Military veterans are highly qualified for jobs in logistics and warehousing, but the transition from the armed forces to private industry isn't always easy. Understanding the differences will help ensure a successful experience for everyone.
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.
With the U.S. military presence in Afghanistan on the wane and the war in Iraq over, thousands of troops from all branches of the armed forces have been coming home, and thousands more are expected to return over the next two years. Some choose to stay in the armed forces, while others seek jobs in the private sector.
According to government statistics, military vets—many of whom have experience in logistics, material handling, and warehousing—have a higher unemployment rate than the population at large. Meanwhile, employers are having a hard time finding qualified people to fill positions in those same areas. Clearly, this is a first-class opportunity to match talent supply with employer demand.
Yet a successful match is not guaranteed. There are enough differences between the armed forces and private industry that the transition isn't always easy. Understanding those differences can help both veterans and employers make that transition a successful one.
Reach out and recruit someone
Interested in recruiting military veterans for warehousing and logistics positions? Here are a few suggestions on how to reach out to them and let them know of your interest:
Work with local and state veterans agencies, which have databases of unemployed vets and can help to set up open houses and collect applications.
Advertise in military publications or on any of the dozen or so Internet job boards that are aimed at military personnel (check that they are affiliated with or approved by military support organizations), as well as on general logistics job boards like JobsInLogistics.com and JobsInTrucks.com.
Work with economic development agencies in areas that have a heavy military presence, particularly logistics and supply facilities. One example is the greater Jacksonville, Fla., area, which hosts four military installations, including major logistics hubs for the Marine Corps and the Navy. The city of Jacksonville's Military Affairs, Veterans, and Disabled Services Department; the Veteran's Coalition, a group of local employers; and the Jacksonville Chamber of Commerce's Military Issues Committee (MIC) all offer support for employers who want to hire veterans.
THEY HAVE THE RIGHT STUFF
Employers seeking to hire for warehousing and logistics jobs may be surprised at how many military veterans are knowledgeable about those activities. Overseas-deployed personnel, for instance, have extensive experience managing the accountability of equipment and assets across several locations, says Jason Dozier, veteran transition specialist at the nonprofit Hire Heroes USA and a former U.S. Army officer who served in Iraq.
"Even veterans who may not have an extensive background in logistics have broad experience with freight management and distribution while overseas," Dozier notes. For example, a typical experience for an infantryman in Iraq would include the inventorying, containerization, and loading of assets at a forward operating base, and then securing and escorting those assets to a distribution hub, he says. Other personnel would manage and supervise the distribution operations of unimproved airstrips, field logistics terminals, shipping docks, warehouses, and other facilities.
Similar processes apply at military installations here at home, so domestically deployed veterans also have an understanding of operations, logistics, and the allocation and maintenance of military assets, Dozier says. Vets often are certified as forklift operators, and many are trained in the maintenance and operation of rough-terrain forklifts that can handle loads weighing up to 10,000 pounds. Furthermore, some military personnel know how to use tools like the Army's Logistics Support Activity (LOGSA) system, which analyzes logistics data and information, and are schooled in Lean Six Sigma. (Click here to read Dozier's commentary on why military veterans make great warehouse employees.)
But military veterans have a lot more to offer than hands-on experience. "They have skills we're all interested in: good team leadership, a strong work ethic, adaptability, and the ability to solve a problem on the spot, often under time pressure or duress," says Jeff Rufener, president of Toyota Material Handling U.S.A. Inc. (TMHU). TMHU offers veterans a discount on its forklift operator safety training, and through its "Giving Veterans a Lift" program is working with its dealers and Hire Heroes USA to train ex-military personnel as lift truck service technicians. After three months on the job, the dealer and TMHU make matching donations in the vet's honor to the nonprofit.
The military develops officers' skills in planning, setting objectives, evaluating results, and training subordinates. Every member is trained in leadership, and many veterans have been put in leadership positions early in their careers, says Aaron Bowman, a senior vice president at the economic development agency JAXUSA Partnership of Northeast Florida. "Veterans know how to give and how to receive orders," says Bowman, a retired Navy officer who began his career as an aircraft carrier pilot and capped it with a stint as commanding officer of a naval station.
Personnel who stayed in the military beyond their initial contract probably have led a team, a platoon, or a functional group—something outside of an individual-contribution role, says Ed Tobon, director of staffing for Ryder System Inc. As a result, "compared with their civilian counterparts of a similar age, they bring a lot more 'soft' skills," says Tobon, a commander in the U.S. Navy Reserve who served for more than 20 years in the Navy, including active duty as a pilot and a recruiter. Since 2010, Ryder has participated in the U.S. Chamber of Commerce's "Hire Our Heroes" initiative and has pledged to hire 1,000 military veterans by the end of 2013.
Here's another reason why vets are a good fit for logistics and warehousing: Because military operations focus on achieving specific, definable objectives, military personnel will look for resources to accomplish a logistics mission and are driven by outcomes. "The team-based, mission-driven logistics operations in our civilian society, with their focus on specific deliverables, are as closely aligned with military activity as any in private industry," says Mike Echols, Ph.D., executive vice president of strategic initiatives and of the Human Capital Lab at Bellevue University in Omaha, Neb. The nonprofit Bellevue offers a special academic program to prepare military veterans to transition to the private sector and partners with the Defense Acquisition University to offer degree and training programs.
Dick Lucas (left, as a new recruit in 1978) was able to apply the skills he learned as an Air Force aircraft hydraulics and electronics technician to his new job working on high-tech forklifts at PennWest Toyota Lift.
ADVICE FROM THE FRONT LINES
For many veterans, the transition to the private sector environment goes smoothly. Dick Lucas, a service technician with the lift truck dealer PennWest Toyota Lift and the first "graduate" of Toyota's hiring program, found that the adaptability and the skills he acquired in the Air Force as an aircraft hydraulics and electronics technician were invaluable when he began learning how to service today's high-tech forklifts. His experience with parts ordering and documentation also helped him adjust to the system at Toyota, he says. Now, Lucas is paying it forward: He's taken under his wing a recent hire, who was injured in Iraq, and has retrained him as a lift truck technician.
But there are some differences between the military's approach to employment and the private sector's expectations that can affect vets' ability to succeed in private sector jobs. For example, veterans are used to a dynamic and challenging environment. "Many veterans do not know the meaning of a traditional 40-hour week, so having them involved in an organization that offers a challenge and seeks constant improvement is a requirement," says JAXUSA's Bowman.
Military and civilian vocabulary differ significantly, says Tom Stephanic, PennWest's fleet facilities and inventory manager, who served as a track and wheel repairer in the Army. "I didn't understand some of the terminology the civilian workforce used. For example, they called it a 'purchase order,' but I was used to a 'document number.' It's the same thing, just a different name ... but it can affect the way people transfer knowledge. People assumed I knew what they were talking about." Unfortunately, he says, an employer might see this as a weakness or a lack of understanding instead of the bridgeable communication gap that it is.
The way military personnel communicate with superiors can be very different from the approach favored by the private sector. "If the hiring manager is perceived to be higher ranking, then you are likely to get 'yes, sir, no sir' responses rather than the open dialogue you want," Tobon says.
Their experience and training discourages military personnel from questioning superiors. "They know their unit is one part of an overall mission plan and that they need to carry out their assignment within that mission," Echols observes. "They're good problem solvers, but they don't challenge authority. You won't hear a veteran ask, 'Why do we do it this way?' Over time, yes, but not at first."
How to overcome veterans' reluctance to blow their own horns or to engage in an open dialogue with the boss? Echols says they may need to be taught what the private sector wants. That's why Bellevue University has developed its three-semester "Cornerstone" curriculum to help veterans learn how to manage that transition. The curriculum includes courses on managing change, technology and modern society, well-being and personal finance, and personal communication skills. "Cornerstone is designed to help them learn the language of decision making in a civilian setting," Echols explains.
Ryder's Tobon suggests helping military personnel prepare for the interview, as well as training hiring managers and human resources professionals in how to break the ice and handle the nuances they might encounter when talking to a vet, especially one who is transitioning from active duty. It's also important to "onboard" properly, helping new hires assimilate into the corporate culture. That includes making hiring, training, and promotion policies clear—it can be discouraging for someone who's already been in a leadership position to have to work their way up through the ranks again. "For recently separated vets, it's their first exposure to corporate America, so you need to make sure your onboarding program is solid," he says.
That can include being flexible about medical appointments for an injured vet, and recognizing that veterans, especially those who have been in combat, may find it hard to adjust to business routines after months or years of dangerous duty. Similarly, it's important to recognize that they may be dealing with different stresses and medical issues than other employees. (See the sidebar "PTSD: The elephant in the room.") Pairing up a new hire with another vet who's been through the same experience can be helpful, too.
Echols says employers who are considering hiring veterans should not be put off by the extra effort it may take to help them succeed in the private sector. Instead, think of it as a worthwhile investment in the future. "When the baby boomers are gone, we will need new leaders," he says. "Military veterans have all the attributes and character of people who can be leaders. That's why hiring companies should be interested in the development of these individuals. They should be thinking not just about what they can do today but about what they can be tomorrow."
PTSD: The elephant in the room
When it comes to hiring military veterans, the "elephant in the room" is post-traumatic stress disorder, or PTSD. Though difficult to discuss, it's an issue that can't be overlooked: About 20 percent of exiting military personnel either have PTSD or some degree of traumatic brain injury, according to Mike Echols, Ph.D., executive vice president of strategic initiatives and of the Human Capital Lab at Bellevue University in Omaha, Neb. Nonprofit Bellevue offers a special academic program to prepare military veterans to transition to the private sector.
Being in a high-stress, adrenaline-filled environment day after day "rewires the brain," so that a combat vet may continue to be in a high-adrenaline state after returning to civilian life, Echols says. Sudden, loud noises and other unusual or unexpected situations may trigger a reaction or anxiety in the individual. In that case, the vet may simply have to walk away for a short time to calm down and recalibrate.
In Echols' experience, employers can help by first doing some research and learning about the condition. He cautions against making assumptions based on sensational news stories or hearsay. Reach out to any affected employees and make sure they understand that you are not judging them, that their medical condition will not affect their employment status, and that you understand and support their need to get medical treatment and/or counseling to help them adjust to the civilian environment. And take advantage of the information resources available from the Veterans Administration and other organizations that assist with the military-to-civilian transition.
"The dilemma for employers is that we know it's the right thing to do to hire vets who risked their lives for the country," says Echols. "But we have to understand that they risked more than their physical lives." He urges employers to invest time in learning about the condition and how to accommodate employees who have it—just as employers make accommodations for workers with other chronic medical conditions.
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."