More than 11 million people, 8.6 percent of the nation’s workforce, work in the supply chain, which is currently suffering from a painful labor shortage. Analysts project that the industry will need another 1 million employees by 2030, which will intensify the labor shortage in coming years.

Current demographic trends are adding to the pain. Th e Bureau of Labor Statistics (BLS) says that a demographic shift in the overall U.S. workforce is now underway. Specifically, the number of workers aged 55 or older will increase by 43 percent between 2008 and 2018. As that segment of the workforce ages, the overall workforce will grow by only eight percent.

All categories of jobs in the supply chain – from warehouse and distribution center managers to executives — are feeling the tightening grip of what could become a disastrous labor shortage.

High levels of turnover
“The material handling industry is reaching out for help with its labor force today,” says Bryan D. Edwards, Ph.D., associate professor and Joe Synar Chair in the Department of Management in the Spears School of Business at
Oklahoma State University. “In addition to the growing labor shortage, warehouses and distribution centers are also suffering from a very high rate of turnover,” says Edwards. “Workforces are turning over at an average rate of 25 percent per year, well above the national average turnover for workforces in all industries of 15 percent.”

As a rule of thumb, continues Edwards, hiring a new employee costs about 150 percent of a year’s salary or wages. Replacing highly skilled workers costs even more.

Edwards conducted a workforce study in 2010 for MHI entitled, “The State of the Distribution Workforce and What It Means for the Material Handling Industry.” Researchers conducted focus groups with employees from eight warehouse and distribution centers.

Researchers queried the workers about sources of job satisfaction and dissatisfaction. Answers indicated what you might expect: many workers liked their jobs and many workers didn’t.

“From our focus groups, it was clear that employers who invest in employee well-being can improve satisfaction and commitment while decreasing turnover,” says Edwards. “A changed industry image will naturally follow,” making it easier to recruit new employees. The report recommends improvements that include implementing technology and automation, reducing the physical demands of the job, soliciting and using employee input, improving the physical environment with natural light, air conditioning and adequate work space and facilitating interactions among coworkers and supervisors.

Technical jobs available
More and more warehouses and distribution centers are automating operations in response to the increasing demands for more speed and better accuracy.

This transition to more automation is creating new jobs, for which there are few qualified candidates. Warehouses and distribution centers now need skilled technicians to look after these systems. Even in a time where most sectors are not hiring, many warehouses are struggling to find the workers they need.

To help meet this demand, many are turning to technical career programs. MHI currently supports a joint educational endeavor with the Material Handling Education Foundation, Inc. (MHEFI) called Technical Career Education Program (TCEP). TCEP is a major initiative to build the much needed workforce of the future.

TCEP provides training so that young people entering the workforce, the unemployed, the under-employed, and job changers can begin a career in the manufacturing and supply chain industries. The courses offered give real
life experience in actual, on-campus warehouse facilities.

“Employers are looking for people to walk in the door with a certain level of experience,” explains George W. Prest, MHI’s CEO. “That way they don’t spend the time and money to get their new employee trained. We want our students in the TCEP program to be 75% trained when they graduate and the rest will be learned on the job.”

“Our program is based on input from actual employers, including some of our members. We know programs like this work – we have even seen one of our TCEP students hired right off of our ProMat show floor,” says Prest.

TCEP is currently partnering with 40 established programs nationwide in 17 states.

Trucking industry also experiences shortage
In a study released by the American Trucking Associations (ATA), 90 percent of for-hire truckload carriers reported that they couldn’t find enough drivers capable of meeting Department of Transportation requirements.

According to Bob Costello, chief economist and vice president of ATA, estimates put the current driver shortage in the range of 20,000 to 25,000 in the for-hire truckload market. Costello notes that the current shortage relates
to a base of about 750,000 trucks in the over-the-road truckload market.

While 20,000 to 25,000 is the formal estimate of the current shortage, Costello believes the problem this year could be much worse. “Construction employment is expected to take off this year,” he says. “Construction is an alternative for those looking to get into trucking and for current truck drivers who want to stay home at night. If drivers take construction jobs as they become available, the driver shortage could go as high as 40,000 to 45,000 this year.”

Estimates suggest the driver shortage could balloon to 239,000 drivers by 2022.

Government regulations may worsen the shortage. “If changes to the hours-of-service (HOS) regulations are implemented this year, it will likely reduce motor carrier productivity by as much as three percent,” Costello says. “As a
result, carriers will have to add more trucks and drivers to haul the same amount of freight, thus exacerbating the shortage.”

In addition, the Compliance Safety Accountability (CSA) program will likely add to the driver shortage. “Recent data shows that approximately seven percent of drivers generate a significant portion of the CSA scoring problems
for carriers,” says Costello. “While not all seven percent will be pushed out of the industry overnight, over time, CSA and the related pre-employment driver screening program facilitated by the government will exacerbate the driver shortage.”

Costello states that the combination of industry growth, driver retirements and people leaving the industry means that the trucking industry will need, on average, nearly 100,000 new drivers each year for the next 10 years.

Finding the right people
“There is never a shortage of supply chain jobs in this area for well prepared candidates,” says Brian J. Gibson, Ph.D., Wilson Family Professor of Supply Chain Management at Auburn University. “According to the Bureau of Labor Statistics, employment of logistics professionals will grow by 26 percent between 2010 and 2020.

“That’s a big gap, created partly by retirement and partly by the enhanced role of supply chain professionals within the organization.”

“As companies become more global, supply chain issues have a bigger impact on success,” Gibson says. “For instance, supply chain management can help take cost out of the supply chain and improve margins. Th ink about retail. In the past, buyers had total control over what a retailer buys, who to buy it from, how much to buy and how much to allocate to each store. Today, buyers make the strategic decision of what to buy, but the supply chain figures out how many and how to allocate inventory among stores and distribution centers. This is how the role of supply chain management is being elevated.”

Gibson says the college and university courses of study are expanding as employers ask for these broader capabilities. “For instance, when a transportation manager moves into general management, he or she will probably need strong analytical and financial skills as well as management skills,” he says.

Another organizational challenge for supply chain companies involves finding middle managers experienced enough to promote to senior levels. In many cases, middle managers have not had the experience necessary to develop the broader perspective needed to manage a large corporate supply chain.

Part of that stems from the damage done by the recession. “In the past 10 years, companies have streamlined organizations and done little cross training,” Gibson says. “When you streamline, you can’t send people to professional development and cross training programs, and they don’t learn what they need for the next jump up.”

However, the problem isn’t just lack of experience. The supply chain is growing and demanding more people. At the same time, the Baby Boomer generation, which has 70-plus million people, is retiring and being replaced by Generation X which only totals around 50 million people.

With 20 million fewer people in the workforce, finding the right people will pose challenges over the next few years. The talent pool is too small to fill all the seats being vacated. There are many creative, capable people but not as many as the industry demands.

In the current economy, many people are looking for jobs. With the many positions available in the supply chain industry, we need to better communicate potential job opportunities, and then effectively train these workers to create a more robust supply chain workforce.

A qualified supply chain manager is hard to find. At least, that’s what Benoit Montreuil—the College Industry Council of Material Handling Education (CICMHE) liaison to the Board of Governors of MHI, professor at Québec’s Université Laval, and Canada research chair in enterprise engineering--is hearing from his industry sources. But, why?

“Although there are lots of college graduates in the material handling and supply chain fields, most undergraduate programs teach individual disciplines, not the big picture, holistic, broad views of how all the elements of a supply chain interact,” Montreuil explains.

Further, he notes, supply chain management is still a relatively new field. “Twenty years ago, nobody was called a ‘supply chain manager,’” he adds. “Positions were called ‘inventory manager,’ ‘supply manager,’ ‘operations manager,’ or ‘logistics manager.’ So the whole concept of a person having oversight of a full supply chain is still very new.”

Additionally, with baby boomers aging out of the workforce and retiring, “organizations are losing the personnel who have years of experience managing certain elements, or even the whole, of a supply chain,” says Kimberly Ellis, president of the College Industry Council on Material Handling Education (CICMHE) and an associate professor in Virginia Tech’s College of Engineering. “They’re losing skills, capabilities and organizational knowledge--their brain trust—faster than they can find qualified people to fill those roles.”

Finding qualified people
So, where do companies find the next generation of employees qualified to fill these supply chain management positions?

Although business schools continue to be a key target for recruiting, more employers are turning to industrial engineering programs in hiring for these jobs, says Ellis. “We’ve seen an increase in companies coming to our program, as they’ve figured out that industrial and systems engineers have all the skills to manage a supply chain effectively, particularly those with business minors,” she said.

Jeffrey Smith, CICMHE past-president and professor of industrial and systems engineering at Auburn University’s College of Engineering, agrees.

“Although both business and engineering programs may cover similar topics that are applicable to supply chain, the difference between the two lies within the approach,” Smith explains.

To explain the divergent approaches taken by engineering and business schools, Smith cites the concept of variability: the impact of increasing complexity upon a system’s performance, such as how high inconsistencies in shipping time can cause problems for a supply chain as it struggles to keep up with demand.

“In an engineering program, students examine the technological side of variability. My students, for example, get into the mathematics and propagation of variation,” he says. “Whereas, in business school, students discuss the importance of variation, but don’t delve into the mathematics behind it.”

However, adds Smith, regardless of the degree possessed by candidate for a supply chain management position, it’s crucial to have an understanding of both systems and business.

“People who are at the top of the supply chain game clearly have an understanding of both--they’re not solely technologists, nor are they solely business people. That’s why you see a lot of industrial engineering undergraduates subsequently pursue a master of business administration (MBA),” he says.

Skill sets needed
Regardless of possessed degree, Ellis, Montreuil and Smith agree that a highly qualified supply chain manager has the following characteristics:

• A transformative mindset. “Companies want go-getters who have not only mastered supply chain basics, but also possess the vision and the drive to help an organization transform its supply chain going forward to make it core strength,” explains Montreuil. “They want people who can make the link between business modeling and strategy, and who can use trends such as nearshoring, outsourcing, postponement and network inventory deployment to help a supply chain be both agile and resilient.”
• A systems perspective. “You have to understand how all the components within a system interact, and how that interaction makes that system behave,” notes Smith. “If the focus is on a single manufacturing plant--to the exclusion of the shipping and receiving of raw materials, the storage of finished goods and interactions with customers--then the company as a whole is not going to be successful.” Further, supply chain managers “have to have problem solving and critical thinking skills that enable analysis of the complete system--all the inputs and outputs and the objectives--in order to solve problems, particularly unstructured ones,” says Ellis. “They have to be able to look at a system and see opportunities for continuous improvement.”
• A global outlook. “Th e ability to transmit information and communicate anywhere in the world at the drop of a hat wasn’t heard of 10 years ago,” notes Smith. “A supply chain manager has to be able to harness that access to communication, data and the ability to get things from anywhere in the world in order to do their job. Plus, being able to interact with people in different cultures and different time zones is a must.”

Education programs support student, industry goals
Students in industrial engineering programs increasingly are attracted to supply chain as a career because they see the variety of opportunities presented--simply by the breadth of the field, says Ellis.

“Students also see that supply chain knowledge is held in increasingly higher importance by companies, who now use it as a competitive advantage,” she said. “They see the opportunity to make an impact within the field.”

Smith notes that today’s industrial engineering students have grown up in the same era as the supply chain evolution, so they readily accept its importance to business, as well as in daily life.

“As they grew up, students saw Walmart become the world’s largest retailer by leveraging the strength of its supply chain,” he says. “Likewise, Apple took control of their supply chain to manage all aspects of their production--shipping, lead times, products, due dates—and that’s allowed them to manage the demanding complexities associated with their iPhone and iPad products. And, they’re inspired to see that the CEO of Apple is an industrial engineer.”

Further, because they recognize the parallel needs of the industry to find qualified candidates and students to enhance their marketability, undergraduate programs are aligning some of their coursework to better meet those goals.

Montreuil’s program places a strong emphasis on supply chain simulation to give students as close to a real world experience as possible.

“We don’t want them to just discuss the challenges of supply chain management; we want them to practice it through simulations of a live supply chain,” he explains. “They work in groups and we throw challenges at them, such as a failed product whose actual demand doesn’t come close to forecasted demand, or the impact of delivery shortages on customer relationship management. We want them to have a valuable experience.”

Likewise, when Ellis teaches a class on production planning and inventory control, the material overlaps with the criteria for Certification in Production and Inventory Management (CPIM) offered by The Association for Operations Management (APICS).

“I emphasize to students that at the end of my course they can take the test to earn this certificate, and that makes them potentially more valuable in the marketplace,” concludes Ellis.

About the author: Sara Pearson Specter has written articles and supplements for MODERN Materials Handling and Material Handling Product News as an Editor at Large since 2001. She owns her own marketing communications firm, Sara Specter, Marketing Mercenary LLC.
 

Lathrop, CA−Alex Rodriguez has been named strategic account manager-Latin America for Power Automation Systems (PAS). Rodriguez will sell and service the innovative PAS automated storage and retrieval system (AS/RS) solutions, including PowerStor®, to interested end-users in Mexico, Central and South America.

Rodriguez’ extensive background includes: engineering experience with Rockwell International where he held responsibility for the design, analysis, systems concept validation, testing and implementation of advanced aerospace systems; and maintenance experience with the United States Air Force where he specialized on the SR-71 (Blackbird) reconnaissance aircraft. Since that time, Rodriguez has honed his bilingual sales management and customer service skills by managing the sales and distribution of assembly line manufacturing equipment, advanced motion control systems and laser technology throughout the Latin American region.

Cory Hypes, executive vice president for PAS, said “Bringing Alex on board to assist our customers in Mexico, Central and South America is a commitment to provide service and support to our customers in the Latin American region. Alex’s background brings to the PAS team several elements that propel the PowerStor technology, including motion control, laser technology and advanced engineering. He understands the technology and is 100 percent dedicated to providing his customers the best solutions.”

Last month, Hypes launched PAS’ “Customer First” initiative to focus on customer needs to champion growth. Rodriguez’ appointment along with several others is part of that PAS commitment to strengthen the business and serve customers.

Rodriguez said, “The Latin American market is poised for enormous growth. There is not much else like the technology that Power Automation Systems offers. We have truly defined a niche that will benefit enormously from learning about what we can offer. It’s an exciting time to be a part of this dynamic company.”

More about Power Automation Systems: Power Automation Systems is a leading innovator of automated warehouse products and solutions. A global company with headquarters and manufacturing in northern California, Power Automation Systems maximizes warehouse effectiveness with the one of the world’s most innovative automated warehouse storage solution families, PowerStor®. One of the most sustainable options available today, the PowerStor® system optimizes a facility by providing the highest density, highest throughput and greatest flexibility.

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For more information please contact:
Ginger Wheeler
630-248-3276.

Pittsburgh, PA —Bastian Solutions, a global material handling systems integrator, recently announced it will become a partner integrator with Seegrid.

“Seegrid’s robotic industrial trucks provide flexible and affordable solutions to complement existing or new facilities,” shared Aaron Jones, Vice President at Bastian Solutions. “Clients who desire partial or full automation of non-valued added activities can benefit from Seegrid’s products without the limitations presented by similar technologies. Seegrid robotic trucks can also be productive on the first day of implementation and brought up to full capacity very quickly.  This feature offers an outstanding ROI for business owners who need to be flexible in their operations management.”

John Hayes, National Account Manager for Seegrid, was pleased about the new partnership and noted, “Seegrid is very happy to partner with Bastian Solutions. The innovation and dedication they bring to their customers is second to none; not just material handling but to all manner of business solutions. Their list of satisfied customers reads like a 'who's who' of industry. Bastian can bring to bear years of experience to companies both large and small and we are proud to have them as a partner.”

Seegrid fills a unique demand for clients who desire partial automation and improvement in lean processes. The flexibility of the Seegrid technology is paramount for the ever-changing demands in the current distribution and manufacturing environments.  With more challenging delivery requirements, shorter contract durations, increasing client demands, and increased product variation, Seegrid robotic industrial trucks prove to be the right answer for more companies.

Jones added, “Bastian Solutions’ clients will appreciate the flexibility Seegrid offers and the immediate benefit to their operations. We look forward to implementing this technology to help our customers achieve their business objectives. Having access to the Seegrid technology allows Bastian Solutions an additional opportunity to bring flexible and competitive solutions to our customers for various applications.  As a proven and advanced form of technology, Seegrid robotic trucks are the kind of innovative solutions our clients have come to expect from us.”

About Bastian Solutions
Bastian Solutions, headquartered in Indianapolis, Indiana, USA, is an independent material handling system integrator with clients and offices around the world.  Founded in 1952, Bastian Solutions has established itself as an innovator in the field of material handling automation, supply chain software, industrial controls, and robotics.  The company includes 15 domestic offices as well as 7 international offices in Canada, India, Brazil, Saudi Arabia, Australia, Mexico, and Qatar. For more information, please visit www.bastiansolutions.com.

About Seegrid
Founded in 2003, based in Pittsburgh, Pennsylvania, Seegrid Corporation (www.seegrid.com) brings robotic vision-guided technology to the material handling industry. With more than thirty years of innovation and research by some of the leading robotic scientists, engineers, programmers and logistics practitioners worldwide, Seegrid’s exclusive Robotic Industrial Trucks are revolutionizing the movement of materials in manufacturing and distribution environments. Seegrid’s technology transforms industrial vehicles into unmanned, automated pallet trucks and tow tractors that operate without the need for wire, tape, laser, magnet or other automated guided vehicle (AGV) guidance systems. Seegrid offers solutions that optimize workflow processes by increasing productivity and reducing costs, creating economic and operational advantages. Fast Company magazine named Seegrid as one of the Top 50 World’s Most Innovative Company in 2013 and among the Top 10 World’s Most Innovative Robotics Company in 2013. Follow Seegrid Corporation on Twitter at @Seegrid.

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For more information please contact:
Michael Hasco
mhasco@seegrid.com
412-379-4500x 237

Amanda Merrell
amerrell@seegrid.com
412-389-4500x184
 

Pittsburgh, PA—The leading robotic material handling company, Seegrid Corp., announced the issuance of US Patent No. 8433442 for “Methods for Repurposing Temporal-Spatial Information Collected by Service Robots” on April 30, 2013. The same patent (Patent No. 2249999) was issued in Europe on March 27, 2013. This patent allows re-use of data gathered while servicing a facility for another service purpose.

The patent describes the use of the information collected by the robot on its travels to be used for another purpose. For example, a robot that is using image data for navigation might also re-use the data later to decide what parts of the facility need cleaning. This patent was co-awarded to robotics pioneer Hans Moravec, co-founder and chief scientific officer of Seegrid Corporation, who commented, “The future of robotics is about data and information. Seegrid robotic trucks already use and collect more data than any other commercial robots. This patent allows the user to gain more value from the information collected by the robot as it roams their facility.”

Seegrid is the only supplier of commercial vision-guided vehicles, and has developed core technologies that make this possible. The grant of this patent further solidifies Seegrid as a leader in the $38 billion dollar material handling forklift market.

About Seegrid
Founded in 2003, based in Pittsburgh, Pennsylvania, Seegrid Corporation (www.seegrid.com) brings robotic vision-guided technology to the material handling industry. With more than thirty years of innovation and research by leading robotic scientists, engineers, programmers and logistics practitioners worldwide, Seegrid’s exclusive Robotic Industrial Trucks are revolutionizing the movement of materials in manufacturing and distribution environments. Seegrid’s technology transforms industrial vehicles into unmanned, automated pallet trucks and tow tractors that operate without the need for wire, tape, laser, magnet or other automated guided vehicle (AGV) guidance systems. Seegrid offers solutions that optimize workflow processes by increasing productivity and reducing costs, creating economic and operational advantages. Fast Company magazine named Seegrid as one of the Top 50 World’s Most Innovative Company in 2013 and among the Top 10 World’s Most Innovative Robotics Company in 2013. Follow Seegrid Corporation on Twitter at @Seegrid.

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For more information please contact:
Michael Hasco
mhasco@seegrid.com
412-379-4500x 237

Amanda Merrell
amerrell@seegrid.com
412-389-4500x184
 

Easton, PA: SI Systems, a subsidiary of Paragon Technologies, Inc., today announced its acquisition of Innovative Automation Inc. (“IA”), a leading provider of warehouse control systems (WCS) and warehouse management systems (WMS), based in San Diego, California. The move is part of an overall shift in SI Systems’ strategy to redefine and strengthen its position in the material handling marketplace offering order fulfillment solutions through their regional integrator market channel.

IA’s WCS and WMS products are distinctive in the material handling software market. The new software brings expertise and discipline around a “true versioned product approach”.   A versioned product is unique in the WCS market segment and streamlines customization made over time for specific customers by incorporating them into the baseline product. 

These new software products are a welcome addition to SI Systems’ current range of order fulfillment solutions and the benefits to end users are many. Because there are so many options already built into the base software, new implementations are faster, easier, and require very little customization. In addition, the standardized code allows for better support and more cost-effective, efficient upgrades.

“A truly versioned software product such as this fits well with the SI Systems model and strategy of focusing on distribution through regional integrators,” stated Larry Strayhorn, President and CEO of Paragon. “This will enable SI Systems to expand its Order Fulfillment technology suite and offering to a growing market segment."

Headquartered in Easton, Pennsylvania, SI Systems has been providing automated material handling systems to manufacturing, assembly, order fulfillment and distribution operations for over 50 years.

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For more information please contact:
Peter Rice
(610) 312-3569
(610) 252-3102 (Fax)
rice@sihs.com
 

Pittsburgh, PA – Reduced exposure time between differing environments provides less of an opportunity for unwanted insects, birds, dust and other particles to infiltrate a facility. With that in mind, TMI, LLC announced the 6000 Series roll-­-up door & screen line.

TMI, LLC’s complete line of Screen-­-Pro®, Vinyl-­-Pro and Bird-­-Pro roll-­-up screens, doors and barriers now includes the 6000 Series. The 6000 Series features a higher speed external jackshaft motor that moves doors at a speed of 36” per second. Prior to the 6000 Series, the fastest speed TMI roll-­-up doors could reach was 24” per second.

“We’re focusing on fully encompassing our customers’ needs by responding to a request that we couldn’t serve in the past,” Chris Jacobs, the primary point on the 6000 Series’ development, said. The increased speed allows for a wider variety of door and screen applications, including in areas where the expense of a high-­-speed door can’t be justified. “We’re continuing to build on the momentum of the product line. Now we’re able to meet the demands of more applications,” Jacobs said.

TMI’s roll-­-up line of doors and screens separate differing environments within and around a facility while also helping facilities meet AIB International Consolidated Standards for Inspection. Additional information on the new 6000 Series of Screen-­-Pro® screens, Vinyl-­-Pro doors and Bird-­-Pro barriers is available on TMI’s website or by calling 1.800.888.9750.

About TMI, LLC
Founded in 1988, TMI, LLC is a fully integrated, leading international manufacturer and supplier of innovative products and solutions designed to manage customer environments by improving work safety, cleanliness, comfort, efficiency and energy savings. TMI’s comprehensive product line includes strip doors, exclusive PVC-­-based strip, film, panel and sheet products, PVC-­-coated and laminated fabrics, air curtains, insect screens, swinging impact doors, curtains, modular enclosures and dock accessories. Services include slitting, heat sealing, interleaving, sheeting and die-­-cutting. The business is headquartered in Pittsburgh, PA with operations in Cuyahoga Falls, OH, Anaheim, CA and Norcross, GA. For more information on the complete group of TMI Companies, visit www.tmi-­-pvc.com.

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For more information please contact:
Diana Werkmeister
412.787.9750 ext. 148
dianaw@tmi-­-pvc.com
www.tmi-­-pvc.com

China's meteoric rise, following the economic reforms of the late 1970s, turned it into the world’s fastest growing economy. And while fourth-quarter headlines from a multitude of sources cited the nation’s manufacturing flat line, often in dramatic fashion — “China’s Doldrums Put Pressure on U.S. Exporters,” The New York Times wrote in October 2012; “The End of Chinese Manufacturing and Rebirth of U.S. Industry,” stated Forbes in July 2012 — financial reporters for The Wall Street Journal and Bloomberg were touting China’s apparent uptick just after the new year.

Confused? Those with an interest in the Asia-Pacific supply chain may do well to put their market tickers in a line. Depending on which index you’re watching, you might suffer whiplash.
“Those who are speaking to the supposed death knell of China’s manufacturing industries are way off base,” says MHI Executive Consultant John Nofsinger. He calls the nation’s economic trends something of a reset, one that just about anyone could have expected. “China’s initial response to manufacturing was one built on sheer manpower and brute strength, but what we’re seeing now is a maturing, normal evolution.”

Whether you’re looking to bring your business to China, work with one of its existing entities or clip a few strategies from its formidable playbook, the ins and outs of manufacturing in the Far East can be as tricky to master as its many dialects. From trends to tips to dispelling myths, here are five points the pros think you should know:

1. Growth is growth
Lloyd Morgan, Executive Vice President of International Business Development at St. Onge Co., wonders aloud where some of the speculators are getting their information about China’s supposed cooling off . “Even if some people are rethinking their investments here, it tends to be a very company-specific thing based on the analysis of their supply chains,” says Morgan, whose clients in China are both domestic and international, including American powerhouses such as Walmart. “It doesn’t mean people are closing their doors and moving everything back to the U.S. because there’s a little slowdown.”

Often, companies that defect find they moved to Asia for the wrong reasons or in the wrong manner. “China isn’t for everybody,” he says, “and for others it’s not the only player in the region.” He cites a customer, Unilever, as an example. “Unilever isn’t just focusing on China; it’s focusing on the entire Asia-Pacific market. Unilever has its manufacturing spread out strategically — in Indonesia and in Thailand, and of course China is a big piece of that too.”

What some call China’s comparative economic doldrums, says Nofsinger, “is just an early response to exploiting its advantages. It’s a country that needs to change its ways — from purely collective approaches to a more balanced, collective capital approach as it moves forward.”

Wages, too, are a factor. “They’re increasing in China. It’s getting more expensive to do business,” Nofsinger points out, “but the flipside is that China’s productivity is increasing as well …. At one time it was merely throwing a billion people with hammers and anvils at the problem,” he says. But the labor market has become increasingly sophisticated. “Th e new five-year plan,” he predicts, “will see China placing more of an emphasis, longer term, on technology. Chinese industry is moving toward the higher end, not the lower end.”

China may no longer be the free-for-all economists and business professionals have come to know … “but growth in the 7-to-9-percent range is still pretty good growth,” Nofsinger says. “What they were seeing for more than a decade, right up until just a couple of years ago … that was really unsustainable.”

2. Warehousing: dichotomous trends
What of the companies that are re-shoring their operations to American soil?

“Ten or 20 years ago, [a company might have] decided to outsource things that were difficult or troublesome,” Nofsinger explains. “Th e company thought it could get it done cheaper elsewhere without realizing that, in many cases, it was outsourcing the things that differentiated it.” What followed was an economic game of telephone. “Th e company became dependent on this long, complex supply chain, and internally it lost the knowledge of how it had executed these things in the past.”

Outside factors can play a role as well — the longer the chain, the greater the risk for disruption by things such as weather or geopolitics. Many companies began rebuilding stateside inventories as insurance against such disruptions. Before long, the point was lost.

“[People would say] ‘We did this because we didn’t want to have three warehouses in America …’” says Nofsinger. “So they revisit it. As the numbers have changed, for some companies it became less cost-effective in China and more so here. The advantages aren’t the same as 10 or 20 years ago.”

And China is most certainly not the United States. “People didn’t build big-box warehouses here back then,” says the Shanghai-based Morgan, who has seen many changes in China in his 12-plus years of living and working abroad. Part of the reason stemmed from division; China has many provinces. “Imagine if each of the 50 states had its own regulations for commerce,” he analogizes, “something similar to Europe before the Euro and the European Union (EU) — things that were meant to tear down those barriers. China was the same way. Each province was its own little kingdom.”

Over time, as their companies grew, many of Morgan’s clients found themselves building campuses, “logistics bases that may have had five or six small buildings,” he explains. “Not ideal, but historically all they could do.”

Then came boom time: China was growing; industrial real estate developers showed up and big-box warehouses began to make gains. “Many of my customers began to move away from the campuses. They had their inventories spread over several warehouses — electronics in one, apparel in another, food in a third ….” With the advent of e-commerce, consolidation would soon become king.

3. E-commerce: China’s new Great Wall
Th e simplest analogy is Amazon.com – you go online. You order a baby gift for your new niece, a pair of board shorts for your upcoming vacation and a new power drill (because when you get back you’re finally going to get to that stuff you’ve been meaning to do around the house).

As this business model developed, one could almost hear the collective great minds of distribution at once: “You know, we really should put all this stuff under one roof.”

Clients such as Walmart and many, many others, says Morgan, looked at China in the shadow of e-commerce and saw 1.3 billion people, at least half of whom, perhaps more, have smartphones -- an entire generation of consumers who are used to living and ordering through their phones.

“Companies such as Yihaodian, Walmart’s partner over here … were offering same-day delivery. They had a system designed for young Chinese professionals: they order what they need when they get to the office and by the time they get home it’s at the door.”

It was a model that proved expensive. “They’ve backed off a little,” Morgan notes, though he believes they’ll continue to work on it. “People laughed at FedEx when it said it was going to do next-day delivery. Now it’s commonplace and you never think about it.”

Chinese consumers expect these kinds of conveniences, Morgan says, noting that he can have just about anything -- water, liquor, diapers for his son -- delivered right to his door. Online commerce has proved a boom for his retail customers, and it’s where he’s seen a lot of distribution work develop. “Companies are asking themselves which distribution center they want Eastern Exposure to use for e-commerce,” he says, “and whether they might need an additional building in the city to support that quick turnaround.”

4. Automation and labor: new waves are coming
In China, e-commerce has been and will continue to be an impetus for innovation in automation, says Morgan. “It’s going to be about getting orders out the door. You can’t process thousands and thousands of orders a day with a million people tripping over each other.”

Automation’s next big thing, he believes, will be all about picking and sorting. “It’s what you’ll be using to process in these big e-fulfillment centers,” he says. Just think about entities such as Amazon. Or Walmart. “You’ve got hundreds of thousands of SKU numbers on the website, hundreds of thousands of things you can order. One customer orders four. Another two. It’s nothing like replenishing a [brick-and-mortar] store … it’s piece-picking.” Add to that the Fapiao (government receipt) that’s mandatory in China. “Even amid a continuing slowdown, the pick-pack automation thing is still strong.”

Stateside, Nofsinger predicts something of a Golden Age of automation as well, but with different factors driving it. “There are many people in America who, for any number of reasons, will have to work past an age that in the past would be considered apt for retirement.” If that’s the case, he says, material handing will be rife for innovation to accommodate. “They’ll be answering the need for a safer, more ergonomically friendly loading dock,” he believes, “a healthier place for aging or elderly workers, perhaps workers with disabilities.

It presents opportunities for people who make lifting devices and other equipment to make people in that stage of their lives productive and able to handle manual tasks. It’s a fantastic opportunity to retool infrastructure to deal with very different demographics.”

5. Challenges: efficiency and infrastructure
Years ago Morgan tried — and failed — to sell the idea of network optimization in China. “They wouldn’t even talk to me,” he says. “The attitude was ‘build it and they will come.’” After 2009, however, the economy began to slow. Suddenly there was new interest. “‘What’s that you were saying about that efficiency stuff ?’” they’d ask. “‘I’ve got 15 distribution centers and I think maybe I can do it with four ….’” His workload continues to grow. “People here are putting more thought into efficiency when it comes to facility design these days, not only to reduce labor but, processing time.”

Sortation methodology is similar to that applied stateside, but over here, we’re doing it more like China, and cutting out a lot of the bells and whistles. In the U.S., he explains, people go for the 100 percent solution. “Over here, people will say, ‘Give me 70 percent and we’ll do the other 30 [percent] manually. If 50 percent of the cost is in the last 20 percent, they’ll say forget it and instead spend that money on the core things the operation needs. They can afford to add more bodies -- something you typically wouldn’t see in the U.S.”

Infrastructure will continue to be an issue for both nations. Stateside, Nofsinger sees new opportunities in projects like the expansion of the Panama Canal. “Today, it can handle only ships with about 4,500 containers, but soon we’re going to be bringing through 12,500-containter megaships.” Many will come from Asian ports. “They’re bigger and faster, and cargo with shelf life, things that until now we couldn’t have brought from that region to the West Coast and [have] trucked or trained across the country with time to stock on grocery shelves, will become new parts of the
American supply chain.”

China’s high-speed light rail system is the longest in the world, stretching from Beijing to Guangzhou to Shenzhen. As its parcel service increases, Morgan speculates it will give air a run for its money. “Maybe it takes a couple more hours to get a package from Shanghai to Beijing, but if it’s half the price …?” Competition just got hot.

While America’s development of high-speed rail is comparatively light years behind, what its infrastructure does have is more equal distribution. “In China, there are huge cities with millions of people and massive consumption,” Morgan explains. Outside these bounds, however, “…there’s nothing. Even in the most remote parts of the U.S. you’d probably only have to drive an hour or so to find a Walmart that has everything,” continues Morgan, “It has that retail infrastructure. It’s developed because the American population base has money all across the country. In China, the wealth is very highly concentrated. No one wants to sell a television in the middle of nowhere, because no one has the money.”

It is part of what he believes feeds China’s monstrous capacity for innovation. “People learn how to survive with what they have here. And that’s what invents stuff .”

Packaging must not only contain and protect products throughout their movement in the supply chain, but must also provide functionality, attractiveness and identification. However, increasingly, concern has grown about packaging’s effect on the environment. Suppliers, retailers and consumers have been looking for a reasonable balance of all the factors, including cost.

Providing the framework for assessing the impact of packaging components selection and packaging design benefits everyone. Implementing a system Until recently, if you were to ask any
international packaging expert for the definition of “sustainable packaging,” they would have asked you a question first, “According to what country?”

Definitions, classifications and descriptions have varied widely in international trade and even within countries. As interest in sustainable packaging has grown, smooth international free trade has become more difficult every time trading partners attempted to develop and assess claims of environmental impact throughout a package’s lifecycle.

The task has become easier since January 2013 when a series of six international standards were published by the International Organization for Standardization (ISO) on “Packaging and the Environment.” This family of standards provides suppliers with a common framework for assessing how to place packaging or packed goods on the market. It is now possible to reference an international standard rather than trying to negotiate differences between national standards.

An additional benefit of these standards is that they help guide conversations between all the players in the packaging supply chain. The six standards are as follows:

• Packaging and the environment – General requirements for the use of ISO standards in the field of packaging and the environment (ISO 18601:2013)
• Packaging and the environment – Optimization of the packaging system (ISO 18602:2013)
• Packaging and the environment – Reuse (ISO 18603:2013)
• Packaging and the environment – Material recycling (ISO 18604:2013)
• Packaging and the environment – Energy recovery (ISO 18605:2013)
• Packaging and the environment – Organic recycling (ISO 18606:2013)

Follow the path
You are likely familiar with the mantra, “Reduce, Reuse, Recycle." To “reduce” waste, sometimes increasing materials in primary and secondary packaging helps. It seems counterintuitive, but many times increasing materials helps to ensure that less product is wasted due to damage or spoiling. Packages or components may then follow the “reuse” branch (potentially following cleaning, label removal/ replacement, etc.) and may cycle through reuse many times prior to being recovered in the form of “recycling,” energy recovery, or organic recycling.

National and international effort
The 1860X series of standards was the result of four years worth of international meetings taking place in a variety of major cities around the world. MHI, in its role as administrator of the
American National Standards Institute (ANSI) committee developing the U.S. positions on the standards, coordinated the U.S. effort.

Over 40 U.S. experts, many representing their companies and entire industry associations, participated in the committee and in the international meetings. Many more international packaging experts from around the world participated in the development effort. The standards are available either through the ISO or through ANSI’s Standards Store.

Getting involved
New work has begun within the international committee working on this family of standards to define additional terms and to develop internationally accepted symbols to identify materials used as packages or package components. If you are interested in becoming involved, contact standards@mhi.org.

Two new Power Pick Global software features improve pick and pass operations in organizations. Power Pick Global software can improve material flow by directing operators to the next pick within the pick zone reducing operator dwell time. In addition, orders can now be processed through multiple work zones with the scan of a barcode. These new features eliminate paper lists, minimize potential operator downtime as well as increase productivity and efficiency.

Pick and pass order fulfillment allows organizations to pick in one zone and then pass to the next zone for further order fulfillment. Ideal for operations with a large number of SKUs, spread over multiple workstations, orders are downloaded into Power Pick Global software and ready for fulfillment. Orders can be grouped together by priority or delivery date, and then sent to the workstations for picking.

In each pick zone, Power Pick Global software easily navigates the next pick by displaying a message to the operator. This eliminates the need to reference the computer screen located at a picking station, saving the operator time. For example, if an operator is picking from 1 of 3 Kardex Remstar Shuttle Vertical Lift Modules (VLM) in zone 1, Power Pick Global software can tell the operator after picking from VLM 1, the next pick is in VLM 3. This eliminates operator dwell time. While picking from VLM 1, VLM 3 is already retrieving the next pick in the order.

Another new feature allows an operator to scan the order tote when it arrives in the zone to start picking. Previously, as an order moved from work zone to work zone, a paper printout with the order number had to be scanned for each zone to begin picking. Now, each order tote has a bar code ID unique to that order. The operator in each work zone simply scans the bar code on the tote and the order information automatically populates in the Power Pick Global software. This eliminates the need for an operator to search for the paper order, increasing worker productivity and efficiency.

Kardex Remstar, LLC, a company of the Kardex Group is a leading provider of automated storage and retrieval systems for manufacturing, distribution, warehousing, offices and institutions. For information about our dynamic storage solutions, call 800-639-5805 or visit www.kardexremstar.com.

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For more information please contact:
Christina Dube
207-591-3168
christina.dube@kardexremstar.com
http://MediaCenter.KardexRemstar.com  
www.KardexRemstar.com

MONTGOMERY, IL – (BUSINESS WIRE) – Lyon announced today that on May 7th, a joint venture between newly-formed Lyon Capital Partners, LLC (formerly Echelon Capital) and Revere Finance closed on the acquisition of substantially all of the assets of Lyon Workspace Products, L.L.C. and its affiliates. On January 19, 2013, Lyon filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code, and after 110 days, the business was sold to the joint venture in an auction after an affiliate of Echelon Capital purchased the senior debt from Capital One. Founded in 1901, Lyon is a leading manufacturer and supplier of lockers, industrial storage and workspace products and solutions, with three manufacturing facilities and four regional distribution centers.

This transaction will allow Lyon to shed legacy obligations and emerge with a strong balance sheet led by new ownership with substantial industry experience. Lyon has been a cornerstone in the communities of Montgomery, Watseka and Paris for many years, providing good jobs to local families and additional economic benefits to the surrounding communities. The new owners are committed to working with these communities, employees and suppliers to mitigate the harmful effects of the bankruptcy and build on the legacy of the “Lyon” name, while at the same time, transforming the business to meet the challenges of a globally and technologically competitive market.

To meet these challenges, the new business will be led by Gene Berg, who has led a number of successful turnarounds in the last 25 years, and before founding Echelon Capital, served in various executive positions including President of Bergstrom, Inc., a leading global manufacturer to the commercial vehicle industry. “We are committed to partnering with our customers, dealers, distributors, suppliers and employees to build on the rich heritage of Lyon,” said Mr. Berg.

Mr. Berg, along with his partners William Guo and Matt Zakaras, will be changing the name of Echelon Capital to Lyon Capital Partners, LLC in order to build on the legacy of the “Lyon” brand in manufacturing and metal fabrication. The new Lyon Capital Partners, LLC, headquartered in Chicago, owns several other metal fabrication businesses in Illinois, including Viking Metal Cabinet Company, Hobart Cabinet Company, Precision Quincy Ovens and Austin-Westran. Revere Finance, led by David Muslin on a transaction team that included Todd DiBenedetto, Alice Peterson and Roger Dittrich, provides capital and financial solutions to middle market manufacturing businesses. Revere Finance is a wholly owned subsidiary of PPL Group of Northbrook, Illinois.

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For more information please contact:
Matt Zakaras
mzakaras@echeloncap.com
312-339-7252

Global manufacturers are putting their supply chains at the center of their business strategies to serve as the foundation for operational efficiency and collaborative innovation, according to KPMG’s 4th annual Global Manufacturing Outlook - Competitive Advantage - Enhancing Supply Chain Networks for Efficiency and Innovation.

However, many manufacturing executives (49 percent globally; 54 percent U.S.) admit that their companies currently do not have visibility of their supply chain beyond Tier 1 suppliers. Moreover, only 9 percent say they have complete visibility of their supply chains. That number is even lower among U.S. executives, with only 7 percent claiming complete supplier visibility.

“Obtaining real-time visibility across all tiers in the supply chain can significantly increase speed to market, reduce capital expenditures and manage risk,” said Jeff Dobbs, Global Sector Chair, Diversified Industrials and a partner with KPMG in the US. “Moving toward a demand-driven supply chain is probably the single most important step a global manufacturer can take today.”

However this could prove challenging, as Dobbs points out that “much of the supply chain technology is outdated.” In fact, 44 percent of respondents overall say they still use email, fax and mail as the means to communicate issues about demand in the supply chain. “The winners will be the ones who can network real-time across their entire supply chains, reducing the information lag that costs companies significant time and money,” adds Dobbs.

When asked about their ability to assess the impact of an unplanned supply chain disruption, a similarly small percentage of executives, (9 percent global; 7 percent U.S.) say they are able to assess the impact within hours. However, the most frequent response among global executives was 1 and 6 days (36 percent) and U.S. respondents most frequently said 1-2 weeks (32 percent).

To help manage supply chain risk and continuity in the event of unanticipated disruptions, executives (58 percent globally; 71 percent U.S.) say they plan to regionalize or localize their supply chains.

Overall, China and the U.S. remain the top sourcing locations, but the report shows that many will keep sourcing closer to their major markets over the next 2 years. Nearly 90 percent of U.S. respondents will increase sourcing in the U.S. followed by Canada (18 percent) and China tied with the U.K. at 13 percent.

Focus on growth and innovation
On the growth front, a third of all companies globally and in the U.S., and 47 percent of larger companies (over US$5 billion in revenue), are looking to pursue mergers and acquisitions over the next two years. In the U.S. specifically, executives indicate that the priority transactions for their companies will be investing in Greenfield opportunities in growth markets, M&A and innovation driven by enhanced collaboration in the supply network seen as growth drivers.

Manufacturers maintain that investment in R&D is essential for growth: 38 percent of U.S. respondents expect to invest 4 percent or more of revenue in R&D and innovation over the next 24 months which is 20 percentage points higher than the level being invested currently, according to the findings. Seventy-one percent of U.S. respondents say their R&D will largely be incremental, with a focus on enhancing existing products and lines, 29 percent plan to invest in breakthrough innovation – comparable to overall global results.

“As companies step up investment in innovation, whether in search of breakthrough R&D or incremental improvements, they are increasingly looking to their supply network for ideas,” Dobbs commented.

Just over half of global respondents (51 percent) say that partnerships with suppliers will define the direction of innovation, and over the next 2 years, 57 percent expect at least 10 percent of their revenues to come from innovations. Yet paradoxically, the biggest challenges manufacturers say they have with regard to innovation is aligning it to the business strategy (34 percent), and the complexity in collaborating with suppliers and partners (32 percent).

“Supply chain partners will play a critical a role in a manufacturer’s innovation strategy as part of their investment in R&D,” Dobbs added. “Mitigating the challenges of collaborating with partners is complex; close familiarity with who your suppliers are and how they operate will certainly help optimize performance.”

KPMG’s Dobbs believes notable shifts in the way companies are redefining and investing is indicative that manufacturing is on the verge of a “hyper-innovation era.” “The sector may appear to be slowly evolving, but it is on the cusp of explosive change in the next 3 to 5 years. The prolonged stage of intense competition, modest growth and a hyper-focus on cost reduction has strongly positioned companies to maximize this next phase of innovation.”

“With new data technologies proliferating to enhance partnering, shared efficiencies and visibility, we’ll start seeing some breakthrough and disruptive innovation in manufacturing – not only to the products but also to the process.”

Click here to download the full report.

About the report
KPMG’s 2013 Global Manufacturing Outlook, a report from the Economist Intelligence Unit, is based on a survey of 335 senior executives, conducted in November 2012. Executives represented five industries: Aerospace and Defense, Automotive, Conglomerates, Engineering and Industrial Products, and Metals. Forty-six percent were C-level, including board members. Respondents came from companies of many different sizes: nearly 30% represent companies with more than US$5bn in annual revenue. Respondents are distributed globally, with nearly a third each from The Americas; Asia; and Europe, the Middle East & Africa.

GREENVILLE, N.C. – Yale Materials Handling Corporation announced today the launch of an upgraded electric rider lift truck series with a capacity of 8,000-12,000 lbs. Designed to make a leading electric lift truck more advanced, the new Yale® ERC080-120VH lift truck series is built to meet and exceed application requirements for warehousing, retail and industrial environments.

“The time for converting from internal combustion engine (ICE) trucks to electric lift trucks is now,” said Bill Pfleger, president of Yale Distribution. “Our ERC080-120VH electric riders are just as durable as ICE trucks, are cost-effective, eliminate emissions and are fitted with leading innovative technologies designed specifically for materials handling.”

To ensure that customers’ needs are met, all of Yale’s new ERC080-120VH trucks have undergone rigorous durability and performance testing. Not only are they comparable in power and durability to ICE powered trucks, but can save money by eliminating fuel costs and dramatically reducing emissions. In addition, the new truck series features enhanced technologies such as a stronger and more durable powertrain, a drive axle with increased shock absorption for heavy loads, and a mast that is reinforced with ductile iron-casted cross members which resist mast rocking and lateral movement.

The ERC080-120HV series presents excellent stopping power with low brake pedal effort by providing wet disc brakes. These brakes are designed to lower cost of operation by requiring no adjustments or servicing other than a periodic lubrication change at 4,000-hour intervals. The series also includes a Power-Assisted Braking System, which further increases brake and drive train life by automatically utilizing traction motor braking in proportion to operator brake pedal pressure. With reduced demand on the service brakes, the assisted braking feature lessens operator braking effort by up to 40 percent.

The AC traction motors and efficient hydraulic components used in the ERC080-120VH maximize uptime and increase throughput. Considered the “operator’s truck,” Yale® lift trucks are fitted with advanced ergonomic technologies that increase productivity by helping to reduce operator fatigue. The truck also features textured grab handles, a tilt steering column with optional tilt-memory and telescopic adjustment for improved operator comfort and productivity.

About Yale Materials Handling Corporation
Yale Materials Handling Corporation markets a full line of materials handling lift truck products and services, including electric, gas, LP-gas and diesel powered lift trucks; narrow aisle, very narrow aisle and motorized hand trucks. Yale has a comprehensive service offering including Fleet Management, Yale service, parts, financing and training. Yale® trucks are manufactured in an ISO 9001:2008 registered facility and range in capacity from 2,000 to 36,000 lbs. For more information, or to find the Yale® lift truck dealer nearest you, call 1-800-233-YALE or visit www.yale.com.

Yale Materials Handling Corporation is part of NACCO Materials Handling Group, Inc. (NMHG), a wholly owned subsidiary of Hyster-Yale Materials Handling, Inc. (NYSE:HY).  Hyster-Yale Materials Handling, Inc. and its subsidiaries, headquartered in Cleveland, Ohio, employ approximately 5,300 people worldwide.

Yale is a Registered Trademark of Yale Materials Handling Corporation.  People. Products. Productivity. is a Trademark in the United States and certain other jurisdictions.

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For more information please contact:
Ryan Fisher
864-272-3023
ryan.fisher@jacksonmg.com
 

GREENVILLE, N.C. – Hyster Company announced today the launch of the Hyster® E80-120XN electric rider lift truck series — a new generation of electric rider lift trucks resulting from extensive input from customers and operators in the automotive, paper and manufacturing industries. The upgraded 8,000 to 12,000 lbs. capacity lift truck series features new enhancements to deliver better performance, reliability and durability in electric lift truck applications.

“We had a great product available, but gathered valuable feedback on how to make it even better,” said Jonathan Dawley, president of Hyster Distribution. “After designing the new trucks, we put them through similar testing as our internal combustion engine (ICE) trucks. This rigorous testing helps ensure our products are dependable, even in the toughest applications our customers may face. The E80-120XN series of trucks may be electric, but they’re still made to be Hyster tough.”

The E80-120XN electric riders meet the same high performance standards as ICE trucks in regards to acceleration, speed control and load-lift abilities, but also offer lower operating costs along with zero emissions. The new lift truck series utilizes the Hyster Stability System (HSS™) — a maintenance-free design and mechanical system built right into the truck to handle a wide variety of loads without compromising the stability of the truck.

In addition, a number of technological upgrades are featured in the E80-120XN lift truck series including a durable steer axle and power-assisted braking, which improves brake life while reducing operator braking efforts by 40 percent. The trucks efficient AC traction and hydraulic motors have been updated to handle the toughest duty cycle with reduced maintenance costs and enhanced productivity.

Hyster makes operator comfort a key feature in the E80-120XN electric trucks. Using an enhanced ergonomic design with an 11 percent larger floor space, easy-to-use three-point compartment entry and an adjustable suspension driver’s seat, Hyster helps reduce operator fatigue and increase productivity.

About Hyster Company
Based in Greenville, N.C., Hyster Company (www.hyster.com) is a leading worldwide lift truck designer and manufacturer. Hyster Company offers 130 models configured for gasoline, LPG, diesel and electric power, with the widest capacity range in the industry — from 2,000 to 115,000 lbs. Supported by one of the industry’s largest and most experienced dealer networks, Hyster Company builds tough, durable lift trucks that deliver high productivity, low total cost of ownership, easy serviceability and advanced ergonomic features; accompanied by outstanding parts, service and training support.

Hyster Company is part of NACCO Materials Handling Group, Inc. (NMHG), a wholly owned subsidiary of Hyster-Yale Materials Handling, Inc. (NYSE:HY). Hyster-Yale Materials Handling, Inc. and its subsidiaries, headquartered in Cleveland, Ohio, employ approximately 5,300 people worldwide.

Hyster is a registered trademark of Hyster Company.

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For more information please contact:
Ryan Fisher
864-272-3023
ryan.fisher@jacksonmg.com

Brampton, ON, Canada – On May 30, Blue Giant Equipment Corporation will be celebrating fifty years in business. This milestone also represents five decades of new product development, manufacturing excellence, and other successes that have made Blue Giant a globally-recognized dock solutions provider.

“Blue Giant’s consistent focus on developing innovative product and providing first-class customer service has enabled us to grow and succeed as a company,” says Bill Kostenko, Chairman.

Blue Giant was founded in 1963 by entrepreneur Kurt Larsen. Output was initially limited to mechanical dock levelers and hand pallet trucks, but as demand grew and the needs of the material handling industry evolved, the company’s product portfolio expanded to include hydraulic dock levelers and vehicle restraints, microprocessor-based touch control panels, and air-powered dock equipment. (The latter category includes the industry’s first air cylinder dock safety system.) Today, Blue Giant dock equipment can be found in such prestigious locations as Facebook headquarters, the Dubai Mall, and the Philadelphia Produce Distribution Centre, which has been called “the world’s largest fridge”.

“Blue Giant is committed to designing and building dock products that address a broad spectrum of material handling needs,” says Jeff Miller, Vice-President of Sales and Marketing. “It’s a dedication that unites our people as a team and represents our customer-driven culture.”

Blue Giant’s product line and global presence both continue to grow. In January 2013 Blue Giant launched its U.S. operation, Blue Giant LLC, and opened a manufacturing facility in Greensboro, North Carolina. This new location manufactures and distributes the company’s growing line of dock seals and shelters.

On May 21st, Blue Giant will be hosting a 50th Anniversary celebration at its corporate headquarters in Brampton, Ontario. City mayor Susan Fennell, company founder Kurt Larsen, and media representatives will be in attendance.

“Blue Giant will continue to shape the future of the material handling industry,” Bill Kostenko promises. “We look forward to another fifty years of delivering the high-quality and innovative loading dock solutions our customers expect from us.”

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For more information please contact:
Michael Poeltl
mpoeltl@bluegiant.com
www.BlueGiant.com
905-457-3900 x222
f 905-457-2313

MONETTE, Ark. – Colson Caster, a market leader in tested caster and wheel products, received a $28,021 incentive check from the Entergy Arkansas, Inc. Commercial and Industrial Custom Program for installing insulating blankets on their injection molding machines.

“In addition to the energy savings, the installation of the insulating blankets helped to create a safer work environment for our employees by reducing the surface temperature from 450 degrees to 110 degrees,” said Plant Engineer Jack Birdno. “This one project also yielded enough incentive monies to allow us to do future upgrades to lighting and our air compressor system, which will greatly reduce our energy footprint at a cost of only 25 percent of the total out of pocket.”

The Entergy energy efficiency program helps businesses save energy and money by providing no-cost facility improvement recommendations and financial incentives based on the total amount of energy the improvements will save. The insulating blankets will save more than 1,080,000 kilowatt-hours of electricity per year, equal to preventing the annual carbon dioxide emissions from more than 159 cars, according to Environmental Protection Agency calculations. The energy savings from this project are expected to pay for themselves in less than two months.

“Entergy Arkansas identified a real need for a program specifically designed to assist our industrial customers in finding and implementing savings opportunities via energy efficiency,” said Entergy Customer Service Manager Russell Harris. “We are pleased to be able to partner with Colson Caster on the energy savings projects implemented within their Monette facility.”

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For more information please contact:

Jack Birdno
877-525-1358
jbirdno@colsonmonette.com

Russell Harris
870-739-5909
rharr14@entergy.com

MHI is introducing a new blog for manufacturing and supply chain professionals. The MHI Blog will highlight the wealth of content on MHI.org and provide context to new technologies, topical news and industry trends.

In January, MHI rebranded the association with a broader emphasis on solutions for the larger supply chain. The MHI blog is part of this effort. MHI showcases its member companies and provides manufacturing and supply chain professionals with content that incorporates not only material handling, but manufacturing, distribution, logistics and transportation. MHI also provides informational and educational resources to increase the value these professionals bring to their companies while enhancing their networking opportunities and professional growth.

Learn more about the the new blog and the solutions MHI provides to manufacturing, distribution and supply chain professionals.

MHI is an international trade association that has represented the material handling, logistics and supply chain industry since 1945. MHI members include material handling and logistics equipment and systems manufacturers, integrators, consultants, publishers, and third party logistics providers. The association also sponsors trade events, such as ProMat and MODEX to showcase the products and services of its member companies and to educate industry professionals on the productivity solutions provided through material handling and logistics.

Contact: Carol Miller, Vice President of Marketing & Communications, MHI, (704) 676-1190.

Lathrop, CA− Power Automation Systems (PAS) is pleased to announce that it has been selected by Yearsley Logistics, one of the largest frozen logistics service providers in the United Kingdom, to provide the PowerStor® system solution for its new Heywood Facility. The PowerStor system, an automated storage and retrieval system (AS/RS), is one of the fastest, most dense, automated storage solutions in the world and will provide Yearsley Logistics with the ability to store nearly 12,000 pallets (upon completion of a two-phase installation) into a minus-22C environment with minimal labor while delivering some of the highest throughput of any other comparable technology.

The Yearsley Logistics project marks the first expansion of PAS into the UK and Yearsley Logistics’ commitment to invest in the latest technology to maintain a leadership position in the UK cold storage and distribution market.

Cory Hypes, executive vice president for PAS, said “We are very pleased to be able to deliver this innovative technology to Yearsley Logistics and look forward to a long and successful business relationship with them. It is our aim to alleviate storage solution issues, reduce energy consumption and increase efficiency, and see our customers realize one of the quickest R-O-Is in the automated warehouse technology sector.”

More about Power Automation Systems: Power Automation Systems is a leading innovator of automated warehouse products and solutions. A global company with headquarters and manufacturing in northern California, Power Automation Systems maximizes warehouse effectiveness with one of the world’s most innovative automated warehouse storage solution families, PowerStor®. One of the most sustainable options available today, the PowerStor® system optimizes a facility by providing some of the highest density, highest throughput and greatest flexibility.

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For more information please contact:
Ginger Wheeler
630-248-3276
ginger.wheeler@pas-us.com

Autoquip is pleased to announce the hiring of Brandon Martens for the position of Industrial Engineer.  Brandon’s focus will be on the manufacturing process to incorporate new methods, drive improvements and enhance lean to our plant operations.

Brandon is a recent graduate from Oklahoma State University where he earned a degree in Industrial Engineering and Management.  “My studies have prepared me to think outside the box and find new and different techniques to improve various processes in manufacturing. I am excited to use the knowledge I gained during my college courses, one course in particular, I will be able to apply to my responsibilities here at Autoquip.  In “Simulations”, I learned to analyze systems using probabilistic and statistical techniques that model multiple events in a real settings and situations,” said Brandon.

“We are pleased to welcome Brandon to the Autoquip team.  He will provide a lot of new, fresh ideas to the shop floor and help us build upon our high standards for quality and responsiveness within our operation,” commented Chris Kuehni, Director of Operations.

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For more information please contact:
Chris Kuehni
405-282-5200
 

Material handling equipment new orders grew 7.2% in 2012 and are forecasted to grow 5.0% to 6.0% in 2013 and 10.0% or more in 2014, according to the latest Material Handling Equipment Manufacturing Forecast (MHEM) released by MHI.

“As the current US economic expansion shifts from capital expenditure driven to consumer-led, we anticipate modest, positive MHEM growth for 2013. Housing, automotive rebounds and expansion in industrial, warehouse and commercial buildings (over 69% 2014 - 2018) will contribute substantially to improved MHEM growth for 2014 and beyond," says Hal Vandiver, MHI executive consultant.

In addition, material handling equipment shipments grew 9.8% in 2012 and are forecasted to grow 3.5% in 2013 and 9.1% in 2014. Domestic demand (shipments plus imports less exports) grew an 10.9% in 2012 and is estimated to grow 3.4% in 2013 and just over 9.5% in 2014.

MHEM Trade growth slowed by more than 50.0% in 2012 reflecting reduced US demand and serious problems in foreign markets. Import growth in 2012 was 17.9%, down from 37.7% in 2011. Export growth was 11.2% in 2012, down from 26.2% in 2011. MHEM Imports and Exports are expected to slow dramatically in 2013 and rebound modestly beginning mid-2014.

The MHEM forecast of material handling equipment manufacturing is released each quarter by MHIA and looks 12 to 18 months forward to anticipate changes in the material handling and logistics marketplace.

Download the complete forecast.

MHI is an international trade association that has represented the material handling and logistics industry since 1945. MHI members include material handling, logistics and supply chain equipment and systems manufacturers, integrators, consultants, publishers, and third party logistics providers. Much of the work of the industry is done within its product-specific Industry Groups. The association sponsors trade events, such as ProMat and MODEX to showcase the products and services of its member companies and to educate manufacturing and supply chain professionals on the productivity solutions provided through material handling and logistics.

Contact: Carol Miller, Vice President of Marketing & Communications, MHI (704) 676-1190.