Vecna Mark 3
Wreaths Across America and MISSION BBQ Kick off 2021 American Heroes Cup Campaign
MISSION BBQ to donate a portion of its proceeds from its American Heroes Cup campaign to honor America’s veterans Today, Wreaths Across America (WAA) and MISSION BBQ announce that today kicks off the start of the “American Heroes Cup” campaign to raise funds to sponsor veterans’ wreaths to be placed on National Wreaths Across America Day in December of 2022. Through the end of 2021, for every American Heroes Cup purchased at any of the restaurant’s 110 locations, $2 will be donated to WAA. In 2020, MISSION BBQ customers raised $362,320 for WAA through its American Heroes Cup campaign, sponsoring the placement of more than 36,000 veterans’ wreaths in memory of our nation’s veterans – these wreaths will be placed by volunteers at more than 90 participating cemeteries this year on National Wreaths Across America Day – Saturday, Dec. 18, 2021. “We owe everything to our nation’s veterans, who have risked all that a person can to defend and protect this country,” said Bill Kraus, co-founder of MISSION BBQ. “It’s an honor to provide support to Wreaths Across America in remembering the fallen and thanking military families for their sacrifices.” Bill Kraus and Steve Newton opened the first MISSION BBQ restaurant in a Baltimore suburb in 2011, on the 10th anniversary of the Sept. 11 terror attacks. In opening the restaurant, they sought to Serve, Honor and Thank American heroes for their sacrifices and service by donating a significant portion of the restaurant’s profits to the community’s military non-profit groups and charity organizations that support police officers and firefighters. Since its founding in 2011, MISSION BBQ has opened 109 additional locations in 17 states. WAA began in 1992 in Harrington, Maine when the Worcester Wreath Company sought to turn a surplus of 5,000-holiday wreaths into an opportunity to pay tribute to our country’s veterans. With the help of then Maine Senator Olympia Snowe, the company’s owner, Morrill Worcester, arranged for the surplus wreaths to be placed at Arlington National Cemetery as a tribute to our country’s veterans. The tradition has continued and over the last 30 years, the event has grown in scope, touching the lives of thousands of veterans’ families and volunteers. In 2020 alone, Wreaths Across America and its national network of volunteers laid over 1.7 million veterans’ wreaths at more than 2,500 participating locations in all 50 U.S. states, at sea, and abroad. “Remember the fallen, Honor those who serve and Teach our children about the cost and value of freedom — that is our year-long mission,” said Karen Worcester, executive director of Wreaths Across America. “MISSION BBQ demonstrates this mission in how they conduct business in the communities they serve. Sharing stories of American heroes, treating our nation’s veterans with the dignity and respect they deserve, while teaching the next generation, every day. We are honored to be a program worthy of their support and grateful for their customers who also support this mission.” American Heroes Cups are available year-round, currently retailing at $3.99 with $2 of every cup purchased donated to a charity supporting veterans and first-responders. Now through December 31, 2021, proceeds from the American Heroes Cups will be donated to WAA. Customers are encouraged to bring back their American Heroes Cup on return visits to the restaurant to receive $.99 refills. To find a MISSION BBQ location near you visit: https://mission-bbq.com/locations. National Wreaths Across America Day is a free event and open to all people.
Deciding when to raise your prices … and by how much
A price increase is sometimes unavoidable — and now might be one of those times as many businesses are dealing with cost increases, supply chain bottlenecks, and labor shortages. The key to implementing a price hike with minimal loss of customers is timing. It’s hard to be the first one in your industry to raise your prices. If others don’t follow suit, your business could be in the embarrassing position of having to rescind price increases and determining other ways to make ends meet. Here are some key considerations when weighing the pros and cons of increasing your prices. Customer Loyalty The first step is to gauge customer loyalty. Some companies have built a base of loyal customers who are willing to pay a premium for their brands. Others have a customer base that’s made up of bargain hunters who would be willing to switch brands to save a few dollars. How do you know how loyal your customers are? Ideally, you’ve been monitoring their purchasing patterns over the years, and watching how they respond if you or a competitor has a “sales event.” Depending on the nature of your business and your ability to monitor customer behavior, you can also gauge loyalty by how long customers have been patronizing your business. If there’s significant customer turnover and you increase prices, your business could be in a vulnerable position. Another consideration is the nature of what you sell. If it’s a basic necessity and you dominate your market, your customers might have little choice but to accept a price increase. And even if you sell “luxury” products and services, you might also be in a good position to raise prices to the extent that your customers have an abundance of disposable income and aren’t price sensitive. Of course, that wouldn’t hold true for cost-conscious buyers of nonessential products. 4 Questions Once you’ve laid the groundwork for assessing the likely impact of a price increase, you can move to the next round of analysis by answering these four questions: Which products or services should I raise prices on? How much should prices increase? When should the price increases take effect? Should I notify customers about increases, and, if so, how do I explain the increases? These questions must be considered in light of how much you’re being squeezed in the current business environment. The more urgent the situation, of course, the less flexibility you have. In deciding which items to raise prices on, consider the potential cash flow impact. The most immediate effects will come from increasing prices on high-volume products. However, if you’re selling some high-volume, low-priced “loss leader” items to draw in customers who’ll also buy more profitable items and that strategy is working, go easy on raising prices on those bargain items. (See “Responsive Pricing” at right.) Generally, gradual, selective price increases are less noticeable to customers than an across-the-board price increase. But in some cases, a one-time “tear-off-the-Band-Aid-quickly” price hike, not to be repeated in the short term, can make sense if accompanied by an explanation that customers can accept. Alternatively, you can refresh your product or service offerings and then charge a premium for “new-and-improved” versions that cost you about the same as the old ones. Now or Later The current attention on inflation and other unfavorable external market conditions may provide a good cover for your business to increase its prices, especially if others in your industry are raising prices, too. By tying your increases to, say, an increase in the consumer price index, or average gas prices, you can help justify a price increase to your customers — and they’ll likely appreciate your transparency. Your financial advisors can help evaluate where price increases would be most impactful. They can also recommend alternative or supplemental business moves you can make to keep your business secure in these uncertain times. Responsive Pricing Every business strives to be customer-centric. But do your prices really reflect customer demand and market conditions? Price should never be a static number. It should evolve with your business. Market Research Your business needs a pricing strategy that considers what customers want and value — and how much money they’re willing to spend. Examples of economical ways smaller businesses can research their customers and competitors include: Conducting informal focus groups with top customers, Sending online surveys to prospective, existing and defecting customers, Monitoring social media reviews, and Sending free trials in exchange for customer feedback. It’s also smart to investigate your competitors’ pricing strategies using ethical means. For example, the owner of a restaurant might eat a meal at each of her local competitors to evaluate the menu, decor, and service. Or a manufacturer might visit competitors’ websites and purchase comparable products to evaluate quality, timeliness, and customer service. Pricing Strategies Low-cost pricing isn’t the only way to compete — and it can be disastrous for small players in an industry dominated by large conglomerates. Your business can charge higher prices than competitors if customers think your products and services offer enhanced value. For example, if your target market is more image-conscious than budget-conscious, you can set a premium price to differentiate your offerings. You’ll probably sell fewer units than your low-cost competitors but earn a higher margin on each unit sold. Premium prices also work for novel or exclusive products that are currently available from few competitors. Conversely, you may decide to set a low price, at least temporarily, to drive competitors out of the market and build market share — or to survive adverse market conditions. Being a low-cost leader enables your business to capture market share and possibly lower costs through economies of scale, but you’ll earn a lower margin on each unit sold. Similarly, you may discount some loss leader products to draw in buyers and establish brand loyalty in the hope that customers will subsequently buy complementary products and services at higher margins. You also may decide to offer discounts when seasonal demand is low or when
Xeneta welcomes Jesper Kjaedegaard as Board Member
Veteran ocean freight executive to help guide freight data and analytics company Xeneta towards further growth Xeneta, an ocean and air freight rate benchmarking, market analytics platform, and container shipping index, has announced that Jesper Kjaedegaard is a new board member. Kjaedegaard is a noted ocean freight expert and independent board member of several maritime-related companies and most notably served as a senior executive in the Maersk Group for 30 years. “Jesper’s vision for a more transparent shipping industry aligns nicely with ours. His clear understanding of how a universal container price reference point benefits all shipping industry stakeholders and what is needed to make it a reality makes him the perfect fit to join our board,” said Xeneta CEO Patrik Berglund. “Jesper’s prior experience in driving change, removing inefficiencies through data, and instilling collaboration from all industry players will be instrumental in helping us continue scaling our growth strategically and effectively. We look forward to Jesper’s guidance as he’ll be a valuable asset to the board.” Jesper Kjaedegaard has more than 40 years of ocean freight industry experience and has planned and directed ocean transportation services and port development projects around the world. As a past senior vice president and member of Maersk Line’s executive board, Kjaedegaard was directly responsible for managing Maersk Line’s global vessel network as well as pricing and was highly influential in the development of INTTRA, which today is the Liner industry’s leading booking platform. Kjaedegaard is past president of the UK Chamber of Shipping and Chairman of Maritime UK. He has served as a non-executive board director for a number of both listed and privately-owned transport-related companies in Europe, Latin America, and Asia. This includes V-Group, Hafnia Tankers, Stobart Group, Red Sea Gateway Terminals, Seatruck Ferries, Essar Group, APMT Bahrain, and BIMCO. “I am thrilled to be joining such an innovative and passionate group of industry professionals,” said Xeneta board member Jesper Kjaedegaard. “The continued digital transformation of the ocean and air freight industry is of critical importance to both shippers, freight forwarders as well as carriers. The broken state of the global supply chain has led to significant disruptions, unreliable transport capacities, and incalculable replenishment times. Being able to access reliable data in real-time is more important now than ever before, and Xeneta is leading the way.” In recent months, Xeneta has closed a $28.5 million Series C round, received a valuation of over $130 million, appointed Peter Sand as Chief Analyst and welcomed several new customers onto its platform, including General Mills, Volvo, John Deere, Amer Sports, Rockwell Automation and CEVA Logistics—all looking to gain better market visibility into freight rate pricing factors and minimize the supply chain disruptions. Other noted names that rely on Xeneta’s crowd-sourced ocean and air freight rate benchmarking and market analytics platform include ABB, Electrolux, Continental, Unilever, Nestle, L’Oréal, Thyssenkrupp, and more.
U.S. Rail Traffic for the week ending November 6, 2021
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending November 6, 2021. For this week, total U.S. weekly rail traffic was 504,111 carloads and intermodal units, down 3.5 percent compared with the same week last year. Total carloads for the week ending November 6 were 235,585 carloads, up 3.1 percent compared with the same week in 2020, while U.S. weekly intermodal volume was 268,526 containers and trailers, down 8.6 percent compared to 2020. Five of the 10 carload commodity groups posted an increase compared with the same week in 2020. They included coal, up 7,624 carloads, to 66,745; metallic ores and metals, up 3,486 carloads, to 21,039; and chemicals, up 1,178 carloads, to 33,780. Commodity groups that posted decreases compared with the same week in 2020 included motor vehicles and parts, down 3,204 carloads, to 11,946; grain, down 2,039 carloads, to 25,386; and petroleum and petroleum products, down 413 carloads, to 10,010. For the first 44 weeks of 2021, U.S. railroads reported a cumulative volume of 10,192,237 carloads, up 7.4 percent from the same point last year; and 12,158,149 intermodal units, up 7.6 percent from last year. Total combined U.S. traffic for the first 44 weeks of 2021 was 22,350,386 carloads and intermodal units, an increase of 7.5 percent compared to last year. North American rail volume for the week ending November 6, 2021, on 12 reporting U.S., Canadian and Mexican railroads totaled 334,304 carloads, up 2 percent compared with the same week last year, and 356,154 intermodal units, down 7.8 percent compared with last year. Total combined weekly rail traffic in North America was 690,458 carloads and intermodal units, down 3.3 percent. North American rail volume for the first 44 weeks of 2021 was 30,478,642 carloads and intermodal units, up 6.5 percent compared with 2020. Canadian railroads reported 79,368 carloads for the week, up 0.8 percent, and 73,447 intermodal units, down 5.6 percent compared with the same week in 2020. For the first 44 weeks of 2021, Canadian railroads reported a cumulative rail traffic volume of 6,530,220 carloads, containers, and trailers, up 3.7 percent. Mexican railroads reported 19,351 carloads for the week, down 6.3 percent compared with the same week last year, and 14,181 intermodal units, down 2.4 percent. Cumulative volume on Mexican railroads for the first 44 weeks of 2021 was 1,598,036 carloads and intermodal containers and trailers, up 4 percent from the same point last year. To view the U.S. Traffic charts, click here.
Women In Trucking Association names Lily Ley as 2021 Influential Woman in Trucking
Women In Trucking Association (WIT) and Freightliner Trucks presented the 11th annual Influential Woman in Trucking award today to Lily Ley, Vice President and Chief Information Officer, PACCAR. The winner was announced during the WIT Accelerate! Conference & Expo in Dallas, Texas. The announcement came after the panel discussion “Inspiring Stories: How to Power Your Career.” The panel included all of the finalists for the 2021 Influential Woman in Trucking award and was facilitated by Elizabeth McManis, Manager, Brand Marketing, Daimler Trucks North America. The Influential Woman in Trucking award recognizes women in the trucking industry who make or influence key decisions, have a proven record of responsibility, and mentor and serve as a role model to other women. The award was developed in 2010 to honor female leaders in trucking and to attract and advance women within the industry. Finalists for the 2021 Influential Woman in Trucking award also included Eileen Dabrowski, Director of Learning, Development and Marketing, ReedTMS Logistics, and Amanda Schuier, Chief Operating Officer, Quality Transport Company. “After our conference in 2020 was virtual, it was refreshing to host the event live and listen to these outstanding finalists share their inspirational stories with the audience,” said Ellen Voie, WIT president and CEO. “This award is WIT’s way of highlighting Lily, Eileen, and Amanda for their commitment and service to the industry.” Lily Ley is an experienced Technology and IT executive, mentor to aspiring students, and passionate advocate for more inclusive workplaces for women. In her role as Vice President and CIO for PACCAR, a global automotive truck and engine company, Ley leads the Information Technology (IT) division and the modernization of IT for the Digital Age. She brings a customer-first mindset, a focus on applying innovation to deliver tangible business benefits, and a relentless pursuit of enhanced business efficiencies. Ley is a member of the MSIS Board of Advisors at the University of Washington. She is the Executive Sponsor for the PACCAR Women’s Association (PWA) where she advocates for the inclusion of women in the workplace. She is also involved in SeattleCIO, as an Advisory Board Member. In 2016, The Washington Diversity Council recognized her as “2016 Washington Most Powerful and Influential Women.” Ley has a Bachelor of Science in Computer Science and an MBA from CETYS University and has also completed the Executive Development Program at Stanford. She enjoys spending time with her husband German and two daughters and is passionate about travel and cooking.
Port of Long Beach boosts push for Zero-Emissions trucks
At least 10% of Clean Truck Fund Rate set aside for truck incentives To support a goal of a zero-emissions truck fleet by 2035, the Port of Long Beach will start collecting its Clean Truck Fund Rate on April 1, 2022, as approved by the Long Beach Board of Harbor Commissioners today. The rate for nonexempt trucks of $10 per twenty-foot equivalent unit – a standard measure for one 20-foot-long cargo container – was set in March 2020 by the ports of Long Beach and Los Angeles to encourage the trucking industry to invest in cleaner vehicles and reach zero emissions. Zero-emissions trucks are exempt from the rate, and the Port of Long Beach has approved an expiring exemption for the cleanest natural gas-powered trucks as a transitional step to a future when zero-emissions cargo trucks are widely available. The Clean Truck Fund rate is expected to generate $90 million in the first year or $45 million per port. As part of Monday’s action, the Board approved an initial funding prioritization for both low-nitrogen oxides and zero-emissions trucks, with at least 10% of the funds to be provided to zero-emissions trucks. “As cargo volume continues to break records, it’s critical that we transition to a zero-emissions fleet,” said Long Beach Mayor Robert Garcia. “Our Clean Truck Fund is a bold step forward towards cleaner air and addressing our climate crisis.” “We are the Green Port,” said Harbor Commission President Steven Neal. “Speeding progress toward the zero-emissions trucks goal is important, in spite of the business uncertainties created by the pandemic. There should never be any doubt that we will fulfill this promise. This rate allows us to balance aggressively pursuing zero-emissions goals with economic vitality and competitiveness. We have a responsibility to find solutions to protect public health in vulnerable communities.” “The Port of Long Beach is known worldwide for our record of environmental achievement and leadership,” said Port of Long Beach Executive Director Mario Cordero. “Reaching zero emissions will take intense collaboration among our trucking and other goods movement partners. The good news is that we’ve already achieved a great deal with our Clean Truck Program. This is one more step toward a cleaner future we will all be proud of.” Phasing out older, more polluting trucks has been key to clean air gains the San Pedro Bay ports have made since the original Clean Truck Program was launched in 2008. Diesel emissions from trucks have been cut by as much as 97% compared to 2005 levels. Trucks remain the Port’s largest source of greenhouse gas emissions and the second-highest source of nitrogen oxides, a contributor to regional smog formation. The Clean Air Action Plan (CAAP) has established a goal of zero-emissions trucks by 2035. A key component of the overall strategy to transition to a zero-emissions truck fleet is an updated Clean Truck Program incentivizing the development and adoption of new technology. Updated in 2017, the CAAP contains a comprehensive strategy to accelerate progress toward a zero-emissions future while protecting and strengthening the ports’ competitive position in the global economy. Since 2005, port-related air pollution emissions in San Pedro Bay have dropped 89% for diesel particulate matter, 63% for nitrogen oxides, and 97% for sulfur oxides. Targets for reducing greenhouse gases (GHGs) from port-related sources were introduced as part of the 2017 CAAP Update. The document calls for the ports to reduce GHGs to 40% below 1990 levels by 2030 and 80% below 1990 levels by 2050. The CAAP was originally approved in 2006.
Statement of Ellen Voie, President of Women In Trucking, regarding House passage of the bipartisan Infrastructure Bill
Ellen Voie, the president and CEO of the Women In Trucking Association (WIT), released the following statement regarding the passage of the bipartisan infrastructure bill that passed the House of Representatives: “Women In Trucking is ecstatic and grateful for the bipartisan effort that culminated in the passage of an infrastructure bill that will rebuild America’s highways, roads, and bridges. In addition to helping truckers get goods to markets, the bill contains specific provisions to address the shortage of truckers facing the nation”, said Voie. “As America struggles with logistic issues and a shortage of truck drivers nationwide, the bill will bring more women behind the wheel and protect those who have made truck driving a career. We want to thank Sen. Tammy Baldwin and Rep. Mike Gallagher and others for their leadership on this issue and look forward to this legislation becoming law.” Voie added Women In Trucking Association is the nation’s advocate of women in the trucking and transportation industry.
In the Great Resignation, ESOPs matter more
According to the US Bureau of Labor Statistics (BLS), 4.3 million Americans quit their jobs in August 2021. That’s 2.9% of the total non-farm workforce, the highest rate ever recorded by the BLS. For closely-held companies in search of retention solutions, employee stock ownership plans (ESOPs) could play a key role. What’s Driving the Great Resignation? This trend began in early 2021 and has accelerated since then. Delayed departures could be one explanation. Economic uncertainty prompted many to hold on to their jobs through the height of the coronavirus pandemic. With an end in sight, some workers may now be seeking greener pastures. But many economists and labor experts believe the current wave of resignations reflects deeper societal shifts. Remote working trends have broadened opportunities for experienced, mid-career job-switchers. Other employees, especially those in the service and healthcare industries, are burning out. While COVID-19 put unprecedented work-life pressures on essential workers, many also faced stagnant wages and benefit reductions long before the pandemic. The Cost of Employee Turnover According to a 2019 Gallup analysis, a company can expect to spend 50% to 200% of a departing employee’s salary to find and train their replacement. That represents a $1 trillion annual inefficiency for U.S. businesses. The impact of unplanned departures on small and mid-market businesses can be especially profound. Many of these firms lack robust human resources and talent acquisition capabilities. Retention Measures Targeted incentives can take on outsized importance during an attrition crisis. When it comes to rewarding performance, cultivating belonging, and encouraging tenure, private businesses have several options. 401(k)s and Medical Benefits These benefits have value but lack differentiation. In a volatile labor market, companies in direct competition for talent will likely strive for parity across standard health and retirement benefits. Cash Bonuses, Phantom Equity, and Profit Interest Although these individual and company-wide performance awards can be lucrative, they lack long-term staying power. After an annual incentive is paid, an employee is under no obligation to stick around. In addition, the earnings are subject to taxes, creating inefficiencies for companies and employees alike. Stock Options These programs reward longevity and performance, but the pool of grantees is generally limited to upper management and high performers. Most closely-held middle-market companies are ill-equipped or unwilling to roll out broad-based option plans. The ESOP Alternative Employee stock ownership plans have been part of the benefits toolkit since Congress passed ERISA, the Employee Retirement Income Security Act of 1974. Primarily conceived as a vehicle to build workers’ wealth, ESOPs are often framed solely as a retirement benefit. Studies have long demonstrated the positive effect of ESOPs on employees’ economic well-being. But significant research also illustrates the value of employee ownership to a broader set of stakeholders. Selling shareholders receive fair market value for their equity, and plan sponsors perform better than their non-employee-owned peers. Tax incentives are certainly a catalyst in these instances, but there’s another known driver of ESOP-oriented prosperity: employee retention. Employee Ownership and Retention The median tenure of an ESOP participant is 46% greater than a non-employee owner (5.1 years vs. 3.5 years), according to a 2018 analysis of National Longitudinal Survey data of workers aged 28-34. This trend transcends racial, gender, and income lines. The study’s author, the National Center for Employee Ownership, ultimately concluded that “employee ownership is strongly predictive of longer job tenure.” Plan participants often cite a sense of belonging, pride of ownership, and skin in the game when describing allegiance to employee-owned companies. These soft benefits are all valid and important. Nonetheless, plan mechanics also encourage retention in several ways. ESOP Shares are Allocated Over Time Even in a leveraged ESOP – where some or all of a company’s equity is sold to an employee trust – those shares are allocated to employees over a multi-year period. That time frame is often 10 years or greater. This helps reward employees with longer tenures and extends the ESOP benefit to employees who join the company after plan formation. ESOP Allocations Have a Vesting Period Similar to a 401(k), annual share allocations vest over a three- to six-year period. Specifics, including vesting schedules (cliff or graduated) and accelerated vesting for long-tenured employees, are determined on a plan-by-plan basis. As Tenure Increases, so Does an Employee’s Potential Upside By virtue of the allocation and vesting mechanisms, an employee-owner has more to gain by remaining with their company. Longer tenures lead to more vested stock. And, hopefully, over time the business will grow and increase its valuation. When an employee leaves an ESOP company, their vested shares are sold back to the plan sponsor at a current valuation. As a result, when long-time workers leave prosperous, employee-owned companies, their hard work is tangibly rewarded. Transitioning to an Employee-Owned Company The pivot to an ESOP does not happen overnight. Companies seeking to immediately address an attrition problem cannot turn to employee ownership as a cure-all. ESOPs are Department of Labor-regulated defined benefit plans, and leveraged plans are complex financial transactions. So, knowledgeable partners and a multi-month runway are essential to getting a well-designed employee stock ownership plan off the ground. A strong plan rollout is also critical. It’s important to properly convey the benefits and unique dynamics of an ESOP to employees. A poorly understood incentive is rarely effective. But when an ESOP makes practical and financial sense, it can be a game-changer for closely held companies – especially in competitive labor markets. Nathan Perkins is recognized as an expert in the investment banking space and speaks regularly on the topic of ESOPs as a liquidity strategy for business owners. Throughout his 20-year career, he has advised on over 300 ESOP M&A transactions encompassing over $1 billion in value. Prior to joining CSG in 2014, Nathan was a Vice President at Bank of America Merrill Lynch where he focused on ESOP strategies for ultra-high net worth families. He held a similar position at Morgan Stanley for over seven years.
AASHTO praises passage of historic Transportation Bill
The following is a formal statement from the American Association of State Highway and Transportation Officials regarding the passage of the Infrastructure Investment and Jobs Act by the U.S. House of Representatives. “AASHTO commends the House of Representatives for its passage of the bipartisan Infrastructure Investment and Jobs Act, a historic piece of legislation that provides a much-needed funding increase for highway, transit, highway safety, and rail programs,” said Jim Tymon, AASHTO executive director. “This bill, which provides the long-term certainty state departments of transportation need, encompasses many state DOT priorities, including considerable action to address climate change and improve system reliability, the creation of a formula-based bridge and an electric vehicle infrastructure funding program, and improvements to the project delivery and environmental review process. “A safe, efficient, multimodal transportation network is essential to improve our quality of life and economic vitality, and state DOTs are working every day to deliver just that. The IIJA provides the much-needed resources to those agencies to make our communities better places to live, work, and play. AASHTO thanks Congress for getting this important piece of legislation to the finish line, and our nation’s state DOTs look forward to putting this bill to work immediately once it is signed by the President.” added Tymon.
U.S. Railroads praise House passage of bipartisan Infrastructure Package
On Friday, November 12th, the House of Representatives approved bipartisan legislation, which will make future-focused investments in the nation’s public infrastructure. Now headed to President Biden’s desk for signature, the Infrastructure Investment and Jobs Act also include a full five-year surface transportation reauthorization. “Railroads appreciate the work of the Biden administration and members of the House and Senate who made the passage of this truly comprehensive infrastructure package possible,” said AAR President and CEO Ian Jefferies. “As we continue to navigate supply chain challenges, the need for the thoughtful funding and policy solutions over the long term that this bipartisan package delivers are even more clear. Thanks to the hard work of many, our nation will make the significant, long-overdue investments we need to modernize our public infrastructure, enhance safety and support future economic growth.” The Infrastructure Investment and Jobs Act includes nearly $845 million per year for highway-rail grade crossing safety and elimination projects and an average of $5.55 billion per year for discretionary infrastructure grant programs, including $1 billion per year for the Consolidated Rail Infrastructure and Safety Improvement (CRISI) grant program, which provides essential support to short line and passenger railroads as well as state departments of transportation. Finally, the bill includes significant funding for research, development, and demonstration projects that will play an important role in creating and further refining technologies that will help railroads to continue reducing their greenhouse gas emissions and further address climate change.
OSHA announces Emergency Temporary Standard on Vaccination and Testing
UPDATE: On November 6, the 5th U.S. Circuit Court of Appeals temporarily halted OSHA’s Interim Final Rule on coronavirus vaccination and testing. OSHA is required to provide an expedited reply to the motion for a permanent injunction on November 8, followed by petitioners’ reply the next day. The Occupational Safety and Health Administration or OSHA has announced a new Emergency Temporary Standard on Vaccination and Testing. Here are four things you need to know: Employers with at least 100 employees will be required to adopt a mandatory vaccination policy unless they adopt a policy requiring unvaccinated workers to undergo weekly testing and wear a face covering at work. Covered employers must provide paid time for workers to get the COVID-19 vaccine and ensure workers have paid sick leave to recover from any side effects that prevent them from working. Employers must comply with most provisions by 30 days after the date of publication in the Federal Register, and comply with the testing requirement by 60 days after the date of publication in the Federal Register. Learn more about compliance dates here. Businesses that don’t comply may face significant OSHA fines. Other helpful resources: Submit a comment: If you have comments, feedback, or information on OSHA’s COVID-19 Vaccination and Testing ETS you would like the agency to consider, please submit a comment electronically at regulations.gov (Docket Number OSHA-2021-0007). You can consult OSHA’s How to Participate fact sheet to learn more about the process. (Please note: any information submitted only to this email address will not be part of the record and will not be considered by the agency.) Learn more: If you have questions or are looking for more information about the ETS, you can find fact sheets, FAQs, and compliance assistance materials at osha.gov/vaxETS. Spread the word: Help us spread the word in your communities about our actions to keep workers safe by using our social media toolkit. For additional information on OSHA’s COVID-19 response visit osha.gov/coronavirus.
October 2021 Logistics Manager’s Index Report®
LMI® at 72.6 Growth is INCREASING AT A DECREASING RATE for Inventory Costs, Warehousing Prices, Transportation Utilization, and Transportation Prices Growth is INCREASING AT AN INCREASING RATE for Inventory Levels, and Warehousing Utilization, Warehousing Capacity, and Transportation Capacity are CONTRACTING October’s reading of 72.6 continues the extended run of logistics expansion we have been tracking throughout the year. Overall growth has now been over 70.0 – a level we would classify as significant expansion – nine months in a row and 12 of the last 14 (only dipping down in December and January read in the mid-’60s which was partially a function of inventories being sold off during Q4). This month’s number is driven by many factors, including continual growth in cost metrics, and further contraction in available capacity. We also observe that after four consecutive periods of decreasing rate of growth, Inventory Levels are up again (+3.2) to 61.8. Analysis of upstream and downstream firms reveals that Inventory Levels are growing 10.3 points faster for upstream respondents – reflecting the difficulty retailers are having building up inventories to sufficiently meet consumer demand. 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 October 2021. As we have seen for most of the last year, this month’s LMI displays continued expansion in the logistics industry. Overall, the LMI is up slightly (-+0.4) in from September’s reading of 72.2. The growth in this month’s index is fueled by metrics from across the index, primarily those involving capacity, cost, and upstream inventories. The transportation crunch remains particularly pronounced, with Transportation Prices reading in above 90.0 for the seventh time in the last eight months. For the fourth consecutive month, we observe an all-time high reading for Warehousing Prices, coming in this month at 89.3. Interestingly, this still comes in behind Transportation Prices, which read in at an astronomical rate of 92.7 – it’s the sixth out of seven readings to breach 90.0. While the growth of the overall economy slowed to 2% in the third quarter – a reduction largely due to the prevalence of the Delta variant and supply chain issues that stymied potential consumer spending[1], consumer demand for durable goods has remained hot. The volume passing through the Port of Los Angeles was up 49.8% year-over-year through the first three quarters of the years[2]. 74 vessels were docked in the San Pedro Bay waiting to be unloaded in the last week of October – anchored an average of 13.4 days before they can be unloaded. Even firms like Apple who have remained well-positioned throughout the pandemic and have reported record profits over the last 12 months are warning of potential shortages[3]. Supply chain issues are a major driver behind consumer prices rising at their fastest pace in 30 years during September[4]. These shortages have been framed as a byproduct of “broken supply chains”. However, as Jason Miller of Michigan State points out, we are actually observing supply chains processing more goods than at any other point in history[5]. The San Pedro Bay ports are on track to process 20 million TEUs of cargo in 2021 – up 25% from 2020[6]. This sudden increase has had drastic impacts on systems designed for lean efficiency. The glut of inventory is creating a negative feedback loop in which firms stick inventory wherever they can, soaking up potential processing capacity. This is exemplified in the chassis problem that was highlighted in September’s report. Many chassis are acting as ad-hoc storage for inventory that has nowhere else to go, severely limiting the ability of dockworkers to move containers off the dock and towards customers[7]. The ports are attempting to clear this blockage in a few different ways. Long Beach waived the restrictions on stacking shipping containers, allowing them to be stacked 5 boxes high instead of 2. This should help get containers off of the ships more quickly. The Port of Long Beach is also working with the Union Pacific Railroad to ship cargo directly to the Utah Inland Port Authority. This cuts out steps for products moving to the US intermountain region and frees up capacity in Southern California[8]. to better utilize the 24-7 approach the ports are taking UP and BNSF railroads are offering incentives ($60 and $50 per container respectively) for containers that are in-gated on Saturday or Sunday through the ports in southern California[9]. More controversially, ports are also attempting to incentivize shippers to move containers more quickly by charging $100 per container per day, increasing in $100 increments in each successive day. Assessments will begin on November 15th and apply to containers that have been idle for more than nine days (a group that makes up 47% of the backlog at the Port of LA)[10]. The additive nature means that with this penalty cost will increase exponentially, so a container that sits for 30 days will garner penalties of $46,500. While this policy will provide clear economic incentives to firms to move containers off of chassis and other staging areas, it remains to be seen whether or not they will have the space to do so. Many shippers, including Walmart, Amazon, and Office Depot believe that the high fees will only increase costs, and not necessarily increase throughput due to the lack of capacity to move containers elsewhere and a debate rages as to whether carriers or shippers will ultimately pay the costs[11].
New ASSP and revised standards help employers better protect workers
As a global provider in the development of workplace safety and health standards, the American Society of Safety Professionals (ASSP) has published several new and revised voluntary national consensus standards that help employers minimize on-the-job risks to better protect their workers. “Standards lead organizations big and small in the same direction to achieve safer and healthier workplaces,” said ASSP President Brad Giles, P.E., CSP, STS, FASSP, GIOSH. “They are a cornerstone of a successful business, setting minimum requirements that help maximize operations, increase the bottom line and ultimately save lives.” With regulatory requirements being slow to change and often out of date, compliance is not sufficient to protect workers. Voluntary national consensus standards provide the latest expert guidance and fill gaps where federal regulations don’t exist. Leading companies rely on them to drive continuous improvement and injury prevention. ASSP’s broad collection of new and revised workplace safety standards focus on psychological safety and health, fall protection, construction and demolition operations, and prevention through design. New standards recently published ANSI/ASSP/ISO 45003-2021, Occupational Health and Safety Management – Psychological Health and Safety at Work – Guidelines for Managing Psychosocial Risks, provides guidance for managing psychosocial risk and promoting well-being at work as part of a safety and health management system based on ISO 45001. ANSI/ASSP Z359.9-2021, Personal Equipment for Protection Against Falls – Descent Controllers, sets minimum requirements for the design and use of descent controllers in rope access, rope descent, and evacuation. ANSI/ASSP Z459.1-2021, Safety Requirements for Rope Access Systems, provides fundamental criteria for establishing and evaluating rope access systems for work at height. The best practices are applicable where ropes are suspended from or connected to a structure to protect a worker from falling. Requirements include a two-rope system for rope access, full-body harnesses and autolocking connectors with 3,600-pound gates. Revised standards recently published ANSI/ASSP A10.38-2021, Basic Elements of an Employer’s Program to Provide a Safe and Healthful Work Environment, outlines minimum elements of a program for protecting employees in construction and demolition. ANSI/ASSP A10.47-2021, Work Zone Safety for Roadway Construction, sets minimum requirements for workers involved in construction, utility work, or maintenance on roads, also aiming to prevent crashes in work zones. ANSI/ASSP Z359.11-2021, Safety Requirements for Full Body Harnesses, creates minimum requirements for full-body harnesses commonly used for fall protection, travel restraint, and rescue operations. ANSI/ASSP Z359.14-2021, Safety Requirements for Self-Retracting Devices for Personal Fall Arrest and Rescue Systems, establishes minimum requirements for self-retracting devices, including self-retracting lanyards. The devices are used where personal protection is needed to prevent falls from height, such as at a rock-climbing facility. The devices are becoming increasingly popular in the fall protection industry but must be used properly. ANSI/ASSP Z590.3-2021, Prevention Through Design Guidelines for Addressing Occupational Hazards and Risks in Design and Redesign Processes, offers guidance on reducing or eliminating occupational safety and health hazards in the design process. It explains how to include prevention through design concepts in a safety and health management system. If worksites are designed from the start with safety in mind, fewer injuries will occur. In addition to implementing safety and health standards, all employers are encouraged to regularly conduct workplace risk assessments, which are effective in combatting many safety and health issues across all industries.
EP 224: Cyngn
On this episode, I was joined by both Lior Tal and Ben Landen of Cyngn. Lior is the CEO and Ben is the VP of Business Development at Cyngn where they are thinking very differently about creating autonomous industrial vehicles. We discuss how Cyngn got its start, how they are transforming existing fleets, and their recent partnership with Columbia Vehicles. Key Takeaways Cyngn asks the question: “Why aren’t your industrial vehicles driving themselves?” and they are here to provide the solution. While most of the autonomous solutions that we have seen coming to the market are brand new vehicles and ones that you would have to purchase to add to your fleet, Cyngn is focusing on retrofitting your current fleet with the technology to make it autonomous. They are taking the approach of retrofitting to specific models and giving you the ability to essentially bolt on the technology to your current vehicles while at the same time working with the manufacturer to give the option for future vehicles to be autonomous. It is a unique approach that allows you to transition your fleet to autonomous in a much easier way. Their most recent partnership is with Columbia Vehicles who provides a wide range of industrial vehicles. They are working with Columbia to develop autonomous offerings for their customers. What this means is Cyngn will be able to retrofit existing Columbia Vehicles that customers are currently utilizing and then be able to offer brand new Columbia vehicles with an autonomous option as well. While the vehicle has the option for autonomous operation, with Cyngn’s technology it also retains the option to be switched back to manual mode for whatever reason you may need. One of the big issues that Cyngn’s technology helps to address is the ongoing struggle to attract and retain labor for industrial jobs. By transitioning some of your existing industrial vehicles to autonomous you can free up a headcount to do more meaningful work and help to alleviate your need for more labor. Additionally, I am a fan of this technology because it allows you to transition your fleet to autonomous without having to put a major investment into new autonomous vehicles all at once. It is a great way to transition your fleet and do so in a more cost-effective way. Listen to the episode below and let us know your thoughts on this technology. The New Warehouse Podcast EP 224: Cyngn
Year-End Tax Planning Tips for small businesses
You still have time to significantly reduce this year’s business federal income tax bill even with all the uncertainty about proposed tax law changes. Here are five possible moves to consider — but stay tuned for developments. Congress is currently considering some major tax changes. If approved, it’s unclear when they will all take effect. Claim 100% First-Year Bonus Depreciation for Last-Minute Asset Additions Thanks to the Tax Cuts and Jobs Act (TCJA), 100% first-year bonus depreciation is available for qualified new and used property that’s acquired and placed in service in the calendar year 2021. That means your business might be able to write off the entire cost of some or all of your 2021 asset additions on this year’s federal income tax return and maybe on your state return, too. Consider making additional acquisitions between now and December 31. Contact your tax pro for details on the 100% bonus depreciation break and exactly what types of assets qualify. However, if significant tax-rate increases are enacted for 2022 and beyond, you could be better off forgoing 100% first-year bonus depreciation and, instead, depreciating newly acquired assets over a number of years. If tax rates go up, those future depreciation write-offs could be worth more than a current-year 100% write-off. Fortunately, you have until the deadline for filing your current-year federal income tax return — including any extension — to decide which course to take. If your business uses the calendar year for tax purposes, the extended filing deadline will be October 17, 2022, for sole proprietorships and C corporations. The extended deadline will be September 15, 2022, for partnerships, limited liability companies (LLCs), and S corporations. Extending your return may give you more flexibility to react to future tax developments. Write Off New or Used Heavy SUV, Pickup, or Van The 100% bonus depreciation deal can have a major tax-saving impact on first-year depreciation deductions for new or used heavy vehicles used over 50% for business. That’s because heavy SUVs, pickups, and vans are treated for federal income tax purposes as transportation equipment. In turn, that means they qualify for 100% bonus depreciation. Specifically, 100% bonus depreciation is available when the SUV, pickup, or van has a manufacturer’s gross vehicle weight rating (GVWR) above 6,000 pounds. You can verify a vehicle’s GVWR by looking at the manufacturer’s label, which is usually found on the inside edge of the driver’s side door where the door hinges meet the frame. If you’re considering buying an eligible vehicle, placing one in service before year-end could deliver a significant write-off on this year’s return. However, if significant tax-rate increases are enacted for 2022 and beyond, you could be better off forgoing 100% first-year bonus depreciation and, instead, depreciating newly acquired assets over a number of years. You have until the deadline for filing your current-year federal income tax return, including any extension, to decide whether claiming 100% first-year bonus depreciation is a good idea. Manage Current-Year Business Income and Deductions If your business operates as a pass-through entity — such as a sole proprietorship, S corporation, partnership, or LLC taxed as a partnership — your shares of various tax items are accounted for on your personal return and net income is taxed at your personal federal income tax rates. As the year-end approaches, if you expect to be in the same or lower federal income tax bracket in 2022 than you are in 2021, the traditional strategy of deferring taxable income into next year while accelerating deductible expenditures into this year makes sense. Deferring income and accelerating deductions will, at a minimum, postpone part of your tax bill from 2021 until 2022. On the other hand, if you expect to be in a higher tax bracket in 2022 than you are in 2021, accelerate income into this year (if possible) and postpone deductible expenditures until 2022. That way, more income will be taxed at this year’s lower rate instead of next year’s higher rate. Maximize the Deduction for Pass-Through Business Income The deduction based on an individual’s qualified business income (QBI) from pass-through entities is a key element of the TCJA. The deduction can be up to 20% of a pass-through entity owner’s QBI, subject to restrictions that can apply at higher income levels and another restriction based on the owner’s taxable income. For QBI deduction purposes, pass-through entities include: Sole proprietorships, Single-member LLCs that are treated as sole proprietorships for tax purposes, Partnerships, LLCs that are treated as partnerships for tax purposes, and S corporations. You can also claim the QBI deduction for up to 20% of qualified REIT dividends and up to 20% of qualified income from publicly traded partnerships. Because of the limitations on the QBI deduction, year-end tax planning moves (or lack thereof) can increase or decrease your allowable QBI deduction. For instance, year-end moves that reduce this year’s taxable income can have the unanticipated negative side effect of reducing this year’s QBI deduction. Work with your tax pro to optimize your results. Establish a Tax-Favored Retirement Plan If your business doesn’t already have a retirement plan, now might be the time to take the plunge. Current retirement plan rules allow for significant deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $58,000 for 2021. If you’re employed by your own corporation, up to 25% of your salary can be contributed to your account, with a maximum contribution of $58,000. If you’re in the 32% federal income tax bracket, making a maximum contribution could cut what you owe Uncle Sam for 2021 by a whopping $18,560 (32% times $58,000). Other small business retirement plan options include: 401(k) plans, which can even be set up for just one person (also called solo 401(k)s), Defined benefit pension plans, and SIMPLE-IRAs. Depending on your circumstances, these other types of plans may allow bigger deductible contributions. Thanks to a change made by the 2019 SECURE Act, tax-favored qualified