In our continuing series of discussions with top supply-chain company executives, Paul Roy of AutoStore discusses goods-to-person technology and how his company is meeting the challenge of finding automation technicians.
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.
Paul Roy has 26 years of experience in the material handling industry. Since 2017, he has been vice president and managing director of North America for AutoStore, a Norwegian-based supplier of automated systems that use robots to store and retrieve totes in dense vertical stacks. The company has more than 500 system installations in 30 countries.
Two years ago, Roy launched AutoStore's first U.S. corporate office and distribution center in Derry, New Hampshire. The facility, which provides sales, marketing, and service support for all of North America, features a fully functioning 3000-bin, 10-robot AutoStore system that's used for parts storage, order fulfillment, customer demos, and partner training. The site also houses the AutoStore Academy, the company's training program for sales, system design, installation, and service. To date, over 300 people have been trained through the U.S. AutoStore Academy.
Before joining AutoStore, Roy held management roles in marketing, sales, product management, and operations for companies including Kardex Remstar, Diamond Phoenix, System Logistics, and Modula. He is a member of the Roundtable Advisory Board of MHI.
Q: How do you view the current state of the material handling market?
A: It is an interesting and challenging time for everyone in the market, especially due to the Covid-19 pandemic. While some market segments, like retail, have been struggling, others, like grocery and e-commerce, are seeing record growth. With this growth, many of these customers see a clear need to add automation to their operations. This development is a huge boost for our industry, but it's not without some challenges. For example, these very busy customers struggle to find the time and resources to give automation projects the attention they need. Likewise, material handling suppliers, such as ourselves, must limit customer site visits for both sales and deployment teams due to travel and corporate policy restrictions.
I think everyone in the market believes there will be a "slingshot" effect going into 2021. Then the question becomes: Have material handling companies prepared for this by holding onto resources during this tough time, or are they working with a reduced staff? At AutoStore, we have continued to grow our organization globally in order to be ready for the recovery.
Q: Are you seeing the market for goods-to-person systems like AutoStore growing in response to the need for social distancing?
A: Absolutely. Goods-to-person picking allows companies to meet order fulfillment requirements while keeping people at assigned workstation zones arranged at safe social distances from other operators. The AutoStore technology provides an additional advantage as all items in the system are accessible by any operator from any workstation. This minimizes the need for orders to be picked from one zone and passed to another, as is required with other types of automation.
Automation in general can be a very powerful business tool and process. Its importance is being understood now more than ever before because, in most cases, automation provides a solution for order fulfillment with reduced personnel and less need for physical contact, keeping employees safe. AutoStore is also incredibly easy to learn; in a worst-case scenario, a new operator can be trained in a matter of hours, not weeks.
Q: You have many years of experience working for companies that make automated storage systems. How have the systems changed since you began your career?
A: Technology has become faster, more flexible, easier to deploy, more dependable, smarter, and more affordable. For too many years, there was a fear of automation, and customers were plagued by paradigm paralysis—forcing them to stay with what they knew, which was manual shelving and rack-based solutions. There was a concern that if they couldn't see their stock, they wouldn't have control of it. Even if they wanted to change, they still were convinced they could never afford automation.
I think the real question now is, can they afford not to automate? I'm certain there are companies that have already automated and are grateful they did before the pandemic impacted their business. The ones who haven't now need to find a way to get initiatives in place quickly. The productivity improvements that automation provides allow customers to do the same work with fewer operators or much more work with the same number. AutoStore technology is so flexible and scalable in its design, we call it "Future-Proof."
Q: AutoStore opened its New Hampshire office, service, and parts distribution center two years ago. In light of the current pandemic, are you finding benefits to having U.S.-based operations for serving North American customers?
A: Having a fully operational U.S. headquarters has been a big part of our growth here in North America. We have a completely integrated AutoStore picking system in our warehouse. This grid stocks all of the spare parts we sell to our integrator partners. This, in turn, supports their efforts to provide critical maintenance for their installed base, much of which is located in essential supply chain operations, without having to have parts shipped here from our factory overseas. Our U.S.-based service team has been an incredible resource in handling all front-line support, especially given travel restrictions between different countries.
We continue to invest heavily in our U.S. operations, even during these challenging times, and we will keep investing in the future. We see the U.S. market as one of our most important globally, and the support of our integration partners and customers is a top priority.
Q: Last year, AutoStore was acquired by THL, which also owns Fortna and MHS. Have there been any synergies created among the sister companies?
A: As we continue to grow, there are times when additional integration partners are needed in order to add more capacity to the partner network. In fact, Fortna was added as a new global integration partner in February. They joined as the sixth integration partner we support in North America; our other important integration partners in North America are Swisslog Logistics, Bastian Solutions, Dematic, Pulse Integration, and Kuecker Logistics. Each partner is unique and brings something different to the client.
Q: It's becoming increasingly difficult to find technicians to service automated equipment. How has your AutoStore Academy helped to train technical talent?
A: The AutoStore Academy has played an essential role in our continued success on a global scale. Our integration partners provide all of the service to the customer, so it is important they be properly trained. In the U.S. alone, we have trained more than 350 people through various programs over the last three years. Although a lot of this has been hands-on with the technology here in New Hampshire, the Academy platform has been used to organize, test, and educate in parallel. Now, with restrictions on travel, the AutoStore Academy has gone virtual so that we can continue to provide high-quality training.
Q: What do you think is the most important thing companies should focus on now in their supply chains?
A: The safety of their people. I could say filling orders as fast as possible due to the high demands of today's consumer, but in the end, it's the people. Without people you can't fill these important orders or even get the product you need from your supplier to fulfill orders. If you can't find the people or they are sick or concerned about getting sick, then you have a problem. Automation, and specifically AutoStore systems, enables you to do more with less and in a very safe environment.
It’s probably safe to say that no one chooses a career in logistics for the glory. But even those accustomed to toiling in obscurity appreciate a little recognition now and then—particularly when it comes from the people they love best: their kids.
That familial love was on full display at the 2024 International Foodservice Distributor Association’s (IFDA) National Championship, which brings together foodservice distribution professionals to demonstrate their expertise in driving, warehouse operations, safety, and operational efficiency. For the eighth year, the event included a Kids Essay Contest, where children of participants were encouraged to share why they are proud of their parents or guardians and the work they do.
Prizes were handed out in three categories: 3rd–5th grade, 6th–8th grade, and 9th–12th grade. This year’s winners included Elijah Oliver (4th grade, whose parent Justin Oliver drives for Cheney Brothers) and Andrew Aylas (8th grade, whose parent Steve Aylas drives for Performance Food Group).
Top honors in the high-school category went to McKenzie Harden (12th grade, whose parent Marvin Harden drives for Performance Food Group), who wrote: “My dad has not only taught me life skills of not only, ‘what the boys can do,’ but life skills of morals, compassion, respect, and, last but not least, ‘wearing your heart on your sleeve.’”
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.
DAT Freight & Analytics has acquired Trucker Tools, calling the deal a strategic move designed to combine Trucker Tools' approach to load tracking and carrier sourcing with DAT’s experience providing freight solutions.
Beaverton, Oregon-based DAT operates what it calls the largest truckload freight marketplace and truckload freight data analytics service in North America. Terms of the deal were not disclosed, but DAT is a business unit of the publicly traded, Fortune 1000-company Roper Technologies.
Following the deal, DAT said that brokers will continue to get load visibility and capacity tools for every load they manage, but now with greater resources for an enhanced suite of broker tools. And in turn, carriers will get the same lifestyle features as before—like weigh scales and fuel optimizers—but will also gain access to one of the largest networks of loads, making it easier for carriers to find the loads they want.
Trucker Tools CEO Kary Jablonski praised the deal, saying the firms are aligned in their goals to simplify and enhance the lives of brokers and carriers. “Through our strategic partnership with DAT, we are amplifying this mission on a greater scale, delivering enhanced solutions and transformative insights to our customers. This collaboration unlocks opportunities for speed, efficiency, and innovation for the freight industry. We are thrilled to align with DAT to advance their vision of eliminating uncertainty in the freight industry,” Jablonski said.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.