Using listening to increase presence and evolve your leadership
Being present in today’s world is more difficult than ever. Everyone is constantly bombarded by emails, text messages, social media, news, advertisements, and other distractions. A lack of presence, especially in leadership, can often lead to poor communication, a lack of rapport with those around you, and volatility, uncertainty, confusion, and ambiguity in the workplace. One of the easiest ways to solve this problem is to understand and change how you listen to those around you. Most people don’t focus on or participate in listening in a way that actually makes a difference. Learning to truly listen and engage with whomever you are talking to enables connection, builds trust, and elevates flow across the board. When you strengthen your ability to listen, you become a better communicator. When you level up your ability to hear, you show up as somebody who is more open to feedback and who appreciates the contribution of what others are thinking and feeling. Upleveling your listening begins first and foremost with understanding what, how, and when you aren’t really listening. Listening from Obligation When this happens, the listener makes little to no effort, either due to various distractions or a lack of care about what the speaker has to say. Common behaviors when listening at this level are multitasking, such as playing on your phone or scrolling through emails when someone is talking to you, tuning out/daydreaming, anticipating what you think they are going to say, and interjecting words for them. This kind of listening makes it impossible to develop rapport. This level of listening also includes pretend listening, where you are not paying attention to the speaker, however you still act as though you are listening. The listener’s brain pays attention to other things, but they maintain involvement in the conversation. Think of sitting near someone very talkative on the plane or talking on the phone with a chatty family member. You aren’t absorbing or understanding the information the speaker is sharing. Listening from the Inside This is selective listening or downloading. At this level, you are only listening to what someone else is saying to confirm facts you already believe to be true. You are listening inside of your existing context. You parcel out information that you perceive to be uninteresting, lacking in value, or that doesn’t conform to your biases and preconceived notions. This listening level is problematic because you only hear what you want. When you listen this way, it’s all too often to brush feedback aside and/or filter it out altogether. You know you’ve been listening like this when you come out of a conversation, and everything you expected to happen happened. This type of listening is all about you. Your purpose in listening is to validate yourself and invalidate another if they disagree with you. There is no freedom; nothing new will be created from this kind of listening. Listening for New Information This level of listening is about seeking new information, new data, and new perspectives. It’s listening to learn. However, you are still listening for what’s in it for you. You’re not curious, but listening to gain knowledge or get something out of the listening. You are taking what you already think and building upon it. At this level, you are open to hearing something you haven’t heard before. You have some new data points and information that challenge your assumptions. Perhaps it exposes some new content or new reality to you. Here, you can actually walk away from the conversation with a memory of what was said and how it changed your perception. You leave the conversation thinking new things or in new ways. Listening with Curiosity and Compassion In this level of listening, you are really connecting to the other person. You’ve got an empathic, emotional connection. This is when you’re listening to soul to soul, heart to heart, and seeing the experience through another person’s eyes. You’re not only challenging your own assumptions but actually considering that the other person’s reality is valid. You get to experience that person’s experience. Most one-on-ones should be done with this empathic, emotional connection. You’re letting go of your agenda and having an open mind and heart, building trust and deepening your relationship with this person. You’re curious. This is when you are fully engaged and focused on the speaker’s words and what those words mean to you and to the speaker. Nothing distracts you from the person with whom you are speaking. They have your full and undivided attention and it is clear to them that this is so. Listening for What’s Possible This level of listening is generative. You have moved beyond any friction and are completely immersed in flow. Everybody is participating. You both are in service of something bigger than the agenda and listening with an open will. At this level, you aren’t just listening to the person but also acknowledging the future that wants to be created. This is where innovation happens. This is where the collective genius is not just tapped into but realized. This is the highest and most meaningful level of listening and is where you want to spend as much time as possible. Listening at the Highest Level Every Time We all need diverse opinions and viewpoints. When you listen from the lower levels of listening, which is not really listening at all, you miss out on so much, from critical information and feedback to a chance to develop rapport with your team, a loved one, or even a total stranger. The most effective leaders all excel at listening from the highest level. They make people feel valued, respected and understood. They are also always honing their skills and becoming better listeners. They continually work on opening their mind, heart, and will. It’s a continual process of evolution. They are present and focused on whatever or whomever is in front of them. Meaningfully listening to those around you enables you to elevate yourself as a leader, build trust
ASSP expands alliances to advance worker safety
The American Society of Safety Professionals (ASSP) recently signed memorandums of understanding (MOUs) with three safety organizations that will expand the Society’s efforts to advance worker safety and health. The Society extended an existing alliance with the National Institute for Occupational Safety and Health (NIOSH) and created new strategic partnerships with the International Safety Equipment Association (ISEA) and the Mechanical Contractors Association of America (MCAA). The three alliances are among many joint agreements ASSP now has in place to improve the well-being of workers in all industries. “We recognize the benefits of collaboration to improve occupational safety and health practices while elevating the voice of our profession,” said ASSP President Pam Walaski, CSP, FASSP. “Together, we strive to strengthen advocacy efforts, implement programs, and create standards that reduce worker illnesses, injuries, and fatalities.” Over several years, ASSP and NIOSH have worked cooperatively on conducting and implementing workplace safety research, promoting best practices and professional development opportunities, and encouraging employers to use safety and health management systems that are the cornerstone of successful businesses. ASSP’s work with ISEA will better connect the Society to leading businesses and corporate leaders involved in the manufacturing, testing, and application of personal protective equipment and safety products. The agreement will also support the development of voluntary national consensus standards. ASSP’s work with MCAA will widen the Society’s access to safety professionals through greater involvement in MCAA’s safety and health conference – one of the longest-running construction conferences. The annual event offers training and education courses designed to improve safety practices among mechanical contractors. “Our mutual interests in improving the well-being of workers create valuable opportunities to work together,” Walaski said. “Our MOUs with a range of organizations enhance our ability to engage in more stakeholder meetings and safety education events throughout the year and expand the safety profession’s influence in optimizing organizational performance.” ASSP is the world’s oldest professional safety organization, with 35,000 members who have advanced worker well-being and the safety and health profession since the Society’s inception in 1911. ASSP provides member communities, serves as a trusted advisor, and elevates safety through workforce development.
Integrity Staffing expects Q4 growth in key Manufacturing and Industrial Sectors
Light Industrial, E-Commerce, Call Center, and Food & Beverage Production and Packaging Sectors Seasonal Workforce to Increase 30-50% Integrity Staffing Solutions, a workforce solutions provider, anticipates significant growth in the Light Industrial, E-Commerce, Call Center, and Food & Beverage Production and Packaging sectors for Q4 2024. Seasonal Workforce Growth Predictions E-commerce businesses are expecting substantial growth for Q4 2024. According to recent forecasts, the global e-commerce sector is projected to see a 9.4% increase in sales during 2024. This growth is driven by sustained consumer preferences for online shopping and the anticipated surge in demand during the holiday season. As a result, Integrity Staffing foresees a 30-50% increase in seasonal workforces to support Q4 order volumes. Todd Bavol, CEO of Integrity Staffing Solutions, emphasized, “Talent competition will be fierce this holiday season. To meet seasonal hiring demands, businesses should make Q4 labor planning decisions now.” Challenges of High-Volume Staffing The current labor market presents a mix of challenges and opportunities. Businesses face unique recruitment and retention challenges with fluctuating unemployment rates and varying labor availability across regions. High-volume staffing involves overcoming recruitment, retention, and efficient workforce management hurdles. Integrity Staffing employs advanced AI tools and streamlined processes to manage these challenges effectively. The strategic approach ensures businesses can access skilled talent at the right time. Integrity Staffing Offering Q4 Labor Planning Support Integrity Staffing offers a suite of services designed to address each sector’s unique needs. The tailored staffing solutions include comprehensive recruitment processes, rigorous screening, and workforce management strategies. To help companies get a jump start on their peak and seasonal labor planning, Integrity Staffing is offering complimentary 30-minute workforce assessments. This service gives businesses insights and strategies to manage staffing needs effectively during the busy holiday season. Companies are invited to take advantage of this opportunity to ensure they have the workforce required to meet the demands of the upcoming season. Assessments can be scheduled here. Jaime Donnelly, President of Integrity Staffing Solutions, adds, “We’re proud to provide our large major retailers and e-commerce clients with unparalleled service and contingent workforces that scale to year-round needs.”
NPE2024 unveils official registration and exhibit space data
NPE2024: The Plastics Show announced its final registration and paid exhibit space results, totaling 51,396 registrants and 1,106,767 square feet, respectively. Held from May 6-10 in Orlando, Florida, NPE2024 saw a record-breaking number of international attendees, first-time attendees, and paid exhibit space. “NPE2024 was truly a momentous event in plastics industry history,” said Matt Seaholm, PLASTICS’ Chief Executive Officer, “With an outstanding international turnout, NPE2024 is re-established as a global hub for the plastics industry, welcoming professionals and innovators from around the world. As we look ahead to our next show in 2027, we’re seeing incredible potential for more industry-shaping collaboration to establish a new standard for circularity and ground-breaking plastic applications.” Additional NPE2024 numbers include: 15,156 international registrants from 133 countries, establishing NPE2024 as the most global show in the event’s history. 36,123 domestic registrants, 70% of all registrants (this does not include 0.23% who did not respond). 20,378 first-time attendees, a nearly 9% increase over NPE2018. With the outstanding number of NPE2024 international registrations, the results also revealed a significant growth in attendance across different regions, including: 4,438 Latin American (LATAM) registrants, 29.3% of international registration and a 9.9% increase of LATAM registrations compared to NPE2018. Significant registration increases were seen in Brazil, Colombia, and Guatemala. There were 2,801 European registrants, 18.5% of international registrations, and a 23% increase of European registrations over NPE2018, with the largest registration increase from Italy. “This growing presence of European and LATAM registrants is indicative of the respective countries’ impact on the plastics industry,” said Dr. Perc Pineda, PLASTICS’ Chief Economist. “As the US is the second largest importer of plastics machinery, accounting for 12% of global imports, European countries make up six of the top ten countries supplying the US in 2023, totaling $1.6 billion. Similarly, over the past five years, US exports of plastics machinery to Latin America have also grown by 6.5% annually, supporting the region’s expanding plastics industry.” In addition to the attendance results, NPE2024 marked the largest show in history with the following exhibit space statistics: 1,106,767 total paid exhibit space, designating an additional 10,581 square feet over NPE2018 2,202 exhibitors, a 10.3% increase over NPE2018. NPE2027 is set to return to Orlando from May 3-7, 2027.
American Logistics Aid Network activates for Hurricane Beryl
On Monday, July 8, 2024, Beryl made landfall in Texas as a category one hurricane, bringing heavy winds, flash flooding, and state-wide power outages. ALAN (American Logistics Aid Network) mobilized its network and works with non-profit and business partners to aid response efforts. On Tuesday, July 9, ALAN hosted a Logistics Coordination Call with responding non-profit partner organizations. During the call, partners shared their current response capabilities and identified potential logistics gaps. ALAN’s response coordination efforts – which include fielding and filling specific requests for logistics help – will continue this week as additional needs are identified. “Most of our requests for assistance arrive after a hurricane or tropical storm has hit, sometimes weeks, months, or even years into recovery,” said ALAN’s Operations Coordinator, Alexia Nobles. “That’s because each storm winds up having very different outcomes and pain points. And you can’t predict what those will be – and where relief organizations will require supply chain assistance the most – until after the storm has moved through.” ALAN’s Disaster Micro-Site is the best resource for viewing open logistics needs for response efforts. It’s also where we post critical resources and information in the form of Situation Reports as we receive new updates. “We are likely to witness supply chain impacts given parts of the Caribbean, Mexico, and U.S. Gulf Coast were all affected,” said Kathy Fulton, ALAN’s Executive Director. “ALAN will continue to convene its public and private sector networks to provide visibility, smart logistics solutions, and compassionate humanitarian response as relief efforts demand.”
Manufacturing Technology Orders grow in May 2024 despite sustained high interest rates
Manufacturing technology orders, measured by the U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology, totaled $386.7 million in May 2024. New machinery orders were up nearly 22% from April 2024 and 6.5% over May 2023. This is the first month in 2024 where the value of orders placed exceeded those of the same month the previous year. Through the first five months of 2024, orders totaled $1.8 billion, a 12.2% decrease compared to 2023. Manufacturers have realized they can no longer outwait the Fed’s “higher for longer” interest rate strategy. As a result, they are beginning to increase capital equipment purchases to meet the sustained demand for goods and machinery from consumers and businesses, even as high interest rates persist. Despite 2024’s mild slump in machinery orders compared to the beginning of 2023, cutting tool orders, as measured by the Cutting Tool Market Report, a collaboration between AMT and the U.S. Cutting Tool Institute (USCTI), show 2024 consumption holding steady at record levels. This indicates that despite reported hesitation to invest in additional machinery, production levels remain elevated, which is confirmed by the measure of industrial production from the Federal Reserve. Contract machine shops, the largest consumer of manufacturing technology, increased their orders from April to May 2024 but significantly less than the industry’s overall growth. While some OEMs have made additional investments despite heightened interest rates, contract machine shops have consistently failed to keep pace with the overall market throughout 2024. Electrical equipment manufacturers are having the best start to the year since the record-setting start of 2022. Similarly, power generation and transmission equipment manufacturers are investing at the second-highest year-to-date rate since 2008. These industries undoubtedly benefit from the government investment authorized by the CHIPS and Infrastructure Acts and are, therefore, less sensitive to interest rates than others. As previously reported, the Biden administration is in a rush to spend the remaining money allocated by Congress under these bills in case President Joe Biden does not win reelection in November. That spending could accelerate, given the public’s response to Biden’s debate performance at the end of June. The automotive sector continued to purchase machinery but at a much slower pace than the previous two years. Vehicle assemblies increased in May 2024 and remained above the monthly average this year. Like manufacturers awaiting lower interest rates before investing in machinery, consumers may have grown tired of waiting out the Fed, as new vehicle sales increased in April and May. The Fed’s interest rate path has thrown a wrench in many economic forecasts since the beginning of the year. The outlook for manufacturing technology orders was no different. The beginning of the year fell well short of expectations, but the lag behind 2023 has narrowed in recent months. Whatever course the Federal Reserve eventually takes with interest rates, the USMTO data shows the appetite for additional manufacturing capacity growing as we approach September’s IMTS 2024 – The International Manufacturing Technology Show, the largest manufacturing trade show in the Western Hemisphere.
Queen City Robotics Alliance announces two new board members
Queen City Robotics Alliance has announced the addition of two new board members – Robert Hillman and Brian Keiger. Robert Hillman is the founder and managing partner of RLH Consulting. Founded in 2008, the company handles business development, structured credit, financial advisor/strategist, strategic advisory, and campaign management for corporations and individuals. He is also on the City of Charlotte’s Business Advisory Committee (BAC). This committee provides recommendations and advice to the City Council on ways Charlotte can improve business development, emphasizing small businesses while providing a forum to raise issues, discuss issues, and have input into City policy responses. Mr. Hillman received his Bachelor of Science in Electrical Engineering from the Massachusetts Institute of Technology and has an MBA from the Stern School of Business at New York University. Mr. Hillman joined the board earlier this year and looks forward to growing QCRA’s outreach into Charlotte’s underserved communities. Brian Keiger is Vice President for Conveyco Technologies, a leading system integrator in warehouse automation, and has been involved in the supply chain industry for over 34 years. Mr. Keiger is also active in MHI, North America’s leading material handling trade association, holding a seat on several committees, and is the chair of the Mobile Automation Group. He also holds seats on the Industry Advisory Panel for the National Center of Supply Chain Technology Education (NCSCTE) and on the Systems Engineering and Engineering Management (SEEM) Advisory Board at the University of North Carolina Charlotte. He received his bachelor’s degree in mechanical engineering from North Carolina State University. Mr. Keiger joined the board last month because “STEM education is important, and these kids are important.” He believes STEM education goes beyond imparting knowledge to nurture critical thinking skills, enhances scientific literacy, and cultivates the next generation of trailblazers and problem solvers. “At QCRA we’re building more than a STEM education program, we’re building kids,” Mr. Keiger says. “We’re preparing the next generation’s workforce. As a businessman in an ever-evolving supply chain industry, this is crucial. The talent is right here, already being developed. All we have to do is invest.”
How Self-Nurturing Therapy can make you a better leader Seven steps to practice now
Navigating leadership brings a unique set of challenges and opportunities. A young executive, Sarah, faced complaints from her team, who described her as dismissive and devaluing. She was initially blindsided and defensive, yet, as do excellent leaders, she focused on improvement–learning that how leaders make people feel is essential to retention, culture, and ultimately profit. As frontrunners in your field, you know strategies to build your team, yet something is preventing the desired outcome. What is getting in your way? Failure to emotionally connect with your team members makes “lonely at the top” inevitable and creates a culture vulnerable to disconnection, dissatisfaction, and lack of cohesiveness. On the other hand, a positive connection with your team brings an entirely new level of positive, productive, and happy relationships. Rather than focusing solely on strategies to improve interactions, a new approach called Self-Nurturing Therapy (SNT) targets the part within you that carries the fear of vulnerability and acts as a gatekeeper to allowing meaningful emotional connection with others. How SNT Enhances Leadership Leaders learn to change their relationship with vulnerability rather than attempting to eliminate it. SNT encourages leaders to engage with their emotions, building resilience and capability. This emotional strength translates into better communication, sharing of creativity, and a more effective leadership style. Self-nurturing therapy is a process that teaches how to soothe your vulnerable part–specifically your inner child–and learn to thrive in relationships. Here are seven steps that leaders can practice now to enhance their performance: Get to Know Your Inner Child: Give your young self the attention she deserves. By acknowledging and soothing early wounds, leaders can reduce reactive response styles. Sarah, for example, discovered that her reaction to dismissiveness was a self-protective reaction rooted in a childhood of bullying. Sarah’s inner child was so anxious that the corporate strategies she had learned to communicate with team members were interrupted by her emotional state. To reduce reactivity, create a timeline of your life, identifying experiences where you felt shame or vulnerability. Knowing where your self-protection emerged reduces reactivity in interactions with others. Create Emotional Awareness. Leaders are taught the importance of communication, but without understanding your emotions, interactions will fall flat. To resolve this, reflect on what earlier experiences taught you about others. Do you see others as trustworthy and safe or risky and uncertain? Did safe people support you when bad things happened, or could you only count on yourself? Sarah identified that years of suffering from bullying left her feeling alone in her journey. She realized that interactions elicited fear that they would disappoint and an immediate internal reaction to keep conversations short and direct so they would end quickly. Create a Soothing Mantra. Negative early life experiences that are left unprocessed don’t evaporate. Instead, the inner child holds them tight, a reminder to never put yourself at physical or emotional risk again. Some things would have been helpful to you as a child that you never received. Practice acknowledging and accepting emotions from your early years. Start by asking yourself, “What does my inner child need to hear when she is worried?” You’ve got this, or That was then, this is now, offer reassurance and empower a secure response. Think of Your Inner Child as Your Gatekeeper. Excellent leaders have a business gatekeeper to ensure they are insulated from the risk of overscheduling or losing focus. Your inner child is the gatekeeper to how much you allow yourself to care for and invest in relationships emotionally. As a competent adult, you hold the capability to assess those trustworthy enough to be part of your inner circle. Write a list of people who have shown integrity and take a moment to acknowledge them. Notice how your interaction improves when you assure your gatekeeper that you are safe, secure, and confident in your ability to assess others. Purposefully Value Your Feelings. What did your child-self need to cope during difficult times but was denied? For some, like Sarah, it was knowing they were safe, while for others, it was hearing, “You’re loved”. Good parents value what their children need and feel. As an adult, you can self-deliver what you need. Rewire negative thought patterns rooted in your early experiences with positive messaging. Were you taught to believe that other people’s wants and desires were more important than your feelings? Tell yourself, “You matter.” Were you taught to believe harmony was more important than caring for yourself? Know, “You. Matter”. Thrive Emotionally at Work. See team members as worthy of having a meaningful relationship with you. While your inner child tries to protect you from caring too much, it disrupts the soft skills that make good leaders great. Communication without empathy and understanding is risky for leaders. Instead, practice curiosity about what people are experiencing and, equally as important, what emotional response these interactions evoke within you. Use open-ended questions: “How was your weekend?” rather than “Hope you had a good weekend.” Leaders who know their people receive increased investment from them and a willingness to go the distance when asked. Learning to Tolerate Emotions Requires Practice. If you have a loud inner child determined to protect you from vulnerability, showing them that you’re taking the lead requires practice. Avoid becoming frustrated with yourself and instead respond with self-kindness. It’s been a journey to achieve your leadership goals, and you are constantly growing. Mastering comfortability with emotions leads to joy for self and high-performance teams and requires practice. Integrate reflective journals, conversations with trusted friends, and meditation or yoga to support you through this rewarding process. Celebrate the moments when you notice emotions, feel the discomfort, and remind yourself, “Hey, I’m okay!” In summary, leaders who engage in SNT experience numerous benefits that enhance their effectiveness and happiness in their role. Leaders can create a positive, empowering environment that drives organizational success by healing past traumas and fostering present-moment awareness. About the Author: Julie Gowthorpe, PhD, RSW, is a public speaker and author. In addition to her private practice, Gowthorpe contributes her expertise
500 Episodes!!! Takeaways from five years of the podcast
500 episodes! I cannot believe it, but here we are five years and 500 episodes later. I didn’t think the podcast would go this far when I released episode 1 in 2019, but here we are. I have to say that I owe it to you, the listener. Without the listener finding value somewhere in the podcast, well the motivation probably would have died down at some point. However, the consistent feedback that listeners have learned something through our content has been a great motivator. For this episode, I’m diving into some of my takeaways from the last 500 episodes. I’d love to hear some of your thoughts in the comments as well. Key Takeaways Step outside your comfort zone. When I started the podcast, I was unlikely to volunteer to speak in public, unlikely to volunteer to present in front of a group, and even unlikely to attend a networking event or approach someone I didn’t know at an event. The podcast pushed me out of that comfort zone and has been incredibly rewarding. I’ve now done over 500 interviews with people who essentially started out as strangers, have grown my network immensely, and even spoke in public at multiple events. When you get butterflies in your stomach, push forward and do the thing. The warehousing industry is incredibly exciting. Over the last five years, I have had a unique perspective to see many of the innovations and technology that are pushing our industry further. One of the most exciting parts of this is the fact that many of the cutting edge technologies that are coming into the world are finding practical applications within the warehouse. It’s great to see where technology is meeting classic warehouse processes and making those processes better for the workers themselves. Embrace the warehouse community! One of the reasons I started the podcast was to try to connect with more people in the warehouse, and I’m happy to say that there is a thriving community in the space. Many people have been so willing to help me along the way through teaching and connecting. It has been great to be able to build such a helpful network and I encourage you to embrace the community as well. Connect with that person and reach out! Once again, thank you so much for supporting the podcast! Be sure to stay tuned for the next 500.
June 2024 Logistics Manager’s Index Report® LMI® at 55.3
Growth is INCREASING AT AN INCREASING RATE for: Transportation Prices. Growth is INCREASING AT A DECREASING RATE for: Inventory Costs, Warehousing Capacity, Warehousing Utilization, Warehousing Prices, and Transportation Utilization. NO CHANGE for: Transportation Capacity Inventory Levels are CONTRACTING. The Logistics Manager’s Index reads in at 55.3 in June of 2024, this is very slightly down (-0.3) from May’s reading of 55.6. The overall index has expanded for seven consecutive months and in 10 of the last 11 months. While the overall index has not changed significantly this month, there has been considerable movement in some of the individual metrics. Inventory Levels (+0.8) contracted for the second month in a row at a rate of 47.4. With inventories down we also saw associated dips in the expansion rate of Inventory Costs (down 1.6 points to 63.6) and a very notable drop in Warehousing Utilization (down 11.4 points to 52.6). This slow down is counteracted by a tightening of both Warehousing Capacity (-3.0) at 52.6 and Transportation Capacity (-7.3) which read in at 50.0 – the first time this metric has moved out of expansion since March of 2022 which was the last month before the freight downturn began in earnest. We also see a related increase (+3.2) in Transportation Prices, which at 61.0 are at their highest level since September of 2022. At an 11.0-point difference, Transportation Prices have not exceeded Transportation Capacity by this much since April of 2022. This marks the second consecutive month that prices have exceeded capacity, and Transportation Capacity has moved out of expansion and to “no change” at 50.0. If this trend continues – as one might expect with peak season coming – then we would be comfortable calling the end of the freight recession that has gripped the industry since the Spring of 2022. The freight recession is not technically over yet, but this is the is what the beginning of a recovery might look like. As will be discussed below, much of this expansion can be attributed to strong reports from Upstream respondents, as well as stronger readings in the second half of the month. Researchers at Arizona State University, Colorado State University, Florida Atlantic University, 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 50.0 indicates that logistics is expanding; a reading below 50.0 is indicative of a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in June 2024. The LMI read in at 55.3 in June, down slightly (-0.3) from May’s reading of 55.6 and indicating a moderate rate of expansion in the overall index. This marks the tenth of eleven readings, and seventh consecutive reading of expansion in the overall index. As mentioned above, this increase was largely a function of positive movements in the transportation market contrasting with a moderate contraction in inventories and slowing rates of expansion in the warehousing market – particularly Warehousing Utilization which is down 11.4 points. Most of the growth came in the second half of the month however, particularly from Inventory Levels, which moved from contraction to expansion as June went on. The overall economy continues to be fairly nuanced, but has consistently pointed towards moderate growth, with some hope that interest rates may be revised down. The World Bank is optimistic that strong growth will continue throughout the year, revising their estimates for global GDP expansion up from 2.4% to 2.6% – largely on the strength of the U.S. economy which has led the world in the post-Covid period[1]. GDP growth for Q1 of 2024 was revised up to 1.4% in the last week of June. While this is up from the previous estimate of 1.3% growth, it is the slowest rate of expansion since the Spring of 2022. One of the primary factors in this contraction was a drawdown of inventories in Q1 – something that was reported through the LMI reports during that time[2]. The fact that inventories remained low through Q2, particularly in May and June when they contracted slightly, could foreshadow a slow rate of overall economic expansion in this most recent quarter as well. It is interesting that inventories were down when personal consumption expenditures (PCE) were up 2.6% from a year ago – the lowest rate for the PCE in three years and closing in on the Fed’s stated goal of 2%. However, when digging into the details we see that, while personal income was up 0.5%, spending was down 0.2% in May. The decline in spending was headlined by a 0.4% decrease in spending on goods[3] – something that may be reflected in contracting inventory numbers. Firms may be more willing to invest in inventories – particularly upstream – when interest rates come down. New weekly jobless claims in the U.S. were down to 238,000 in mid-June – down 5,000 from the week before. Conversely, continuing unemployment claims increased by 15,000 to 1.828 million which is the highest level since 2021. More broadly, the U.S. unemployment rate reached 4.0% in May – a level it has not seen since January of 2022. Economists believe that these are signs that the job market is softening and are hopeful they will result in the Fed cutting interest rates 1-2 times by the end of 2024[4]. The European Central Bank recently cut their interest rates to 3.75%. Observing the impact those cuts have on economic activity in the EU will be informative for the Fed in the U.S. Inventory Levels contracted very slightly at 47.4, which is slower than what we saw last month (+0.8). Interestingly, they contracted in the first half of the month (40.5) before turning
Warehouse software market valued at $7.2bn in 2023
Warehouse software market to grow at a CAGR of 12.7% out to 2030 The standalone warehouse management system (WMS) market remains the largest, but other warehouse automation-related software is growing exponentially Warehouse Execution Systems (WES) are being deployed as a strategic choice to increase operational efficiency According to the latest research by market intelligence firm Interact Analysis, the warehouse software market is facing a rapid growth trajectory. In 2023, the market was valued at $7.2 billion, and this is expected to soar to $16.6 billion by 2030. Exponential growth of warehouse automation-related software Overall, the standalone WMS remains the largest software category. The markets for other warehouse automation-related software, such as robotic picking software, multi-fleet orchestration platforms, and warehouse control systems (WCS), are expected to grow rapidly and at a higher growth rate than the total warehouse software market. The automation-related software segment will expand at a compound annual growth rate (CAGR) of approximately 19.5% between 2023 and 2030, compared with 12.7% for the warehouse software market as a whole. The boundaries between different types of warehouse software vendors have become blurred as vendors expand their software product offering. Many traditional WMS vendors have started to offer WES and WCS solutions, for example. WES deployed to enhance efficiency According to Interact Analysis’ latest study, the deployment of a WES is a strategic choice leading to increased operational warehouse efficiency. Not only does the system provide visibility into warehouse asset operations but it also has the capability to dynamically release orders and assign tasks based on the real-time operation status of assets. As a result, bottlenecks can be avoided, and efficiency is increased. The WES data can also be used to predict future warehouse automation and capacity efficiency while providing feedback to warehouse managers. However, the biggest question surrounding the WES market isn’t the benefits of the solution, but rather who will be providing it. Historically, automation vendors have been the main provider of WES solutions, given the amount of data they have on throughput rates and system constraints. However, we’re seeing strong growth in stand-alone WES solutions (independent of the WCS and the WMS) and Embedded WES solutions (where the WES is embedded into the WMS). The next few years will be highly dynamic, as different groups of companies compete to provide orchestration and execution capabilities. This report provides a wealth of information to help companies stay ahead of the curve in the race to own the execution layer. Irene Zhang, Senior Analyst at Interact Analysis comments on the warehouse software growth trajectory, “The exponential growth of the warehouse automation-related software segment we have observed is the result of a few key drivers. “First of all, the growth of warehouse automation has created the need for software that can be used to control and execute solutions. There is also a need to optimize the overall throughput due to the growth of modular and standardized automation sub-systems which require orchestration and execution of various modules. Finally, the growth of the mobile robot market has driven demand for fleet management systems. As well as this, the availability of the Robotics as a Service (RaaS) model has also contributed to the widespread adoption of mobile robots.”
AMT strengthens Engineering Services Department leadership with key appointments
AMT has announced the recent promotions of both Anna Jacobs and Mike Ingles to the roles of Engineering Services Business Development Manager. AMT’s Engineering Services team provides manufacturers and industrial clients with a deep bench of highly-trained robotics and automation engineering resources to support projects or ongoing needs Applied Manufacturing Technologies (AMT), North America’s leader in automation engineering, specializing in advanced material handling, end-of-line solutions, on-demand engineering services, and cutting-edge autonomous mobile robots (AMRs) for warehousing and logistics, has announced the joint appointment of Anna Jacobs and Mike Ingles to Engineering Services Business Development Manager. The Engineering Services team has wide-ranging skillsets and expertise in the areas of industrial controls, automation consulting, robotic cell design and programming, and field support, as well as in electrical design with EPLAN and AutoCAD. In addition, the team is widely trained in Ignition by Inductive Automation and the programming, deployment, and maintenance of autonomous mobile robots (AMRs). AMT regularly assists a variety of clients requiring industrial automation integration expertise, including manufacturers, other system integrators, and OEMs. “Anna Jacobs is an outstanding member of the AMT team who brings a wealth of experience to the table, including a unique combination of skills in sales and marketing,” said Craig Salvalaggio, President at AMT. “She consistently goes above and beyond for our clients. With Anna’s involvement, AMT’s services department is poised for growth while continuing to deliver the innovative solutions and exceptional support that our industrial automation clients have come to expect.” “I am honored to accelerate the sales and business development efforts for AMT’s Engineering Services department,” said Jacobs. “With 75 highly-trained engineers on our team, we are dedicated to working with clients through any and every step of their industrial automation journey. With such a wide range of engineering expertise within our group, we are ready to work with all types of clients, including other system integrators as needed. I am excited to collaborate with Mike and our team as a whole to deliver remarkable robotics and automation solutions wherever they are needed.” “We are doubly excited to announce the promotion of Mike Ingles, joining Anna on AMT’s Engineering Services team,” remarked Salvalaggio. “Mike brings a wealth of experience to this role. He is a 35-year veteran of the automation industry with a deep understanding of the current state of the industry, as well as the general challenges surrounding robotics and automation projects. Working with Anna, the duo will drive our commitment to ensuring our services department remains at the forefront of the industry.” In his previous roles at AMT as process engineer and program manager, Ingles has helped numerous clients achieve their production goals. His new role will expand the breadth and reach of his unique skillset and expertise to even more of AMT’s new and existing clients. “I am thrilled to take on this new role in Engineering Services working alongside Anna to support automation users,” said Ingles. “I look forward to working closely with all of our clients to help them achieve their production and business goals.”
Staffing employment edges up in June
Week-to-week: Staffing employment up one point, new starts up 10 points Staffing employment improved during the week of June 10-16, with the ASA Staffing Index increasing by 0.9% to reach a rounded value of 90 for the first time in nine weeks. Staffing jobs were down 10.0% compared with the same week last year. Staffing companies did not cite any leading factor as hindering further growth in the week in question, though macroeconomic conditions remain challenging for the industry. New starts saw an even greater improvement in the 24th week of the year, increasing by 10.0% from the prior week. However, just over a third of staffing companies (35%) reported gains in new assignments week to week–below the average of 43% per week so far this year. The ASA Staffing Index four-week moving average increased from the prior week to hold at a rounded value of 89, and temporary and contract staffing employment for the four weeks ending June 16 was 10.3% lower than the same period in 2023. “This week’s index revealed a measured improvement in staffing employment beyond just recovering from the Memorial Day dip. Stabilization remains the operative word for staffing employment in 2024 as June’s numbers provide the clearest indication of a bottom for the industry. These levels are likely to see incremental long-term improvement depending on the pace of cooling and recovery within the labor market at-large,” said Noah Yosif, chief economist at ASA. This week will be used in the June monthly employment situation report scheduled to be issued by the U.S. Bureau of Labor Statistics on July 5. 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.
Women In Trucking Association announces continued Gold Sponsorship with J.B. Hunt Transport Services, Inc.
The Women In Trucking Association (WIT) announced that J.B. Hunt Transport Services, Inc. has renewed its Gold Level sponsorship furthering the mission of the nonprofit association to bring gender diversity to the transportation and logistics industry. Since 2015, the company has supported WIT at the Gold Level. In addition to providing financial support, the company actively participates in the association. Jennifer Plumlee, vice president of transportation, serves on the WIT board of directors and is the WIT board liaison on the Women In Trucking Foundation board of directors. Jodi Edwards, a two million-mile driver for J.B. Hunt and 2024 WIT Driver of the Year, shares her expertise as a member of the WIT Image Team. “Women are essential to the transportation industry and provide diverse perspectives and insights that will shape its future,” said Plumlee. “We are proud to continue our support for Women in Trucking as they champion female voices and pave the way for future female leaders in the industry.” “As an influential industry leader, J.B. Hunt’s commitment to gender diversity is clear and their support of WIT is invaluable to the success of our mission,” said Jennifer Hedrick, WIT president and CEO. “We look forward to our continued partnership to further engage and support women in all roles within the transportation and logistics industry.”
Raymond drives success with transformative Youth Apprenticeship Program
Raymond and BOCES’ 30-year collaboration supports the workforce of the future For more than 30 years, the Youth Apprenticeship Program has been an integral part of The Raymond Corporation showing its dedication to science, technology, engineering, and mathematics (STEM) education. Working with high schools throughout the Southern Tier of New York, this program provides a hands-on, experiential approach to learning for junior and senior high school students. In coordination with the Broome-Tioga Board of Cooperative Educational Services (BOCES), apprentices spend two years at Raymond headquarters in Greene, New York. During this time, students deepen their knowledge in their chosen fields and explore various disciplines that may include engineering, finance, manufacturing, and other disciplines and departments. “For more than 30 years, Raymond’s collaboration with BOCES has helped us build a most successful Youth Apprenticeship Program, which has been integral to Raymond’s commitment to STEM education and building the workforce of the future,” said Maribeth Absi, senior director of human resources, The Raymond Corporation. “The Youth Apprenticeship Program has proved to be especially valuable in addressing industry challenges in finding and educating talent to address the widening skills gap. We have a number of our apprentices apply to our cooperative education program as a next step in their education process, some of whom may even become Raymond employees.” This 2023-24 school year, Raymond celebrates five graduates from its Youth Apprenticeship Program from Greene Central School District and Seton Catholic Central High School in New York State: Greene Central School District, Greene, New York: Caroline Jeffery Mallory Jeffery Austin deHaan Dominick Kresin Seton Catholic Central, Binghamton, New York: Andrew Erickson Matt Sheehan, director for the New York Center for Career and Technical Excellence, stated: “Raymond has been an integral part of the Youth Apprenticeship Program throughout the years. It has given countless students from our area schools amazing hands-on experiences.” In addition to returning students, Raymond will welcome new apprentices to the program in September 2024. For more information on Raymond’s Youth Apprenticeship and Cooperative Education Programs, visit https://careers.raymondcorp.com/students. For more information on Raymond, visit www.raymondcorp.com or call 800 235-7200.
Miami Beach hosts IntraLogisteX USA this fall
Coming to Florida on October 22nd and October 23rd – IntraLogisteX USA, is the logistics and supply chain management sector’s unmissable showpiece. This is the industry event for connecting innovative product suppliers with influential decision-makers in search of next-generation solutions that enhance their organization’s efficiency, agility, and scalability. Taking place at the Miami Beach Convention Center, IntraLogisteX USA is set to attract more than 150 exhibitors, 4,000-plus visitors, and more than 30 expert speakers, whose thought-leading opinions and experience will offer attendees valuable industry insight. This single, exceptional show features five function-specific zones, providing exhibitors with a golden window of opportunity to showcase their credentials and forge meaningful business relationships with an audience across all sectors, and assuring quality as well as quantity. Our Exhibition Audience Is Made for Our Exhibitors Of its 4,000-plus visitors, IntraLogisteX USA draws senior buyers from a wide range of major retailers, consumer goods companies, and third-party logistics providers. As an exhibitor, you are spoilt for choice when it comes to putting your products before the right people. Expect IntraLogisteX exhibition space to be filled with buyers from – but not limited to – automation, aviation, food and drink, healthcare, retail, electronics, telecoms, transport, and many, many more. Linking this diverse audience is a desire for solutions that move their business forward. These people have the authority to make things happen, with 24% of IntraLogisteX USAbuyers employed at CEO, Presidential, and C-Level. Additionally, 25% of exhibition buyers represent organizations with a $25 billion turnover – businesses with the means to shape the future of intralogistics and warehouse sector operations. For exhibitors, engaging with key industry brands is crucial to your company staying one step ahead in the marketplace because, rest assured, your competitors will also be attending IntraLogisteX USA. IntraLogisteX USA is meticulously managed to generate an environment conducive to innovation and collaboration within the intralogistics sector. This granular strategy also informs the show’s location. Florida is home to the third largest cluster of transportation and warehousing establishments in the US. It’s also a gateway to key logistics markets in North America, Central America, the Caribbean and South America. As a multi-experience event, IntraLogisteX USA offers an elite programme that is beyond industry compare. The awe-inspiring range and quality of products on display is matched by the expert-led presentations that will light-up the exhibition’s conference theatres. These will provide speakers with a perfect stage to impart their long-held professional knowledge and guidance on technical innovations related to logistics, sustainability and technology. Supply Chain Excellence Awards – Setting Best Practice Standards Around the World In another exciting development, for the first time this year IntraLogistex USAwill host the Supply Chain Excellence Awards USA. An absolute gift for companies looking to showcase their supply chain achievements to industry-leading organisations, the 28-year-old awards are established as setting best practice standards for the sector around the globe. Entry to the awards alone is a pathway to giving your business a significant promotional boost. Shortlisted nominees will be invited to attend a ceremony at the Emanuel Luxury Venue, Miami Beach a day prior to IntraLogisteX opening, which in itself represents a major success. At this wonderfully elegant venue, finalists will have a valuable opportunity to forge many new beneficial connections and elevate their company’s visibility to a select audience. Click here and take advantage of this win-win opportunity at the Supply Chain Excellence Awards. Elsewhere, interactions designed for buyer-exhibitor transactions are core to our five function-specific zones: Warehousing This is the ideal zone for suppliers offering solutions designed to invigorate warehouse operations for more productive, profitable purpose. Sectors include fulfilment, picking and sortation, warehouse automation, storage and racking, barcoding and labelling. Robotics and Automation Here is where exhibitors will showcase their cutting-edge contributions to robotics and automation innovation. If your product is the latest word in automated assembly support, automated fulfilment and robotic technology, this is the zone for you. Software & Information Technology Exhibitors take note: buyers will come to this zone looking for the latest supply chain software, data management, RFID technology, data collection, order management, transport management systems, and more. Make their day and take a stand. Delivery Exhibitors in the business of third-party logistics, distribution, transportation, last-mile delivery, and reverse logistics solutions will find this an invaluable zone for engaging with buyers looking to take their product to market more efficiently and sustainably. Packaging Machinery that refines the packaging process and enhances efficiency without compromising safety or quality, is crucial to a profitable warehouse operation. Exhibitors here can expect to meet buyers searching for solutions that achieve such an outcome. IntraLogisteX – An Established European Brand Due to its repute for facilitating beneficial connections between top-tier supply chain and logistics solution providers and a highly engaged audience of industry professionals in supply chain management and manufacturing, IntraLogisteX is already established in Europe as the sector’s number one exhibition. Next year will be the 10th anniversary of IntraLogisteX in the UK; it is the largest gathering of logistics professionals in the country, attracting more than 350 exhibitors and 11,000-plus visitors to the UK’s largest venue, NEC Birmingham. IntraLogisteX is where the audience meets the exhibitors’ expectations. So, change up your company’s performance levels by bringing your game-changing solutions to IntraLogisteX USA.
Empowering material handling productivity with forklift battery chargers
Forklift battery chargers are essential for ensuring the top performance and longevity of lithium batteries. Understanding how to use and maintain these chargers can help you maximize battery efficiency and reduce operational downtime. Charge with Forklift Battery Chargers When the battery level drops below a certain threshold, an alert will prompt charging. It’s then time to drive to the charging area, switch off the forklift, and open the charging cabin and protective cover. Before charging, inspect the charger cables, charging sockets, charger casing, and other equipment to ensure they are in proper working condition. Check for signs of water and dust ingress, burning, damage, or cracks. If none are present, proceed with charging. To begin with, detach the charging gun. Connect the charger to the power supply and the battery to the charger. Next, press the start button. Once the system is free of faults, the charger will commence charging, accompanied by the illumination of the display and indicator light. The display screen will provide real-time charging information such as current charging voltage, charging current, and charging capacity, while the indicator light strip will display the charging status. In contrast to lead-acid batteries, lithium-ion batteries charge rapidly, often reaching full capacity from 0% in just a few hours. Once fully charged, remove the charging gun, secure the protective cover, close the hatch door, and disconnect the charger from the power supply. Lithium-ion batteries also support opportunity charging, which means they can be charged during short breaks without affecting their cycle life. This allows for flexible and efficient charging throughout the workday. In the event of an emergency during charging, it is crucial to immediately press the stop/pause button to prevent potentially dangerous situations such as electrical arcing. Typically, it is advisable to use batteries with their corresponding chargers to safeguard your warranty and ensure streamlined and effective technical support. However, if you opt to use other brands of chargers, consider factors such as compatibility with the battery’s specifications, charging speed, efficiency rating, available technologies and functions, connector details, physical space for charging devices, and overall cost, lifespan, and warranty of different brands. With all these factors in mind, you’re making such a decision that will ensure smooth forklift operation, promote battery longevity, minimize the frequency of battery replacement, and contribute to operation cost savings over time. Proper Handling and Care for Forklift Battery Chargers While most forklift battery chargers are built to be durable and reliable with robust construction and design, unexpected faults can still occur. When this occurs, it’s recommended to check with the manufacturers and consult with a professional or staff with specialized training for proper guidance to prevent more significant problems that could lead to costly maintenance or replacements, and possibly safety hazards to forklift operators. To ensure the longevity and efficiency of your forklift battery charger, it’s crucial to follow correct charging practices, inspect regularly, and do not expose the chargers to extreme environmental conditions such as excessive heat and cold could affect their performance and lifespan. Moreover, charging, inspections, maintenance, and repairs should be carried out by a well-trained and experienced professional. Improper handling due to lack of training or instructions could lead to charger damage and potential hazards. By performing proper practices, your forklift battery charger can reliably serve your business for many years to come. Summary To conclude, a forklift battery charger is an integral part of modern warehousing. Knowing more about the chargers, you can enhance the material handling efficiency of your forklift fleet operations, thereby maximizing the return on your battery charger investment. About the Author: Recognized for industry thought leadership and customer value creation, Jodie Miller brings 15 years of experience in material handling and lithium energy storage system solutions to her position as Managing Partner of ROYPOW.
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: It’s vital for today’s businesses 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, it’s important for supply chain leaders 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.
Dealers: It’s time to up your Aftermarket strategy, not overlook it
During my recent travels and meetings with industry colleagues, dealers, and OEMs, many discussions took place exploring the dynamics and progress of the first half of this calendar year. A significant takeaway from these discussions is while the intense competition for talented workforce and skilled labor continues to be a trend in our industry, there is also a notable influx of new talent stepping into crucial roles within these organizations. This influx of new talent is a perfect opportunity to delve into the topic of the lift truck dealership selling aftermarket products and services. The importance of efficient aftermarket services in our industry cannot be overstated. Your approach to after-sales operations should be viewed as a crucial strategy to enhance profitability and customer retention in your dealership. While the primary focus is often on equipment sales, dealerships must recognize that after-marketing can significantly boost the bottom line and strengthen customer relationships long after the initial transaction. After-marketing in the dealership is frequently overlooked, largely due to a common hesitation among salespeople to engage customers beyond the primary sale. This reluctance stems from a misconception that customers may perceive additional sales efforts as pushy or unwarranted. However, this approach leaves a significant amount of potential revenue on the table. After-marketing, when done correctly, is not about pressuring customers, but about enhancing their experience and providing them with value that complements their initial purchase. For this month’s edition, let us delve into the current trends, challenges, technological advancements, and sustainable practices that are shaping the future of aftermarket services in our industry. Trends and Challenges The aftermarket sector is seeing a dynamic shift, primarily driven by the growing need for rapid response services and advanced maintenance solutions. Lift truck dealerships are particularly feeling the pressure to meet increased expectations from their customers for quicker turnaround times and higher reliability. The rise of e-commerce has also escalated the demand for material handling equipment to be at peak operational efficiency, thereby increasing the reliance on effective aftermarket services that a dealership can provide. Implementing an effective after-marketing strategy is not without challenges. Training sales and service teams to adopt a customer-centric approach that emphasizes long-term relationship building over immediate sales is crucial. Supplier product availability issues continue to disrupt operations, impacting service timelines and costs. Additionally, there is a burgeoning gap in skilled labor, with many dealerships struggling to find and retain qualified technicians. Moreover, you must continuously evaluate and adapt your offerings to meet changing market conditions and customer expectations. Expanding Service and Parts Offerings Successful dealerships understand the importance of offering a comprehensive range of services and parts not only for forklifts but also for related equipment. By providing parts, service, and service agreements for non-forklift machinery such as Sweeper Scrubbers, Personnel Burden Carriers, and Mobile Elevating Work Platforms, dealerships can become a one-stop shop for their customers’ diverse equipment maintenance needs. This broader service offering allows dealerships to capitalize on their existing relationships, encouraging customers to consolidate their purchasing needs under one trusted provider. Keep in mind, that even if your dealership does not repair or service these types of equipment, your parts and sales teams can still offer and sell these types of replacement parts. Does your sales team know all of the products they have at their disposal from their supplier partners? Here’s how to effectively assess and address replacement parts needs for some of these non-forklift ancillary warehouse equipment types: Sweeper Scrubbers Key Parts: Brushes, filters, squeegees, and motors are crucial for the optimal performance of sweepers/scrubbers. These parts endure constant wear and require periodic replacements to maintain cleaning efficiency and prolong the lifespan of the machinery. Sales Approach: Create tailored maintenance packages that include periodic replacement of these parts. Offer volume discounts or bundled deals on consumables that need frequent replacement, encouraging customers to purchase for stocking on-hand inventory to ensure they always have critical parts on hand. Personnel Burden Carriers Key Parts: Pay attention to batteries, tires, and braking systems, which are essential for the reliable operation of these vehicles. Batteries, in particular, can degrade over time and require regular checks and replacements to maintain optimal performance. Sales Approach: Recommend regular battery tests and maintenance services. Propose tire and brake replacements as part of a comprehensive service check to enhance safety and vehicle responsiveness. Mobile Elevating Work Platforms (MEWPs) Key Parts: Focus on critical components such as hydraulic hoses, control panels, tires, and safety gear like guardrails and harness points. These parts are essential for the safe operation of MEWPs and often require regular inspection and replacement due to wear and tear or compliance with safety regulations. Sales Approach: Focus on emphasizing the benefits of compliance, such as enhanced safety, reduced liability, and improved operational efficiency, by providing tailored assessments, expert guidance, and ongoing support to help clients meet ANSI standards for their MEWPs. By being observant, asking the right questions, and understanding the operations of your customer’s facility, you can uncover numerous opportunities for additional parts and service sales. Be proactive and knowledgeable about the parts and service needs of the various equipment in your customer’s operation to ensure that they experience minimal operational disruption and maintain high levels of productivity and safety. This strategic approach not only enhances customer satisfaction but also positions your dealership as a reliable and essential partner in their operations. Technological Integration in After-Marketing Today, technology plays a pivotal role in optimizing after-marketing strategies. Many dealerships are now utilizing CRM (Customer Relationship Management) systems to track customer interactions across your dealership and tailor marketing efforts accordingly. These systems help dealerships understand customer needs better, predict when they might require additional services, and promptly respond with personalized offers. CRM accompanied by the digital transformation of technologies like Artificial Intelligence (AI), the Internet of Things (IoT) based telematics, and predictive analytics is revolutionizing aftermarket services. For instance, IoT telemetry solutions can enable real-time monitoring of equipment health, allowing dealerships to predict failures before they occur and schedule preemptive maintenance. Similarly, AI
Ready–Get Set–Do Something
Technology Rules. Every business or industry publication you pick up states….IF YOU DO NOT START TAKING ACTION NOW YOU WILL QUICKLY FALL BEHIND. Makes sense. But once you are in GET SET mode you have serious issues to deal with. What should you do? Who should do it? Can you fund it? Will the results improve profitability and cash flow? If you take steps to improve the business and it does not work, you may be in worse shape had you done nothing. Nothing is easy these days. Interestingly, those three books I referred to you last month deal with the doing and measuring side of the project. As a reminder the books were BUSINESS WEALTH WITHOUT RISK, HOW TO LISTEN WHEN MARKETS SPEAK AND NOT HOW BUT WHO. The Wealth Without Risk book covers ways to find and buy businesses and how to increase the size of your business with minimum risk. Buy small businesses because the multiples are MUCH smaller. Buy two or three small businesses and suddenly you have a large business that provides much higher multiples. Not interested in buying a business then enter joint ventures or partnerships where different businesses can bring added value to the table for minimum cost. In other words, what else could your customers buy from you? You can sell it directly or via a referral program. I always liked the “menu” approach to help customers where I share in the profits resulting from my referral program. And the menu is a great way to lock in your relationship. One more comment about the Wealth-Risk book. If you have someone living in your basement that needs to go out and make a living, I would provide them with the book and tell them to find something to buy that can be paid for out of the seller’s cash flow. A lot of targets exist. How many times have you heard that Joe or Mary is giving up the business because their “kids” do not want to work there? So, do you think Joe or Mary just want to walk away and sell off the hardware, or would they prefer a sale for one year’s profits and not have to deal with the liquidation? If you want to find something to focus on, I suggest you sign up for all the Distributor Strategies Group presentations, which seem to pop up every other week. I participate in about everyone and find they can help distributors increase sales, margins, and profits. For example, they reviewed a customer survey program where they must see how customers relate to their products and services. They asked for input regarding direct contact, inventory levels and fill rates, logistics, relations with sales personnel, and how company technology impacts the customer experience. The survey covered all “touch points” with the customer, from the purchase dept to the CEO. What was interesting and probably an issue all of you should consider is that the lowest grade from every customer touch point was directed to the company website. After all the work companies put into their website this result was unexpected, which means you may want to evaluate your website to see where you stand. Be a shame if you lose business because of your website. I suggest you sign up for DSG and force yourself to listen in to their presentations. So let us assume you come up with a plan to update or create new revenue sources, or you decide to take your initial shot at AI. Now all you must do is get it done. We are assuming and you should know that this project you have in mind will produce a meaningful result when it is completed. But you are a busy person that is asking yourself “How am I going to get this project done?” This is where the NOT HOW, BUT WHO book comes into play. The premise of the book is that folks will procrastinate because they do not know what to do, and if they finally get around to it, the work will extend beyond the original due date. So, the author suggests you find a WHO to complete the project without constant interference from the person asking “HOW”. Have a team scout out an expert who is qualified to complete the project and let them go at it. Of course, you will have to pay that person, but if the project has provided the original goal, it should provide a reasonable ROI to justify the cost. I guess the bottom line here is that there is just too much discussion going on about how a company could lose customers because they cannot service their accounts like the dealer who upgraded their technology or value-added services to the point where they are a better option for the customer. This would be a good time to discuss ideas and challenges with your OEMs to find the WHO’s who can do the work or who can put together a program to improve dealer bottom lines using some of the cost-effective ideas found in the WEALTH WITHOUT RISK book. READY- GET SET- FIND SOME WHO’’s. 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.