Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index
September New Business Volume Up 6 Percent Year-over-year, 8 Percent Month-to-month, and 10 Percent Year-to-date The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross-section of the $900 billion equipment finance sector, showed their overall new business volume for September was $9.2 billion, up 6 percent year-over-year from new business volume in September 2020. Volume was up 8 percent month-to-month from $9.9 billion in August. Year-to-date, cumulative new business volume was up 10 percent compared to 2020. Receivables over 30 days were 1.6 percent, down from 1.8 percent the previous month and down from 2.0 percent in the same period in 2020. Charge-offs were 0.35 percent, up from 0.23 percent the previous month and down from 0.82 percent in the year-earlier period. Credit approvals totaled 76.3 percent, unchanged from August. Total headcount for equipment finance companies was down 14.0 percent year-over-year, a decrease due to significant downsizing at an MLFI reporting company. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in October is 61.1, an increase from the September index of 60.5. ELFA President and CEO Ralph Petta said, “Originations in the equipment finance industry continue to tick up, with September new business volume showing good growth compared to the same period last year. Supply chain disruptions and inflation concerns continue, with the Fed poised to gradually ease its asset purchases in the near term. For now, liquidity is abundant and businesses are acquiring the productive equipment necessary to respond to customer demand in a variety of market sectors. Portfolio quality is mixed, however, with lower delinquencies offset by slightly higher charge offs for the 25 responding MLFI participants.” Robert L. Boyer, President, First Commonwealth Equipment Finance, said, “The September MLFI data display encouraging signs of improvement for the industry with new business volume increasing and delinquency decreasing from August. Losses are trending higher but remain in a range below what we saw as incomparable, pre-pandemic periods. Looking forward, it seems this is a story of tailwinds and headwinds. A slight increase in the Foundation’s October Monthly Confidence Index, reduced levels of COVID-19 cases from the late summer peak and increasing demand are indications that things will continue to improve. On the other hand, supply chain disruption, significant increases in equipment prices, and low worker supply continue to hamper expansion in major industry sectors our industry serves. This should really make for an interesting fourth quarter.”
PTDA honors Pamela Kan with Warren Pike Award
The Power Transmission Distributors Association (PTDA) has named Pamela Kan the 30th recipient of its Warren Pike Award for lifetime achievement in the power transmission/motion control (PT/MC) industry. She received her award during the PTDA 2021 Industry Summit on October 22 in Atlanta. Established in 1984, the Warren Pike Award honors individuals who have demonstrated outstanding, continuous, long-term support of PTDA and the PT/MC industry and is only presented when an individual’s achievements merit this prestigious recognition. Warren Pike Award recipients are selected by the PTDA Board of Directors. For Pamela, what began as a short-term assignment working for her father, Bud Wisecarver, evolved into more than three decades working for Bishop-Wisecarver Corporation, which provides linear and rotary motion solutions. Today, Pamela is the sole proprietor of the certified woman-owned company. Pamela’s role with PTDA began in 2003 with a committee assignment. She progressed through several volunteer roles, including serving on the Industry Summit Planning task force three times, including for the 2021 program, as a PTDA Foundation Trustee for five years, and leading the PTDA Manufacturer Council as chair in 2011. During her acceptance speech, Pamela shared: “The number one core value of my own company is to preserve our family culture. Likewise, the PTDA family grows and changes, but the family culture has remained the same. We support one another, provide opportunities for growth and success, and embrace the different views and people that help us be our best. I’m proud to be a member of this PTDA family and am excited to be part of the ongoing growth and changes in the next 20 years.” More information is available at ptda.org/WarrenPikeAward. The Power Transmission Distributors Association (PTDA) is a global association for the industrial power transmission/motion control (PT/MC) distribution channel. Headquartered in Chicago, PTDA represents power transmission/motion control distribution firms that generate more than $16 billion in sales and span over 2,500 locations. PTDA members also include manufacturers that supply the PT/MC industry.
Building a new skilled talent decade
Recently I spoke at a forum on my White Paper, “Job Shock: Moving Beyond the COVID-19 Employment Meltdown to a New Skilled Talent Decade,” at the Cliff Dwellers Club in Chicago. My presentation and responses to it can be viewed on YouTube at https://youtu.be/gnLBrOiMSYA. In my remarks, I pointed out that history was now repeating itself as workplace technology change is again shifting education and skills requirements. PAST LABOR HISTORY During the first decades of the 20th century, a titanic shift in the U.S. economy destabilized society. An industrial revolution triggered by the spread of electricity and the growth of factories and offices required workers with at least a basic education in reading and mathematics. Many violently opposed the expansion of public education. Who needs a universal school system? Why educate children, women, and immigrants? You will only cause anarchy by giving them dangerous ideas! Anyway, these people are not trainable. We need them for cheap labor in our factories or on our farms! As this debate raged across America, more people were persuaded that the expansion of education would benefit society. Starting at the regional and state levels, enlightened community leaders spearheaded the expansion of compulsory tax-supported primary and secondary education. By 1918, all of the then 48 states mandated this standard of public schooling backed by tough truancy laws. The United States was the first nation to attempt to provide a general education to all its citizens. It was a major contributor to the rise of the United States as a world power. A NEW SKILLED JOB ERA Another major industrial revolution began in the 1970s as computers and information technology began to be adopted in workplaces. By the beginning of the 21st century, personal computers, smartphones, and the internet were everywhere. Automation has eliminated many low-skill jobs and increased the demand for workers with higher math and reading skills and specialized career training. The seminal 1983 report, “A Nation at Risk,” raised the first red flag that the U.S. education-to-employment system had become obsolete and warned that America needed to provide more students and workers with enhanced education and training for higher-skilled/higher-wage jobs. However, continuing national testing by the U.S. Department of Education commonly known as the Nation’s Report Card reports low levels of proficiency in math and reading particularly at the 12th-grade-level. Moreover, the COVID-19 pandemic has caused learning losses of up to a year, particularly among lower-income students. These deficiencies in our education-to-employment system plus the 130 million American adults who the Barbara Bush foundation reported read at the 8th-grade level or less are building into a severe shortage of skilled labor. Surveys of employers are consistently reporting difficulties in finding qualified people to fill open positions. A September National Federation of Independent Business survey found that 51 percent of owners had job openings they could not fill, the third consecutive month in which record highs for unfilled jobs had been reached. Moreover, 62 percent of small employers seeking to hire had few or no qualified applicants. In July and August, the U.S. Bureau of Labor Statistics reported over 10 million job openings. The Federal Reserve Bank of Atlanta projected that the high number of unfilled jobs is costing U.S. businesses to lose $738 billion in revenue annually. CAN WE DO IT AGAIN? As the COVID-19 epidemic has severely disrupted schooling at all levels and caused labor market turmoil, there is the potential for forming broad coalitions to reform our nation’s education-to-employment pipeline. Parents and students are more aware of the importance of good educational preparation for the future, and many businesses are fighting for their very survival. At present, although the number of vacant jobs is high, there are millions of Americans who are unemployed or underemployed who do not precisely match the skills or experience companies are seeking for their open jobs and who therefore are excluded for consideration for them. A September Harvard/Accenture report estimates that there are over 27 million Americans whom they term “hidden workers.” Our “Job Shock” research clearly shows that Regional Talent Innovation Networks (RETAINs) as public-private partnership hubs can effectively prepare more people for the higher-skilled/higher-wage jobs that are vacant across the United States. Their success hinges upon mobilizing a diversity of partners to engage in meaningful collaboration to close skills-jobs gaps. Cross-sector coordination is key. The current barriers between businesses and educational institutions need to be broken down to allow the development of up-to-date career preparation options. America has a long history of community civic engagement. Enlightened local leaders have periodically stepped forward to bolster our republic during times of crisis. Community engagement is again essential to move the United States forward into a new skilled talent decade. About the Author: Edward E. Gordon is the president and founder of Imperial Consulting Corporation (www.imperialcorp.com).
DELLNER BUBENZER acquires the business of Hydratech Industries
DELLNER BUBENZER Group has announced the acquisition of the business of Hydratech Industries, the Danish global supplier of high-end hydraulic systems, cylinders, and accumulators for wind, offshore-, marine- and industry applications. With manufacturing facilities located in Denmark, Czech Republic, India, USA, and China and Service & Repair divisions, the DELLNER BUBENZER Group welcomes 300 new employees in its team and strengthens its local presence worldwide. This is the next step for the Swedish company, which is well on its way to realizing its ambition of becoming the world’s leading supplier of brakes and related power transmission products. “Hydratech is a great addition to our group, complementing our ground-breaking invention of an electrohydraulic BUEL® thruster system. This expands our offering to our customers and strengthens our hydraulics expertise” says Marcus Åberg, CEO of DELLNER BUBENZER. The company will operate under the name DELLNER HYDRATECH Group AS in the future and a lot of activities are now processed. Marcus Åberg adds: “Right now it is business as usual. We will continue to support customers and are looking forward to our new colleagues. Together we will continue to develop our companies to the benefit of our customers, our suppliers, and our employees and create synergies when we incorporate Hydratech within the DELLNER BUBENZER Group”. DELLNER BUBENZER is an industry-diverse global leader in the design and manufacture of braking systems for the material handling, crane & hoist, container handling, mining, marine, industrial, offshore, oil & gas, and wind energy sectors. The company is privately owned and part of Sweden´s DELLNER Group with a history of manufacturing brakes since 1936.
Women In Trucking Association names 2021 Top Companies for Women to Work for in Transportation
Redefining the Road magazine, the official magazine of the Women In Trucking Association (WIT), has announced the recipients of the 2021 “Top Companies for Women to Work For in Transportation.” According to Ellen Voie, president and CEO of WIT, the magazine created the award in 2018 to support an element of WIT’s mission: to promote the accomplishments of companies that are focused on the employment of women in the trucking industry. “As women rise through the ranks in the transportation industry, we are excited to feature the companies that make the extra effort to attract and retain a more gender-diverse workforce,” said Voie. “We applaud their efforts and this distinction is our way of giving them the recognition they deserve.” There are a number of characteristics that distinguish companies recognized on this list, according to Brian Everett, publisher of Redefining the Road. These characteristics include corporate cultures that foster gender diversity; competitive compensation and benefits; flexible hours and work requirements; professional development opportunities; and career advancement opportunities. “Identifying the companies on this list involves a two-step process,” said Everett. “First, nominations of the companies are received and carefully reviewed to ensure they qualify by meeting a minimum threshold of qualifications. Then the final ballot of companies is voted on by individuals in the industry. This is the fourth year of this prestigious recognition program and it garnered more than 14,000 votes to identify the final companies named to the list.” The list is comprised of a diverse range of business sectors in the commercial freight transportation marketplace, including motor carriers, third-party logistics companies, and original equipment manufacturers. These companies will be recognized at the upcoming WIT Accelerate! Conference & Expo Nov. 7-9 in Dallas. Penske Transportation Solutions is the sponsor of this year’s program. Companies named to the 2021 “Top Companies for Women to Work For in Transportation” list are: ADM Trucking AFS Logistics AGT Global Logistics Amazon American Central Transport Aria Logistics Artur Express Averitt Express Bay & Bay Transportation BCB Transport Beacon Building Products Bennett Family of Companies BlueGrace Logistics Boyle Transportation BR Williams Trucking Brenny Transportation Cal-Ark International Cardinal Logistics Management Carter Express Centerline Drivers Certified Express CFI Clean Harbors Convoy Covenant Crowley Daimler Trucks North America Day & Ross Detroit Diesel Remanufacturing DHL Supply Chain Dot Transportation Dupré Logistics Dynacraft, a PACCAR Company Echo Global Logistics Estes Express Lines FedEx Freight Fifth Wheel Freight Forward Air Frito Lay Garner Trucking Grammer Logistics Guttman Energy Highway Transport Logistics J.B. Hunt Transport Services Jack Cooper Transport Jetco Delivery John Christner Trucking JR Kays Trucking JX Enterprises Karl’s Transport Kenco Kenworth of Louisiana Kenworth Truck Company Landstar Transportation Logistics Matheson Trucking McLeod Software Michelin North America Navajo Express New West Truck Centres NFI Industries Odyssey Logistics & Technology Old Dominion Freight Line Omnitracs PACCAR PACCAR Parts PACCAR Australia PACCAR Engine Paper Transport Penske Transportation Solutions Peterbilt Motors Company PGT Trucking Prime Inc. Ralph Moyle ReedTMS Logistics Rihm Family Companies Riverside Transport Roehl Transport Ryder Schneider Smith Transport Southeastern Freight Lines Star Fleet Trucking Stericycle The Dart Network Tri-National Trimac Transportation Trimble Trinity Logistics Tru-Pak Moving Systems Truckstop.com TruNorth Global U.S. Xpress Enterprises UPS Veriha Trucking Volvo Group North America Walmart Werner Enterprises XPO Logistics Yellow Zonar
Conveyor and Sortation Architecture: Centralized vs Decentralized Systems
When thinking of a modern distribution center, most people will picture a conveyor and sortation system. And while they are truly fascinating on the surface, what lies underneath, controlling the whole operation is equally impressive. Today we’re talking to some members of MHI’s Conveyor & Sortation Systems industry group about what’s under the hood, so to speak. To listen to the podcast, click here.
EP 222: Supply Jane
In this episode, I was joined by author Megan Preston Meyer. She has created the Supply Jane series of books for children which focus on teaching supply chain concepts to elementary level kids. We discuss her background in analytics, why educating children on the supply chain is important and how the idea for the books came about. Key Takeaways Megan’s background is in analytics and insights which have ranged from all different aspects of the business. As we all are well aware analytics and insights are a huge part of the supply chain. While Megan was going through her career in the analytics world she realized that she was always finding herself telling a story with the data. She makes incredible points about the difference between showing someone a spreadsheet and actually giving them a story that the data tells which is much more digestible. As she realized that she had a knack for storytelling she started to think about writing. She landed on the supply chain because she realized it was something that was never really advertised or promoted in schools so she thought it would be a good thing to write about. The idea for her books focused on the character Supply Jane actually comes from a hike with her husband where they were coming up with supply chain puns. As you can see, Supply Jane is very close to the supply chain which is the perfect character to fit into her books. Originally she had not set out to write for children but when she realized that kids were not being exposed to the supply chain early in their lives or at least they were not realizing that it was all around them she knew that was the path to go on. Currently, she has two books with one discussing the concept of FIFO and the other discussing bottlenecks in manufacturing operations. I wanted to highlight Megan’s book because I think it is an incredibly important thing to be bringing more exposure to the supply chain world earlier on in individuals’ lives. Even as I currently teach a supply chain course at a university level, many students are not very familiar with the concept of the supply chain. With the importance of the supply chain in our everyday lives and to keep the global economy running it is important that we continue to develop the talent pool for our industry. Supply Jane is a great way to start kids off right and give them exposure early on. I highly recommend getting it for the kids in your life. Buy the book here. The New Warehouse Podcast EP 222: Supply Jane
Industry Veteran Barbara Ross honored with PTDA Foundation’s 2021 Wendy B. McDonald Award
Wendy B. McDonald was one of the power transmission/motion control (PT/MC) industry’s true pioneers. To honor her memory, in 2014, the PTDA Foundation established the Wendy B. McDonald Award. It recognizes a woman who has established herself as a critical contributor to her company’s success and has affected positive change within the PT/MC industry. This year’s recipient of the Wendy B. McDonald Award is Barbara J. Ross of Garlock Sealing Technologies. Barbara began her career at Garlock in 1973, working alongside her father. What started as a summer job evolved into a 46-year career in the PT/MC industry. At Garlock, Barbara honed her skills working for various departments—from finance to marketing to administration—before being named the company’s first female distribution center manager. With this distinction came a move from upstate New York to Atlanta. Additional career advancements within the industry and relocations proved promising for Barbara, who soon discovered her niche in marketing. In 2014, Barbara became the VP of sales and marketing for Garlock’s Rotating Seal Division, a role in which she continues to lead and find fulfillment. Barbara’s success in the PT/MC workforce is what she considers one of her greatest achievements. She draws inspiration from the words of a friend, colleague, and award namesake Wendy McDonald: “You have to work at something to make it a success.” Barbara continues to channel her passion into helping others in the PT/MC industry carve their own path to success. She says the key is to “be prepared, listen, be responsive, do what you say you’re going to do and admit if you don’t know something.” Barbara is well-respected and admired by her colleagues and industry peers. Her warm and welcoming demeanor and industry savvy make her a frequently sought-out volunteer for PTDA and PTDA Foundation committees and projects. She currently serves on the PTDA Foundation Board, as chair of the PT WORK Force® Work, Education Resource and Knowledge Committee, and on the Funding Committee. She also serves on the PTDA Industry Insights Committee. Barbara was presented with Wendy B. McDonald Award during the Annual Business Meeting at the PTDA 2021 Industry Summit in Atlanta on October 22. For further information, visit ptda.org/WendyBMcDonaldAward.
PTDA Foundation inaugural Robert K. Callahan Future Leaders Award presented to Chris Gumas
A past president and 25-year PTDA Foundation Trustee, Bob Callahan (formerly SENQCIA MAXCO LLC) was passionate about the mission of the PTDA Foundation. Bob passed away in early 2021 and, in recognition of his commitment to the advancement of new talent within the power transmissions/motion control (PT/MC) industry, the PTDA Foundation created the Robert K. Callahan Future Leaders Award. This award recognizes a young leader who exhibits a true passion for and desire to grow within the industry. The inaugural recipient of this award is Chris Gumas of Ruland Manufacturing Co., Inc. Chris joined Ruland in 2010 and today is the director of marketing, managing the company’s global distributor relationships, website, and day-to-day commercial operations. Throughout his eleven-year tenure with Ruland, Chis has never ceased to seek opportunities to advance his knowledge of the PT/MC industry, including his regular participation at the PTDA Leadership Development Conferences. Chis exudes an energy and passion that is best seen in his ability to connect with individuals across all levels of the industry—from those beginning their careers to seasoned PTDA leaders. An inherent leader mentality drives Chris to embrace out-of-the-box thinking, strategies, and solutions, distinguishing him within his company and the industry. He acknowledges that to grow, both organizations and individuals need to take risks and welcome challenges. “Part of leadership is building trust,” says Chris. “When people see ideas working, it builds trust in your decision making.” Chris is an avid supporter and promoter of PTDA and currently serves on the PTDA Manufacturer Council. He was presented with his award during the Annual Business Meeting at the PTDA 2021 Industry Summit in Atlanta on October 22. Unable to attend in person, Chris accepted his award virtually. For further information, visit ptda.org/CallahanAward. The PTDA Foundation, whose work is funded solely by donations, was founded in 1982. Its core purpose is to champion education, outreach, and research initiatives relevant to the PT/MC industry that enhance the knowledge and/or professionalism and productivity of industry stakeholders. The PTDA Foundation is a not-for-profit, tax-exempt 501(c)(3) corporation; contributions are tax-deductible to the full amount allowed by law. For more information, visit ptda.org/Foundation.
It’s Me, Not You (Actually, Maybe It Is!) When It’s Time to Divorce Your Clients
Over a hundred of her clients only use her services once a year. They expect champagne service on a beer budget, and they pull her attention away from the people she works with regularly. This group is weighing her down, and after some soul searching, she’s decided they’ve got to go. Her business is running her, and it’s not working. Plain and simple, he doesn’t like working with them. They pay late, they always look for extras, and they’re generally unpleasant. Life’s too short, he doesn’t need the work, and today is the day he’s pulling the plug. They pay their bills on time, they’re as regular as clockwork, and they’re no longer profitable. They’ve been great clients, and she dreads having to tell them they’re no longer a fit. Nevertheless, due to resource constraints, it’s got to be done. From time to time and for myriad reasons, service providers need to let a client or class of clients go. As with any other difficult conversation, there’s a right way and a wrong way to make the decision and break the news. Step One: Be Methodical When Making the Decision Snap judgments can feel good in real-time. Later, however, many people come to regret actions they’ve taken in the heat of the moment. So, when the thought of leaving a client enters your mind, take a step back and ask yourself why. Does the client not fit with your business model anymore? Does the person bring you down in some way? Does helping the client take away from more important work? If you answer “yes” to any of those questions, it’s time to think about what you will accept, what you won’t, and what types of clients make sense for where you are now and where you want to be in the next few years. Once you have clear criteria, you have something against which you can evaluate. Step Two: Ask Yourself if the Relationship Is Truly Finished After you’re clear about what you want and the kind of client that fits the bill, you must decide if the relationship is finished or if it has rehab potential. For example, if a client is always late and that is what’s making the relationship unpleasant, a frank conversation may solve the problem. On the other hand, if the client doesn’t value you or his or her business is no longer part of your core service, you may want to say goodbye. Alternatively, if you can be had for a price, consider revising your fees. Some people may be perfectly happy to pay to stay. Step Three: Determine Whether You Will Make a Clean Break or Recommend an Alternative When a client’s behavior is perfectly fine but the client is no longer a fit, sending them in another direction may make a lot of sense. When you do, however, you need to be clear that you are out of the picture and not a go-between for managing the new relationship. In other words, if something goes wrong, you’re not involved. At the other end of the spectrum, if the person or people you need to break up with are abusive, it hardly makes sense to recommend a colleague. After all, would you want people sending toxic clients your way? Probably not. Step Four: Choose the Right Time When you make a split can be as important as how. For instance, if you’re an accountant and just before tax time you make a break with clients who only use you at tax time, you’re going to make a lot of people angrier than they need to be. When possible, provide ample warning. Step Five: Keep Your Message Short and Direct When you break the news, keep your explanation brief. “Karen, I have some updates about my business and where my focus is for the coming year. We’ve been shifting our attention to full-service clients for quite some time. Full-service clients are people who need us every month and not just once a year. You should know this is the last year I’m going to be handling clients who do not need our full services. Based on what I understand from working with you, I don’t think full service is something you need. Am I correct?” If the breakup is a result of a client’s behavior, the message may be a little different. “Roger, for our services to work, we need clients who respond when we ask for their feedback. We don’t have the resources to manage the follow-up required when we don’t hear anything. Because feedback isn’t happening and it’s been an ongoing issue, we’re going to step away from the relationship.” Step Six: Stand Firm and Stay Calm Some people take a split well, and others don’t. No matter the reaction, you should stay calm stick to your carefully reasoned decision. No matter the reason, splits are rarely fun when they’re happening. Once they’re over, however, they can free you to tackle new challenges and do the work that makes you happy. About the Author: Kate Zabriskie is the president of Business Training Works, Inc., a Maryland-based talent development firm. She and her team help businesses establish customer service strategies and train their people to live up to what’s promised. For more information, visit www.businesstrainingworks.com.
Raymond performs unparalleled Lithium-Ion testing to provide industry-leading solutions
Raymond to present research, testing at upcoming NY-BEST conference The Raymond Corporation is committed to providing leading energy solutions that elevate and optimize operations through unequaled testing and performance evaluations. As the lithium-ion power market continues to grow rapidly throughout the industry, Raymond is on the cutting edge of this growth, working in coordination with the Battery and Energy Storage Technology Test (BEST) & Commercialization Center (BTCC), an ISO 17025 accredited testing laboratory, to build significant capability in lithium-ion battery testing and development. “The BTCC brings together over 250 years of combined DNV and NY-BEST team experience,” said Richard S. Barnes, regional president, Energy Systems North America at DNV. “Testing at the facility provides crucial insights into the longevity as well as the technical performance of energy storage systems used in any situation. The high-quality, flexible testing capabilities also provide third-party independence to the test results.” For the utmost reliability and performance, Raymond energy solutions are put through rigorous testing at the BTCC. Energy Essentials Distributed by Raymond® is just one example in which Raymond’s testing results in a comprehensive lithium-ion, high-performance energy solution to optimize operations. The implementation of Energy Essentials batteries provides operations with significant productivity enhancements, including increased uptime, reduced electricity consumption, and a smaller carbon footprint, by allowing for more time between charges. “We are in a dynamic world with quickly evolving needs. To stay ahead of the curve, Raymond is driving energy innovations to elevate operations and meet the demands of today,” said Jennifer de Souza, senior director, energy solutions, procurement & leasing. “Raymond is dedicated to bringing unparalleled emerging technologies to the commercial market through rigorous testing and qualification.” On Oct. 27, 2021, Dan Harris, a Raymond engineer for energy systems, will give a seminar on the battery-testing process at the New York Battery and Energy Storage Technology Consortium (NY-BEST) Fall Energy Storage Technology and Innovation Conference held in Binghamton, New York.
PLASTICS releases statement after passing of Plastics Academy president Jay Gardiner
The Plastics Industry Association (PLASTICS) released the following statement from president and CEO Tony Radoszewski in reaction to the passing of Jay Gardiner. “On behalf of the entire plastics industry, I express my deepest sympathies to the family of Jay Gardiner. Jay was a legend, both in the business and in his community. His foundational contributions to the growth of the plastics industry in the United States rightfully earned him a place in the Plastics Hall of Fame, an organization he served with characteristic dedication in recent years. Beyond his life in plastics, Jay was also a pillar of his community, where he served in the local fire department for over three decades and taught at a local community college. Jay will be sorely missed.”
Taxes that can hurt you
I had the privilege to make a presentation with my Dealer, Rental, and Equipment team for IEDA (Independent Equipment Dealers Assoc.) in September. It was similar to what we did for MHW One-Day Dealer Conference two years ago. With the new proposed tax law and the remaining ways to get government funding, we had plenty to cover in 60 minutes. I made my presentation regarding the state of the never-ending moving target of the economy, the COVID-19 impact, interest rates, the inflation/deflation possibility, supply chain issues, and let us not forget China because when China sneezes the rest of us catch a cold. And I am sure you can add to the list if you stop to think about it. There was one sobering fact I heard from the former head of the Dallas Fed who stated that his review of the supply chain issue and the inability of U.S. ports of entry to manage the flow, along with conversations with port authorities and union leaders leads him to surmise that it will take another two years before things get back to normal. Not good news if a major portion of your inventories come in by boat from another country. So, my presentation suggested dealers manage cash, clean up the Balance Sheet, prepare for the new lease accounting rules (in effect for 2022 financial statement), take the time to understand the new proposed tax changes, and find ways to continue to service customers including ways to reduce cost. Steve Pierson reviewed the proposed tax changes. He spent most of his time explaining potential risks associated with the phase-out of Bonus Depreciation since dealers currently using bonus sell assets with zero tax basis and then offset any tax by purchasing another unit that will then be deducted using Bonus. But once the phase-out occurs there could be tax exposure each year during the phase-out. The “new” tax liability could still be offset to a great extent using Sec. 179, as long as you qualify to keep in mind that Sec 179 has a $ 1 million cap, which may be less if your 179 purchases exceed $2.5 million. But, no matter what, we can count on both personal and corporate tax hikes. Paul Rozek, Steve’s Partner, then discussed ERC (Employee Retention Credit), which is still available for both 2020 and 2021. Surprisingly, a good number of attendees were not really familiar with this tax credit that provides substantial bucks depending on how the total sales for each quarter in 2019 compares against the quarterly numbers for the same quarter in 2020 and 2021. If any of your 2020 quarters had sales 50% less than the 2019 quarterly results you qualify for that quarter. They made it easier for 2021 where the 2021 quarterly results qualify if they are 20% less than the 2019 results. The max credit for 2020 is $5000 per employee for the year. For 2021 the max credit is $7000 PER QUARTER per employee. Like I said, big numbers if you qualify. This area is a bit complicated, and you really need a REAL EXPECT like Paul to max your benefit from this credit, with does not have to be repaid but is taxable in the year received. And last but not least Jim Margner, my SALT guy (State and Local Tax), reviewed the most complicated area of your company tax situation. This is a high-risk and potentially expensive issue if you mishandle reporting state and local taxes post-Wayfair. To get the discussion going Jim handed out a Questionnaire with nineteen questions on it. I think having a clean bill of health regarding SALT is important for every equipment dealer. Who needs to be harassed by the State for tax, penalties, and interest? The last time I received one of these notices there was a perceived $2000 tax missed that wound up with interest and penalties of over $10000, both of which increased daily. Luckily, Jim saved the day and proved the tax was paid and, in the end, it cost me $20. I am going to make Jim’s questionnaire available on the MHW website, along with Steve Pierson’s summary of the proposed tax changes and Paul Rozek’s presentation to help you understand the ERC. The points here are: YOU DO NOT WANT TO MISS OUT ON THE ERC YOU DO NOT WANT TO WIND UP WITH A TAX SURPRISE BECAUSE OF THE BONUS CHANGES YOU DO NOT WANT TO GET INVOLVED WITH A TIME-CONSUMING, EXPENSIVE STATE TAX ISSUE IF IT WAS SOMETHING YOU COULD HAVE AVOIDED If you have any questions, feel free to reach out to: Steve Pierson Pierson@seldenfox.com Paul Rozak Rozakl@seldenfox.com Jim Marger Jmargner@comcast.net Take care! 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.
162 new Industrial Manufacturing Planned Industrial Project Reports – September 2021 Recap
SalesLeads just released the September 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 162 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 – 147 New Projects Distribution and Industrial Warehouse – 54 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 57 New Projects Expansion – 48 New Projects Renovations/Equipment Upgrades – 66 New Projects Plant Closings – 12 New Projects Industrial Manufacturing – By Project Location (Top 10 States) Indiana – 14 Texas – 12 North Carolina – 9 Ohio – 8 Pennsylvania – 8 Michigan – 8 Tennessee – 7 Ontario – 7 Illinois – 7 California – 6 Largest Planned Project During the month of September, our research team identified 15 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 $5.6 billion for the construction of an EV automotive and battery manufacturing campus in MEMPHIS, TN. They are currently seeking approval for the project. Completion is slated for 2025. Top 10 Tracked Industrial Manufacturing Projects NEVADA: Lithium-ion battery recycling company is considering investing $1 billion for the construction of a 1 million SF manufacturing facility and currently seeking a site in the EASTERN NEVADA area. Watch SalesLeads for updates. ALABAMA: Automotive manufacturer is planning to invest $288 million for the renovation and equipment upgrades on their manufacturing facility in HUNTSVILLE, AL. They have recently received approval for the project. MICHIGAN: Automotive mfr. is planning to invest $250 million for the renovation and equipment upgrades at their manufacturing plants in DEARBORN, STERLING HEIGHTS, and YPSILANTI, MI. They have recently received approval for the project. SOUTH DAKOTA: Battery mfr. is planning to invest $250 million for the construction of a manufacturing and distribution complex in RAPID CITY, SD. Construction will occur in phases. They will relocate operations upon completion. NORTH CAROLINA: Fiber optic cable mfr. is planning to invest $150 million for the construction of a manufacturing facility in HICKORY, NC. They have recently received approval for the project. TEXAS: Paper products mfr. is planning to invest $120 million for the expansion, renovation, and equipment upgrades at their manufacturing facility in PINELAND, TX. Renovations are expected to start in early 2022, with completion slated for late 2022. MAINE: Paper products mfr. is planning to invest $111 million for the expansion and equipment upgrades of their manufacturing facility in RUMFORD, ME. They are currently seeking approval for the project. VIRGINIA: Aluminum extrusion mfr. is planning to invest $100 million for the expansion and equipment upgrades at their manufacturing facility in PRINCE GEORGE, VA. They have recently received approval for the project. OHIO: Recycled paper products mfr. is considering the construction of a paper mill and currently seeking a site in the SOUTHWESTERN, OH area. Watch SalesLeads for updates. TEXAS: Diversified industrial equipment mfr. is planning to invest $77 million for a 75,000 SF expansion and the renovation of their weather-damaged manufacturing and office facility in TYLER, TX. They have recently received approval for the project. Completion is slated for Spring 2022. About the Report 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.
Behaviors create results
In my August 2021 column, I discussed the importance of deconstructing departmental silos in our dealerships. Silos, as we discussed, are a naturally occurring phenomenon, born out of a desire by our employees to post successful results. Sometimes however the commitment to departmental performance can overshadow our combined effort to serve the customer in the way he wants to be served. When departmental objectives start to drive behaviors that affect our ability to meet customer expectations, we have to implement strategies and tools that allow us to refocus our efforts back on the customer. In the September issue, I suggested different tools to do just that. Strategies included communication and awareness initiatives that result in better understanding and more efficient communications. I also suggested a dealership-wide commitment to “getting it right the first time”, by introducing the “critical eye” mentality. Deconstructing silos is not an easy task, but we must continue to remember that the customer is not hiring the rental department or the service department. They are hiring the DEALERSHIP. How can we ensure that our CX is governed by a cross-departmental, unified effort and that silo-based activity is muted, or even invisible to the customer? Rewards based on Results Most dealership silo building starts as a response to departmental objectives and the reward systems attached to them. Resources needed to meet objectives are not without their limits and are seldom if ever renewable. Manpower, budgets, tools, and supplies are many times competed for in the quest to get things done, and produce the results that the management is looking for. Time is the most precious resource. Every department is trying to meet its objectives with the same 480 business minutes that each day provides. In view of the challenges that silos pose to our dealerships, I think it would be relevant to consider if there is a way that we can affect the problem at its nexus. What drives your staff to erect these walls? The most obvious answer is the reward system that most dealers attach to departmental performance. Dealers routinely compensate salespeople, managers, and staff alike for meeting certain predetermined goals. Most of these goals are based on financial objectives. On the surface, this would seem to be a normal “cause and effect” construct. Motivate the team by setting a profitability target. If the results of the department meet or exceed the target…rewards will follow. Although issuing rewards for meeting monetary targets seems intuitive and motivating, it carries with it an inherent risk in a multi-departmental environment. Although we want to keep our leaders aware, connected, and engaged, the profit-oriented goals we set for them are based on a “zero-sum game”. As I mentioned earlier, resources are finite, and the clock is ticking. If I am rewarded only if I achieve my departmental objective, then I will resist all attempts at deploying my limited resources toward anything except MY objective. Long ago I had a division manager that was fond of telling his departmental managers: “It’s not important to me HOW you make your numbers…. just MAKE YOUR NUMBERS!” This is the prime example of results-based thinking (punctuated with the stick instead of the carrot). The inference was not so much that rewards would follow success, but rather that unemployment would follow failure! This guy was teaching the class in short-term thinking, and unsustainable results. The way that his managers ultimately “made their numbers” was by reinforcing their silos, many times at the expense of both the dealership and the customer. How can we get our people to view the dealership’s resources in light of the customer’s needs, rather than their own? In order to reverse this trend, I believe that we have to realign the reward system. The right behaviors The value of my next suggestion will be predicated on your belief in the maxim that “the right BEHAVIORS, generally create the right results”. Wrapping your reward systems around behaviors rather than bottom-line profitability is more difficult, but it comes with decided advantages. If my reward system is connected to behaviors, it’s infinitely easier for leaders to embrace the CX standard. Customer satisfaction becomes the FOCUS of your interaction. No longer is customer interaction a burden to be avoided, but rather an objective to be achieved. Managers are more willing to embrace the entirety of their responsibility because their rewards are based on specific behaviors that foster natural success. The dealership loses nothing in the process. Reward amounts can still be BASED on results. The difference lies in the fact that the criteria for accessing the reward are not found in a singular metric (make your numbers). It is instead earned by properly performing duties in a customer-centric environment. Managers can actually be developed with this type of system. The behavior-reward matrix can evolve as the manager gains experience and skills, and the whole system can be continuously calibrated toward your CX objectives. Example: Service Manager Results based compensation: Quarterly Objective Grow service profits by 10% YoY Earn 2% of service NOP Grow service profits by 15% YoY, Earn 3% of service NOP Grow service profits by 20%+ YoY, Earn 4% of service NOP This is a standard cause-and-effect motivation platform. If profit growth is the only objective, how can the manager ensure that they will earn the top reward? What is the most likely course they will follow to create profitability growth of 20%? If results matter, but behaviors don’t, the answer is likely to be – by the easiest means possible. Avoid maintenance to the rental fleet Avoid expenditures on the LTRFM Fleet Avoid internal work altogether Use aftermarket parts to lower pricing and sell more labor Increase fees Avoid training Avoid investments in tools This is not the way to build sustainable results. Short-term, silo-based thinking creates an unhealthy “every man for himself” culture, driven from the top-down. When the focus is on behaviors, development and efficiency are rewarded. We are likely to adhere to best practice SOP’s. This results in
Expose yourself to No and Not Now to get to yes
97% of all sales are not made on the first call. It takes five to ten exposures (follow-ups) to a prospect to make the first sale. The prospect may not actually say “no” each time, but each time you follow-up and the prospect doesn’t buy, he’s saying: “not now, buddy; do something else for me; I’m still shopping around; I haven’t met with my partner; try again later; in short, you haven’t sold me yet”. As a professional salesperson, you better have what it takes to persevere through the follow-up process and not quit. Be willing to put forth the effort to get to the last “no,” or consider taking a job in a warehouse with a salary. Here are some follow-up guidelines to ensure early closing success… Know the real reasons your prospect wants your product. Know the real reasons your prospect does not want your product. Know your prospect’s hot buttons (things you think will make the prospect buy), and work with them in constructing your follow-up plan. Present new information relative to the sale each time you call or visit. Be creative in your style and presentation manner. Be sincere about your desire to help the customer first, and earn the commission second. Be direct in your communication. Beating around the bush will only frustrate the prospect (and probably cause him to buy elsewhere). Answer all questions. Don’t patronize the prospect. Be friendly. People like to buy from friends. Use humor…Be funny. People love to laugh. Making your prospect laugh is a great way to establish common ground and rapport. When in doubt, sell the prospect for her reasons, not yours. Don’t be afraid to ask for the sale each time. If there were a formula for following up, it would be… their reasons + new information + creative + sincere + direct + friendly + humor = SALE…but there isn’t an exact formula. Every follow-up is different, and elements from the above guidelines must be chosen as called for. Here are a few lead-in lines you might try so that you don’t feel uneasy about how to start the conversation… I discovered something that I believe to be an important factor in your decision… I’m just emailed you a note from a customer who had an experience like yours… Something new has occurred that I thought you would like to know about… There has been a change in status… I was thinking about you, and called to see if you found about… Don’t say, “I called to see if you got my letter, proposal, info, or sample…”, it sounds dumb… and it gives the prospect a way out. If he doesn’t want to talk to you, he’ll say, “No, I never got it.” Where does that leave you? Nowhere. Why not try: “I sent you some (name the stuff) the other day and I wanted to go over a couple of things with you personally because they weren’t self-explanatory…” Some salespeople fear that they’re “bugging” the prospect if they call too often. If you feel that way, it’s for two reasons: You haven’t established enough rapport and have limited access. Your follow-ups are about selling and not about helping. It’s likely you won’t bug the prospect if… He’s a salesperson himself; you have something new, creative, or funny to say; you’re short and to the point; he’s genuinely interested in your product or service; he returns your calls right away; or, he likes you. It’s likely you will bug the prospect if… You call more than three times without a returned call; you ask dumb or pushy questions (probably because you didn’t listen well in the first place); you are perceived as insincere; you exert pressure too soon or too often; or, you are in any way rude to the prospect or anyone on his staff. Follow-up is another word for sale. Your ability to follow up will determine your success in sales. Ask any professional salesperson the secret for success, he or she will answer… persistence. 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.
172 New Distribution and Supply Chain Planned Industrial Project Reports – September 2021 Recap
SalesLeads has announced the September 2021 results for the newly planned capital project spending report for the Distribution and Supply Chain industry. The Firm tracks North American planned industrial capital project activity; including facility expansions, new plant construction, and significant equipment modernization projects. Research confirms 172 new projects in the Distribution and Supply Chain sector. The following are selected highlights on new Distribution Center and Warehouse construction news. Distribution and Supply Chain – By Project Type Distribution/Fulfillment Centers – 58 New Projects Industrial Warehouse – 147 New Projects Distribution and Supply Chain- By Project Scope/Activity New Construction – 86 New Projects Expansion – 38 New Projects Renovations/Equipment Upgrades – 54 New Projects Closing – 5 New Projects Distribution and Supply Chain – By Project Location (Top 5 States) New York – 13 Texas – 12 California – 11 Ohio – 10 Florida – 10 Largest Planned Project During the month of September, our research team identified 3 new Distribution and Supply Chain facility construction projects with an estimated value of $100 million or more. The largest project is owned by AEsir Technologies, Inc., which is planning to invest $250 million for the construction of a manufacturing and distribution complex in RAPID CITY, SD. Construction will occur in phases. They will relocate operations upon completion. Top 10 Tracked Distribution and Supply Chain Project Opportunities Arkansas: Pet food mfr. is planning to invest $117 million for a 47,000 SF expansion and equipment upgrades at their warehouse and processing facility in FORT SMITH, AR. Completion is slated for 2023. Texas: Online clothing and accessories consignment retailer is planning to invest $70 million for the renovation and equipment upgrades on a recently leased 600,000 SF distribution center in LANCASTER, TX. Completion is slated for Spring 2022. Vermont: Computer equipment mfr. is planning to invest $50 million for the construction of a 125,000 SF warehouse and manufacturing facility at 88 Technology Park Way in SOUTH BURLINGTON, VT. They are currently seeking approval for the project. Construction is expected to start in Summer 2022. New York: A beverage company is planning to invest $50 million for the renovation and equipment upgrades on processing, warehouse, and office complex at 50 Broad Street in ROCHESTER, NY. Renovations are expected to start in 2022. They will relocate operations upon completion in Spring 2024. Oklahoma: Online car retailer is planning to invest $40 million for the construction of a 190,000 SF warehouse and service facility in OKLAHOMA CITY, OK. They have recently received approval for the project. Washington: Furniture mfr. is planning to invest $35 million for expansion of their warehouse and distribution center at 20623 34th Ave. E in FREDERICKSON, WA by 400,000 SF. They are currently seeking approval for the project. Ohio: An Automobile storage provider is planning to invest $30 million for the construction of a 188,600 SF warehouse and storage complex in NEW ALBANY, OH. Construction will occur in phases, with the completion of the first phase slated for early 2022. Texas: A Food bank is planning to invest $30 million for the construction of a 100,000 SF refrigerated warehouse and distribution facility in CORPUS CHRISTI, TX. They are currently seeking approval for the project. New York: Technology and logistics firm is planning to invest $28 million for the renovation of their distribution and office facility in BUFFALO, NY. They have recently received approval for the project. Minnesota: Boat mfr. is planning to invest $25.4 million for the construction of a 182,000 SF warehouse and manufacturing facility at 18040 US-10 in BIG LAKE, MN. They have recently received approval for the project. They will relocate operations upon completion. The site will allow for a future 50,000 SF expansion. 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.
Global Plastics Ranking™: China, the U.S., and Germany Lead
The Plastics Industry Association (PLASTICS) recently issued its 2021 Global Trend Report. This PLASTICS’ flagship publication takes a deep dive into the U.S. plastics trade with the rest of the world during the previous year and the first six months of the current year. It also provides a snapshot of the international plastics and rubber trade. Additionally, it includes a plastics trade forecast. Moreover, starting in 2018, the report began including PLASTICS’ Global Plastics Ranking™—a ranking of the top-100 countries in the global plastics trade as determined by trade volume. It is also a measure of plastics intensity in each nation’s economy. Countries’ exports and imports of plastics resin, products, machinery, and molds are used as proxies of their production and consumption of plastics. In 2020, China ranked first followed by the U.S. and Germany. These countries have retained the top three positions as the world’s leaders in global plastics since the Global Plastics Ranking™ began. PLASTICS estimates China’s 2020 plastics trade volume at $180.2 billion. The plastics trade volume of the U.S. and Germany are estimated at $129.6 and $110.9 billion, respectively. The U.S., however, ranked third after Germany in 2018. But in the last two years, it has overtaken Germany. Considering that plastics is a mature industry, its growth will track economic output growth measured in gross domestic product or GDP. For this reason, it is not unusual to see the world’s strongest economies as key players in the global plastics trade. As China’s economy expanded so did its industrial sector, which includes plastics. China’s GDP growth averaged 8.7% from 2001 to 2020. Over that period, the global share of China’s exports of plastics and products thereof—as broadly classified under the Harmonized Tariff Schedule (HTS) 39—has grown significantly from 4.0% in 2001 to 16% in 2020. With a growing middle class, it is expected that consumption would be a higher share of China’s GDP in the coming years. This means higher growth for production and imports of plastics. China’s share of world imports of plastics has increased from 8% in 2001 to 11% in 2020. While the U.S. economic growth between 2001 to 2020 averaged 1.7%, it remains the world’s largest consumer of goods manufactured from other countries. 70% of U.S. GDP is consumption. The U.S. share of world plastics imports (HTS 39) has remained stable at around 10% from 2001 to 2020. Its export share of plastics (HTS 39) decreased from 14% to 10% over the same period. As a $19.0 trillion-plus economy, it is expected that the U.S. will remain a key player in the global plastics industry. Germany’s role in the global plastics industry is anchored on innovations in plastics machinery and engineered resins. Its manufacturing sector is replete with opportunities for new products and new applications for plastics. For this reason, alongside a growing economy, Germany’s role in the global plastics trade will remain significant. PLASTICS estimates Germany’s 2020 plastics trade volume at $110.9 billion. Like the U.S., Germany’s share of global plastics exports decreased from 13% in 2001 to 11% in 2020. Its share of global plastics imports has averaged 7.3% between 2001 and 2020 – with a high of 8.0% in 2008 and a low of 6.9% in 2004. Compared to the U.S., the percentage of consumption in Germany’s GDP is low at 49.5% in Q2 2021 and 50.9% for a Q2 2020. In the global plastics trade, trade agreements matter for the U.S. Its largest plastics trade partners are Mexico and Canada. All three economies have benefited from U.S.-Mexico-Canada trade agreements, beginning in 1992 with the North American Free Trade Agreement (NAFTA) and now with the United States-Mexico-Canada Agreement (USMCA). Last year, Mexico and Canada were up a notch from 2019 in the Global Plastics Ranking™. Both countries made it in the top ten with Mexico in the 9th and Canada in the 10th spot. We estimate the plastics trade volume in Mexico and Canada at $33.5 and $30.9 billion, respectively. The economies of USMCA partners are projected to improve this year and the next. Considering that the manufacturing value chains of these countries are linked, it can be expected that the plastics trade among the three free trade partners will rise. There are up-and-coming global players in Global Plastics Ranking™. One of which is Vietnam. In 2020, Vietnam was ranked 16th—up from 20th in 2019. Vietnam’s plastics trade volume rose to $22.4 billion as exports strengthened due to its labor cost advantage over other countries. India dropped to 19th from 16th in 2019. And Turkey completes the top-20 countries replacing Saudi Arabia. As discussed in the 2021 Global Trends Report, the key players in the global plastics trade will continue to face challenges on different fronts. But it is obvious from the rise of other countries into the global plastics ranking that global plastics demand has been and is expected to remain healthy considering its cost-advantages over other materials and many applications across manufacturing and service industries. For the plastics industry, the world is our market. The Global Plastics Ranking™ was trademarked by Perc Pineda, Ph.D. for the Plastics Industry Association. The 2021 Global Trends Report can be accessed by PLASTICS members and is available for purchase by nonmembers here.
Why your data isn’t helping you make decisions
We all like to have data to support our decisions. But we tend to look at this myopically – a decision needs to be made, and we simply need some data to justify it. True, almost everyone, from retail companies to agricultural manufacturers, strives to make data-backed decisions, but what is the right way to use data to make better, more accurate decisions? It begins with understanding what type of data you need for a particular decision. If you need to find the cause of a problem or predict what will happen in a specific part of your business, the type of data you choose is essential to success. For instance, when you want to see what trends occurred in your business in the last quarter and find the data-backed explanation for them, descriptive and diagnostic data will come in handy. But in case you want to build a strategy or even shape the future of your business, predictive and prescriptive analytics will be much more applicable. Here are the four types of data and how they can help you make better decisions: Descriptive Data Descriptive data answers the “what happened” question. Think of an e-commerce store owner who wants to know what products were the least popular in California during the Christmas season. Descriptive data identifies information on what items people were least willing to buy in that period. It provides a historical view of past performance and is typically easy to capture. Diagnostic Data While descriptive data shows us what happened, the diagnostic data answers the question of why it happened by seeking a cause-and-effect relationship. With diagnostic data, you can quickly identify patterns and how different factors relate to each other. For instance, marketing departments can use diagnostic data to define why some campaigns were more effective than others. Predictive Data Predictive data uses historical or current data to forecast potential outcomes. For most companies, this is where the “magic” happens. Predictive data is more complex than descriptive and diagnostic data, and it always requires data scientists’ expertise. For example, Vodaphone decided to offer special deals on plans and roaming to the clients who were most likely to go skiing. To define those clients, Vodafone’s analysts built a predictive model trained on the data of the people who had been using their phones at major ski resorts throughout Europe in the past. Prescriptive Data Prescriptive data is based on predictive data but supplements its outcomes with recommendations for the future. In other words, this type of analytics answers the question “How to make something happen?” providing decision-makers with the optimal action plan. For instance, airline companies can constantly adjust ticket prices depending on ever-changing factors like weather conditions, fuel prices, and customer demand. Every type of data is intertwined with the others in the analysis cycle. The latter gives businesses answers to questions like what happened, why it happened, what could happen next, and how to make something happen. By using descriptive and diagnostic data, you can clearly identify what brought you to your current state. Meanwhile, predictive or prescriptive data will provide you with a clear vision of future perspectives. All these types of data have their function – it’s up to you to understand the decision you’re trying to make, and what you need to make it. 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 and No Disruptions: The future for mid-market manufacturing. 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, Industry Week, and more. Andrea is a sought-after keynote speaker at conferences and corporate events throughout the world. She is a visiting lecturer and Director 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.
Women In Trucking Association announces finalists for 2021 Influential Woman in Trucking Award
The Women In Trucking Association (WIT) and Freightliner trucks announced today three finalists for the 2021 Influential Woman in Trucking award. This is the 11th year for the award which was developed in 2010 as a way to honor female leaders and to attract and advance women in the trucking industry. The award highlights the achievements of female role models and trailblazers in the trucking industry. The 2021 Influential Woman in Trucking award finalists are: Eileen Dabrowski, Director of Learning, Development and Marketing, ReedTMS Logistics Lily Ley, Vice President and Chief Information Officer, PACCAR Amanda Schuier, Chief Operating Officer, Quality Transport Company Eileen Dabrowski is a Ph.D. Candidate from the University of South Florida with a concentration in Curriculum & Instruction. She currently serves as the Director of Learning, Development & Marketing for ReedTMS Logistics, a family-owned and operated asset-based 3rd party logistics solutions provider. Dabrowski has been in the transportation/logistics industry since 2016 and oversees the development and facilitation of all company-wide training programs, new employee onboarding, leadership development, marketing projects/ReedTMS brand integrity, and event planning for the company. She also spearheads company philanthropy initiatives and works hard to maintain and improve employee culture and morale. Dabrowski believes in mentorship and women taking the time to build each other up, not down. She is also an advocate for diversity and inclusion in the workplace and believes for the trucking industry to be more supportive and inclusive for all, you must teach children about trucking and work with organizations like WIT to collaborate and showcase the women and minorities who are crucial to the success of the industry. Outside of work, Eileen lives with her spouse, four dogs, and a tortoise in Tampa, Florida. She enjoys traveling, staying active, and volunteering in the community. In 2020, during the pandemic, Eileen took the initiative to become a healthier version of herself so she could better serve others and lost over 50 pounds. Running, boxing, weight lifting, and reading are some of Dabrowski’s favorite self-care activities. 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. Amanda Schuier is a fourth-generation trucking industry member, and the first female in her family to hold such a role. She has been involved in trucking since 2006. Her numerous roles in the industry have included positions in marketing, sales, driver recruitment, and operations at the dealer, supplier, and fleet levels. She recently assumed the role of Chief Operating Officer at Quality Transport Company. Her daily duties at Quality include oversight of sales, dispatch, driver relations, safety programs, and new technology initiatives for the company. She is passionate about mentoring other young women as they explore careers in transportation. Schuier is actively involved in the Technology and Maintenance Council (American Trucking Associations) and currently serves as the Study Group Chairman for the Fleet Maintenance Management Study Group. She is only the fourth female Study Group Chairman in the history of the organization. She is currently a director at large, elect, assuming the role in March of 2022. Recently, she began serving a two-year term on the American Transportation Research Institute’s Research Advisory Council. She is also a proud member of Women In Trucking and the Truckload Carriers Association. Schuier was honored as a recipient of the 2017 class of Emerging Leaders in Transportation, as published in Heavy Duty Trucking magazine. She is a 2019 inaugural class graduate of the TMC Leaders of Tomorrow program. In 2020, she received the Women In Trucking’s “Top Women to Watch” award. She was also one of Fleet Owner Magazine’s 2020 “Women Leaders in Transportation.” In 2021, she was named to the “Women in Supply Chain” by Supply & Demand Chain Executive Magazine. During the Pandemic, Schuier trained with the Medical Reserve Corps to volunteer as a health screener at COVID vaccination clinics throughout the Kansas City area. She resides with her family in Kansas City. All three finalists will participate on a panel at the WIT Accelerate! Conference & Expo held in Dallas, TX, Nov. 7 – 9, 2021. The winner will be announced after the panel discussion, “Inspirational Stories: How to Power Your Career” on Tues, Nov. 9 at 10:00 am CST.