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.
Unless you had a rich uncle, you’re probably destined to spend about 45 years of your life working. For most of us, time on the job represents about one-third of our existence, so ideally, our work lives will prove both rewarding and enjoyable.
As technology advances, the kind of work we do changes. There’s not a lot of call now for blacksmiths or wainwrights. Today’s jobs use different technologies from those that engaged our ancestors. Likewise, the jobs of tomorrow will be different from those of today, with much of the change driven by technological advancements.
Ian Kahn is a technology writer and futurist, and the founder of a consultancy known as The Futuracy. His firm provides education about the future and emerging technologies, and helps companies determine how ready they are for the future and how disruption-proof their organizations are.
Kahn was recently a guest on DC Velocity’s “Logistics Matters” podcast, where he spoke with Group Editorial Director David Maloney. What follows are some excerpts from their conversation.
Q: Will work in general be different in the future than it is today?
A: There are so many different types of work. For many people, work is about doing things and accomplishing tasks. For others, it is creative work, thinking work. So there are many different types of work. Within the logistics industry and supply chain, there is a lot of work that’s manual—it’s about moving goods from one place to another. But there is also creative work, thinking work, such as back-office work.
What’s happening right now is that work across the board is changing. Automation is taking over some tasks, although there are still many roles that are not changing, that will stay the way they are.
We keep hearing about what technology is doing and the transformation it’s creating, but we also have to ask what parts of the jobs and roles are changing? Is it changing the repetitive tasks or the creative tasks? The physical tasks or some other type of task? Automation and robotics are here, and there are some exciting things coming down the pipeline.
Q: What are some of the most influential aspects of technology that will affect supply chain jobs?
A: Right now, we’re hearing a lot about artificial intelligence and how it will change the way repetitive tasks are done and eliminate the need for human intervention. Great. I love the idea, but let’s have proof of that by creating some use cases. Let’s actually make the lives of workers better and more efficient.
There’s also robotics, autonomous cars, and self-driving trucks. Now, that part of the industry is also exciting, and maybe the truck operators, the professionals who are on the road, can get some kind of a break. Maybe they can drive shorter routes or make use of different routing strategies. That’s a promising technology that can help the industry become more efficient. But that conversation is much bigger than just having self-driving vehicles on the roads. We need the right infrastructure. We need the right transportation systems and technologies in order for that to be successful.
Then you have blockchain technology, which can fundamentally alter the way payments are made, the way customers are paying their vendors. It could address the challenge of money being stuck in escrow, where it is waiting to be paid out to someone. Technology such as blockchain can change that, but we still need to have those initial use cases.
Q: You mentioned how jobs are going to change in the future and will obviously be influenced by technology. Are our high schools, colleges, and technical schools properly preparing students for the jobs of the future?
A: I think they are partially preparing students for the future, but the challenge also for schools, universities, colleges, and training institutes is that technology is changing more rapidly than curriculums can change. Unfortunately, universities and educational institutions cannot change their curriculum every six months. We have to pay close attention to identifying the bigger trends that are changing industry.
Right now, I think there’s a need for improvement with respect to education pertaining to emerging technologies, how these technologies work. And it’s not just about teaching people how jobs are changing; it’s also about how they can use these technologies to their benefit. How their jobs can be made easier. How their jobs can become more efficient, and how they can contribute more value to the economy, to the industry, and to their employers.
Q: Will the next generation of students have to acquire different kinds of skills to prepare for future work?
A: If you look at the past, we were living in a very manual, mechanized world, where initially technology—like steam engines and electricity—was used mainly to move things. We then went to automation, which enabled large factories to produce goods at a rapid pace.
We are now living in the era of cognitive technologies, where the emphasis is on how technology is able to eliminate human error. It enables faster processing, the production of more widgets per hour, and so on and so forth.
Technology to me is different in many ways from what it was, say, 20, 30, or 50 years ago. So, the definition of what it can do has changed. People who have been in the workforce for years have a completely different relationship with their work compared with kids who are in school right now and who will be in the workforce five or 10 years from now. Their skill sets are going to be different because the world they operate and work in is going to be driven by different parameters than in the past.
The future workforce has to be more in tune with technology. They already are, right? You see kids dealing with technology really well. I feel that the future jobs are going to be less hands-on and more creative, more cognitive.
Q: Are there other skills tomorrow’s workers will need beyond what you just talked about?
A: I believe at the end of the day, we all are human. We need the skills to communicate and to work with other people and understand complexity. Right now, we’re seeing high demand for data scientists, people who can make sense of the vast amount of data that technology generates. I believe that—the data side of the industry—will be a good place to look for positions within logistics.
Communication, public relations—any channel that makes that happen—is great. Sales is always a good place to be because salespeople will always be in demand.
We know the general direction we’re headed in is, of course, specialization, and people need to keep their skills up. Don’t assume that because you’ve had a lot of training, you’re done with that. You’ve got to constantly keep learning.
Q: How will AI shape the future of work?
A: As we stand on the precipice of the AI revolution, it’s evident that the jobs landscape will undergo significant transformation. Historically, technology has always been a catalyst for change in the workplace. Consider the accounting industry: Half a century ago, accountants relied on pen, paper, and ledgers. Today, the scene is vastly different, with technologies like Excel and advanced risk management software reshaping the industry’s operations. This evolution isn’t exclusive to accounting; sectors like manufacturing, retail, and agriculture are witnessing similar technological metamorphoses. Furthermore, as technology evolves, it’s not just about jobs changing or becoming obsolete; it’s also about the birth of new roles and opportunities.
Q: Which jobs will AI impact the most? And what about the supply chain industry?
A: Jobs characterized by repetitiveness and susceptibility to human error stand to be most influenced by AI. This encompasses roles in back-office operations, content review, copywriting, paralegal tasks, marketing content creation, and even certain aspects of sales, operations, and leadership. However, it’s crucial to view AI not as a threat, but as a tool. Instead of replacing humans, AI can be harnessed to enhance human capabilities, enabling professionals to make more informed decisions, leverage personal digital assistants, and drive superior business outcomes.
For instance, within the supply chain industry, AI can revolutionize human resource functions. Imagine HR professionals being able to sift through thousands of resumes in minutes, shortlisting candidates based on precise criteria set by AI algorithms. This not only streamlines the hiring process but also ensures a higher-quality pool of candidates.
Q: How should companies integrate AI into workforce planning and job structuring?
A: AI is more than just a technological advancement; it’s a game-changer. Its unparalleled ability to automate tasks and analyze vast data sets in record time offers businesses a competitive edge. Companies should, therefore, view AI as a strategic partner. By integrating AI-driven systems, businesses can elevate their data analysis, enhancing automation and decision-making processes. As we move forward, it’s not about replacing the human touch but about augmenting it with AI’s precision and efficiency.
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."