Plastics Machinery Shipments decline in Q2 2024, growth prospects remain
The Plastics Industry Association’s Committee on Equipment Statistics (CES) released Q2 2024 shipment data for primary plastics machinery in North America, covering injection molding and extrusion. The shipment value is estimated at $224.8 million, marking a 15.4% decrease from the previous quarter and a 36.2% year-over-year (Y/Y) decline. In the primary plastics machinery sector, single-screw extrusion saw a 3.4% quarter-over-quarter (Q/Q) increase but a 28.6% Y/Y decrease. Twin-screw extrusion experienced a 23.5% Q/Q decrease and a 25.3% Y/Y decline. Injection molding shipments fell by 16.3% Q/Q and faced a 37.7% Y/Y decline. “The second consecutive quarter of decline in shipments is not due to a pullback in plastics demand. In fact, based on monthly Plastics Demand Estimate,∗ there has been growth in demand recently. There is no indication that the baseline demand for plastic products has deteriorated,” commented PLASTICS’ Chief Economist, Perc Pineda, PhD. Manufacturers’ finished goods inventories of plastics and rubber products were estimated at $15.0 billion in June this year, compared to $15.2 billion in June last year, indicating slow inventory adjustments. Results from the latest CES quarterly survey showed that a high percentage (79.9%) of respondents anticipate steady or improved market conditions over the next twelve months. However, 40.0% reported an increase in quoting activity, which was lower than the 48.9% in the previous quarter’s survey citing an increase in quoting activity. In Q2 2024, U.S. total exports of plastics equipment declined by 14.7% to $341.0 million compared to the previous quarter, while imports decreased by 3.8% to $856.8 million during the same period. Slightly more than half (53.4%) of exports went to Mexico and Canada, jointly accounting for $182.3 million of U.S. plastics machinery exports globally. Pineda remarked, “While the rate of decline in the second quarter was significantly less than in the first quarter, the industry continues to deal with higher interest rates, and that’s weighing on capital expenditure plans.” The economy is currently not operating at maximum capacity in plastics processing; capacity utilization is below potential, leaving room for growth.
MHEDA announced Parts & Service Management Conference Registration open
The Material Handling Equipment Distributors Association (MHEDA) is excited to announce its upcoming Parts & Service Management Conference, set for September 12, 2024, at Atlas Toyota Material Handling in Elk Grove Village, Illinois. This one-day event is designed to empower professionals in the material handling industry with actionable insights and best practices to elevate department performance and profitability. The conference will feature sessions on monitoring key performance indicators, strategies to reduce the impact of parts backorders, and sales growth through e-commerce. Attendees will have the opportunity to engage with industry peers through roundtable discussions, an optional networking dinner at Gibson’s Steakhouse, and more. Registration for the event is now open, with early bird rates available until August 23, 2024.
Hyster-Yale participates in US Department of Defense SkillBridge program
Program advances Hyster-Yale’s commitment to veterans, enables manufacturer to recruit talent from the world’s most highly trained and motivated workforce. Hyster-Yale Materials Handling announces its participation in the United States Department of Defense (DOD) SkillBridge program, offering training and career opportunities to service members and their spouses as they transition to civilian life. DOD SkillBridge connects service members in their final 180 days of service with companies that provide civilian work experience at no cost to the company while the service member continues receiving military compensation and benefits. “Our service members dedicate their lives to serving our country, and this program is our opportunity to reward that service while also adding skilled, dedicated talent to the Hyster-Yale team and our dealer partners,” says Anthony Salgado, Chief Operating Officer, Hyster-Yale Materials Handling. “The SkillBridge program provides hands-on experience that helps service members explore career interests and develop job skills in the private sector. As a proud veteran of the U.S. Navy, I know how important resources and support are to a successful transition to the civilian workforce.” SkillBridge enables Hyster-Yale and its independently owned dealer partners to recruit and retain top-notch talent nationwide with a particular emphasis on the dealer network’s initiative to hire skilled technicians. Specifically tailored for technician apprenticeships, this program immerses participants in targeted training that equips them with the necessary skills and expertise for a successful career in materials handling. “We’re proud to work with SkillBridge to give back to our military veterans for the bravery and sacrifices they’ve made for all of us,” says Troy Pederson, Director of Training & Development at LiftOne, a Hyster-Yale dealer and established SkillBridge employer. “In the last year, we’ve helped 10 SkillBridge interns transition from military to civilian life, and the value and positive impact of the program can’t be overstated. At LiftOne, we’ve gained so much from the experience and diverse mix of technical and leadership skills of our SkillBridge candidates.” “Our participation demonstrates our long-standing commitment to employing men and women who have served our country, and the value we place on their strong work ethic, discipline, loyalty and leadership qualities,” says Jessica Mason, Talent Acquisition Manager at Eastern Lift Truck Co. “Veterans enhance our workforce and make a positive impact on our entire organization.”
Gordon Report: Will the U.S. Labor economy avoid brain death?
The Gordon Reports are based on over 30 years of research on the causes, effects, and solutions for continuing worldwide skills-jobs disconnects. For your convenience, here are the major publications that have reported on a burgeoning talent-deficit question: Closing the Literacy Gap in American Business, 1991 (adult reading) FutureWork, 1994, and Enhancing Learning in Training and Adult Education, 1998 (higher performing employer training and development programs) Skill Wars: Winning the Battle for Productivity and Profit, 2000 (training return-on-investment) The 2010 Meltdown: Solving the Impending Jobs Crisis, 2005 (impact of baby-boomer retirements on workforce skill levels 2010-2030) Winning the Global Talent Showdown, 2009 (skilled worker challenges in 25 nations and their solutions) The Talent Hunters, 2012, (China, India, and the United States vie to attract skilled workers) Future Jobs: Solving the Employment and Skills Crisis, 2013, 2018 (preparing solutions for skilled talent deficits) Job Shock, 2022 (Building a new skilled workforce in the wake of COVID-19) These publications feature case studies of businesses and communities rising to the challenge of fixing skill deficits. Many have established Regional Talent Innovation Networks (RETAINs), not one-off partnerships but collaborative hubs focusing on systemic change. Coast to coast, under local brand names, RETAINs connects schools and businesses to educate and train students and incumbent workers for today’s jobs and careers. The Fourth Industrial Revolution continues to raise the education and skills required to develop and use advanced technologies, with AI now the focus of attention. Yet the skill levels of too many Americans stalled out during the last decades of the 20th century. High levels of vacant jobs persist across all business sectors. Wages continue to rise as businesses seek to mine the inadequate supply of knowledge workers. We are nearing a state of collapse in such people’s current and future availability. The critical mass of educated Americans is inadequate to support and grow the U.S. economy. Why has this happened? It begins with education National Assessment of Educational Progress (NAEP) test scores show a steep post-COVID decline in American elementary school students’ reading and mathematics performance. In 2022, only about one-third of 4th- and 8th-grade public and private school students scored in reading at grade level or above. In mathematics, 37 percent of 4th-graders scored at grade level or above, but only 27 percent of 8th-grade students did. All the testing results showed a significant growth in students scoring well below their grade level in both mathematics and reading. International testing also showed sharp drops in reading and mathematics results. The 2022 PISA exam of 15-year-old students in 81 OECD member countries saw mean performance fall 10 points in reading and 15 points in mathematics compared to 2018 results. The results of the 2024 ACT exams confirm another confirmation of educational declines. American high-school seniors take this achievement test to assess readiness for college-level studies. The 2024 average ACT score was the lowest in thirty years. This year, the Georgetown University Center on Education and the Workforce issued a report on post-secondary job requirements. It indicates that 75 percent of all jobs by 2031 will require post-secondary education: two—or four-year degrees, technical certificates, or apprenticeships. These post-secondary options will need students to have achieved 12th-grade reading comprehension. In 2024, only 33 to 37 percent of public and private high school graduates read at this comprehension level. This is a major factor behind the sad statistic that only half of students who start a post-secondary degree complete it. Looking to the future Demand for more advanced IT skills will continue to grow across the job market. Higher cognitive skills, critical thinking, and creativity are essential for innovation. They all involve achieving higher reading comprehension. Business executives report skill shortages and expect them to continue. A 2024 Experis survey of IT employers in over 40 countries found that 76 percent reported difficulty finding the skilled talent they need. The World Economic Forum predicts up to 90 million skilled job vacancies worldwide by 2030, with up to 30 million in the United States. U.S. high schools are now graduating a significant number of functionally illiterate young adults. The 21st-century reality is that the world has moved into a new era of occupational transitions and employment qualifications. What actions need to be taken to stave off the brain death of the U.S. labor force? A 2024 McKinsey Global Institute Report, “A New Future of Work,” found that the surveyed executives expect greater skill demands by 2030. Companies are considering retraining their current workers, hiring contractors, and using them to fill these growing skills deficits. Success with these strategies depends on widening talent pools. Due to inadequate elementary and high school preparation, too many young Americans do not have the educational foundation needed to succeed in today’s high-tech jobs and careers. Reform needs to begin at these early educational levels. Businesses need to develop career information programs in elementary schools that highlight the new jobs created by the Fourth Industrial Revolution and how to prepare for them. They also need to expand partnership programs with secondary and post-secondary educational institutions. Career academy high schools can allow local businesses to help students explore how well their interests and skills fit employment opportunities. Apprenticeship, internship, and work-study programs must be implemented in more industry sectors. Business leaders must deploy these and other strategies prioritizing human capital development. To make this succeed, Regional Talent Innovation Networks can help business leaders collaborate with other community sectors to reinvent local and regional education-to-employment systems. RETAINs provide the framework for long-term systemic transformation that sustains talent growth that benefits individuals, businesses, and U.S. economic competitiveness. About the Author: Edward E. Gordon is the founder and president of Imperial Consulting Corporation in Chicago. His firm’s clients have included companies of all sizes, from small businesses to Fortune 500 corporations, U.S. government agencies, state governments, and professional/trade associations. He taught in higher education for 20 years and is the Author of numerous books and articles. More information on his background can be found at www.imperialcorp.com. As a professional speaker, he is available to
Manufacturing Technology Orders Grow 4.3% in June 2024 as Year-Over-Year Order Gap Narrows
Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology, totaled $386.7 million in May 2024. Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders (USMTO) report published by AMT – The Association For Manufacturing Technology, totaled $402.3 million in June 2024. New orders of metalworking machinery were up 4.3% from May 2024 but down 1.6% from June 2023. Year-to-date orders reached $2.2 billion, down 10.7% compared to the first half of 2023. While the value of orders maintained momentum in June 2024, with the average value increasing significantly, the number of units ordered for the month dropped to 1,471 units, the lowest since July 2023. This divergence indicates manufacturers are generally investing in more automated, task-specific solutions. This trend is further confirmed, as inflation among machine tools, measured by the producer price index, has stayed relatively flat for the last several months. June 2024 orders from contract machine shops dropped over 10% from May 2024 in both the number of units ordered and the total order value. Through the first half of the year, the value of these orders was the lowest since the first half of 2020, but the number of units ordered fell further, reaching its lowest level since the first half of 2010. Primary metal manufacturers have also pulled back machinery orders in 2024, dropping to the lowest levels in both unit count and value since the first half of 2010. Demand for machinery in this sector has been waning, as the World Steel Association reports that global steel production in the first half of 2024 was flat compared to the first half of 2023. One notable exception to this recent trend is the aerospace sector, which has increased orders in the first half of 2024 to the highest number of units since the first half of 2018, yet the value of orders remains about 2% below orders placed in the first half of 2022. With capacity utilization in the aerospace sector reaching post-COVID peaks, this confirms that these manufacturers are in need of additional machinery to meet growing demand. Orders of manufacturing technology are down nearly 11% in the first half of 2024 compared to 2023, but that difference has narrowed in the past several months after the beginning of the year failed to meet the optimistic expectations formed from anticipated interest rate cuts and strengthened consumer and business sentiment. Despite the lingering uncertainty around the Federal Reserve’s interest rate policy, the pending election, and escalating geopolitical tensions, the remainder of 2024 seems ready for a rebound in demand for manufacturing technology – perhaps even more so with the opening of IMTS 2024 – The International Manufacturing Technology Show in September at Chicago’s McCormick Place.
Register For SuperCorrExpo® Today!
SuperCorrExpo®, taking place September 8-12 in sunny Orlando, Florida, will feature North America’s largest display of working equipment for the corrugated and folding carton industries. With the rare opportunity to see, touch and demo working equipment right on the show floor, attendees can gain firsthand experience and insights into the latest technological advancements and innovations driving the industry forward. Over 300 companies will be exhibiting at SuperCorrExpo®. Industry leaders from across the globe will be showcasing working machinery, including: A.G. Stacker, Baysek Machines, EAM-Mosca, Eco Paper Machinery, Engineered Recycling Systems, Fosber America, Geo. M. Martin, Global Boxmachine, Haire Group, Innoveyance, Kolbus America, Mainline Conveyor Systems, Samuel Packaging Systems Group, Shenzhen HanGlory Digital Printing Group, Signode, Solema USA, Stitching and Gluing Solutions, SUN Automation Group, TCY, TISCO/ HARPER/ ALLTEK, and WSA USA. Thousands will be attending to take advantage of the unparalleled educational and networking opportunities available as SuperCorrExpo®. The world’s leading box plants are looking to gain the tools and expertise to equip their businesses for the future. The list of attendees is available here. Don’t get boxed out! Register today to join the world’s professionals in paving the way for the future of the corrugated industry.
H&E launches Mental Health Training and Community Awareness Initiative
H&E Rentals has launched a Mental Health and Hope training module to shed light on the mental health crisis that is taking place today and to offer information and resources to its own employees as well as any other company in the equipment industry that could benefit from the information. One of the first of its kind in the equipment rental industry, this training was created by H&E Learning with the help of the nation’s leading mental health advocates and experts, including the Huntsman Family Foundation, National Alliance on Mental Illness (NAMI), Health Action Alliance (HAA), American Psychiatric Association (APA) Foundation, and others. In a heartfelt communication to H&E employees at the launch, Chief Executive Officer Brad Barber explained, “When I say nothing is more important to me than the health and safety of our employees, I mean every word. H&E is still very much a family environment, and this culture can only continue to exist when we take the time to care enough about one another’s needs and look for ways to provide support. “Unfortunately, many of us received a wake-up call regarding mental health when one of our friends and leaders died by suicide. This individual was loved and respected by those he led and interacted with daily. He was highly successful in his work, and he and his team were making great progress. To say we were shocked would be a massive understatement,” said Barber. Since that time, Barber and others in the local community as well as across the rental industry have worked to address a variety of areas regarding mental health, including the harmful stigma that has kept those affected by mental health issues from seeking and receiving the help that is needed … leading to the hope we all deserve. “When it comes to something this important, there is no industry competition. We’re happy to be able to share all the information we’ve gathered as well as the mental health training we’ve developed,” said Barber. Through H&E’s Learning Management System, the module was assigned to all employees – now numbering nearly 3,000 – as part of the company’s yearly required instruction. In announcing the new training, Barber said, “The information will enlighten and educate you, making you more informed about mental health and enabling you to help yourself or direct others in crisis. For some of you, this could be the most important 15 minutes of training you will ever receive.” Christena Huntsman Durham of the Huntsman Family Foundation adds, “Workplace wellness should be vital in all businesses – no matter the size of the organization. It produces good outcomes for productivity and, more importantly, for the people who make companies successful: the employees. So grateful to H&E for creating the training and resources that can benefit anyone.” Those who may be interested in offering this instruction to their employees can view the course slides and other resources online at community-awareness.com. For additional information, contact now.
Non-compete Agreements: No longer enforceable
On April 23, 2024, the Federal Trade Commission (FTC) issued a final rule. This rule promoted competition by banning non-competes nationwide to protect the fundamental freedom of workers to change jobs, foster new business formation, and increase innovation. The FTC estimates that business formation will increase by 2.7% per year. This ruling is also expected to increase wages for workers and lower healthcare costs over the next decade. Along with this, the FTC believes innovation will be increased, leading to an estimated average increase of 17,000 to 29,000 more patents each year. What exactly are non-compete agreements? A non-compete agreement is a clause in a contract specifying that an employee must not enter into competition with another employer after the employment period is over. These agreements can also prohibit the employee from revealing proprietary information or secrets to any other parties during or after their employment. Most of these contracts specify a certain length of time when the employee is barred from working for a competitor or becoming a competitor after they end their employment. Those required to sign these agreements may include employees, consultants, and contractors. Some components you may see in a noncompete agreement are: Duration Geography Scope Competitors Damages Many businesses use noncompete agreements to protect their intellectual property, proprietary information, trade secrets, and/or the production of their goods and services to maintain a competitive advantage. For example, an ex-employee who is not under contract with a non-compete could legally use the information they obtained at one company to help a new employer gain an advantage. That same employee may even start their own business using the information acquired from their employment. Some of the most common industries that use noncompete agreements are: Media Financial Services Corporate Management Manufacturing Information Technology Under FTC’s new rule, existing noncompetes for the vast majority of workers will no longer be enforceable after the rules’ effective date, September 4, 2024. Employers will be required to notify workers other than Senior Executives who are bound by an existing non-compete that they will not be enforcing the agreements against them. Under the FTC’s final rule, existing noncompetes with Senior Executives, who represent less than 0.75% of the workforce, can remain in force. Employers are banned from entering or attempting to enforce any new noncompetes, even if they involve senior executives. Who qualifies as a Senior Executive? Anyone who earns more than $151,164 per year and is involved in a “policy-making decision” is classified as a Senior Executive. There are a few exceptions to the new ruling outside of Senior Executives. The non-compete ban does not apply to nonprofit organizations and industries not covered by the Federal Trade Commission Act, such as banks, savings-and-loan institutions, federal credit unions, common transportation carriers, air carriers, and any individual or business subject to the Packers and Stockyard Act. Along with this, the rule does not apply to noncompetes that are part of a corporate acquisition or sale of business interests. The final rule defines such transactions as “a bona fide sale of a business entity, of the person’s ownership interest in a business entity, or of all substantially all of a business entity’s operating assets.” With noncompetes being rendered unenforceable, companies will look into alternatives to protect their business. Trade secret laws and non-disclosure agreements (NDAs) both can provide employers with well-established means to protect proprietary and other sensitive information. Many researchers estimate that over 95% of workers with a noncompete already have an NDA. The FTC also recommends that instead of using noncompetes to lock in workers, employers that wish to retain employees can compete on the merits of the worker’s labor services by improving wages and working conditions About the Author: The Center for Financial, Legal & Tax Planning, Inc. (The Center), our M&A team, is equipped with attorneys and CPAs who are knowledgeable within the world of non-competes and corporate agreements. If you have any questions regarding the new non-compete ruling, please feel free to reach out at our website, www.taxplanning.com, or by phone at 618 997-3436.
American Logistics Aid Network urges caution during preparation for Hurricane Debby
As Hurricane Debby makes landfall in Florida, the American Logistics Aid Network (ALAN) is urging residents of the Southeast to heed emergency management officials’ warnings about everything from safely evacuating to sheltering in place– and asking members of the logistics community to be ready to help. “In addition to high winds and a significant storm surge, Hurricane Debby has the potential to bring huge amounts of rain and significant flooding to many parts of Florida, Georgia, and the Carolinas. That has us especially concerned because flood waters are often the deadliest and most underestimated effect of a hurricane,” said Kathy Fulton, ALAN’s Executive Director. According to Fulton, ALAN has already begun meeting with many of the non-profit agencies that will lead early relief efforts, and it is poised to provide them with logistics support as needed. “As always, most of their requests for support will arrive after the storm has passed because that’s when safety officials and first responders will have a chance to get into the area, assess the damage, and determine what’s needed,” she said. “We’ll be posting these requests on our Disaster Micro-Site as soon as we receive them, and we encourage people to visit it often in the days and weeks ahead.” Businesses that wish to offer assistance can now visit ALAN’s website at https://www.alanaid.org/offer-inkind-services-or-equipment/ or make a financial donation to ALAN. They can also view current information about Hurricane Debby’s path and the storm’s supply chain impacts via ALAN’s Supply Chain Intelligence Center or the Helpful Links portion of ALAN’s Disaster Micro-Site. “We’ll provide more specific updates, including information about what’s needed most, as the storm progresses,” Fulton said. “Meanwhile, please join us in holding good thoughts for the many people who are in Hurricane Debby’s cone of concern.”
July jobs growth falls to its lowest level since pandemic
Following today’s newsworthy Jobs Report, American Staffing Association Chief Economist Noah Yosif had the following analysis: “Job growth, often a bright spot within recent labor market data, decelerated significantly in July, falling to its lowest monthly level since the pandemic. Along with reduced hiring, accelerating separations, and lower levels of temporary help workers, these numbers are the latest indication of a regressing labor market. “With unemployment rising to 4.3 percent and a three-month average above 0.5 percent, the Sahm Rule has officially been triggered, raising concerns about the possibility of a recession. Although this scenario remains unlikely given the Fed’s projected timeline for interest rate cuts, the warning signs underscore the close call likely to materialize given its aggressive focus on inflation, often at the expense of labor market considerations. “While these numbers are a weak start to the Fed’s Open Market Committee’s two-month recess, overall levels are still low enough for the labor market to stay afloat, underscoring the importance of a modest cadence in its cooling. Staffing companies have already been adjusting to lower levels of labor churn for most of the year and will need to continue treading water a little while longer as interest rates and labor market activity further stabilize.”
KION significantly increases profitability in the first half of 2024 driven by improvements in both operating segments
Revenue up by 2 percent to € 5.736 billion (H1 2023: € 5.617 billion) Adj. EBIT improves 28 percent to € 447 million (H1 2023: € 348 million) Adj. EBIT margin of 7.8 percent (H1 2023: 6.2 percent) Free cash flow of € 202 million (H1 2023: € 229 million) Outlook for 2024 confirmed with narrowed bandwidths The KION Group continued to deliver strong earnings and margins in the first half of 2024. With revenues of € 5.736 billion (H1 2023: € 5.617 billion) and a 28 percent higher adjusted EBIT of € 447.0 million (H1 2023: € 348.3 million), the adjusted EBIT margin went up by 160 basis points to 7.8 percent (H1 2023: 6.2 percent). “Significant year-on-year profitability improvements in both operating segments led to a 28 percent increase of our adjusted EBIT in the first half of the year,” says Rob Smith, Chief Executive Officer of KION GROUP AG. “Despite a slower market recovery in the current financial year, we are well on track to achieve our outlook. Our clear strategy, our broad range of products and solutions for customers and our presence in all key markets position KION very well for the future.” The Industrial Trucks & Services segment increased total revenues by 4.1 percent to € 4.306 billion (H1 2023: € 4.135 billion), supported by a higher number of products delivered and previous price increases. The revenue in the service business grew by 2.3 percent across all key categories. Despite a slight increase in the second quarter, total revenue in the Supply Chain Solutions segment declined to € 1.451 billion (H1 2023: € 1.497 billion) in the first half of 2024 – mainly due to lower order intake in the project business in previous quarters. The service business revenue increased by 11.9 percent compared to the first half of 2023. Adjusted EBIT for the Industrial Trucks & Services segment improved substantially to € 470.7 million (H1 2023: € 378.9 million). Revenue growth combined with stable material purchase prices led to a significantly higher gross margin. The adjusted EBIT margin increased to 10.9 percent (H1 2023: 9.2 percent). At € 42.1 million, adjusted EBIT in the Supply Chain Solutions segment almost tripled compared to the previous year (€ 14.8 million). Improved project implementation, efficiency measures and, in particular, the growth in the service business contributed to the improvement in earnings and margins. The adjusted EBIT margin rose to 2.9 percent (H1 2023: 1.0 percent). KION Group net income improved to € 181.7 million in the first half of 2024 (H1 2023: € 146.3 million). This corresponds to undiluted earnings per share of € 1.35 (H1 2023: € 1.09). Free cash flow was € 202.2 million (H1 2023: € 228.8 million) in the first six months of 2024 reflecting the high operating result. Outlook confirmed and narrowed The KION Group expects the global industrial trucks market (in units) to remain on the prior year level in 2024 compared to earlier expectations of slight growth. In the market for supply chain solutions, the KION Group now expects the global market volume in 2024 (measured in terms of revenue) to decline slightly compared with the previous expectation of a slight growth. Based on the business performance in the first half of the year and the updated market expectations, the Executive Board of KION GROUP AG has confirmed its outlook and narrowed its guidance ranges for the 2024 financial year as follows: Outlook 2024 KION Group Industrial Trucks & Services Supply Chain Solutions in € million Outlook 2024 Outlook 2024 adjusted Outlook 2024 Outlook 2024 adjusted Outlook 2024 Outlook 2024 adjusted Revenue1 11,200 – 12,000 11,300 – 11,700 8,500 – 9,000 8,500 – 8,700 2,700 – 3,000 2,800 – 3,000 Adjusted EBIT1 790 – 940 830 – 920 850 – 950 870 – 930 60 – 120 80 – 120 Free cash flow 550 – 670 550 – 670 – – – – ROCE 7.4% – 8.8% 7.7% – 8.7% – – – – 1 Disclosures for the Industrial Trucks & Services and Supply Chain Solutions segments also include intra-group cross-segment revenue and effects on EBIT. Key performance indicators for the KION Group and its two operating segments for the first half-year of 2024 and for the second quarter ending June 30, 2024 in € million Q2/2024 Q2/2023 Diff. H1/2024 H1/2023 Diff. Revenue Industrial Trucks & Services Supply Chain Solutions 2,877 2,153 732 2,836 2,130 714 1.4% 1.1% 2.5% 5,736 4,306 1,451 5,617 4,135 1,497 2.1% 4.1% -3.1% Adjusted EBIT [1] Industrial Trucks & Services Supply Chain Solutions 220.3 231.0 23.7 192.3 202.3 7.7 14.5% 14.2% > 100% 447.0 470.7 42.1 348.3 378.9 14.8 28.3% 24.2% > 100% Adjusted EBIT margin [1] Industrial Trucks & Services Supply Chain Solutions 7.7% 10.7% 3.2% 6.8% 9.5% 1.1% – – – 7.8% 10.9% 2.9% 6.2% 9.2% 1.0% – – – Net income 70.7 72.8 -2.9% 181.7 146.3 24.1% Basic earnings per share (in €) (undiluted) [2] 0.52 0.54 -4.1% 1.35 1.09 23.6% Free cash flow [3] 136.5 123.9 12.7 202.2 228.8 -26.5 Order intake [4] Industrial Trucks & Services Supply Chain Solutions 2,640 1,966 677 2,872 2,001 881 -232 -35 -204 5,079 3,770 1,318 5,273 3,957 1,335 –194 -188 -17 Order book [4], [5] Industrial Trucks & Services Supply Chain Solutions 5,272 2,602 2,732 6,045 3,197 2,921 -773 -595 -189 Employees [6] 42,303 42,325 -22 [1] Adjusted for effects of purchase price allocations as well as non-recurring items. [2] Net income attributable to shareholders of KION GROUP AG: € 177.0 million (H1/2023: € 143.3 million). EPS calculation is based on average number of shares of 131.1 million. [3] Free cash flow is defined as cash flow from ongoing business plus cash flow from investment activity. [4] Prior-year figures for order intake and order book have been definition-related adjusted in the SCS segment. [5] Figures as of June 30, 2024, compared to balance sheet date Dec. 31, 2023. [6] Number of full-time equivalents incl. apprentices and
H&E Equipment Services, Inc. reports second quarter 2024 results
H&E Equipment Services, Inc. reported financial results for the second quarter that ended June 30, 2024, including further expansion of its branch network which now extends to 31 states. SECOND QUARTER 2024 SUMMARY WITH A COMPARISON TO SECOND QUARTER 2023 Revenues increased 4.5% to $376.3 million compared to $360.2 million. Net income was $33.3 million compared to $41.2 million. The effective income tax rate was 27.8% compared to 26.3%. Adjusted EBITDA totaled $173.2 million, an increase of 2.8% compared to $168.6 million. Adjusted EBITDA margins were 46.0% of revenues compared to 46.8%. Total equipment rental revenues were $312.4 million, an increase of $20.9 million, or 7.2%, compared to $291.5 million. Rental revenues were $275.5 million, an increase of $16.8 million, or 6.5%, compared to $258.7 million. Sales of rental equipment decreased 11.9% to $34.9 million compared to $39.7 million. Gross margin declined to 45.5% compared to 46.7%. Total equipment rental gross margins were 45.5% compared to 46.8%. Rental gross margins were 51.0% compared to 51.8%. Average time utilization (based on original equipment cost) was 66.4% compared to 69.3%. The Company’s rental fleet, based on original acquisition cost, closed the second quarter of 2024 at $2.9 billion, an increase of $279.0 million, or 10.7%. Average rental rates increased 1.9% compared to the second quarter of 2023, and declined 0.1% compared to the first quarter of 2024. Dollar utilization of 38.6% compared to 40.6% in the second quarter of 2023 and 37.0% in the first quarter of 2024. Average rental fleet age on June 30, 2024, was 40.0 months compared to an industry average age of 48.1 months. Paid regular quarterly cash dividend of $0.275 per share of common stock. Reviewing the Company’s second quarter performance, Brad Barber, chief executive officer of H&E noted, “Rental revenues increased 6.5% compared to the year-ago quarter, with the increase led primarily by the ongoing expansion of our branch network. A total of 23 new locations, including acquisitions, were opened over the last twelve months ending June 30, 2024, providing important access to new markets with expanding opportunities. Also, we received support from rental rates, which improved 1.9% compared to the year-ago level. On a sequential quarterly basis, rental rates in the second quarter declined 0.1%. The improvement in revenues was partially offset by lower average physical utilization, which closed the quarter at 66.4%, or a decline of 290 basis points compared to the year-ago result. Average physical utilization in the second quarter recorded a sequential quarterly improvement of 280 basis points. Finally, we closed the quarter with an original equipment cost (OEC) of $2.9 billion, a 10.7% increase from the year-ago quarter, including a gross fleet investment of $122.1 million in the second quarter and $196.5 million through the first six months of 2024. Our 2024 expected gross fleet expenditures remain in a range of $350 million to $400 million.” Mr. Barber described the Company’s sustained focus on expansion into key U.S. markets, stating, “We opened six new branch locations during the second quarter that enhance our presence in the Southeast, Gulf Coast and Mid-Atlantic regions of the U.S., representing attractive geographies with increasing construction activity and excellent long-term potential. Also, the completion of our latest acquisition in May 2024 resulted in the addition of four branches in northern and central Montana, increasing our presence in that state to six locations while maximizing our exposure to a diverse set of project opportunities. This long-term strategic commitment to expanding our market presence provides greater scale and advantageously positions the Company for future opportunities and improved financial performance. We concluded the second quarter of 2024 with 149 branches across 31 states, representing growth of approximately 45% over the last 36 months ending June 30, 2024.” Commenting on the outlook for the equipment rental industry, Mr. Barber said, “We reiterate our view of a more moderate level of spending and project starts as the construction industry continues to transition to a lower level of activity compared to levels in 2022 and 2023. Higher project financing costs and more stringent lending standards have led to curtailed spending, especially among smaller contractors. Conversely, we are encouraged by the continued growth in mega projects and increased infrastructure project funding. H&E’s participation in these projects continues to rise as the Company fully leverages its increased scale in the U.S. Mega projects are a meaningful growth opportunity for H&E and our industry, and given their size and long duration, they provide a more stable base of demand in support of key industry fundamentals.” FINANCIAL DISCUSSION FOR SECOND QUARTER 2024 Revenue Total revenues improved to $376.3 million, or 4.5%, in the second quarter of 2024 from $360.2 million in the second quarter of 2023. Total equipment rental revenues of $312.4 million improved 7.2% compared to $291.5 million in the second quarter of 2023. Rental revenues of $275.5 million increased 6.5% compared to $258.7 million in the second quarter of 2023. Sales of rental equipment totaled $34.9 million, a decrease of 11.9% compared to $39.7 million in the second quarter of 2023. Sales of new equipment of $10.7 million increased 20.5% compared to $8.9 million in the same quarter of 2023. Gross Profit Gross profit totaled $171.3 million in the second quarter of 2024, increasing 1.7% compared to $168.4 million in the second quarter of 2023. Gross margin declined to 45.5% for the second quarter of 2024 compared to 46.7% for the same quarter in 2023. On a segment basis, gross margin on total equipment rentals was 45.5% in the second quarter of 2024 compared to 46.8% in the second quarter of 2023. Rental margins were 51.0% compared to 51.8% over the same period of comparison. Rental rates in the second quarter of 2024 were 1.9% better than rates in the second quarter of 2023. Time utilization (based on original equipment cost) was 66.4% in the second quarter of 2024 compared to 69.3% in the second quarter of 2023. Gross margins on sales of rental equipment improved to 62.4% in the second quarter of 2024 compared to 59.1% in second quarter of 2023. Gross margins on sales of new equipment were 16.9% in the second quarter of 2024 compared to 14.9% over the same period of comparison. Rental Fleet The original equipment cost of the Company’s rental fleet as of June 30, 2024, was approximately $2.9 billion, representing an increase of $279.0 million, or 10.7%, from the end of the second quarter of 2023. Dollar utilization in
Queen City Robotics Alliance is Charlotte’s official host for the 2024 NASA Space Apps Challenge
This global event happens at The Zone October 5-6 Queen City Robotics Alliance announced that it has been selected as the Charlotte host for the 2024 NASA Space Apps Challenge in October. The event will take place at QCRA’s facility, The Zone, the weekend of October 5-6. The NASA International Space Apps Challenge is the world’s largest global hackathon. This two-day event on October 5-6 allows participants of all ages to use NASA’s free and open data sources and its Space Agency Partners’ space-based data to address real-world Earth and space problems. The 2024 theme is “The Sun Touches Everything.” During the event, participants (individuals and teams) gather at designated sites worldwide in person and virtually to address challenges submitted by NASA experts. Also known as a Hackathon, this event began in 2012 and primarily focused on technology in space but has evolved to include challenges here on Earth. Today, the NASA Space Apps Challenge features arts and humanities challenges alongside the technology challenges, thus building a more inclusive program. The challenges will also have different difficulty levels from elementary age to college students to industry professionals, so everyone is welcome to participate. These challenges range in complexity and subject, tasking participants to create everything from artistic visualizations of NASA data to conceptualizing and developing informational apps and software programs. NASA’s goal is to “promote innovation through international collaboration.” The format for the event is called a hackathon, which is an event set up by a company or organization that brings people together in a collaborative environment to find high-quality solutions for current issues. This event is free and open to all ages; however, anyone 18 and under must be registered and accompanied by a parent or other adult. To learn more about NASA’s program, use this link: https://www.spaceappschallenge.org/nasa-space-apps-2024/ QCRA CEO Kaiwen Cheng is excited that the organization has this unique opportunity to host this singular event because it will bring more recognition, interest, and outreach to QCRA’s STEM (Science, Technology, Engineering, and Math) programs in the Charlotte community. “This is an opportunity for students to use NASA to explore ideas,” said Cheng. “Space technology is a leading technology. It’s using space to inspire and impact our daily lives. Things like GPS and memory foam mattresses. We wouldn’t have those things today without NASA technology.” “This is also an exciting opportunity for our students,” he continued, “because it is an interesting and tangible way for them to explore STEM education and discover their talents through NASA and the wonders of space.” To receive Charlotte event updates, visit QCRA’s particular event website – Space Apps – Charlotte (google.com) – or follow QCRA’s social media outlets.
Staffing employment rebounds after July 4th holiday
Week-to-Week: Staffing employment up five points, New starts up 30 points Staffing employment improved during the week of July 8–14, with the ASA Staffing Index increasing by 5.2% to reach a rounded value of 88. The Index the week before Independence Day the index was at a rounded value of 90. Staffing jobs were down 12.7% compared with the same week last year. Many staffing companies still listed the July 4th holiday as a barrier that prevented further growth. New starts increased dramatically in the 28th week of the year, leaping by 30.0% from the prior week. Six in 10 staffing companies (60%) reported gains in new assignments week-to-week, well above the average of 42% per week so far this year. The ASA Staffing Index four-week moving average decreased from the prior week. Still, it held a rounded value of 88, and temporary and contract staffing employment for the four weeks ending July 14 was 10.6% lower than in 2023. “A near-complete rebound in staffing employment after the July 4th dip affirms continued stabilization within the industry. In the short term, the index will likely coalesce around its previous annual average of 90 as staffing employment remains challenged by a tightening macroeconomic environment. In the long term, however, this value is likely a floor from which staffing employment can improve once these conditions ease,” said Noah Yosif, chief economist at ASA. This week, containing the 14th day of the month, will be used in the July monthly employment situation report, which the U.S. Bureau of Labor Statistics will issue on August 2. The ASA Staffing Index is reported nine days after each workweek, making it a near real-time measure of staffing employment trends. ASA Staffing Starts are the number of temporary and contract employees placed in new assignments during the reporting week. ASA research shows that staffing employment has historically been a coincident economic indicator.
Future proof your supply chain: Embracing automation and AI
Supply chain leaders are turning to automation and AI to enhance operational efficiency, reduce costs, and elevate the customer experience Automation in both process and physical forms has been around dating back as far as the Industrial Revolution. However, it wasn’t until the 1980s that automation began to emerge in supply chains. Back then, warehouse automation—such as automated storage and retrieval systems (ASRS), sortation systems, and conveyors—involved expensive physical infrastructure and millions of dollars in capital. What’s more, as business models evolved or companies created new models, these approaches struggled to be responsive. Fast forward to today. With advances in technology that include AI/machine learning and RPA in the form of software robotics, modern automation such as AMRs and other automated systems are much more conducive for pilots with small investments—providing the ability to prove value before a larger commitment is made. This benefit is just one of several reasons supply chain leaders need to embrace the enormous potential for advances in automation and AI technologies, which will continue to gain momentum for years to come. Additional benefits include: A solution to labor shortages: Finding enough workers with the right skill sets has opened the door for the adoption of warehouse automation, including the use of automated sorting systems, picking and packing automation, robotic automation, and autonomous vehicles. In addition to reducing dependence on human labor, these solutions can increase efficiency by operating 24/7 without fatigue. This translates into reduced costs and higher productivity levels, helping warehouses meet customer demands even during peak periods. Additionally, automation systems can minimize the risk of injuries to human workers by performing hazardous tasks. Enhanced customer experience: Brands and retailers are investing heavily in automation and AI to meet consumer demands for fast and reliable delivery. For example, AI helps companies optimize routes and provide accurate delivery estimates. Additionally, AI-driven chatbots can track orders, handle routine inquiries, and offer product recommendations—enabling companies to minimize response times and allow human customer service representatives to focus on complex issues. Improved accuracy/reduced errors: Precision is one of the most significant advantages of warehouse automation. The implementation of automated systems can drastically reduce human errors, which can lead to more accurate order fulfillment and inventory management. This can go a long way in maintaining customer satisfaction while reducing waste. Enhanced demand forecasting: AI technology excels at forecasting demand by extracting insights from extensive repositories of data, including numerous sources such as past sales records, customer transactions, social media mentions, and prevailing economic indicators—helping supply chain and logistics organizations maintain the delicate balance between consumer demand and supply. Additionally, AI projection tools can help facilitate better collaboration between supply chain partners by allowing demand forecast data to be shared with suppliers. This helps businesses optimize inventory levels and minimize stockouts while creating a harmonized supply chain system. Real-time visibility: Today’s businesses need to have complete, real-time supply chain visibility. AI-powered systems provide this level of visibility by integrating data from various sources such as suppliers, manufacturers, logistics providers, and retailers. This helps businesses track inventory levels, monitor shipments, identify bottlenecks, and respond quickly to disruptions or changes in demand—which enhances overall supply chain agility. Take the First Step—Consult with a Supply Chain and Logistics Expert Before investing in automation and AI, supply chain leaders need to understand the complex nature of these technologies as well as the current and future state of the market. This can be effectively accomplished by leveraging the expertise of a supply chain logistics and implementation partner—one that can help you deliver a customer experience that will build brand loyalty and accelerate growth. About the Author: Recognized for industry thought leadership and customer value creation, Jagan Reddy brings 25 years of experience in building and delivering supply chain and logistics solutions to his position as Managing Partner of Netlogistik US.
New Industrial Manufacturing projects third month in a row of growth with 164 new projects for June 2024
Industrial SalesLeads announced the June 2024 results for the new 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 164 new projects compared to 147 in May and 110 in April. The following are selected highlights of the new Industrial Manufacturing industry construction news. Industrial Manufacturing – By Project Type Manufacturing/Production Facilities – 148 New Projects Distribution and Industrial Warehouse – 98 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 45 New Projects Expansion – 58 New Projects Renovations/Equipment Upgrades – 67 New Projects Plant Closings – 17 New Projects Industrial Manufacturing – By Project Location (Top 10 States) Indiana – 13 Ohio – 11 Tennessee – 10 North Carolina – 9 Ontario – 8 Florida – 7 California – 6 Georgia – 6 Illinois – 6 Texas – 5 Largest Planned Project In June, our research team identified 11 new industrial manufacturing facility construction projects with an estimated $100 million or more value. The largest project is owned by Eli Lilly & Company, which plans to invest $5 billion to expand its processing facility in LEBANON, IN. They are currently seeking approval for the project. Completion is slated for 2028. Top 10 Tracked Industrial Manufacturing Projects MISSISSIPPI: EV battery MFR. is planning to invest $2 billion in constructing a manufacturing facility in MARSHALL COUNTY, MS. They have recently received approval for the project. Completion is slated for 2027. NORTH CAROLINA: A pharmaceutical company is planning to invest $1.5 billion in expanding its processing facility in CLAYTON, NC, and is currently seeking approval for the project. ALABAMA: Automotive MFR. plans to invest $282 million to expand its manufacturing facility in Huntsville, AL, and is seeking approval for the project. QUEBEC: Trailer MFR. plans to invest $170 million in its manufacturing facility’s expansion, renovation, and equipment upgrades in SAINT-GEORGES, QC. The company is currently seeking approval for the project. FLORIDA: Aircraft Manufacturing Company plans to invest $135 million in constructing a laboratory, manufacturing, and testing facility in Jacksonville, FL. They are currently seeking approval for the project. TEXAS: A steel company is planning to invest $110 million in renovations and equipment upgrades at its manufacturing facility in BAYTOWN, TX, and is seeking approval for the project. NEW YORK: A pharmaceutical company plans to invest $106 million in a 43,000 SF expansion, renovations, and equipment upgrades at its processing and warehouse facility in Rochester, NY. It is currently seeking approval for the project. KENTUCKY: An aluminum product manufacturer plans to invest $85 million to expand its manufacturing facility in HENDERSON, KY, by 80,000 SF. They recently received approval for the project, slated for completion in 2026. WISCONSIN: A biotechnology company plans to invest $75 million in a 50,000 SF expansion and equipment upgrades at its processing facility in MILWAUKEE, WI. The company is currently seeking approval for the project. Construction is expected to start in Summer 2024 and be completed in Summer 2026. MISSISSIPPI: A defense technology company plans to invest $75 million to expand its manufacturing facility in MCHENRY, MS. They have recently received approval for the project. About Industrial SalesLeads, Inc. Since 1959, Industrial SalesLeads, based in Jacksonville, FL, is a leader in delivering industrial capital project intelligence and prospecting services for sales and marketing teams to ensure a predictable and scalable pipeline. Our Industrial Market Intelligence, IMI, identifies timely insights on companies planning significant capital investments such as new construction, expansion, relocation, equipment modernization, and plant closings in industrial facilities. The Outsourced Prospecting Services, an extension to your sales team, is designed to drive growth with qualified meetings and appointments for your internal sales team. Visit us at salesleadsinc.com.
Post-it note your way to achievement
People are not afraid of achieving success, they just don’t know how. Here’s one element that will put you on the path. You have several goals you want to achieve, but they are not written down. They just pop up in your head every once in a while, only to be buried in a black hole of procrastination, excuses, and guilt. Take heart, I found a way to beat the system. Post-it Notes. Want to achieve your goals? Here’s a tested and proven method. You already have all the tools necessary to achieve success: Post-it Notes Bathroom mirror Bedroom mirror Felt tip pen Write down big onesOn 3×3 yellow Post-it notes write down your three prime goals in short words. (Get funding for business; new car Toyota; New Client Bank in Milwaukee) Write down small onesUse three more notes and write down your three secondary goals in short words. (Read a book from Dale Carnegie; Organize desk; Build new closet) Put them upPost them on your bathroom mirror. Where you can see them twice a dayYou are forced to look at them every morning and evening. Keep looking until you actYou will look at them until you are sick of looking at them and begin to accomplish them. Seeing the note there every day makes you think about acting on it every day.Once you start acting, the note triggers a “What do I have to do today to keep the achievement on target?” The note forces you to act. To achieve your goal. Revisit your success every day.After the goal is achieved post it on the bedroom mirror so you can see your success every time you look in that mirror. The program is simple. The program works. The results will change your attitude. The results will change your life. The results will change your outlook about your capability of success achievement. You will look at those Post-it Notes until you are sick of looking at them and begin to accomplish them. To Achieve Goals You Must Do the Following… Make a decision as to which goals you specifically want to achieve. Make a personal commitment to yourself to do whatever is necessary to achieve your goals. Be relentless. Don’t quit in the pursuit of your achievement. Do a little toward your goal every day. Write down how much (or how little) you must do each day in order to achieve. Harness your personal power. Discipline yourself, and focus on your commitment. Enlist the help of others who will support you. Give up goal (smoke, drink, eat) Share with and seek the support of everyone you know. (Family, friends, coworkers). Go up goal (Better on the job, best salesman) Share only with family and friends to avoid on-the-job jealousies. You must get the support of others to achieve your goals. It’s easy to getsupport all you have to do is give Don’t be vulnerable to the negative influence of other people. Work on two of your goals every day, even if only for a short time. Visualize yourself doing the steps necessary to achieve your goal. Visualize yourself actually achieving your goal. Don’t let other people tell you…”You can’t.” Tell them how you will and ask for their support! By posting the goal in the bathroom you are consciously reminded of your goals several times a day. From there, your subconscious gets into the act – gnawing away at your soul until you are driven to take positive action. Achievement actions. At last, you can say the magic words. Scream them I DID IT! (Screaming positive things always feels wonderful.) Here comes the best part. Take the Post-it Note off the bathroom mirror and triumphantly post it on your bedroom mirror. Now, every day you get to look at your success. WOW. Not only does it feel great, but you can set the tone for a successful day, every day, first thing in the morning by looking at success, remembering how good it felt, and thinking about what it took to do it. Plus, it gets you motivated to keep achieving more. By the time you have your bedroom mirror full of achieved Post-it note goals, you’ll have enough money to go out and buy a bigger mirror and the house to put it in. Post-it. Post haste. 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.
Help is on the way
According to a PwC Pulse Survey ….40% of Executives plan to implement significant reorganization, including layoffs. That is up from 23% a year ago. The changes will focus on productivity boosts and top-line growth, with technological changes leading the way to achieve the goals planned. It appears that margin compression is the key driver of the reorganization. If you cannot pass on costs to customers and remain competitive, actions need to be taken to reduce costs and find ways to increase revenue. Of course, artificial intelligence (AI) will be part of this program. A. McKinsey from McKinsey & Company has also reported that its latest Global Survey reflected that 65% of the respondents are using Gen AI regularly, double the percentage from their last survey ten months ago. WOW! And 75% of the respondents predicted that gen AI would significantly change their industries in the years ahead. The benefits of AI use relate to both cost decreases and revenue increases in the business units adopting AI technology. Many are using AI in multiple functions, meaning their analysis indicated that it would work in this function and provide a positive ROI. This is all valuable information, but we must consider that these McKinsey respondents are large companies with IT departments and managers who can spend to get the “learning” they need to make decisions about AI. Can smaller companies do the same thing? Not so sure they can, but if they do not, they will find the larger companies nipping at their heels in terms of supplying services to customers. It is no secret that large company reps attend conventions and shows to learn how to steal gross profits from smaller companies. Does anybody know Amazon? I have probably read about 100 AI-related articles to figure out what I would do if I were sitting in your office and decided that the company needs to take AI seriously or find ways to offset threats from competitors. So, what did I do next? I read another twenty-five articles and made fifteen phone calls to find a source to help me with my problem. One call I made was to my granddaughter, who happens to work in the system installation world, and told me why we can do this now. when I asked her for a referral, she responded, “Hell, we do that and are very good at it.” She works for a CPA firm that specializes in high-end financial management and, along those lines, has an IT department with a particular unit that helps companies of all sizes with AI implementation. The firm is Connor Group. I asked my granddaughter to send me the section from their website regarding AI, and after going through every page of the website material and related articles, I said to myself, “Self, this is what you have been looking for.” I say that because any small to medium-sized company could use this material to get a very good understanding of what is available, what choices need to be made, how to go about implementing the system, and how to measure the results from the standpoint of return on your investment (ROI). Not only did I send Dean a copy of this material to make it available to you, but I also called the managing partner of Connor Group and asked him if he would be willing to set up contact with our readers to address questions about how to set up AI, provide a range of the cost to do that and help you determine if your data can give the “answers” you are looking in terms of decreasing costs or increasing sales. Dean jumped on board and suggested we make this a part of the monthly Wholesaler publication you receive. This way, we could answer readers’ questions and share the information with our print and electronic readers. Only the questions would appear; the sender’s name, rank, and serial numbers would not appear. In short, MHW is taking an active role in making your company more efficient and profitable and assisting you with your AI effort so you get it done right the first time. In addition, I could see this work for twenty groups or work for OEMs who need to keep their dealers competitive. I could see dealers helping customers relate to AI. If you helped a customer become more profitable, do you think you would lose the business any time soon? In the end, we wind up with systems designed for equipment dealers. And you may want to inform your OEM that this opportunity is available. They may even want to work out a deal geared to their brand. What is in it for Connor Group? Fees, of course, if you use them to assist you. The goal is to learn the industry and get to the point where they have the expertise to where dealers would go to them first before calling another vendor. I think you will like their AI materials and see what I mean by saying they are presented in an understandable format using the right sequence of events. What do you think? What else can I do for you? Let us hear from you. Send your comments to Dean. His email address is editorial@MHWmag.com. I made a deal with him to only forward the nice ones and toss the others. On another front, I sent Dean the last issue of John Mauldin’s Thoughts from the Front Lines, dated June 15, 2024. It will give you an understanding of what we are in for and who it will hurt. There is more reason to shoot for the moon regarding AI to keep your financial position in the top 20% of the market. About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993. E-mail editorial@mhwmag.com to contact Garry.
May 2024 makes a comeback with 147 new Industrial Manufacturing Projects
Industrial SalesLeads has announced the May 2024 results for the new 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 147 new projects compared to 110 in April and 174 in March. The following are selected highlights on new Industrial Manufacturing industry construction news. Industrial Manufacturing – By Project Type Manufacturing/Production Facilities – 129 new projects Distribution and Industrial Warehouse – 73 new projects Industrial Manufacturing – By Project Scope/Activity New Construction – 42 new projects Expansion – 52 new projects Renovations/Equipment Upgrades – 66 new projects Plant Closings – 14 new projects Industrial Manufacturing – By Project Location (Top 10 States) Indiana – 10 Ohio – 10 Texas – 9 Michigan – 8 New York – 8 California – 7 Pennsylvania – 7 South Carolina – 7 North Carolina – 6 Quebec – 5 Largest Planned Project During May, our research team identified 22 new Industrial Manufacturing facility construction projects with an estimated $100 million or more value. The largest project is owned by Honda Canada Inc., planning to invest $15 billion to construct an EV battery manufacturing complex in ALLISTON, ON. They are currently seeking approval for the project. Completion is slated for 2028. Top 10 Tracked Industrial Manufacturing Projects ILLINOIS: EV MFR. plans to invest $1.5 billion in their manufacturing facility’s expansion and equipment upgrades in NORMAL, IL. They are currently seeking approval for the project. INDIANA: Automotive MFR. plans to invest $1.4 billion in its manufacturing facility’s expansion, renovation, and equipment upgrades in PRINCETON, IN. Construction is expected to start in Fall 2024, with completion slated for late 2026. QUEBEC: A global technology company plans to invest $730 million in the expansion and equipment upgrades on their manufacturing facility in BROMONT, QC. They are currently seeking approval for the project. TEXAS: Automotive MFR. plans to invest $531 million to expand its 1 Lone Star Pass manufacturing facility in SAN ANTONIO, TX by 500,000 SF. They are currently seeking approval for the project. MINNESOTA: Semiconductor MFR. plans to invest $525 million for their manufacturing facility’s expansion and equipment upgrades in BLOOMINGTON, MN. They are currently seeking approval for the project. GEORGIA: Hygiene products MFR. plans to invest $418 million for the expansion and equipment upgrades on their manufacturing, warehouse, and office facility in MACON, GA. They are currently seeking approval for the project. KANSAS: Automotive MFR. plans to invest $390 million for the renovation and equipment upgrades on their manufacturing facility at 3201 Fairfax Trafficway in KANSAS CITY, KS. They are currently seeking approval for the project. NORTH CAROLINA: Solar panel MFR. plans to invest $300 million for the construction of a 1-million SF manufacturing facility in GREENVILLE, NC. They have recently received approval for the project. NEVADA: Recycled paper product MFR. plans to invest $272 million in the construction of a recycling facility in WINNEMUCCA, NV. They have recently received approval for the project. WASHINGTON: The aerospace company is planning to invest $200 million for a 70,000 SF expansion and equipment upgrades on their manufacturing facility in SPOKANE, WA. They are currently seeking approval for the project. About IMI SalesLeads, Inc. Since 1959, IMI SalesLeads, based in Jacksonville, FL is a provider in delivering industrial capital project intelligence and prospecting services for sales and marketing teams to ensure a predictable and scalable pipeline. Our Industrial Market Intelligence, IMI identifies timely insights on companies planning significant capital investments such as new construction, expansion, relocation, equipment modernization, and plant closings in industrial facilities. The Outsourced Prospecting Services, an extension to your sales team, is designed to drive growth with qualified meetings and appointments for your internal sales team. Visit us at salesleadsinc.com.
Safety 2024 in Denver features session with OSHA’s Parker
The American Society of Safety Professionals (ASSP) will welcome Doug Parker, assistant secretary of labor for occupational safety and health, at next month’s Safety 2024 in Denver. Parker will discuss the latest Occupational Safety and Health Administration (OSHA) activities before taking questions from attendees and media members. The special session at ASSP’s professional development conference and exposition will start at 10:30 a.m. MT on Friday, Aug. 9, in front of thousands of workplace safety and health professionals in the Mile High Ballroom at the Colorado Convention Center. Parker will present “An OSHA Update” with insights on regulatory priorities, enforcement actions, and outreach initiatives. The 60-minute session will include an interactive Q&A with questions submitted via text by audience members. Afterward, Parker will meet with members of the press at 11:45 a.m. MT in Room 505. “It’s always an honor to welcome Mr. Parker to our signature event where safety and health professionals appreciate hearing from him directly about important workplace safety developments,” said ASSP President Pam Walaski, CSP, FASSP, who will moderate the live Q&A on stage. Parker became the 13th assistant secretary of labor for Occupational Safety and Health on Nov. 3, 2021. He has participated in similar ASSP sessions at Safety 2022 in Chicago and Safety 2023 in San Antonio. The OSHA session is a dynamic three-day program to inform and inspire occupational safety and health professionals. Safety 2024 is the 63rd annual conference of the world’s oldest professional safety organization. ASSP is headquartered in the Chicago suburb of Park Ridge. Safety 2024 attendees can register online, with groups of eight or more from the same company qualifying for a discount.