Think there's nothing new in lift truck batteries and associated equipment? Not so. Here are four trends that could have a big impact on how you manage those assets.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Let's face it: Lift truck batteries and associated equipment—such as battery changing, monitoring, and charging systems—aren't the sexiest things in the warehouse. They're not as glamorous as robots or as attention-grabbing as high-speed conveyor systems. As a result, they're often taken for granted.
But these workhorses of the warehouse and DC are especially worthy of attention right now. Several factors—including technology, the economy, the environment, and regulatory controls—are having a notable impact on what buyers of batteries and associated equipment are purchasing and how they manage those assets.
What can you expect down the road? Here are four trends to watch.
1. Companies will adopt more efficient charging systems. Although high-frequency chargers have been available in Europe for years, they're now becoming a hot topic in North America. Most chargers for industrial batteries used here are ferroresonant or silicon-controlled rectifier (SCR) types, but these typically have only a 60- to 80-percent efficiency rate for converting AC current into the DC current needed to charge a battery, explains Steve Spaar, marketing director-Americas for the battery maker EnerSys. They also require large transformers that include costly commodities like steel and copper.
High-frequency charging technology, which uses a different type of switching componentry, doesn't require large transformers. These chargers have an efficiency rating of at least 90 to 92 percent and many are even higher, Spaar says. Fleets that use this technology typically see slightly lower electric bills. Electric utilities like these high "power factor" chargers, and many are willing to give a rebate to the end user for purchasing them, Spaar says. Buyers also can get LEED credit for installing these efficient charging systems.
There's no question that high-frequency chargers are becoming more prevalent, says Dan Dwyer, vice president and general manager of Sackett Systems, a manufacturer of battery handling equipment. "About 80 percent of the systems we've installed this year have some sort of high-frequency chargers involved," he says. For those installations, his company has had to modify the racking configuration in its multilevel battery changing systems because most high-frequency chargers have a smaller footprint and are mounted differently than traditional equipment, he says.
Concerns about electricity costs are encouraging lift truck fleet managers to reconsider not just how but when they charge their batteries, says Arun Patel, president of Access Control Group, a provider of asset management solutions for lift truck fleets. Charging during peak hours when electricity rates are highest, especially during the summer, can raise costs, he points out. By collecting and analyzing battery usage data, managers may find that they don't need to charge every battery at the same time or that some batteries are getting little enough use that they could be charged at night instead, he notes.
2. Regulatory restrictions will increase. Battery charging systems have come under scrutiny in California, where the California Energy Commission has proposed a regulation that would ban the sale of certain types of chargers in the state. The rule would apply to both consumer and industrial chargers.
The commission believes that charging devices that more efficiently convert AC electricity from the power grid to DC electricity stored in the battery will greatly reduce the billions of kilowatt hours of wasted energy generated by battery chargers in California each year. According to the commission's draft proposal, the regulation would require all chargers to shut off the flow of electricity after the battery has been fully charged. It would also set standards for the charge return factor (the amount of energy applied to a battery compared to the amount extracted from it) as well as for the efficiency in converting high-voltage AC to lower-voltage DC, power losses occurring in circuitry during charging, how well a charger synchronizes with the electric utility's 60 Hz cycle, and the amount of power the device draws to keep a battery at full charge. Finally, it would require that the charger draw no power when no battery is attached and the charger is in standby mode.
The proposed standards could make it illegal to sell SCR and ferroresonant chargers, according to Spaar. The commission is expected to issue its proposal this summer; if adopted, the standards could take effect as early as July 2013 for industrial chargers. It's believed that California is the only state planning to regulate chargers, but if the measure should prove successful, then other states might adopt similar rules.
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Looking for a supplier of batteries, charging systems, handling equipment, or monitoring systems? Here are just some of the many companies that offer these products.
3. Battery rooms will get "lean." Lean systems are becoming ubiquitous in manufacturing, and lean processes have been making headway in logistics and warehousing. So why not in the battery room? Lean is all about the systematic elimination of waste. Of the eight wastes that lean processes address, six (transportation, inventory, motion, people, waiting, and defects) exist in battery rooms, says Hal Vanasse, vice president of sales and marketing for Philadelphia Scientific, a provider of battery management systems. "People are happy to throw money at battery rooms, but they do not look systemically at what's going on and how to reduce waste," he says.
Almost any process related to changing and charging batteries can be wasteful and inefficient, Vanasse points out. For example, if you're checking the water levels of batteries that don't need water, then you've wasted time, money, motion, and people. If operators are queuing for battery changes because of poor charging practices or slow watering, then you're wasting time and people. And having more batteries than are needed for the required work produces costly excess inventory. All this waste can add up to tens of thousands of dollars annually, even for a small fleet, he says.
Not surprisingly, Vanasse touts electronic battery management systems as a tool for ensuring that only necessary tasks are done, and in the most efficient way. But he's hoping that the concept of lean itself will catch on with every company that uses industrial batteries, whether they adopt battery management systems or not. "The interesting thing about the lean framework is that it has a feedback mechanism that requires you to measure what you are doing against a plan, then make decisions that will lead to improvement," he explains. "It's systematizing not what we do, but what we should do."
4. Fleet managers will look to get more productivity out of existing assets. There is tremendous pressure on fleet and battery room managers to improve their return on assets, says John Kim, general manager of Aerovironment's Power Systems Business Unit, which supplies battery charging systems and accessories. "Management wants more out of that same piece of machinery and the people who use it," he observes.
Vendors are responding to that pressure by developing new technologies specifically aimed at achieving more with less. Kim's company, for instance, currently has a product under development that will allow users of fast chargers to charge two trucks from a single port. Port Splitter, as the device is called, does "sequence charging," constantly checking the state of charge for two batteries and automatically charging one or the other as needed.
Other vendors have focused on devising ways to give customers better management information. One of Access Control Group's products, for instance, lets forklift fleet managers integrate data from disparate sources like asset management and battery management systems for analytical purposes. "That way, they can combine them in a single view of how the whole mobile asset is working," Patel says. "You need a good picture in one screen that includes information that comes from different sources."
The pressure to improve asset utilization is also behind the rapidly growing interest in electronic battery management systems, says Dwyer of Sackett Systems. "We're seeing an increase in requests for battery management systems software because it helps customers with both operational decisions and capital decisions—for instance, which batteries they need to replace and how much they need to allocate from a budgetary perspective."
Indeed, says Kim, battery management systems that used to be a luxury are now seen as a necessity. Those systems' ability to prolong battery life, which is what drives a battery's total life-cycle cost, makes them worthwhile investments, he says.
Technology is important, of course, but battery owners also are seeking personal advice on how to get more benefit from existing assets, according to Spaar. "Customers now are looking to us not just to sell batteries and charging systems to them; they want us to be more involved in that part of their business," he says. "They want us to be the experts in what we are selling to them and advise them on how to best utilize them."
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."