RBW Logistics welcomes a new Vice President of Sales
RBW Logistics, a provider of contract warehousing, has announced that Mark Lindley has joined the team as Vice President of Sales. After earning his Bachelor’s Degree in Kinesiology from the University of North Carolina, Mark spent nearly two decades in wholesale distribution, where he has extensive experience in Sales, Customer Service, Operations, and Management. For the past 12 years, Mark was the Customer Service Manager for Europa Sports Products, the nation’s largest sports supplement distribution company. During his tenure with Europa, Mark led 5 divisions with over 40 direct reports across the United States. “I’m very excited to join the team at RBW. Given the current challenges with the supply chain, I’m ready to jump in and help our customers solve their logistical problems right away. RBW’s history of being a trusted partner to our customers is something I admire; I look forward to making a difference!” said Lindley. Frank Anderson, CEO of RBW Logistics, explains, “Mark joins the RBW team at a pivotal time with the many supply chain challenges the world is facing. We are excited to have Mark join our experienced team of professionals that make RBW the best in the industry.”
Yellow Corporation earns 2023 Military Friendly® Employer designation and NDTA Corporate Distinguished Service Award
The LTL trucking company receives the Military Friendly® designation for the second straight year. Yellow Corporation has been awarded the Military Friendly Employer designation and has also received the National Defense Transportation Association (NDTA) Corporate Distinguished Service Award. Both awards recognize Yellow’s continued support for America’s military heroes and its focus on the recruitment of veterans. Yellow has been named a Military Friendly Employer for the second consecutive year due to its efforts in creating sustainable and meaningful career paths, community outreach, brand enthusiasm, and enduring partnerships that meet thresholds for applicants, new hire retention, and promotion of veterans and military employees. “Companies earning the Military Friendly Employers designation elevate the standard for military programs globally; they have invested in substantive programs that promote positive outcomes for service members, military spouses, and veterans within their organizations,” said Kayla Lopez, Director of Military Partnerships at Military Friendly. “For these employers, hiring military is more than just the right thing to do; it’s a standard that makes good business sense.” “It’s an honor to once again be recognized as a Military Friendly Employer,” said Yellow CEO Darren Hawkins. “Our veterans’ programs are robust and we’re growing them every year. Our veteran colleagues make us a better company and we’re proud to have them on our team.” At the NDTA’s annual meeting in October, Yellow received the Corporate Distinguished Service Award for its support of the NDTA Foundation. The foundation works to raise funds needed to award scholarship money to high school or college students pursuing an education in logistics, transportation, or passenger travel. “Yellow has excelled at attracting military talent and will continue to set the bar high while striving to be the employer of choice for veterans and their families,” said Yellow’s Military Engagement Program Manager Jason Schenkel. Yellow launched the Veteran Enrichment & Troop Support (VETS) employee resource group in 2021 and focuses on the recruitment, development, and support of military veterans, retirees, and members of the Reserves and National Guard. VETS continues to establish initiatives that contribute to an inclusive environment within our organization.
Plastics machinery shipments: In sync with slower economy and up from 2021
The shipments of primary plastics machinery (injection molding and extrusion) in North America slowed in the third quarter according to the statistics compiled and reported by the Plastics Industry Association’s (PLASTICS) Committee on Equipment Statistics (CES). The preliminary estimate of shipment value from reporting companies totaled $353.8 million in the third quarter of 2022. While this is a decrease of 14.4% from the previous quarter, the estimate increased by 6.0% from a year earlier. Of the three primary plastics types of machinery, the value of injection molding shipments fell 17.1% in the third quarter. Shipments of single-and twin-screw extruders rose by 4.9% and 12.4%, respectively, in the third quarter. Compared to the third quarter of last year, shipments of single-screw extruders fell by 13.1% while shipments of twin-screw extruders rose by 19.3%. “It can be argued that the slowdown in plastics machinery shipment in the third quarter is in sync with the cooling of the U.S. economy. However, compared to the quarterly shipments in 2021—a stellar year for the plastics industry particularly for plastics equipment suppliers—this year’s third quarter shipments remain above the first three quarters’ shipments last year,” stated Dr. Perc Pineda, PLASTICS Chief Economic Officer. “Historically, there is a bump up in shipments in the fourth quarter. This was the case even before the COVID-19 pandemic. Given supply chain issues due to the pandemic, which has stretched delivery lead time, it would not be surprising to see shipments in the fourth quarter to be above the third quarter. There is also a huge year-end push for businesses to get their manufacturing capacity in gear for the coming year. This should support stable demand for plastics equipment next year, albeit lower than this year because of moderating economic growth” concluded Pineda. The CES also conducts a quarterly survey of plastics machinery suppliers that asks about present market conditions and expectations for the future. The outlook of the survey participants, particularly for the next 12 months, has not changed significantly. While 31.3% of the survey respondents expect market conditions to either improve or hold steady in the next quarter, 34.4% expect market conditions to be steady-to-better, which was marginally lower than the 35.0% in the second quarter’s survey results. “The outlook for the next 12 months virtually unchanged from the second suggests that plastics equipment suppliers have considered slower economic growth ahead and have not strategized accordingly for 2023,” said Pineda. Plastics machinery exports decreased by 10.2% to $198.8 million in the third quarter. Mexico and Canada remained the top export markets of plastics machinery from the U.S. in the third quarter. The combined exports to USMCA partners totaled $109.7 million, which was 65.9% of total plastics machinery exports of the U.S. Imports decreased by 12.1% to $423.6 million in the third quarter. U.S. plastics machinery trade deficit narrowed from $260.7 million in the second quarter to $224.7 million in the third quarter. Moderating global economic growth and a strong U.S. dollar are slowing plastics machinery trade. “In sum, the third quarter data is consistent with the projected growth in plastics machinery shipments for the second half of 2022. However, the U.S. manufacturing sector continues to face headwinds—elevated energy prices, rising interest rates, and inflation—which could weigh on the economy’s manufacturing output in 2023,” said Pineda.
Cargotec has completed the strategic evaluation of MacGregor
Cargotec has completed the strategic evaluation of MacGregor. Based on the evaluation, Cargotec’s Board of Directors has concluded that MacGregor will not be part of Cargotec’s portfolio in the future. Cargotec will focus on the profitable growth of its core businesses, Hiab and Kalmar, by solving customers’ sustainability challenges. During the strategic evaluation, it became clear that there is considerable interest in MacGregor. However, from a value creation perspective, the timing for divesting the business is not ideal at the moment. This is due to the current uncertainty in the financial market combined with the early phase of MacGregor’s turnaround. Hence, Cargotec has decided not to initiate an active sales process now. The Board of Directors continues to evaluate the timing of the divestment. In the meanwhile, MacGregor will focus on improving the profitability of the business and has started a restructuring program in its offshore business. Cargotec is expecting MacGregor’s sales and comparable profit to improve in 2023 compared to 2022. MacGregor sales were EUR 403 million and comparable operating profit was EUR -5 million in Q1-Q3/22. The Board’s decision doesn’t impact Cargotec’s outlook for 2022 published on 26 October in conjunction with the company’s interim report for January–September 2022. Cargotec expects its comparable operating profit for 2022 to improve by EUR 88–118 million from 2021 (from EUR 232 million to EUR 320–350 million).
Good, better, best. Which one are you?
Personal achievement. Success. Fulfillment. Big words that every entrepreneur or salesperson seeks. “Get there by setting goals,” they say. “Wrong,” I say. Now, I’m not saying don’t set goals. I am saying don’t set big goals and think that they’re the direct path to personal achievement, fulfillment, or success. They’re not. In my experience, I have found most people set their goals for the wrong things and reasons. The problem with “big goals” is that they are usually “big dreams.” And to further complicate the goal process, most goals are about “it” or “things,” (material stuff like a big house, long vacation, million dollars, luxury car the usual), not goals about “you,” (personal achievement stuff like college degree, promotion, physical fitness). Most people with big material goals end up with low achievement, low esteem, frustration, and cynicism or they just become complacent and accept their lot as mediocre. Why? And more to the point, what’s to ensure it won’t happen to you? Why are some people able to achieve their goals and others not? Big question. Is there a formula to follow? I can’t tell you what will work for sure there’s no universal law of achievement, no universal law of success. If there were, everyone would be successful. Rather, there are elements of success, and degrees of achievement of success, tempered and limited by an individual’s desire, determination, dedication, and drive. It’s a combination of your persistence (never quit) and your positive attitude (I will get it because I believe I will, and I deserve it). The other day on a radio interview, someone asked me if I had a sales success secret. “Jeffrey, how did you get to this position in sales? What drives you? Do you have a secret success formula?” The question caught me off guard. Hadn’t much thought about my formula. Didn’t think I had one. I do have a philosophy, and I live my philosophy. Should I answer with that? No. That’s not a secret. So, I answered with one simple truth that I live by be the best. “When I found out I liked sales, I made one goal be the best,” I said. “When I discovered I liked writing, I made one goal be the best. When writing led me to speaking and training, I made one goal to be the best. Last year I began to make sales tapes same goal, be the best.” When I got off the radio show, I rushed to my laptop to capture the essence of what I’d said. As I developed the thought, I realized that there was an elemental process, a formula for personal achievement, and best is just one element in the formula. And I figured I’d add the word “secret” to the formula so that it was more likely to be read. No one likes a formula, but a secret formula, now you’ve got something. So, there are six parts (elements) to the secret of personal achievement: Vision Love Best Attitude Personal Student Best. The operative element of the secret is best. But it’s not the first element, the best is element number three. If you find (do) something you love, (the second element) and consistently strive to do your best, and be your best, all the goals about cars, vacations, houses, and the ever-popular money, will appear. Material things are a by-product of personal achievement. They are automatically attached to best. So, the question is what drives you to want to become the “best” at something? Vision. The first element of the secret to personal (goal) achievement is to identify a vision and put it in front of your goals. Got a big goal? Sure you do, everyone does. The big question is, What’s before (in front of) your goal? Do you have a personal vision that will drive you to achieve all your goals? Where do you see yourself? Love. Last year I made an accidental discovery. It occurred when I examined all the elements of my career and tried to structure some of my thoughts into a ten-year plan. I was asking myself, “What do I do best? What do I love to do? Where have I been most successful? How do I want to spend the next ten years?” From those answers, I decided my success would focus around selling and customer service writing, speaking and making videos. I love selling and the selling process and serving as an extension of selling. Once I realized that my choices were also my passion, the vision became clear. About the Author: Jeffrey Gitomer is the author of twelve best-selling books including The Sales Bible, The Little Red Book of Selling, and The Little Gold Book of Yes! Attitude. His real-world ideas and content are also available as online courses at www.GitomerLearningAcademy.com. For information about training and seminars visit www.Gitomer.com or email Jeffrey at [email protected] or call him at 704 333-1112.
129 new Industrial Manufacturing Planned Industrial Project Reports – October 2022 recap
SalesLeads announced today the October 2022 results for the newly planned capital project spending report for the Industrial Manufacturing industry. The Firm tracks North American planned industrial capital project activity; including facility expansions, new plant construction, and significant equipment modernization projects. Research confirms 129 new projects in the Industrial Manufacturing sector. The following are selected highlights on new Industrial Manufacturing industry construction news. Industrial Manufacturing – By Project Type Manufacturing/Production Facilities – 117 New Projects Distribution and Industrial Warehouse – 77 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 40 New Projects Expansion – 48 New Projects Renovations/Equipment Upgrades – 42 New Projects Plant Closings – 10 New Projects Industrial Manufacturing – By Project Location (Top 10 States) Michigan – 11 California – 8 Ontario – 8 Indiana – 7 New York – 7 Ohio – 7 South Carolina – 6 Texas – 6 North Carolina – 5 Tennessee – 5 Largest Planned Project During the month of October, our research team identified 15 new Industrial Manufacturing facility construction projects with an estimated value of $100 million or more. The largest project is owned by Micron Technology, Inc., which is planning to invest $100 billion in the construction of a manufacturing facility in CLAY, NY. They are currently seeking approval for the project. Construction will occur in multiple phases and is expected to begin in 2023. Top 10 Tracked Industrial Manufacturing Projects MICHIGAN: Battery mfr. is planning to invest $1.6 billion for the renovation and equipment upgrades on a recently leased 660,000 SF manufacturing facility at 42060 Ecorse Rd. in VAN BUREN TOWNSHIP, MI. Completion is slated for 2024. SOUTH CAROLINA: Automotive mfr. is planning to invest $700 million for the construction of a 1 million SF EV battery manufacturing facility in WOODRUFF, SC. They are currently seeking approval for the project. TENNESSEE: EV battery mfr. is planning to invest $500 million for the construction of a manufacturing facility in CLARKSVILLE, TN. They are currently seeking approval for the project. ALABAMA: Automotive component mfr. is planning to invest $205 million for the construction of a 450,000 SF EV battery manufacturing facility in MONTGOMERY, AL. Construction is expected to start in late 2022. GEORGIA: Building materials mfr. is planning to invest $150 million for a 500,000 SF expansion of their manufacturing and warehouse facility in MACON, GA. They are currently seeking approval for the project. KANSAS: Tire mfr. is planning to invest $125 million for the expansion of its manufacturing facility in TOPEKA, KS. They have recently received approval for the project. TENNESSEE: Battery material and technology company is planning for the expansion of their warehouse and manufacturing facility at 1029 W 19th St. in CHATTANOOGA, TN. Completion is slated for 2024. MICHIGAN: Automotive component mfr. is planning to invest $100 million for the renovation and equipment upgrades on two recently leased manufacturing facilities totaling 314,000 SF at 12240 Oakland Blvd. in HIGHLAND PARK, MI, and in SHELBY TOWNSHIP, MI. They have recently received approval for the projects. ALABAMA: An Aerospace company is planning to invest $45 million for the expansion, renovation, and equipment upgrades on their manufacturing facility in COURTLAND, AL. Completion is slated for late 2026. TEXAS: Residential glass products mfr. is planning to invest $30 million for a 195,000 SF expansion of their manufacturing and warehouse facility in WAXAHACHIE, TX. They are currently seeking approval for the project. Completion is slated for late 2023. About the Author: Since 1959, SalesLeads, based out of Jacksonville, FL has been providing Industrial Project Reports on companies that are planning significant capital investments in their industrial facilities throughout North America. Our professional research team identifies new construction, expansion, relocation, major renovation, equipment upgrades, and plant closing project opportunities so that our clients can focus sales and marketing resources on the target accounts that have an impending need for their products, services, and indirect materials.
How is Business?
As we wind down 2022, in writing this month’s column, I felt compelled to reflect on something that stuck with me from a keynote speaker from an event I recently attended. The speaker had everyone in attendance stand up and instructed all of us to respond to his question with one word. The question he asked was, “How is Business?” Then with great exuberance, the entire audience responded with, “UNBELIEVABLE!” That certainly set the tone for his presentation and audience engagement, but also the past year or two really has been unbelievable for almost all of the dealers that I have spoken to. As we approach the New Year and your KPI goals are achieved, projects completed, and end-of-year meetings and celebrations bring excitement for the year to come, however, the wrap to this unbelievable year may also bring uncertainty for what is to come. Discussions around whether there will be a recession in the coming year or whether we’re already in a recession definitely put a damper on things. Nonetheless, I hope you all are able to celebrate all the unbelievable things that happened for you and your businesses in 2022. Some of your business plans for 2023 might include consolidation or merger and acquisition activity. Another MHEDA Trend for 2023 touches on this topic states, ‘Business valuation and succession planning will take on more importance as owners consider retirement and consolidation continues.’ This trend sets as a perfect segue of what I want to get into in this month’s column. The fine line between the manufacturer and dealer relationship, especially as our industry continues to see more and more mergers and acquisitions in forklift dealerships. The OEM and dealer relationship is a mutually beneficial relationship. The OEM relies on the dealer/distributor to populate the market with the sale of their products. The dealer also provides local customers with parts, service, and both technical and after-sale support for these products. The end-user customer’s lift truck needs are continually evolving. OEMs work alongside their dealer networks to assist the dealer as needed, some examples include but are not limited to assisting with financing, process warranty-related inquiries, addressing any safety concerns, etc. Any OEM that I speak to will tell you that their dealer/distributor network is the key to their success. Nonetheless, as we transition to 2023, I believe the lift truck industry is currently segmented into these categories: Factory Stores, Independent Distributors, Mega Dealers, and Third-Party Service Providers. Let us examine each: Factory Stores The rising trend of more OEM factory stores in the industry can be a direct result of independent distributors faced with the problem of succession planning. The owners or dealer principals do not have a succession plan in place; meanwhile, the factory cannot find a suitable buyer to buy said dealership, so the dealer ends up buying it and converting it into a factory store. As mentioned earlier, the OEM factory relies on the dealer to populate the market with the sale of their products. If the dealer does not have a succession plan in place, the OEM does not want to lose their share of that particular market the dealer is operating in, therefore the OEM purchases the dealership and converts it to a factory store. In addition, the appeal to the OEM to purchase the dealership is the parts and service revenue that a dealership generates. This revenue protects the factory and flattens out the peaks and valleys of a crazy marketplace. Parts and Service revenue help a dealership weather the storm during an economic downturn. Independent Distributors My column’s predecessor Dave Baiocchi once said as it relates to the independent distributor: “Independent dealers are a necessary component of the material handling industry.” As more and more OEM factory stores continue to enter the market, one of the main differences to note when comparing a factory store to an independent dealer is the entrepreneurial spirit. As a dealer principal once told me, it’s ‘their house on the line’ when it comes to business and that mindset is hard to replicate at a factory store. That entrepreneurial spirit is a scarce commodity these days and can provide the independent distributor more advantages than before and is more valuable to their OEM. The independent distributor is also able to be more agile. They are able to make changes and decisions quickly, which could be a competitive advantage in the marketplace. For example, being able to respond quickly to changing market conditions or competitors. Mega Dealers Recent market conditions have made it more conducive for the independent distributor to sell their dealership, especially when approached with an offer they can’t refuse and they don’t have anyone else in succession to sell to. Enter the Mega Dealer. These mostly family-owned, sometimes 2nd or 3rd generation dealerships continue to grow their geographic footprint through mergers and acquisitions. What was once a trend of these acquisitions within their local or adjacent markets, we are starting to see more and more of these Mega Dealers’ footprints span from coast-to-coast. The benefit of the Mega Dealer is economies of scale: reduction in costs from consolidation, elimination of redundancies, increased buying power, etc. Their competitive advantage in the marketplace is their ability to expand their reach to businesses across the country. In addition, many of these Mega Dealers within the industry today offer many products and services in addition to the primary lift truck OEM brand they represent. Some of these offerings include warehousing and distribution solutions, large rental fleets of aerial equipment, or representing OEMs of the adjacent category of heavy construction equipment or compact dirt construction equipment. These diversified offerings can also be that of an independent distributor; however, it is more prevalent within the offering of a Mega Dealer. The Mega Dealer model can certainly come at a cost as well in regards to our topic of the fine line between the dealer and manufacturer relationship. A Mega Dealer representing multiple OEM lines can create animosity among the manufacturers
Merry Christmas and Happy New Year
Santa will hopefully be good to you and provide you with an unexpected taxable income along with a few tax strategies to minimize the Federal and State tax bites. I suspect that if you find yourself in this situation you are at the head of your class this year. So, good for you! Is a repeat in the offing? Based on what I have been reading I would not count on it. On October 28 I heard a report that 97% of CEO are planning for a recession. I guess that would include all of you. The Duke Q3 CFO survey indicates: Growth expectations for the next 4 Quarter are lower than the 22 results Inflation cited as the most pressing concern Firms well below prior-year level, but holding steady Expect elevated price pressures with a slight reduction in 23 Expect price pressures to continue for more than 12 months. Most passing some % of increases through to customers. Hard to find and keep high-skilled employees. Expect hiring conditions to stay the same Being we are in “that” time of the year; I would suggest you schedule a meeting with your banker and tax folks to find out where you stand with your financial arrangements and tax position. I came across three articles that I am going to ask Dean to put on the website, so you determine if you need to follow up on anything as it pertains to your situation. Two are BDO Tax Strategist pieces. One discusses the use of accounting methods to defer tax. The second is on planning for NOLs in the current environment. Good stuff, both of them. The third piece titled 5 TAX ISSUES TO KEEP YOUR EYES ON (https://www.aicpa.org/resources/article/dont-fall-into-a-lull-five-tax-issues-to-keep-your-eyes-on?utm_medium=email&utm_source=SFMC_RAVE&utm_campaign=&utm_content=501416&AdditionalEmailAttribute2=&AdditionalEmailAttribute3=&AdditionalEmailAttribute4=&AdditionalEmailAttribute5= ) is an AICPA piece. If there ever was a year to make your tax bill decrease and as a result keep more cash flow, this is the year to do it. As far as your banker goes, they are only interested in two things. Collateral Value and Debt Service Coverage. Be prepared. If you have recent equipment valuation stats, be ready to provide them. If your internal statement book value is less than the appraisal value (OLV) point it out as “hidden equity.” If you also provide a report on your used equipment sales to show this spread is real …that will help as well. And if you are or should be one of the 97% expecting a recession, explain how you plan to deal with that issue. The CFO survey results (above) make good talking points. To get a better handle on all these economic issues facing you and us I am going to suggest you buy yourself a book to read over the holidays that will help you understand where we are at currently and what is going to happen as globalization is reversed in the coming years (not at long as you think). Absolutely readable, understandable, and fascinating. I CAN NOT PUT IT DOWN. The good old USA made this globalization work which made goods and service providers SMARTER, BETTER, AND FASTER which in turn lowered pricing and raised the world’s standard of living. Now that the USA may no longer be interested in this economic concept things are going to change. I will say no more. Read it yourself and give a copy to high school and college students. They will find it useful as well. What did you think about last month’s article that mentioned the OEM direct sales potential? I can see it happening and wonder why it has taken so long. Be more of a build-to-order program which would reduce inventory levels as well as absorption costs you now have to cover to offset new equipment sales costs. In fact, the whole basic dealer income silos and departments will be changing as well. As EVs become more prevalent, as lithium batteries become more of the norm, as customers ask for that SMARTER, BETTER, AND FASTER (SBF) product, eventually your aftermarket revenues as a percent of sales will decrease. On the other hand, I expect rentals to boom during this time and for the next decade. With a lack of techs. A lack of drivers. And with a general lack of finding skilled personnel, a size reduction of a dealership may be just what we need to keep things going profitably. This SBF is already taking place in the construction industry. Contractors are taking steps to do more with less. And they are succeeding. And in many cases, OEMs are helping with the process. Take a blank piece of paper and start thinking about how your dealership will look in 5 years, or 7 years. In either case, based on what was in the McKinsey report, your operation will need to change or stand to lose your position in your territory. I would take that report seriously. I would also train more people in the rent-to-rent business. If you do not provide the utilization for a daily, weekly, or monthly fee, I am sure the Bid Boys will find a way to do so. The name of the book is: The End of THE WORLD Is Just BEGINNNING…. Mapping the Collapse of Globalization By Peter Zeihan Have a great 2023. About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993. E-mail [email protected] to contact Garry.
Automatic loading from Caljan helps parcel carries and online retailers meet tight delivery windows
Caljan AutoLoader moves loose cargo into trailers at high speed — without any human involvement. Building on more than 50 years of logistic innovation, Caljan announces the latest addition to their range of Performer Telescopic Conveyor Solutions with the new AutoLoader. The AutoLoader offers fast, automatic loading 24/7, making it easier to meet small windows and short delivery times. Ensure same-day delivery with fast, automatic loading Online shoppers today prefer fast and flexible delivery options to suit their busy schedules. With up to 88% of customers worldwide willing to pay more for same-day or faster delivery, extended waiting times become a deal breaker when choosing your next digital shopping platform. For that reason, meeting highly restricted windows has become critical to online retailers, their 3PL partners, and parcel carriers, all of whom are under pressure to meet customer expectations. To ease the challenges of the growing eCommerce sector, Caljan AutoLoader increases the throughput of loose cargo by automating the loading process. Parcels and polybags are loaded non-stop into any truck or trailer, removing the bottlenecks to ensure all cargo leaves the warehouse on time. Even distribution for a fill factor of 80% The AutoLoader fills the trailer by moving from side to side, releasing the cargo with perfect precision to close vacant gaps in the vehicle. The wedge-shaped base gently pushes packages aside to utilize the entire space — resulting in a fill factor of 80%. Items mix smoothly as they fill the space, making it easy to handle all types of cargo in one load. With minimal supervision required, the AutoLoader cuts the cost of each package handled. This even includes padded envelopes and slippery polybags, which can be a real headache to a loading process. Safe handling of cargo During operation, the AutoLoader detects obstacles and moves automatically to avoid collisions. With a release height of approx. 7”, items are carefully placed to prevent package damage. Sensors adjust the position of the conveyor to suit the height of the parcel, making room for packages of all sizes. “The height detection system of the AutoLoader creates a free flow of cargo during loading. Sensors angle the conveyor to eliminate risks of parcels hitting the trailer roof,” explains Product Manager Jens Erik Langdahl. Make use of your workforce where it adds the most value Rushing to meet strict deadlines can cause people to cut corners where they otherwise wouldn’t. Automating the loading process therefore significantly reduces risks of injury to the workforce. The AutoLoader takes care of the hard physical labor, allowing operators to work where they add the most value. An audio or visual signal, indicating when the equipment is in operation, can be fitted to the AutoLoader upon request. The conveyor can also be supplied with a safety light barrier that stops all conveyor movement if you move into its immediate vicinity.
United Rentals to acquire Ahern Rentals for $2 Billion cash
United Rentals, Inc. has announced that the company has entered into a definitive agreement to acquire the assets of family-owned Ahern Rentals, Inc. for approximately $2.0 billion in cash. The board of directors of United Rentals unanimously approved the agreement. The transaction is expected to close prior to year-end 2022, subject to customary conditions. Founded in 1953, Ahern Rentals is the eighth-largest equipment rental company in North America, with approximately 2,100 employees and 106 locations in 30 states serving approximately 44,000 customers in the construction and industrial sectors. For the trailing 12 months ended September 30, 2022, Ahern Rentals generated $310 million of adjusted EBITDA on $887 million of total revenue. Strong Strategic Rationale Consistent with United Rentals’ “grow the core” strategy, customers of both companies will be better served by the combined scale, and legacy customers of Ahern Rentals will benefit from one-stop access to United Rentals’ specialty rental offerings. Ahern Rentals’ customer service footprint of branches, fleet, and experienced employees is complementary with United Rentals’ existing network. The combination will increase capacity for United Rentals in key geographies, with concentrations on both U.S. coasts and in the Gulf region. The combination will expand the fleet available to United Rentals customers by over 60,000 rental assets with an original cost of $1.85 billion, as well as approximately $145 million of the non-rental fleet. Notably, over 75% of Ahern Rentals’ rental fleet is comprised of high-demand aerial and material handling equipment. The integration of the acquired branch and sales operations represents significant opportunities to improve efficiency, productivity, and new business development with the adoption of United Rentals technology and field management processes. Ahern Rentals and United Rentals use a number of the same technology platforms, including the RentalMan ERP system. Strong Financial Rationale The purchase price of approximately $2.0 billion represents a multiple of 6.5x adjusted EBITDA for the trailing 12 months ended September 30, 2022, or 4.5x adjusted EBITDA net of cost synergies and the net present value of tax attributes estimated at $426 million. The acquisition is expected to be accretive to United Rentals’ adjusted earnings per share and free cash flow generation in its first-year post-close. The transaction is projected to result in a net leverage ratio at year-end 2022 at the low end of the company’s target range: 2.1x adjusted EBITDA as-reported, and 2.0x on a pro forma basis. Return on invested capital (ROIC) is expected to exceed the cost of capital within 24 months of closing on a run-rate basis, with an attractive IRR and NPV. Importantly, the return profile of the transaction is compelling across a range of macro scenarios. The combination is expected to generate approximately $40 million of annualized cost synergies within the first 12 to 18 months of closing, primarily in the areas of corporate overhead, operations, and cost of rentals due to efficiencies of scale. Additionally, United Rentals expects to realize procurement savings based on the combined spending of both companies. United Rentals expects to realize approximately $60 million of annual revenue synergies by year three, led by the cross-selling of its specialty rental offerings to an expanded customer base. The transaction is not conditioned on financing. United Rentals expects to use a combination of newly issued debt and existing capacity under its ABL facility to fund the transaction and related expenses. The company currently plans to pause its $1.25 billion share repurchase program through the initial phase of the integration, consistent with its approach during the integrations of similarly sized general rental transactions. CEO Comments Matthew Flannery, chief executive officer of United Rentals, said, “Our acquisition of Ahern Rentals supports our strategy to deploy capital to grow the core business and drive shareholder value. We view ourselves as the ideal owner of these assets within our network, as customers will benefit from the combination of the two organizations moving forward together. We’re leveraging our competencies in larger-scale M&A to augment both our near- and long-term earnings power.” Flannery continued, “Our integration playbook is underway so we can prepare the acquired branches to take full advantage of our systems and operational capabilities and gain from our employee and customer-centric culture. I look forward to welcoming our new team members upon the closing of the acquisition.” Don Ahern, chief executive officer of Ahern Rentals, said, “I’m proud of what we’ve built at Ahern Rentals over nearly seven decades, and I’m extremely pleased that the combination with United Rentals will take the business forward in this next chapter of growth. I want to thank our employees for driving the results that make this transaction possible. This is a strong outcome for both organizations and our customers.” Key Statistics of the Acquisition Financial data in $ millions Purchase Price $ 2,000 Present Value of Acquired Tax Assets $ 426 Total Revenues (LTM 9/30/22) $ 887 Adjusted EBITDA (LTM 9/30/22) $ 310 Estimated Annualized Cost Synergies Achieved in Year Two $ 40 Estimated Annualized Cross-Selling Benefits Achieved by End of Year Three $ 60 Original Equipment Cost of Acquired Rental Fleet $ 1,850 Non-Rental Fleet $ 145 Employees ~2,100 Rental Branches 106 Customers ~44,000
U.S. Rail Traffic for the week ending November 12, 2022
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending November 12, 2022. For this week, total U.S. weekly rail traffic was 490,350 carloads and intermodal units, down 2.5 percent compared to the same time last year. Total carloads for the week ending November 12 were 235,474 carloads, down 0.2 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 254,876 containers and trailers, down 4.5 percent compared to 2021. Four of the 10 carload commodity groups posted an increase compared with the same week in 2021. They included motor vehicles and parts, up 2,142 carloads, to 14,829; nonmetallic minerals, up 1,676 carloads, to 32,706; and farm products excl. grain, and food, up 742 carloads, to 17,242. Commodity groups that posted decreases compared with the same week in 2021 included grain, down 1,366 carloads, to 23,932; chemicals, down 1,360 carloads, to 32,168; and metallic ores and metals, down 915 carloads, to 19,346. For the first 45 weeks of 2022, U.S. railroads reported a cumulative volume of 10,450,126 carloads, up 0.2 percent from the same point last year; and 11,835,682 intermodal units, down 4.7 percent from last year. Total combined U.S. traffic for the first 45 weeks of 2022 was 22,285,808 carloads and intermodal units, a decrease of 2.5 percent compared to last year. North American rail volume for the week ending November 12, 2022, on 12 reporting U.S., Canadian and Mexican railroads totaled 334,731 carloads, down 0.7 percent compared with the same week last year, and 335,949 intermodal units, down 4.9 percent compared with last year. Total combined weekly rail traffic in North America was 670,680 carloads and intermodal units, down 2.8 percent. North American rail volume for the first 45 weeks of 2022 was 30,550,437 carloads and intermodal units, down 2 percent compared with 2021. Canadian railroads reported 78,840 carloads for the week, up 0.8 percent, and 66,417 intermodal units, down 5.4 percent compared with the same week in 2021. For the first 45 weeks of 2022, Canadian railroads reported a cumulative rail traffic volume of 6,567,421 carloads, containers, and trailers, down 1.8 percent. Mexican railroads reported 20,417 carloads for the week, down 11.1 percent compared with the same week last year, and 14,656 intermodal units, down 9.6 percent. A cumulative volume on Mexican railroads for the first 45 weeks of 2022 was 1,697,208 carloads and intermodal containers and trailers, up 3.5 percent from the same point last year. To view rail charts, click here.
Episode 333: RGo Robotics
On this week’s episode of The New Warehouse Podcast, we welcome Amir Bousani, Co-Founder and CEO of RGo Robotics. RGo Robotics provides AGVs, AMRs, and last-mile delivery robots the ability to navigate autonomously in various environments through their AI-Powered Perception Engine. Amir and Kevin discuss why it is essential for robotics to see and understand their settings to work collaboratively within the warehouse. Key Takeaways RGo Robotics saw the intersection between robotics and vision-based technologies and realized they could drive positive change. Amir adds that many companies struggle with visual perception and are relieved that a company like RGo Robotics has these capabilities, which allows robotics companies to focus on their core applications. RGo Robotics found when addressing the problem of getting a robot to see the world in a dynamic environment, they needed to address four main challenges. The robot needs to know its position, and they need to know and understand where obstacles are, they need to know how to get to its destination and how to move within a changing environment. RGo Robotics developed the Perception Engine to solve these challenges and help mobile robots operate autonomously. Amir and Kevin discuss some drawbacks of laser scanners or visual markers to guide robotics. While Amir agrees in a static environment, these technologies work well; he adds they aren’t ideal in the real world to see people or forklifts moving around or other variations in the background. He believes using a wide field of view and 3D-based perception are the only technologies that can safely allow robotics to operate and work reliably in the real world. Amir explains that most warehouses did not have robotics in mind when they were built. This challenge means robotics adapt to their environment, or warehouses create an environment (like a cage) for robotics to operate. RGo believes in enabling robots to adapt to the environment, such as operating outdoors or bringing goods from a loading dock. Listen to the episode below and leave your thoughts in the comments. The New Warehouse Podcast Episode 333: RGo Robotics
Concentric, LLC acquires Texas Motive Solutions
Concentric, LLC, the national provider of DC power management for the material handling and critical power industries, announced the acquisition of Texas Motive Solutions, a top provider of service solutions to forklift dealers across Texas. This acquisition expands Concentric’s footprint and capabilities for customers in two of the top 10 US logistics markets, Dallas and Houston. An exclusive provider of Hawker Powersource, Inc., Texas Motive Solutions has a well-established reputation for delivering efficient service in the battery sales and solutions niche alongside a strong team of expert, service-minded technicians. The company is led by Evin Sisemore, a veteran of the battery industry. She founded Texas Motive alongside her husband, attorney Justin Sisemore in 2018. “Evin Sisemore has built one of the most dynamic sales and service teams in the forklift power industry, a sector that has historically lacked female figures in key leadership positions. We are humbled to add one of the industry’s best to our team at Concentric. Evin’s focus on the customer and forklift dealer aligns directly with our own mission to bring consistency, safety, and cost savings to our partners. We will be merging all Texas operations under Evin’s leadership and look forward to continuing to support our customers’ future success,” said Concentric Chief Operating Officer, John Winter. “We are excited to support Concentric’s success in the Texas market while expanding the services and capabilities we provide to our current customer base. High-velocity facilities are historically underserved in the forklift power industry and we look forward to helping them meet the challenges they’re facing while delivering results in an increasingly complex supply chain” said Evin Sisemore.
Plastics Industry Association statement in observance of National Recycling Day
Matt Seaholm, President & CEO of the Plastics Industry Association (PLASTICS) released the statement below in observance of National Recycling Day, or America Recycles Day, the official national observance dedicated to promoting recycling across the United States. “Recycling Day reminds us that without the actual process of recycling, we would head down the wrong path in the face of environmental challenges. Recycling is real and the plastics industry is committed to solutions in sustainability that reduce plastic waste. “The plastics industry has invested billions of dollars into recycling technology in an effort to increase recycling rates with billions more announced, and we are proud to be part of the solution. While the recycling efforts of communities and businesses throughout the United States have helped with the success and growth of recycling rates, America can do better. “The great news is that we are recycling billions of pounds of plastic every year and that number is only going up – but we need to recycle more. Working with other industries in the recycling stream, we need to make it easier for consumers to get more material to our recyclers and keep that valuable plastic in the economy instead of in a landfill. “Plastic is a miracle material that saves lives, saves energy, saves food stocks, reduces emissions, and improves our quality of life. We are working hard on implementing solutions to the environmental challenges that we face: We love plastic, but we hate plastic waste.” Background: According to the U.S. Environmental Protection Agency, America Recycles Day was created twenty-five years ago as a recurrence each year to recognize the importance and impact of recycling, which has contributed to American prosperity and the protection of our environment. The recycling rate has increased from less than seven percent in 1960 to the current rate of 32 percent. The EPA has found that recycling and reuse activities in the United States annually accounted for 681,000 jobs and $37.8 billion in wages.
Women In Trucking Association names Trina Norman of UPS as 2022 Influential Woman in Trucking
The Women In Trucking Association (WIT) presented Trina Norman, Southern California Feeder Operations Manager, UPS, with the 2022 Influential Woman in Trucking award. The award is sponsored by Daimler Truck North America (DTNA) and recognizes the achievements of female role models and trailblazers in the trucking industry. The winner was announced during the WIT Accelerate! Conference & Expo in Dallas, Texas. The announcement came after the panel discussion, “When Remarkable Women Do Remarkable Things.” Panelists consisted of the finalists for the 2022 award: Jill Quinn, President, Centerline Drivers, Mari Roberts, Vice President of Transportation, Frito-Lay, and Lindsey Trent, President & Co-Founder, Next Generation in Trucking Association. The panel discussion was facilitated by Kelley Martin, Director of Strategic Pricing, Daimler Truck North America. “While all four finalists were exceptional, Trina Norman stood out due to her passion for giving back to her community while supporting her team and her company as she leads them toward success,” said Ellen Voie, WIT president and CEO. Norman’s employment with UPS spans three decades where she has proven to be a well-rounded leader and a global citizen. She is a member of Delta Sigma Theta Sorority, Incorporated, where she has served as an activity member for 24 years. She also mentors and sponsors young college students to achieve their academic goals while attending college. Her mission is to recruit, empower, mentor, and encourage women to join the elite women behind the wheels at UPS. In 2019, Norman helped to lead the charge and was instrumental in charting the first Women in Operations business resource group in South Cal. In honor of her leadership and game-changing methodology, she was granted the game-changer award in March of 2022. In April of 2022, she was the recipient of the corporate trailblazer award for both Diversity, Equity and Inclusion, and Women In Operations. In July 2022, she was the recipient of the Visionary Leader Award for excellence in undertaking extraordinary efforts to enhance the operational experience. “On behalf of Daimler Truck North America, a hearty ‘congratulations’ to Trina Norman for earning the recognition as the 2022 Influential Woman in Trucking,” said Kary Schaefer, chief engineer, cab systems and entire vehicle engineering at DTNA and WIT board member. “It was a remarkable field of nominees for this year’s award and all share the distinction of driving the trucking industry forward for all women.”
AutoStore introduces a new tool that utilizes data to make warehousing more efficient
Unify Analytics™ is a new cloud-based service and data platform from AutoStore™. It enables businesses using AutoStore, an automated storage and retrieval system, to gain access to data-led insights from their system and easily identify the cause of operational challenges. Unify Analytics is available in two versions, a web application where businesses can view real-time statistics and analytics, and an API that enables seamless integration with any external third-party applications. “Businesses can reap multiple benefits by combining automated storage and retrieval, and data-led insights. This data analysis tool will allow businesses to be more proactive and respond rapidly to real-time challenges,” says Andreas Munch, Product Manager at AutoStore. Unify Analytics consists of several performance analysis dashboards that provide graphical presentations of operational information. Examples of available data are uptime and number of stops within the system; waiting time per bin; average distance per robot; and the number of tasks a customer has prepared in the system (each hour). It also shows if the software and firmware have been updated. “Data is only effective if we measure the right metrics. We currently include a selected list of key metrics and will develop and add new features to the software gradually, in close dialogue with our users,” says Munch. In the next stages of the technology, AutoStore developers plan to include an alert functionality. End-users will get a notification via email or SMS when set conditions are triggered, allowing businesses to respond quickly to operational challenges. A single data platform The AutoStore System generates vast amounts of information on a continuous basis, making it valuable to have a technology that organizes all data onto a single platform, is highly protected, and meets security requirements. “The new analytics tool secures access to real-time and logged data and is only accessible to designated end-users and distribution partners. We automatically deploy software updates when they are available, without any system downtime,” says Munch. Unify Analytics is intuitive and easy to use and does not require any training or extensive technical skills to implement. The web platform and API are available from November 15th.
WATCH Video Town Hall Featuring the presidents of the two largest Rail Unions discuss the proposed contract
Brotherhood of Locomotive Engineers and Trainmen (BLE-T) President Dennis Pierce and SMART Transportation Division President Jeremy Ferguson held a town hall meeting last week on the tentative National Rail Agreement being voted on by members of the two unions. Ballots are out, voting on the tentative agreements concludes on Nov. 20 and results will be announced on Nov. 21. Dennis Pierce, the president of the Brotherhood of Locomotive Engineers and Trainmen, has held 20 town hall meetings over the past month in an effort to answer questions and help explain to BLE-T members what’s contained in the tentative National Rail Agreement reached in September with Class I railroads. On November 9, President Pierce was joined by Jeremy Ferguson, the president of the SMART Transportation Division at a town hall meeting held near Cleveland, Ohio. The 1-hour 45-minute presentation and question and answer session can be viewed below Among the topics discussed in the town hall are hardball tactics by the railroads and their failed attempt at eliminating conductors from trains (crew consist), attendance policies, sick leave, wages, and changes in healthcare benefits. Also discussed is what was gained through the Presidential Emergency Board recommendations and what was not; what happens if the tentative agreements are not approved; actions Congress may or may not take at the end of a cooling off period if an agreement is not ratified by BLE-T, SMART-TD or other rail unions. Ballots are now out for a contract ratification vote by BLE-T and SMART-TD members. Voting ends on November 20 and results will be announced by the two largest rail unions on the morning of November 21.
Walmart awarded inaugural Women In Trucking Technology Innovation Award
The Women In Trucking Association (WIT) awarded Walmart the inaugural Technology Innovation award, sponsored by Clean Harbors. The announcement took place at the WIT Accelerate! Conference & Expo held in Dallas, Texas. The newly created award recognizes innovation, vision, and technical achievements that support and advance the trucking industry. Nominations were open to any WIT member who has contributed innovative technical or mechanical solutions, ideas, or practices in the commercial motor vehicle industry. “We’ve seen firsthand how well Walmart’s fleet operates. That’s, in large part, due to their applications and automation. Calling Walmart a ‘world-class organization’ in this regard seems almost an understatement,” said Michelle DeStefano, Sr. Director of Employee Engagement, Clean Harbors. “There could be no better selection as the winner of the first Clean Harbors technology award, in our eyes. Congratulations to all involved!” Walmart was selected for the innovation of NTransit, a mobile software application built to provide their fleet drivers with a world-class, frictionless experience in the cabs of their trucks. NTransit starts by providing the drivers with a single platform for all the tools and information they need to move freight across Walmart’s supply chain while staying connected with the dispatch office and other important stakeholders along their journey. This helps to minimize excess time spent at locations and enables the driver to efficiently move through their workday. NTransit is also a communication platform that informs the driver of any traffic incidents or unsafe conditions, so the driver has all the information needed to go about their day on the safest and most efficient routes. NTransit also provides real-time location tracking to provide ETAs to the Walmart stores on the driver’s route, ensuring the store is ready to receive and unload their freight and get the driver back on the road quickly. Additional enhancements are in development to further digitize the driver’s experience, including the ability to make paperless deliveries and move right through the gate at warehouses without having to stop for paperwork review and seal validation. Integrated within the application is a satisfaction survey that provides Walmart drivers with a voice to rate their experience at stops along their route, as well as their overall experience with the application. With this feedback, Walmart product and technology partners can listen to and stay close to the voice of the customer, and their drivers, and push ongoing development of new features and enhancements, which continue to enrich and improve the driver experience. “The technology innovation award helps promote our mission to address obstacles our members face in the trucking industry,” said Ellen Voie, WIT president and CEO. “The NTransit app provides Walmart fleet drivers with the technology to experience a more user-friendly, simpler, and intuitive process to stay connected from start to finish for each trip. This removes much of the uncertainty drivers often experience during their daily deliveries.” Finalists for the award, Relay Payments and REVOLOK USA LLC, were also recognized during the Accelerate! Conference & Expo.
Oshkosh Corporation to acquire Hinowa
Builds on Successful 12-Year Partnership with JLG; Broadens Product Portfolio Oshkosh Corporation, an innovator of mission-critical vehicles and essential equipment, today announced it has entered into a definitive agreement to acquire Hinowa® S.p.A., a privately held international company and manufacturer of track-based aerial work platforms, mini dumpers, lift trucks, and undercarriages. Once complete, Hinowa will become part of the Oshkosh Access Equipment segment. “We look forward to welcoming the Hinowa team into the Oshkosh family,” said John Pfeifer, Oshkosh Corporation’s president and chief executive officer. “This acquisition will accelerate our electrification capabilities and provide growth opportunities across core and adjacent markets.” Hinowa is well-known for its advanced track designs and electrification expertise as an early adopter and leader in lithium-ion battery technology. Hinowa has produced JLG® compact crawler boom lifts since 2010, including electric, hybrid, and diesel-powered models. “We are excited to expand our long-term relationship with Hinowa,” said Frank Nerenhausen, executive vice president, Oshkosh Corporation and president, JLG Industries. “Combining our capabilities will enable us to better serve customers and expand our operational footprint in Europe.” Hinowa was founded in 1987 in Nogara, Italy, and today has an approximate 250,000 sq. ft. manufacturing facility and 50,000 sq. ft. parts facility with nearly 230 team members. The company has a long history of innovation, offering a diverse line of premium products for work at height and vegetation management applications. “We are pleased to join Oshkosh Corporation,” said Dante Fracca, founder and owner of Hinowa. “Our successful 12-year relationship with JLG, along with shared core values around culture, safety, productivity, and sustainability position us well for the future.” The Hinowa acquisition supports the Oshkosh accelerated growth strategy. The transaction, which is subject to customary closing conditions, is expected to close within 90 days.
WERC announces 46th Annual Conference coming to Orlando
The Warehousing Education and Research Council (WERC), a division of MHI, is pleased to announce the WERC 46th Annual Conference coming to Orlando, FL June 4-7, 2023. Themed around “Growth Through Disruption,” this in-person event will be hosted at the Hilton Orlando in Florida. The conference will feature three days of education sessions that address the current concerns of WERC members, like ongoing workforce challenges and escalating costs in three categories: People, Processes, and Systems and Data. The conference will also feature three keynotes: Jim Knight: two decades leading Global Training at Hard Rock International Libby Gill: a change management educator and leadership coach who previously led communications at Sony, Universal, and Turner Broadcasting Joe Theismann: Super Bowl winner and most productive quarterback in Washington Redskins history “We’re thrilled to be meeting together again as warehousing professionals to lift and educate the industry,” says Michael Mikitka, EVP for MHI Knowledge Center and WERC. “The WERC Conference has historically been a place for professionals to gather together to exchange information to solve top-of-mind issues that face warehousing professionals as well as an excellent venue to network and make connections in our industry.” There’s no better place to meet and reconnect with friends, colleagues, and peers. You won’t want to miss the camaraderie and shared, face-to-face interactions that make the conference so relevant, powerful, and valuable to those who attend. Companies also have the opportunity to become a sponsor for the WERC conference. Sponsors have the opportunity to host an educational session and a kiosk in the general session room. To learn more about becoming a sponsor and all sponsorship options, view the prospectus.