DC Velocity talks with National Forklift Safety Day 2016 Chair Jim Radous about the goals of the third annual safety-focused event sponsored by the Industrial Truck Association.
Forklift safety will be a hot topic on Capitol Hill again this spring. On June 14, members of the Industrial Truck Association (ITA) and others will take part in the organization's third annual National Forklift Safety Day. This event provides an opportunity for the industry to educate customers, the public, and government officials about the safe use of forklifts and the importance of proper operator training.
Safety is one of Washington, D.C.-based ITA's biggest priorities. The organization, which represents manufacturers of lift trucks, tow tractors, pallet trucks, and automated guided vehicles in North America, promotes international standards for product safety, advances engineering and safety practices, and offers free safety seminars for OSHA personnel. ITA also disseminates statistical information and holds industry forums.
ITA says it hopes National Forklift Safety Day will provide greater awareness of safe practices as well as encourage safer behavior in warehouses, distribution centers, and manufacturing plants. That's a laudable goal and something that directly affects every environment where forklifts are in use.
To learn more about the event, we spoke with James J. Radous III, president of forklift manufacturer UniCarriers Americas Corp. and the National Forklift Safety Day 2016 chair. Here's what he had to say.
Q: What is the purpose of National Forklift Safety Day?
A: You asked about NFSD's purpose, but we think of it more as a mission. That mission is to reduce forklift accidents and to improve operator training. One key to improved operator training, of course, is to increase the awareness of its importance. This year, we expanded the scope to include pedestrian awareness as well.
According to the U.S. Bureau of Labor Statistics, in a four-year period including 2011 to 2014, 261 workers were killed in industrial truck accidents where the industrial truck was identified as the primary cause. Accidents and injuries, including fatalities, have been declining, but we need to keep driving those numbers down, because losing even one person is a tragedy.
Of course, we want organizations to focus on safety every day, not just on National Forklift Safety Day, but it's good to have a special day to highlight the issue. We're not just discussing this among ourselves within the industry, by the way. We also talk to national policymakers, and we were successful in getting a number of states to pass National Forklift Safety Day resolutions last year.
Q: What activities will the June 14 event in Washington include?
A: In the morning, we will have speakers, including forklift industry leaders like Brett Wood, chairman of Toyota Material Handling North America, who currently serves as chairman of ITA's board of directors. I will also be speaking as chair of National Forklift Safety Day. We will also hear from Jordan Barab, who is the deputy assistant secretary of labor for occupational safety and health, and second in command at the Occupational Safety and Health Administration (OSHA). We will also have someone from the National Safety Council as a speaker because we want to extend the discussion to include pedestrian safety. And we will hear from Rep. Tim Walberg of Michigan, who heads the House Subcommittee on Workforce Protections, which has OSHA oversight.
In the afternoon, we will have congressional meetings on Capitol Hill. Our purpose there is to make legislators aware of what we're doing and to thank them for their support of our agenda. Interestingly, several of the people we've met with in Congress have driven forklifts themselves, maybe for a summer job when they were in college, so they have an idea of what we're talking about.
Q: Tell us about ITA's relationship with OSHA.
A: We believe that we have an excellent relationship with OSHA because we've put a lot of effort into it. We've had a national alliance with OSHA for over 12 years now, and we'll formally renew that alliance for another five years the day before National Forklift Safety Day. We've given over 25 forklift safety seminars for OSHA personnel throughout the country, and we're planning on doing five more this year, which will give us a total of about 600 OSHA attendees for full-day safety sessions, which have been very well received.
We think these efforts and other alliance activities give us a reputation with OSHA as an organization that's committed to and knowledgeable about industrial truck safety. Even before our alliance began, ITA successfully petitioned OSHA to adopt detailed operator-training regulations that seem to have reduced accidents dramatically. Our current regulatory project is to ask OSHA to update its regulations to recognize the latest consensus forklift safety standard, updating the regulatory reference from the 1969 version of the standard to the 2012 version. This will recognize a significant number of safety improvements in forklifts over the last several decades. What all of this means is that we see a lot of value and put a lot of emphasis on our relationship with OSHA.
Q: How will ITA members be recognizing National Forklift Safety Day at the local level?
A: The best way to reach forklift owners is through their local dealers. A lot of dealers will be offering free operator training on that day. The free training day at the regional level is something we're really pushing. It was very successful last year. My company, for example, had completely full rosters all day long at all of the facilities where we offered it. If we can multiply that by all of our members' dealerships, then we'll really make an impact. We're developing online safety information and other materials we can get into the hands of the dealers and the end users.
Q: What is the main message ITA would like DC Velocity's readers to take away from National Forklift Safety Day?
A: The main message is that the most important asset in business is your employees and that the safety of your employees—not just forklift operators but also pedestrians—should be paramount. We need to provide a safe environment in order to consistently reduce accidents and hopefully eliminate mishaps related to the operation of forklifts.
Have you ever gone on YouTube and searched for "forklift accident"? You get over 120,000 results! Not all are U.S.-based, of course, but you can see what kinds of things happen when people don't follow safe practices.
There are so many examples of improper operation. Driving too fast, turning too fast, failing to warn pedestrians, improper braking, improperly securing a load—the list goes on and on. More than anything else, safety depends on a combination of properly maintained equipment and the right training for people. That's our message for National Forklift Safety Day.
Even as a last-minute deal today appeared to delay the tariff on Mexico, that deal is set to last only one month, and tariffs on the other two countries are still set to go into effect at midnight tonight.
Once new U.S. tariffs go into effect, those other countries are widely expected to respond with retaliatory tariffs of their own on U.S. exports, that would reduce demand for U.S. and manufacturing goods. In the context of that unpredictable business landscape, many U.S. business groups have been pressuring the White House to pull back from the new policy.
Here is a sampling of the reaction to the tariff plan by the U.S. business community:
American Association of Port Authorities (AAPA)
“Tariffs are taxes,” AAPA President and CEO Cary Davis said in a release. “Though the port industry supports President Trump’s efforts to combat the flow of illicit drugs, tariffs will slow down our supply chains, tax American businesses, and increase costs for hard-working citizens. Instead, we call on the Administration and Congress to thoughtfully pursue alternatives to achieving these policy goals and exempt items critical to national security from tariffs, including port equipment.”
Retail Industry Leaders Association (RILA)
“We understand the president is working toward an agreement. The leaders of all four nations should come together and work to reach a deal before Feb. 4 because enacting broad-based tariffs will be disruptive to the U.S. economy,” Michael Hanson, RILA’s Senior Executive Vice President of Public Affairs, said in a release. “The American people are counting on President Trump to grow the U.S. economy and lower inflation, and broad-based tariffs will put that at risk.”
National Association of Manufacturers (NAM)
“Manufacturers understand the need to deal with any sort of crisis that involves illicit drugs crossing our border, and we hope the three countries can come together quickly to confront this challenge,” NAM President and CEO Jay Timmons said in a release. “However, with essential tax reforms left on the cutting room floor by the last Congress and the Biden administration, manufacturers are already facing mounting cost pressures. A 25% tariff on Canada and Mexico threatens to upend the very supply chains that have made U.S. manufacturing more competitive globally. The ripple effects will be severe, particularly for small and medium-sized manufacturers that lack the flexibility and capital to rapidly find alternative suppliers or absorb skyrocketing energy costs. These businesses—employing millions of American workers—will face significant disruptions. Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.”
American Apparel & Footwear Association (AAFA)
“Widespread tariff actions on Mexico, Canada, and China announced this evening will inject massive costs into our inflation-weary economy while exposing us to a damaging tit-for-tat tariff war that will harm key export markets that U.S. farmers and manufacturers need,” Steve Lamar, AAFA’s president and CEO, said in a release. “We should be forging deeper collaboration with our free trade agreement partners, not taking actions that call into question the very foundation of that partnership."
Healthcare Distribution Alliance (HDA)
“We are concerned that placing tariffs on generic drug products produced outside the U.S. will put additional pressure on an industry that is already experiencing financial distress. Distributors and generic manufacturers and cannot absorb the rising costs of broad tariffs. It is worth noting that distributors operate on low profit margins — 0.3 percent. As a result, the U.S. will likely see new and worsened shortages of important medications and the costs will be passed down to payers and patients, including those in the Medicare and Medicaid programs," the group said in a statement.
National Retail Federation (NRF)
“We support the Trump administration’s goal of strengthening trade relationships and creating fair and favorable terms for America,” NRF Executive Vice President of Government Relations David French said in a release. “But imposing steep tariffs on three of our closest trading partners is a serious step. We strongly encourage all parties to continue negotiating to find solutions that will strengthen trade relationships and avoid shifting the costs of shared policy failures onto the backs of American families, workers and small businesses.”
Businesses are scrambling today to insulate their supply chains from the impacts of a trade war being launched by the Trump Administration, which is planning to erect high tariff walls on Tuesday against goods imported from Canada, Mexico, and China.
Tariffs are import taxes paid by American companies and collected by the U.S. Customs and Border Protection (CBP) Agency as goods produced in certain countries cross borders into the U.S.
In a last-minute deal announced on Monday, leaders of both countries said the tariffs on goods from Mexico will be delayed one month after that country agreed to send troops to the U.S.-Mexico border in an attempt to stem to flow of drugs such as fentanyl from Mexico, according to published reports.
If the deal holds, it could avoid some of the worst impacts of the tariffs on U.S. manufacturers that rely on parts and raw materials imported from Mexico. That blow would be particularly harsh on companies in the automotive and electrical equipment sectors, according to an analysis by S&P Global Ratings.
However, tariff damage is still on track to occur for U.S. companies with tight supply chain connections to Canada, concentrated in commodity-related processing sectors, the firm said. That disruption would increase if those countries responded with retaliatory tariffs of their own, a move that would slow the export of U.S. goods. Such an event would hurt most for American businesses in the agriculture and fishing, metals, and automotive areas, according to the analysis from Satyam Panday, Chief US and Canada Economist, S&P Global Ratings.
To dull the pain of those events, U.S. business interests would likely seek to cushion the declines in output by looking to factors such as exchange rate movements, availability of substitutes, and the willingness of producers to absorb the higher cost associated with tariffs, Panday said.
Weighing the long-term effects of a trade war
The extent to which increased tariffs will warp long-standing supply chain patterns is hard to calculate, since it is largely dependent on how long these tariffs will actually last, according to a statement from Tony Pelli, director of supply chain resilience, BSI Consulting. “The pause [on tariffs with Mexico] will help reduce the impacts on agricultural products in particular, but not necessarily on the automotive industry given the high degree of integration across all three North American countries,” he said.
“Tariffs on Canada or Mexico will disrupt supply chains beyond just finished goods,” Pelli said. “Some products cross the US, Mexico, and Canada borders four to five times, with the greatest impact on the auto and electronics industries. These supply chains have been tightly integrated for around 30 years, and it will be difficult for firms to simply source elsewhere. There are dense supplier networks along the US border with Mexico and Canada (especially Ontario) that you can’t just pick up and move somewhere else, which would likely slow or even stop auto manufacturing in the US for a time.”
If the tariffs on either Canada or Mexico stay in place for an extended period, the effects will soon become clear, said Hamish Woodrow, head of strategic analytics at Motive, a fleet management and operations platform. “Ultimately, the burden of these tariffs will fall on U.S. consumers and retailers. Prices will rise, and businesses will pass along costs as they navigate increased expenses and uncertainty,” Woodrow said.
But in the meantime, companies with international supply chains are quickly making contingency plans for any of the possible outcomes. “The immediate impact of tariffs on trucking, freight, and supply chains will be muted. Goods already en route, shipments six weeks out on the water, and landed inventory will continue to flow, meaning the real disruption will be felt in Q2 as businesses adjust to the new reality,” Woodrow said.
“By the end of the day, companies will be deploying mitigation strategies—many will delay inventory shipments to later in the year, waiting to see if the policy shifts or exemptions are introduced. Those who preloaded inventory will likely adopt a wait-and-see approach, holding off on further adjustments until the market reacts. In the short term, sourcing alternatives are limited, forcing supply chains to pause and reassess long-term investments while monitoring policy developments,” said Woodrow.
Editor's note: This story was revised on February 3 to add input from BSI and Motive.
Businesses dependent on ocean freight are facing shipping delays due to volatile conditions, as the global average trip for ocean shipments climbed to 68 days in the fourth quarter compared to 60 days for that same quarter a year ago, counting time elapsed from initial booking to clearing the gate at the final port, according to E2open.
Those extended transit times and booking delays are the ripple effects of ongoing turmoil at key ports that is being caused by geopolitical tensions, labor shortages, and port congestion, Dallas-based E2open said in its quarterly “Ocean Shipping Index” report.
The most significant contributor to the year-over-year (YoY) increase is actual transit time, alongside extraordinary volatility that has created a complex landscape for businesses dependent on ocean freight, the report found.
"Economic headwinds, geopolitical turbulence and uncertain trade routes are creating unprecedented disruptions within the ocean shipping industry. From continued Red Sea diversions to port congestion and labor unrest, businesses face a complex landscape of obstacles, all while grappling with possibility of new U.S. tariffs," Pawan Joshi, chief strategy officer (CSO) at e2open, said in a release. "We can expect these ongoing issues will be exacerbated by the Lunar New Year holiday, as businesses relying on Asian suppliers often rush to place orders, adding strain to their supply chains.”
Lunar New Year this year runs from January 29 to February 8, and often leads to supply chain disruptions as massive worker travel patterns across Asia leads to closed factories and reduced port capacity.
That changing landscape is forcing companies to adapt or replace their traditional approaches to product design and production. Specifically, many are changing the way they run factories by optimizing supply chains, increasing sustainability, and integrating after-sales services into their business models.
“North American manufacturers have embraced the factory of the future. Working with service providers, many companies are using AI and the cloud to make production systems more efficient and resilient,” Bob Krohn, partner at ISG, said in the “2024 ISG Provider Lens Manufacturing Industry Services and Solutions report for North America.”
To get there, companies in the region are aggressively investing in digital technologies, especially AI and ML, for product design and production, ISG says. Under pressure to bring new products to market faster, manufacturers are using AI-enabled tools for more efficient design and rapid prototyping. And generative AI platforms are already in use at some companies, streamlining product design and engineering.
At the same time, North American manufacturers are seeking to increase both revenue and customer satisfaction by introducing services alongside or instead of traditional products, the report says. That includes implementing business models that may include offering subscription, pay-per-use, and asset-as-a-service options. And they hope to extend product life cycles through an increasing focus on after-sales servicing, repairs. and condition monitoring.
Additional benefits of manufacturers’ increased focus on tech include better handling of cybersecurity threats and data privacy regulations. It also helps build improved resilience to cope with supply chain disruptions by adopting cloud-based supply chain management, advanced analytics, real-time IoT tracking, and AI-enabled optimization.
“The changes of the past several years have spurred manufacturers into action,” Jan Erik Aase, partner and global leader, ISG Provider Lens Research, said in a release. “Digital transformation and a culture of continuous improvement can position them for long-term success.”
Women are significantly underrepresented in the global transport sector workforce, comprising only 12% of transportation and storage workers worldwide as they face hurdles such as unfavorable workplace policies and significant gender gaps in operational, technical and leadership roles, a study from the World Bank Group shows.
This underrepresentation limits diverse perspectives in service design and decision-making, negatively affects businesses and undermines economic growth, according to the report, “Addressing Barriers to Women’s Participation in Transport.” The paper—which covers global trends and provides in-depth analysis of the women’s role in the transport sector in Europe and Central Asia (ECA) and Middle East and North Africa (MENA)—was prepared jointly by the World Bank Group, the Asian Development Bank (ADB), the German Agency for International Cooperation (GIZ), the European Investment Bank (EIB), and the International Transport Forum (ITF).
The slim proportion of women in the sector comes at a cost, since increasing female participation and leadership can drive innovation, enhance team performance, and improve service delivery for diverse users, while boosting GDP and addressing critical labor shortages, researchers said.
To drive solutions, the researchers today unveiled the Women in Transport (WiT) Network, which is designed to bring together transport stakeholders dedicated to empowering women across all facets and levels of the transport sector, and to serve as a forum for networking, recruitment, information exchange, training, and mentorship opportunities for women.
Initially, the WiT network will cover only the Europe and Central Asia and the Middle East and North Africa regions, but it is expected to gradually expand into a global initiative.
“When transport services are inclusive, economies thrive. Yet, as this joint report and our work at the EIB reveal, few transport companies fully leverage policies to better attract, retain and promote women,” Laura Piovesan, the European Investment Bank (EIB)’s Director General of the Projects Directorate, said in a release. “The Women in Transport Network enables us to unite efforts and scale impactful solutions - benefiting women, employers, communities and the climate.”