When NA 2008, the biennial material handling industry trade show and conference, opens its doors in Cleveland later this month, it will do so against a backdrop of economic uncertainty.
When NA 2008, the biennial material handling industry trade show and conference, opens its doors in Cleveland later this month, it will do so against a backdrop of economic uncertainty. The show's organizer, the Material Handling Industry of America (MHIA), expects a mild market contraction in the industry this year. The group's forecast calls for new orders in the material handling equipment sector to slow by some 5 to 7 percent in 2008, a decline from the 8-percent growth recorded last year.
For material handling equipment manufacturers, the bright spot in the picture right now is exports, which are forecast to grow 18 percent in 2008 before slowing modestly in 2009. The outlook is less rosy for domestic con- sumption. MHIA forecasts that consumption (ship- ments plus imports less exports) of this type of equip- ment in the United States will contract about 5 percent in 2008 and 2009.
Yet despite the economic instability, MHIA has high hopes for the show. It expects to draw some 500 materi- al handling and logistics exhibitors and thousands of buyers to the event, which will be held at Cleveland's I-X Center from April 21-24.
A chance to get educated
Promising to be one of the highlights of the four-day event is the keynote address by Andrew Winston, author of Green to Gold. In his address, titled "How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build High- Performance Supply Chains," Winston will discuss the business case for creating sustainable supply chains. (See our interview with Winston from the March issue.)
The conference also includes several other educational opportunities:
The NA 2008 Knowledge Center. One of four distinct centers at NA 2008, the Knowledge Center will feature free educational sessions on the show floor. The cen- ter will consist of specially designed theaters, where 45-minute seminars will offer information on trends, technologies, and innovations in material handling and logistics. Admission to the vendor-sponsored sessions is free to NA 2008 attendees. Visit NAShow.com for complete session details.
Weekend Educational Workshops. In addition to the on-floor seminars, NA 2008 will include a pair of educational workshops that begin on the weekend prior to the show's opening. Sponsored by MHIA, the workshops take place in classroom- style settings at the I-X Center. Separate registration and workshop fees apply. Workshop participants can earn continuing education credits.
The first of the two workshops, "The Basics of Material Handling A Foundation for Better Planning and Results," is a one and a half day program that begins on Saturday morning and wraps up mid-day on Sunday. The workshop provides an introduction to the field of material handling, including systems analysis, equipment selection, and the relationship of material handling to other activities and operations of the industrial plant or warehouse. The course serves as both an introduction to the field and as a refresher course for those who want an update on the latest trends. Participants will learn how to plan and analyze material handling systems, how to improve material handling operations, and when to apply material handling automation. Key features are case examples and a guided exercise to ensure mastery of the techniques presented.
The second workshop,"Lean Material Handling and Work Cells," runs from mid-day Sunday through Monday afternoon. The course examines how material handling enables lean manufacturing and what methods are typically favored when implementing lean practices and work cells. This workshop shows how to plan effective cells using a simple six-step procedure. It includes case examples and a guided exercise that ensures mastery of the techniques presented.
The instructor for both workshops is H. Lee Hales, president of Richard Muther & Associates, who will use material developed by the firm's professional engineers and consultants. Richard Muther & Associates is a consulting firm with expertise in material handling and cell planning.
Navigating the hall
In addition to these educational programs, NA 2008 will include a trade show featuring nearly 500 exhibitors. In order to help attendees find what they're looking for, show organizers have divided the 150,000-square-foot show floor into four distinct centers based on the products and services offered. In addition to the Knowledge Center (described above), they are:
The Center for Manufacturing & Assembly Solutions. Here's where you'll find a wide range of suppliers that specialize in component parts, attachments, and equipment and systems for the manufacturing and assembly environment. This center includes the latest advances in traditional material handling solutions that support manufacturing and assembly operations. Products, services, and solutions shown in this area include automated storage and retrieval solutions (AS/RS), automated guided vehicles (AGVs), overhead and lifting equipment, pallets and packaging, below/hook equipment, carousels, conveyors, storage equipment, casters, wheels and tires, ergonomic and safety equipment, automated assembly support, intelligent devices, work stations, light rail, and other assembly equipment and systems.
The Center for Fulfillment & Delivery Solutions. This center showcases both traditional and e-commerce fulfillment, order assembly, third-party logistics, warehousing, distribution, and transportation activities. The exhibitors you'll find here also provide systems and services that support consumer and business direct market strategies.
The Center for Information Technology (IT) Solutions. In this center, representatives will be on hand from companies that offer software solutions or consulting services that support manufacturing, warehousing, distribution, and logistics operations.
The latest equipment and solutions Exhibitors at the event will display a wide variety of solutions for moving, storing, controlling, and protecting materials and products. Among the technologies highlighted at this year's show will be equipment and systems in the following categories:
Material handling equipment and systems: AS/RS, automatic guided vehicle systems, robots, personnel/burden carriers, racks, forklifts, batteries, unit handling systems, manufacturing execution systems, warehouse management systems/logistics execution systems, ergonomic and safety equipment, carousels, modular drawer storage, shelving, and third-party logistics.
Packaging, containers, and shipping equipment: Box and carton makers, packaging machinery, wrapping, inspection of products by weight or scanning, pallets, wire baskets, plastic and metal containers, and palletizing equipment.
Inventory management and controlling technologies: Computers, controllers, software programs, systems integrators, warehouse management systems, wireless control systems, order management systems, and transportation management systems.
Dock and warehouse equipment and supplies: Dock levelers, dock pads, doors, forklift trucks, racks, flooring, handling systems, forklift attachments, conveyors, hoists, cranes, monorails, and below/hook lifting devices.
Consultants and distribution system planners: Simulators, modelers, system designers, distribution consultants, and third-party logistics providers.
Automatic identification equipment and systems: Bar-code printers and scanners, vision systems, voicerecognition systems, radio-frequency systems, and systems integrators.
How to register
The organizers of NA 2008 have made it easy to register and
prepare for the show. NAshow.com offers attendees access
to free badge registration, exhibitor search tools, floor
plans, matchmaker services, and a "My NAShow" Agenda
Planner to organize a personalized itinerary. It also offers
detailed information about the educational conference sessions as well as travel and hotel information.
On-site registration is $25, or $10 with VIP registration coupon available from exhibitors. Show hours are 10 a.m. to 5 p.m. on Monday, Tuesday, and Wednesday, and 10 a.m. to 3 p.m. on Thursday.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."