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.
Robotics and automation are playing a greater role in distribution than ever before, as supply chain professionals strive to boost efficiency and keep pace with escalating fulfillment demands. So what lies ahead for the industry? DC Velocity Group Editorial Director David Maloney recently gathered five experts from MHI’s Conveyor and Sortation Systems Industry Group to get some answers and find out what the future holds for the automation and robotics markets.
Q: Automation and robotics are red hot right now. Often, these terms are used almost interchangeably. How do you define automation and robotics as they apply to our industry?
Satyen Pathak – Designed Conveyor Systems: We do see a big difference between automation, being kind of the conventional part, and robotics, being the new art. I typically differentiate between the two by asking, How much autonomy is there? How much can it make its own decisions? That is how I distinguish between standard automation and the new robotics. We call it “cognitive robotics,” where the robots take over the decision-making, the reasoning, and so forth. That is kind of the new age, but there is kind of a blend over, and you can’t really draw a line between them.
Doug Schuchart – Beckhoff Automation: You may be limiting yourself if you think robotics is just like conveyors and sortation. It is another tool in the toolbox for automated systems. Often, robotics is working with something else. It is rare that it is just a completely stand-alone robot for an automated solution. Another way to think about it is how to blend the right mix of technologies and the new technologies that are coming at us every day.
Q: Traditionally, conveyor systems have been the go-to technology for fixed-path movement of products. Now, we have autonomous mobile robots that can perform similar tasks. Does the conveyor industry see AMRs and other robotics as a threat or as a complementary technology?
Markus Winkler – TGW: We don’t really consider it a threat. I think it is a great opportunity. I see it as something that is adding to our competencies. We are fortunate to understand these new technologies and apply them correctly to our advantage.
Tim Kraus – Intralox: The way we try to think about it is that we know that there are certain applications where a robotics solution offers a clear advantage over conveyors, sorters, or automated singulators. We try to think about how can we augment that: How can we make that work better, work faster, and work more reliably? Is there something we can do to present items to a robot to make it much more efficient and help the total solution?
Q: The pandemic-fueled e-commerce explosion has boosted demand for systems that handle parcels and smaller items. Is that affecting the types of conveyors your customers are choosing?
Jeff Brown – Mitsubishi Electric Automation Inc.: Absolutely, we see that. Everything used to be a full case. Now, it is not only moving the individual items but also factoring in the wide range of packaging that the items may come in. In addition to boxes, there are now different types of polybags that have added to the challenge. We see air-filled bags, poly, and paper envelopes. All of those things add to the mix—it is not just the item size, but how is it packaged and how that affects what the conveyor solution should look like. [Customers] are not necessarily specifying rollers or belts, but they want a solution that is going to minimize downtime and will keep up with throughput demands without package damage.
Doug Schuchart – Beckhoff Automation: We are also seeing grocery and pharmaceuticals now being handled more in e-commerce fulfillment. So, we have to accommodate an even wider spectrum of product types, along with handling requirements that differ from what we’ve seen in the traditional retail space. That expands the types of automated equipment that may be required, and that is playing into some of the equipment innovations we see in the marketplace.
Q: How have conveyor installations changed over the years, and is it easier to integrate them with robotics and other types of automation than it might have been in the past?
Markus Winkler – TGW: I think the big challenge is we need to make conveyors much, much easier and quicker to install. They are more like an integrated product. It is the power supply. It is the communication. It is the logic that comes with the conveyor, and it is the package. That is definitely driven by the changes that our customers are seeing. Now, we are challenged with implementing large integrated systems within months when before it was probably years. That is where all those modular designs come into play.
Q: The rising cost of labor is one of the main reasons why people are turning to automation. As those costs continue to rise, do you feel this will help bolster the case for automation?
Satyen Pathak – Designed Conveyor Systems: We are in a unique time in that we are coming out of a pandemic and wages are rising in order to get people to come back to work. I believe automation is in a constant change cycle. I still think robotics has a long way to go before it’s considered a tried and trusted traditional technology, the way crossbelt sorters and line sorters are. It is in its infancy. But I do see robotics growing at a higher rate.
Q: Conveyor companies are more than simply hardware suppliers. They see themselves as solution providers. How do you approach implementing these new technologies—the sensors, the IoT, the vision systems, robotics, and other kinds of automation—with the conveyors and sorters you manufacture?
Tim Kraus – Intralox: Companies have to evolve to think about the total solution. If you are just thinking about building the conveyor itself, you are going to miss what else is out there. How does it integrate? Where does it best fit? How does it work with other technologies? The whole industry naturally has to shift in that way to make sure that the solution is relevant and that it can be coupled with the right things to create a great system for our customer.
Jeff Brown – Mitsubishi Electric Automation Inc.: Customers nowadays are not just looking for a brand. They are looking for a solution that is going to meet their needs now and in the future. There used to be conveyor companies that had just their material handling equipment and you felt an obligation as a customer to keep it all one brand. But as customers evolve and they learn about technology and what is available in the marketplace, they look at what is going to be the best solution for their company and their operations.
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."