Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
Meir Gur-Lavi, an Israeli-born American with a laconic sense of humor, affixes a hairnet to his head and leads his guests into a suburban Atlanta warehouse brimming with the fragrant aromas of fermented dough and caramelized sugar.
Gur-Lavi runs the 50,000-square-foot DC of The Engelman's Bakery, a wholesale baker of breads and rolls founded in Atlanta in 1983 by Sammy Engelman and his sister Miriam, who is also Gur-Lavi's wife. In 1997, the company relocated to the gritty suburb of Norcross, Ga., where the Engelmans and Gur-Lavi built the DC that today sits adjacent to its corporate offices.
Gur-Lavi oversees a beehive of floor activity that functions virtually 24-7. But his newest pride and joy—and what he considers one of the company's better investments—sits some 30 feet above, embedded in the ceiling.
In the early fall of 2011, Engelman's replaced the approximately 200 metal halide lighting fixtures in its warehouse with an advanced form of "induction" lighting called "Optieo." The lights were developed by Intelligent Energy Optimizers LLC (IEO), a Norcross firm founded in 2006 by Nadav Sivan, an Israeli-born mechanical engineer and inventor. Sivan is IEO's president, CEO, and majority investor.
The lights, which are also found in Engelman's temperature-controlled areas, cost the company about $100,000 for the project design and material installation. Yet it expects to recoup its entire investment by the end of the first quarter of 2013, according to Gur-Lavi.
Gur-Lavi extends his arm in the direction of a forklift driver who steers his vehicle away from a spot on the floor, at which time an energy-saving motion sensor built into the fixture automatically prompts the light above the driver to shut off.
The lighting upgrade "is one of the best things we've done," he said.
Cool factor
Such comments are music to the ears of Sivan, who has been inventing things for more than 30 years. In the case of Optieo, he has developed technology to advance the use of an established commodity, namely the induction light, already considered the most economical and environmentally friendly lighting available in the marketplace.
The result, he says, is an innovative lighting design that provides longer, more efficient, and maintenance-free illumination while emitting less heat and wattage.
IEO said the lights can run 100,000 hours without being changed, providing a facility that operates nearly round-the-clock with 12 years of useful life per bulb. By contrast, today's typical industrial light has a 20,000-hour bulb life, according to IEO.
IEO said on its website that a 24/7 DC operator using 100 400-watt metal halide lights in its facility can save $21,300 a year in lighting, material, and labor costs by switching to the Optieo system. This translates into an 80 percent savings over traditional metal halide lighting for a typical facility operating around-the-clock, according to the company.
Beyond the electricity cost-savings, the longer bulb life means less time and expense involved in stopping operations so a worker can mount a ladder to change, re-ballast, and re-lump a fixture, Sivan said.
The bulb runs at 85 degrees Fahrenheit—much cooler than the 138- to 380-degree temperatures of most industrial lighting, according to the IEO website.
"Spark-free" ignition
In developing the Optieo lighting, Sivan used the basic principle of "magnetic induction," which is the process of using magnetic fields, rather than a spark, to ignite the bulb. He enhanced the quality of the bulbs by using amalgam—a solid-state mercury compound once commonplace in tooth cavity fillings—which, when the bulb is off, accumulates in a small vial attached to the tube, allowing for full regeneration.
Sivan then improved the bulb's internal components in order to create a more efficient illumination, reduce power consumption, and ensure a totally "green" disposal process. He also enhanced the ballasts and simplified the electronics to assure the bulb's longer life span and modified the light's reflectors so the illumination shines directly on the floor and isn't wasted as "glare" inside the bulb. This extends the bulb's life by producing less wattage and creates a more aesthetically pleasing work environment, he said.
"We took the standard induction light and improved it," Sivan said in an interview in his Norcross office.
IEO assembles its products in Norcross and Tampa, Fla., and sells into five continents. In the United States, it gets more bang for its marketing buck in states like New York and California that have high electricity costs compared with other regions. These states also have more attractive tax benefits to encourage companies to invest in energy-efficient equipment and technology.
Currently, Sivan focuses more of his time on manufacturing facilities that operate around the clock or close to it. That's because manufacturers, unlike warehouse operators, are engaged in production and can ill afford to have downtime while workers scurry around to swap out light bulbs.
Sivan also acts as a consultant, performing a detailed analysis of a customer's site and suggesting ways to improve efficiency and sustainability before any physical work is done.
Though IEO is in its sixth year, Optieo didn't hit the market until 2009. Since then, IEO's growth has been rapid. The company's 2011 sales jumped to $2.5 million from $500,000 the year before. As for 2012, sales are on track to hit $5 million by year's end, Sivan projected.
With efficiency and sustainability essentially ruling today's supply chain buying habits and with government incentives providing an ample tailwind, Sivan can't suppress a small smile when he talks about the future for his type of industrial lighting.
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."