Episode 332: Green Cubes Technologies
On this special episode of The New Warehouse Podcast, we get an education on Lithium 101 with Robin Schneider, Director of Marketing at Green Cubes Technologies. Green Cubes is a power technology provider for customer OEM batteries, batteries for stationary equipment like data centers, and the motive business that makes batteries and chargers for material handling equipment and ground support equipment you would find at airports. If you are curious about lithium-ion batteries and what they can do for warehouses and material handling operations, you will want to tune in. Key Takeaways Green Cubes Technologies introduced its Lithium Safe Flex brand ten years ago to replace lead-acid batteries. This past year, it introduced chargers, making them the only company producing batteries and chargers in the warehouse and material handling market. The chargers are unique as they are high frequency and high efficiency while also being the smallest and lightest charger on the market. With warehouse space being as limited as it is, the ability to mount a smaller charger and not take up valuable warehouse space is advantageous. Robin shares what makes lithium-ion batteries tick as well as why they make so much sense for the material handling environment. Lithium-ion batteries have a lower total cost of ownership compared to traditional lead-acid batteries, thanks to fast charging times, little or no maintenance, and can operate three shifts a day for about ten years. As Robin points out, lead is not great for the environment and requires all sorts of infrastructure investments like eye wash and spill stations. From a sustainability standpoint, lithium-ion batteries provide a more environmentally friendly solution than lead-acid. Green Cubes uses a more environmentally friendly chemical composition called lithium-iron phosphate batteries. For companies looking to transition to lithium-ion batteries, Robin suggests starting with a power study that analyzes equipment usage and operations to understand the benefits better and cost savings. The higher the equipment usage, say three shifts, the faster companies will see a return on investment (ROI). Robin suggested that customers who are curious about the ROI for their operation can use the ROI calculator provided by Green Cubes. Robin believes there are tremendous opportunities for the lithium-ion market. One of the most exciting benefits is how intelligent the batteries are and the ability to add IoT devices for utilization and tracking of right-size material handling equipment needs. In addition, monitoring battery performance and finding out who isn’t charging their batteries when they should. The New Warehouse Podcast EP 332: Green Cubes Technologies
Cherry’s Industrial names new inside sales representative
Cherry’s Industrial Equipment has announced the addition of Yarine Velez, an Inside Sales Representative, to its growing Cherry’s Sales team! Yarine will help serve our customers with product selection and excellent customer support. In addition, Yarine has over nine years of sales experience, which will help grow Cherry’s customer base and support. Originally from Mexico, she and her husband love spending time with family, cheering on her daughters with their activities, and living a healthy lifestyle. Yarine holds an Associate Degree in Art and has built her sales experience with Chicago Sales and Marketing as an Operations& Sales Manager; recently, as an Inside Sales Representative and later promoted to Inside Sales Office Manager at Forecreu. Yarine specialized in being a pivotal contributor to Forecreu’s financial growth from a $4 million to a $9 million company in her six years with them. “These past two weeks at Cherry’s, I have been able to trust the magic of new beginnings, starting fresh, and always welcomed by great colleagues that make me feel like I belong. Every day I have been shown that this industry and company is filled with infinite possibilities; I am super excited for what this new journey will bring into my professional and personal life.” “We are excited to add Yarine to Cherry’s! She brings new energy for customer satisfaction to our team.” John Costello, CEO of Cherry’s Industrial Equipment.
Kenco Group launches Life Sciences division
Kenco Group, a provider of third-party logistics (3PL) providers, has officially launched a Life Sciences Division, positioning the company as a major supply chain logistics player for the healthcare sector. This new division further expands Kenco’s current offerings, which include distribution, transportation, material handling, and supply chain solutions. Kenco’s Life Sciences Division will continue to serve Medical devices, Eyecare, and Pharmaceutical manufacturers to increase visibility and efficiency in their supply chains for an improved patient experience. Tim McClatchy, head of life sciences, will lead the new division as it brings supply chain transformation to a sector that has traditionally been slow to change. “We want to provide the expertise for life sciences companies that are currently managing their own supply chain but have outgrown their internal resources,” said McClatchy. “The world is rapidly changing, with no sign of returning to pre-COVID practices, and that’s why Kenco is expanding to now include specific solutions for life sciences companies that also want to grow their business and meet today’s ever-evolving supply chain needs.” Life sciences customers will benefit from Kenco’s world-class data analytics solutions. “Supply chains are becoming increasingly complex, with new variables like changing customer behaviors, new business models, and new competitors popping up in the logistics landscape every day,” said Michelle Kunde, GVP of life sciences operations. “Our advanced data analytics for supply chains help Kenco and its customers make better, more informed decisions and gain a competitive advantage in their crowded markets.” Customers in the life sciences sector will also benefit from access to Kenco’s industry-leading Innovation Lab, a facility that explores the newest and best tools in logistics and that has taken many to full implementation. To further grow its expertise in the life sciences space, Kenco is investing in an internal continuing education program, called Life Science Certification. This program will regularly train employees and keep them informed about the latest trends and regulations in the sector, helping them serve life sciences customers as both a logistics provider and in a consultative role. While this is the official launch of the Life Sciences Division, Kenco has already worked successfully with multiple customers in the life sciences space, providing proven cost savings and other benefits for over two decades. Visit Kenco’s website to learn more about the Life Sciences Division launch, read case studies about successful Kenco life sciences projects and watch a video from McClatchy discussing the anticipated benefits for new and current customers.
AIT Worldwide Logistics appoints Transflo CEO, Renee Krug, to board of directors
Krug’s diverse experience includes multiple executive leadership roles with prominent global supply chain players Global supply chain solutions provider AIT Worldwide Logistics has hired Transflo Chief Executive Officer, Renee Krug, as the newest industry executive to accept a seat on the company’s board of directors. Krug has amassed more than 25 years of executive experience across the supply chain, including executive roles with high-volume shipper Honeywell, truckload carrier Knight-Swift, and 3PL GlobalTranz. She also sits on the board for trucking data and solutions provider SMC3 and served as a senior advisor for AIT’s financial partner, The Jordan Company. AIT’s Executive Chairman and CEO, Vaughn Moore, noted that Krug’s vast knowledge and strong network connections provide AIT’s board with a unique viewpoint. As the CEO of an innovative, data-driven freight software company, she also offers valuable supply chain solutions insight with respect to transformative technology. “I have great admiration for Renee’s accomplishments as an executive and her unrivaled understanding of the logistics industry,” he said. “I relied on her as a trusted confidant when AIT was evaluating new financial partners in 2020, so I’m very pleased to welcome her to the company’s board of directors where she’ll have an immediate positive impact.” “AIT has been remarkably impressive,” Krug said. “I have tremendous respect for the speed and tenacity Vaughn Moore and his team have demonstrated to grow the business exponentially over the past several years. I look forward to leveraging my 360-degree perspective of the industry as an active board member and working closely with the management team to help shape AIT’s strategy.” Krug received her bachelor’s degree from Indiana University and earned her MBA from Arizona State University. She lives in the Phoenix area, and her appointment to AIT’s board of directors is effective as of October 24, 2022, when she attended AIT’s fourth quarter board meeting.
Shipments slow in October in Long Beach
Cargo moving through the Port of Long Beach eased up in October following reduced consumer demand and a shift of imported goods toward the Gulf and East coasts. Dockworkers and terminal operators moved 658,428 twenty-foot equivalent units (TEUs) of cargo containers last month, a 16.6% decline from October 2021. Imports were down 23.7% to 293,924 TEUs and exports decreased 2% to 119,763 TEUs. Empty containers moved through the Port fell 13.4% to 244,743 TEUs. “The supply chain is returning back to normal and cargo continues to move, so I am optimistic that store shelves will be stocked and goods will be available for delivery during the holiday season,” said Port of Long Beach Executive Director Mario Cordero. “Over the long term, the San Pedro Bay ports complex will continue to be a competitive, strategic and sustainable gateway for trans-Pacific trade.” “We continue to collaborate with our industry and workforce partners to ensure the safe, sustainable and reliable delivery of goods moving through the Port,” said Long Beach Harbor Commission President Sharon L. Weissman. “The Port of Long Beach has a lengthy history of adapting to the needs of our customers during the best of times and the most difficult of times.” Despite surging inflation and interest rates, economists say consumers still have enough resources to weather economic headwinds. Experts feel softening consumer activity will lead to a better balance between supply and demand, and reduce stress on the national supply chain. The Port of Long Beach has moved 8,000,811 TEUs during the first 10 months of 2022, up 1.5% from the same period in 2021. For complete cargo numbers, visit polb.com/statistics.
Building top of the sales funnel: In-House or Outsourced
Every small and mid-sized business cares about one thing: a consistent flow of sales. Every time you close a new customer, your company drives revenue, fueling your company’s growth and expansion. After each close, management asks itself, “How do we find our next best customer?” What does a Sales Funnel need to Survive? It goes without saying that a sales funnel needs high-quality sales leads. But those who put those leads into the funnel are your sales hunters or SDRs that are skilled at industrial prospecting and cold-calling strategies. However, that’s still not enough to feed the sales funnel in today’s economic environment. You will need to add precision targeted data, training, technology, sales automation, and those that are experienced or certified to use these tools. The Cost of Building the process Now it’s time to put some numbers to the tools and people needed to fill the sales funnel. This is separate from the cost of marketing and their programs. How many hunters or SDRs do you need and what is the consistent time commitment they will perform outbound calling efforts week after week? In addition to calling, if the hunters or SDRs are to manage the deals, quoting, or sales admin-oriented tasks, you know the number of outbound calls will go in cycles. What will that do to the sales funnel? So the decision must be made: Do you hire a dedicated in-house hunter team or do you outsource the efforts to a company that specializes in the field? Building the In-House hunter team Let’s discuss the costs associated with building an in-house team of sales hunters or SDRs. Finding the Right Talent – In a low or high unemployment rate, finding the right talent is like finding a needle in a haystack. Now add the need for experience in the industrial or manufacturing environment, and you’ve narrowed your talent pool to very low numbers. If you use a staffing agency to help place new talent, you can expect to pay 10-20% of the SDRs annualized salary, typically $5-15K. That’s always a cost most forget to include. Salary, Benefits & Commissions – Let’s say you found a few to fill these positions. Add the salary, benefits, and negotiated commissions, and work from home, you have a bit of a hefty bill to pay every two weeks. Let’s not forget, they will need training and software in order to do their job. That’s always a cost most forget to include. Software Tools – It is worth mentioning software as its own line item. To effectively hunt and communicate with prospects, you need a CRM. There are many choices in the market, everything from free to $15k for the year. Let’s not forget our favorite social media tool for professionals, LinkedIn. You can use the ‘free’ version, but most want to use Sales Navigator, which includes another $1k for each person on your team. These are the main software tools, but if you use a bulk email sender or other tools, those are cost factors as well. List Development – It’s imperative that before you get your hunters or SDRs on the job, they will need clean, quality lists. These lists will need to contain the right level of contact, with title, email, and most importantly, cell phone numbers. Everyone works from home…right? Every time the hunter or SDR makes a call and the person is no longer there or the phone number doesn’t work, that just costs you money. So now you need to get a list that is high quality for your new rep. Do you know where to go? Have you used that list before? What was the quality? These questions are imperative to understanding the cost of purchasing a new list, and the cost of using an old list. Acquiring quality new data can range from less than $1k to tens of thousands of dollars. Outsource: The caution first Let’s first address the caution. Not all outsource lead generation companies are the same. Time, effort, and discussions need to happen in order to know if you have the right company. Many outsourced business development agencies specialize in specific verticals, like software, financial, or manufacturing. First, do they have the right industry experience for you? Just don’t take ‘yes’ for an answer, get a reference or two…and call. Next, understand their process. The more transparent, and the more they prove their process by ‘doing’ the more you’ll gain confidence in their ability to deliver pipeline. Again, calling a couple of references and asking their right questions will help reveal their true experience. Finally, the Terms of the Agreement. Are they asking you to sign a contract for the next year for over $15k per month? Or do they have smaller, more flexible packages that allow you to “dip your toe in the water” while mitigating risk if KPIs and deliverables are not met? Yes, these terms do exist. Outsource: The Benefits Now that some of the common pitfalls are out of the way as you know what you need to do to validate them, let’s get to some of the benefits. Streamline sales efforts and time. Now, it is always good to have a portion of the sales rep’s time on their own calling efforts, but outsourcing will allow their time to be more productive as they are working on identified and qualified deals. Internal bandwidth. While there is typically an initial onboarding process with outsourced business development agencies, over the long term you have the option to determine how involved you want to be in your program. However, you don’t have to worry about the day-to-day management, oversight, and training of SDRs. Any reputable outsourced sales agency will have developed a basic understanding of your current and future initiatives and will assist you in anticipating and implementing any changes to your program seamlessly, with minimal attention required from you. While you’ll get more inexperienced talent that may or may not stay for more than a
IDEC announces new low-profile touchless switches
LED illumination and indoor/outdoor durability make these low-profile touchless switches ideal for clean and functional industrial and public applications IDEC Corporation has introduced a new line of CW low-profile touchless switches suitable for many hygienic industrial and public automation applications, addressing cleanliness concerns for protecting against COVID-19 and other contamination. Touchless switches are durable and reduce the total cost of equipment operation. Previously untouchable savings World events have introduced a new sense of urgency among people to find ways for minimizing unnecessary touching of objects in the environment. IDEC is contributing to the well-being of these users by introducing touchless switches, which reduce or remove the need for personnel to sanitize the switch faces, saving labor and the cost of chemicals, and eliminating the need for protective films. Because there is no contact involved, users do not need to dispose of gloves or wash them after using these switches. The lack of mechanical contact and cleaning also reduces switch deterioration, providing a long operational lifetime. Touchless technology The CW touchless switches are designed with a sleek and nearly flush (just 2mm rise) low-profile surface silhouette. They are built for an industry standard 22mm mounting hole and require only a shallow 35mm space behind the panel face, plus room for the wiring connector. The typical installation pitch is 30mm in width and 50mm in height. Operating temperatures range from -25 to +55DegC. A rubber washer and locking ring ensure IP65/67 and NEMA Type 4X ratings are maintained. The CW1H housing and bezel are black plastic resin, and the CW4H is silver aluminum alloy metal. Although the switches are rated for outdoor use, are made from weather-resistant materials, and are highly resistant to visible light, excessive exposure to ultraviolet rays from direct sunlight can cause material degradation and color fading, and even false signals. Additionally, as with almost any signaling device, dirt and water droplets can impact operation. Therefore, designers should check product performance before use, and consider degrees of physical protection. The switch front face contains a central emitter and receiver sensing lens, and an LED indicator ring. Infrared LED diffuse reflection technology is used to detect objects. The detection distance is adjustable, typically ranging from 70 to 270mm depending on the color, material, and surface condition of the object to be detected. For example, dark gloves can be detected, but at a shorter distance than a bare hand. When two switches are installed close together, their emitting frequencies are automatically adjusted for mutual interference prevention, ensuring the switches do not trigger each other. Switch output is a non-contact photoMOS relay, available without a timer or with a 0.5s on-delay and a 2.0s off-delay. Reverse connection protection is included, and the switch operates at a nominal 12 to 24V DC with 100mA max load current. The two-color LED ring, which can be externally controlled to illuminate in red or green, provides status feedback for users. Clean applications are everywhere While the recent pandemic has elevated awareness about cleanliness and hygiene worldwide, there have always been major industries—such as food, beverage, pharmaceutical, medical, and chemical—where sanitary operation is of the utmost importance. Even in common consumer applications like elevators, ATMs, vending machines, and soda fountains, users prefer touchless operation methods. Equipment owners can benefit from the economical incorporation of touchless switches because they eliminate ongoing and expensive sanitation, disinfection, and sterilization of surfaces.
New Holland launches a complete brand-new range of mini excavators
Fifteen new Mini excavator models covering all weight classes from 1 to 6.5 t Two fully-electric zero-emission models The industry’s most comprehensive two-piece boom offering Zero tail-swing and short-radius models New Holland considerably extends its light construction equipment offering with the launch of a brand-new range of fifteen Mini excavator models manufactured in-house. The new range excels in terms of width, design, versatility, innovation, comfort, and performance. The new machines have compact dimensions with a superior working range and are either Zero Tail-swing or Short Radius, which makes them ideal for work in confined spaces. The new range is the first introduction resulting from the acquisition of Sampierana S.p.A., an Italian company specializing in the development and manufacturing of earthmoving machines known for their reliability, quality, and innovative technology especially in the line of Mini and Midi excavators and for special undercarriages. Nicola D’Arpino, New Holland Light equipment manager, wrote: “This new range is the result of our constant work to create new and better products, with the highest attention to details and perceived quality in every model across the range that goes beyond customer expectations. We have received incredible feedback from anyone who saw and tried the machines, the reactions have been enthusiastic, so we are very happy with the job done by the whole team.” Models to suit every application The smallest machines in the range are the E12D Zero Tail-swing and the E14D Short-Radius models. Providing best-in-class hydraulic power and excellent stability, they feature a retractable undercarriage and an overall width of just 790mm, which enables them to drive through 800mm domestic doorways. Further features include a foldable roll bar for ease of movement in spaces with limited clearance. Auxiliary hydraulic hoses are routed inside the boom for protection and to ensure unimpeded vision. The machines’ compact dimensions do not compromise operator comfort: the seating position is wide, easily accessible, and visibility is excellent thanks to the rear-mounted roll bars. The 1.5-2t class models, representing almost 40% of mini excavator sales, include three Zero Tail-swing machines (E17D, E18D, and E19D) and one Short Radius model (E20D), all less than one meter wide thanks to the variable gauge design. The E20D is also the world’s first two-piece boom model in the 2t class and offers significant advantages in working range compared to traditional mono-boom excavators. A high-flow option uses an additional gear pump to optimize the use of attachments requiring a constant high-flow supply, most importantly mulchers. It is worth mentioning the high-end models in the mini range, which retain compact dimensions while excelling in hydraulic power, breakout force, and working range. For example, the dump clearance on the top E65D two-piece boom model outperforms similar models on the market by 1.0m. The E60D and E65D feature a unique hydraulic system developed with Bosch Rexroth, the EOC (Electronic Open Circuit), which controls the flow, pressure, and power to minimize machine downtime and increase productivity, while maintaining extremely low emissions. Models in the upper end of the range, from E50D and larger, feature standard reversible fans to ensure the radiators are always clean, fluid temperatures are under control, and their properties unaltered, which in the long run, means extended life of components. A color display guides the operator through multiple setting options, including an array of parameters related to the operation of different hydraulic attachments. Tiltable cabs come as standard on every model in the range, allowing extraordinary accessibility to all machine components. New Holland’s first fully electric mini excavator The new series also features the very first fully electric model in the history of New Holland mini excavators, the E15X Electric Power, which was recently recognized with a Special Mention at the EIMA Technology Innovation Awards, thanks to its unique power demand logic. The brand-new E15X is powered by a 21.5 kW lithium-ion battery and is the electric equivalent of the diesel E14D model. Its extremely compact dimensions enable it to access the tightest spaces, making it the ideal machine to work indoors. Autonomy is also guaranteed for a full 8-hour working day, with a 1-hour fast charge. As a zero-emission vehicle with very low operating noise, it is ideal for working in areas with emissions and noise restrictions. The machine is well suited for a wide variety of applications, from agriculture and horticulture to landscaping, general digging, and demolition tasks in indoor or confined workspaces. Its environmental credentials are further enhanced by its use of eco-friendly biological hydraulic oil, which also extends service intervals, and by the use of cobalt-free lithium batteries.
Integreon Global appoints Hays as new president
Integreon Global, a family of companies that ensures product integrity and protection through innovative materials, testing services, packaging, monitoring solutions, and contract manufacturing, announced that Michael Hays has been named President, replacing Maurice Barakat, effective December 5, 2022. Mr. Barakat will assume the role of Executive Chairman and CEO. Mr. Hays’ new position is the culmination of several decades of leadership in the expandable polystyrene (EPS) industry, most recently as Vice President of Altor Solutions. His career path included management roles in business development, finance, and overall enterprise strategy and board-level involvement. As a long-term employee and eventual Division General Manager, he was integral in the growth of his original company, Premier Industries, which was later consolidated with Foam Fabricators and eventually transformed into Altor Solutions. Through each of these strategic phases, Mr. Hays’ expertise contributed to his teams winning numerous industry awards for clients in the technology, automotive, appliance, construction, and healthcare sectors. These accolades culminated with Michael receiving the EPS industry’s prestigious “Lifetime Achievement Award” in 2022. “Michael is a people-first leader who comes to Integreon Global with a strong track record of expansion, coupled with a reputation for building a world-class packaging manufacturing group. Michael’s extensive management experience will help our business units accelerate their continuing development as a trusted partner of global manufacturers,” said Maurice Barakat. “I am proud and honored to become a part of the highly successful Integreon Global family,” said Michael Hays. “This is a wonderful opportunity to both lead and to provide outstanding service to our clients. Integreon has a strong, growing, and diversified suite of business units whose purpose is to protect people and products. The company’s unique blend of skilled experts, advanced materials, and innovative technologies across the entire enterprise position us perfectly to rise to the challenges of a global marketplace.” The Integreon group designs and manufactures polymeric foam beads, thermal packaging, and monitoring solutions, and provides testing, contract development, and manufacturing services. Integreon operates in four end markets: Pharmaceuticals, life sciences, perishable foods, and foam processors. Each of Integreon’s companies offers custom-engineered solutions and testing services critical to the end-to-end protection and efficient manufacturing of customers’ products.
Alta Equipment Group Inc. reports Third Quarter 2022 financial results and raises 2022 Guidance for adjusted EBITDA
Third Quarter Financial Highlights: (comparisons are year over year) Total revenues increased 37.3% year over year to $405.0 million Construction and Material Handling revenue of $249.7 million and $155.3 million, respectively Product Support revenue increased $29.4 million year over year to $116.1 million Conditions in the Company’s end-user markets remain strong driving continued growth Net income of $4.4 million available to common shareholders compared to a loss of $(0.6) million in 2021 Basic and diluted net income per share of $0.14 compared to a loss of $(0.02) in 2021 Adjusted basic and diluted net income per share* of $0.18 compared to $0.01 in 2021 Adjusted EBITDA* grew 39.2% to $44.0 million, compared to $31.6 million in 2021 Alta Equipment Group Inc., a provider of premium material handling and construction equipment and related services, has announced financial results for the third quarter that ended September 30, 2022. CEO Comment: Ryan Greenawalt, Chief Executive Officer of Alta, said “We are extremely pleased with our third quarter performance as our financial and operational results continue to reflect our unique position in the market and successful growth initiatives. Total revenues increased37.3%, or $110.0million, to $405.0million. As of the end of the third quarter, we have generated $1.1 billion in total revenue, roughly equal to our total revenue for the full year of 2021. Our trajectory for Adjusted EBITDA also continues to grow, up 39.2% versus the year-ago quarter, and has nearly surpassed 2021 levels on a year-to-date basis. We also continued to achieve GAAP net income this quarter versus a loss a year ago. Our M&A strategy is proving very successful and is significantly contributing to our accelerated growth. Overall, the third quarter continued to reflect the consistency in our business and the stability in our end-user markets.” Regarding business conditions, Mr. Greenawalt noted, “While certain segments of the economy are slowing, our flexible business model, broad-based market exposure, and the breadth of our product portfolio helps protect our business from swings in macro trends as proven by our consistently strong growth thus far this year. Customer sentiment is an indicator we constantly monitor, and it remains positive for the balance of this year and into 2023. On a longer-term basis, we also remain encouraged as several federal initiatives are likely to positively impact the extension of the cycle including the $550 billion infrastructure bill, and the Chips and Inflation Reduction Acts, which support an intensified effort on manufacturing and renewable projects in the United States.” In conclusion, Mr. Greenawalt commented, “As demonstrated by our financial results and recent transactions, our growth strategy remains very much intact, and the pipeline remains robust. On a trailing twelve-month basis, our acquisitions since the IPO have added $440.0 million in revenue and a significant amount of EBITDA to the enterprise. Our acquisition of Yale Industrial Trucks, Inc., a privately held Yale lift truck dealer with five locations in southeastern Canada, is progressing very well and we have added several new OEMs to expand our product portfolio to further support our customers’ needs. We recently closed our acquisition of Ecoverse Industries, which provides us with the master dealer rights to distribute best-in-class environmental equipment and parts to dealers and customers throughout North America. This immediately positions Alta as an industry leader in the rapidly growing market of eco-friendly waste solutions and material recycling, which we believe represents a significant opportunity for our business.” Full Year 2022 Financial Guidance: The Company is increasing its guidance range and currently expects to report Adjusted EBITDA between $155 million and $158 million, net of new equipment floorplan interest, for the full year 2022. This is an increase from between $147 million and $152 million, as previously expected. Three Months Ended September 30, Increase (Decrease) Nine Months Ended September 30, Increase (Decrease) 2022 2021 2022 versus 2021 2022 2021 2022 versus 2021 Revenues: New and used equipment sales $ 210.1 $ 136.8 $ 73.3 53.6 % $ 579.0 $ 392.6 $ 186.4 47.5 % Parts sales 61.8 44.8 17.0 37.9 % 173.5 130.3 43.2 33.2 % Service revenue 54.3 41.9 12.4 29.6 % 154.2 123.0 31.2 25.4 % Rental revenue 50.2 41.7 8.5 20.4 % 131.5 113.0 18.5 16.4 % Rental equipment sales 28.6 29.8 (1.2 ) (4.0 )% 105.0 97.6 7.4 7.6 % Total revenues $ 405.0 $ 295.0 $ 110.0 37.3 % $ 1,143.2 $ 856.5 $ 286.7 33.5 % Cost of revenues: New and used equipment sales $ 176.5 $ 114.3 $ 62.2 54.4 % $ 482.6 $ 333.3 $ 149.3 44.8 % Parts sales 40.0 30.5 9.5 31.1 % 116.7 89.8 26.9 30.0 % Service revenue 24.3 17.3 7.0 40.5 % 66.3 48.2 18.1 37.6 % Rental revenue 5.9 4.6 1.3 28.3 % 16.7 15.3 1.4 9.2 % Rental depreciation 25.9 22.2 3.7 16.7 % 69.5 62.9 6.6 10.5 % Rental equipment sales 20.8 25.0 (4.2 ) (16.8 )% 82.6 81.7 0.9 1.1 % Cost of revenues $ 293.4 $ 213.9 $ 79.5 37.2 % $ 834.4 $ 631.2 $ 203.2 32.2 % Gross profit $ 111.6 $ 81.1 $ 30.5 37.6 % $ 308.8 $ 225.3 $ 83.5 37.1 % General and administrative expenses $ 94.2 $ 72.4 $ 21.8 30.1 % $ 265.9 $ 208.3 $ 57.6 27.7 % Depreciation and amortization expense 3.7 2.7 1.0 37.0 % 11.6 7.3 4.3 58.9 % Total general and administrative expenses $ 97.9 $ 75.1 $ 22.8 30.4 % $ 277.5 $ 215.6 $ 61.9 28.7 % Income from operations $ 13.7 $ 6.0 $ 7.7 128.3 % $ 31.3 $ 9.7 $ 21.6 222.7 % Other (expense) income: Interest expense, floor plan payable – new equipment $ (0.8 ) $ (0.4 ) $ (0.4 ) 100.0 % $ (1.6 ) $ (1.4 ) $ (0.2 ) 14.3 % Interest expense – other (7.7 ) (5.7 ) (2.0 ) 35.1 % (19.8 ) (16.5 ) (3.3 ) 20.0 % Other income 0.2 0.2 — — 0.9 0.3 0.6 200.0 % Loss on extinguishment of debt — — — NA
Cody Upp joins Numina Group as VP of Strategy to Spearhead Robotic, AMR, and Pack Automation Solutions
Numina Group, an independent systems integrator providing warehouse automation and order fulfillment solutions, has announced the addition of Cody Upp to their management team. Cody has a strong background in both software and in warehouse robotics, most recently as one of 6 River Systems’ first go-to-markets hires, designing and supplying robotic order-picking solutions. Numina Group has experienced rapid growth in AMR and Robotic Goods to Person (G2P) solutions in order picking product movement and sorting for order fulfillment solutions. Cody’s experience brings immediate value to customers, allowing him to focus on next-generation robotics technologies that reduce labor and increase order throughput. The number of vendors in the warehouse automation ecosystem has ballooned in recent years, especially in the autonomous mobile robot (AMR) space, as providers respond to the need to reduce operators’ repetitive manual work tasks and wasted walk time. Numina Group’s extensive automation design expertise and proven warehouse automation software platform integrates multiple technologies, such as ASRS, AMRs, and Goods to Person (G2P) with traditional technologies such as pick by voice, pick to light, conveyor systems, and pack and ship automation into a unified warehouse automation solution. “Numina Group has been at the forefront of automation technologies for over 35 years. We develop real-time, software-driven solutions that increase customer profitability and reduce errors”, states Dan Hanrahan, Founder, and CEO of Numina Group. “Cody Upp is a great addition to our team, bringing expertise in AMR solutions and the Robot as a Service (RaaS) business model to our current family of warehouse automation, unifying order picking AMRs with Numina’s final 100’ of a DC’s pack and ship requirements by automating quality control, documentation, labeling, manifesting and sorting”, added Hanrahan. “I am very excited to join an established automation integration firm with a great reputation for innovation and look forward to drawing on my experience to further accelerate the use of robotics as a component within the overall solution. Defining and implementing systems that reduce our customer’s costs to fulfill an order and lower their risk of missing their customer’s delivery windows are benefits derived from deploying the right mix of AMRs with other warehouse automation technologies. My focus is to continue to productize and scale our automation solutions in order to provide immediate and lasting value in each client engagement,” stated Cody Upp.
BMWED cooling off period extended
Today, the freight railroads and BMWED extended their current cooling-off period until at least December 4 to align with all other rail unions yet to ratify their tentative agreements. As a result of this agreement, members of the two largest rail unions – BLET and SMART-TD – will complete the ratification votes that currently are underway prior to any potential work stoppage. This agreement provides greater certainty for the economy, rail customers, and rail passengers ahead of the Thanksgiving holiday. “This agreement to extend the cooling off period affords all unionized employees the opportunity to vote on their agreements free of a looming strike threat,” said AAR President and CEO Ian Jefferies. “Our goal remains the same – successfully completing this round of bargaining – and we stand ready to reach an agreement with BMWED based upon the Presidential Emergency Board’s recommendations.” To date, seven labor unions have ratified agreements based on the recommendations of three experienced arbitrators appointed by President Biden, and three other ratification votes are pending. The tentative agreements reached in the round provide employees a 14.1% wage increase effective immediately and a 24% wage increase by 2024, the largest increase in five decades, and an immediate average payout of almost $16,000 per employee. By the end of the agreement, the average rail worker’s pay would reach about $110,000 and total compensation (including benefits) would reach about $160,000 per year. The railroads seek, and continue to advocate for, a prompt resolution that rewards rail employees, allows the railroads to continue servicing customers, and prevents further disruption to the struggling supply chain.
U.S. Rail Traffic for the week ending November 5, 2022
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending November 5, 2022. For this week, total U.S. weekly rail traffic was 502,106 carloads and intermodal units, down 0.4 percent compared with the same week last year. Total carloads for the week ending November 5 were 243,276 carloads, up 3.2 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 258,830 containers and trailers, down 3.6 percent compared to 2021. Seven of the 10 carload commodity groups posted an increase compared with the same week in 2021. They included nonmetallic minerals, up 3,499 carloads, to 34,129; motor vehicles and parts, up 2,515 carloads, to 14,510; and coal, up 1,416 carloads, to 68,303. Commodity groups that posted decreases compared with the same week in 2021 were chemicals, down 1,081 carloads, to 32,803; miscellaneous carloads, down 249 carloads, to 9,344; and forest products, down 238 carloads, to 9,325. For the first 44 weeks of 2022, U.S. railroads reported a cumulative volume of 10,214,652 carloads, up 0.2 percent from the same point last year; and 11,580,806 intermodal units, down 4.7 percent from last year. Total combined U.S. traffic for the first 44 weeks of 2022 was 21,795,458 carloads and intermodal units, a decrease of 2.5 percent compared to last year. North American rail volume for the week ending November 5, 2022, on 12 reporting U.S., Canadian and Mexican railroads totaled 346,035 carloads, up 2.9 percent compared with the same week last year, and 342,343 intermodal units, down 4.1 percent compared with last year. Total combined weekly rail traffic in North America was 688,378 carloads and intermodal units, down 0.7 percent. North American rail volume for the first 44 weeks of 2022 was 29,879,757 carloads and intermodal units, down 2 percent compared with 2021. Canadian railroads reported 82,653 carloads for the week, up 3.8 percent, and 68,784 intermodal units, down 6.2 percent compared with the same week in 2021. For the first 44 weeks of 2022, Canadian railroads reported a cumulative rail traffic volume of 6,422,164 carloads, containers, and trailers, down 1.8 percent. Mexican railroads reported 20,106 carloads for the week, down 3.8 percent compared with the same week last year, and 14,729 intermodal units, down 2.7 percent. Cumulative volume on Mexican railroads for the first 44 weeks of 2022 was 1,662,135 carloads and intermodal containers and trailers, up 3.8 percent from the same point last year. To view the traffic charts, click here.
John Groth is the new Vice President Pharma at OPTIMA Machinery Corporation
OPTIMA pharma is continuing to strengthen its market position in the USA As of September 26, 2022, John Groth took over as Vice President Pharma at Optima Machinery Corporation. His appointment at the U.S. subsidiary based in Green Bay, Wisconsin further strengthens the Optima Group’s pharmaceutical position in the USA and sets the stage for continued growth. “It feels like coming home,” says Groth, who after seven years with another manufacturer, returns to Optima as Vice President Pharma USA. North America is an important and growing market for Optima, especially for the pharmaceuticals business unit. Reflecting the sustained high demand in the sector for machines, systems, and services, Optima is pressing ahead with the strategic expansion of its regional organizations. “We are very pleased to have John Groth, an experienced manager who is very familiar with the specific needs of the pharmaceutical industry and Optima,” says Gerhard Breu, Chairman of the Optima Pharma Division. “It shows that we take our partnership with our customers seriously and that we are doing all we can to continue to expand our market leadership in North America,” says Breu. Enabling growth through legacy and vision John Groth will be responsible for managing all areas of Optima’s Pharma Business Unit in the U.S. “I am very eager to be leading a group of highly talented experts and friends toward new success,” says Mr. Groth. “We continue to grow our presence and lay the foundations for expanding our portfolio.” For him, the empowerment of a great team is the prerequisite for achieving great results. With more than 13 years of experience in aseptic processing, Mr. Groth also brings more than 20 years of commercial finance experience. He recently completed his Master’s degree in Law from Northwestern University Law School and has degrees in Business Administration and Finance. “I understand our history and see the future, which for Optima is indeed very bright.”
Episode 331: Mujin at MODEX 2022
Welcome to today’s episode of The New Warehouse, where we welcome Josh Cloer, Director of Sales at Mujin Corp. Mujin operates globally but is relatively new to the U.S. market. They specialize in robotics technology, specifically in the warehouse space, and believe in robots taking on dirty and dangerous tasks so humans can perform more creative work. In this episode, Josh and Kevin discuss the MujinController and how far robotics has come in advancing warehouse operations. Key Takeaways The MujinController takes a different approach to deploying robotics. Mujin’s new controller allows for easier deployment of robotics in factories by using software to plan and manage movement instead of programming the robots manually. This approach allows for greater flexibility and accuracy in robot movement, reducing the variability that environmental factors can cause. Mujin offers a complete technology package that includes the controller, advanced gripping, and 3D vision technology to provide solutions for palletizing, de-palletizing, and other material handling requirements. Josh shares how Mujin works with all the major robotics companies, and the four brands in action at their booth are busy performing various tasks you would see in a typical warehouse. Robotics have been excellent for picking and packing pallets and cases when variability is limited. Building mixed-case pallets have often been a challenge, but Mujin has solved this problem, and their technology is able to build mixed-case pallets on the fly with no programming. Josh explains how the robot can “play Tetris” by putting cases to the side, tracking the cases, and using a digital twin visualization of the environment to get smarter. This capability is a massive advantage for distribution centers sending products to smaller retail locations. The New Warehouse Podcast EP 331: Mujin at MODEX 2022
Seeq appoints George Skaryak as Chief Revenue Officer
Seeq Corporation, a provider of manufacturing and industrial Internet of Things (IoT) advanced analytics software, announced the appointment of George Skaryak as Chief Revenue Officer (CRO), a new member of the Seeq executive leadership team. Skaryak will lead all aspects of the company’s go-to-market, sales, and business development, focusing on new revenue opportunities. “This is an exciting time of growth for Seeq, and we’re thrilled to add a sales leader with a proven track record of growing SaaS businesses to bring more value to our customers,” says Dr. Lisa Graham, CEO at Seeq. “George’s rich background in enterprise sales and passion for hiring and training sales teams will be an invaluable addition to the executive team.” Skaryak brings more than 30 years of experience leading large teams and driving growth across many industries. Previously, Skaryak served as EVP of Worldwide Sales for Cyara, a leading customer experience assurance platform, where he was responsible for sales growth and leadership. Additionally, he has held various sales leadership roles at large and high-growth software companies, including IBM, 41st Parameter, Monster, and MetricStream. “Seeq has an undeniable product-market fit and an enthusiastic customer base, making this a pivotal time of growth for the company and the ideal time to join,” says Skaryak. “I look forward to collaborating with my Seeq colleagues to align sales, partners, customer success, and marketing through a unified approach to further accelerate Seeq’s global growth.” Seeq enables companies to address their key initiatives in workforce transition, digital transformation, and sustainability with self-serve advanced analytics that can access and leverage vast amounts of historically unused data. Engineers and scientists in process manufacturing organizations can rapidly analyze, predict, collaborate, and share insights to accelerate better production outcomes. Seeq customers include companies in the oil and gas, pharmaceutical, chemical, energy, power and utility, mining, food and beverage, pulp and paper, and other process industries. Investors in Seeq include Insight Ventures, Saudi Aramco Energy Ventures, Altira Group, Chevron Technology Ventures, and Cisco Investments. Seeq is available worldwide through a global partner network of system integrators, which provides training and resale support for Seeq in over 40 countries, in addition to its direct sales organization in North America and Europe. Drawing from his broad industry experience, Skaryak will help further Seeq’s revenue growth as its first CRO, advancing the company’s mission of empowering manufacturers to optimize business outcomes with advanced analytics. Skaryak holds a B.S. from California Polytechnic State University and is based in Pittsburgh, PA.
Toyota Material Handling Solutions hires Steve Dolphin as Chief Operating Officer
Toyota Material Handling Solutions (TMHS) has announced the addition of Steve Dolphin to its leadership team. As Chief Operating Officer (COO), Steve is responsible for day-to-day operations and executing the company’s long-term goals. “Steve and I worked closely together for the past seven years as TMHS evolved from a forklift dealer to a total solutions provider. His leadership style and commitment to doing things right impressed me from day one,” said Dr. Shankar Basu. “Steve’s experience in service, material handling, and commercial cleaning, coupled with his background in the military, make him the ideal person to help lead our organization as we change and grow in the coming years.” Dolphin formerly held management positions at Toyota Material Handling, Yale Chase Equipment and Services, and Raymond Handling Solutions, Inc and served as Vice President and General Manager for Jan-Pro Cleaning Systems of Southern California. He is a retired Lieutenant Colonel for the United States Marine Corps. Steve earned his bachelor’s degree at Loras College, his master’s degree at The University of San Diego, and passed his doctoral comps with honors in business administration and international business at Argosy University. He currently resides in Long Beach, Calif.
Material Handling Education Foundation announces Cahners Award winner
During the 2022 MHI Annual Conference, the Material Handling Education Foundation, Inc. (MHEFI) presented the Norman L. Cahners Industry Award to David Lippert, President of Hamilton Caster & Mfg. Company. The Norman L. Cahners award is given to nominees who have continually made extraordinary contributions to the industry throughout their lifetime. Lippert is an industry veteran who has served on the MHI Board of Governors, MHI Roundtable Advisory Committee, MHEFI Board of Directors, an industry representative on the College-Industry Council on Material Handling Education (CICMHE), as well as leadership roles for the Institute of Caster & Wheel Manufacturers and participation in the Ergonomic Assist Systems and Equipment Council. In addition to the Cahners award, MHEFI hosted a fundraiser at the 2022 MHI Annual Conference. MHEFI raised $71,707 over the course of the three-day conference through generous pledged and online donations from Annual Conference attendees and the silent auction. Funds are used to support the mission of the organization to provide financial support for educational programs to engage and retain talent for the material handling, logistics, and supply chain industry.
Singapore, Long Beach, L.A. Ports to establish green, digital shipping corridor
The collaboration aimed at decarbonizing ocean cargo transport The Maritime and Port Authority of Singapore (MPA), Port of Long Beach, Port of Los Angeles, and C40 Cities have begun discussions to establish a green and digital shipping corridor between Singapore and the San Pedro Bay port complex. The corridor will focus on low- and zero-carbon ship fuels, as well as digital tools to support the deployment of low- and zero-carbon ships. This collaborative effort supports the Green Shipping Challenge launched during the World Leaders’ Summit at the 27th United Nations Climate Change Conference (COP27) in Sharm el-Sheikh, Egypt, this week. Convened by the United States and Norway, the Green Shipping Challenge encourages governments, ports, maritime carriers, cargo owners and others in the shipping value chain to commit to concrete steps at COP27 to galvanize global action to decarbonize the shipping industry. “Decarbonizing the supply chain is the future of our industry, and partnerships like this on the world’s most important trade route are important for fulfilling that ultimate goal,” said Port of Long Beach Executive Director Mario Cordero. “We’re excited about developing this initiative in the coming months and what it means for making operations more efficient while advancing the fight against global warming.” “Reducing greenhouse gas emissions in the maritime supply chain is essential, and this trans-Pacific partnership will help us build a network of ports and key stakeholders to help decarbonize goods movement throughout the Pacific region,” said Port of Los Angeles Executive Director Gene Seroka. “We look forward to coordinating with our partners to develop an implementation plan on this critical initiative.” As hub ports, Singapore, Long Beach, and Los Angeles are vital nodes on the trans-Pacific shipping lanes and key stakeholders in the maritime sector’s green transition. The three ports and C40 Cities will work closely with other stakeholders in the maritime and energy value chains to accelerate the deployment of low- and zero-carbon emission solutions, identify digital shipping programs, and develop green fuel sources for bunkering to support efficient cargo movement. In addition to reducing greenhouse gas emissions, the green and digital shipping corridor aim to catalyze investment in green infrastructure, including zero-carbon energy hubs linked to port and shipping demand. “The trans-Pacific corridor is one of the busiest trade routes in the world,” said Teo Eng Dih, Chief Executive of MPA. “MPA is pleased to support the development of a green and digital shipping corridor with the USA through the Port of Los Angeles and the Port of Long Beach, given their strong connectivity and existing initiatives with C40 Cities. Through this corridor, we hope to support the decarbonization of global supply chains, complementing efforts undertaken by the industry and the International Maritime Organization to drive the decarbonization and digital transition for international shipping.” “Accelerating efforts to decarbonize the shipping sector is urgent if we are to limit global warming to 1.5°C,” said C40 Executive Director Mark Watts. “This initiative has the potential to serve a range of carriers and routes by reimagining infrastructure designs and operational best practices, and advancing the feasibility of zero-carbon fuel production, supply, storage, and bunkering.”
Industry prepares for continued rate hikes as wholesale trade adds 15,000 jobs in October and inflation shows tepid signs of deceleration
An economic slowdown is likely in the next 6 to 12 months with the onset of regular rate hikes. The industry encourages the federal government to avoid enacting policies that may increase the likelihood of a global recession The National Association of Wholesaler-Distributors (NAW), which is the voice of the 7.4 trillion-dollar wholesale distribution industry, and employs more than 5 million U.S. workers, reacted to the newly released October jobs report; cautioning the federal government to refrain from aggressive economic overcorrection and reckless spending that will fuel ongoing economic uncertainty. According to the Bureau of Labor Statistics, the US economy added 261,000 jobs in October, as unemployment inched up to 3.7% and Wholesale Trade added 15,000 jobs. Additionally, employment in wholesale trade increased by an average of 17,000 per month thus far in 2022, compared with 13,000 per month in 2021. “Today’s jobs report shows that six consecutive rate increases from the Federal Reserve have barely had an impact on the labor market,” said NAW CEO Eric Hoplin. “Combined with the rate increase announced on Wednesday, these numbers indicate that our economy has not slowed down enough to counter record-breaking levels of inflation. Additionally, increased rate hikes increase the likelihood of a recession as industries pull back in anticipation of economic unrest. NAW will continue to monitor the economic situation for our members and for the wholesale distribution industry. Once again, we urge the federal government to avoid unnecessary spending that will continue to fuel economic hardship in this country,” concluded NAW CEO Eric Hoplin.