Tag: Material Handling

MHEDA Convention Focuses on Positioning Your Business for Success

Powerful Positioning is the theme of this year’s MHEDA Annual Convention and Exhibitors’ Showcase. Scheduled for May 2 to 6 at the J.W. Marriott Desert Springs Resort & Spa in Palm Desert, California, the annual gathering of the Material Handling Equipment Distributors Association offers a chance to learn, network and find out what’s new in the industry. This year’s MHEDA convention will offer 16 exciting presentations from industry leaders geared to help you position your material handling business to weather the current economic storm and emerge stronger, better and more successful than before.

Here are snapshots of some of the presentations we’re looking forward to:

  • Economic Trends and the Impact on Your Business by Alan Beaulieu. His twin Brian Beaulieu was a hit at MHEDA’s 2008 convention. Trend researcher and economist Alan will update the Beaulieus’ economic forecast for the industry and provide specific, practical management objectives you can incorporate in your current and future business plans.
  • The Customer Empathy Solution by Ross Shafer. To earn your customer’s loyalty, it’s no longer enough to merely serve his needs. Today, quality customer service must succor the customer’s emotional state through every phase of a transaction. Author, motivational speaker and a regular on the Tonight Show with Jay Leno, Shafer will explain how to develop customer empathy and turn it into long-term customer loyalty. His talk is sure to feature hilarious excerpts from his latest book, “The Customer Shouts Back — 10 Things You Must Know If You Want Their Lifetime Loyalty.”
  • Inside the White House and Hollywood … Getting to the Top with Character by Steve Ford. Son of President Gerald Ford and Betty Ford, actor Steve Ford will share his personal insights on leadership, adversity and making life choices. Given his unique personal experiences on stage and behind the scenes at the White House, Ford’s views on the importance of family and developing a personal moral code should be interesting.
  • Relationship Economics — How to Build and Nurture Business Relationships by David Nour. Although it may sound like “sales reps are from Mars and customers are from Venus,” building strong relationships with customers builds business. A social networking strategist, Nour will focus on the art and science of relationships and how to incorporate these methodologies into the pursuit of customers.

Of course, in addition to the featured talks, MHEDA conventions always offer a good selection of down-to-earth, useful educational workshops. This year is no exception with sessions tackling profitability, credit and collections, negotiations, pricing optimization, website optimization, and salesmanship. If you haven’t signed up for this year’s MHEDA convention, click here to register.

U.S. Manufacturing Not Dead Yet

Despite dire reports that U.S. manufacturing is dying, the old boy still seems to be alive and kicking.

  • Sure the recession has U.S. manufacturers flailing, and the failure of the Big Three automakers is a definite blow to the country’s manufacturing power; but it’s far from the death knell some have predicted.
  • Sure global recession has decreased domestic and foreign demand, but faith in history tells us that’s a temporary problem. The turnaround may not materialize as quickly as we’d like, but demand will increase; it always does.
  • Sure manufacturing employment figures are declining, but statistics don’t tell the whole store. The decrease is due in part to improved manufacturing efficiency and automation, not merely the effects of decreased supply and demand in a recessionary economy.

The most important clue that there’s still plenty of life left yet in U.S. manufacturing is that increased efficiency.

U.S. manufacturers have been able to harness technology to produce goods more efficiently with fewer workers, making marked gains in productivity in the process. This increased productivity will make it more attractive for manufacturers to bring manufacturing operations and jobs back to U.S. soil (see our May 13 post). It’s a move the Obama administration is poised to encourage by closing tax loopholes that the President believes have exacerbated the outsourcing of American manufacturing jobs overseas.

The climate is right for such a show of faith by manufacturers. Americans are clamoring to have American goods produced on American soil by American workers. Legions of Americans are making a point to Buy American and eschew foreign-made products and the businesses that sell them. For the first time in decades, U.S. workers, pushed by the Detroit reality, are showing a willingness to scale back their demands and work with manufacturers to make American salaries more competitive in the global market. The economy is tightening up competition, weeding out the weak players and giving the strong a more open playing field. Real estate is cheap and opportunities to purchase near turn-key operations abound for savvy shoppers.

Taken together, the time is ripe to bring U.S. manufacturing — and jobs — back home. U.S. companies that are able to take advantage of the current climate and move jobs back to the U.S. stand to reap untoward benefits in public relations and worker and customer loyalty.

Changes Coming to U.S. Workforce

If the current economic downturn has revealed any truths, it’s that the basic premise upon which employer-employee relations has been based in America is changing and must continue to evolve. Business owners can no longer afford to assume the role of in loco parentis. The cost of comprehensive health care and lifelong pensions has simply become too great for employers to be expected to take care of their employees the way they did 50 or even 20 or 10 years ago.

Gone are the gold watch days when people could expect to find a job fresh out of high school or college and stay with the company until retirement 30 years later. Employees no longer feel that kind of loyalty toward their employers any more. And technology is changing so rapidly that business owners can’t guarantee that today’s job will be needed five years from now. Naturally, these aren’t new ideas. Like all things, the business world is always evolving; technological advances seeming to speed change with each coming year. What’s new is that long-standing employee groups like the United Auto Workers are finally realizing that the employer-employee patterns that worked for their grandparents simply aren’t viable in today’s workplace.

With unemployment at a 25-year high, jobs may be scarce now; but work will return. But when it does, jobs are likely to be different. Both employers and employees should prepare themselves to face a workplace that may be vastly different from the one we enjoyed before the economy fell apart. In its May 25, 2009 issue, Time magazine addressed these issues, predicting a workplace that is “more flexible, more freelance, more collaborative and far less secure.” According to Time, the next generation of business owners and managers will bring new values to a business world where women will control an increasingly bigger slice of the pie. With the demise of the steel industry and potentially terminal illness of the auto industry, Time also sees jobs leaving the Midwest in droves and moving to Texas and the Southwestern states or Georgia and Florida.

Job expectations, business education, career paths, benefits, retirement, work-life balance, environmental savviness, management style, office spaces and manufacturing are all in for some major upheaval. Next time we’ll explore coming changes in the business world.

Material Handling Industry Must Seek Growth in World Markets

Navigating the U.S. economy has been a bumpy ride of late for industry and consumers alike. There is hope for a smoother future, particularly in material handling, but the road to success may lead outside America’s borders.

World market demand for material handling equipment and systems is expected to increase 5% per year through 2012, according to a new study, World Material Handling Products, by The Freedonia Group, Inc. The Cleveland-based industry research firm expects major market gains to come from growth in fast-developing countries in the Asia/Pacific region, Eastern Europe, Africa/Mideast region and Latin America. Growth in these markets is expected to eventually outstrip sales in the U.S., Western Europe and Japan. However, in the near term, the study predicts “renewed strength” in the Japanese material handling market and “acceleration” in the U.S. market driven primarily by automated products such as robots and automatic guided vehicle systems (AGV). 

The Fredonia Group report analyzed the $93.8 billion world material handling industry in 37 major national markets worldwide, predicting global industry growth to $133.5 billion, including price increases, by 2015. Rapid economic growth, increased manufacturing output, greater fixed investment activity and rising motor vehicle production in China, India, Turkey, Mexico and Russia, particularly, will lead demand and sales gains. China, a major producer and exporter to Asian markets, is predicted to account for 30% of total material handling sales growth.

The material handling products demanded by these developing markets will come primarily from U.S., Europe and Japan which are home to the largest and most advanced material handling equipment and systems producers. High-value products, technical expertise, advanced production systems, capital availability and trained labor will give western material handling firms a pronounced sales edge in developing markets. However, that edge may be short-lived. China, with its vast low-cost labor pool, has become a major producer and supplier to Asian markets. While quality and safety issues haunt Chinese-produced products, the country has shown amazing adaptability in other product markets and could become a major world material handling competitor within the next decade.

Next time: Which material handling products will see the greatest growth?

Material Handling Job Site Launched to Attract Workers

NA 2008 recently wrapped up in Cleveland. One of the more interesting developments to come out of the annual trade show sponsored by the Material Handling Industry of America (MHIA) was increased industry interest in worker assist devices. “We’re finding a renewed interest in looking at the worker rather than just the workplace,” said MHIA Vice President Tom Carbott. “Companies that can find talent want to keep their employees safe and productive in the workplace.” Carbott said he expects more exhibitors to mirror this interest at next year’s show in Chicago.

In a related development, in response to industry concerns about attracting workers to careers in material handling, the first job posting website dedicated solely to recruiting students to the material handling industry was introduced. Designed and launched as a cooperative effort by the Material Handling Equipment Distributors Association (MHEDA), MHIA and the College-Industry Council on Material Handling Education the website is meant to serve as a bridge or gateway between students and industry professionals. Dubbed by MHEDA the Gateway Program, the website is located at www.mheda.org.

“The website was developed to attract and recruit students seeking employment in the industry, as well as to strengthen relationships between academia and industry,” explained MHEDA Executive Vice President Liz Richards. “We encourage all professionals in the industry to take full advantage of the resources on the Gateway site, as it is meant for industry-wide use.”

The site targets three groups: students, advisors and industry professionals, providing customized resources and publications of specific interest to each group. Free searchable databases allow users to review resumes and job postings. The site can be used by students and industry professionals to find/fill internships, co-op work opportunities and full-time employment. Employers can also indicate their availability for guest lectures and site visits.

Using Ergonomic Equipment to Reduce Injury Rates

In our last post we talked about the challenges of managing a multicultural workforce in material handling, logistics, warehousing, fulfillment and other businesses. OSHA has reported higher than normal injury and on-the-job death rates for foreign-born Hispanic workers who comprise a growing segment of America’s hourly workforce. While language and cultural differences appear to be at the root of the problem, injury and death rates can be cut by using intuitive, ergonomically-designed, powered equipment to meet your material handling needs.

When communication is an issue, equipment that is easy to operate can improve training speed and reduce potential worker operation errors that can lead to injury. When controls are intuitively designed, communication gaps are narrowed further. What might not be grasped or fully remembered in verbal communication can be intuited by gesture or familiarity with similar equipment. This is not to say that a thorough training and safety program is not necessary, only that easy-to-operate equipment shortens the time between initial training and competent operation. Ergonomically-designed equipment is built around the worker, not the task, making it extremely user-friendly and an excellent choice in multicultural work environments.

Ergonomic material handling equipment that is electric or battery powered can further reduce injury and workplace death rates. In material handling situations, most injuries come from pulling, pushing or lifting loads and are the result of over-stretching or over-straining muscles. Powered equipment removes most of the need for heavy physical exertion from pulling, pushing and lifting tasks. By allowing the equipment to do the heavy lifting, so to speak, fewer situations are presented during the workday that might place workers at risk of injury.

To find out more about ergonomically-designed material handling equipment, visit the DJ Products website.

New Marketing Strategies Needed to Survive Lean Years Ahead

With the economic prognosis dim for 2009, U.S. manufacturers and businessmen need to rethink basic marketing strategies. Gone are the comfortable days of order backlog that manufacturers have enjoyed since the post-WWII. Everyone is scrambling to find new customers and new markets for their products. As Doug Gregory of Diamond Group Marketing pointed out in a February 9, 2009 article on Manufacturing & Technology eJournal, “you can’t cut and save your way to survival and profitability.”

To survive the next few lean years, you’re going to have to take excellent care of your current customers and work hard to find new ones. Gregory recommends a number of marketing strategies proven during previous downturns to help companies survive and even thrive. We’ve added some comments based on the benefit of our own experience here at DJ Products in building a successful material handling company with a national reputation for innovation, quality products and superior customer service.

  • Aggressive marketing. Many companies cut back on marketing efforts during a downturn. Survivors will buck the tide and increase marketing across the board. During tough economic times, potential customers do more shopping around looking for the best bargains. Getting your company name out there where they’re looking gives you a better chance to snag the sale.
  • Customer service. Without your customers you won’t have a business. Keeping customers happy must always be a top priority. During economic downturns competition heats up and you have to work even harder to keep your customers from jumping ship and going with the competition. Keep in regular contact with your customers so you’re right there to meet their needs as they arise. In a downturn, companies typically decrease inventories to cut expenses. You’ll benefit if you can provide customers with fast order turnaround and guaranteed delivery dates.
  • Strategic diversification. A tight economy forces you to expand and diversify your customer list, but make sure you don’t lose your core focus. You don’t want to dilute the expertise that sets you apart from your competitors and draws customers to you in the first place. Look for new customers with needs similar to those you now serve. Take a look at your current customers’ competition. With the same needs as your present customers, they present a ready market for your products.

Next time: Where to look for new marketing opportunities.

Peering Into Business’ Future

If America’s future workforce is going to be “more flexible, more freelance, more collaborative and far less secure,” as Time magazine prophesizes in its May 13, 2009 issue, it indicates that the American business paradigm as we know it is going to go through some major upheavals in the coming decade or two. Time suggests that American business is teetering on the cusp of major change. Powerful social forces have pushed us toward this edge, and the current economic disaster appears ready to tip us over and send us careening in new directions.

What’s driving the coming changes?

  • The Baby Boomer generation has been an unstoppable force since its inception. Sheer numbers have changed the focus of society each time Boomers have entered a new life phase. Now poised to enter retirement, America’s most populous demographic will again shift the country’s emphasis, this time to health care and aging issues. By 2030, one-fifth of American citizens will be over the age of 65, with the greatest growth in the over 85 demographic. As they have from the beginning, Boomers will drive the country’s business, social and political agendas. Expect growth in health care, pharmaceuticals, medical aids and equipment, security and alert services, home care, transportation and mobility, shop-at-home opportunities and travel. But don’t count Boomers down and out yet. The last of the Boomers won’t retire for another 20 years and many plan to and will be able to work into their 80s. With far fewer workers moving up to replace them, American business owners need to prepare for a grayer workforce.
  • The new generation of managers entering the business world seems to have been plugged in since birth. Quick to embrace new technology, they’re more comfortable in front of a computer checking their email and Facebook accounts or texting and twittering than they are communicating face-to-face. Expect business communication and social interaction to change to reflect the fast-paced, multi-tasking, solitary preferences of the tech-savvy earbud generation. This is the generation that will take integrated technology to new levels not yet even imagined. Business has already begun to lose its brick and mortar walls as more people work remotely. Expect the next generation to blow them away. The days of the cubicle are numbered!

More on Monday

Pushing vs Pulling Manual Carts

Pushing and pulling are the two most frequent actions workers execute in the course of doing their jobs. So in maneuvering manual carts, which is easier for the worker and creates less risk of injury — pushing or pulling?

Experts say pushing is preferable to pulling for a number of reasons. Research has demonstrated that people are able to exert higher push forces than pull forces. Given that horizontal push force, not the weight of the load or equipment, is the most significant factor in determining the effort required to move a load, that’s a significant consideration in selecting equipment.

Think of what happens to the body when you push something. Your entire body is used to create push force. In pushing an object, your body is more centered which allows you to concentrate force. Limbs are generally held closer to the body, limiting the possibility of extension injuries.

Pulling on the other hand, creates tremendous stress on individual body parts. When you pull an object and you are facing the direction of travel, one arm is stretched behind your body. This places the shoulder and back in awkward postures, increasing the potential for painful injury through overextension or awkward twisting. If you use two hands to pull an object you must have your back to the direction of travel. Walking backwards without a clear view of your path is an invitation to an accident. On an incline momentum can increase unexpectedly and the cart can careen into the worker or “run over” his feet.

There are times when pulling is the only way to maneuver a manual cart into the proper position, but at all other times pulling should be avoided. Pushing is the safer, more ergonomic way to move a manual cart.

Integration of Material Handling Components Lags

To the frustration of many, the material handling industry stills seems a long way from achieving the plug and play capabilities of common home electronics. The day when all material handling components will interface with each other still appears to be in the distant future. Material handling manufacturers remain focused on producing dedicated components that require purchase of their particular system. The goal of integrated components that can be easily and quickly installed and used in any setting with any material handling system lags far behind the profit-driven motives of the current marketplace. 

While integration isn’t the bug-a-bear it was a decade ago, it still “typically takes between 8 and 12 weeks to install a piece of material handling equipment in a distribution center,” said Steve Martyn, CEO of GRSI, a systems integrator. Even products that bill themselves as “plug and play” generally require that specific coding instructions be written for at least 40% of the integration before successful installation can be completed.

The problem, say experts, appears to be a lack of interest in creating industry-wide data-exchange standards that would allow for instant interface of varied material handling components. “The only way to have true plug and play is if you have a body of industry leaders that define a standard,” explained Daniel Ahrens, client support manager at Fortna, Inc., a material handling consulting firm. That would require that hundreds of companies come to agreement as the electronics industry did in choosing the USB as the standard interface device — a difficult, but not impossible, task. “The trouble with standards is you have to get hundreds of companies to agree,” said material handling consultant Sam Flanders, president of 2wmc.com. “You have to have a driving force to make this happen. And nobody thinks it will result in extra revenue.”

At present there’s no pressure on the industry for anyone to step up to the plate; however, that’s expected to change as small providers of warehouse management software fall to the giants like SAP and Oracle. “The big ERP (enterprise resource planning) guys probably will eventually set standards,” said Martyn. Until they do, beware the material handling supplier that advertises “plug and play” components — they probably won’t be what you’re expecting.