PTDA 2022 Industry Summit to deliver “Amped Up” Programming and Networking
The Power Transmission Distributors Association (PTDA) will convene for the PTDA 2022 Industry Summit in Nashville, Tenn. on October 27-29, 2022. With more than 500 delegates in the power transmission/motion control (PT/MC) industry expected to attend, representing over 200 PTDA distributors and manufacturer companies, the Industry Summit—themed “Amp Up”—will offer cross-channel networking, shared learning, and collaborative experiences. “Nashville is a city radiating with energy and I’m excited for PTDA to capitalize on its momentum during the 2022 Industry Summit.” says PTDA President JP Bouchard, vice president, General Bearing Service Inc. “This year’s program has been ‘amped up’ to provide even greater value to attendees, offering more opportunities for business engagement and growth. With dynamic presentations delivering key insights on our challenges like workforce recruitment and the ever-changing economy, the industry’s top PT/MC executive will walk away with not just information, but actionable takeaways.” New for 2022, the signature event of the PTDA Industry Summit–the Manufacturer-Distributor Idea Exchange (MD-IDEX)–has been increased to two days. MD-IDEX is a time- and cost-effective forum bringing together distributor and manufacturer executives for high-level discussions on market strategies and issues. Distributor and manufacturer members alike laud MD-IDEX as one of the best face-to-face cross-channel business programs with a measurable ROI for participants. Well-respected industry thought leaders will offer keynote presentations, beginning with economist Dr. Alan Beaulieu, an Industry Summit favorite. Founder and President of ITR Economics, Beaulieu will address the ever-evolving post-pandemic business landscape and highlight opportunities for PT/MC companies to seize and challenges to avert. Two sessions presented by PT WORK Force®, an initiative of the PTDA Foundation, will address ways employers can circumvent forces hindering their efforts to attract and retain top talent. Risha Grant, Founder & CEO of Risha Grant, LLC, will share unconventional methods to tap into a rich market of dynamic and diverse candidates to foster an energized workforce-focused program and environment. In the second session, a panel discussion featuring career services directors from local schools and technical programs will offer guidance on how to engage young, ambitious students before they hit the marketplace as job seekers. As the closing keynote, former NFL quarterback Joe Theismann will relay how his individuals and organizations committing to a positive mental outlook and vision can tackle any obstacles blocking their success. Additional networking opportunities abound at the PTDA 2022 Industry Summit. From gatherings of the PTDA Women in the Industry (WITI) and Next Gen groups to receptions and networking lunches to an exclusive Closing Event hosted at Nashville’s iconic Wildhorse Saloon, participants will reap content and connections. For more information, visit ptda.org/IndustrySummit. Those registering before August 25, 2022, will receive a $100 discount.
Safety 2022 attendance ranks third all-time
The signature event of the American Society of Safety Professionals (ASSP) returned to Chicago in a big way in June as the occupational safety and health event attracted over 1,000 more attendees than the last time the global conference was held at McCormick Place. ASSP’s Safety 2022 Professional Development Conference and Exposition was a hybrid experience for the second time and welcomed 5,564 registered attendees in person and online from June 27-29. In 2011, the Society’s 50th annual event in Chicago drew 4,535 safety and health professionals. It is one of America’s largest conferences for the advancement of workplace safety and health. “Workplace safety professionals want to stay current on best practices, industry trends, and the latest product innovations,” said ASSP President Christine Sullivan, CSP, ARM. “Regardless of your level of expertise, there are always new safety management techniques and strategies to adapt to our changing world of work.” This year’s in-person turnout was 4,122, and an additional 1,442 attendees joined online. The event’s success – the third highest ASSP attendance behind events in New Orleans (2019) and San Antonio (2018) – reflected a commitment to help advance occupational safety and health worldwide during a challenging time. Boosting Safety 2022’s popularity was a dynamic exposition with 445 vendor booths that covered 82,000 square feet. The extensive product showcase was a key element of the in-person experience. “Our expo is so illuminating and informative that we get some safety and health professionals coming only for that,” Sullivan said. Safety 2022 welcomed 2,782 first-time attendees, making up about half of the total attendance. Approximately one-third of attendees were non-members, who received a free year of ASSP membership. These results signal future growth for ASSP and the workplace safety and health profession. “We’re proud to be a leader in providing professional development for the occupational safety and health community,” Sullivan said. “Our event shares case studies and new safety approaches along with vast networking opportunities that can help practitioners solve challenges, implement innovations, and advance their careers.” In a post-event survey of Safety 2022 attendees, 9 out of 10 respondents said they would recommend the conference to a colleague while nearly 80 percent said they already plan to attend next year’s event. The conference surpassed its $25,000 fundraising goal as participants donated $27,193 to the ASSP Foundation, including a $10,000 match from Liberty Mutual. The ASSP Foundation promotes occupational safety and health as a career choice and works to build a sustainable talent pipeline in the profession that will help make all industries safer worldwide. ASSP’s Safety 2023 is set for June 5-7 in San Antonio and is expected to again include both in-person and online elements. The Henry B. Gonzalez Convention Center is on the famous San Antonio River Walk, which includes 15 miles of restaurants, shops, and museums. San Antonio is an international culinary destination and last hosted ASSP’s conference in 2018 when the Society launched its new name and brand. Groups planning to attend Safety 2023 can save on the entire conference. A record 119 groups received discounts on this year’s event. To learn about group offers, contact ASSP’s Nancy O’Toole at [email protected].
U.S. Rail Traffic for the week ending July 16, 2022
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending July 16, 2022. For this week, total U.S. weekly rail traffic was 498,899 carloads and intermodal units, down 2.8 percent compared with the same week last year. Total carloads for the week ending July 16 were 229,809 carloads, down 2.4 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 269,090 containers and trailers, down 3.2 percent compared to 2021. Three of the 10 carload commodity groups posted an increase compared with the same week in 2021. They were nonmetallic minerals, up 2,211 carloads, to 33,017; farm products excl. grain, and food, up 1,099 carloads, to 16,695; and motor vehicles and parts, up 867 carloads, to 12,916. Commodity groups that posted decreases compared with the same week in 2021 included coal, down 3,545 carloads, to 65,634; miscellaneous carloads, down 2,295 carloads, to 8,496; and grain, down 2,265 carloads, to 18,752. For the first 28 weeks of 2022, U.S. railroads reported a cumulative volume of 6,431,176 carloads, down 0.3 percent from the same point last year; and 7,377,966 intermodal units, down 6 percent from last year. Total combined U.S. traffic for the first 28 weeks of 2022 was 13,809,142 carloads and intermodal units, a decrease of 3.4 percent compared to last year. North American rail volume for the week ending July 16, 2022, on 12 reporting U.S., Canadian and Mexican railroads totaled 325,650 carloads, down 0.8 percent compared with the same week last year, and 355,716 intermodal units, down 1 percent compared with last year. Total combined weekly rail traffic in North America was 681,366 carloads and intermodal units, down 0.9 percent. North American rail volume for the first 28 weeks of 2022 was 18,852,354 carloads and intermodal units, down 3.3 percent compared with 2021. Canadian railroads reported 73,518 carloads for the week, up 4.6 percent, and 70,728 intermodal units, up 11.1 percent compared with the same week in 2021. For the first 28 weeks of 2022, Canadian railroads reported a cumulative rail traffic volume of 4,007,538 carloads, containers, and trailers, down 4 percent. Mexican railroads reported 22,323 carloads for the week, down 1.4 percent compared with the same week last year, and 15,898 intermodal units, down 11.1 percent. Cumulative volume on Mexican railroads for the first 28 weeks of 2022 was 1,035,674 carloads and intermodal containers and trailers, up 0.7 percent from the same point last year. To view the traffic charts, click here.
Yellow Corporation signs agreement with U.S. Army to join Partnership for Your Success Veteran Employment Program
Yellow Corporation, has entered into a memorandum of agreement today with the U.S. Army Partnership for Your Success (PaYS) program, demonstrating the Company’s commitment to helping ensure veterans have successful careers upon leaving service. “Veterans bring with them the discipline, training, and can-do attitude that we value at Yellow,” said Darren Hawkins, CEO of Yellow. “We see the partnership with PaYS as a win-win opportunity for us and for veterans. Giving veterans a great place to work is the least we can do to thank them for serving their country.” The PaYS Program is a strategic partnership between the U.S. Army and a cross-section of corporations, companies, and public sector agencies. The program provides America’s Soldiers with an opportunity to serve their country while they prepare for their future. “The Nashville Recruiting Battalion is excited for the opportunity the partnership between the U.S. Army and Yellow Corporation brings to our Soldiers’ lives as they become Veterans,” said Army Lt. Col. Kirsten McFarland, Commander of the Nashville Army Recruiting Battalion. “Our partnership is an exceptional commitment to building not only an experienced job pool for Yellow Corporation but employment for our Veterans as they transition from service.” PaYS partners guarantee Soldiers an interview and possible employment after the Army. This unique program is part of the Army’s effort to partner with America’s business community and reconnect America with its Army. Hawkins said, “In the trucking industry, veterans can have a new career in service, as they help ensure essential goods are safely delivered to our communities. Yellow is proud to support our troops with a meaningful career and honor their sacrifices made to preserve our freedom.” To learn more about the Army PaYS program, go here. Read about what it means to work at Yellow by visiting the careers section of our website.
Help! I’m slumping and I can’t get a sale!
In a slump? Not making enough (or any) sales. Feel like you’re unable to get out of the rut? Maybe you’re not in a big slump but just can’t seem to hit the quota numbers. Let’s be kind and call it “sales underachievement.” Don’t panic. Don’t press too hard. Don’t get down on yourself. Don’t get mad. And above all, don’t quit. What causes a slump? You do. Therefore, you are the best (only) person to fix it. Here are the prime causes of sales slumps: Poor belief system. I don’t believe that my company or product is the best. I don’t think that I’m the best. Poor work habits. Getting to work late, or barely “on time,” Not spending your time productively. Misperceptions that lead to sour grapes. I think my prices are too high, or my territory is bad. Outside pressure. Caused by money problems, family problems, or personal problems. Poor personal habits. Too much drink, too much food, or too much after-hours play. Boss giving crap instead of support. Someone who says, “You better do it,” instead of, “I know you can do it.” Events that go against you. A new salesperson passes you, someone else gets promoted and you knew it should have been you. A customer cancels a big order. Weakening your personal belief or causing severe money problems or both. Getting depressed. From any of the above. When you’re in a slump, you begin to press for orders instead of working your best game plan (which is: sell to help the other person and let your sincerity of purpose shine through). When you have the pressure to sell, the prospect senses it and backs off. Then things get worse. You can’t seem to sell at all and begin to panic. “Oh my gosh, I can’t sell a thing, I’ll get fired, miss my house payment, can’t pay my bills. Aaaahhhhhh!” False fear. Relax, you’re better than that. Here’s a prescription to help cure sick sales: Get back to basics. Usually what’s wrong is not complicated. In fact, you probably know what’s wrong. Your problem is that you think it’s someone else’s fault. Wrong. List two or three areas that need immediate care. Have the guts to take action. Revisit your (or make a new) plan for success. Today. List 5 things you could be doing to work smarter/harder. Make a plan to work as smart as you think (or say) you are. Change your presentation. Try a different approach. Take the customer’s perspective. Talk to your five best customers. Ask them to evaluate your situation. Get someone you respect to evaluate your presentation. Take them with you on sales calls. Get a coach. Visit your mentor. And have a new plan when you get there. Get to work an hour before everyone. Put in more productive time. Stay away from pity parties. Don’t make a slump worse by whining or hanging around a bunch of negits and underachievers. Hang around positive, successful people. The best way to get to success. Have some fun. Go to the comedy club, do a little extra of what you like to do best (unless too much fun is the cause of your slump). Spend 30 minutes a day (in the morning is best) reading about your positive attitude. Then listen to attitude and sales podcasts in the car all day. Listen to your favorite song just before the presentation. Go into your next call singing. Take a few days off. Chill out, take stock, make a plan, regroup, reenergize, and return with renewed determination and better energy. Rearrange your office. Shake things up a little, and make them look new. Record your presentations live. Then listen in the car immediately afterward. Take notes. Act to correct. Take a video of your presentation. Watch it with others who can give you constructive feedback. Take the best salesperson you know out on calls with you for a day. Get a written evaluation after each call. Take your boss with you on calls for a week. You’ll get more feedback than you can handle, but it will help. Avoid negative talk and negative people like the plague. Find people who will encourage you, not puke on you. When a baseball player is in a batting slump, he will do anything to “change his luck.” Things from superstition (rabbit’s foot, not shaving, wearing the same underwear) to changing batting stance, to video watching, to extra coaching. But the one thing that usually breaks the slump is extra batting practice to regain the groove. Fundamentals. They, like you, have the professional ability, but temporarily lost it. They, like you, went back to the raw fundamentals to regain lost talent. Other random notes on the truth about slumps: The best way to get out of the rut is to keep the slump in perspective. Once you accept the fact that it’s no one’s fault but your own, you can begin to recover. Be cool. You’re the greatest if you think you are. Believe in the most important person in the world, YOU. In a sales slump? Get fired up or get fired. 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.
June 2022 reaches levels in New Industrial Manufacturing Planned Industrial Projects not seen since March 2022
SalesLeads has announced the June 2022 results for the newly planned capital project spending report for the Industrial Manufacturing industry. The Firm tracks North American planned industrial capital project activity; including facility expansions, new plant construction, and significant equipment modernization projects. Research confirms 150 new projects in June 2022 as compared to March 2022 with 152 planned 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 – 129 New Projects Distribution and Industrial Warehouse – 71 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 44 New Projects Expansion – 55 New Projects Renovations/Equipment Upgrades – 72 New Projects Plant Closings – 9 New Projects Industrial Manufacturing – By Project Location (Top 10 States) Michigan – 15 Indiana – 13 Ohio – 12 Texas – 9 California – 8 South Carolina – 7 Kentucky – 5 North Carolina – 5 Virginia – 5 Wisconsin – 5 Largest Planned Project During the month of May, our research team identified 16 new Industrial Manufacturing facility construction projects with an estimated value of $100 million or more. The largest project is owned by GlobiTech, Inc., which is planning to invest $5 billion in the construction of a manufacturing facility in SHERMAN, TX. Construction is expected to start in late 2022. Completion is slated for 2025. Top 10 Tracked Industrial Manufacturing Projects OHIO: Automotive mfr. is planning to invest $1.5 billion for expansion and equipment upgrades on their manufacturing facility in AVON LAKE, OH. They are currently seeking approval for the project. OREGON: Lithium battery mfr. is planning to invest $450 million in the construction of a manufacturing facility in REDMOND, OR. They are currently seeking approval for the project. CONNECTICUT: Semiconductor components mfr. is planning to invest $250 million for an expansion of its manufacturing facility in WILTON, CT. They are currently seeking approval for the project. TENNESSEE: Specialty food packaging products mfr. is planning to invest $200 million for expansion and equipment upgrades on their manufacturing facility in VONORE, TN. Completion is slated for late 2023. OHIO: A biotechnology company is expanding and planning to invest $150 million in the construction of a 350,000 SF laboratory and processing facility at 9885 Innovation Campus Way in NEW ALBANY, OH. They are currently seeking approval for the project. GEORGIA: Industrial equipment mfr. is planning to invest $140 million in the construction of a 650,000 SF warehouse and manufacturing facility in GAINESVILLE, GA. They are currently seeking approval for the project. Construction is expected to start in 2022. Completion is slated for late Summer 2024. ARKANSAS: A lumber company is expanding and planning to invest $131 million for the renovation and equipment upgrades on their manufacturing facility in WALDO, AR. Completion is slated for late 2024. MONTANA: A food production company is planning for the construction of meat, dairy, poultry processing, and warehouse complex in GREAT FALLS, MT. The project also includes the construction of a 20,000 distillery and production facility at the site. They are currently seeking approval for the project. MISSOURI: Automotive mfr. is planning to invest $95 million for expansion and equipment upgrades at their manufacturing facility in KANSAS CITY, MO. They have recently received approval for the project. MICHIGAN: Food safety products mfr. is planning to invest $70 million in the construction of a 175,000 SF manufacturing facility in LANSING, MI. Construction is expected to start in Fall 2022. 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.
Inflation Strategy – Part 4
The summer of 2022 is not really looking better than the Spring. the business climate is still tenuous as labor issues, COVID variants, and geopolitical uncertainties create continue material and labor shortages. Our biggest obstacle is the meteoric rise in inflation. Over the past three articles, I have laid out a series of strategies that could be employed to realign the policies and practices inside your dealership. We must be pragmatic in making intelligent decisions in response to a very different distribution landscape. My prior articles have touched on different approaches to assessing progress and setting goals using a SWOT analysis. I have also suggested strategies for maintaining your revenue stream in sales, by reexamining dealership policies governing rental retirements, and long-term rental contract extensions. I offered ideas about maintaining your sales department profitability by keeping pricing policy “ahead” of the inevitable OEM price adjustments, even for units currently on order. I also touched on ways we could adjust parts policies regarding inventory decisions, vendor selection, and expense recovery. Leveraging the rise in inventory value, that is automatically created during an inflationary cycle is a key factor in maintaining profitability during these times. In this article, I want to turn my attention to the service department, and how the changes in the marketplace give rise to both opportunities and risks that we must prepare for. Labor Rate Methodology Inflation is dangerous because it feeds a vortex of two market forces. Prices rise…. but so do wages. It’s a simple cause-and-effect construct. To remain competitive and maintain your position as an “employer of choice”, you must increase your wages. As wages rise, the amount of dollars entering the economy grows ever larger, thereby forcing prices even higher. This price-wage vortex is difficult to control, and once again, we need to stay “ahead” of the curve. Inflation and wage growth do not change the long-standing “best-practice” ratios that serve as guideposts for setting (and adjusting) retail labor rates. The proven ratio is 3.2 to 3.6 times journeyman wages paid. If you are paying your journeyman technicians $35 an hour, your effective retail rate should be between $112 and $126 an hour. If you are constrained to pay $42 an hour due to inflationary wage growth, your rates need to follow suit at between $135 and $151. This will be uncomfortable, and awkward, especially if you have to enact multiple rate increases during the same calendar year. As disquieting as this can be, we must be committed to our ratio. The math does not change because the costs are rising. We must keep pace. You may want to exempt the selected customers from the increase. I get it. I’ve been there. May I suggest however that instead of exempting them completely, you instead attempt to ramp them into a higher rate over time? If they are already enjoying a discount from your effective rate, calculate the percentage increase represented by the retail rate hike, and cut it into three to six segments, enacted over a period of months. Instead of a $15 jump in rate all at once, you make an agreement to step up smaller increases every 60 or 90 days. Once your train your customers that they can expect to be insulated from rate increases, you will find it hard to unwind that expectation. If your methodology however rewards their loyalty with gradual increases over time, you may find it easier to manage this process. Callout Fees As hard as it will be for customers to stomach rate increases, it will be even more difficult for them to accept paying those rates for travel time. This is a recurring theme in dealerships all over the country. Customers can see the value when the tech is actually onsite making repairs, but not so much when they are sitting in traffic logging windshield time. I have long been a proponent (especially for customers within a 60-mile radius) of establishing a flat rate call-out fee for field repairs. Charging a different amount every time a customer contacts our dispatch desk is already infuriating your customers. Raising the bar on that price only heightens the level of frustration. Some dealers charge travel time based on “zones”. Travel charges are flat rated based on how far the customer is from our dealership. Most of the time, however, we dispatch a technician directly from his remote location to the customer’s place of business. The only time we might dispatch them directly from the dealership is for the first call of the day. So, is your zone charge accurately representing the cost of travel? Maybe…or maybe not. You may want to consider a flat-rate fee for all dispatched field calls in your service area (60 miles). Whether the technician is across the street, or across the county…. it’s the same price every time. Customers will know what to expect, and there will be much less frustration connected with service invoicing. Rural customers outside the 60-mile zone can still be charged hourly, but truth be told, they expect it, and are generally less sensitive to travel time than their in-town counterparts. Setting this callout fee is not really that difficult. If your dealership uses a GPS service provider (which most do) you can use the GPS reporting data to separate transit time from on-site time. Use the fleet average on travel to extrapolate the average total transit time per tech, per day. Apply your effective hourly rate and set your callout fee. Remember to account for things like lunches, commute time, and other anomalies. Surcharges – Fuel Our current inflationary cycle is driven by fuel prices. These prices are unpredictable. It’s not a good idea to try and recover a spike in fuel prices, with a rate increase. Wages should drive hourly rate increases…not expenses. This highlights another area of frustration for customers. During times like this, when fuel prices are running well in excess of historical norms, you have to have a way to recover the expense
Risk Assessment
As you well know there are quite a few issues facing dealers for the balance of 2022 and into 2023. We have Inflation with many factors pointing to Stagflation. We have interest rate risk (which is scary). We have credit risk from your OEM down to your customer level. We have increased transportation costs. We have pending EV interest and requirements. We have consolidation on many equipment fronts. We have staffing problems. We have supply chain problems. We have the retail sector stuck with bloated inventories. You can add a few more. On the positive side a recent BDO newsletter I received states that industrial real estate is staged to almost double the volume of five years ago. With many companies needing to put products closer to customers and the trend to produce more products in the US, lift truck dealers have a tremendous opportunity to add market share. Sounds good so far, but there is no free lunch because owners of these properties plan to become digitally aware looking to digitally connect systems to work together and deliver more productivity. Sounds great as long as you can participate in this digital process. If you cannot, do not expect to be at the top of the list when they need equipment. ( I suggest you sign up for those BDO emails because they contain a lot of practical material). The next item on the list will require a strong balance sheet along with meaningful EBITDA. A year ago, you have a Fed Fund Rate of about “0” to which the bank adds, let us say, 2.5% to 3.0%. as your rate to receive working capital and Cap-X loans. When you think about this your costs are increasing, and vendors who experience a similar fate will be passing on their higher interest costs to you as well. A lose-lose situation because the reality of this situation is you incur higher interest costs without a source of revenue to offset them. You obviously will have to increase margins to cover this higher rate, but it may take a year to catch up to the cost increase, with the higher interest passed on by vendors making it even tougher to catch up. For example, you now have a 2.5% loan. With the Fed rate changes, the base rate is now 2.5% (and will probably go higher) to which you add on the bank rate of 2.5%, with the new rate being 5%. That’s a 100% increase! To see the impact of these changes, take a look at your 2021 annual financials to see what your interest cost was. Now double it to compile what your new annual interest dollars will be.YIKES. Where is cash coming from to cover this expense? Where you find yourself after these higher rates are executed is in front of your banker who says, “ Looks like you missed your covenants, and we will have to see what needs to be done to correct the situation.” I hate to pile on like this but ’22 is the year of the new lease accounting rules which will add lease debt to your balance sheet which could create additional covenant problems. All the more reason to take a HARD look at your balance sheet now to give you time to prepare your defense when the loan renewal comes up. Dealers with unit inventory and a rental fleet might see debt covenants as follows. Debt/Equity. Debt/EBITDA-Cap X. EBITDA/ Interest. EBITDA / Total Debt Service. I am sure that a lot of you are familiar with these calculations. Hopefully, you have examples of how the bank calculates these results. If you do not have those examples, get them, and keep them handy. Since EBITDA shows up in more of these covenant calculations make sure you have an outline for adjustments to make to the EBITDA. For example, one-time charges and personal expenditures could be used to adjust the EBITDA to a higher positive result. It will pay to study how you are accounting for revenues and expenses to insure you have the right figures in the right period. And remember the “I” in EBITDA stands for interest. Make sure you are using the correct amounts for interest expenses. Obviously, the lease debt will increase the debt amount on the balance sheet resulting in a material adjustment if you lease a lot of equipment or have long-term contracts (not equipment related). Bankers have been saying that you do not have to worry about the lease debt, as long as you are in good standing with the bank. Get a bit out of sync and you may find that suddenly the lease debt is more important than anticipated. One last point. Your customers and vendors will find themselves also having problems with increasing rates. So now is the time to see how the financials of your slow players look. These rates are sure to generate a lot of Zombies (Wall St. term for a company not able to make their next bank note payments) who borrowed too much because the rates were low. Thus, the question becomes “How many Zombies are in your AR schedule?” Is not owning a lift truck dealer fun? Most times yes. For the next eight months probably not. 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.
EP 299: ABCO Systems and Automation Today
I’m excited to welcome back Seth Weisberg to the New Warehouse Podcast. Seth is the CEO of ABCO Systems which is a full-service design and build company specializing in material handling solutions. They offer a complete range of services, from sortation and conveyance to multi-level pick modules, garment on hanger systems, pallet racks, and shelving. Over the years, ABCO has evolved significantly, focusing more and more on product flow throughout the building. Key Takeaways Seth and I discuss the relevance of ROI in automated solutions. While ROI remains a primary factor for investing in automated solutions, we discuss other factors that have become even more critical under the current market conditions. Seth also shares his thoughts on the likelihood of ROI with some solutions that are on the market. ABCO Systems is excited to open a new showroom/training center that will showcase different types of automation technology and train technicians. The showroom will feature a pick wall, pallet shuttle, print and apply loop, store organizer, and more. Seth feels this will be a game changer for ABCO as the new showroom allows customers to see the technology in person and learn about available options. We discuss factors contributing to ABCO’s best year in over 40 years, such as focusing on different types of relationships, finding their niche, and hiring strategies. We also discuss what kind of investments set companies apart from one another to remain relevant. Listen to the episode below and leave your thoughts in the comments. The New Warehouse Podcast EP 299: ABCO Systems and Automation Today
Three lessons learned at Automate 2022
According to a report by Oxford Economics, faster adoption of automation could equate to an extra $4.9 trillion per year to the global economy by 2030. That’s equivalent to an economy greater in size than Germany. Where better to learn about this potential than America’s largest showcase of automation, Automate 2022? Claudia Jarrett, US country manager at automation parts supplier, EU Automation, examines the three biggest trends from this year’s show. Prescriptive maintenance With ample opportunities to save engineering expenditure and reduce the likelihood of downtime, maintenance technologies were among the first to undergo a process of digitalization. For several years already, manufacturers have deployed sensors to collect performance data from assets and undertake predictive maintenance. In practice, this sees maintenance engineers acting on an asset only when it shows signs of wear and tear. But now, maintenance technologies are advancing further. Machine learning (ML) is becoming a ubiquitous feature in many asset management technologies. For instance, the software that gathers data from our aforementioned sensors can analyze data consistently to trends and intelligently schedule maintenance. For prescriptive maintenance to be effective, an ML model needs to be trained onto the sensor or software. The higher quality of the data, the more accurate the maintenance suggestions will be. Prescriptive maintenance isn’t a plug-and-play option and can take several stages of investment to come to fruition, but in the coming years, this technology is likely to become more commonplace. Automating at the edge Businesses that are already years into their digitalization journey will understand the need for edge computing. While factories have become smarter, more complex, and often produced higher volumes of data than ever before, some have suffered from slower processing speeds as a result. Funneling this mass of data through a centralized network can cause bottlenecks and latency, yet edge computing resolves this challenge. Edge computing describes data processing that takes place closer to — or on the edge — of a device. Rather than waiting for data to be processed elsewhere, an edge-enabled device can achieve faster analysis and correction. For instance, if the device was to monitor pipes and identify flow-through issues, it can adjust automatically using decentralized artificial intelligence (AI). While edge is a hot topic, the feasibility and best practices of the technology are still under debate. Does edge computing as software-as-a-service (SaaS) improve accessibility? And, what is the best cloud model to work in conjunction with the edge? These were just some questions posed at the show. I suspect at the next Automate show, we will have more use cases for this tech and a better understanding of its potential. Robots-as-a-service (RaaS) Last year set a record for the number of robots sold in North America, with 39,708 units deployed, according to the Association for Advancing Automation (A3). Despite rising by 28 percent since the previous year, North America is still significantly lower than other leading nations, such as Japan, Germany, the Republic of Korea, and many others. Among many extraordinary exhibitors at Automate were several companies offering RaaS. As the name suggests, RaaS allows manufacturers to install robotics in their facilities on a service-led basis. Essentially leasing the machines and a cloud-based subscription rather than manufacturers buying the robots outright. RaaS is hailed as a way for small and medium-sized manufacturers to benefit from the productivity gains of robots, without needing such a high initial investment. An interesting development in this model is the speed at which it is growing. Industrial robotics manufacturer, Kuka, has recently scaled its RaaS offering to launch a Smart Factory as a Service (SFaaS) option, in which customers can rent out an entire automated plant with robots, software, and more. This new offering demonstrates that service-based automation options are not just for those dipping their toes into automation, but is a feasible business model for all manufacturing players. As the first Automate since before the pandemic, it has been refreshing to see the continued pace of change in automation — despite the challenging and uncertain climate. Faster adoption of automation has masses of potential for the global economy and, as demonstrated at the show, the industry is continuing to develop new, exciting technologies to facilitate this growth. At EU Automation, we are already looking forward to the tech we will see next time.
ASA, NIOSH announce new Safety Resource for temporary workers
The new guide builds upon the 2013 Temporary Worker Initiative The American Staffing Association, in partnership with the National Institute for Occupational Safety and Health (NIOSH) and a coalition of safety organizations, has announced the publication of a new resource document outlining ways host employers can keep temporary workers safe on the job. Entitled Protecting Temporary Workers: Best Practices for Host Employers, the resource guide includes best practices for evaluating and addressing workplace safety and health in contracts; training for temporary workers and supervisors; and recommended practices for injury and illness reporting, responses, and recordkeeping. “Nothing is more important than the safety and health of temporary employees in their workplaces,” said Richard Wahlquist, ASA president and chief executive officer. “This resource guide provides host employers with the information they need to create and maintain a healthy and safe working environment for temporary employees.” In addition to ASA and NIOSH, the co-authors of the guide include the National Occupational Research Agenda (NORA) Services Sector Council, the American Society of Safety Professionals, and the Safety and Health Assessment and Research for Prevention program out of the Washington State Department of Labor and Industries. The resource guide marks the latest effort by ASA to protect the health and safety of temporary and contract workers. Beginning in 2014, ASA has taken part in a formal alliance with the Occupational Safety and Health Administration (OSHA) to promote awareness of health and safety measures in the workplace, including the Temporary Worker Initiative and Safety Matters webpage. ASA’s Safely Back to Work campaign also provides employers with resources and guidance regarding Covid-19 prevention in the workplace.
$125M in incentives for Off-Road Zero-Emission Equipment available through California’s CORE Project
Vouchers for Tractors, Forklifts, Construction Equipment, and more to help reduce emissions and improve air quality The California Air Resources Board (CARB) opens the second round of its Clean Off-Road Equipment Voucher Incentive Project (CORE) today, providing point-of-sale discounts on off-road zero-emission equipment. The project is administered by CALSTART and has $125M in funding available, more than double the amount allocated to the project when it first launched in January 2020. Originally only for freight, in 2022, CORE is expanding to include funding for the commercial harbor craft and agriculture and construction sectors. Participation in the project has been streamlined for ease of use, and key elements include: Qualified participants will receive vouchers for point-of-sale discounts on off-road zero-emission equipment, up to a maximum of $500,000 per voucher There is no requirement to “scrap,” sell, or retire existing equipment Additional funding may be available for charging/refueling infrastructure, equipment operated in disadvantaged communities, and small businesses “California is backing up its commitment to clean the air in overburdened communities and carry out the direction of the Governor’s Executive Order with a significant investment in zero-emission vehicles and sustainable transportation,” CARB Deputy Executive Officer Craig Segall said. “CORE is specifically designed to assist industry sectors that currently use off-road equipment and can help clean up the communities hardest hit by air pollution.” “The streamlined process incorporates feedback from program participants and we are anticipating significant interest in this second round,” said Niki Okuk, deputy director at CALSTART. “The industry is continuing its transition to zero-emissions and CORE provides a clear market signal that helps bring new products to the market.” CORE supports the following nine equipment categories: On- and off-road terminal tractors Truck- and trailer-mounted transport refrigeration units (TRUs) Large forklifts and cargo-handling equipment Airport ground support equipment Railcar movers and switcher locomotives Mobile power units (MPUs) and mobile shore-power cable management systems Construction equipment Agricultural equipment Commercial harbor craft The first round of CORE resulted in over 460 vouchers for vehicles and electric vehicle supply equipment totaling over $62 million, with terminal tractors being the most requested equipment type. CORE is part of California Climate Investments, a statewide initiative that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, improving public health and the environment, and providing meaningful benefits to the most disadvantaged communities, low-income communities, and low-income households.
YPN Awards: Call for Nominations
Every year MHI powers the MHI Young Professional Network Awards to recognize an outstanding job by MHI member company employees. There are two different categories for the awards: Outstanding Young Professional and Mentor. Outstanding Young Professional Do you know someone within the industry under the age of 40, who has an impressive list of professional accomplishments, demonstrated effective leadership skills and has made a difference in their company? Nominate them today for the Outstanding Young Professional Award to recognize their hard work and dedication. Mentor Are you fortunate to have a mentor who is an inspiring role model, has offered professional guidance, and advocates for and supports employee professional development? Show your mentor how much they have had a positive impact on you by nominating them for the Mentor Award. The winners for both awards will be announced during the MHI Annual Conference in San Antonio, Texas on Tuesday, Oct. 4 during the Recognition Celebration. What are you waiting for? Submit your nominations today. The deadline to enter is August 31, 2022, at 5:00 pm ET.
PTDA 2022 Industry Summit to deliver “Amped Up” programming and networking
The Power Transmission Distributors Association (PTDA) will convene for the PTDA 2022 Industry Summit in Nashville, Tenn. on October 27-29, 2022. With more than 500 delegates in the power transmission/motion control (PT/MC) industry expected to attend, representing over 200 PTDA distributors and manufacturer companies, the Industry Summit—themed “Amp Up”—will offer cross-channel networking, shared learning, and collaborative experiences. “Nashville is a city radiating with energy and I’m excited for PTDA to capitalize on its momentum during the 2022 Industry Summit.” says PTDA President JP Bouchard, vice president, General Bearing Service Inc. “This year’s program has been ‘amped up’ to provide even greater value to attendees, offering more opportunities for business engagement and growth. With dynamic presentations delivering key insights on our challenges like workforce recruitment and the ever-changing economy, the industry’s top PT/MC executive will walk away with not just information, but actionable takeaways.” New for 2022, the signature event of the PTDA Industry Summit–the Manufacturer-Distributor Idea Exchange (MD-IDEX)–has been increased to two days. MD-IDEX is a time- and cost-effective forum bringing together distributor and manufacturer executives for high-level discussions on market strategies and issues. Distributor and manufacturer members alike laud MD-IDEX as one of the best face-to-face cross-channel business programs with a measurable ROI for participants. Well-respected industry thought leaders will offer keynote presentations, beginning with economist Dr. Alan Beaulieu, an Industry Summit favorite. Founder and President of ITR Economics, Beaulieu will address the ever-evolving post-pandemic business landscape and highlight opportunities for PT/MC companies to seize and challenges to avert. Two sessions presented by PT WORK Force®, an initiative of the PTDA Foundation, will address ways employers can circumvent forces hindering their efforts to attract and retain top talent. Risha Grant, Founder & CEO of Risha Grant, LLC, will share unconventional methods to tap into a rich market of dynamic and diverse candidates to foster an energized workforce-focused program and environment. In the second session, a panel discussion featuring career services directors from local schools and technical programs will offer guidance on how to engage young, ambitious students before they hit the marketplace as job seekers. As the closing keynote, former NFL quarterback Joe Theismann will relay how his individuals and organizations committing to a positive mental outlook and vision can tackle any obstacles blocking their success. Additional networking opportunities abound at the PTDA 2022 Industry Summit. From gatherings of the PTDA Women in the Industry (WITI) and Next Gen groups to receptions and networking lunches to an exclusive Closing Event hosted at Nashville’s iconic Wildhorse Saloon, participants will reap content and connections. For more information, visit ptda.org/IndustrySummit. Those registering before August 25, 2022, will receive a $100 discount.
EP 298: Vanderlande at MODEX 2022
Joining me this week from the booth at MODEX 2022 is Jake Heldenberg from Vanderlande. Jake is the senior manager of Warehouse Solutions at Vanderlande, where he works with customers to develop innovative warehousing solutions. Based out of the Netherlands, Vanderlande has a strong presence in North America with three primary markets: parcel, airports, and warehouses. We focus on the warehouse side and what they are hearing from the MODEX floor. Key Takeaways Jake shares some of the more popular warehouse solutions Vanderlande’s customers are implementing as the industry shifts to high automation solutions. Jake provides insights on the optimum picking solution for various industries. We discuss the partnership between Vanderlande and RightHand Robotics to provide innovative item-picking solutions for their customers. One of the key benefits of this partnership is the technology that allows for quicker and more precise picking. While everyone at the show seemed to be looking for automation, Jake and I discussed the importance of flexibility of automated solutions such as Vanderlande’s Fastpick and building pallets to any configuration that fits the customer’s needs using Vanderlande’s load forming logic software. By providing flexibility through different solutions, many of the problems for customers can be solved. The New Warehouse Podcast EP 298: Vanderlande at MODEX 2022
Abel Womack celebrates 100 Years in Business, continues Legacy of Innovation
The Northeast US premier material handling company marks a major business milestone, building on one hundred years of dedication, professionalism, and integrity Abel Womack, a Northeast, US full-service lift truck, automation, and intralogistics company, has announced that it is reaching its key milestone of 100 years in business in 2022. This latest achievement is underscored by the company’s culture of teamwork, expertise, customer support, and a focus on forward-thinking client solutions. “We are thrilled to have reached this momentous milestone in our company’s history,” said John Croce, Chief Executive Officer of Abel Womack. “What’s truly impressive, even after 100 years, is that our mission, vision, and exceptional standards to “be the difference” remain intact; which is why we continue to attract the best sales, service, and business professionals in the industry. I am both humbled and proud to have spent nearly 50 years with this company and witness firsthand the integrity, professionalism, and customer care that takes place here every day”. Founded in Brookline, Massachusetts in 1922 as Robert Abel & Co., Inc., Abel Womack originally dealt primarily with hoists and cranes before representing the innovative Raymond® forklifts in 1958. Womack Material Handling was founded in 1978 in Wallingford, CT, and merged with Robert Abel & Co. in 1996 to become Abel Womack. Milestones include building a new corporate headquarters in Lawrence, MA in 1999 and a new Wallingford, CT facility in 2013. In order to also accommodate their considerable growth in NY, the branch moved from Farmingdale to a larger facility in Edgewood. Over 100 years, the equipment, technology, and solutions that help meet the needs of our customers have changed drastically, and Abel Womack has consistently stayed ahead of the curve with automation and technology such as robotics, goods to picker solutions, conveyors, fleet management services and the exceptionally engineered Raymond® forklifts. Abel Womack has continued to add products and solutions to its portfolio to ensure it can offer its clients unbiased, optimal solutions. In 1999, Abel Womack foresaw that automation and integrated systems were the wave of the future and began investing in the people and resources to grow that aspect of the business. It has certainly paid off as automation continues to grow in demand. With more than 230 employees in NY, MA, CT, ME, RI, VT, and NH, including 100+ mobile technicians, Abel Woman is better able to provide unparalleled service and unbiased, tailored solutions.
Railroads welcome appointment of Presidential Emergency Board
Today, President Biden signed an executive order creating a Presidential Emergency Board (PEB) to help railroads and their workers settle ongoing national labor negotiations and ultimately agree to a new contract. “On average, railroaders earn $135,000 annually in total pay and benefits, which is higher than the average compensation of industries that employ 94% of the U.S. workforce,” said AAR President and CEO Ian Jefferies. “Railroads remain committed to reaching an agreement that provides their employees well-deserved compensation increases that keep them among the best paid in the nation.” The Railway Labor Act governs collective bargaining for the rail industry, which aims to help parties reach an agreement without work stoppages or disruptions to U.S. freight rail movements. Among other things, the statute includes provisions to encourage successful negotiations and, when necessary, provide outside assistance, such as forming a PEB to facilitate a resolution. “We are pleased that President Biden has taken an important step by creating a PEB to help all parties find a reasonable path forward,” continued Jefferies. “An agreement that allows both our hardworking employees and the industry to thrive into the future remains possible.” Now, the PEB will review the parties’ proposals and hold hearings in the coming weeks before issuing settlement recommendations. Historically, these recommendations can serve as a roadmap for a voluntary agreement. The National Carriers’ Conference Committee represents the carriers in national bargaining, including in upcoming PEB proceedings. For additional information about the status of these negotiations, please visit RailLaborFacts.org.
OZ Lifting expands Industrial Lever Hoist range
OZ Lifting has expanded its industrial lever hoist range with 6- and 9-ton capacity versions Previously, the Winona, Minnesota-based manufacturer offered 0.25- to 3-ton capacity models, but the relaunched range will include 0.25-, 0.75, 1.5-, 3-, 6-, and 9-ton capacity versions. This closely matches the company’s premium (overload protected) and dynamometer-equipped (Dyno-Hoist) lever hoist lines. While the premium line of lever hoists is, and will likely remain, the most popular of these manual hoist options, it is important to cover the breadth of applications that place specific demands on this type of product. The industrial line of lever hoists will always be a good choice if users already know the weight of the load. The premium line, meanwhile, is based on the same hoist but has overload protection. This has proved useful if the load weight is unknown, as the overload protection will activate at approximately 50% above the load rating. Dyno-Hoist, which eliminates the need for a separate shackle, dynamometer, and hoist, is the most technologically advanced of the range. Steve Napieralski, president at OZ Lifting, said: “We are confident that expanding the industrial line to match the other two products will give distributors and their end customers all the capacities and technology options they need. As such, we do not anticipate expanding the range in the foreseeable future.” The new industrial lever hoist range retains the features for which it has become renowned, including all-steel construction; 100% load-tested Grade 80 alloy chain; fully-enclosed gearing; long-lasting powder-coat finish; load sheave bearings; and more. Napieralski also pointed to the steel handle with rubber grip; forged alloy steel hooks; minimal load lifting effort; and heavy-duty latches. Custom options remain available. Napieralski added: “There is still a big market for manual lifting products that don’t include overload devices or dynamometers. An end user might make a purchasing decision based on budget or application nuances—or maybe a little bit of both—but they will likely already know the weight of their load, meaning a dyno[mometer] is a completely redundant addition.” The new 6-, and 9-ton capacity versions are already in stock and available for delivery. “Business is excellent,” added Napieralski. “We have seen significant growth in all our product offerings.
EnerSys® celebrates grand opening of its expanded Richmond, Kentucky Distribution Center
The event marks the expansion of the Company’s industrial supply chain footprint EnerSys®, the global provider of stored energy solutions for industrial applications, is proud to announce the grand opening of the Company’s expanded Richmond, Kentucky Distribution Center (DC). On Friday, July 15, 2022, local officials, including Richmond Mayor, Robert Blythe, and City Manager, Rob Minerich, joined EnerSys® for a ribbon-cutting ceremony to mark this special milestone. The new 195,000 square-foot DC will create new jobs in the community and improve the Company’s customer service through enhanced delivery capabilities and faster order fulfillment, helping to address recent supply chain challenges impacting the industry. “The larger Richmond DC will allow us to store more inventory at one centralized location and in turn, will enable us to offer more stock keeping units (SKU’s) in our ‘Quick Ship’ program –facilitating shipment of a customer’s order within 24-hours,” said Troy Baxter, Richmond, KY, Plant Manager at EnerSys®. “Furthermore, the new facility will not only help us lower lead times and meet customer demand, but it will also help improve our local economy through the creation of jobs in the Richmond vicinity.” The products that will be fulfilled at the new Richmond DC will be specific to the EnerSys® Motive Power portfolio, including the Company’s variety of traditional flooded lead acid and Thin Plate Pure Lead (TPPL) battery solutions and modular chargers. “With these products housed in a centrally-located US facility, our fulfillment capabilities are streamlined to a single point for order processing and shipping thus improving our responsiveness to our customers,” says Chad Uplinger, Vice President of Sales, Motive Power Americas at EnerSys. “These Motive Power solutions provide customers with recyclable energy storage options to reduce environmental impact and support a sustainable future – powered by electrification.”
Achieving Zero Emissions in Construction and Agricultural equipment
Each segment of the transportation industry carries its own challenges in electrification, and some are easier to overcome than others. Personal automobiles, for example, have relatively few remaining challenges. Perhaps the biggest remaining issue for automobiles is the improvement of charging infrastructure to eliminate “range anxiety,” but there is no major technological barrier to solving this problem. Likewise, there are strong initiatives underway to address many of the medium- and heavy-duty vehicle segment challenges. Off-road equipment, such as bulldozers and agricultural tractors, come with their own distinctive and more complex challenges to solve. These can include the technological issue of big machines needing a great deal of power to fulfill their tasks; the logistical challenge of charging off-road equipment in remote working locations; and the perception – the idea held by many that electrified off-road equipment is incapable of handling the work. These challenges may not be easy to solve, but they are not insurmountable. With forward-looking and unique applications of technology, legislation, and education, these problems can be assessed and eliminated. CALSTART – a non-profit working to build a prosperous, efficient, and clean high-tech transportation industry – has commissioned a research project on zero-emission off-road equipment and the challenges faced in deploying it. A preliminary look into the report’s findings related to construction and agricultural off-road equipment is presented here, prior to the report’s full release. Electrification of Construction Equipment is Moving Forward According to CALSTART’s report, construction equipment electrification is both more achievable and desirable than agricultural equipment electrification. The reason is that it is simply easier to electrify construction equipment compared to other types of off-road vehicles. This is because most construction happens in cities, so there is less of a challenge in accessing infrastructure than with more remote off-road applications. Additionally, construction equipment is often compact compared to other off-road categories, and so the possibilities for immediate electrification using current technology are strong. There is also the added benefit of noise reduction – a significant issue in urban areas, where most construction equipment is used. In contrast, agricultural vehicles typically operate in more rural areas, where noise pollution is not always a major concern. Construction equipment market projections There is already clear evidence of progress in some areas of the construction equipment market. In the U.S.-centric example below, small excavators have made significant inroads, and have the largest market increase of all clean engine types. Fully electric small excavators made up 5% of the U.S. market in 2021, and this is expected to rise to 15% by 2029. However, while encouraging, the U.S. market penetration of this equipment is limited compared to that of other countries. Unique Challenges Facing Electrification of Agricultural Equipment Although agricultural off-road equipment accounts for only a small percentage of the harmful emissions created by the industry overall, reduction of GHG emissions wherever possible can only help to reduce air pollution and climate change effects. Internal combustion of agricultural equipment not only releases emissions harmful to humans but to the surrounding plant and wildlife in the areas in which agricultural equipment is used. (Noise pollution reduction is also appreciated by wildlife.) There are significant and multiple benefits to electrifying agricultural equipment, and there is some success already. The CALSTART report indicates that two-wheel-drive tractor sales are growing fast, with 2,726 new units projected to hit the market in 2029. Hybrid electric is also doing well (see table below). Additionally, in California, there are several electric tractor manufacturers (such as Solectrac and Monarch) producing electrified agricultural equipment to meet the needs of some of the state’s specialized agrarian pursuits, among them California’s famous vineyards and orchards. Forklifts – Early Adopters Forklift manufacturers and operators were early adopters of electrified equipment; this was largely due to the fact that forklifts often operate indoors, where workers are constantly exposed to diesel fuel emissions. Even with forklift operators embracing electric vehicles early on, internal combustion forklifts still represent a significant portion of forklift sales (33% in 2021). As regulations become more stringent, this is changing; in California, for example, a ban on the sale of all new internal combustion forklifts is expected beginning in 2025. Regulations and legislation are not the only drivers of increasing electric forklift sales. The rapidly increasing efficiency of the batteries used to power them is having a growing positive effect on sales. Lithium-ion batteries charge quickly and are very efficient, especially when compared to the less-desirable lead-acid battery. Current projections show that lithium-ion batteries will make up more than 60% of the total electrified forklift market by 2029. Electrified forklifts are also proving the efficiency of hydrogen fuel cell technology, with over 10,000 units expected to ship in 2029. The Challenges Facing Construction and Agricultural Equipment Of course, forklifts are only one example of off-road equipment; there are still serious challenges to achieving this same success with agricultural and construction equipment. One of these challenges is perception. Many stakeholders across these industries assume that an electrically powered machine will not be able to perform to the level of their internal combustion counterparts – even when it has been shown that those electric vehicles can indeed do so. There is also the concern that charging these vehicles out in the remote regions in which they operate will be a problem. This concern is not limited to agricultural equipment; construction equipment, usually located in urban or suburban locales, can also face charging challenges since construction sites are often cramped and difficult to navigate. Finally, although battery technology is, as pointed out above, continually and rapidly improving, the problem of duty cycles is a big consideration. Both agricultural and construction equipment often sit idle for long periods and then can be suddenly called upon to operate intensively for many hours. The batteries that power these vehicles must be able to endure these long downtimes and still have sufficient charge left to accomplish the work their internal combustion counterparts are called upon to do, without needing to recharge during the workday. Solving These Challenges With the Beachhead