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.
John Paxton has worked in material handling for most of his professional life. His vast management experience in the industry and his well-honed interpersonal skills made him the ideal person to assume the reins of MHI, North America’s largest material handling, logistics, and supply chain association. Paxton had been COO/CEO designate before assuming the role of CEO at the beginning of this year. That tops off his 30+-year career in the industry, which included more than 20 years in executive positions at Demag Cranes and Components.
While with Demag, he served as a volunteer leader at MHI. Those leadership roles included president of the Crane Manufacturers Association (CMAA), president of the Hoist Manufacturers Institute (HMI), and chairman of MHI’s board of governors.
Paxton is a graduate of The Ohio State University with a bachelor’s degree in mechanical engineering and Kent State University with an MBA focused on international business. He spoke recently with DC Velocity Editorial Director David Maloney about the industry and MHI’s role in it.
Q: You have diverse experience in engineering, manufacturing, design, and, of course, management with material handling companies. How did that prepare you for your new position as CEO of MHI?
A: While I was with Demag Cranes, we were members of MHI. Through volunteer work at the association, I was involved in many different areas and leadership roles at MHI as a member and, ultimately, as chairman of MHI’s board of governors. Those experiences gave me a broad overview of all the different aspects of material handling in the supply chain.
Q: How do you view the current state of the material handling industry?
A: The first term I’d use to describe the industry’s state is “accelerated innovation.” Things were moving quickly with the innovation piece in our industry over the last five years, but this past year, the pandemic really accelerated the development of solutions, new ideas, and innovation.
The second word that comes to mind is “essential.” The pandemic—and the pandemic-driven supply chain disruptions—has highlighted the essential role of the supply chain in our daily lives.
Q: As you noted, the pandemic has finally put the supply chain—along with material handling and distribution in general—on the map. What do you think will be the pandemic’s lasting impact on supply chain operations?
A: Supply chains certainly won’t go backwards. They won’t return to where they were. I think the lasting impact is that companies will retool their supply chains with flexibility and resiliency in mind, so they’ll be better prepared for future disruptions.
The other part is the pandemic’s role in driving the growth of e-commerce. People have become accustomed to buying whatever they need online, including items they would never have considered purchasing that way before, like groceries. Or as another example, we recently bought Girl Scout cookies online and they showed up in one day. It has become a natural part of our day-to-day lives, and I see that trend accelerating.
Q: As e-commerce continues to explode, consumers haven’t eased off on their demand for order accuracy and delivery speed. Does that put a strain on our supply chains and, by extension, the companies that supply the equipment needed to support that demand?
A: The increased demand is driving investment in those technologies and, ultimately, it’s driving innovation. Systems manufacturers are very busy because of this investment, and it is also pushing and driving innovation in new products and solutions.
Q: As the association for the industry that supports material handling, hardware, software, and the other technologies that enable warehousing, distribution, and manufacturing, what do you see as MHI’s role moving forward?
A: I see our role as helping connect practitioners who are looking for solutions with the suppliers who can provide those solutions. It’s where people can come to find those products and solutions and also gain education and knowledge. MHI is really a collaborative community, where both the practitioners and the suppliers can prosper.
Q: Speaking of those connections, MHI’s big material handling show, ProMat, is going virtual this year due to the ongoing pandemic. How will that work?
A: With the cancellation of the live show, MHI really had two choices: We could just start preparing for the next live show, which would be Modex in 2022. Or we could use our brand power, attendee contacts, and MHI’s market position to bring the industry together digitally. We use the term “digitally” because it is not our intent to create a virtual show; it is our intent to bring together the people who are looking for solutions and knowledge and the people who can provide those solutions and knowledge within a single digital platform.
Our decision was to go with the second choice and launch ProMat Digital Experience, or ProMatDX.
Q: What will that experience be like for attendees?
A: The first thing is that the platform will have 400 of the top suppliers in the industry. So basically, we have “collected” the industry and put that on a digital platform for attendees. When they go to the site, they will be able to choose from 112 educational seminars on the latest technologies, including seminars in a special robotics and automation track sponsored by **{DC Velocity.}
They will also be able to see four keynote presentations, including sessions on the 2021 MHI Innovation Awards, supply chain resiliency, the 2021 MHI Annual Industry Report, and proven success strategies from women in supply chain. There will be live product demos similar to what you would have at a physical show. Attendees can also schedule live video meetings with the show sponsors via AI matchmaking tools.
So attendees will still be able to network, see, and learn as they did at the live show; they will just do it on a digital platform.
Q: So, this year’s event will include more educational sessions than usual plus all the product demonstrations?
A: That is correct. One advantage of the digital platform is that it removes time restrictions. At a live show, an educational session is only offered at a particular time. Now, attendees will be able to watch those sessions on-demand whenever they want.
The live demos and seminars will still be conducted at specific times, but this content will also be available on-demand afterward on the ProMatDX platform.
Q: Normally, the ProMat show is a three-and-a-half-day event, but that’s going to be extended this year, correct?
A: Yes. We extended it to five days to allow more time for people to engage with the platform and to help them balance their show attendance with their work responsibilities.
Q: Are there other capabilities you’ve been able to add with the switch to the digital platform?
A: Yes. The sponsors are able to build a showcase that allows them to upload product documentation and manuals. There will also be a large amount of video content.
Q: Given some of the advantages you’re finding, do you think you’ll retain some of these digital components after physical shows resume?
A: Yes. Like many things the pandemic has changed, we expect trade shows will look different in the future. We had started down this track in 2019. After the live ProMat show ended, we archived all of the educational sessions so attendees could continue to view them online. Then we followed up with Modex in 2020, where we featured videos of the booths for viewing after the show. We will continue to build out the hybrid component and to extend the timeframe of the show. Going forward, all of our exhibitor shows will have a digital component.
We are also hopeful that our fall meeting in October in Arizona will be an in-person event. That will continue as an educational conference that brings the industry together. This year’s event will also have a larger digital component—we’ll be using more videos, more digital connections, and more technology. Those pieces are here to stay.
Q: What are some of the initiatives MHI will be working on this year?
A: ProMatDX will take us to a new level. Going forward, I see this as a stepping-stone to creating an enhanced exhibition and conference experience.
We will also kick off new projects with the Warehousing Education and Research Council, or WERC, which is an educational association for warehouse professionals that merged with MHI back in August. We will build on WERC’s success and WERC’s educational offerings, including its benchmarking initiative. We will also be providing opportunities to connect WERC’s warehousing-professional members with the suppliers that have historically made up MHI’s membership base.
Right now, we’re also looking to add supply chain trend analyses to the market intelligence reports we offer members. In addition, this year, we will launch a formalized supply chain leadership program to develop the next generation of leaders within the supply chain. So, there are quite a few projects in the works.
Editor’s note: ProMatDX 2021 runs from April 12 to 16. You can register for free here.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”