New! ChargePlus FLEX Universal Offboard Charger, now available! In stock!
FSIP’s (Flight Systems Industrial Products) exclusive ChargePlus Universal offboard charger line-up is getting a new addition: ChargePlus FLEX. This universal, high-frequency, off-board charger provides greater than 90% high-energy efficiency. The ChargePlus FLEX features programmable voltage (12-24-, 36-, or 48V), current, and charging profile via the touch keypad, can start a charging cycle as low as 2-volts, has an automatic float mode, and sports an easy-to-read LCD display. It’s the perfect portable solution for charging your lead-acid batteries. The ChargePlus Flex is ideal for motive power applications like pallet jacks, scissor lifts, sweeper scrubbers, LSVs, and more. For more information go to shop.fsip.biz or call Sales Support at 1-800-333-1194. Sales Support is also available by email at: [email protected]
Gain extra load capacity with the new 2700 Medium Duty Conveyor from Dorner
For applications that need a little extra boost in load capacity, the new 2700 Medium Duty Conveyor from Dorner has the strength to carry heavier products for a variety of industrial automation and packaging applications including palletizers, multi-lane processing, case and tray handling, and end-of-line packaging. With regards to Dorner’s industrial flat belt conveyor options, the new 2700 Medium Duty hits the sweet spot between Dorner’s popular low-profile 2200 and 3200 heavy-duty platforms. While the 2200 conveyor can carry up to 80 pounds, and the 3200 conveyor can support up to 400 pounds, the 2700 Medium Duty is engineered to safely convey up to 150 pounds. This expanding portfolio of industrial conveyors give customers a full breadth of options to select the right platform for their specific application. Another advantage the 2700 Medium Duty Conveyor brings is extended widths between 26” and 36”, available in 2” increments. Wider conveyors are becoming sought-after options in warehouses and industrial facilities as their extra capacity complement a company’s automation upgrades. The growing popularity of autonomous mobile robots (AMR), robotic palletizing, and other technologies, all of which can handle heavier loads, pair nicely with the wider widths and increased carrying capacity of the 2700 Medium Duty. Furthermore, the conveyor can be wider than it is long, which enables an AMR to dock sideways, allowing for more efficient and faster loading and unloading. Features and benefits of the new 2700 Medium Duty Conveyors include: V-Guided positive belt tracking for smooth, maintenance-free performance even under demanding side load applications Precise rack and pinion belt tensioning for fast and simple tensioning Larger, sealed-for-life bearings easily handle 2700 Medium Duty capacity, while reducing maintenance 16 mm (5/8”) high-speed nose bar transfer tail for precise transferring of small packages Engineered for applications involving multi-lane and medium part handling; transfers; accumulation, automated and manual assembly
Passing of B&B Attachments Founder George Bell
B&B Attachments is paying tribute to its founder and dear friend George Bell. George passed away on the 5th of October 2022, surrounded by his loving family. Mr. Bell was loved by his family and friends, and it cannot be put into words for the loss that is felt by his passing. In addition to his family, those of us who had the opportunity to work with George feel a tremendous loss. George and his wife Irene Bell founded B&B Attachments in 1980. Trading first from their home in Headley, near Newbury, to then expanding the business to Inkpen, Berkshire, and later opening its office in the Northeast of England, where George was born. He had a great love for his hometown of Newcastle upon Tyne, with its bustling atmosphere, cultural heritage, and of course its football team. George was black and white through and through and enjoyed many a match day at St James Park. He had a smile for everyone he met. No one was a stranger for long. Everyone wanted to be around George. Customers gravitated to his kind and authentic nature and orders came easily to him, mainly due to George’s personality and charisma. He worked with passion, integrity, and unwavering determination. Under George and Irene’s leadership, the business went from strength to strength. B&B remembers George, as an amazing person who played a unique and special role in the lives of all who knew him. Even after retirement he generously gave his knowledge, his expertise, and his time to anyone who needed it. Every one of us who knew George and worked alongside him will remember him with great affection. As George would often say when all is said and done, however much you like your work, it’s the people that really make the difference, and George made the difference. For the B&B attachments family, this is a particularly difficult and painful time for his family. In extending to Irene and all the family our heartfelt condolences. At this tender moment, B&B Attachments celebrates the life of George Bell, our founder, and pioneer. George Bell 1942 – 2022
OTR Wheel Engineering announces Port Wheel Inspection Program with Taylor Machine Works
OTR Wheel Engineering, Inc. (OTR) has successfully launched a program with Taylor Machine Works (TMW), the market-leading manufacturer of high-capacity lift trucks and container handling equipment, to inspect and, if needed, replace wheels used in vehicles operating at ports. The collaboration between longtime partners OTR and TMW facilitates on-site wheel inspections at major U.S. ports and provides a critical safety enhancement that port staff and union leadership alike have endorsed. The program also reduces costly equipment downtime and productivity losses, a major focus given the volume of business transacted at ports. Because safety is a top priority worldwide, especially at ports where heavy equipment is involved, OTR is expanding this program to its customer base and partners in Europe. Through this expansion, OTR will leverage its footprint and staff to replicate the same process being implemented in the U.S. It will offer proper de-mounting and installation of OEM-approved wheels, which is not only mission-critical for worker safety but also affects the productivity and performance of vehicles operating in the field when downtime is not an option. “This program is game-changing,” says Michael Stoeckel, Global Vice President, Sales & Marketing at OTR. “Together with TMW personnel, our program is providing critical service to ports across the U.S. and soon, globally. This is a great example of how working with long-standing partners, such as TMW, can offer tremendous benefits in safety and productivity, and we’re thankful for TMW’s support in this effort.” “We inspect, diagnose and confirm the condition of the wheel, its duty cycle, and the application,” explains Charles Jackson, senior manager and sponsor of OTR’s program with TMW. “If a wheel has a stress crack, we can visually see or detect it using a proprietary process, and if it’s approaching end of life, we will inform the port staff accordingly. We then recommend an OEM-approved replacement wheel, allocated from OTR’s stock of wheels manufactured in-house, to ensure safe and continuous vehicle operation at the ports. It’s a win-win-win.” OTR will be exhibiting at Bauma, October 24-28, 2022, Booth 430 in Hall A6, where a 10-bar OTR port wheel will be displayed. Staff will be on-site to explain how the program can be implemented in additional locations worldwide.
Plastics Industry Association releases global trends report which shows improved trade in 2021 and positive outlook for 2022
The Plastics Industry Association (PLASTICS) released its annual Global Trends report today during an executive briefing at the K Show in Düsseldorf, Germany—the world’s largest plastics trade show. “Inflation was a big factor in the increases in the dollar value of exports and imports of plastics trade,” said Perc Pineda, Ph.D. Chief Economist at PLASTICS. “While this year’s merchandise trade outlook could miss the forecast, as the global economic growth slowed, the world is still the market for the plastics industry.” Among the highlights found in the Global Trends report: The U.S. plastics industry’s overall trade deficit grew to $10.1 billion in 2021 from $5.4 billion just a year earlier. For several years prior, the plastics industry enjoyed a trade surplus. Still, the U.S. enjoyed a $19.6 billion surplus in resin. The U.S. plastics industry had an $18.2 billion trade deficit with China, its third-largest export market. This was, however, offset in part by a $2.6 billion resin trade surplus with China, the world’s largest resin buyer and a large importer of U.S.- produced resins. Interested parties throughout the globe will find the Global Trends report and its accompanying dataset provide a comprehensive account of U.S. plastics exports and imports worldwide in each of the four categories of the plastics industry – resin, products, machinery, and molds. The report is also the only plastics trade report that includes a contained trade analysis outlining the movement of resins and plastics that are embedded in goods that the U.S. both exports and imports. According to Global Trends, Mexico and Canada remained the U.S. plastics industry’s largest export markets. In 2021, the industry exported $18.0 billion to Mexico and $15.0 billion to Canada, maintaining its largest trade surplus—$10.8 billion—with Mexico. In the first half of 2022, U.S. plastics industry exports increased by 16.9% and imports rose by 17.0% compared to the first half of 2021. The trade balance, however, increased by 17.4%. “Risks on plastics trade remain in the forecast for 2023, but for the U.S. plastics industry, international trade remains a component of its overall growth strategy in 2022 and beyond,” said Pineda. “The U.S. ranks second in PLASTICS Global Plastics Ranking™.” “The fact that our Global Trends report anticipates positive results for our industry, despite a widened trade deficit, speaks to the importance of plastics to the world we live in,” said Matt Seaholm, President and CEO of PLASTICS. “Our members stand ready to provide the materials that improve lives throughout the world and that are essential to creating the circular economy we all strive to achieve.” An executive summary of PLASTICS’ Global Trends report is available online at: https://www.plasticsindustry.org/globaltrends
Sunlight Group continues global expansion with new lithium battery facility in North Carolina
Mebane, NC expansion and investment marks another significant company milestone in the U.S. market $40 million investment to expand NC operations is part of a $150 million investment plan for U.S. operations and a $560 million global expansion strategy Fully owned, state-of-the-art 134,000 square foot Mebane facility will provide up to 200 jobs for high-tech and highly trained staff, and have immediate assembly capacity of 1GWh and 3GWh gradually until 2026 The new facility will bring best-in-class lithium-ion batteries and battery charging solutions to meet America’s growing demand Sunlight Batteries USA, a technology company specializing in innovative industrial mobility and energy storage systems, announces its expansion in the U.S. market with a second location in Mebane, Alamance County, North Carolina. The $40 million investment will create new and state-of-the-art lithium-ion batteries and battery charging solutions hub to meet growing demand in the Americas market. The new facility will be equipped with five lithium-ion battery assembly lines, including a fully automated one and one dedicated to ESS, whose immediate collective capacity reaches 1GWh and 3GWh gradually until 2026. Sunlight Batteries USA is a subsidiary of the Sunlight Group, a world-leading technology company headquartered in Athens, Greece. Sunlight’s global operations are an integrated network of innovation, manufacturing, assembly, and service hubs that develop next-generation energy storage solutions for off-road applications, serving the industrial mobility, leisure mobility, and ESS sectors. The newly-announced $40 million Mebane facility in North Carolina is part of a $560 million global expansion strategy with $150 million dedicated to growing the innovator’s tech, production, and service presence in the U.S. market. Todd Sechrist, CEO of Sunlight Batteries USA, commented, “We are truly excited to continue our expansion in the US, and specifically North Carolina, which represents another milestone in Sunlight’s ambitious growth plans for the Americas region. The fully owned 134,000-square-foot facility — with an additional 100,000-square-foot expansion pad — affords Sunlight the ability to serve the growing demand for lithium-ion battery and charger solutions in the US. In addition to positioning Sunlight as a partner of choice in the Americas market for meeting sustainability, clean energy, and decarbonization goals, the new assembly center is an exciting opportunity to be an economic engine for the communities in which we live and work and to provide the brightest possible future for our Sunlight families and neighbors. The new Mebane operation follows the 2021 opening of a 103,000 sq ft facility in Greensboro focused on lead-acid batteries, currently standing at 1GWh in lead formation and assembly capacity. Sunlight’s second plant in the U.S. will add to the company’s lithium-ion production capacity by utilizing state-of-the-art automated laser welding machinery for modules and complete batteries. A key advantage of this specific production technology is its industry-leading product flexibility. Namely, the automated assembly line is fitted with different interchangeable tools that can be promptly refitted to produce new designs and battery architectures, which significantly reduces changeover time, maximizes effectiveness, and addresses diversified market demands. In addition to lithium module and battery assembly, the new Mebane facility will also house the Headquarters of Sunlight Batteries USA, as well as advanced charging and industrial electronics services (Battery Charger Assembly, Parts and Distribution Center) – thanks to Sunlight Group’s May 2022 acquisition of PBM SRL, an Italy-based global leader in the production of battery chargers and industrial electronic devices. Stakeholder confidence in Sunlight Batteries USA’s North American expansion strategy was highlighted when the company received a Job Development Investment Grant (JDIG) approved by the North Carolina Economic Investment Committee in September 2022. The State praised the economic impact of the investment which is estimated to grow North Carolina’s economy by $390.7 million over 12 years. The new Mebane facility will create more than 200 jobs for high-tech and highly trained staff in various functions and departments – including sales, marketing, operations, assembly, warehousing, engineering, and customer service. The average salary will approximate $68,000 – well above the current average wage in Alamance County of $46,999. State and local areas will see an additional impact of more than $8.5 million each year from the new payroll. North Carolina Governor Roy Cooper commented on the awarding of the grant, “Demand is growing for clean energy components like batteries, and North Carolina is at the forefront of this industry of the future. Companies like Sunlight Batteries USA are bringing new jobs and new investment to our state, thanks to our commitment to clean energy and innovation.” Sunlight’s U.S. operations are strategically located in the Central Piedmont region of North Carolina to take advantage of the area’s skilled workforce and logistical connectivity to major U.S. markets. The Mebane facility specifically, is situated among major interstate highways, multiple TL and LTL carriers, and three ports – all within a few hour’s driving time.
Herc Holdings reports strong Third Quarter 2022 results and raises 2022 guidance
Third Quarter Highlights Equipment rental revenue increased 35.9% to a record $706.2 million Total revenues increased 35.4% to $745.1 million Net income increased 40.2% to $101.4 million, or $3.36 per diluted share Adjusted EBITDA grew 40.3% to a record $345.0 million and adjusted EBITDA margin expanded 160 basis points to 46.3% Repurchased approximately 540,000 shares of common stock Raises FY 2022 adjusted EBITDA guidance to 36% to 40% growth over the prior year Herc Holdings Inc. has reported financial results for the quarter that ended September 30, 2022. Equipment rental revenue was $706.2 million and total revenues were $745.1 million in the third quarter of 2022, compared to $519.6 million and $550.4 million, respectively, for the same period last year. In the third quarter of 2022, the Company reported a net income of $101.4 million, or $3.36 per diluted share, an increase of 41.8% compared to $72.3 million, or $2.37 per diluted share, in the same 2021 period. “We continued to see strong demand for our equipment rental services across all of our geographic regions,” said Larry Silber, president and chief executive officer. “Our rental revenue increased 35.9% over the prior year, while the average fleet increased 35.0% to $5.3 billion. Adjusted EBITDA increased 40.3% to $345.0 million and adjusted EBITDA margin expanded 160 basis points to 46.3% in the quarter. “Just as our third quarter was nearing its close, Hurricane Ian landed in Southwest Florida. The ferocity of its impact on our local communities has been widely reported in the news. Our outstanding and dedicated Herc team stepped up to immediately respond to the needs of fellow team members, customers, and communities. I want to thank all of our team for their support and their commitment to operate safely and effectively throughout the preparation, cleanup, and remediation that is now ongoing throughout the region.” 2022 Third Quarter Financial Results Equipment rental revenue increased 35.9% to $706.2 million compared to $519.6 million in the prior-year period. Total revenues increased 35.4% to $745.1 million compared to $550.4 million in the prior-year period. The year-over-year increase of $194.7 million was primarily related to an increase in equipment rental revenue of $186.6 million and an increase in sales of rental equipment of $4.9 million. Pricing increased6.2% compared to the same period in 2021. Dollar utilization decreased to 45.3% compared to 46.0% in the prior-year period primarily due to a mix of equipment on rent. Direct operating expenses (DOE) of $277.5 million increased 32.8% compared to the prior-year period. The $68.6 million increase was primarily related to strong rental activity and increases in payroll and related expenses associated with additional headcount, in addition to higher fuel prices, maintenance and facilities expenses. Depreciation of rental equipment increased 32.4%, or $34.2 million, to $139.6 million due to higher year-over-year average fleet size. Non-rental depreciation and amortization increased 50.0%, or $8.5 million, to $25.5 million primarily due to the amortization of acquisition intangible assets. Selling, general and administrative expenses (SG&A) increased 36.8% to $111.5 million compared to $81.5 million in the prior-year period. The $30.0 million increase was primarily due to increases in selling expenses, including commissions and other variable compensation increases, general payroll and benefits, and travel expenses. Interest expense increased to $33.0 million compared with $21.4 million in the prior-year period due to increased balances and interest rates on the ABL Credit Facility. The income tax provision was $34.2 million compared to $23.8 million for the prior-year period. The provision was driven by the level of pre-tax income, offset partially by certain non-deductible expenses. The Company reported a net income of $101.4 million compared to $72.3 million in the prior-year period. Adjusted net income increased 42.2% to $103.4 million, or $3.42 per diluted share, compared to $72.7 million, or $2.38 per diluted share, in the prior-year period. Adjusted EBITDA increased 40.3% to $345.0 million compared to $245.9 million in the prior-year period, while adjusted EBITDA margin increased 160 basis points to 46.3% compared to 44.7% in the prior-year period. 2022 Nine Months Financial Results Equipment rental revenue increased 34.4% to $1,838.4 million compared to $1,368.0 million in the prior-year period. Total revenues increased 30.6% to $1,952.8 million compared to $1,495.1 million in the prior-year period. The year-over-year increase of $457.7 million was related to an increase in equipment rental revenue of $470.4 million, offset primarily by lower sales of rental equipment of $22.6 million. The reduction in sales of rental equipment resulted from strong rental demand and the strategic management of our fleet to maximize fleet size and minimize the sales of rental equipment. Pricing increased5.4% compared to the same period in 2021. Dollar utilization increased to 43.2% compared to 42.4% in the prior-year period primarily due to increased volume and rate. Direct operating expenses (DOE) of $751.0 million increased by 33.4% compared to the prior-year period. The $187.9 million increase was primarily due to strong rental activity and increases in payroll and related expenses associated with additional headcount, in addition to increases in fuel prices, maintenance, delivery and freight, facilities, and re-rent expenses related to the corresponding increase in re-rent revenue. Depreciation of rental equipment increased 26.8%, or $82.2 million, to $389.1 million through the third quarter of 2022 due to higher year-over-year average fleet size. Non-rental depreciation and amortization increased 41.2%, or $20.1 million, to $68.9 million primarily due to the amortization of acquisition intangible assets. Selling, general and administrative expenses (SG&A) increased 34.8% to $297.9 million compared to $221.0 million in the prior-year period. The $76.9 million increase was primarily due to increases in selling expenses, including commissions and other variable compensation, general payroll and benefits, and travel expense. Interest expense increased to $80.7 million compared with $63.8 million in the prior-year period due to increased balances and interest rates on the ABL Credit Facility. The income tax provision was $68.1 million compared to $46.7 million for the prior-year period. The provision in each period was driven by the level of pre-tax income, offset partially by a benefit related to stock-based
KION Group appoints new Chief Financial Officer and Chief People and Sustainability Officer
Marcus A. Wassenberg was appointed Chief Financial Officer of the Group Valeria Gargiulo to assume the newly created role of Chief People and Sustainability Officer Chairman of the Supervisory Board Michael Macht: “The additions to the Executive Board underline KION Group’s clear commitment to achieving its strategic medium-term targets swiftly and in full, including strong profitability, the implementation of significant sustainability targets and the expansion of internal human resources planning and development initiatives” KION GROUP AG announces the completion of its Executive Board with the appointments of Marcus Wassenberg as Group Chief Financial Officer (CFO) and Valeria Gargiulo as Chief People and Sustainability Officer (CPSO). The expansion of the Executive Board will come into effect in the first half of 2023; the position of CPSO will be newly created. Marcus Wassenberg (55) joins KION GROUP AG as CFO from Heidelberger Druckmaschinen AG. His responsibilities at KION will include Accounting, Controlling, Finance, IT, as well as M&A and Investor Relations. The VPs Finance of the Operating Units will also report to Wassenberg. He will assume his new role by April 1, 2023, at the latest. Since September 2019, he has been responsible for the successful implementation of a comprehensive transformation program as CFO at Heidelberger Druckmaschinen AG, improving the company’s financial performance and competitiveness. He also served previously as CFO at Rolls-Royce Power Systems AG and Senvion AG. At both companies, he gained relevant industry experience and actively engaged with capital market participants. Wassenberg will work alongside with the entire Executive Board to further drive the profitability of the Group and enhance the processes required to achieve this. He will also actively engage in the dialogue with the capital markets both on the equities and the debt side. Valeria Gargiulo (50) joins KION Group AG from Daimler Truck AG and will assume her new role as Chief People and Sustainability Officer in Frankfurt/Main by May 1, 2023, at the latest. She will also take up the role as Labor Relations Director. Gargiulo’s responsibilities at KION will include Group-wide HR, Health & Safety, and Sustainability. As CPSO, she will focus, among other things, on attracting and intensively developing talent around the globe, equipping internal teams with all the necessary skills, and further advancing a diverse, equitable, and inclusive culture that elevates people’s engagement and unlocks their long-term potential. At Daimler Truck, she serves as Vice President People & Organisational Development. With around 30 years of experience in HR, sales, legal, and M&A, she brings extensive international experience as well as an excellent track record in organizational development, including building trustful relationships with social partners. As an active member of the ESG Steering Committee at her current employer, she is also instrumental in developing and implementing a state-of-the-art sustainability vision and process. Based on her many years of experience in the areas of environment, social and responsible corporate governance, she will sharpen the Group’s sustainability profile, significantly increase its transparency and ensure targeted implementation. “Valeria Gargiulo and Marcus Wassenberg, both experienced executives with proven track records, high-performance standards, and compelling visions for the future, will strengthen the incumbent Executive Board led by CEO Rob Smith” said Dr Michael Macht, Chairman of the Supervisory Board of KION Group AG. “The additions to the Executive Board underline KION Group’s clear commitment to achieving its strategic medium-term targets swiftly and in full. This applies in particular to strong profitability, the implementation of significant sustainability targets, and the expansion of internal human resources planning and development initiatives.” Rob Smith, Chief Executive Officer of the KION GROUP, added: “We at KION are focused on delivering profitable growth for the benefit of our stakeholders. Central to this pursuit is to continue to be an attractive employer who masters the challenges of our times. As a responsible company, we will contribute to the positive and sustainable development of our environment and society. I look forward to working with Valeria Gargiulo, Marcus Wassenberg, and all my other colleagues on the Executive Board to achieve our goals.”
Manhattan Beer Distributors selects Westfalia Technologies for warehouse automation
Westfalia Technologies, Inc., a provider of logistics solutions for manufacturers and distributors, announces its automation technology will be installed in two site locations for Manhattan Beer Distributors, a major New York City-based beer and beverage distributor. Westfalia was selected to provide machine controls software and WES software for an order release module (ORM) at Manhattan Beer’s location in the Bronx as well as a turn-key automated storage and retrieval system (AS/RS) at the Suffern, NY facility. The ORM implementation in the Bronx operates as an automated case release system and an order-building system. This automation technology will serve as case picking for Manhattan Beer’s top SKUs. After receiving orders from the warehouse management system (WMS), the ORM automatically generates mixed SKU layers and picks the necessary cases to form those layers, eliminating the need for manual picking. After the cases are automatically picked, they are sent to the palletized for automatic palletization or to a manual palletizing station when appropriate. The ORM is controlled by Westfalia’s Savanna.NET® Warehouse Execution System (WES), interfacing with the existing systems in the Bronx facility. The ORM is expected to go live this month. Like the ORM, Savanna.NET® will also control the AS/RS and integrate with Manhattan Beer’s existing solutions at the Suffern distribution center. The building will have an inbound section to retrieve beer from freight and rail shipments, and the AS/RS will handle both full and mixed pallets. The AS/RS will feature more than 22,000 pallet positions and three aisles supporting up to 3,000-pound pallets. The multi-deep system will be seven levels high and be housed in a 55-foot-tall building. “At any given time we have 4 to 5 million cases of beer stored throughout our five facilities,” said Michael McCarthy, Senior Vice President of Operations at Manhattan Beer. “Not only are these systems going to help with hiring and staffing, but it’s extremely difficult and costly to expand in the New York real estate market. Westfalia’s AS/RS is going to significantly improve our storage density.” The Greenfield project will connect two existing buildings in Suffern with the AS/RS implementation located in between (refer to the image below). With innovative designs utilizing features like triple rail support, the AS/RS handles all beer pallets on the equipment (from MillerCoors plastic pallets to a wide variety of Corona pallets), regardless of pallet differentiations from brand to brand. “Consider the wide variation of pallet types in the beer industry,” said Borja Salanova, Senior Solutions Consultant at Westfalia. “Our capacity to handle them is one of the most noteworthy aspects of this project. A Westfalia AS/RS in the beer industry is a true way to help streamline operations.” “I admire Westfalia for their patience–you could say we dated for a long time before we got married,” said Mitchel Bergson, Chief Transformation Officer at Manhattan Beer. “Most importantly, we felt trust with the Westfalia team. If we ever have an issue, I can call Dan Labell (President of Westfalia), and he takes my call. Their experience in the beverage industry, especially in wine and spirits and soft drinks, also gave us confidence in our choice of Westfalia as our warehouse automation provider.”
A ‘time to shine’ for warehouses
Pandemic conditions have improved, but the new era of labor shortages and increased demand continues for warehouses. In this environment, some say a steady increase of automation within warehouses is occurring. This month, Material Handling Wholesaler talks with industry leaders about how they see automated processes building new opportunities in warehouses across the industry. A ‘time to shine’ for warehouses At AutoScheduler, CEO Keith Moore said the company aims to be “the brain” inside distribution centers. The company launched two years ago inside Procter & Gamble, where Moore said the business founders “cut our teeth.” AutoScheduler.AI is a warehouse resource planning and optimization platform that “dynamically orchestrates all activities on top of your existing warehouse management system in real-time,” the business website said. The solution is designed to focus on and optimize all of a warehouse’s critical activities, including dock scheduling, loading, unloading, case picking, and creation of transfer orders, the site said. “With more supply chain challenges than ever, AutoScheduler combines data from numerous systems into a single operational plan for warehouses and distribution centers. It takes disparate data, identifies bottlenecks, and prescriptively creates plans to orchestrate campus operations for optimized efficiency,” the website said. The aim of the company is to help planning to be more effective, according to Moore, who said today AutoScheduler workers with some of the largest consumer goods providers in the industry. As a solution designed to work on top of a Warehouse Management System to orchestrate plans and processes, AutoScheduler is able to work many moves ahead of what is occurring, according to Moore. He said this is not unlike how technology is now able to orchestrate outcomes in a chess game. In chess, there are 64 squares and 16 pieces under a player’s control, and “since 1997, it has been impossible for a person to beat a computer,” said Moore, noting how many moves ahead a computer can see. Similarly, AutoScheduler is designed to incorporate a bigger picture in coordinating items, people, and equipment. The more complexity, the more opportunity, according to Moore. In the current environment, Moore said he believes inventory concerns for warehouses might “smooth out a bit” but labor will remain in demand. “That’s part of why automation has become so popular over the past few years,” he said, noting there are fewer employees working many years on a job, making it more difficult for companies to build the productivity and consistency desired. “People are understanding they need to do something to get consistent productivity out of the warehouse, to be able to meet the demand in a consistent way,” Moore said. “The challenge is, people that run operations, they’ve been in supply chain and logistics for a while and they’re not technologists,” he said. This is where AutoScheduler can help, according to Moore. He said AutoScheduler solutions help to orchestrate planning systems, making sure all of the processes flow and work together. In general, Moore thinks productivity rates are a little lower today versus five years ago due in part to the impacts of labor shortage. “It’s hard to replace a really experienced forklift driver,” Moore said. That said, he also believes warehousing and operation teams are more innovative now. “Warehouses are probably getting the investment needed,” said Moore, who said there are more technologists and more investment in automation overall. And as focus outside the industry focuses on supply chain and material handling in general, Moore added that it is a “remarkable” industry to work in. “It’s warehousing’s time to shine,” he said. “We can take opportunities and take advantage of what we have to innovate and drive value.” Automation advances Tecsys is also offering solutions for warehouses across the globe. The company’s supply chain solutions software is currently used in over 100 countries across the world, according to Adam Polka, Director of Public Relations. “Our solutions and services create clarity out of operational complexity with end-to-end supply chain visibility. Our customers reduce operating costs, improve customer service, and uncover optimization opportunities,” said the business website. Bill Denbigh, Vice President of Marketing, described how many of the company’s Nordic partners have incorporated automation in operations of all sizes. “They look at automation as part of being a solution to the future. I think there is a realization that adopting advanced supply chain solutions isn’t anymore just for the big boys,” Denbigh said. As automation solutions are explored in companies of all sizes, tighter circumstances are sometimes a driver, according to Denbigh. “I’ve got to get today’s orders out by 2 p.m. or I’ve got real estate issues I can’t outgrow anymore. Or I want to offer my customers a service that my competitors don’t offer or can’t,” he said. Automation offers ways to personalize, create unique packaging options, and more, according to Denbigh. He is seeing more engineering work in warehousing, describing one of Tecsys’ customers, a third-party logistics provider, that has many engineers on site. “They take an organization in and say, ‘We’re going to design a system for you. Specific racking, processes, we’re going to allow you to do these things,” Denbigh said. He also described how one of Tecsys’ customers designed systems to create the special sustainable packaging their own customers wanted. “It’s not going to slow down. It’s going to be a force,” he said, of automated advances, describing how his wife’s shampoo company sends her the product she wants when she needs it and with her name on the label. All of this requires a sophisticated process. “Think of the technologies that are required to supply that,” said Denbigh, noting how well this tailored approach works. “It’s locked in my wife as a consumer,” he said. A grocery retailer, however, would not require this type of system, according to Denbigh. So, he envisions a future of specialization within warehouses. Tecsys offers diverse solutions, from a simple warehouse management system that is implemented from the first touch to life in 28 days to an enterprise-grade system in which a project can be six to eight months, according to Polka. “Automation is not one thing,” he said, advising businesses to consider what a
154 New Industrial Manufacturing Development Projects showed improved performance in September 2022
IMI SalesLeads announced today the September 2022 results for the newly planned capital project spending report for the Industrial Manufacturing industry. The 154 new projects increased from August 2022 140 manufacturing projects, however, down from 162 in September 2021. The Firm tracks North American planned industrial capital project activity; including facility expansions, new plant construction, and significant equipment modernization projects. Research confirms 154 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 – 133 New Projects Distribution and Industrial Warehouse – 61 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 59 New Projects Expansion – 43 New Projects Renovations/Equipment Upgrades – 44 New Projects Plant Closings – 16 New Projects Industrial Manufacturing – By Project Location (Top 10 States) North Carolina – 10 Ohio – 10 Indiana – 9 Texas – 9 California – 8 Pennsylvania – 7 Wisconsin – 7 Michigan – 6 Alabama – 5 Georgia – 5 Largest Planned Project During the month of September, our research team identified 19 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 $15 billion in the construction of a manufacturing facility in BOISE, ID. They are currently seeking approval for the project. Top 10 Tracked Industrial Manufacturing Projects MICHIGAN: Battery component mfr. is planning to invest $3.6 billion for the construction of a manufacturing facility on 18 Mile Rd. in BIG RAPIDS, MI. They are currently seeking approval for the project. KENTUCKY: Automotive mfr. is planning to invest $700 million for the renovation and equipment upgrades at their manufacturing facility in LOUISVILLE, KY. They have recently received approval for the project. INDIANA: Automotive mfr. is expanding and planning to invest $491 million for a 6,000 SF expansion, renovation, and equipment upgrades on their manufacturing facility in MARION, IN. They are currently seeking approval for the project. Construction is expected to start in early 2023. TEXAS: EV mfr. is planning to invest $365 million in the construction of a lithium-hydroxide refining plant in ROBSTOWN, TX. They are currently seeking approval for the project. Construction is expected to start in late 2022, with completion slated for 2024. ARIZONA: Plant-based packaging product mfr. is planning to invest $280 million for the renovation and equipment upgrades on their manufacturing facility in GILBERT, AZ. Completion is slated for late 2023. SOUTH CAROLINA: Automotive component mfr. is planning to invest $200 million for the renovation and equipment upgrades on their manufacturing facility in ANDERSON, SC. Completion is slated for 2026. MISSOURI: Consumer products mfr. is planning to invest $180 million for the expansion, renovations, and equipment upgrades on their processing facility in ST. LOUIS, MO. They are currently seeking approval for the project. OHIO: Truck mfr. is planning to invest $150 million for the expansion of its manufacturing facility in NEW PHILADELPHIA, OH. They are currently seeking approval for the project. TEXAS: Steel tube mfr. is planning to invest $75 million in the construction of a 125,000 SF manufacturing facility in SEGUIN, TX. They have recently received approval for the project. ALABAMA: Laminated timber products mfr. is planning to invest $62 million in the construction of a 140,000 SF manufacturing facility in DOTHAN, AL. Completion is slated for 2024. The project also includes equipment upgrades on their existing manufacturing facility in DOTHAN, AL. About SalesLeads, Inc. Since 1959, SalesLeads, based in Jacksonville, FL is a leader in delivering industrial capital project intelligence and prospecting services for sales and marketing teams to ensure a predictable and scalable pipeline. Our Industrial Market Intelligence, IMI identifies timely insights on companies planning significant capital investments such as new construction, expansion, relocation, equipment modernization, and plant closings in industrial facilities. The Outsourced Prospecting Services, an extension to your sales team, is designed to drive growth with qualified meetings and appointments for your internal sales team.
The fork in the road
If you have been keeping up with our wonderful economic news you came across comments about Boomers leaving the workforce in droves because they feel they have enough of a nest egg to live on. Hope they are right. As a result of these retirements, however, there are thousands of businesses for sale, with sellers not really aware of what they have to sell. Some do not even know that what they have is sellable. They will just unload any equipment they own and call it quits. This scenario is especially prevalent in the construction business because if you are a contractor to whom can you sell? Not many people are not your direct competitors. And if you do that, you can guess what the pricing will be. Many of these business owners came to that fork in the road. Either to stay the course and do what they must do to grow the business with existing as well as new customers. Or covert assets to cash and move south to warmer climates because as an owner they were not prepared nor interested in doing what you had to be done, nor able to spend the money to upgrade their operation to remain competitive. In other words, upgrading your business is no longer an option. The digital world is taking over, your customers today grew up in the digital world and they expect to do business via the digital world. Is it any wonder why there are so many family businesses for sale? Look how some young entrepreneurs are taking advantage of this situation can be found on YouTube. Look up a young lady named Codie Sanchez and see what she is doing to make herself rich. Right now, she owns 26 companies that she converted from their historical business practices into modern money makers. It is quite an interesting story, and every one of you could duplicate it if you wanted to. It is about an hour presentation but worth your time and your son’s or daughter’s time if they are having a tough time figuring out how to make a living so they can move out of your basement. Why am I discussing this topic with material handling OEMs, part distributors, and dealers? Because I believe dealer networks in the good old USA will find themselves at that fork in the road sooner rather than later. If you recall, I recently mentioned Ford and its move to sell online direct to customers. They were doing this to stop the gouging taking place concerning their new line of EV Ford 150s. And I said “here we go” with OEMs moving to sell direct. Guess what. AED, working with McKinsey & Company prepared a paper titled THE FUTURE OF SALES AND SERVICE FOR EQUIPMENT DEALERS. McKinsey sent out surveys to dealers regarding this topic and those responding are most concerned about the interest in OEMs in direct-to-consumer sales models. They were also concerned about NEW COMPETITIVE THREATS and THE INVESTMENTS REQUIRED TO ENABLE NEW SALES MODELS. The survey also asked what customers were currently doing and what was expected five years from now. Participants answered that currently 14-25% of new, used, and rental transactions originated online, with an expectation five years from now to be between 36- 48%. A meaningful uptick I would say. In terms of completing the purchase, online the current % is 7-15% with an expectation of 29-36 % five years from now. Back to the fork in the road, because it seems that 57% of the survey participants responded said they made no or minimal progress on building a sales and service model for the future. Which fork will these dealers take? My guess is they will not have a choice. Digitalization is where this is going and you will either have a program to modernize your operation to use the value of data and analytics to build a digitalized, customer-centric business. Or you will find yourself behind the eight-ball with only the option of selling your dealership to your OEM or another dealer selling similar lines. You would think OEMs would be pushing this process, and even funding such a program since having their dealers highly digitalized would be to their own benefit. As you can imagine this will be both a time-consuming and expensive program to develop and initiate. Only certain dealers will have the power to create a working sales and service model. The only way I see this working is for OEMs to lead the charge as is happening in the auto and truck industry where OEMs integrate digital sales programs into existing dealer management software. The other option is for a group of dealers to produce the sales and service platforms for their group. And I have to bring up those Codie Sanchez dealers who will buy today’s dealer and transform it into a dealer of the future, and in the process become a giant in the industry. OEMs…..wake up. 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.
I found a sales answer I’ve been looking at for YEARS
“Hi. How are you today?” I hate that line. When salespeople call up and say, How are you today? it’s a warning sign line. They’re saying, “I don’t really care what or how you’re doing today, I need to start my sales pitch. And this is the way I’m going to start it.” I’ve had a revelation that has been 20 years in the making. I used to have all my leads on a database, like an Excel spreadsheet, and I had different color-coded pins to strike out the ones that were Hot or Not Hot. And then there were the yellow highlighted ones when I made the sale. Then CRM came along. I could never get into it because it was just too cumbersome. For me, it was always a bunch of things that I had to do, that I didn’t really want to do. And the spreadsheet worked just fine. We did use a CRM here at one time for our sales leads, but we needed a consultant to turn it on, literally. NOTE WELL: We have (finally) found a CRM software that actually works, but I’ll get to that in a minute. What I want to talk about is “why I chose not to use it for those 20 years, and how wrong I was.” By blaming the software for not helping me make a sale, it kept me from tracking important details that I felt were important during the sales cycle. I had my notes written on my spreadsheet. No Bueno. But what I found to be true is that a CRM, while it may not teach you to make a sale, it keeps all of the facts and all the details online so that you can make a sale easier. I had everything about their kids’ names and their wife’s name, where they grew up, and other “sales forward” information. NOTE: It’s so much more powerful when you discover things in common- like a college or favorite sports team or a kid’s T-ball league. Relationship information that leads to sales. BACK STORY: People have called our office for years and asked, “Hey, I want to know what CRM you recommend?” And for years, our answer was…none. NONE! None until today, which is kind of crazy. We’re gonna give you the CRM that we’re now using that is rocking our world. But first, let’s talk about, what made this happen. For years, I’ve been teaching using creativity and discovering shared values. My philosophy has always been, “find something personal, do something memorable.” So, when you find something personal, and you DON’T document it, you forget about it. That’s the sales-threatening challenge that you have. The personalized element of selling cannot be denied – or omitted. CRM actually started BEFORE computers with Harvey Mackay – The Mackay 66. In Harvey’s timeless classic “Swim with the Sharks,” he wrote about how important it was to collect 66 important things about every customer. He claimed that when you have these 66 facts, you can’t lose because you know enough to build a relationship, not just make a sale. He combined that with his Rolodex to save the names and numbers of his customers and prospects. Both of those data collection strategies are passe now, but the information is still strategic to making sales. You still have to collect and store that information in order to be perceived as the best sales option. When the customer likes you, believes you and has confidence in you, and trusts you – it’s a fit, and you win. And the right CRM can create that for you. I write down some of the most regular things that people say in passing like, “Tomorrow is my uncle’s birthday.” And then the next time I talk to them, I ask, “Hey, how was your uncle’s birthday?” They don’t even remember the birthday or that they even told me. “Oh, you mentioned you were going to your uncle’s birthday last time we talked.” Then they realize you’re really listening and paying attention because you’re telling them what they told you. And keep in mind that the CRM combines listening with the most powerful form of listening: taking notes. We have now invested in a game-changer CRM, and not just any CRM. Before sharing this information with you and my entire audience, I needed to make sure that this was THE BEST CRM. A sales-making CRM that would put time back on your calendar, make relationship building easier, and money in your bank account. We looked at every CRM that’s out there before deciding on which one would be the best fit. The only one that I recommend is the one we’re using at Buy Gitomer. And that’s Pipedrive. Once we started using it and realized how critical it’s become to our sales, we connected with Pipedrive and asked them to give you a special offer. And they obliged! You can go to the Pipedrive URL but you won’t get what they’re gonna give you at our special link. Go to gitomer.com/crm. That will take you to our special link for Pipedrive. You’ll get an extended free trial, a bigger discount, and you’re gonna be treated like gold. Pipedrive works. It’s mind-blowingly awesome, and did I mention it’s simple? Just move your prospect through the buying stages. You just drag and drop anything. You can have your forms go directly into it. You can set activities and reminders. And they’ve made it so user-friendly, that even I can use it. This is the challenge. You’re only going to know if you try it yourself. Let me know how it works for you – send your notes and thoughts to [email protected]. 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.
Digital Strategy and E-commerce
Over the last six years, I have spoken with many people in our industry about their company’s digital strategy, more specifically e-commerce and selling their products online. With November being the start of the holiday shopping season, especially online shopping, I thought it would be fitting to write about this topic as e-commerce and digital strategies continue to gain momentum in our industry. Digital Strategy There are many elements you must consider when developing a digital strategy for your business. These elements include digital marketing and advertising, customer communication channels, search engine optimization (SEO), and e-commerce. As I noted in last month’s article, the material handling industry is primarily B2B and these customers increasingly expect B2C convenience and customer experience. Therefore, creating such an experience should be the foundation of your digital strategy. Also, be sure to take note of what your competitors are doing. In addition, be mindful of what your suppliers and manufacturers are doing. As you consider these elements of your strategy, you need to determine what the goals of your strategy are. Are you looking to increase sales? Are you looking to target new audiences? Are you looking to improve how you appear on search engines? Determine what is most important and tailor your strategy accordingly. For example, if one of the goals of your digital strategy includes growing the sales of your product portfolio, then your focus and efforts would need to be on the development of an e-commerce site or platform for your customers to purchase your products from you online. If one of the goals of your digital strategy is to increase your brand awareness and customer engagement, then your focus would be on digital marketing through various channels such as social media and email. If you are looking to target new audiences and increase customer leads, your focus should then be on search engine optimization and targeted content marketing. These various elements of your company’s digital strategy need to be considered during the analysis stage of your digital strategy plan. Ecommerce Ecommerce was on an accelerated growth pace, even before the COVID-19 pandemic. As you know, store closures and fear of getting COVID-19 during the pandemic created a major shift in consumer buying behavior, which further accelerated this growth pace. This growth was not just exclusive to things we became accustomed to ordering online like shoes, apparel, and electronics; things like groceries and fast food were now being purchased online by consumers that may not otherwise have purchased online prior to the pandemic. As with everything else, that B2C customer experience and shift of buying behavior to the ease of online transactions is now an expectation of your customers and prospective customers in the B2B world. It is important, now more than ever, to provide customers with the option to purchase your products online. However, you need to be strategic about what you are setting out to accomplish with your e-commerce site. Let us say, for example, that the goal of your e-commerce site is to increase the sales of your products through your parts department. Awesome! Turn on the e-commerce switch and watch the parts department sales grow, sounds simple, right? Not so fast, there are a few things to consider and missteps to avoid as you look to deploy an e-commerce site as part of your digital strategy. One misstep I see that dealerships make when developing their e-commerce site is the lack of automation. Your site should not only be an intuitive and seamless experience for your customers but should also be a seamless transaction for your business. What I mean is that you do not want the transaction to be ‘clunky’ for your staff which creates additional manual steps to process an e-commerce order. Talk with your suppliers, many offer web services integration that allows for real-time pricing, availability, and order submission. Another misstep along those lines is the service level that accompanies the e-commerce experience. Make sure your e-commerce site allows for easy contact with your customer service staff as needed. Therefore, be sure to implement features like chat, a dedicated phone line, and a dedicated email address or online contact submission form. You still need to keep in mind that your service level will set you apart from the competition. Furthermore, a great user experience in this regard may lead to other opportunities for your other products and services such as new equipment, rentals, or service work. Another consideration, which I feel is one of the most important, will your e-commerce site interface with your ERP business system? If you are operating on an older business system, this could potentially create limitations for those looking to interface their site with their system. Talk with your ERP provider; see what resources they have available to assist with integrating your business system and your e-commerce platform. Additionally, consider how you will price your products online. I would recommend exploring a ‘Login’ model. This allows your current and loyal customers to have another avenue to purchase your products but also allows for special, discounted, and volume-based pricing for those customers with a unique login as needed. In addition, will your pricing model be static or dynamic? This is a topic we can explore in future articles. Finally, seek feedback from your existing customers. Identify any potential “pain points” that exist for customers that purchase your products today. You want your e-commerce site to provide them with the ability to self-service and the ability to order your products at their convenience. Having a good e-commerce site will not only help you retain and grow existing loyal customers, but it will also attract new customers and help build your brand. Search Engine Optimization (SEO) Simply stated, search engine optimization, or SEO, is the battle for the top listing on a given search engine page. More importantly, since Google is the market share leader in the search engine space, let us call it the battle on Google search. You can develop
Felling Trailers releases re-engineered Utility Reel “R” Series
The Felling Trailers’ Utility Cable Reel “R” series model lines have undergone design modifications to increase operator safety and ease of use. The most significant update to the model design is the auto-locking reel bar system. The auto-locking reel bar system eliminates the use of pins and brackets; it now utilizes a locking plate system. The new Reel design with the auto-locking system debuted to the Utility/Telecom industry at the 2021 Utility Expo in Louisville, KY. The R series product line offers payload capacities ranging from 1,740 lbs. to 13,520 lbs. All models have the capability to load up to a 120” diameter reel. Enhanced operator and transport safety, the auto-locking reel bar system’s locking plates automatically open when lowering the reel to the ground for unloading. As the reel is loaded and raised, the locking plates automatically close to contain the reel bar. Once the reel is raised to transport position, spring-loaded pins automatically lock the slides into place. When the pins lock, they provide visual validation to the operator that the reel is properly locked for transport. A green marker on the spring-loaded pins is only visible when the reel bar is properly secured. The green indicators can be viewed from the rear-view mirrors of the tow vehicle, making transporting conduit, fiber optic cable, inner duct, and many other reel-mounted materials a safe and secure experience for any operator. The new R series design was released into production in Fall 2022 and will reach full production by the first quarter of 2023. Solid and reliable, Felling’s R series continues to offer a broad selection of options and features to ensure the trailer is built to the spec that utilities/municipalities need for their applications. “These are quality-built trailers that provide the versatility and functionality that utility workers need for transporting, deploying, and retrieving material,” said Felling Trailers Utility & Telecom Product Specialist Mark Rapp.
Plus One Robotics’ Parcel Handling Solutions surpass 500 million picks
Plus One Robotics, the fastest and most reliable parcel-handling robotics platform, performing over one million parcel picks each day in production, has announced that its platform has reached over half a billion parcel picks globally– currently an industry-leading metric. “Our north star will always be to increase our customers’ total picks per day,” said Erik Nieves, Plus One Robotics’ CEO and Founder. “To everyone at Plus One, 500M represents more than just parcels picked, it’s a milestone demonstrating that our clients have come to rely on our tech every day. That’s a half billion parcels that were sorted on time and at quality.” Ecommerce currently accounts for 20% of total retail globally and is expected to hit 30% by 2030. This growth, in combination with ongoing labor shortage issues, makes the implementation of automated solutions a key strategy for shipping and fulfillment companies across the world, with the global warehouse automation market estimated to grow at a CAGR of ~15% from 2022 – 2030. Plus One Robotics’ solutions for parcel induction and depalletization employ 3D sensors and AI-powered software with optimized robot grippers to pick and place disparate parcels within sortation or distribution centers. Key to Plus One Robotics’ effectiveness is its unparalleled human-in-the-loop (HITL) approach. Employees, remote or on-premise, can supervise multiple robots from any location, speeding the robot’s ability to handle exceptions and facilitating machine learning that keeps downtime to a minimum, enabling 24/7 fulfillment.
Alta Equipment Group to acquire Ecoverse Industries creating additional business segment
Establishes Alta’s Master Dealer Equipment Distribution Platform in North America Expands Product Portfolio and Diversifies End Markets with Entrance into Environmental Processing Equipment Ecoverse’s $64.3 million in revenue, $10.0 million in net income, $10.1 million in Adjusted EBITDA, and $9.7 million of Adjusted pre-tax net income on a trailing twelve-month basis is expected to be immediately accretive to the Company’s free cash flow conversion, profitability, and earnings per share ratios. Alta Equipment Group Inc. has announced that it has entered into a definitive agreement to acquire Ecoverse Industries, LTD (“Ecoverse”), a full-line distributor of industry-leading environmental processing equipment headquartered in Avon, Ohio, with 15 sub-dealers throughout North America. “The acquisition of Ecoverse is exciting for our business as it represents our first investment into large-scale equipment distribution, giving us the master dealer rights to distribute best-in-class environmental equipment to dealers and customers throughout North America,” said Ryan Greenawalt, Chief Executive Officer of Alta. “Ecoverse has a long-standing track record in the environmental processing equipment sector as a distributor of high-end equipment which is used in biofuel, composting, and various waste and recycling applications. The Ecoverse acquisition immediately positions Alta as an industry leader in a sector where demand for eco-friendly waste solutions and recycling continues to grow. We welcome Ecoverse to the Alta family.” Strategic and Financial Highlights Exclusive distribution rights to North America for European equipment OEMs, including Doppstadt, Backus, Backers, and Tiger Depackaging products. The increasing size of the equipment field population in North America will provide for future parts and service growth opportunities. Ecoverse generated approximately $64.3 million in revenue, $10.0 million in net income, Adjusted EBITDA of $10.1 million, and $9.7 million of Adjusted pre-tax net income for the trailing twelve-month period through July 2022. Given Ecoverse’s asset-light distribution business model and minimal maintenance capex requirements, the Company expects the acquisition to be highly accretive to the Company’s EBITDA to cash flow conversion and earnings per share ratios. The deal is structured as an asset acquisition allowing for a step-up in tax basis of assets acquired. Additional Transaction Details The purchase price includes $42.5 million in cash, $2.5 million of Alta common stock and a $6.0 million seller note, at close. In addition, the purchase price includes contingent consideration in the form of an earn-out whereby sellers can earn an additional $4.0 million of Alta common stock and $12.0 million of cash over a five-year period subject to future EBITA growth. To the extent EBITA remains flat at July 2022 trailing twelve-month levels throughout the earn-out period, the total purchase price will be $59.0 million ($52.5 million in cash and $6.5 million in stock). Other iterations of the ultimate purchase price range from $51.0 million to $67.0 million based on future EBITA performance. Ecoverse’s brand name, employees, and management team will remain in place post-close. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2022. Including Ecoverse, since the Company’s initial public offering in 2020, Alta has completed 13 acquisitions which have contributed $440.3 million in revenue, and $52.5 million in Adjusted EBITDA. More information on Ecoverse, its products and applications can be found at www.ecoverse.net.
Women In Trucking Association announces Pilot Company as sponsor to help expand access to educational trailer
The Women In Trucking Association (WIT) has announced Pilot Company as its fuel sponsor for the 2022 Driver Ambassador Program. The program focuses on promoting career opportunities for women in the trucking industry, celebrating success stories, and raising awareness for WIT’s mission. An essential feature of the program is WITney, the association’s one-of-a-kind educational trailer. The expo trailer accompanies the Driver Ambassador out on the road, attending schools and industry events. Not only is WITney a traveling billboard for the nonprofit, but hosts an array of educational and interactive components, such as interactive kiosks on trucking 101, common myths, and whether a career in trucking would be the right fit based on personality and lifestyle. Additionally, a custom-made state-of-the-art driver simulator allows attendees to experience truck driving in different scenarios, regions of the country, weather conditions, and more. “Pilot Company’s fuel sponsorship will have a major influence on the expansion of this program,” said Ellen Voie, WIT president and CEO. “The additional resources allow WITney to travel to more locations and events, such as public schools and Girl Scout events. This sponsorship will positively impact diversity in the trucking industry.” “We are honored to support Women In Trucking and the WITney educational trailer,” said Whitney Johnson, Pilot Company chief experience officer. “Through education and celebration of the amazing achievements of women in our industry, we can inspire future generations and encourage more women to get into trucking.”
State Tractor & Equipment joins LiuGong North America Dealer Network
State Tractor & Equipment Co. Inc. is the latest dealership to join the LiuGong dealer lineup. Throughout the process of joining the LiuGong dealer network, State Tractor & Equipment leaders were impressed by the service LiuGong provides. Unlike other heavy equipment manufacturers, they have the infrastructure, inventory, employees, and quality products to ensure their customers are satisfied. Joshua Badder, State Tractor & Equipment sales director, noted they have already sold their first machine. “We are pretty excited to see how this LiuGong machine does out in the field,” he said. “We look forward to strengthening our partnership and seeing what the future holds.” State Tractor & Equipment is family owned and operated by Cliff Dale and his two sons. It has one location currently in Kansas City, Kansas, with a second store coming in Springfield, Missouri. The grand opening was slated for Oct. 6. Company leaders also hope to expand to Oklahoma in the future. State Tractor & Equipment has a background in railroad service, heavy haul trucking, and added sales to its offerings in 2015. Securing LiuGong products will be integral to expanding that side of the business. “We are really good on the shop aspect of the business, and on the sales side too,” Badder said. LiuGong North America President Andrew Ryan welcomed State Tractor & Equipment to the dealer network and said the partnership will bolster its footprint in the region. “We are thankful to add another great partner in State Tractor & Equipment to our LiuGong dealer network,” Ryan said. “Their presence in the Midwest helps us continue our development and growth strategy in North America.” State Tractor & Equipment offers machinery for construction, vegetation management, demolitions, scrap, and recycling applications.
Port of Long Beach sees softened cargo volumes in September
Diminishing consumer demand, full warehouses, and inflation concerns led to a decline in cargo containers moved through the Port of Long Beach in September. Dockworkers and terminal operators moved 741,823 twenty-foot equivalent units (TEUs) of cargo containers last month, down 0.9% from September 2021. Imports decreased 7.4% to 342,671 TEUs, while exports increased 1.9% to 112,940 TEUs. Empty containers moved through the Port rose 7% to 286,212 TEUs. “Consumers and retailers are concerned about inflation, leading to warehouses filled with inventory and fewer product orders from Asia,” said Port of Long Beach Executive Director Mario Cordero. “The respite is leading to increased capacity on the docks and fewer ships waiting off the coast to enter the Port.” “We appreciate our longshore labor, marine terminal operators, truckers and all of our other industry partners who continue to move cargo quickly, reliably, and sustainably,” said Long Beach Harbor Commission President Sharon L. Weissman. “We’re hoping to close the year on a positive note that focuses on our efforts to improve cargo flow while dramatically enhancing air quality.” Consumers are growing more cautious with spending as the economy faces persistent inflation and aggressive tightening by the Federal Reserve. The Port of Long Beach has moved 7,342,383 TEUs during the first nine months of 2022, up 3.5% from the same period in 2021. Additionally, the Port processed 2,334,605 TEUs between July 1 and Sept. 30, down 0.3% from the third quarter of 2021. For complete cargo numbers, visit polb.com/statistics.