EP 303: Instawork
In this week’s episode, we discuss the state of the warehousing labor market with Daniel Altman, Chief Economist at Instawork. Instawork provides a flexible solution for employers and employees by connecting in-person hourly workers with businesses across the US and Canada. While working across many industries, transportation, warehousing, and logistics are significant for Instawork, especially since the pandemic. Daniel and I discuss the current state of staffing in the warehouse industry and the growing trends among employees and employers. Key Takeaways In the past, warehouses have been cautious in how they approach filling specific roles. The lack of available labor and competition have forced many businesses to get creative when it comes to hiring and seek a more flexible approach. While Instawork offers both 1099 and W2 employee services, Daniel believes the pressure of the labor market is allowing many businesses to see 1099 employees as a viable option. This is giving the opportunity for a test run with employees and employers. Daniel discusses how labor participation declined over the pandemic and how many workers have not returned to the workforce. He also shares what he feels are the three most essential factors in getting people back into the workforce. Daniel provides insights on how long staffing challenges and high wages will continue, as well as his thoughts on how automation will play a role in the future of the workforce. Listen to the episode below and leave your thoughts in the comments. The New Warehouse Podcast EP 303: Instawork
U.S. Rail Traffic for July and the week ending July 30, 2022
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending July 30, 2022, as well as volumes for July 2022. U.S. railroads originated 906,903 carloads in July 2022, up 0.2 percent, or 2,213 carloads, from July 2021. U.S. railroads also originated 1,033,906 containers and trailers in July 2022, down 3 percent, or 32,094 units, from the same month last year. Combined U.S. carload and intermodal originations in July 2022 were 1,940,809, down 1.5 percent, or 29,881 carloads and intermodal units from July 2021. In July 2022, 10 of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with July 2021. These included: coal, up 5,588 carloads or 2.2 percent; crushed stone, sand & gravel, up 5,197 carloads or 6.7 percent; and motor vehicles & parts, up 3,726 carloads or 8.2 percent. Commodities that saw declines in July 2022 from July 2021 included: primary metal products, down 7,065 carloads or 19.2 percent; all other carloads, down 3,311 carloads or 15.1 percent; and stone, clay & glass products, down 2,202 carloads or 6.7 percent. “Rail traffic in July was evenly balanced between commodities with carload gains and those with carload declines,” said AAR Senior Vice President John T. Gray. “As such, it does not provide definitive evidence regarding the state of the overall economy. In that respect, it is very similar to most other recent economic indicators.” Excluding coal, carloads were down 3,375 carloads, or 0.5 percent, in July 2022 from July 2021. Excluding coal and grain, carloads were down 4,356 carloads, or 0.8 percent. Total U.S. carload traffic for the first seven months of 2022 was 6,900,820 carloads, down 0.1 percent, or 6,610 carloads, from the same period last year; and 7,912,632 intermodal units, down 5.8 percent, or 485,376 containers and trailers, from last year. Total combined U.S. traffic for the first 30 weeks of 2022 was 14,813,452 carloads and intermodal units, a decrease of 3.2 percent compared to last year. Week ending July 30, 2022 Total U.S. weekly rail traffic was 505,409 carloads and intermodal units, up 0.6 percent compared with the same week last year. Total carloads for the week ending July 30 were 237,079 carloads, up 3.6 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 268,330 containers and trailers, down 1.9 percent compared to 2021. Six of the 10 carload commodity groups posted an increase compared with the same week in 2021. They included coal, up 5,728 carloads, to 68,617; grain, up 3,336 carloads, to 21,566; and farm products excl. grain, and food, up 1,376 carloads, to 16,298. Commodity groups that posted decreases compared with the same week in 2021 included metallic ores and metals, down 1,700 carloads, to 22,952; miscellaneous carloads, down 1,237 carloads, to 8,808; and petroleum and petroleum products, down 542 carloads, to 9,744. North American rail volume for the week ending July 30, 2022, on 12 reporting U.S., Canadian and Mexican railroads totaled 333,060 carloads, up 1.9 percent compared with the same week last year, and 358,418 intermodal units, down 0.6 percent compared with last year. Total combined weekly rail traffic in North America was 691,478 carloads and intermodal units, up 0.6 percent. North American rail volume for the first 30 weeks of 2022 was 20,224,823 carloads and intermodal units, down 3.1 percent compared with 2021. Canadian railroads reported 73,313 carloads for the week, down 3 percent, and 74,204 intermodal units, up 6.2 percent compared with the same week in 2021. For the first 30 weeks of 2022, Canadian railroads reported a cumulative rail traffic volume of 4,299,143 carloads, containers, and trailers, down 3.7 percent. Mexican railroads reported 22,668 carloads for the week, up 0.7 percent compared with the same week last year, and 15,884 intermodal units, down 7.1 percent. Cumulative volume on Mexican railroads for the first 30 weeks of 2022 was 1,112,228 carloads and intermodal containers and trailers, up 0.3 percent from the same point last year. For the weekly rail traffic charts, click here.
Numina Group continues double digit growth trajectory in 2022 in response to continuing high demand for warehouse automation solutions
Numina Group’s key services, design engineering, and software-driven warehouse automation integration remain in high demand as manufacturers and distribution operations seek to increase their efficiency and reduce their reliance on manual labor. To meet growing demand, Numina Group has increased its workforce by 34% in the first half of 2022. Numina Group’s focus is on designing automation and process improvement solutions that reduce warehouse labor costs and increase productivity and business profitability. Small, mid-size, and large businesses all have the same business operational goals in common – reduction in manual labor and improvements in accuracy and performance in pick, pack, and ship are critical to their success. As an independent systems integrator and software development firm with a proven 35-year track record, focused on lean processes that optimize operations for manufacturing and distribution operations, Numina Group is perfectly poised to provide businesses with the assistance they need. Top industry and technical talent joins the Numina Team New hires at Numina Group include several director-level senior managers to bring additional executive leadership and industry experience to the firm. They have also added additional software engineers, mechanical and electrical engineers, project managers, technicians, and customer support managers. Kevin Walsh joins Numina Group as the Director of Engineered Solutions. Kevin enjoyed a long career at UPS working both as a senior industrial engineering manager and as a facility operations manager. Kevin also worked in the 3PL industry as the Senior Manager of Technology, Engineering, and Systems at DSC Logistics, recently acquired as part of CJ Logistics, an international 3PL firm. “It is exciting to join an established design and automation firm with a great reputation for innovation,” he said. “I’ve worked both operation management and systems engineering roles from the customer’s side, so I enjoy the data-driven approach to design with Numina.” He added “I find it rewarding to draw from my 30+ years of experience to contribute to the firm’s growth and continuous quality improvement goals. Everyone on my team embraces Numina’s objective of providing warehouse automation solutions that exceed our customers’ business and ROI goals.” Jeff Vinkler is joining Numina Group as the Director of Software Engineering. Jeff has extensive experience leading software engineering and development teams responsible for designing, developing, and implementing complex solutions, including over 10 years at Accenture. He will lead the software delivery and customer service support teams at Numina. Jeff will focus on leadership, team building, communication, and comprehensive project management to help scale the organization to support its current and future growth. Jeff stated, “I’m very happy to be part of Numina’s organization, and am looking forward to helping deliver quality products for our customers. I’m thrilled that my 28 years of experience in software engineering delivery on both sides of the client/vendor relationship can help Numina continue its growth trajectory.”
TAB Wrapper Tornado wraps finished products, unfinished parts without boxes
The TAB Wrapper Tornado from orbital wrapper manufacturer TAB Industries, LLC, Reading, Pa., allows metal parts and products with sharp corner joints to be secured to pallets and safely delivered using stretch wrap alone. Wrapping multiple layers of stretch wrap 360 degrees around and under the pallet and the load, the TAB Wrapper Tornado creates a stable, unitized load that eliminates the need for boxes, crates, banding, and other secondary packaging along with the need for dunnage or cushioning. Packaging material waste is reduced while the load shifting and packaging failures in transit responsible for most freight damage claims are eliminated. Suitable for transporting finished machinery and equipment, rectangular cut tubing, and a variety of unfinished metal parts without the risk of tearing the stretch wrap, the TAB Wrapper Tornado orbital wrapping machines are available in semi-automated and automated models with 100-inch, 80-inch, and 40-inch wrapping ring diameters as standard to accommodate 60” x 60”, 48” x 48” and 24” x 24” pallets respectively. The stretch wrapping machines are designed and manufactured at the company’s Reading, Pa. headquarters and delivered ready for operation with a warranty.
Legacy Tension Fabric Buildings feature structural steel frame
Combining rigid-frame engineering with the proven benefits of tension fabric membranes, Legacy Building Solutions offers superior quality fabric structures that are fully customizable. This design concept provides a high level of flexibility for a wide array of applications and industries, including commercial and industrial warehousing, cold storage facilities, equipment and bulk material storage, and many more. Legacy fabric buildings utilize a durable rigid frame in place of the hollow-tube, open web truss “hoop” framing traditionally used for fabric structures. The strength of the structural steel frame provides several engineering advantages, most notably the ability to easily customize buildings to the exact width, length, and height required. In addition to long clear spans, the buildings have straight sidewalls that maximize the useable square footage inside the structure. The design allows for much more structural flexibility than traditional fabric structures, including the ability to add lean-tos, mezzanines, sidewall doors, and more. The structures are also engineered to provide desired overhangs or handle additional loads for items such as sprinklers and conveyors. Unlike hollow tube steel, Legacy’s solid structural steel I-beams are not vulnerable to unseen corrosion originating inside a tube. Additionally, there are multiple coating options available for all steel components, including epoxy paint, hot dip galvanizing, primer, and powder coat paint. Legacy buildings feature high-quality fabric roofs that eliminate the corrosion concerns associated with metal-constructed facilities. A variety of fabrics are available, including 27-ounce ExxoTec™Elite and 19-ounce ExxoTec Pro, both of which are premium PVC fabrics with superior strength and performance characteristics. The durable fabric allows natural light to permeate the structure during daytime hours, while insulation and liners can be added to meet energy codes or satisfy customer specifications. Installation is up to three times faster than with conventional buildings, and the design can be adjusted for stationary or portable applications. Sidewalls can be customized and built with any desired material — including steel, concrete, or stone — and then easily lined with fabric to prevent corrosion to the interior, or to create a seamless look for occupied buildings. Legacy steel components and fabric covers are backed by a comprehensive warranty.
Duravant welcomes new Senior VP and General Counsel
Duravant welcomes Chad E. Walker to the position of Senior Vice President and General Counsel. In this role, Walker will drive Duravant’s global legal strategy, deploy processes to ensure legal compliance, and work with the organization’s leadership teams to propose and drive initiatives to propel the Company forward. Among his initial priorities, Walker will work to develop a more structured framework for advancing Environmental, Social, and Governance (ESG) initiatives across the Company. He will also serve as Secretary for the Board of Directors and Chief Compliance Officer. “As our business has grown in size and complexity, it is necessary to add this critical role to our Executive Leadership Team. Chad’s broad experience in corporate law makes him ideally suited to drive compliance, new initiatives, and focus on strategy across the Duravant family,” said Mike Kachmer, president, and CEO of Duravant. Walker brings over 20 years of diverse legal experience from both private and public companies. Most recently, he was the General Counsel, Corporate Secretary, and Chief Compliance Officer for Morton Salt, Inc., the North American leader in the production of salt for culinary, household, food processing, chemical, pharmaceutical, and numerous other industrial uses. “I am thrilled to be joining Duravant and leading its legal strategy. I look forward to working with all our operating companies that are leading engineered equipment providers in the food processing, packaging, and material handling markets,” said Walker. “The opportunity to build a global ESG program and oversee corporate compliance for Duravant as the organization is rapidly growing and expanding in new and emerging markets is particularly exciting.” Prior to his role at Morton Salt, Walker was Assistant U.S. General Counsel for McDonald’s Corporation, one of the world’s leading food service brands. Walker’s previous experience also includes time as the Deputy General Counsel for the State of Illinois Department of Central Management Services, and as an attorney for Saul Ewing Arnstein & Lehr (formerly Arnstein & Lehr) and subsequently Michael Best & Friedrich LLC. Walker holds a Bachelor of Science degree in Business Administration from the University of Louisville in Louisville, KY, and a JD from the University of Wisconsin Law School in Madison, WI. He will be based in the Duravant corporate office in Downers Grove, IL.
Motion promotes Solomon to Senior VP-Corporate Accounts
Motion Industries, Inc., a distributor of maintenance, repair, and operation replacement parts, and a premier provider of industrial technology solutions, is pleased to announce that Lisa Solomon has been promoted to Senior Vice President – Corporate Accounts. Ms. Solomon joined the Company in 2015 as a Business Development Manager focused on an automotive industry account, before transitioning the same year into an Automotive Specialist role concentrating on a different automotive account. In 2016, she expanded her role to a Corporate Accounts Manager overseeing the entire automotive segment. In 2021, Ms. Solomon was promoted to Area Vice President – Corporate Accounts, leading a team of 16 sales professionals in the Central Group. In her new role, Ms. Solomon will lead all of Motion’s Corporate Accounts in North America, plus other Company teams, including the Corporate Accounts Support group, Corporate Accounts Development, P2 MRO, Onsite Solutions, Energy Services, and International Sales. She will report directly to James Howe, Executive Vice President – eCommerce, Sales Excellence, Strategic Pricing, and Corporate Accounts. “Lisa has been very successful in the Area Vice President role and has emerged as a peer leader for our AVPs across North America,” said Mr. Howe. “Her leadership and significant experience will further strengthen Corporate Accounts and maximize growth potential. She is well-deserving of her new and expanded position.” Motion’s President, Randy Breaux, said, “Lisa is a talented executive with a wealth of experience and drive. We’re excited to see her lead Motion’s Corporate Accounts to new heights.” Originally from Michigan, Ms. Solomon graduated from Central Michigan University with a Bachelor of Liberal Arts in Broadcasting, Communications and Marketing.
H&E opens new West San Antonio branch
Effective August 1, 2022, H&E Equipment Services Inc. (H&E) announces the opening of its West San Antonio rental branch, its third facility in the metropolitan area, and the 21st in the state of Texas. The branch is located at 402 Callaghan Road, San Antonio, TX 78228, phone 210-229-7900. It includes a fully fenced yard area, offices, and a separate repair shop and is capable of handling a variety of construction and general industrial equipment for customers on the western side of the metro San Antonio area. “H&E has done business in Texas since our inception and has operated in San Antonio for over 25 years. We’re no stranger to the area or market here. In working with our existing branch on the eastern side of the city and in nearby Schertz, we are able to offer our customers even greater efficiency and responsiveness when they need rental equipment,” says Branch Manager Paul Flores. “The construction market is forecast to be strong. We have one of the youngest fleets in the industry represented by some of the best names in the business, so we are poised and ready to supply the rental equipment needed for those projects.” The West San Antonio branch specializes in the rental of aerial lifts, telescopic forklifts, earthmoving machinery, compaction equipment, generators, compressors, and more and represents the following manufacturers: Allmand, Atlas Copco, Bomag, Case, Club Car, Cushman, Doosan, Gehl, Generac Mobile, Genie, Hilti, Husqvarna, JCB, JLG, John Deere, Kubota, LayMor, Ledwell, Lincoln Electric, Link-Belt Excavators, MEC, Miller, Multiquip, Polaris, Skyjack, SkyTrak, Sullair, Sullivan-Palatek, TAG, Taylor, Towmaster Trailers, Wacker Neuson, Yanmar, and others.
Nominations open for Women In Trucking Technology Innovation Award
The Women In Trucking Association (WIT) has announced that it is seeking nominations for its inaugural Technology Innovation award for WIT members, which is sponsored by Clean Harbors. The newly created award recognizes innovation, vision, and technical achievements that support and advance the trucking industry. Nominations are open to any WIT member who has: Contributed innovative technical or mechanical solutions, ideas, practices, or innovations in the management and maintenance of the commercial motor vehicle industry. Promoted the advancement of women in the trucking industry. Earned the respect of their peers and clearly demonstrated industry leadership and applicability of trucking products and technologies that support the transportation industry. “We’ve seen some amazing innovation in the industry to help our drivers become more efficient, safer, and productive,” said Ellen Voie, WIT president and CEO. “This award will highlight some products or services that help us advance our mission to remove obstacles as well as celebrate success!” Nominations will be accepted through September 28 at https://witawards.secure-platform.com/site. The winner will be announced at the WIT Accelerate! Conference & Expo held in Dallas, Texas, November 13-16, 2022. The award is sponsored by Clean Harbors, the nation’s leading provider of environmental and industrial services. “As a leader of safety, innovation, and technology, we’re excited to sponsor this award in conjunction with WIT,” said Michelle DeStefano, senior director of Culture and Engagement at Clean Harbors. “This is an excellent way for us to celebrate the contributions of those in trucking who are at the forefront of making positive impacts throughout the industry.”
Eastey relocates production operations to a new facility in Big Lake Minnesota
Eastey, a manufacturer of shrink packaging equipment, automated case erectors, tapers, and material handling solutions, announced it has relocated its manufacturing operation to a larger building in Big Lake, MN. The building will be the new home for Eastey sealer and tunnel production operation, including metal fabrication, welding, paint, assembly, product testing, and more. The 50,000 square foot building includes over 42,000 sq. ft. of production space, an expansive product demo area, several offices, and meeting space. “The expanded space will help improve and streamline our production and manufacturing processes and help us deliver our products more efficiently,” said David Mylrea, president of Engage Technologies, the parent company of Eastey. “We continue to experience growth and demand for Eastey products. The relocation enables us to support our customers’ need for high-quality products at a fair price. It also provides our employees the benefits of a safe, world-class working environment.” Eastey, Squid Ink, and American Film & Machinery (AFM) are all divisions of Engage Technologies Corporation. Eastey is a manufacturer of heavy-duty shrink packaging equipment and automated case sealing systems for packaging applications. Squid Ink manufactures coding and marking systems for product identification and traceability, providing superior quality inks and low-maintenance printing equipment. American Film & Machinery supplies shrink labelers and tunnels, shrink sleeves, and tamper bands. Engage Technologies Corporation is headquartered in Brooklyn Park, MN, with facilities in Big Lake, MN, Spring Lake Park, MN, The Hague, Netherlands, and Shanghai, China. The Company continues to expand sales and services, with authorized distributors strategically located throughout the U.S. and the rest of the world.
Terex MP acquires ProAll, Canada’s leading producer of Volumetric Mixers for concrete
Terex Materials Processing (MP), a global manufacturer in aggregate, environmental, concrete, lifting, and handling machinery, has announced the acquisition of the Canadian company ProAll, a specialist producer of mobile volumetric concrete mixers. ProAll’s volumetric mixers provide make-to-order, mobile concrete delivery that eliminates concerns over delivery time between a concrete plant and a job site by delivering ingredients that are mixed locally and to the exact specifications of each job. The addition of these products will enable Terex to expand its presence in US concrete markets, where ProAll joins Terex Advance, the US industry leader in front discharge mixer trucks, and Terex Bid-Well, the US leader in roller pavers for bridge and canal work, as businesses in the MP portfolio. ProAll also sells to non-US markets, adding a new dimension to the current portfolio and creating significant new opportunities for international growth. Kieran Hegarty, president of Terex Materials Processing commented: “ProAll will provide us with exciting prospects to expand into new markets and grow our presence in concrete. We look forward to embarking on this journey together with our new colleagues in Alberta and Texas.”
Women In Trucking Association announces its August 2022 Member of the Month
The Women In Trucking Association (WIT) has announced Maria Rodriguez as its August 2022 Member of the Month. Maria is a professional driver for NFI Industries. As a longtime restaurant worker laid off due to the COVID-19 pandemic, Maria was seeking stable employment when her boyfriend, who was also pursuing a career in transportation, convinced her to try trucking school. Being a mother of a 4-year-old son, she needed a job to provide for her family while being close to home. She attended the New England Tractor Trailer Training School (NETTTS) and knew it was the right career path. During her time at NETTTS, NFI’s core family values and local routes stood out to her, and she was offered a driver trainee opportunity. With a consistent schedule, she appreciates being able to be home before her son finishes school. “I think I’m unique because I’m a mother and I am still able to go to work as a truck driver. It’s very rewarding to have a stable income and be able to come home to my son,” she said. Additionally, Maria is a trainee in the Biden administration’s Trucking Action Plan’s extended 90-Day Trucking Apprenticeship Challenge, which is focused on attracting and retaining talent within the transportation industry. Earlier this year, she was chosen to participate in a special White House event for the program, allowing her to make a speech about her journey to truck driving and then introduce the President of the United States, Joe Biden. The attendees of this event included freight executives, WIT President and CEO Ellen Voie, truck drivers, and senior officials. As a first-generation immigrant from Venezuela, Maria is proud to be an advocate and uses her voice to encourage other minorities, including other females and Latinas, to pursue a career in the transportation industry. “Women are capable of getting into trucking, they just need to take the first step and enroll,” Maria says. “There are plenty of opportunities where you can go over the road or if you’re a mother like myself, there are local routes where you are home daily.”
EP 302: Yard Management Solutions at MODEX 2022
In this week’s episode of The New Warehouse, we are talking about an often overlooked aspect of warehousing, yard management with the Yard Management Solutions team. A long-time friend of the podcast, Colin Mansfield, Director of Sales and Marketing, and a new podcast friend, Keegan Adams, Business Development Manager both work for Yard Management Solutions (YMS). YMS specializes in removing inefficiencies and manual processes associated with Yard Management. We discuss innovations and how YMS solves one of the most difficult challenges in warehouses today. Key Takeaways Having won the innovation award twice and now a finalist for the fifth time (MODEX and ProMat), YMS is no stranger to innovation. This year’s entry is YMS connect, a solution that provides visibility over material flow by bringing many different systems (WMS, TMS, IoT trackers, etc,) together. The idea for YMS connect came from a customer who asked for a way to see information from all of their different systems in one place. Understanding that many customers are experiencing the same challenges, YMS version 2, launched in January of this year, takes integration to a new level. The new system’s framework and flexibility open up many more possibilities for solving customer challenges, such as integrating with legacy systems. Customers aren’t just an excellent source for innovation. YMS believes its customers are some of its best salespeople because they help spread the word about how much easier yard management can be. We discuss the process-driven YMS system that is easy to use and visually appealing and makes it simple for employees to report what they are doing and update the system accordingly. The New Warehouse Podcast EP 302: Yard Management Solutions at MODEX 2022
Texwrap debuting the new Kayat SRX Series Single Roll Bundler at PACK EXPO 2022
Create shrink bundled packages with a single roll platform with printed or clear film; SRX uses a bottom overlap seal technology for a strong seal and improved product presentation Texwrap and Bartelt, both part of the ProMach family of brands, have joined forces to introduce the next generation of single roll bundling systems, the Kayat SRX Series. The SRX Series gives customers the much sought-after packaging equipment for shrink bundling pre-formed trays of product with the option to add graphics with print registered shrink film. This new machine will be demonstrating its capabilities in Texwrap’s booth N-5346 at PACK EXPO, 2022, October. 23-26, at McCormick Place in Chicago. The SRX Series provides several engineering upgrades for customers looking for a single roll bundler platform to handle a wide variety of packaged food and beverage products. The SRX Series creates shrink bundled packages with bullseye closures, using a bottom overlap seal technology for a strong seal and better product presentation. The Kayat SRX Series is the collaboration of Texwrap’s expertise in shrink wrapping, and the legacy that Kayat machines have held in the industry. “The SRX Series is built upon the iconic Kayat shrink bundling machine platform. We took the strengths that attributed to its market success, listened to loyal customer feedback, and went to work incorporating Texwrap innovation and technological upgrades to make the next generation Kayat SRX Series,” said Ingermar d’Agrella, Texwrap’s Director of Engineering. Features and benefits of the new Kayat SRX Series include: Toolless adjustable wrap bar assembly: able to adjust machine for package height with no change parts Easy access film feed and cut: slide out the film feed and cut mechanism for easy maintenance Superior film sealing and control: wrap-bar mechanism and integrated heat tunnel ensure reliability and high performance Adjustable tunnel side and bottom air: easily adjust the side and bottom airflow to create the most appealing appearance on the end product Dual roll film mandrels: minimize changeover time and reduce packaging equipment downtime Plan to visit Texwrap in booth N–5346 at PACK EXPO 2022 to see how the new Kayat SRX Series can help you increase productivity in your food and beverage packaging applications.
Factory automation partner Industrial Control strengthens Kassow Robots’ Solutions and Education Platform
Kassow Robots, a developer of 7-axis cobots for machine tending, material handling, and related applications, has partnered with Industrial Control (Zeeland, Michigan, USA), a factory automation distribution specialist. Many applications in manufacturing still require a human touch. The combination of Kassow Robots’ KR series of 7-axis cobots and Industrial Control’s solutions allows humans and robots to work together to efficiently complete repetitive tasks and those that require the highest accuracy, such as quality assurance. “Industrial Control is a perfect partner for intelligent robotic solutions,” says Dieter Pletscher, the head of global sales at Kassow Robots. “To ensure success, their team utilizes the combined expertise of engineers, factory support, and partners like us to provide automation solutions, products, and training.” Finding skilled workers has become increasingly difficult. This partnership can advance automation manufacturing and help close the skills gap by providing engineers, technicians, and operators valuable experience through Industrial Control’s training and Kassow Robots’ flexible and easy-to-use software programming. “Adding Kassow Robots’ lightweight cobots to our portfolio offers terrific opportunities for our customers,” says Mark Ermatinger, CEO of Industrial Control. “The cobots are easy to use and quick to integrate for manufacturing operations in the medical, semiconductor, and electronics industries. The KR series’ payload, reach, speed and ability to work safely with humans can help increase automation adoption at both small- and medium-sized companies.” The 7-axis cobots provide a reach of about 3–6 feet (850–1800 mm) and payloads around 11–40 pounds (5–18 kg) to automate a variety of tasks. The 7th axis enables continuous dispensing, welding, and material removal applications regardless of access angle, without the need to reorient the arm. Meet Kassow Robots (Booth 926) and Industrial Control (Booths 700 and 712) at the Advanced Manufacturing Expo, August 11–12 in Grand Rapids, MI.
H&E Equipment Services reports second quarter 2022 results
H&E Equipment Services, Inc., (“H&E”, the “Company”) has announced results for the second quarter ended June 30, 2022, including records for rental revenue and gross profit, consolidated gross profit and margin, and earnings before interest, taxes depreciation, and amortization (“EBITDA”) margin. On October 1, 2021, the Company sold its crane business, (the “Crane Sale”). All results and comparisons for the periods reported are presented on a continuing operations basis with the Crane Sale reported as discontinued operations in certain statements and schedules accompanying this report. SECOND QUARTER 2022 SUMMARY Revenues increased 10.9% to $294.7 million compared to $265.7 million in the second quarter of 2021. Net income was $27.9 million compared to $12.3 million in the second quarter of 2021. The effective income tax rate was 26.8% compared to 28.2% in the second quarter of 2021. Adjusted EBITDA totaled $121.9 million, an increase of 28.8% compared to $94.6 million in the second quarter of 2021, resulting in a margin of 41.4% of revenues compared to 35.6% in the second quarter of 2021. Total equipment rental revenues were $227.6 million, an increase of $52.0 million, or 29.6%, compared to $175.6 million in the second quarter of 2021. Rental revenues were $201.2 million, an increase of $44.0 million, or 28.0%, compared to $157.2 million in the second quarter of 2021. Used equipment sales decreased 47.4% to $18.8 million compared to $35.8 million in the second quarter of 2021. Margins improved to 47.6% compared to 36.7% in the second quarter of 2021. New equipment sales totaled $21.5 million, a decrease of 22.2% when compared to $27.6 million in the second quarter of 2021. The gross margin improved to 44.9% compared to 37.6% in the second quarter of 2021. Total equipment rental gross margins were 48.6% compared to 41.7% in the second quarter of 2021. Rental gross margins were 53.7% compared to 46.6% over the same period of comparison. Average time utilization (based on original equipment cost) was 73.2% compared to 68.7% in the second quarter of 2021. The Company’s rental fleet, based on the original acquisition cost, closed the second quarter of 2022 at just over $2.0 billion, an increase of $228.2 million, or 12.8%, compared to the second quarter of 2021. Average rental rates increased 9.4% when compared to the second quarter of 2021, and 3.5% when compared to the first quarter of 2022. Dollar utilization improved to 40.9% compared to 35.9% in the second quarter of 2021. The average rental fleet age on June 30, 2022, was 41.2 months compared to an industry average age of 53.6 months. Paid regular quarterly cash dividend of $0.275 per share of common stock. “Our excellent second quarter financial performance showed the continuation of robust fundamental activity across our industry and significant progress toward our 2022 growth initiatives,” noted Brad Barber, Chief Executive Officer of H&E Equipment Services, Inc. Mr. Barber continued, “Rental revenues were 28.0% better than the same quarter in 2021 and improved 13.6% on a sequential quarterly basis. This strong growth led to further appreciation in our rental gross margin, to 53.7%, or 380 basis points ahead of the previous quarter in 2022. This improvement in financial metrics was driven by enhanced contribution from both rental rates and utilization. Rental rates closed the quarter at an impressive 9.4% better than the year-ago quarter and showed a 3.5% gain over the first quarter of 2022. In addition, with high demand for our rental fleet, average physical utilization closed the quarter at 73.2%, or 450 and 280 basis points better when compared to the second quarter of 2021 and the previous quarter in 2022, respectively. We also grew our fleet, closing the quarter with a fleet original equipment cost (“OEC”) of just over $2.0 billion, representing a record level for H&E. These results included a gross investment of $215.6 million since the close of 2021. Finally, the combination of excellent industry conditions and strong operational and strategic execution contributed to a record Adjusted EBITDA in the quarter of $121.9 million, while our Adjusted EBITDA margin improved to 41.4%, or 580 basis points better than the same quarter in 2021 and 340 basis points ahead on a sequential quarterly basis.” Commenting on current business conditions for the equipment rental industry, Mr. Barber stated, “Non-residential construction opportunities are plentiful across our regions of operation with no visible trends that suggest construction project delays or cancellations. Demand for our rental fleet remains strong, and current customer feedback suggests favorable conditions should persist as we address the seasonal strength of our business cycle. Also, it is encouraging to see key leading indicators of construction activity remaining at levels that support expansion. Under the prevailing business conditions, healthy utilization levels should continue for the balance of the year with additional improvement in rental rates expected.” Mr. Barber closed with an update on the Company’s 2022 strategic growth initiatives, saying, “In a business environment characterized by exceptional equipment demand, supply chain disruptions remain an inconvenient but temporary reality of our industry and continue to hinder the timely delivery of a portion of our equipment orders. Due to the inability of certain manufacturing partners to meet their commitments to our fleet investment for the year, we will reduce our planned capital expenditures by continuing to slow our fleet sales over the balance of 2022. Following this action, which is expected to result in a revised gross fleet expenditure of approximately $465 million to $500 million, we anticipate no change in our year-end OEC when compared to our initial internal expectation for the year. With regards to our branch expansion initiative, we remain confident in achieving our goal of no fewer than 10 additions in 2022. Four new branches were added through the first six months of the year, including our latest operation in Lakeland, Florida, which represents our ninth location in the state.” FINANCIAL DISCUSSION FOR SECOND QUARTER 2022 Revenue Total revenues improved to $294.7 million, or 10.9%, in the second quarter of 2022 from $265.7 million in the second quarter of 2021. Total equipment rental revenues of $227.6 million improved 29.6% compared to $175.6 million in the second quarter of 2021. Rental revenues of $201.2 million increased 28.0% compared to $157.2 million in the second quarter of 2021. Used equipment sales of $18.8 million decreased 47.4% compared
Despite difficult conditions, the KION Group achieves good order intake and revenue in the first half of the year
Continued high demand despite macroeconomic uncertainties Compared to the previous year, order intake increases by 13.1 percent to € 6.655 billion Order book increases by 19.3 percent to € 7.941 billion compared with the end of 2021 Revenue up by 11.4 percent to € 5.537 billion compared to the previous year At € 311.7 million, adjusted EBIT is significantly lower than the previous year (€ 462.2 million) due to disruptions in supply chains and higher costs of material, energy, and logistics Adjusted EBIT margin down to 5.6 percent (previous year: 9.3 percent) Net income at € 159.8 million, down from the previous year (€ 291.2 million) Free cash flow of € -591.5 million significantly below the previous year’s level (€ 301.5 million) KION Group intends to issue an outlook for 2022 later in the year KION GROUP AG closed the first half of the 2022 financial year with good order intake and revenue. However, the operating result of the intralogistics group was impacted in the first six months of this year by the sharp rise in material, energy and logistics costs and the ongoing disruptions in supply chains. In addition, there have been more Covid lockdowns, which affected the Asian region in particular. The war in Ukraine also further exacerbated the situation in the second quarter of 2022. The KION Group has already completely halted all product deliveries to Russia and Belarus in both operating segments in the first quarter, including the supply of spare parts and related services. “In order to actively counter the current challenges – especially supply bottlenecks and increased material, energy, and logistics costs – and to sustainably strengthen the resilience of our business, we have taken numerous substantial measures in both operating segments,” says Rob Smith, Chief Executive Officer of KION GROUP AG. “These include strengthening our supplier network, dynamic pricing, extending leases to ensure the continued availability of industrial trucks for our customers, and even more flexible production processes at our plants.” In the first half of 2022, KION Group’s order intake rose by 13.1 percent to € 6.655 billion (previous year: € 5.882 billion). This level of momentum continued in the second quarter—not least due to the continuation of strong growth trends in the intralogistics industry (online trade, urbanization, demographic change, and increasing customer requirements in terms of delivery speeds). Currency effects had a positive impact of € 179.2 million on the value of orders received at the KION Group. The order backlog increased further in the second quarter and amounted to € 7.941 billion at the mid-year mark (end of 2021: € 6.658 billion). As well as the high volume of new orders, crucial factors here included the significantly longer delivery times for industrial trucks in the Industrial Trucks & Services segment. At € 5.537 billion, the Group’s revenue was 11.4 percent higher than in mid-2021 (€ 4.968 billion). As in the previous quarter, the increase in revenue still resulted largely from the order book of the previous year and positive development within the service business. Overall, compared to the previous year, the proportion of the Group’s revenue coming from services increased to 40.5 percent (previous year: 40.0 percent). The Group’s revenue was positively influenced by currency effects totaling € 190.7 million. Adjusted EBIT fell to € 311.7 million (previous year: € 462.2 million). The adjusted EBIT margin dropped significantly to 5.6 percent (previous year: 9.3 percent). At € 159.8 million, net income was significantly lower than the previous year (€ 291.2 million). This includes special effects from Russian business (after tax) of € 30 million in total already recognized in the first quarter. Global Economy Heavily Impacted The ongoing war in Ukraine and the aftermath of the coronavirus pandemic weighed heavily on the global economy during the reporting period. The further increase in raw material and energy prices (and in turn inflation rates) as a result of the war, as well as disruptions to global supply chains and Covid-related lockdowns in Asia, had a distinctly negative impact on global economic growth. The World Bank revised its growth forecast for the global economy this year predicting global economic growth of just 2.9 percent (compared to 5.7 percent in the previous year). Slow Growth for the Material Handling Market According to KION Group, the global material handling market grew moderately in the first half of 2022. As such, demand for industrial trucks in KION Group’s sales markets was still above the previous year’s level. As a result of the significant macroeconomic uncertainties and the considerable supply restrictions, according to the KION Group, momentum declined in all sales regions in the second quarter. In a half-year comparison, the order figures in the EMEA region are likely to be slightly higher than in the previous year, while the KION Group estimates stronger growth in the Americas region. In the APAC region, order numbers are unlikely to reach those achieved in the previous year, due in part to measures taken to contain the coronavirus pandemic in Asia. Project business for supply chain solutions was also impacted due to delays on the supply side. In the view of KION Group, the global market for supply chain solutions has continued to grow in the reporting period. The EMEA and Americas regions contributed to the high level of market activity once again. In the view of the KION Group, the mid to long-term growth trend is intact in both operating segments. Development of Operating Segments in Detail The number of new orders in the Industrial Trucks & Services segment increased by 11.7 percent to 173.7 thousand units in the first half of 2022, with the number of orders in the second quarter declining by 1.8 percent compared to the same period of the previous year. In all regions, demand in the first half of 2022 was higher than in the same period of the previous year. Significant growth was achieved in the EMEA and Americas regions. The value of order intake increased by 20.0 percent to € 4.827 billion (previous year: € 4.021 billion). In view of the continued increase in material costs, the list prices on the sales side
JLG names Andy Daw Vice President, Global Procurement & Supply Chain
JLG Industries, Inc., an Oshkosh Corporation company and a global manufacturer of mobile elevating work platforms (MEWPs) and telehandlers, announces that industry-veteran Andy Daw is the new Vice President of Global Procurement and Supply Chain for the Oshkosh Access segment, which includes the JLG® aerial equipment and Jerr-Dan® towing and recovery equipment brands. In this role, Daw leads the brands’ global procurement and supply chain teams, providing a strategic vision for growth and implementing enterprise-wide initiatives to build and maintain a resilient supply chain for the company. Daw comes into this position with more than 20 years of working experience in the heavy equipment and engine industries. “The complementary combination of procurement and supply chain responsibilities in this role appealed to me because it allows me to use my understanding of how the market works and apply my knowledge of the industry’s supply chain dynamics to build healthy relationships with vendors. My emphasis is on fostering collaboration to increase efficiencies and drive growth — not just for the Access segment but also for our business partners,” says Daw. According to Daw, he will help JLG navigate the current market uncertainty by calling on both global and domestic suppliers to be part of the solution. He says it’s not about location but where the organization’s demands are best met. “Moving forward,” he adds, “the team’s continued focus will be on developing and supporting partnerships in the supply chain that will sustain JLG’s competitive advantage, enabling us to serve our customers better than anyone else in the industry by meeting their needs today and in the future.” Before joining the company, Daw built and led globally diverse supply chain and engineering teams for Caterpillar Inc. and Perkins Engines, Ltd. He holds a Bachelor of Arts in Business from Birmingham City University. “With JLG’s strong global brand presence and people-first culture, I look forward to leading procurement and supply chain efforts at a company of this caliber,” he finishes.
The Crane that helped avert a mining disaster
20 years ago this week, a 40-ton RT from ALL helped rescue nine trapped coal miners in Pennsylvania Twenty years ago this week, all eyes were on a farm in Somerset County, Pennsylvania, as a daring rescue took place for nine coal miners trapped 250 feet underground. On July 24, 2002, they had accidentally tapped into a poorly documented abandoned mine, flooding their own mine with water and blocking their exit. Cold, wet, and running out of air, for 77 hours spread across parts of five days, the nation was transfixed by the attempt to reach them, an event that came to be known as the Quecreek mine rescue. Somerset County had made news just 10 months earlier, for a completely different reason, and locals were hoping this might have a happier ending. The Quecreek mine rescue occurred less than a year after the 9/11 attacks, in the same Pennsylvania county where Flight 93 crashed into a field when passengers overpowered terrorist hijackers. When word spread of the trapped miners, hundreds of people sprang into action to assist in the rescue effort, including civil engineers, state government officials, local clergy, and the man who owned the farm. Also playing a role: a Link-Belt RTC-8040 rough terrain (RT) crane from ALL Crane Rental of Pennsylvania, a member of the ALL Family of Companies. The 40-ton capacity machine was used to lower the rescue capsule into the ground and retrieve the trapped miners, one at a time. At the time of the accident, the crane was in another part of Somerset County, working on improvements to the Pennsylvania Turnpike. Their smaller size and easy mobility make RTs popular for road work, but this unit was destined for a greater task. With the water rising and fears the nine miners were down to their last hours, the timing was crucial, and the ALL RT was in the right place at the right time. It was commandeered for the rescue effort, with the full blessing of ALL and its customer. “In matters of life or death, priorities shift in an instant,” said Jason Wellington, general manager, ALL Crane Rental of Pennsylvania. “When we heard our crane might be able to help those trapped underground, we sent it on its way as soon as possible.” The unit was trucked the few miles to Dormel Farms, where the rescue shaft was already drilled. On July 28, 2002, at approximately 1 a.m., the first miner was lifted to safety. He was chosen to go first because he was experiencing chest pains. The remaining miners were taken out in order of weight, the heaviest first because the final man would have no one to help him get into the rescue capsule. In 15-minute increments, each was lifted out by the crane, the final man reaching the surface at 2:45 a.m. All the men were experiencing hypothermia from the days spent wet in the dark, but all were rescued alive. A ceremony marking the 20th anniversary of the rescue was held July 22-23, 2022, at Dormel Farms, where a permanent tribute monument has been erected. The original rescue shaft and air shaft are preserved on the site as well. The ALL Family of Companies donated a Grove RT540E rough terrain crane, symbolic of the original 40-tonner that performed the rescue work, with an operator for this two-day event. Affixed to the crane for this visit was the U.S. flag flying at the Pentagon during the September 11 attacks, on loan to celebrate Quecreek’s happier ending. In the years since the Quecreek mine rescue, analysts have posited that hundreds of small, correct decisions added up to result in the safe rescue of all nine miners. Some luck was involved, too. A little bit of that luck was that road construction was occurring just a few miles away, using a crane that was easily repurposed for lifting trapped, exhausted men out of a 250-foot rescue shaft.
Synergy conjures up yet more magic for Gartner Quadrant
Synergy North America has been retained on the elite Gartner Magic Quadrant (MQ) for Warehouse Management Systems (WMS) – for the 11th successive year. The WMS domain expert cements its place in the ‘niche’ quadrant (focused on producing tangible functionality improvements) but also with leanings towards ‘visionary’ thanks to its innovative SnapFulfil technology and speed-to-value solutions. Synergy is one of only a handful of independent software vendors worldwide to be selected for the prestigious 2022 WMS MQ. Apart from having a credible and proven WMS solution, the business was also measured on its vision and ability to execute. Synergy’s SnapFulfil is an award-winning, advanced cloud-based WMS suite and the MQ guide acknowledges its easy configurability and in-built flexibility to adapt to changing market requirements. Its robust rules engine facilitates high levels of non-code adaptability to support customer-specific and vertical-industry-specific requirements. This agility facilitates SnapFulfil’s superior onboarding methodology, which includes differentiating remote and self-implementation capabilities. It also offers a game-changing configuration tool for customers and has been further improved by interactive guidance and real-time digital training. Also highlighted by Gartner MQ is SnapFulfil’s pricing strategy, which allows companies to flex their number of users and associated costs, based on seasonal demand variations. In addition, a no-capital-expenditure, turnkey-managed service option combines software, cloud infrastructure, radio frequency (RF) hardware, ongoing support, and updates, as well as implementation services as part of a single and competitive subscription fee. Synergy clients range from high-growth SMBs to expanding global organizations and another Gartner focus is SnapFulfil’s ability to scale down to high Level 1 warehousing and up to more complex Level 4 operations by improving and enhancing processes that extend decision support capabilities. Also listed was an automated debugging tool to further speed up implementations. Last, but not least, Synergy is one of the longer-tenured cloud WMSs offering rapid onboarding (within an average of eight business weeks) and dedicated SaaS solutions. This reduces both short-term costs and entry-to-market risks. Synergy NA CEO, Rich Pirrotta, says: “We’re delighted once again to get this prestigious recognition from Gartner MQ, as we continue to make a tangible difference through rapid ROI, industry-leading deployment speed, and low total cost of ownership (TCO). With our focus on strong value, Gartner also recognizes our aim of being the provider of choice for the increasingly important e-commerce sector, as well as the third-party logistics (3PL) companies that support retail and D2C.”