In our continuing series of discussions with top supply-chain company executives, Aaron Jones of Bastian Solutions discusses the impact of the coronavirus, support for STEM education, and life as a systems integrator.
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.
Since becoming president of Bastian Solutions in 2014, Aaron Jones has led this growing material handling systems integrator through its successful transition to a subsidiary of Toyota Advanced Logistics. Jones has been with Bastian Solutions since 2010, serving as a regional manager, national director, and vice president before taking on his current role as president. He previously worked as a product design engineer at Ford Motor Co./Visteon Corp. From 1997 to 2000, he played professional baseball within the New York Yankees organization.
Jones has received several patents for Bastian Solutions in robotic applications and automated guided vehicles (AGVs). He also led three strategic acquisitions for the company in the software, consulting, and AGV functional areas. Under his leadership, Bastian Solutions has twice been recognized as one of the Best Places to Work in Indiana by the Indiana Chamber of Commerce. The Indianapolis Business Journal named Bastian Solutions the area’s largest engineering firm in 2020.
Jones holds a master’s degree in engineering management from Wayne State University in Detroit and a bachelor’s degree in mechanical engineering from Southern Illinois University, where he was an All-American baseball player. He recently spoke with DC Velocity Editorial Director David Maloney.
Q: How has the Covid-19 pandemic affected your company and customers so far?
A: The challenges we face as a company and the challenges our customers face are present every day. With that said, we’ve worked incredibly hard to put the necessary safety precautions in place for our employees and for our customers to keep projects on track. The execution and delivery of these projects has changed, but they’re still moving forward. Each is maintaining social distancing and following the necessary precautions with respect to sanitation and PPE. Securing these materials has been challenging, but a top priority for us is keeping our project teams and manufacturing employees safe.
Our next priority has been ensuring the success of current projects and supporting our customers however we can. With the pandemic, of course, there are greater global supply chain challenges, but we have worked hard to limit those—which is a significant benefit of being an independent systems integrator as opposed to relying only on our internal manufacturing. As a global integrator, we can reach out to a wide range of supply networks. If there are delivery or supply chain issues in a certain region or country, we can go to a different region to help mitigate those issues for our clients.
Q: Has the pandemic changed any plans or major initiatives slated for the remainder of the year?
A: The pandemic hasn’t changed any of our overall plans. In fact, we feel that coming out of this pandemic, there is going to be even more demand for the goods and services we provide.
While it hasn’t changed any of our plans, it has inherently delayed them for a few months. We continue to hire and expand through the pandemic, though not as quickly as we had hoped. Once we come through this pandemic, there is going to be greater demand for advanced technologies that provide supply chain visibility and agile operations, areas in which our products and services can truly help; thus, we want to continue to invest in our team and look to the future.
As for our customers, we seem to have two types at the moment: those who have invested in automation (and they sure are happy that they have invested), and those who wish they had automated their facilities before this pandemic. Our goal is to assist those companies in planning for and creating post-Covid operations to address changes in consumer behavior. For example, with most stores in the country closed, the only way to reach clients is digitally—which has made home delivery and curbside pickup imperative.
When you look at the results of the pandemic, as we rebound from the social changes we are left with, we will see a greater sense of social distancing, which goes hand in hand with automated fulfillment systems. There will be lasting changes, so we look forward to supporting our customers through it all.
Q: Bastian Solutions is now part of Toyota Advanced Logistics, which also includes Vanderlande, and is a sister company to Toyota Forklifts and Raymond under the Toyota Industries Corp. (TICO) umbrella. Have you been able to create synergies or joint projects with the other brands?
A: When you look at Toyota’s interest in acquiring Bastian Solutions and Vanderlande, its goal and mission was to provide the greatest level of full turnkey solutions in automation across the globe, which is now largely in effect.
Within TICO, we have a laser focus on global markets of all sizes. There has been very strong correlation across all the TICO companies and our customers to continue to provide our clients with the most comprehensive solutions in the world.
Fork trucks are becoming more and more a part of integrated solutions each year, thanks to their growing sophistication and expanding capabilities. The industry is at a stage where we are getting close to fully automated distribution facilities, and I think going forward, fork vehicles will be so well integrated into the automated systems that they’ll largely be viewed as another piece of equipment, like you’d look at a robot or an AS/RS crane.
Q: Last year, Bastian Solutions opened an advanced manufacturing facility in Indiana. What does that facility provide for you in terms of capabilities and capacities?
A: The primary focus of the facility is to manufacture conveyor, but our commitment to the market and our clients, first and foremost, is that we are an independent integrator. In the last 65 years, we have supplied a large variety of technologies, including a large variety of conveyor—that isn’t going to change with our strong focus on integration. This facility in Indiana provides us with a high-quality conveyor option for our clients; however, we do still leverage other trusted conveyor suppliers that we’ve integrated with for many years. We are consistently reminded that this is the advantage we provide our clients and our first commitment is to our customers. We are going to provide them with the best product available for their system, regardless of where that product comes from.
Q: Bastian Solutions has been recognized as one of the best places to work in Indiana. To what do you attribute that success?
A: We are very proud to have received this award for the second time. Based on an independent employee survey, I can attribute the success to a very keen focus on the satisfaction and feedback of our employees. We listen and look for ways to make their time at Bastian Solutions more enjoyable.
In this day and age, employees have options. Social media is a friend or enemy, depending on how companies treat their employees. Companies must be flexible, progressive, and accommodating. Our human resources team, along with our leadership team, continues to monitor feedback and working conditions, always looking for ways to excel. I look at this award as a report card for how we did this year. We continue to look for innovative ways to serve our employees and will hopefully receive the award for many years to come.
Q: In your career, you worked at Ford Motor Co. and played professional baseball in the Yankees organization. What did those experiences teach you about leadership and team building that you now apply to your role as president of Bastian Solutions?
A: I couldn’t ask for a better experience at either organization. In the mid-90s, the Yankees were leaders in attracting cultural diversification. We had around 60% of the entire organization come from outside the U.S. The cultural differences were significant, and it was a tough adjustment for some players from other countries. I had to learn to function on a diverse team. I think the biggest thing that the Yankees and professional sports taught me was a keen desire to win, but more importantly, it taught me how to lose gracefully. Playing 160 games a year and racking up 100 wins is a good team, but you still lost 60 times. Baseball and athletics at that level taught me how to succeed and fail with grace.
My time with Ford and Visteon taught me how to respect diversification not only on your teams but also by market and country. I also learned about large-scale manufacturing and supply chain. One of my first tours was of an assembly line of a major automotive factory, and it was very eye opening.
Q: You’ve been an advocate for STEM (science, technology, engineering, and math) education. Why is this critical to the future of the industry?
A: The industry is undoubtedly changing at an incredible speed. I have confidence in saying that while the job market has changed significantly over the last 20 years, the change over the next 20 years will happen at an even faster pace.
With regard to STEM and being of an engineering background, I like to encourage schools to not only consider the engineers and scientists that these programs will turn out, but even more so, the technicians. The available secure and stable jobs in the future will require a technical understanding and competence. When I encourage these schools, I emphasize that even with a great track record of producing engineers, we need to also focus on the technicians who might not go through a typical four-year or two-year degree program—we need to give them the technological background to be successful as well.
In many cases, if we put the right programs in place, a senior in high school can graduate with a two-year degree in some sort of technical field and get a really good job. The competencies required to operate automated equipment and understand sensors and PLCs [programmable logic controllers] and software programs do not require someone to write the code or to design the technology, but to understand how everything works, be able to operate it, and be a system expert.
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."