Tag: economy

The Ever Shrinking Military Impacts Local Communities

Budget Cuts

When a military base slowly shrinks over the course of years, the effects can be more troubling for the local community than a complete closure. Many military towns have seen a gradual loss of jobs as the Department of Defense moves to reduce infrastructure as an alternative to closing a base.

Tim Ford, the head of the Association of Defense Communities, recently told Federal News Radio that many people who publicly oppose a Base Realignment and Closure (BRAC) would admit privately that a planned closure is easier to deal with than a gradual shrink. 

The BRAC process involves transparency leading up to a final decision. A community can make plans to repurpose the buildings in order to evolve the local economy. On the other hand, the local community can find itself facing silent job losses and large swaths of unused buildings if the DoD shuts down bits and pieces of the base.

Budget concerns, changing politics, and shifting military strategies all contribute to these changes. A revised BRAC process may be the key to ensuring the best long-term results for affected communities, but many difficult decisions remain.

We follow these affairs closely because our industrial tugs are used by military bases as GSA-approved materials handling equipment. In fact, industrial tugs can help make day-to-day operations more efficient for the military.

With that in mind, the good news is that many military bases are finding ways to streamline operations and reduce costs to avoid closure. 

For more information about industrial tugs for military and DoD applications, as well as a wide range of products for businesses of all kinds, visit DJProducts.com.

Keeping Up with the Trends

The world of business, and subsequently warehousing and material handling, is ever changing.  To be successful you must adapt as your customer needs change and there is never a more serious time to serve your customer as a time where the economy is suffering.  If you can’t provide the service that your customer needs, you better believe that he or she will find someone that can in an effort to serve their customer and keep their doors open.

Recent trends have shown that some businesses are being forced by the economy to move into smaller properties in an effort to cut overhead and continue operating.  Some of these businesses will require their suppliers to change from a customary “pick and pack” type supplier to someone who is willing to store materials until they are needed.

Warehouses and distribution centers who are asked to provide this service to their customers need, more than ever before, to be properly organized and capable of staging and shipping orders quickly and accurately once an order is received from their customer.  Direct shipments to end users may be necessary and the overall volume of shipments may increase causing the environment to become faster paced and more hectic.

The need for accurate and properly stocked inventories becomes crucial in this type of environment; because there is no time for error when direct or expedited shipments are required.  One way to ensure that your workers can both accurately receive and store materials and to ensure that material can be pulled and staged for priority shipments quickly is to have the proper material handling equipment available for use.

The ergonomic, battery powered carts and scissor lifts from DJ products operate quickly, cleanly and quietly for an entire shift on a single charge, allowing your employees to focus on the accuracy necessary for pulling and receiving orders rather than on the back breaking labor of manual material handling.  In order to become and stay successful your team needs to be fast, accurate and efficient and one of the best ways to achieve that level of performance is to operate with the best possible equipment.

U.S. Manufacturers Turn to ‘Insourcing’ to Save Money

Insourcing is the new buzzword in U.S. manufacturing circles. U.S. economic woes are causing many manufacturers to replace outsourcing with insourcing, an unexpected boon for American workers. The declining value of the dollar against foreign currencies, skyrocketing transportation costs caused by high fuel prices, and decreasing export demand resulting from the global economic downturn are making it more cost efficient for U.S. manufacturers to produce their products at home.

The same economic forces that sent U.S. jobs overseas are now bringing them home. Manufacturing costs in Alabama are currently running 3% below those in China, causing companies like Exxel Outdoors, Inc., which makes sleeping bags for Wal-Mart and other customers, to execute an “about face” on its production priorities. Since the Wall Street tumble, the company has hired more workers, added new equipment and beefed-up production at its Haleyville, Alabama plant, while cutting production at a joint venture in Shanghai. In 2007, 60% of Exxel’s bags were made in Shanghai. This year, the company will make more product at home than abroad and expects to produce 90% of their product at their Alabama facility by 2010.

Exxel founder and CEO Harry Kazazian is predicting a 20% increase in company revenue this year to $42 million. He credits insourcing as a major factor in his company’s success during a tight economy. Since 2005, he has seen the yuan appreciate 17% against the dollar, pushing up Chinese wages, material costs and freight costs. Kazazian says moving production from Shanghai back to Exxel’s Alabama plant just made financial sense.

“Labor is China’s advantage and our weakest link,” he said. “But they can’t compete with me on my just-in-time” production cycle. Exxel can deliver a sleeping bag from its Alabama facility within three days where shipping from China can take two months.

According to government statistics, U.S. manufacturing is contracting at the fastest rate since 2001, the last time America dipped into a recession. As countries around the globe struggle with the growing financial crisis, there has been a marked decrease in export demand. Without demand for the prodigious output that originally spurred outsourcing over the last decade, producing goods in the U.S. is becoming increasingly cost efficient. Smart companies are re-evaluating their outsourcing policies and making the switch to insourcing.

Surviving and Thriving during Mergers and Acquisitions

Having to cutback, downsize or merge with a competitor has become the reality for many logistics and storage companies if the want to keep their doors open.  There just currently aren’t enough customers and enough money/product moving around in order to keep every company busy enough to justify, or even allow, them to operate at the level that they had prior to the economic downturn.

Mergers with competitors can pose a whole host of issues in terms of operations; the most obvious would seem to be the personal and computer program interactions.  Adopting a brand new and potentially very different system of daily operations and having to interact with a bunch of new personalities can be a daunting task, but few people view just how much difference their can be in the warehousing and storage aspect and it’s profound affect on the employees involved.

Differences in equipment, inventory control and shipping and receiving practices can be difficult obstacles to overcome.  In order for a newly developed company with employees from two different backgrounds to be successful, some operational changes may be a necessity.  Customers coming from both businesses will need to see accuracy and speed at least comparable, if not improved, to what they were used to in order to feel confident with the new situation.

Increasing speed and accuracy may require upgrade changes in equipment as well as operations.  Outdated, inefficient and unreliable machines could spell doom to a company who is attempting to keep current customers from leaving during a period of transition.  The proper material handling equipment will more than pay for itself in a very short period of time with reduced fuel/energy costs and increased employee productivity; and the capability of delivering goods quickly and accurately will keep customers loyal and could possibly increase your bottom line.

DJ products offers affordable, reliable and easy to use solutions for material handling, the exact type of equipment needed for a warehouse to maintain, or exceed customer expectations during the transition period of a merger.

Diversification and the Willingness to Grow

Stocking distributors and manufacturer’s representatives are finding themselves in a position where they have to play the roll of the chameleon, constantly changing to meet their customer’s needs in the ever changing construction environment.

When you are in a field where the products are constantly evolving to meet the end users unique needs it’s difficult enough to try and keep up with the trends, but when the ravaged economy is wreaking havoc with your and your competitors’ businesses you need to truly be the most versatile business you can be in order to remain successful.

Your closet competition may be forced to close its doors, which could open up an area of the market that you were previously unable to service – but in order to attack and hold onto that business you may need to add new product without losing a step in terms of serving your customer.

This type of rapid fire adaptability requires you to have the most reliable and easiest to use equipment in order to be able to receive and fill orders at the rate necessary to meet existing and new customer needs.  You can’t have your employees fumbling with outdated machinery that is prone to failure, or with manually moving thousands of pounds of product due to the fact that there is no fuel in your lift or charge left in its battery.

DJ Products offers battery operated lifts and carts that are designed to meet the demands of the fast paced atmosphere of material handling.  These lifts and carts are among the safest, most reliable and most versatile available – each ergonomically designed to not only get the job done, but to keep your employees safe while they are doing it.

Whether you are feeling pressure from an influx of new product and new customers or just trying better your business status enough to not become a statistic, the right equipment for the job is necessary to exceed your previous level of productivity.

Battery Powered Tugs Position You for Future Success

The woes of the U.S. auto industry should serve as a cautionary tale for the rest of us. To weather the current economic storm, U.S. businesses must embrace the future, maintain flexibility, manage labor and rein in expenses (see our Dec. 12 post). While we certainly hope the economy improves more quickly, economic experts interviewed on CBS’ 60 Minutes last night estimate it could take as long as three years to bring the U.S. economy back to a robust state. Business decisions you make now and in the coming months could well determine whether you’ll still be around to enjoy the economic resurgence when it comes.Moving to DJ Products’ innovative, ergonomically-designed battery powered tugs and electric carts could position you to compete successfully now and into the future.

  • Embrace the future. President-elect Obama has made a commitment to American workers to mandate safe work environments. Backed by a Democratic Congress, material handling industry experts predict a quick reinstatement and expansion of the ergonomic workplace safety rules initiated by the Clinton administration but rescinded by President Bush. Being proactive about workplace safety not only positions you to meet future OSHA requirements, it sends a positive message to workers and can be a powerful public relations tool in an era when Americans use purchasing power to support their own political agendas.
  • Maintain flexibility. DJ Products’ versatile battery powered tug provides maximum flexibility to meet the changing needs of your business. From heavy-duty assembly line pushers to compact cart pushers that can maneuver around obstacles in populated corridors, our battery powered tug will grow with you to meet future challenges.
  • Manage labor. DJ Products’ compact, highly maneuverable, battery powered tugs and carts allow a single worker to perform tasks that often require two to three workers when performed manually. Our ergonomically-designed movers maximize worker safety, eliminating the physical strain associated with pushing, pulling, lifting and carrying tasks. Workers are able to work more efficiently, improving productivity.
  • Rein in expenses. Electric and battery-powered tugs are cheaper and more energy-efficient to operate than gas or diesel-fueled lift trucks. But it’s the ergonomic design of our products that will provide the greatest benefit to your bottom line. Ergonomics has been proven to reduce worker injury, reducing expensive medical, insurance, workers’ compensation, disability and lost man-hour costs. Businesses typically recoup their investment in ergonomic equipment within the first year.

To find out more about DJ Products’ innovative battery powered tugs and carts, visit our website. Give us a call and let one of our ergonomic experts show you how DJ Products can help position you to compete successfully in the future.

Functional Equipment doesn’t necessarily mean Basic Equipment

Many of the duties performed in a warehousing environment are repetitive, especially if much of the material distributed is similar.  Employees in the receiving department follow the appropriate procedure from unloading to stocking and the shipping department will follow their detailed procedure for pulling, stationing and prepping the materials to be picked up by the freight carrier.

This seemingly simple operation might lead people to believe that any old equipment can perform the job – all the employees are doing is moving materials from one spot to another right?  This assumption couldn’t be further from the truth though, the procedures followed in many warehouses and distribution centers follow a similar path – but if safe, reliable and properly designed equipment weren’t available, the business would never be able to keep up with the competition.

Some warehouses would probably be able to function for a very brief period with just the most rudimentary materials, like hand trucks and pallet jacks – provided that the material is to large or cumbersome to be handled manually.  There are probably some distribution centers that could squeak by for a brief period with outdated propane fueled forklifts that are prone to breakdown and require regular maintenance but operating in this fashion would certainly mean the most difficult road for the employees and the biggest risk of not being capable of accurately fulfilling orders.

The ergonomically designed and battery powered lifts from DJ Products are the solution to any material handling problem plaguing a warehouse or distribution center.  These lifts and carts are easy to operate, quiet, safe and the most reliable available.  These days, just keeping up with the competition in the distribution industry may not be enough to survive – you have to give your employees every edge to be able to fulfill orders as quickly and accurately as possible.  The edge often begins with the equipment used to get the job done, that’s why many warehouses and distribution centers are turning to the lifts and carts produced by DJ Products for their material handling needs.

Material Handling Solutions for Big Box Stores

With the current state of the economy, everyone is trying to do whatever they can in order to save some money.  That has many consumers buying in bulk at big box/outlet stores in an effort to spread their money out just a little bit more.

Outlet stores operate like a cross between a warehouse and a retail establishment, which poses some differences and potential problems with actually getting the material from receiving to the sales floor where customers have the opportunity to purchase.

It’s absolutely crucial for these types of environments to have safe and reliable equipment in order to meet the customer’s needs.  The employees need to be able to move large quantities of product literally among the customer base during business hours, so safety is a huge concern.  No outlet store can operate successfully with loud and difficult to operate equipment – all material handling equipment needs to be easy to operate and not overly disruptive to the consumer experience.

Once the safety of the employees and customers has been taken care of, reliability is the second biggest concern.  Even the slightest failure of material handling equipment in a big outlet store could spell disaster as much of the material moves directly from receiving to the sales floor in bulk loads.  If the equipment is not functioning for even a short period of time, there could be dozens and dozens of lost sales and potentially lost customers.

Properly trained, reliable employees and reliable equipment are two of the biggest keys to the success of big box and outlet stores.  Reliable equipment ensures that the material hits the sales floor in a timely manner and is available for sale when the customers are looking for it.

Downsizing without Alienating Customers

In this economy, where it’s been exceedingly tough to generate more income due to the fact that fewer individuals and businesses are spending quite as freely as they were once capable,  reducing overhead has been the easiest way for warehousing and logistics companies to maintain profitability.  Usually the two largest areas of expense lay in employees and in rent, and since it’s impossible to run a material handling business without employees, many companies are doing what they can to reduce the amount of money they spend per month on rent.

The biggest problem with shrinking your operating space is the risk of not being able to fully serve your customers – the only way reducing overhead works to maintain profitability is if it doesn’t cause the loss of some of your sales.  This means that a warehousing or distribution company needs to carry as much inventory and maintain the very same fluidity of operation, but they need to do so in a smaller space.

Though this may not sound very realistic, with the right employees and the right equipment it is very possible.  Lifts and carts from DJ Products are consistently reliable and easy to maneuver in even the tightest of spaces.  These quiet and ergonomic carts are among the safest in the business for warehousing employees to operate and they allow just one user to move a multitude of smaller items or a few heavy items without enlisting anyone’s help.

A few well trained employees who have access to the best material handling equipment can perform a task much more efficiently than a full crew trying to operate outdated equipment that could be prone to failure.  When an incoming shipment can be received and appropriately stationed to go into stock or to go out for an order, then either put away or shipped more quickly and efficiently – a warehouse is able to successfully operate in a potentially much smaller environment.

Preparation Can Aid in Overcoming Unforeseen Obstacles

There are a number of things, out of your control, that can hamper your ability to get shipments out to your customers in a timely manner.   Any time you are bringing in products from a location that isn’t local, you can become the victim of shipping delays that can affect how quickly you are able to fulfill customer orders; and any time you are in need of an out of stock or made to order item, production delays can most certainly affect the prospected arrival date of materials.

Many of your customers may be understanding and not overly critical of you if the delays don’t impact their business too greatly, but others are only concerned with getting their order as quickly as possibly and don’t want to hear excuses of manufacturer delay.

Though your hands might be tied when it comes to manufacturer delays, you can help to offset these undesirable instances by being as prepared and efficient as possible in your own operations.  Properly trained and motivated employees who operate in a safe and organized environment with reliable equipment can turn around freight from receipt to shipment much more quickly and much more accurately than employees who work in a cluttered environment with outdated equipment that could be prone to breakdown.

Lifts and carts from DJ Products can handle a heavy workload for a full eight hour shift on a single charge and they are designed with the employee’s safety in mind.  All equipment from DJ Products is ergonomically designed to dramatically cut down on work related injuries and these lifts and carts make it easy for a single person to handle loads of material that would have required two people working with a manual cart.

You can’t control what happens outside of your facility, but by being as efficient and prepared as possible you can minimize the potential damaged caused by delays with quick and accurate actions within your facility.