In our continuing series of discussions with top supply chain company executives, David Peacock of Hytrol shares how e-commerce has affected conveyor design and talks about his company's commitment to innovation.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
David Peacock is the president of Hytrol Conveyor Co. and a member of its board of directors. He began his Hytrol career in 2014 as executive vice president and became president in 2015. Peacock has led the company to back-to-back record growth years while implementing strategies to move Hytrol into the future. Before joining Hytrol, Peacock served in the U.S. Marine Corps from 1984 to 1996, departing with the rank of captain. He also spent 18 years in manufacturing management positions. He recently spoke with DC Velocity Editorial Director David Maloney.
Q: How does Hytrol view the current state of the material handling industry?
A: We are in a period we will remember our entire careers. Technology, information, and consumer patterns are all making significant advances that are creating unprecedented opportunities. No one really knows how long this market will last or exactly where it will lead, so we must all stay focused, nimble, and open to new possibilities.
Q: Recent statistics from CEMA (the Conveyor Equipment Manufacturers Association) show continuing growth in the unit load conveyor market. To what do you attribute this increasing demand?
A: E-commerce is obviously driving demand. Whether it is the big players or the traditional retail distribution organizations working to add e-commerce to their capabilities, everyone is responding to this vast channel.
Q: How has the growth of e-commerce affected the types of conveyors and sorters that Hytrol provides?
A: Speed, carton density, and operation tempo are all being impacted by e-commerce. The ability to process different package types—cartons of all shapes and sizes, poly bags, flats—is crucial. Our solution must utilize the equipment and technology capable of supporting the widest product mix. One area I see offering great opportunity is in processing returns. There are some facilities where the bulk of their labor is dedicated to processing returns. Making inroads in reducing this labor or minimizing returns has tremendous potential to assist those end users.
Q: Do you see the growing use of mobile robotic transport devices as a potential threat to long conveyor runs within facilities? How are you addressing and adjusting to possible changing markets?
A: If we were content with the status quo, we would probably see mobile robotics as a threat. Fortunately, we look at emerging technology as opportunities. Will the systems we design tomorrow look like those we implemented last year? Absolutely not, but why would we see that as anything but reflective of our commitment to innovation? We are on a journey—a journey that we want to help lead—and we have targeted between 1 and 2 percent of our revenue to be invested into product development. We intend to lead the way and are investing accordingly.
Q: You have worked in manufacturing operations throughout your career. How have you been able to bring your experience with lean manufacturing to Hytrol's own manufacturing processes to benefit your customers?
A: One of the keys to a lean operation is the standardization of processes. My background, both in manufacturing and in the military, has been focused on this type of standardization, and it's something that I've challenged our team at Hytrol to increase its focus on. By creating these standards, we can produce more while saving our customers time, money, and confusion.
Having said that, I'd like to offer two caveats. First, my team at Hytrol had enthusiastically embraced lean concepts before my arrival. You can't set foot in our 700,000-square-foot facility and not be blown away by lean work that has been done and the incredible coordination being done by the professionals driving this organization. Second, we also recognize that we cannot sacrifice our responsiveness to achieve standardization. The art is in the integration of both concepts.
Q: Your Hytrol team has begun to use virtual reality in your design simulations. Can you tell us how this helps customers better visualize how their new systems will operate?
A: Virtual reality can be used in a multitude of ways—not only to help customers visualize their solutions, but also to help them with everything from preventive maintenance to product testing. Before now, you always saw your system on paper and had to take steps to visualize it yourself. By programming different simulations, we can give customers the experience of seeing their products convey through their system, the space that will be utilized, and how the technologies employed will work together to give them a system that meets their needs. They will see chokepoints early in the design phase, and we will collaboratively work through those challenges before the first piece of metal is ever cut.
The exciting part is where we are going with this technology; its applications are evolving very rapidly and we have partnered with academia to develop technology to address several other challenges that our customers face. I can't wait for everyone to see what we're working on.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.