Port of Long Beach sees reduced cargo in January
Softened consumer spending, increased prices driven by inflation and a shift in trade routes contributed to a dip in shipments moving through the Port of Long Beach in January. Dockworkers and terminal operators moved 573,772 twenty-foot equivalent units (TEUs) last month, down 28.4% from January 2022, which was the Port’s busiest January on record. Imports decreased 32.3% to 263,394 TEUs and exports declined 14.2% to 105,623 TEUs. Empty containers moving through the Port were down 29% to 204,755 TEUs. “We are taking aggressive steps to meet a new set of challenges for the new year,” said Port of Long Beach Executive Director Mario Cordero. “I remain optimistic that we will recapture market share and develop projects that will enhance our long-term growth, sustainable operations, and the reliable movement of goods through the Port of Long Beach.” “We’re confident we will grow cargo volume by working with our industry stakeholders,” said Long Beach Harbor Commission President Sharon L. Weissman. “We are focused on investing in infrastructure projects that will improve air quality and make us more competitive.” Economists say inflation is slowing for purchased goods and may offset rising prices for services, largely depending on how the Federal Reserve adjusts interest rates this year. For complete cargo numbers, visit polb.com/statistics.
KION North America announces expansion with dealer partner Carson Material Handling
KION North America has announced its territory expansion with dealer partner Carson Material Handling. This expansion includes a new location in Campobello, S.C., and involves the acquisition of J&J Forklift Services. Carson Material Handling is authorized to sell the Linde Material Handling and Baoli brands. “We are grateful for our long and rewarding relationship with Carson Material Handling,” said Rick Schiel, Director, Distribution Management. “This expansion signifies Carson Material Handling’s continued commitment to growth and being a trusted resource for their client’s needs.” For almost 20 years, Carson Material Handling has been a fleet management solutions provider throughout North Carolina and North-Western South Carolina. Their one-stop-shop process for client challenges includes creating a holistic approach by providing equipment expertise, fleet automation, and service support throughout the customer’s life-cycle journey. “As a Linde-only dealership, we made a commitment to continue to grow and expand our footprint, market share, and capabilities within North and South Carolina,” said Duane Wilson, CEO of Carson Material Handling. “Our J&J Forklift Services acquisition provides an opportunity to bring our entire package of tested fleet management solutions to the upstate South Carolina market. With the full product line available from KION North America and the increased amount of localization, we are excited to offer our new customer base a wide range of equipment made in South Carolina to be used in South Carolina,” Wilson continued. For a complete directory of KION North America’s current dealer network, visit www.kion-na.com
TVH is exhibiting at the upcoming ARA Show
TVH Americas, a global provider of quality replacement parts and accessories for the material handling, industrial, and light construction equipment industries, is attending seven different trade shows throughout 2023. So far, TVH has already been to three of the seven shows, and up next is The ARA Show on February 10 – 15, 2023. TVH has been a proud participant in this show, one of the largest equipment and event rental shows in the world, throughout the last decade. The sales team looks forward to attending this annual event to network and learn more about how the company can enhance its impact in the rental industry. Visit the sales team at booth #4814 in the exhibit hall at the Orlando Convention Center during the show. Each year, industry members can count on seeing TVH at The ARA Show just like customers can count on the company for many parts and accessory needs. TVH strives to work towards bringing in new products all while continuing to stock the products customers already rely on purchasing from the One-Stop-Shop. The sales and service team always looks for the opportunity to find the right part at the right price for the person inquiring. For those who are not attending The ARA Show in February, visit a TVH booth at another show this upcoming spring: ConExpo, March 14 – 18, 2023, Booth #S61315 ProMat, March 20 – 23, 2023, Booth #S4113 MHEDA Convention, April 29 – May 3, 2023, Booth #38
TVH receives prestigious Industry Award
TVH Parts Co., a provider of quality replacement parts and accessories for the material handling, industrial, and light construction equipment industries, has earned the prestigious MVS (Most Valuable Supplier) Award for achievements in 2022. The MVS Award is granted by the industry’s trade association, MHEDA (Material Handling Equipment Distributors Association) to less than 10% of all member companies. This is the 8th consecutive year that TVH has earned the MVS Award. This industry award recognizes companies that have demonstrated an exemplary commitment to their dealer network, their employees, and their community. To qualify for the MVS Award, TVH was required to meet a series of criteria in a number of areas important to the distributor companies who do business with them. In addition to confirming an ongoing commitment to safety and employee training, award recipients must provide documentation of active participation in a program that “gives back.” MVS Award winners have demonstrated an overall commitment to business excellence by documenting programs in the following areas: Industry Advocacy Distributor Advocacy Business Networking Continuing Education Business Best Practices “The MVS Award recognizes the best-of-the-best in our industry and is displayed with honor. To check all the boxes from education, industry best practices, awards, networking, employee engagement, giving back, and much more, MHEDA is proud to have so many companies achieve this award. MHEDA appreciates the dedication to MHEDA and being a leader in this great industry that we are so blessed to be in.” John L. Gelsimino President of All Lift Service Co. Inc. and 2023 MHEDA Chairman.
United Rentals acquires ABLE Equipment Rental
According to the ABLE Equipment Rental website and social media, United Rentals has acquired ABLE Equipment Rental located in Deer Park, N.Y., for an undisclosed amount. Family-owned and operated ABLE Equipment Rental was founded in 1996 by Steve Laganas. As of June 2022, the company had grown to include six locations, 270 employees, and a service territory spanning six states. They recently acquired Extreme Rentals in July 2022. Further details on the acquisition have not been released from either company.
Lift Atlanta joins LiuGong North America dealer lineup
Lift Atlanta is the latest dealer to join the expanding LiuGong North America dealership network in the South. Leaders of the North Georgia-based business said they were looking for a new manufacturer at the end of 2022 and were intrigued by what they heard from current LiuGong dealers and their customers. “LiuGong reached out to us to see if we would be interested in the line,” said Lift Atlanta President Mark Milovich. “After talking with several LiuGong North America dealers and some end users, we liked what we heard and decided to enter into a dealer agreement with LiuGong.” Lift Atlanta is headquartered in Decatur, Georgia with an additional location in Augusta. The company was founded as a forklift dealer in 1975 by Mitchell Milovich, Lift Atlanta CEO. He brings a wealth of experience to the LiuGong North America dealer network with a background in the material handling industry since the mid-1960s. The business covers Georgia and parts of South Carolina, primarily serving recycling, concrete, lumber, and brick and block industries, as well as national retailers and shipping companies. Jared Ward, Vice President Material Handling Division, LiuGong North America, welcomed the company to the network. “As we continue to look for dealers to serve customers and key regions, it was apparent from its history that Lift Atlanta fit our needs in the material handling space,” Ward said. LiuGong North America President Andrew Ryan said Lift Atlanta is a highly respected dealer in the South, and they are looking forward to working together to expand their business in the area. “The people at Lift Atlanta know what it takes to be a reliable resource for their customers, and we know that service will extend to our products,” he said. “Their reputation with their customers will be key to expanding our dealer network and increasing sales in the region.” Milovich said Lift Atlanta seeks out trustworthy manufacturers that stand behind their products with excellent service, and the partnership with LiuGong North America is an extension of that strategy. “We try to align ourselves with quality manufacturers – ones that we, as well as our customers, can trust for quality goods and services,” he said.
Derek S. Foley joins Vector Security® Networks as Vice President of Sales
Seasoned security sales leader to create and execute sales strategy for a single-source provider of physical security and managed network services Vector Security® Networks, a division of Vector Security®, Inc., and the single-source provider of physical security solutions and managed network services to multi-site businesses across North America, has hired Derek S. Foley as Vice President of Sales. In this role, Foley is responsible for creating and executing the sales strategy to maintain and grow existing customer relationships and revenue, and to acquire new customers consistent with company objectives. He was most recently senior director of complex security sales at a global building technology and software, and service solutions provider. Foley brings more than 25 years of experience in sales, with a focus on security sales. “We welcome Derek to the Vector Security Networks’ team,” said Dave Fisher, Division President for Vector Security Networks. “He is a highly-competitive management professional with a proven record of success at driving high levels of profitability through effective staff, operations, and sales management. We look forward to his contributions as we continue to grow the business.” A graduate of Kent State University, Foley resides in Madison, Ohio.
San Pedro Bay Ports release final Drayage Truck feasibility assessment
The study evaluates the state of technology, incorporates stakeholder feedback Long Beach and Los Angeles ports have released a final report on the current state and overall feasibility of using clean, heavy-duty drayage truck technology throughout the San Pedro Bay port complex. The Final 2021 Feasibility Assessment for Drayage Trucks can be downloaded from the Clean Air Action Plan (CAAP) website, cleanairactionplan.org/strategies/trucks. The ports released a draft assessment in August 2022 for public review and comment. The 2021 assessment builds upon the inaugural 2018 assessment. It examines the current state of technology, operational characteristics, economic considerations, infrastructure availability, and commercial readiness related to zero-emissions (ZE) and low-emissions drayage trucks. The final report addresses feedback from a diverse group of stakeholders. The 2017 CAAP Update established goals of ZE drayage trucks by 2035 and ZE terminal equipment by 2030. As part of this strategy, the ports committed to developing feasibility assessments every three years to inform a joint approach to meeting those goals. The ports are working to accelerate the adoption and transition to ZE technologies and develop the necessary infrastructure. Currently, the ports are demonstrating 91 pieces of terminal equipment, including ZE yard tractors, top handlers, forklifts, rubber-tired gantry cranes, and Class 8 on-road trucks — including hybrid, battery-electric, and hydrogen fuel cell technologies — with additional terminal equipment and on-road trucks to be commissioned by the end of the year. The 2017 CAAP contains a comprehensive strategy to accelerate progress toward a ZE future while protecting and strengthening the ports’ competitive position in the global economy. Since 2005, port-related air pollution emissions in San Pedro Bay have dropped 86% for diesel particulate matter, 46% for nitrogen oxides, and 95% for sulfur oxides. Targets for reducing greenhouse gases from port-related sources were introduced as part of the 2017 CAAP Update. The document calls for the ports to reduce greenhouse gases to 40% below 1990 levels by 2030 and 80% below 1990 levels by 2050. The CAAP was initially approved in 2006. The San Pedro Bay ports complex is the nation’s busiest and the ninth-busiest in the world. Trade that flows through the San Pedro Bay ports generates more than 3 million jobs nationwide.
JLT Mobile Computers unlocks greater operational efficiencies for warehouse forklift fleets with innovative software dashboard
JLT Mobile Computers, a developer of reliable computing solutions for demanding environments, has launched JLT Insights, a new data-driven software dashboard for industries with warehouses. The customizable software solution enables warehouse and IT managers to monitor their vehicle-mount terminals (VMT) and gain greater operational insights. Based on various data points collected from within the IT device and its sensors, JLT Insights empowers customers to optimize the daily operations of their harsh work environments as well as their host vehicles. These new capabilities are made possible thanks to information delivered by sensors embedded in the JLT6012 Series VMTs. As well as informing users of the health of their IT assets, accelerometers, and other sensors within the VMTs can deliver information relating to forklift movement, speed, acceleration, impact, location, and time. Access to this digital data opens huge possibilities for warehouse and IT managers to streamline and enhance their picking and logistic operations. By identifying bottlenecks, network connectivity issues, high-traffic areas, driving dynamics, accident-prone zones, and various IT health signals, uptime can be optimized, flow can be improved, and general operations enhanced with regard to both efficiency and safety. Impacts are a fact of life in forklift operations. But when you combine impacts with location data, you can ascertain higher safety risk areas and/or physical bottlenecks within logistic operations. Combine impacts with time and JLT Insights users can identify shift patterns, while time and location will highlight overly long local dwell times or indicate heavy traffic areas. According to Andreas Nivard, General Manager at JLT Software Solutions: “The JLT6012 Series VMTs from JLT Mobile Computers incorporate sensor technology similar to what you would find in a cellphone. By leveraging the data generated by these sensors, we are now delivering even more value-add features through software solutions. “The real power behind JLT’s new hard- and software-combined approach,” he continues, “comes from using JLT Insights to combine and contextualize the data captured via the sensors. This data can then be compared before displaying the results in an easy-to-use and -understand digital dashboard, full of useful information for warehouse and IT managers.” The software is configurable to the customer’s application. JLT engineers will help users to define which data is most useful to capture and formulate the queries which indicate the most relevant actionable information. The identified data points can be configured by JLT, local partners, or customers themselves to add the biggest operational value for continued improvement. There are multiple possibilities for operational improvement, but the primary driver behind the dashboard’s development is to increase uptime, by highlighting and predicting issues before they occur. This gives companies the ability to develop and deliver remedies before these issues turn into far more costly downtime. “The ability to spot problems before they result in downtime is a huge plus for us,” explains Fredrik Edvardsen, IT Manager at IV Produkt, a company based in Växjö, Sweden that develops and manufactures innovative solutions for air handling. “We now have proactive insights into many more operational features, including power supplies, disk space, forklift run times, and service intervals.” JLT Insights is available today for new and existing users of JLT6012 Windows 10 VMTs on a per-month and device-cost basis. “The dashboard comes in two tiers,” Andreas explains. “The first gives all the essential information from the IT and dynamics sensors, including event-based notifications, while the next tier up adds statistics and allows users to write queries that can compare and action one dataset versus another.” For new JLT6012 VMT buyers, the software will be preinstalled on the units. Existing owners can contact JLT via the website for downloading the software. In addition to the JLT6012 unit, JLT Insights can be used with other Windows 10 VMTs from JLT, albeit with limited functionality because previous generations do not include built-in sensors. Support for the Android-based JLT6012A™ VMT is in development and will be released in the first half of next year. Many more features are on the roadmap, and JLT is accepting suggestions from its user base. “We’ve worked closely with JLT in testing out the software and suggesting features as part of their pilot program,” says Martin Carlsson, Warehouse Manager at IV Produkt. “We feel like JLT has really listened to our needs and we now eagerly anticipate using JLT Insights over the next 6 months to make data-driven decisions to increase productivity in our warehouse.” Visit JLT Mobile Computers at ProMat 2023, Booth S3275, March 20-23, 2023, Chicago, USA
PAC Machinery is bringing top automatic bagging machines and the new options in sustainable packaging to ProMat
PAC Machinery (PAC) is bringing top automatic bagging machines and the NEW options in sustainable packaging it makes for these baggers to the biggest manufacturing and supply chain event of 2023 – ProMat. The bi-annual show takes place this year in Chicago at McCormick Place, March 20-23, 2023. Leaders in packaging, PAC Machinery, at exhibit N8321, will showcase the Rollbag® R785, R1285, R3200 Fulfillment Automatic Bagger, and the Rollbag R3200XL along with sustainable bag options including NEW curbside recyclable paper mailer, options from the Recylene®line of recycled poly Rollbags and other environmentally-friendly options. ProMat attendees will learn what makes these packaging machines so ideal for fulfillment packaging including high performance and value, the right size packaging for the product, and the ability to print and apply labels right on your bag among many other exciting features! “ProMat will be another great show for PAC to showcase our wide range of Rollbag automatic baggers for poly mailing designed to save businesses time, money, and make packaging a smoother, more automated process,” said Greg Berguig, PAC Machinery, Vice President. “Our systems come in a range of configurations, from tabletop to large floor-standing units with loads of customized options that can tailor a machine to a business’s needs. It will also be a treat for attendees to see several of our environmentally-friendly bags running on our machines as that’s really where packaging is heading as companies become more responsible in using packaging materials that are better for the environment,” Berguig said. Here is a preview of our upcoming exhibit at N8321. For more information visit our event page on our website https://www.pacmachinery.com/event/promat-2023. For more information on these machines contact us at [email protected] or call 1 (800) 985.9570. For show info promatshow.com. Bagging Machines Rollbag R3200 Fulfillment This bagger is ideal for e-commerce, order fulfillment, and distribution facilities that require the highest level of performance in their order fulfillment packaging operation. The standard Rollbag R3200 works with bags up to 16″ wide x 24″ long and prints shipping information directly on the first bag out. Rollbag R3200XL Fulfillment This system makes a bag to length, prints and applies a shipping label on it, allows it to be loaded automatically or manually, and seals and separates the bag. Works with bags up to 22″ wide x 36″ long and features a seal bar opening of up to 11″. Rollbag R785 Automatic Bagger This system is a unique, all-electric tabletop automatic poly bagger. The R785 is engineered to accommodate bags on a roll up to 12” wide and 20” long. 785 is engineered to accommodate bags on a roll up to 12” wide and 20” long. Rollbag R1285 The Rollbag R1285 automatic bagger is the fastest tabletop poly mailer packaging system on the market for mail order fulfillment packaging. Bagging Materials NEW Paper Mailer Set for a 2023 release, show attendees will be among the first to see this curbside recyclable paper mailer in action, running on our Rollbag automatic baggers. The Recylene® line of poly mailers are made from unique formulas with up to 100% recycled content and include a mix of ocean-bound, consumer, and industrial recycled plastic, ideal for the environmentally-conscious company. This unique sustainable mailer bag is very strong and complies with USPS, UPS, and FedEx poly mailer shipping requirements. Recyclene poly mailers will run well on virtually any automatic poly mailer bagger, but when used on PAC’s versatile, high-speed Rollbag machines, the combination makes for a formidable solution for fast, environmentally-conscious, E-commerce order fulfillment packaging. info
Mitsubishi Logisnext Americas Group celebrates UniCarriers® Forklift’s Premier Club winners for 2022
Marengo-based Mitsubishi Logisnext Americas, the exclusive manufacturer, and provider of UniCarriers Forklifts across North, Central, and South America, announced the winners of its Premier Club Awards for 2022. The annual Premier Club program recognizes the top ten UniCarriers Forklift dealers throughout the Americas. Award honorees set the standard to which all dealers representing UniCarriers’ brand products aspire, creating a culture of reliability and professionalism within their organizations and reflecting UniCarriers Forklift’s core values. To attain status as an award winner, each organization accepted UniCarriers’ challenge, surpassing difficult goals, and ranking among the OEM’s leading dealerships. All UniCarriers dealers were evaluated based on new equipment sales, market penetration, aftermarket parts sales, service expertise, overall performance, and professionalism. “For an award based on such rigorous metrics, it’s exciting to see so many exceptional dealers display perseverance, dedication, and excellence in representing our company,” said Niels Tolboom, Director of North America Dealer Sales at Mitsubishi Logisnext Americas (Marengo). “Congratulations to this year’s winners! Your Never Quit attitude inspires all of us.” The following 10 dealers excelled in these critical areas and earned the prestigious status as a UniCarriers Premier Club winner for 2022: · Darr Equipment Company – Houston, TX · Dyna-Lift – Montgomery, AL · Equipment Depot Wisconsin – Hartland, WI · Lift Solutions – Omaha, NE · M&L Industries, LLC – Houma, LA · Material Handling Supply – Pennsauken, NJ · Vegusa Maquinaria – Mexico City, MX · Parkway Systems – San Antonio, TX · Select Equipment Sales – Buena Park, CA · Sunbelt Material Handling – Dallas, TX
Episode 357: Ouster brings lidar to warehousing
Joining this episode of The New Warehouse is Angus Pacala, Co-founder and CEO of Ouster, a company that provides lidar technology for automation and sensing. Angus discusses the warehouse use cases for lidar and how it aids in navigation, delivery of goods, and mapping warehouses. He also discusses the age-old question of the camera versus lidar sensing and which one you can trust with your life. Key Takeaways LIDAR stands for light detection and ranging, which emits light pulses to measure distances between objects. AGVs can use this data to detect obstacles safely as they move through warehouses or manufacturing environments. Angus adds, there is over 2 billion worth of industrial lidar sensors sold each year. A significant portion of those sensors is for automated vehicles operating in warehouses, manufacturing centers, and other mixed-use environments. Angus shares a new type of more affordable and performant lidar sensor developed by Ouster called digital lidar. Digital Lidar replaces the analog technology used for years by integrating complex analog systems onto one silicon chip, resulting in improved performance, size, form factor, power draw reliability, and affordability. With Digital Lidar, customers of Ouster can have better resolution with no blind spots allowing them to sense humans further out more reliably and build great maps of warehouses. Digital Lidar also enables mixed-use warehouses where machines can operate closer to humans due to their better sensing capabilities while maintaining safety standards. Regarding autonomous equipment in warehousing, Angus noted two approaches – human assistance driver technology (similar to cars) or complete automation when scoped correctly – both are becoming more flexible, faster to deploy, and affordable for diverse use cases. The New Warehouse Podcast EP 357: Ouster Brings Lidar to Warehousing
Plus One Robotics appoints Elle Carroll as Sales Director
Plus One Robotics, a provider of advanced robot vision perception software and solutions for parcel handling systems performing over one million picks per day, announces the appointment of Elle Carroll as sales director, responsible for developing new business and expanding relationships within the 3PL and General Merchandise industries. “Elle has a great track record of success in driving robotic automation across a variety of distribution centers,” said Robert Nilsson, chief revenue officer at Plus One. “We are really excited to have her join us in accelerating the adoption of the Plus One platform at enterprise scale.” Carroll comes to the company with significant supply chain and robotic solution experience in both sales and engineering. Prior to joining Plus One, she was employed at Berkshire Grey (Bedford, Mass.) as a principal sales solution architect responsible for designing and contracting its robotic solutions at major retailers. She was an automation strategy consultant with Accenture’s Industry X.0 group prior to that with responsibility for supply chain transformation. Carroll has a Bachelor of Science and Master of Engineering degrees in mechanical engineering, both from Cornell University (Ithaca, NY).
AAR reports rail traffic for the week ending February 4, 2023
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending February 4, 2023. For this week, total U.S. weekly rail traffic was 449,586 carloads and intermodal units, down 1.9 percent compared with the same week last year. Total carloads for the week ending February 4 were 216,700 carloads, down 0.9 percent compared with the same week in 2022, while U.S. weekly intermodal volume was 232,886 containers and trailers, down 2.9 percent compared to 2022. Six of the 10 carload commodity groups posted an increase compared with the same week in 2022. They included motor vehicles and parts, up 2,725 carloads, to 13,155; petroleum and petroleum products, up 1,578 carloads, to 10,727; and nonmetallic minerals, up 1,445 carloads, to 25,578. Commodity groups that posted decreases compared with the same week in 2022 included coal, down 6,723 carloads, to 58,224; grain, down 1,236 carloads, to 22,244; and chemicals, down 1,182 carloads, to 32,743. For the first five weeks of 2023, U.S. railroads reported a cumulative volume of 1,140,396 carloads, up 1.6 percent from the same point last year; and 1,152,814 intermodal units, down 7.1 percent from last year. Total combined U.S. traffic for the first five weeks of 2023 was 2,293,210 carloads and intermodal units, a decrease of 3.0 percent compared to last year. North American rail volume for the week ending February 4, 2023, on 12 reporting U.S., Canadian, and Mexican railroads totaled 314,555 carloads, up 1.5 percent compared with the same week last year, and 305,639 intermodal units, down 4.0 percent compared with last year. Total combined weekly rail traffic in North America was 620,194 carloads and intermodal units, down 1.3 percent. North American rail volume for the first five weeks of 2023 was 3,171,238 carloads and intermodal units, down 0.9 percent compared with 2022. Canadian railroads reported 77,460 carloads for the week, up 11.4 percent, and 57,745 intermodal units, down 8.7 percent compared with the same week in 2022. For the first five weeks of 2023, Canadian railroads reported a cumulative rail traffic volume of 693,084 carloads, containers, and trailers, up 6.2 percent. Mexican railroads reported 20,395 carloads for the week, down 5.6 percent compared with the same week last year, and 15,008 intermodal units, down 1.2 percent. Cumulative volume on Mexican railroads for the first five weeks of 2023 was 184,944 carloads and intermodal containers and trailers, down 0.1 percent from the same point last year. To view the weekly rail charts, click here.
Zion Solutions Group named 2023 Most Valuable Partner
Zion Solutions Group has been named a 2023 Most Valuable Partner (MVP) by the Material Handling Equipment Distributors Association (MHEDA) for their 2022 accomplishments. MHEDA, known as the premier material handling trade association, bestows its MVP Award upon the best-of-the-best in the material handling industry – companies who embody industry best practices and dedication to education, employee engagement, and philanthropy. “We at Zion Solutions Group are honored to receive the 2023 MVP Award and are extremely grateful to our team, partners, and customers for our 2022 accomplishments! We’re ready for 2023 and excited to continue being a part of this thriving industry to drive creative and innovative solutions for our partners and customers,” said Zion Solutions Group President, Jim Shaw. Zion is dedicated to building win-win opportunities for their customers and suppliers and is equally committed to giving back to their community and their team members. In 2022, Zion donated to multiple local organizations and causes and guest lectured at schools and universities, highlighting Zion’s leadership in the industry and their value of education, philanthropic service, and building others up.
January 2023 Logistics Manager’s Index Report®
Growth is INCREASING AT AN INCREASING RATE for Inventory Levels, Inventory Costs, Warehousing Utilization, Warehousing Prices, Transportation Capacity, and Transportation Utilization Warehousing Capacity and Transportation Prices are CONTRACTING. The Logistics Managers’ Index reads in at 57.6 in January, up (3.0) from December’s reading of 54.6. This marks the second consecutive increase in the overall index. Back-to-back rates of growth are notable as they come after a run of seven of eight months of declining growth. The one exception to the decreases we have seen since last Spring was September of 2022. That reprieve was driven primarily by the transfer of overstocked inventories from Upstream wholesalers and distributors to Downstream retailers preparing for Q4 demand. January’s growth rate is different in that 1) There have been two increases in a row, suggesting a trend; 2) Unlike September, supply chains are not so flush with inventory that they are merely shifting goods around. Inventories are much lower now than they were in Q3 of last year, and it seems the supply chains are coming back to life with the goal of replenishment. Once again warehousing metrics are the primary driver of logistic activity. Warehousing Capacity is declining for the 3oth consecutive month, driving up both utilization and price. This is partially due to an increase in Inventory Levels and Inventory Costs – which may be evidence that firms are finally beginning to restock after nine months of doing everything in their power to reduce inventories. The transportation metrics remain down from where they were from late 2020 to early 2022, but we do see some encouraging signs. Chief among those is Transportation Utilization, which is back up to expanding at a rate of 57.0 after its one-month foray into contraction territory. Transportation Prices have continued to decline, but at a slower rate than over the last few months. There is still excess Transportation Capacity in the market, but respondent future predictions and anecdotal evidence from carriers suggest that increased demand may begin soaking up some of this excess soon. Researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report today. Results Overview The LMI score is a combination of eight unique components that make up the logistics industry, including inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50.0 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 January 2023. The big U.S. economic news in January was the 517,000 jobs that were added. This came as a surprise to some given the high-profile rounds of layoffs occurring at places like Microsoft and FedEx. The losses in tech were more than made up for by gains in other areas – including the transportation and warehousing sectors which added 23,000 workers in January[1]. There is of course some concern as to how this could impact the actions of the Fed. The Federal Reserve increased the interest rate by a quarter point on the first day of February. This reduced rate hike is due to the slowdown observed in inflation rates over the last few months. The Fed anticipates making a similar increase next month. The Fed hinted that by slowing down the pace of rate increases they will give the economy time to catch up to the corrections they have already attempted to install, thereby avoiding the dreaded overcorrection. Much of the decrease in inflation is due to falling prices in products like food, energy, and housing all of which be particularly impactful to consumers[2]. This would be a welcome sign as consumer retail spending decreased in three of the last four months. This is exacerbated in industries dependent on financings such as housing and autos[3]. Seasonally adjusted spending was down 0.2% in December. This is due partially to a decrease in prices due to slowing rates of inflation as well as the trends towards spreading holiday spending out over the entire Fall as opposed to being all centralized in late December. Despite this slowdown, the overall U.S. economy grew at a rate of 2.9% in the fourth quarter of 2022 and unemployment continues to hover around 3.5% which is near the 50-year low[4]. While global inflation may continue to be a muted issue in 2023, experts are predicting that the abnormal inflation growth will have faded by 2024[5]. As noted in last month’s report, firms were finally able to run down inventories over the holiday season. We see evidence in January’s numbers that they are now working to replenish them, with Inventory Levels up (+5.2) to 62.5. Last year inventories were peaking in February and March due to port congestion, we would anticipate that this will not be the case this year, as the lack of backlog at the ports combined with shorter order times might lead back to something resembling “normal” seasonality. Traditional seasonality has been upended since COVID lockdowns began three years ago. If 2023 is the return to normal that many in the industry are anticipating, we would expect to see inventories continue to climb slowly, peaking sometime in Q3. It will be fascinating to observe their change over time. Whatever the case with inventory replenishment may be, we do observe the cost of holding goods continues to climb. In January Inventory Costs were up (+1.4) to 74.2, marking 28 consecutive months of costs growing at accelerated rates in the ’70s, 80s, or ’90s. One of the factors that have been limiting the ability to fully rebuild inventories was the stop-start nature of Chinese manufacturing due to their prior zero-COVID policy. However, China’s economy surged back to life in January as the pullback of COVID restrictions led to an increase in manufacturing
A simple way to understand strategy
Strategy is a hard concept to digest, especially for stayed institutions that have seen past success but have reached a growth plateau. New competitors are coming in, the organization has started to move slower, and sales are anything but impressive. They’re surviving, but not flourishing. Often, the first step is to refresh the “organizational strategy”. This comes in the form of a series of meetings, where high-level, lofty aspirations are put to paper, and then delivered to the rest of the organization. Then – well, not much other than a series of new initiatives, which barely move the needle. The problem is, we misunderstand what strategy is. Today, we’re going to give you an easy example to use. You own a bar and grill. You have patronage, but want to grow. You want more customers coming through the door. So you might start with marketing – hiring an ad agency or a freelancer to come up with a promotional campaign. For the short term, it brings in a few folks, but nothing revolutionary. So you change it up – you turn to your existing customers, asking them what they need and what they’d like to see. Their input provides a few new food item ideas, which you add to the menu. You sell a few, but it isn’t a big draw. They suggest adding a variety of features, such as pool tables, a dance floor, karaoke, and bands on weekends. You can’t afford all those things, so you just pick the ones which are within your budget. Again, nothing really changes. Now you have a hodgepodge of things in a business that’s everything and nothing at the same time. Here’s the issue: There’s no strategy. Strategy is defining (in this scenario) whom you want to cater to, and how you’ll stand out from the other bar and grills in the area. So where do you begin? First, define whom you want to cater to. The high-end, elite crowd? The business customer? Blue-collar folks? What audience you pick depends on a few things – where you’re located (surrounding population/business opportunity), and what you’re good at (if you have a full, experienced kitchen or just a small prep area), for example. Now, how are you going to compete and stand out in a way that distinct and unique? This is the second half of strategy – defining who you are. Whom you cater to and “who you are” need to align. It’s obvious that folks coming off a second-shift assembly line won’t care about canapes. But here’s the key – you have to not just define who you are, but determine how you’ll stand out in a way that resonates with your target audience. What makes you different from the other 12 competitors in a 2-mile radius? How will you position the business that makes it distinct? (This doesn’t mean the basics, like having TVs in a Sports Bar. That’s the requirement to be a Sports Bar.) It means doing something unique – something that stands out and is memorable, relevant, and congruent. In this scenario, it might be a catchy theme or vibe you create that makes you different. Or it could be having the most diverse beer selection in town. What matters is that it stands out in a way that connects with your target audience. With these two initial elements, the rest will begin to fall into place – the food menu, the drink menu, the atmosphere, prices, and entertainment – all should follow your audience and differentiation focus. After that, you can continue to refine all the things you offer as you get customer feedback. And that’s the difference – established companies want to first focus on new products and/or services to change their growth trajectory. Yet, they often don’t really know whom they’re targeting (instead, pursuing anyone and everyone) and they don’t really know how to stand out and differentiate (instead, doing the same things their competitors are doing). So before diving into what new things to add, begin with defining your target audience and your unique approach to differentiation. That framework will help determine what you actually need, and more importantly, what you don’t. About the Author Andrea Belk Olson is a keynote speaker, author, differentiation strategist, behavioral scientist, and customer-centricity expert. As the CEO of Pragmadik, she helps organizations of all sizes, from small businesses to Fortune 500, and has served as an outside consultant for EY and McKinsey. Andrea is the author of three books, including her most recent, What To Ask: How To Learn What Customers Need but Don’t Tell You, released in June 2022. She is a 4-time ADDY® award winner and host of the popular Customer Mission podcast. Her thoughts have been continually featured in news sources such as Chief Executive Magazine, Entrepreneur Magazine, Harvard Business Review, Rotman Magazine, World Economic Forum, and more. Andrea is a sought-after speaker at conferences and corporate events throughout the world. She is a visiting lecturer and startup coach at the University of Iowa, a TEDx presenter, and TEDx speaker coach. She is also an instructor at the University of Iowa Venture School. More information is also available on www.pragmadik.com and www.andreabelkolson.com.
Episode 356: ProGlove
Ilhan Kolko, Chief Product Officer and President of North America at ProGlove, joins the latest episode of The New Warehouse. ProGlove is a human-centered industrial technology company that connects IoT with humans through wearable solutions. Kevin and Ilhan discuss their recent round of funding, product development, and why Ilhan believes ProGlove has developed the best wearable scanner ever. Key Takeaways ProGlove’s flagship product, Mark 3, is a multi-range variable barcode scanner the size of a matchbox that allows for hands-free scanning and eliminates distractions from putting devices down to pick up products. Ilhan shares how they continue to improve their products while ensuring integration into the ecosystem is entirely zero-touch. ProGlove’s wearable scanners, akin to ‘Fitbits,’ are designed to collect valuable data and apply it to different areas of the working process. This information allows Proglove’s team of data engineers and scientists to do deep dives into the collected data to find patterns that can improve efficiency on the shop floor. Customer reaction has been positive overall due to Proglove’s end-to-end approach toward collecting homogeneous datasets that are trustworthy enough for complex pattern analysis. When discussing trends in wearable technology, Ilhan shares that according to a recent survey by ProGlove, worker safety, and well-being are becoming higher priorities for wearable tech development moving forward. To further develop its products for the future, ProGlove will continue partnerships with robotics companies and other SaaS solutions providers who focus on collaborative technologies. The New Warehouse Podcast EP 356: ProGlove
NORD DRIVESYSTEMS exhibits High-Efficiency Drive Solutions at ProMat 2023
NORD DRIVESYSTEMS will be attending this year’s ProMat Exhibition to showcase its reliable supply chain solutions. Their modular product design delivers versatility with over 20,000,000 unique configurations of gearboxes, electric motors, and variable frequency drives – eliminating the need for costly custom components. NORD will display these specialized solutions at ProMat Booth N8325: NORDAC® ON/ON+ Variable Frequency Drives NORDAC ON/ON+ VFDs offer a compact, flexible design developed to meet the specific requirements of horizontal conveyor technology. NORDAC ON VFDs are designed for use with IE3 asynchronous motors while NORDAC ON+ VFDs have been optimized for performance with IE5+ synchronous motors. These VFDs feature an integrated Ethernet interface, full Plug-&-Play capabilities, and functional safety options such as STO and SS1. With precise positioning and full PLC functionality for dynamic control of conveyor systems, NORDAC ON/ON+ VFDs provide a reliable, cost-effective solution for IIoT environments. IE5+ Synchronous Motors IE5+ synchronous motors achieve ultimate efficiency in a compact, versatile design that can be installed quickly and easily. They are available in two versions – a non-ventilated variant (N-design) for hygienic wash-down areas and a ventilated variant (F-design) with high overload capacity suited for intralogistics. IE5+ motors provide a standardized, high-efficiency solution thanks to their constant torque over a wide speed range. This enables them to eliminate the need for system variants, minimize operating costs, and increase energy savings. DuoDrive Integrated Gear Unit and Motor NORD’s new DuoDrive with an integrated IE5+ motor and single-stage helical gear unit brings a new level of energy efficiency and easy system maintenance. The compact, modular design features full Plug-&-Play capabilities for fast commissioning, quick installation, and minimal space requirements. Constant motor torque over a wide speed range enables system variants to be reduced – minimizing administrative expenses and optimizing service processes. The DuoDrive is especially suitable for supply chain applications due to its high-power density, extremely high system efficiency of up to 92%, and quiet operation. LogiDrive™ Complete Drive Solution The LogiDrive™ solution is a service-friendly, modular system designed for standardization and reduction of system variants. The package combines a gear unit with high overload capacity, a high-efficiency electric motor, and a compact variable frequency drive for a complete solution that is flexible, low-maintenance, and 4.0-ready! Efficient operation at partial load and low speeds makes LogiDrive especially suited for a variety of conveyors in high-volume warehousing, parcel distribution systems, and packaging systems. As a complete package, LogiDrive consists of: -Two-stage helical bevel gear unit or DuoDrive -IE3/IE4/IE5+ electric motor -Decentralized variable frequency drive -Power plug connector -M12 connectors -Incremental encoder -Pre-assembled cables Two-Stage Helical Bevel Gear Units NORD’s two-stage helical bevel gear units deliver efficient operation in a compact, robust design ideal for conveyor systems. They feature a large speed range, quiet operation, and high axial and radial load capacities. Flexible installation options are available including various input and output options, solid and hollow shafts, and foot, flange, or shaft mounting – making the drives highly adaptable to a wide range of applications and environments. NORDBLOC®.1 Helical Inline Gear Units NORDBLOC®.1 helical inline gear units are characterized by quiet, reliable performance in a smooth, easy-to-clean design. Their UNICASE™ housing is made from high-strength, low-weight aluminum alloy and ensures a long service life with increased stability and safe operation. They offer 13 case sizes to choose from as well as the performance of 0.16 – 60 hp, keyless shaft designs with Shrink Disc and GRIPMAXX™, and foot or flange mounting. High output torques paired with efficient operation reduce system costs for a lower Total Cost of Ownership (TCO) and a fast Return on Investment (ROI). Condition Monitoring for Predictive Maintenance With Condition Monitoring for Predictive Maintenance, drive and status data are recorded at regular intervals or continuously to optimize the operational safety and efficiency of systems. The results derived from data analysis enable machines to be proactively maintained and avoid unplanned downtimes. This status-based maintenance approach prolongs the service life of components and machines, increases system availability, and reduces service and material costs. Condition Monitoring can even determine the optimal time to change oil, ensuing systems are always operating at their highest capacity. To learn more about these products from NORD DRIVESYSTEMS, visit www.digital-trade-fair.nord.com/en-us/promat.
Mitsubishi Logisnext Americas recognizes 2023 Dealers of Excellence
Mitsubishi Logisnext Americas announced the winners of its 2023 Dealers of Excellence program. The annual award program honors dealers representing the Mitsubishi forklift trucks, Cat® lift trucks, and Jungheinrich® warehouse and automation products across North America. Dealers receiving this honor are recognized for demonstrating best-in-class industry expertise and providing superior customer service to the material handling industry. The 2023 winners were selected from among more than 75 Cat lift truck, Mitsubishi forklift truck, and Jungheinrich dealers within the Mitsubishi Logisnext Americas dealer network in North America. “We’re proud to celebrate and recognize our 2023 Dealers of Excellence recipients,” said Eric Gabriel, Vice President of North America Dealer Sales at Mitsubishi Logisnext Americas. “This award recognizes an exceptional group of dealers that strive to continuously provide first-class customer service and support. We congratulate them for their commitment and appreciate their dedication to the material handling industry.” 2023 Dealers of Excellence Honorees: Atlantic Lift Truck, Inc. Bailey Darr Equipment Company Equipment Depot – Kentucky Equipment Depot – Ohio Equipment Depot of Illinois Fallsway Equipment Co. Fraza G&W Equipment Holt of California MADISA Miami Industrial Trucks Morrison Industrial Equipment Quinn Lift Toromont Material Handling Quebec Towlift TRACSA Wiese USA, Inc. (Central) Wiese USA, Inc. (South)