Facing challenges head-on: interview with 2022 NFSD chair Jonathan Dawley
In today’s pandemic-era labor environment, operator and pedestrian safety is more important—and perhaps more difficult to achieve—than ever, says National Forklift Safety Day 2022 Chair Jonathan Dawley.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
The world has changed dramatically in the nine years since the Industrial Truck Association (ITA) launched the annual National Forklift Safety Day program to educate customers, policymakers, and government officials about the safe use of forklifts and the importance of proper operator training. The Covid-19 pandemic has deeply impacted businesses, including those that use forklifts, in myriad ways. One of the biggest changes has been in the labor market, where every industry is challenged not just to hire but also to retain trained workers. The high rate of turnover has directly affected forklift safety. “The unique, transitory environment for employees we’re in requires us to be on our game all the time” when it comes to operator and pedestrian safety, says 2022 National Forklift Safety Day Chair Jonathan Dawley.
Dawley is president and CEO of Summerville, South Carolina-based Kion North America Corp., which provides the Linde Material Handling and Baoli brands of lift trucks. He has spent his career in manufacturing industries like material handling, automotive, and infrastructure and heavy construction equipment. He joined the Kion Group in 2020 from Putzmeister Holding GmbH, where he had been president and CEO of the Americas region. Prior to that, he was responsible for the global aftermarket business at JLG Industries Corp., a subsidiary of Oshkosh Corp. He gained extensive experience in intralogistics as well as in the material handling business in senior management roles at Hyster-Yale Materials Handling Inc. from 2005 to 2014, most recently as president of Hyster Co. distribution.
Described by peers and colleagues as a strategic thinker with vision and deep technical knowledge, Dawley has long experience in manufacturing, developing international markets, financial management, and industrial technology and automation. He is active as a board member in the German American Chamber of Commerce (Southeast), the Charleston (South Carolina) Metro Chamber, and the president’s industry board at College of Charleston.
DC Velocity recently spoke with Dawley about the labor-related conditions that are challenging forklift safety today, his thoughts on training technology, and his priorities for National Forklift Safety Day 2022.
Q: What are your current job responsibilities?
A: As president and CEO of Kion North America, I am responsible for sales and marketing; operations, including production, supply chain, and procurement; engineering and product strategy functions; and administrative functions such as human resources and finance. Ultimately, though, my job is to lead the company to success. I am a growth-stage CEO, which means I am changing the culture of the company to manage and support our growth. One thing about our culture that won’t change, though, is our commitment to caring for and developing our people. I put building a sustainable culture at the center of all of my actions.
Q: How did you get into material handling originally?
A: My first exposure came while I was working and getting my college degree. Through that job, I met the COO of a large forklift dealer. He became a customer and later asked me what I was doing with my life. I explained that I was finishing my degree, and he said, “Come talk to me as soon as you finish.” I did, and he hired me as an aftermarket sales rep at the dealership.
I ended up going on to work for automotive OEMs and suppliers for the following 10 years, but material handling really did get in my blood, as I enjoyed the diversity of applications. Eventually, I came back into this business in 2005, when I was hired by one of the leading lift truck manufacturers in North America. I was there for nearly 10 years, holding numerous senior leadership roles. I left the industry for six years but am now back, with the privilege of leading Kion North America.
Q: Is there anything you especially like or find exceptionally interesting about the industrial truck industry?
A: I enjoy the diversity of applications and the opportunity to problem solve in many different industries. As a young person entering the industry, I was able to experience many different market sectors, from automotive manufacturing to warehousing to food and beverage applications. Learning about different industries, processes, and business models, and solving diverse problems for these customers were attractors early on. Plus, the industrial truck industry is the backbone of logistics. It’s exciting to be in an industry that has a direct impact on every supply chain around the world.
Currently, there is so much going on in the area of technology. Customers worry about finding good employees and about employee turnover, and this demographic change is driving more automation. In the past, automation was seen as a disruptive technology that was a threat to jobs, but today it’s clear that with a very tight labor market for the foreseeable future, we have to apply automation as a support for businesses and the economy. At the same time, customers want to ensure their employees’ safety, and they also want to be more efficient and competitive. So, in addition to automation, we are looking at technologies that can help them in areas like energy efficiency and safety.
The technology opportunities are very interesting, but at the end of the day, success comes back around to people. In this industry, you have to get on the ground with people to understand their needs and build relationships.
Q: You have a lot of experience that is timely and relevant today, such as international business development, Industry 4.0, and automation. How will your background contribute to ITA’s efforts to promote forklift safety?
A: Having a background in product strategy and technology is especially relevant in leading a material handling company right now. Manufacturers and warehouse companies are dealing with not being able to get enough employees or are experiencing high rates of employee turnover. When you have high turnover, that means many new employees, so it’s important to keep up with basic levels of training. At the same time, business opportunities are growing and businesses that use forklifts are expanding, so businesses are working at a very fast pace.
In times like these, we can use technology to our benefit. We in the forklift industry can supply systems that enable another layer of safety management on top of the core safety training. For example, collision-avoidance systems can help with operator awareness of safe practices. But technology-based systems are not replacements for training and education—they are supplemental, or supportive of training.
Q: What are your personal priorities as National Forklift Safety Day chair?
A: First, I want to get the industry aligned, from the manufacturer to the dealer, to maximize awareness at the end-user level of the need for training and the basic tool kits and training the industry provides. I would like the industry to create one harmonized message to send to forklift end-users. Second, I’d like to look at how we can leverage technology to support operator training. While technology is not a replacement for basic training and good culture, technologies such as automation and collision-avoidance systems are a good supplement and can reinforce good safety principles. And third, I want to find a way to get dealer networks more engaged with National Forklift Safety Day. Every manufacturer and its dealers should consider holding open houses to drive safety awareness—for example, by holding operator training classes on site during that time.
Q: Are there specific topics this year’s National Forklift Safety Day program will focus on?
A: As always, we will emphasize that forklift safety is not a one-time issue and that it is as important for pedestrians as it is for operators. We will also be looking at the safety-related challenges warehouses and manufacturers are facing as we start to come out of the Covid-19 pandemic and the economy improves. For example, some businesses have grown dramatically, and in some cases that has meant higher levels of inventory. As a result, there may be material in new places in the DC or the factory where there wasn’t anything before. Perhaps that forces a pedestrian to walk outside of the normal marked path, which puts them in the way of equipment, or an operator has to drive around something that wasn’t there yesterday and pedestrians aren’t expecting a forklift to be there. These changing situations can compromise safety and put employees at risk.
Q: The pandemic has had a huge impact on forklift operations and labor. Has this “new normal” affected how end-users approach forklift safety?
A: It has. We need an additional 3.2 million workers in the United States to cover current job openings. As facilities search for employees in a very constrained labor environment, they may end up hiring people who may not have the same capabilities and experience as the previous employee base. That, together with the high rates of turnover that businesses everywhere are seeing, is making safety training more difficult, creating risk for end-users.
There are also two employee-related dynamics many businesses are seeing. One is that some employees do not feel a long-term commitment to the company that hires them, which means you have to engage them and help them feel connected so they will want to stay with the company. Another is that if someone does have a laissez faire attitude about coming to work, then they likely do not have a sense of urgency about safety. So, you have to aim for daily engagement, and supervisors on the line have to constantly be reinforcing the importance of safety. And if we as business leaders don’t establish a culture of accountability, then the safety system falls apart.
Q: What’s the main message you would like DC Velocity’s readers to take away from National Forklift Safety Day?
A: The main message is that safety is a culture. To make safety a priority in companies, that message has to come from the top, and we have to live it ourselves, day in and day out. We can leverage advanced technology to help limit risks, but we also have to ensure people practice the basics of safe operation every day and that training is maintained.
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."