New Bike-Walk Path open at Long Beach Waterfront
The recreational route extends the bicycle network into working Port City and Port officials on Sunday officially opened and dedicated the newest addition to the growing Long Beach bicycle network – the South Waterfront-Pier J Bike and Pedestrian Path, which extends through the Queen Mary area and into the Port. The Long Beach Harbor and Public Works departments collaborated on the project. The path runs from the south end of the Queensway Bridge and into the Port of Long Beach’s Pier J area along South Harbor Scenic Drive. The path includes new bike lane markings, informational signs, two observation decks, and bathroom facilities and provides the community a new way to safely access the Port by bicycle and on foot. “The new Bike Path is a welcomed addition to our biking infrastructure, and supports Long Beach as being one of the most bike-friendly cities in America,” said Mayor Robert Garcia. “I am proud of our continued focus on creating active transportation options, and accomplishing this joint infrastructure project completed by the Port of Long Beach and Public Works.” “We couldn’t be happier that this new path offers greater access to the Port and strengthens our connection to the City. I’m proud of the collaboration between Port and City staff to execute such a vibrant, community-focused project,” said Port Executive Director Mario Cordero. “We’re thrilled to open this new section of the bike path. We’re dedicated to this great City and our Port, and it’s especially gratifying to reach milestones like this one,” said Long Beach Harbor Commission President Frank Colonna. “Public Works always looks to prioritize pedestrian and bicyclist safety, and is focused on expanding the City’s biking infrastructure throughout Long Beach,” said Public Works Director Eric Lopez. “This project brings the first designated bike path to the Port of Long Beach, creating a vital connection to the City’s bike paths and expanding bike access to all residents.” Funding for the $18.2 million project was provided by LA Metro, the California Transportation Commission, Caltrans, and the Port of Long Beach. Bike and walk path users can share their feedback about the new path by filling out this short survey. The Port of Long Beach is one of the world’s premier seaports, a gateway for trans-Pacific trade and a trailblazer in goods movement and environmental stewardship. With 175 shipping lines connecting Long Beach to 217 seaports, the Port handles $200 billion in trade annually, supporting more than 575,000 Southern California jobs.
3PL Warehousing Professionals elected to IWLA
New Jersey Exec named Chairman of the Board Members of the International Warehouse Logistics Association (IWLA), the resource for warehouse logistics, recently elected Jared Stadlin, president, Linden Warehouse and Distribution Co. Inc., Linden, N.J., as the association’s 2021-2022 chairman. IWLA is the only supply chain industry association focused solely on the needs of third-party warehousing providers. “Jared Stadlin’s unique background in law and logistics are a valuable asset to the 3PL industry and to IWLA,” says IWLA President & CEO Steve DeHaan. “His work with the IWLA Insurance & Legal Committee helped us better define the industry’s standard terms and conditions – and he drove the creation of new benefits for all warehouse members. He also continues to help regulators and legislators understand the importance of warehouse logistics by participating in the IWLA Government Affairs Program.” Stadlin holds a bachelor’s degree in business administration from the University of Michigan and a doctor of law for New York University. Stadlin previously served as the association’s vice-chairman. He succeeds Leslie Ajlouny, CMO, Evans Distribution Systems, Melvindale, Mich. “My involvement [in IWLA] is simply an opportunity to spend time working with and for individuals I respect, and whose company I enjoy,” Stadlin says. IWLA members also elected other officers: Vice-Chairman: Scott Mayfield, President & CAO, Kenco Logistic Services, Chattanooga, Tenn. Convention Officer: Peter Wilson, Chairman & CEO, Sonwil Distribution Center, Buffalo, N.Y. Secretary/Treasurer: Daryl Lester, Vice President & Partner, Simtech Supply Chain Management, London, Ontario, Canada These directors also join the board for the 2021-2022 association year: Carol Keup, COO, Valley Distribution & Storage Company, Wilkes Barre, Pa. Tom Landry, President, Allegiance Staffing, Spring, Texas (Partner Representative) Seth Schmedemann, President, Fulcrum Logistics, Portland, Ore. Stadlin will lead the postponed 2021 IWLA Convention & Expo Nov. 1-3, 2021, in San Antonio, Texas. He will remain IWLA chairman until the 2022 IWLA Convention & Expo, May. 2-4, 2022, in Amelia Island, Fla.
Job Shock: Solving the Pandemic & 2030 Employment Meltdown Part IV: A New Time Bomb: An Explosion of Skilled Worker Shortages
It is already apparent that as COVID-19 restrictions ease, pent-up demand for many types of goods and services will be unleashed. As businesses reopen or expand to meet this boom, the demand for skilled workers will soar. It is not likely to fall for the rest of this decade. As cited in prior “Job Shock” segments, a major demographic shift, serious education deficits, and rising job-skill demands have combined with COVID-19 to undermine the quality and composition of the U.S. labor force. An April 2021 National Federation of Independent Businesses survey found that 44 percent of small businesses had job openings they could not fill, a record 22 percent higher than the 48-year average for this survey. Ninety-two percent of businesses seeking workers reported few or no qualified applicants. The U.S. Bureau of Labor Statistics reported that there were a record 8.1 million job openings at the end of March 2021. We estimate the true number to be over 11 million. Employers Face Mounting Skills Challenges COVID-19 has greatly increased the need for skills training. The shift to remote work has placed new skill demands on many employees. Because of the pandemic’s devastating effect on certain industries, about 20 percent of U.S. workers have left their former jobs for new types of work. A March Prudential Pulse of American Worker Survey found that about one-quarter of the workers surveyed plan to look for a different job with another employer once the current crisis eases. All these factors indicate that employee training must be greatly increased. A significant shift in the priorities of American businesses is urgently needed. In recent years business expenditures on training and education have declined. For every dollar America’s chief foreign competitors invest in employee talent development, U.S. business invests only 20 cents. Training is mostly concentrated on managers and professionals. Only about 20 to 30 percent of U.S. employers have offered entry-level job training or provided employees with training updates. Much of what is now done is mandated by safety regulations. It is not about building new skills. A recent McKinsey Global Survey found that 69 percent of businesses were doing more skill-building than they did prior to the pandemic. However, only 28 percent of these organizations had a training department or similar facility focused on learning. The organizations that employed a variety of education/training methods reported a higher rate of success in reskilling and upskilling their employees. Even though COVID-19 has greatly increased the need for entry-level training and reskilling, many businesses are again expanding stock buy-backs and increasing dividends rather than investing in worker skills. American companies and organizations instead need to launch new HR initiatives to fill skilled job vacancies and upskill their existing employees through a variety of means including corporate universities and training partnerships. Human and Financial Costs Job Shock will have a major economic impact in the United States and globally. In 2030 estimated U.S unfilled jobs range from 25 to 30 million. Globally over 95 million jobs could be vacant. The financial costs for individuals., businesses, and nations will be staggering. By 2030 U.S. GDP loss could be over $2.5 trillion. Global losses might reach $18 trillion. Job Shock: Where Do We Go from Here? The picture that emerges from before, during, and after the COVID-19 crisis is an American workforce with an abundance of people, but a shortfall of talent for the jobs of the Fourth Industrial Revolution. An analysis of the composition of the U.S. labor market at the beginning of 2020 and projecting what it might be like in 2030 if the education-to-employment system remains unchanged shows: Seventy percent of jobs (114 million) were high to mid-skill. Only 55 million workers were qualified. The result was a 60 million job deficit. American employers tried to fill these vacancies with retired baby boomers, workers brought from other countries, foreign students attending U.S. universities, and/or the increased use of automation. Companies unable to find skilled talent moved their jobs abroad. Thirty percent of all jobs (50 million) were lower-skilled. There were 110 million workers at that level, i.e., with limited math and reading competencies. The result was a 60 million worker surplus. Many gave up looking for a job (and thus were not counted as unemployed) because they were not offered entry-level job training. The 10.5 million estimated vacant jobs cost the United States $253 billion in lost productivity and profit. At least 75 percent of jobs (128 million) will be high to mid-skill. Only 33 percent of American workers (about 56 million) will be qualified for these jobs, resulting in a 72 million job deficit. The U.S. skilled labor shortage will deepen because 70 million baby boomers will have aged out of the workforce, a global 50 to 95 million skilled worker shortage will limit immigration to the United States, and increased automation will demand ever higher skill levels from workers. The pace of companies leaving the United States due to skilled talent shortages will rise. In contrast, 25 percent of U.S. jobs (32 million) will remain low-skill. If education and skill upgrades are not adopted over this decade, possibly 114 million low-skill people will be in the U.S. labor force. A huge “techno-peasant” underclass will compete for a diminishing number of low-skill jobs. High unemployment coupled with mounting skill shortfalls could pose a real threat to American social stability. An estimated 30 million vacant jobs are possible. The economic loss to the U.S. economy will be between $ 1 trillion to over $2.5 trillion. The Job Shock Crossroad We do have the power over this decade to increase the education and skills of American workers. We can produce a workforce that meets the talent requirements of 2030. It does require coordinated actions from key sections of our society. Picture the American talent creation system as a boat with two figures pulling the oars and a third at the rudder. Parents are the rudder steering a better course for their child’s future. One oar is pulled
Local employers receive National Recognition, Awards at PLASTICS 2021 Spring Meeting
The PLASTICS Industry Association (PLASTICS) this week announced the winners of its first annual PLASTICS Member Engagement Awards as part of the association’s 2021 Spring Meeting. The meeting gathered plastics experts from across America to share best practices, hear from industry and government leaders and gain valuable insights from PLASTICS specialists on economics and government affairs. The awards were presented by Tony Radoszewski, president and CEO of PLASTICS in recognition of association members who have shown exceptional dedication to the goals and mission of the plastics industry. “It is extremely important to recognize members who have provided outstanding service to the association and to the industry overall,” said Radoszewski. “The PLASTICS Member Engagement Awards are an opportunity to provide that well-deserved recognition this year and in years to come.” Awards were presented to the following: Ultra-Poly Corporation (Portland, PA) Kevin Cronin, Vice President of Sustainability and R&D at Ultra-Poly and 2021 chair of the PLASTICS Recycling Committee, was recognized for becoming quickly and wholeheartedly involved with the association, including a case study focused on Ultra-Poly’s innovative recycling program for automobile bumper fascia. “It’s always energizing to work with smart and dedicated people, and my experience representing Ultra-Poly at PLASTICS has allowed me to do just that,” Cronin said. “We have an opportunity as a company to join a number of different organizations and the responsibility of recommending which one fell to me,” Cronin said. “PLASTICS, I believe, made the most sense. We have not looked back on that, even a little bit. We continue to remain engaged. It’s a great pleasure, very humbling really, to receive this award.” “The bumper recycling program demonstrates the commitment the industry and the association has to developing novel and viable recycling programs to reduce the negative impact of plastic solid waste,” said Cronin. Zeiger Industries (Canton, OH) Stan Glover, Director of Technical Sales at Zeiger and member of the association’s Board of Directors, was honored for 30 years of commitment to PLASTICS, with special mention of his deep involvement in the creation of state, federal, and international machinery safety standards. “PLASTICS has been an integral part of my professional career and without Zeiger Industries’ support, I wouldn’t have been able to participate like I have,” said Glover. “The support I get from PLASTICS’s staff, whether it be at the domestic or international level, government affairs or setting up the meetings that are so important for the equipment council and its members is really key to the success of our member’s engagement.” Manar Inc. (Edinburgh, IN) Michael Cirone, president of Manar, PLASTICS Board of Directors member, and current chair of the PLASTICS Processors Council was recognized for enthusiastic member recruitment and his exceptional level of activity in forming and growing the association’s Transportation and Industrial Plastics Committee (TIP). “We really appreciate the award,” Cirone said. “It’s been a tremendous pleasure working with PLASTICS these six years, a tremendous honor for me and for Manar to be working with this great organization. I look forward to continuing to drive our TIP programs forward, especially what we have going on in recycling.”
2021 MHI Next-Gen Supply Chain Update – Episode One: Innovation Driven Resilience
In this year’s report, we break down the challenges of managing disruption into three major phases: Respond, Recover, and Thrive. Each explores how digital supply chain innovations support the evolution to increased resilience. To view the video, click here.
The Sales Actions to be remembered are the one’s brought
Often what makes people buy are the little things. Little memorable things. Little memorable things repeated over time that builds enough goodwill, value, confidence, and trust to affect a sale. How memorable are you? How memorable are your actions? How many surprises do you create? How much magic do you make? If you’re not sure of the answer, ask yourself these (fighting) questions: Am I beaten by competition regularly? Am I arguing and fighting price constantly? Am I fighting to get my calls returned? Am I fighting for sales? Yes, to any of these means on the “memorable scale” your rating is in the “not very” category. Opportunities to surprise and create positive memorable actions are everywhere. Before, during, and after the sale. Your job is to identify them and take action. Here are 16.5 surprise elements (broken down by sections of the sales cycle) that can make or break the sale: Building value first… Get them leads or business. Stop by for fun. Deliver the name of someone interested in doing business with them. The next time you call, they won’t know whether you’re buying or selling. WOW. Help them build their business so you can earn yours. Have new information and answers. Get your prospect surprise information. Information to make them think. Information that lets them know you’re thinking about them. Send something funny to make them smile and think of you in a positive way. Leave half of a message. Pretend you got cut off right at the good part (be sure to leave your name and number first). Set the sales stage… Have a personal welcome. A big banner, not one of those dinky signs with the letters that look like a menu board in a cheap restaurant. Give a gift. Something that the prospect can relate to. Something that matches his or her personal interests. Something that will make her smile. Show unbelievable enthusiasm. Enthusiasm breeds smiles and confidence. People like to be around upbeat happy people. Not many people are happy. Those who are happy, stand out. Do you? Have a contagious attitude. Attitude is the root of enthusiasm. You become what you think about. The self-confidence and self-belief you display are the basis for your credibility your belief system is driven by your attitude. A great attitude is rare. Be rare. During the presentation… Sit in their chair. Pure guts and fun. Get the prospect to leave his or her chair then sit in it. Wait till you see their look. Ask a drop-dead question. A question that makes them stop and think. A question they have never heard before. A question that earns their respect. State it in terms of them (not you). No one cares what you do unless it helps them. Say how you help, not what you do. 11 Know something personal or something about/for them. Show them you know. Show them you took the time to find out. Serve great food. Everything you say, do, give and serve is a reflection of you and your image. You make an impression with every action. Serve the best to be perceived as the best. It only costs about 20 bucks to create a lasting conversation piece. Associate you, your company, and your product with the word BEST. Off business experiences… Memorable meals. Surprise them by arriving at their favorite restaurant. Have their favorite food delivered to your office and work through lunch. Tickets. Ball games and theater are wonderful memory builders. The secret is to GO WITH THEM. Giving two tickets to a prospect defeats the process and ruins your chance to establish a personal information advantage. Another great place to go is your area planetarium (surround screen theaters). Take the prospect and his family on a weekend you’ll have a memory and an order. Mini Events. Meet the prospect at the (golf) driving range. Hit a bucket of balls and eat a fast lunch. Great way to play golf and make a deal without killing the whole day. Three-way a lunch with a prospect for them.Can’t get the prospect to meet with you? Get a prospect or connection that can help your prospect to eat with you, and watch the decision change in about two seconds. And the secret glue… 16.5 The link: use it if found. When you find out what you have in common with the prospect, you have a distinct competitive advantage. It may be the advantage that swings the sale. Golf, college, children in the same activity, vacation spot, hometown. Anything you both like or do. One last note: When it’s over, say “thank you” in a memorable way. Everyone says thank you. Your job is to say it and be remembered for saying it. A gift, a personal note, a referral. Creating magic moments is critical to the repeat business and referred business you get. The easiest way to identify your magic is to list your magic. If your list is short make some. 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.
Are we on “AUTO” matic?
Back in the old days when OEMs, Dealers, Customers, and Banks sought to seek guidance in their crystal balls related to the near and long-term future of the lift truck industry, there would be studies and discussions, and meetings arriving at potential various outcomes. But eventually, at some point during these discussions, before notes and white papers were prepared, someone would always ask “Let us see what the auto industry is doing because whatever they do, we (the lift truck industry) will wind up doing much of the same, maybe not at the present time but within 3-5 years or so. Remember those conversations? I do. And I remember how true that statement was as equipment dealers eventually mirrored the auto business. Let us face it, a lot of what the auto industry did was beneficial when applied to the lift truck industry, even though some of what they offer up did not fit in well because of the difference between the retail and industrial customer base. In the end, I believe the lift truck industry (and other equipment OEMs and dealers) owe a lot to the auto industry for leading the way in terms of manufacturing efficiency, the just-in-time building process, financing, and leasing programs. Lift truck OEMs and dealers who followed “autos” lead benefited with better profits, cash flow, and company valuations. But reviewing the current status of the auto industry leads me to believe that if our industry follows their current outlook (not of their making) there are a lot of negative issues you will need to deal with a lot sooner than the historical “normal” 2–5-year catch-up period. Auto dealers are having trouble selling cars. Not that they do not want to sell them and not because the demand is not there, because it is. The problem is a shortage of inventory because of those microchips we have been hearing about. Auto OEMs have actually been building vehicles and parking them before they are finished because they need chips to complete the build. A lot of “inventory” to finance! And once auto OEMs closed down manufacturing locations due to the pandemic and canceled their chip contracts the just-in-time process hurt them because they had no inventory to draw from. To make matters worse the chip manufacturers went out and found new business to replace the auto business and are not in a position to supply auto production at the levels needed. In short, when they eventually get chips, they will be upgraded chips at a much higher cost. Imagine that. So, the shortage status remains status quo. Along with the chip availability and cost, there are other cost increases to consider. Steel up 180% Aluminum up 60% Copper 80% Etc. Most auto components are increasing in price with an assurance that prices will wind up higher than they currently are even after the pandemic impact subsides. In other words, HIGHER STICKER PRICES. These cost issues will make it tougher to sell cars because of price increases, even though up to this time you could “hide” price increases somewhat because interest rates and the cost of borrowing so low, which made payments more manageable. Maybe that is about to change as well. I know it is hard to believe but interest rates will increase, and it appears that may be sooner rather than later. Couple that with the price increases of vehicles (because of cost increases) and those manageable payments will become a lot harder to stomach, which could lead to fewer sales. For an industry with tight margins, this is not good news. So back to our “let’s see what the auto industry is up to” question. I have to think that your OEMs have to be in the same boat. Right? And if that is correct you are also in the same boat. Right? This is how see it: New equipment costs increase Higher parts cost Higher interest rates applied to floor plans and future rental unit purchases Some good news …used equipment values should increase Monthly lease payments will increase Lease maintenance will increase because of higher parts costs Overall financing contracts will contain rate increases Taxes will increase in some way, shape, or form Customers will have more reasons to “shop” What did I miss? What should I delete? I would like to know. In the end, it will be interesting to see how the Auto Industry handles this using a magic solution found in their crystal ball. What do you think is going to happen? Last month I was kind of kidding when I mentioned receiving payments in Bitcoin. But one month later maybe I was not kidding. About the Author: Garry Bartecki is a CPA MBA with GB Financial Services LLC. E-mail editorial@mhwmag.com to contact Garry
Essential safety reminders to protect your crews and your bottom line
Brush up on important safety reminders this Forklift Safety Day Forklifts are key to workplace productivity but introduce a variety of hazards—many of which can be mitigated with an educated, proactive workforce. In fact, studies show that roughly 70 percent of all forklift-related accidents could have been avoided with proper training. While Forklift Safety Day provides an opportunity to celebrate workplace safety each year, safety is something that should be top of mind for material handling professionals 24/7, 365 days a year. A simple way to keep crews informed and engaged is by conducting ongoing safety meetings. Here are a few important forklift safety tips to share with crews this June—and throughout the year. Critical forklift safety reminders Complete a routine check of equipment before operating and notify management of damages or problems. Wear personal protective equipment as provided by the employer including hard hats, protective footwear, and high-visibility clothing. Always wear a seatbelt while operating a forklift. It’s important for operators to buckle up while operating a sit-down forklift, as overturned forklifts are a leading cause of forklift-related accidents. Wearing a seatbelt can save operators from being crushed by a machine’s overhead guard or roll cage in the event of an accident. Keep loads within the forklift’s weight capacity. By exceeding the weight capacity of a forklift, employees can greatly increase the risk of tipping the machine. These load capacities can be double-checked in the equipment’s operating manual and are also listed on the machine itself. Operate at a safe speed, use the horn when vision is obstructed, and use caution on grades or ramps. Operators should use the horn to alert pedestrians or other forklift operators nearby to avoid an unnecessary collision. Take corners and turns slowly to minimize the risk of tipping. Set the parking brake, lower the forks, and set any controls to neutral when finished operating. Safely parked machines reduce the risk of unintended movement when left unattended. If a forklift is parked on an incline, employees can further secure the machine with wheel blocks. Different forklift fuels require different safety procedures. It’s important for crews to be aware of fuel-specific safety measures, depending on what they use on-site—this will not only help them get the most out of their equipment and workday but will help prevent potential injuries, too. With 90 percent of Class 4 and 5 forklifts across the United States being powered by propane, it’s important to share proper propane safety practices. Best practices for handling propane cylinders Wear protective gloves. Keep open heat, flames, and ignition sources away from cylinders and refueling equipment at all times. Handle cylinders carefully, making sure not to drop, throw, or drag them. Use proper lifting techniques when lifting cylinders. Safety measures before and after operating propane-powered equipment Inspect cylinders before operation. Check cylinders for rusting, dents, gouges, and leaks. Cylinders that show signs of wear or leaks shouldn’t be used and may need to be replaced, even if within the cylinder’s requalification date. Secure the pressure relief valve on the cylinder. Operators should check that the pressure relief valve fitting is roughly 180 degrees from the forklift’s locating pin. Close the service valves on cylinders when not in use. This helps prevent potential injury around internal combustion engines and unintended fuel loss. Store propane cylinders in a secure rack or cage. The cylinders should be stored horizontally with the pressure relief valves in the uppermost position, and operators should use proper lifting techniques when removing cylinders from storage and placing them onto a forklift. A propane cylinder storage rack should be located a safe distance from heat or ignition sources, away from stairwells and high traffic areas, and protected from exposure to the elements. Fortunately for crews operating propane-powered forklifts, they can lean on their local propane supplier for support. Local suppliers can provide safety training opportunities, inspect cylinders each time they’re exchanged, remove damaged cylinders from service, and repair or replace leaky valves and O-rings on cylinders as needed. Additionally, depending on which refueling option businesses choose, propane suppliers can teach forklift operators how to refill cylinders themselves (on-site refueling) or can refill cylinders for them (cylinder exchange program). Visit Propane.com/SafetyFirst to download PERC’s free safety toolkit or to learn more about propane forklift safety. About the Author: Matt McDonald is the director of off-road business development for the Propane Education & Research Council. He can be reached at matt.mcdonald@propane.com.
The Service CX
Last month I started a series on the customer experience (the CX). To refresh your memory (or if you missed the last issue), the importance of the CX in recent years has grown significantly. Communication methods, advertising platforms, social media, and evolving customer demands put the CX front and center. I explained last month that controlling and actively managing the customer experience is driven by the needs of our marketplace. Customers want more from us than a simple equipment transaction. They want us to create an environment where material handling is seamless, efficient, and scalable. They want partners in the process, not simply equipment vendors. Ensuring customer satisfaction as a partner…. rather than a supplier, requires a broader focus and a more careful analysis of every customer encounter. Managing the CX begins by envisioning the optimum model for customer interaction. This model may look different in every department. Every employee must be educated as to what customer interactions should look, sound, and feel like. Customer Service (like everything else) needs to be defined. It also needs to be measured with verifiable metrics and performance standards that are understood and adhered to. As we touched on last month, the CX no longer only engages customers simply with products but seeks to forge emotional connections with them. This hierarchy of connection starts with providing data, then moves into actively resolving primary needs, then expands to continuously resolving ongoing issues. The manner in which we do this is designed to engender customer confidence on a long-term basis. It’s not simply an ideology or a theory. It’s a STRATEGY. This month I want to discuss CX functionality in the service department. Many dealers still do not understand the enormous impact that service department interactions have on long-term customer relationships. A service manager I worked with long ago was fond of saying: “The sales department is good at making the promises that the service department has to keep.” I can’t disagree with that. Service truly is where the rubber meets the road. Keeping those promises is predicated on executing your unique CX using the right tools, the right people, the right inventory, the right training, and the right attitude. There are a lot of moving pieces here. Let’s investigate 2 of the most important tools and processes that need to be working at peak efficiency in order to craft and maintain the CX that we want the service department to generate. Data tools Legacy business systems are cumbersome and limiting, but many dealers still depend on them to conduct business. I get it. As a dealer principal, it’s daunting enough to take on the expense of the system alone, not to mention the disruption to your business processes, financial reporting, templates, training, and “learn by error” realities that are baked into a change of this magnitude. Many legacy systems still in use today were designed primarily for accounting (A/R, A/P, inventory, payroll, and financial reporting). Modules were later developed or augmented to accommodate customer service and scheduling, but these were adjunct processes, not the primary aim of the systems. Newer systems (post-2010) are much better at integrating both CRM and real-time service functionality into a broad-based intuitive platform. The future (and our CX) may require us to double down on mobile devices that allow wireless (same day) billing, interactive van inventories, GPS-based travel time calculations, and the ever-expanding data dump created by telemetry devices. These devices will be standard equipment soon enough, and our digital platform has to be robust enough to manage this data. The agility with which your system can organize, categorize and report meaningful data is inextricably linked to your Service CX. Without data…at your fingertips, you will not be able to manage the CX the way you want to. Not only does your system have to have the capacity to manipulate the data, but your PEOPLE also have to know how to access it, and use it to meet the requirements of the CX. My July article will perform a deeper investigation into why our industry continues to have deficiencies in this area. Suffice it to say that the way we store, retrieve, use, and report data, needs further investment and planning. Equally important, (and insufficient) is the way in which we use that data to serve the customer. Read my July article next month for more on this. Dispatch effectiveness I’ve held an opinion for a long time, and at the risk of angering those who disagree, I want to share it. My opinion is that the field service dispatcher is the most important customer service employee at the dealership. In light of managing the service CX, dispatchers (as a whole) are the most under-rated, and under-appreciated customer service professionals in the industry. Why is this? One of the reasons is that a dealer many times is hiring one skill set when they need another. Look at some of the examples of job postings for dispatchers. The skills desired are a laundry list of administrative functions. Heavy phones 10 Key by touch Intermediate Microsoft Excel Keyboard at 50 WPM The issue here is that the dispatch position is lumped in with the general service administration team, but the ACTUAL skills needed to perform customer contact (in concert with your CX) are much different. The actual list should include: Critical thinking and problem-solving skills High emotional intelligence Multiple task handling Rudimentary mechanical knowledge Familiarity with local geography and traffic patterns High Assertiveness High Customer Empathy I always refer to the dispatcher as “the tip of the spear”, because they are. They will interface with many more customers than your best salesman will over the course of a year. The interaction most always starts with chaos. The customer rarely calls the dispatch desk with good news. They want somebody NOW, they want to be HEARD, and they want to know that we care about getting them what they need when they need it. The dispatcher must be skilled in both reassuring the customer,
How to more easily handle Hiring Through Prioritization
A recruiting best practice to balance multiple hires and not lose the ever-important speed to hire Sometimes hiring is crazy busy with a multitude of job vacancies and a frantic need to fill positions immediately. Sometimes, it’s much slower paced and you can work with the team as is. Regardless of what is driving the volume of hiring – the end of a quarter, event seasons, product orders, etc. – your company needs to come up with a plan of attack to bring talent into the organization and maintain a reasonable speed to hire against the expectations that have been set with your teams. Some years create unexpected highs and lows in recruiting, and the challenge when hiring picks up quickly is that it is hard to turn the engines back on to full speed if you split your attention evenly across every job. When factors that are external to your company change, it often means your industry or the locations you operate in change at the same time. If you all slow down and then re-start hiring at the same time, there will be more choice for candidates, making your mission to attract the best talent to build your company tougher. Layer that on with all that you put into the candidate experience, making sure every candidate is kept up to date, receives clear communication, and you are training all of your hiring managers to play their role in securing talent, it quickly feels like there are not enough hours in the day! If you are hiring for multiple positions and they are all taking up equal amounts of your time, you are missing out on the most important element of strategic recruiting: Not every job is equally important! You must evaluate each job and spend your time accordingly. Wow, that felt good to say, because it’s true and not everyone is willing to admit it. Yes, every candidate is important and should be treated with the same talent acquisition process you have developed to leave a positive feeling about your employer brand. No, not every job takes the same amount of effort or has the same number of specialists in the market to warrant spreading your time evenly to find them. So, what kind of jobs need to be prioritized? This is where you, as an expert on your business, step into the recruiting consultant role regardless of what area of HR or management you are in and start with the question, how valuable is this role compared to others? Here are four ways to assess job value and hiring prioritization. The job delivers on customer requirements and is usually customer-facing. This is important because it affects your bottom line (note this chorus starting!). Your business would be in trouble if you were to leave this role open for too long. The job drives direct revenue or pipeline for the company. This is important because it affects your bottom line. Driving revenue is not the same as saving costs. This role directly brings in revenue and helps drive demand for more revenue-generating activities. The job is innovative or directly influences your products or services. This is important because it affects your bottom line. If the roles that make or deliver your products or services are vacant, this is a direct hit to your company’s potential to earn revenue. The job’s difficulty in finding in the market. Some roles are much harder than others to find talent for. Maybe the skills are very new, or they are very specific for your industry. It might be that the locations you want to hire in don’t have many local people who do that type of work or would be willing to leave their current role to consider joining your company. Do this research upfront to know where to start. Now that you’ve had a chance to think through these four top drivers, your hiring prioritization list is headed in the right direction. But wait, there is more! Many companies focus on how to lower operating costs, or roles that help you eventually lower operating costs and those are important too. But not as important as feeding growth, so more time should be spent on the roles that affect your bottom line. Every company will have different titles and levels working on these tasks, so customizing your plan is important. The activity of looking at all your open jobs and deciding where to spend your time is the strategic part of ramping up hiring and making the best use of your time. With your top jobs and the toughest to find well planned, you can then move onto your strategy and action plan. Knowing the WAY to find the talent you and prioritize that effort is important too. Not all searches are created equally. Your efforts may include using a search firm, placing an ad, using referrals, leveraging social media, etc. These efforts all take time (and sometimes money!), so knowing where your biggest priorities are will help you decide what to approach first. Prioritizing jobs sounds simple and it can be if you and your team who are involved in hiring new talent are taking this step. For those hard-to-find roles, make sure your team is prepared for the search. Take the time to train hiring managers, investigate HR process improvement, and invest in training for recruiters and those who touch your candidate experience in any way. Having an optimized recruiting function that knows which roles to focus on first, how to engage candidates for a consistent experience, and sets realistic expectations on the effort each role might take to bring into your organization will set you and your team up for success, no matter the hiring volume. About the Author: Jeremy Eskenazi is the founder of Riviera Advisors, a boutique talent acquisition optimization consulting firm. Riviera Advisors does not headhunt, it specializes in recruitment training and strategy consulting, helping global HR leaders transform how they attract top talent. From
U.S. Rail Traffic for the week ending May 15, 2021
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending May 15, 2021. For this week, total U.S. weekly rail traffic was 533,872 carloads and intermodal units, up 28.3 percent compared with the same week last year. Total carloads for the week ending May 15 were 242,806 carloads, up 31.6 percent compared with the same week in 2020, while U.S. weekly intermodal volume was 291,066 containers and trailers, up 25.6 percent compared to 2020. All of the 10 carload commodity groups posted an increase compared with the same week in 2020. They included coal, up 22,374 carloads, to 68,327; motor vehicles and parts, up 9,598 carloads, to 12,466; and metallic ores and metals, up 9,592 carloads, to 23,686. For the first 19 weeks of 2021, U.S. railroads reported a cumulative volume of 4,341,762 carloads, up 5.2 percent from the same point last year; and 5,371,854 intermodal units, up 18.5 percent from last year. Total combined U.S. traffic for the first 19 weeks of 2021 was 9,713,616 carloads and intermodal units, an increase of 12.1 percent compared to last year. North American rail volume for the week ending May 15, 2021, on 12 reporting U.S., Canadian and Mexican railroads totaled 341,527 carloads, up 29 percent compared with the same week last year, and 384,770 intermodal units, up 22.7 percent compared with last year. Total combined weekly rail traffic in North America was 726,297 carloads and intermodal units, up 25.6 percent. North American rail volume for the first 19 weeks of 2021 was 13,290,858 carloads and intermodal units, up 10.9 percent compared with 2020. Canadian railroads reported 78,290 carloads for the week, up 21.6 percent, and 77,499 intermodal units, up 15.9 percent compared with the same week in 2020. For the first 19 weeks of 2021, Canadian railroads reported a cumulative rail traffic volume of 2,883,730 carloads, containers, and trailers, up 8 percent. Mexican railroads reported 20,431 carloads for the week, up 28.4 percent compared with the same week last year, and 16,205 intermodal units, up 7.9 percent. Cumulative volume on Mexican railroads for the first 19 weeks of 2021 was 693,512 carloads and intermodal containers and trailers, up 5.8 percent from the same point last year. To view the weekly rail traffic charts, click here.
April 2021 Logistics Manager’s Index Report®
Growth is INCREASING AT AN INCREASING RATE for Inventory Levels, Inventory Costs, Warehousing Prices, Transportation Capacity, Transportation Utilization, and Transportation Prices Growth is INCREASING AT A DECREASING RATE for Warehousing Utilization Warehousing Capacity and Transportation Capacity are CONTRACTING The tightness that has been observed in the logistics industry over the last nine months continued unabated in April 2021. This month’s LMI comes in at 74.5, the second-highest reading in the history of the index. This seems to be largely driven by tight capacity, high prices for transportation and warehousing, as well as record-high levels of growth in Inventory Costs. This is a sharp turn from this time last year, when the April 2020 LMI read in at a record-low 51.3, when prices were low and a high level of slack capacity was available due to the COVID-19 lockdown. The logistics industry and overall economy we observe today are 180 degrees different from last year. April 2020 was the height of the COVID-related lockdown when many news stories were about either rising hospitalization rates or the things people were doing (e.g. learning to bake bread) with all of their extra time. In April 2021 those days seem to be behind us in the U.S., where GDP grew 6.4% in Q1[1], jobless claims have dropped to their lowest level since the pandemic[2], and (buoyed by returns to work and stimulus checks) household income is up 21.1% this Spring[3]. The re-heating of the economy has been interesting as pent-up demand has led to a ramp-up in both the consumption and production of consumer and industrial goods. At the same time, consumers are continuing to rely heavily on methods of shopping they grew accustomed to during lockdowns, such as at-home delivery or pick-up from the store. These channels of consumption tend to require a greater number of trucks and more expansive warehouse networks than more traditional alternatives. Going from the lowest LMI reading on record to the second-highest seems to capture the sensation of whiplash being felt by many in the industry. We observe high prices, including record-high Warehousing Prices and Inventory Costs, tight capacity, and an overall LMI of 74.5, up (+2.3) to the second-highest reading in the history of the index. The combination of increasing demand, and increasingly restricted supply will likely continue to be an issue going forward, as respondents are not optimistic about rapid increases in available capacity. Researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report today. Results Overview The LMI score is a combination of eight unique components that make up the logistics industry, including inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50 percent indicates that logistics is expanding; a reading below 50 percent is indicative of a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in April 2021. As we have seen for most of the last year, April’s LMI displays continued, expansion in the logistics industry. Overall, the LMI is up (+2.3) from March’s reading of 72.2. April’s score is the second-highest in the history of the index. This high score is largely fueled by increasing costs, and tightening capacities across the board. Transportation metrics reflect the supply and demand mismatch across modes that was discussed above. Transportation Capacity continues to contract, although at a slightly slower (+2.8) rate of 33.2. Even with this slight reduction, this is still one of the tightest transportation markets we have ever measured – an observation that is seemingly backed up by the high tender rejection rates and significant backlogs class-9 truck orders. The effects of the tight capacity has spilled over into the other two transportation metrics. Both Transportation Utilization (+5.9) and Transportation Prices (+2.1) are up to readings of 71.9 and 92.6 respectively. Both of these readings exceed the average levels for these metrics, particularly for Transportation Prices which show now sign of slowing down. The increase in transportation prices and strain in capacity is being felt across almost every mode of transportation. Domestically, First quarter intermodal volume was up 10% y-0-y, the third consecutive quarter of growth and the highest quarterly gain since 2013. Trans-Pacific container rates from Asia to the U.S. have doubled year-over-year, costing about $5,000/box[4]. This container shortage is expected to last into at least 2022. Ironically, the economics of this shortage seem to be incentivizing many firms to act in ways that are counter-productive to ending it. The high cost of containers is enticing carriers to get back to China as quickly as possible so they can take another load. In addition to the blank sailings coming back from the U.S. to China discussed in last month’s report, a recent trend has emerged in which ships from China are returning on the backhaul route from the U.S. with 5-8% fewer containers, exacerbating the lack of containers available to come back across the Pacific[5]. Similar tightness is being reported for over-the-road networks. While rejection rates are down somewhat, the FreightWaves Tender Rejection Index still indicates that nearly one out of four potential loads are being rejected by carriers[6]. The lack of capacity, which is consistent with this month’s LMI reading of 33.2 – a significant rate of contraction, has led to a spike in prices. Many trucking companies are reporting strong profit margins but also that they are having problems increasing their fleets to meet growing demand[7]. Fleets have been slow to grow for many reasons, chief among them the lack of semiconductors needed for their manufacture. The component shortage has led to record class-8 truck order backlogs and manufacturers have actually seen the rate of orders decrease due in part to frustrated carriers[8]. The effects of the semiconductor shortage and lack of supply chain capacity are being
Chattanooga-based Warehouse Exec elected 2021 IWLA Vice Chairman
Members of the International Warehouse Logistics Association (IWLA) recently elected Scott Mayfield, president & CAO Kenco Logistic Services, Chattanooga, Tenn., as the organization’s 2021-2022 vice-chairman. His term began immediately and will end during the May 2022 IWLA Convention & Expo in Amelia Island, Fla. Mayfield joined Kenco in 1999 and has an extensive background in human resources and management. He has been actively involved in IWLA councils and committees, including service as the 2021 IWLA Convention Committee chairman. “Scott is a leader in his company, in the association, and in the industry,” says IWLA Chairman Jared Stadlin, president of Linden Warehouse in Linden, N.J. “He shares his expertise and warehouse logistics experience in multiple capacities for the association. This position is his next stop en route to the IWLA chairmanship.” Kenco is the largest woman-owned third-party logistics (3PL) company in the United States. The company provides integrated logistics solutions that include distribution and e-commerce fulfillment, comprehensive transportation management services, material handling equipment services, engineering and innovation consulting, and information technology. IWLA is the resource for warehouse logistics education, advocacy, networking, and more. For more information about IWLA, its offerings, and its leadership, please visit www.IWLA.com. Due to COVID restrictions, the 2021 IWLA Convention & Expo originally slated for March has been moved to Nov. 1-3, at the La Cantera Resort in San Antonio, Texas.
Pintsch Bubenzer to present at AIST Crane Symposium
Pintsch Bubenzer USA will again deliver a presentation to the Association for Iron & Steel Technology (AIST) Crane Symposium. The event takes place August 15-17th at the Omni William Penn Hotel in Pittsburgh, Pennsylvania. Pintsch Bubenzer USA, a manufacturer of high-performance disc and drum brakes for steel cranes and other severe duty applications, is familiar to symposium delegates, having presented two years ago on, ‘Crane emergency brakes in critical lift applications’. This time, Joel Cox, president; and Mike Astemborski, executive sales manager, will deliver a paper titled, ‘Lifting or lowering a load safely after failure or incident’, at 10:30 a.m. on August 16. The symposium, organized by AIST’s Cranes Technology Committee, sets out to deliver practical information and experiences from maintenance personnel, crane manufacturers, equipment manufacturers, and engineering consultants with the sole intention of making electric overhead traveling (EOT) cranes and their runways the safest, most reliable, durable machines in the steel industry. Cox said: “Of course, despite the content of our presentation, we want to prevent failure or incident before it happens. Many accidents occur because of an oversight at the planning stages, or the lack of a sufficient lift plan. However, even with a plan in place, things can go wrong, so knowing how to lift or lower a load safely after failure or incident is very important.” Large cranes are commonplace in steel mills where they can be up to 450 tons or more in capacity and lift ladles of molten metal that are poured into casting machines. Pintsch Bubenzer constantly campaigns for more efficient sharing of information for continued improvement of best practices. Steel crane owners and users have been encouraged by the manufacturer to consider the safety benefits of installing emergency brakes, for example, especially in environments where critical lifts are part of everyday life. Astemborski said that “less than 10%” of cranes in the steel sector, including new ones, are fitted with emergency brakes in the United States. He added: “All too often a major incident leads to an investigation that exposes the lack of an emergency brake—but then it’s too late. We need to continue our outreach campaigns and endeavors to educate steel and other professionals so they specify emergency brakes at the earliest stage of dialog with a crane manufacturer. Frankly, an OEM is unlikely to propose a cost-adding feature when it could inflate their bid in a competitive tender situation.” The Pintsch Bubenzer SF emergency brake acts directly on the ladle crane’s drum, eliminating any chance of drivetrain failure causing a dropped load on a critical lift crane such as a hot metal or ladle crane. Typically the brake is mounted next to the motor, allowing for multiple shafts, gears, and bearings to fail between the brake and the drum. Cox said: “We will continue to align ourselves, and share information, with the AIST Crane Symposium, the Cranes Technology Committee, its memberships, and delegations, as we look to raise safety levels in this heavy-duty marketplace.” Pintsch Bubenzer USA’s paper, ‘Lifting or lowering a load safely after failure or incident’, will be delivered at 10:30 a.m. on August 16. View the full event schedule here: https://www.aist.org/conference-expositions/technology-training/annual-crane-symposium/schedule
The 2021 Forklift Safety Day will again be virtual
The National Forklift Safety Day (NFSD) sponsored by the Industrial Truck Association will again be virtual on Tuesday, June 8th. Now in its eighth year, NFSD continues to serve as an opportunity for forklift manufacturers and the industry to highlight the safe use of forklifts, the value of operator training, and the need for daily equipment checks. The speakers and their general topics for National Forklift Safety Day 2021 include: Brian Feehan, President, Industrial Truck Association – Moderator Jay Gusler, ITA Chairman of the Board & Executive Vice President of Operations, Mitsubishi Logisnext Americas – Welcome & Overview Joseph Hughes, Jr., Deputy Assistant Secretary for Pandemic and Emergency Response, Occupational Safety and Health Administration (OSHA) – OSHA Updates/Resources Tony Sciarrotta, Executive Director and Publisher, The Reverse Logistics Association Jess Dankert, Vice President for Supply Chain, Retail Industry Leaders Association Mike Field, NFSD Task Force Chair & President and CEO of The Raymond Corporation – Forklift Industry Safety To view the video of National Forklift Safety Day 2020, please see below: To view the archived event, please click here. To view the list of questions received with the answers provided by our speakers, please click here.
PLASTICS releases statement on Canadian Government’s “Toxic” label
The Canadian government continued its push this week to label plastic a “toxic” material, publishing an order-in-council in the Canada Gazette Part II that opens the door for the creation of rules to officially ban certain types of plastic products. Tony Radoszewski, president and CEO of the Plastics Industry Association (PLASTICS), warned that false labeling could have devasting effects on cross-border trade, jobs in the U.S. and Canada, and working people depending on plastics for safety, convenience, and affordability: “Our two countries are powerful plastics economies. This development is a symbolic gesture to activists and threatens tens of billions of dollars of commerce. The idea that plastic is toxic is the true danger. Such a label could have ramifications far beyond some single-use items. It could fast-track more bans on other consumer products that are fully recyclable. Our main concern should be improving recycling. “Banning a material that has transformed modern medicine in the name of public health is absurd, especially during a pandemic necessitating plastic gloves, masks, ventilators, vaccine packaging, and more. When we’re so close to real solutions, we shouldn’t pursue policies that reverse course on progress and punish ordinary people.” Radoszewski previously penned an op-ed in The Houston Chronicle about the potential effects of a false “toxic” label for plastics. PLASTICS also joined dozens of industries and their employees to urge the Canadian government to reconsider its actions.
Women In Trucking Association names Eliacostas the 2021 Distinguished Woman in Logistics
The Women In Trucking Association (WIT), Truckstop.com, and Transportation Intermediaries Association (TIA) announced today Angela Eliacostas, president and founder of AGT Global Logistics, as the winner of the seventh annual Distinguished Woman in Logistics Award (DWLA). Eliacostas was chosen among three finalists for the award. The other finalists include Nicole Glenn, president and CEO, Candor Expedite, and Jeana Hysell, senior safety consultant, J. J. Keller & Associates, Inc. The finalists and winner were recognized today during the 2021 TIA “Capital Ideas” Virtual Conference. “Angela Eliacostas has become more than just a member of Women In Trucking Association, she has become a mentor, a speaker, and a writer who shares her passion for our mission every chance she gets,” said Ellen Voie, president and CEO of WIT. “We love to honor those who help support and encourage women in the industry.” Eliacostas has more than thirty years of transportation management experience. In this time, she has built a business based on honesty, integrity, and diligence. She has developed a proprietary three-tier carrier-rating system designed to reward drivers and companies who perform at the highest standards. She has also carved out a niche for herself in the energy and utility sector as a 3PL with 24/7/365 access and service. Her employees are not only experienced with trucking – several holding commercial driver’s licenses, many also are HazMat certified. “Winning this award is such an honor. I hope to represent Women In Trucking and this award by sharing encouragement and advice. To all of the women steering their ways in the world of transportation and logistics – remember, achievement isn’t reaching a final destination. Achievement doesn’t stop, it means realizing your dreams and then striving to do more. There will be frustrating times. Always keep pushing. Believe in what you’re doing, whether in a male-dominated industry or otherwise. Have faith in yourself and your abilities. Be confident. Then, you will succeed, “ said Eliacostas. The personalized, small-business care, coupled with advanced technology, sets her company apart from not only other tier-II 3PLs but also from the “big guys.” Angela notes that sometimes her Minority and Women-owned Business Enterprises (MWBE) status is why AGT received an RFP, but getting the job often takes more than non-MWBE companies offer. Keeping the account requires that her company perform better in all aspects. Fortunately, once these accounts are won – they stay. In-house, Eliacostas has established a committed team of team members. Sixty percent of her employees are women, and many have been with her since before she started AGT in 2005. In 2019, she brought to life a new internship program that trains people who show promise, determination, and the ability to learn even if they do not have experience in third-party logistics. This has provided an opportunity for people who have driven in the past, and it also brings new people into the transportation world from other backgrounds. As a certified MWBE, Angela promotes first and second-tier spends by using as many MWBEs as she can in her own vendors and contracts. “ Angela, Nicole, and Jeana exemplify all the leadership qualities that our industry and their companies need to help America lead the world in freight transportation,” said Brent Hutto, chief relationship officer at Truckstop.com. “We admire their dedication to providing example and opportunity for women in the freight industry to continue to succeed in all that they pursue. Congratulations to Angela as she continues the long line of excellence as the winner of this year’s award.” Sponsored by Truckstop.com and TIA, the DWLA was established to promote the achievements of women employed in the North American transportation industry. It highlights the vital roles of women in the dynamic and influential field of commercial transportation and logistics. “Angela, Jeanna, and Nicole exemplify leadership, passion, and civic values. All three are deserving of the Distinguished Woman in Logistics Award,” said Anne Reinke, president and CEO, TIA. “Angela has spent 30 years promoting women in transportation and has committed to serving her customers ethically, efficiently, and with unmatched determination. We congratulate her for this prestigious honor.” Members of the judging panel include Brent Hutto, chief relationship officer, Truckstop.com; Anne Reinke, president and CEO, TIA; Dr. Stephanie S. Ivey, associate dean for research and professor, Herff College of Engineering; and Ellen Voie, president and CEO, WIT.
U.S. Rail Traffic for the week ending May 8, 2021
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending May 8, 2021. For this week, total U.S. weekly rail traffic was 523,309 carloads and intermodal units, up 26.9 percent compared with the same week last year. Total carloads for the week ending May 8 were 236,019 carloads, up 27.6 percent compared with the same week in 2020, while U.S. weekly intermodal volume was 287,290 containers and trailers, up 26.3 percent compared to 2020. All of the 10 carload commodity groups posted an increase compared with the same week in 2020. They included coal, up 16,361 carloads, to 62,675; metallic ores and metals, up 9,925 carloads, to 23,543; and motor vehicles and parts, up 9,221 carloads, to 11,327. For the first 18 weeks of 2021, U.S. railroads reported a cumulative volume of 4,098,956 carloads, up 4 percent from the same point last year; and 5,080,788 intermodal units, up 18.1 percent from last year. Total combined U.S. traffic for the first 18 weeks of 2021 was 9,179,744 carloads and intermodal units, an increase of 11.3 percent compared to last year. North American rail volume for the week ending May 8, 2021, on 12 reporting U.S., Canadian and Mexican railroads totaled 332,413 carloads, up 24 percent compared with the same week last year, and 380,465 intermodal units, up 22.6 percent compared with last year. Total combined weekly rail traffic in North America was 712,878 carloads and intermodal units, up 23.2 percent. North American rail volume for the first 18 weeks of 2021 was 12,564,561 carloads and intermodal units, up 10.1 percent compared with 2020. Canadian railroads reported 75,952 carloads for the week, up 12 percent, and 77,487 intermodal units, up 12.1 percent compared with the same week in 2020. For the first 18 weeks of 2021, Canadian railroads reported a cumulative rail traffic volume of 2,727,941 carloads, containers, and trailers, up 7.5 percent. Mexican railroads reported 20,442 carloads for the week, up 33.8 percent compared with the same week last year, and 15,688 intermodal units, up 12.8 percent. Cumulative volume on Mexican railroads for the first 18 weeks of 2021 was 656,876 carloads and intermodal containers and trailers, up 5.2 percent from the same point last year. To view the weekly rail charts, click here.
Port of Long Beach scores another record in April
Demand-driven by online spending, retailers restocking shelves An ongoing cargo boom largely driven by online purchases lifted the Port of Long Beach to its strongest April on record. Dockworkers and terminal operators moved 746,188 twenty-foot equivalent units in April, a 43.6% increase from the same month last year. It was the first time the nation’s second-busiest seaport handled more than 700,000 TEUs in the month of April, surpassing the previous record set in April 2019 by 118,066 TEUs. Imports grew 44.8% to 367,151 TEUs, while exports climbed 21% to 124,069 TEUs. Empty containers moved through the Port were up 55.8% to 254,970 TEUs. The Port has moved 3,122,315 TEUs during the first four months of 2021, a 41.8% increase from the same period in 2020. “International trade will help jumpstart the economy, and the Port of Long Beach will lead the way by protecting the health of our dockworkers and providing top-notch customer service to keep cargo moving,” said Mario Cordero, Executive Director of the Port of Long Beach. “We remain optimistic as online spending continues to soar, retailers prepare for a busy summer season, and businesses continue to reopen following months of closures due to the COVID-19 pandemic.” “We are in the midst of our best trade periods in Port history, but we cannot forget that the national economy remains in recovery mode,” said Long Beach Harbor Commission President Frank Colonna. “We are closely collaborating with our industry stakeholders to handle the resurgence of cargo we’re experiencing after the dramatic declines we saw last year due to COVID-19.” April marked the 10th consecutive month that the Port of Long Beach has broken cargo movement records for a particular month amid a historic cargo surge that started in July 2020. The rise in online consumer spending continued to squeeze the national supply chain with loaded vessels, increased dwell times, and shrinking capacity. The Port of Long Beach spent the past decade preparing for the challenges of cargo growth through an aggressive $4 billion capital improvement program resulting in terminal upgrades, a new bridge, and the completion this summer of the Long Beach Container Terminal at Middle Harbor – one of the most technologically advanced and greenest container terminals in the world. In the next 10 years, the Port plans to invest another $1.7 billion for rail improvements, terminal modernization, and other strategic infrastructure projects aimed at easing the flow of cargo moving through the nation’s second-busiest seaport. For complete cargo numbers, visit polb.com/statistics.
EP 175: Industrial Intelligence with Justin Smith
On this episode, I was joined by Senior Vice President at Lee & Associates, Justin Smith. Justin is also the author of the newly released book “Industrial Intelligence, the Executive’s Guide for Making Informed Commercial Real Estate Decisions.” I have been wanting to get someone from the commercial real estate world on the show to discuss the warehousing market and Justin was the perfect guest with tons of experience and industry knowledge. We discuss the current state of the warehousing market, micro-warehousing, and his book Industrial Intelligence. Key Takeaways Justin has a long background in the commercial real estate world and has been focused primarily on clients in the supply chain world so he is well versed when it comes to the warehousing real estate market. He gives some great insights into what is going on in the markets right now and how the Southern California market, in particular, is developing. I found it very interesting how space is at a premium in these markets and developers are taking older warehouses that are not covering all the usable land and expanding them or tearing them down and building new. With a shortage of space, it is interesting to see how people will get creative to get warehousing into ideal locations. As you have heard on the show, I have talked to a few guests about the concept of micro-warehouses and micro-fulfillment but I have long been thinking there is an opportunity in some of the vacant retail locations that are closer to consumers. Justin and I get into a discussion about this and where broker’s minds are when it comes to this idea. Interestingly enough he talks about how developers are starting to look at how to design warehouses to fit into more populated areas and the complications that come from that including how to get trucks to second stories and the massive amounts of weight that will need to be supported. When it comes to micro-warehouses popping up in your local abandoned strip mall, Justin feels that it is somewhat far off and even though it would provide better delivery times to consumers those same consumers would not be happy with additional truck traffic or warehouses in their neighborhoods. It will be interesting to see how it develops. The book that Justin just recently released, “Industrial Intelligence, the Executive’s Guide for Making Informed Commercial Real Estate Decisions,” is a great idea and effort by Justin. He explains how he came up with the idea and what he really wanted to be able to provide for executives to make better-informed decisions when it comes to real estate. It is a go-to guide and I feel something that is definitely necessary to read when looking to expand on your company’s real estate as that is not something you do every day. Being able to dive into some of the details through the book and understand some parts of the transaction a little more will certainly give you a better knowledge base going into any decisions. I recommend picking up the book here and reaching out to Justin if you have any questions about commercial real estate. Listen to the episode below and let us know if you’re getting the book in the comments. The New Warehouse Podcast EP 175: Industrial Intelligence