Industry Today, Volume 27, Issue 2, Made to Stay: Attracting Gen Z Into Manufacturing
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Publisher’s Letter
We’re halfway through 2024! Our second quarterly issue of this year covers a wide range of topics, including profiles of two innovative manufacturers as well as the latest news on how industry is confronting a number of pressing issues, ranging from plugging the jobs skills gap to getting more plugs for EVs.
Read our feature article Right Part, At the Right Time, At the Right Price. While many companies struggled during COVID, Saskatchewan, Canada-based Fastener Warehouse actually doubled its business. An inventory management system that dramatically reduces supply chain expenses as well as other process improvements along with a commitment to quality and understanding customer requirements is how this company literally fastened onto growth during challenging times.
Another feature covers The Bid Group, which has provided industry-leading solutions for customers in the wood processing industry since 1924. One of its brands, Comcat, is celebrating its centennial with a new product introduction, the ResawExpert, an AI-powered linear resaw optimizer with vision to maximizes yield, reduce waste, and generate superior products. One of the key factors behind the Bid Group’s success is its emphasis on innovation. The company invests heavily in research and development to stay at the forefront of technological advancements.
Also in this issue, we look at strategies to strengthen value chains in light of continuing global disruptions. The findings are based on a survey of over 300 global operations executives, including more than 30 in-depth interviews.
Since June 2021, the manufacturing sector has experienced a 42 percent gap between the number of job openings and hires. McKinsey’s Talent Trends recommends providing environments more conducive to attract and retain Gen Z workers.
The BlueGreen Alliance unites labor unions and environmental organizations to solve today’s environmental challenges in ways that create and maintain quality jobs and build a clean, thriving, and equitable economy. BlueGreen Alliance Director Jason Walsh provides examples of what it calls the clean industrial revolution, initiatives that both reduce pollution and generate good paying jobs.
Here’s a Jeopardy!-type challenge for you. The answer: Georgia. The question: The U.S. state that is home to almost half of the country’s top 100 food processing companies. We take a look at Georgia food processing operations that contribute more than $11 billion each year to the U.S. $661 billion GDP.
The National Motor Freight Traffic Association, Inc. (NMFTA)™ identifies key cybersecurity threats to supply chains. It is no longer a matter of if an organization is attacked, but when. Advanced cybersecurity technologies and practices are vital to minimize potential threats.
Last but not least, the National Electrical Manufacturers Association (NEMA) tries to untangle the EV infrastructure web. According to the Pew Research Center, there are 61,000 EV charging stations in the United States today. By 2030, the Biden Administration has set a goal of 500,000 charging stations. NEMA considers issues related to closing that gap.
Thanks for reading this issue of Industry Today. As always, you can find timely coverage on a weekly basis at industrytoday.com.
www.industrytoday.com
spoeton@industrytoday.com
Publisher: Susan G. Poeton
Project Director: Brian McMillan
Project Managers: Jonathan Listig
Production: Melissa S. Burge
Art Director: Seema Mazhar
Contributing Designers: Jorge Leandro Rodrigues
Profile Editor: David Soyka
164 Market Street, Suite 176, Charleston, SC 29401 Ph. 973.218.0310
Industry
BID GROUP
GLOBAL VALUE CHAINS
FASTENER WAREHOUSE
66 GEORGIA
74 BLUE GREEN ALLIANCE
82 NOVA BUS
94 THE NATIONAL MOTOR FREIGHT TRAFFIC ASSOCIATION (NMFTA)
102 SUPER PRODUCTS
100 YEARS PIONEERING WOOD PROCESSING INNOVATION
Since 1924, the Bid Group has provided industry-leading solutions for customers in the wood processing industry.
PIONEERING PROCESSING INNOVATION
The Bid Group is a privately-owned Canadian company that designs and manufactures processing technologies, integrated solutions, reliability solutions, Industry 4.0 digital transformation automation, parts, and training for the wood
processing industry. Founded in 1983, the Bid Group has grown from a small family business into a diversified enterprise with a global presence, offering a wide range of products and services that cater to the evolving needs of the forestry products and wood processing sector.
A chief example is The Bid Group’s Comact division, renowned for its cutting-edge sawmill equipment technologies integrated with advanced software solutions to provide realtime data and analytics, helping operators make
nial anniversary of its Comcat brand, which was originally founded in 1924 as a small, family-owned sawmill company in the Beauce region of Quebec that in 2013 became part of the Bid Group.
In a recent press release, Bid Group CEO Alistair Cook says, “The last 100 years have been a testament to the hard work and pragmatic ingenuity that are the hallmarks of Comact. The company’s and brand’s growth and longevity in this competitive industry reflects its dedication to delivering exceptional, high-performance equipment and a reputed steadfast service to its customers.”
Adds Simon Potvin, Bid Group President of Wood Processing, “When Comact joined forces with BID Group, it was a strategic decision that has enabled us to leverage our collective expertise and legacy of operational lifecycle excellence. We are excited to continue this journey, honoring our roots while looking forward to executing our ambitious strategies that will
robust mechanical and electronic sawmill equipment used for:
• Log processing
• Log breakdown
• Edging and resawing
• Lumber processing
• Planing
• Bulk material handing
• Kiln drying
• Pellet production
All Comcat solutions aim to maximize yield and accelerate throughput via end-to-end services encompassing engineering, project management, after-sales support, training, parts, and upgrade offers. Three well-known industry brands further support Comact’s combined and
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comprehensive offers:
• Miller Manufacturing: state-of-the-art planer and infeed systems
• MoCo Engineering & Fabrication: lumber
• PHL: hardwood, white pine and softwood customization specialist for personalized mill
The Bid Group as a whole has emphasized its commitment to integrate AI into its wood processing technologies. The latest example is Comact’s ResawExpert, an AI-powered linear resaw optimizer with vision that maximies yield, reduces waste, and generate superior products. Key features include:
• Independent optimization and grading of all four product faces
• Rotation validation scanner
• Optimization of clear wood cuttings, NHLA cutting grades, or custom grades
• Quick and easy installation on an existing line without disruptions.
Innovation and Technology
Other brand names under the Bid Group umbrella include:
• DelTech: design and manufacture of turnkey continuous/batch kilns, biomass-fuelled energy system technologies, and pellet plant solutions to reduce energy consumption and related costs
• OPER8™: IoT (Internet of Things) solution for smart-connected sawmill operations that reduce operational costs while increasing factory output
• BD Automation: integrated control systems for process engineering and material handling automation
One of the key factors behind the Bid Group’s success is its emphasis on innovation.
The company invests heavily in research and development to stay at the forefront of technological advancements. No other equipment partner is as advanced as the BID Group. At the same time, the company aims to make these advanced technologies easily accessible with hassle-free deployment to any wood processor. AI is the backbone of every solution, and all systems incorporate standardized electronic components to generate reliable data so customers can make more informed decisions,
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boost performance, uncover undetected issues, optimize production, and safeguard operations from throughput issues.
Equally important is strategic acquisitions to extend not only its product and services portfolio, but geographic presence. One most recent example is the acquisition of YGE Inc, a supplier of top-tier saw guides, grinder, and critical consumables based in St. Raymond, Quebec. In a press release announcement of the acquisition, Potvin comments how the acquisition “marks another important step in meeting our valued customer demand for modern, high quality and innovative saw and tooling technology solutions. This partnership builds on previous investments in Smith Sawmill
Congratulations to the BID Group on 100 Years!
Services, BLADE cutting tools, and the recently announced acquisition of Industrial Cutting Solutions in Alabama.”
Sustainability and Environmental Responsibility
Sustainability is a core value at the Bid Group. The company is committed to reducing its environmental footprint and promoting sustainable forestry practices. It collaborates with clients to implement eco-friendly solutions that minimize waste, reduce energy consumption, and enhance resource efficiency.
In addition to its sustainable product offerings, the Bid Group actively participates in initiatives aimed at preserving forest ecosystems. The
company supports reforestation programs and works closely with regulatory bodies to ensure compliance with environmental standards.
Customer-Centric Approach
The Bid Group’s customer-centric approach is another cornerstone of its success. The company prides itself on its ability to deliver customized solutions that meet the unique needs of each client. With reduced construction and ramp-up periods, mills benefit with a quicker payback and improved return on capital. This turnkey approach reduces owner effort, risk, and wasted money, resulting in a modern and top-performing mill right out of the gate.
BID Group is the only company in the wood processing industry proven to effectively design, fabricate, install, and commission both large and small capital projects.
From initial consultation and design to installation and after-sales support, the Bid Group offers a comprehensive suite of services that ensure customer satisfaction at every stage of the project.
This dedication to customer service is exemplified by the company’s 24/7 support team, which provides technical assistance and troubleshooting to minimize downtime and keep operations running smoothly. The Bid Group’s extensive network of service centers
across North America further enhances its ability to respond quickly to customer needs.
Global Reach and Impact
While the Bid Group’s roots are in Canada, its impact extends far beyond. The company has offices in 15 key locations to serve its global customer base, completing projects in various countries, with a demonstrated ability to adapt to different markets and regulatory environments. This global reach is supported by strategic partnerships and a strong supply chain that ensures timely delivery of products and services worldwide.
The Bid Group’s international success is also
a testament to its reputation for quality and reliability. Clients around the globe trust the company to deliver innovative solutions that drive efficiency and profitability in the forest products industry.
Looking ahead, the Bid Group is poised to continue its trajectory of growth with new technologies such as AI, robotics, and IoT to further enhance its product offerings and bring new levels of automation and connectivity to the forestry sector, enabling smarter and more sustainable operations.
As the forest products industry faces new challenges and opportunities, the company is well-positioned to lead the way with solutions
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that drive progress and create value for its clients and communities.
The Bid Group’s remarkable journey from a small family business to a global leader in the forest products industry is a testament to its vision, innovation, and dedication. By staying true to its roots while embracing new technologies and sustainable practices, the company continues to set new standards for excellence in the forestry sector. As it moves forward, the Bid Group is sure to remain a key player in shaping the future of the forest products and word processing industry.
RIGHT PART, AT THE RIGHT TIME, AT THE RIGHT PRICE
Fastener Warehouse Ltd. is a wholesale distributor and solutions services provider for specialty and standard fasteners for all manufacturing sectors.
It might not have boded well to acquire a company in 2020 at the start of the pandemic, but Canada-based Fastener Warehouse, a wholesale distributor of industrial fasteners, more than doubled its business during COVID, a time when most businesses struggled with supply chain issues. The reason lies with the transformation of the 30-year old business from a parts supplier to a manufacturer’s fastener inventory and supply chain management partner.
“Our success during COVID, and our success
going forward, is the result of our ability to develop client relationships based on mutual values to ensure they get the right part, at the right time, at the right price,” notes Operations Manager Eric von Doellen.
Headquartered in Saskatoon, Saskatchewan with 59 employees on staff, Fastener Warehouse sources the manufacture of a variety of standard Class C fastener parts—nuts, bolts, washers, pin, screws, latches, rivets, anchors—to hold in
stock at any given time over 50,000 components for customers in a total of 75,000 square feet in four warehouses, with the main warehouse and headquarters in Saskatoon and other locations in Calgary Alberta, Regina, Saskatchewan and
Winnipeg, Manitoba. In addition to standard parts, Fastener Warehouse offers custom manufacturing solutions that streamline the entire build-to-spec process to fit any project’s particular requirements, using both standard metals as well specialized alloys.
Fastener Warehouse’s Vendor Managed Inventory (VMI) system provides customers with a lean and efficient supply chain that dramatically reduces overall costs in managing and procuring fasteners, ensuring optimal inventory levels adjusted according to usage. Customers get easier to manage materials, save on purchase and production planning times, all the while freeing-up floor space for other activities
The company employs color-coded single and multi-bin systems for quick and accurate product identification. Advanced digital scanning software helps streamline inventory processes and improve efficiencies. Both systems employ advanced Kanban visual signaling methods to manage workflows and ensure precise inventory levels. This results in a significant reduction of inventory-related issues such as overstocking or shortages, resulting in more efficient use of space and resources.
Customized kitting and packaging services ensures seamless integration with end-user production processes prepared for immediate
Pictured: Kitting: the blueprint of efficiency.
assembly. Pre-assembled kits avoid assembly delays, eliminate risk of cross-assembly, and reduce inventory management complexity. The result is significantly faster-time-to-market with less labor costs.
Quality Gains Customer Trust
“Anyone can sell parts,” notes Sales Manager Kevin Loehndorf. “Understanding customer requirements and earning customer trust and confidence in our ability to manage their inventory and supply chains for high-quality products is what distinguishes us from a mere parts supplier.”
Earning that trust begins with Fastener
Warehouse’s ISO 9001:2015 Quality Management Certification. “We’re constantly improving our processes and our measures of excellence,” von Doellen says. “Our manufacturing partners know our expectations and know to meet them and exceed them.”
He adds, “We have an on-site QC testing laboratory that complies with our customers’ concept and engineering departments to ensure specifications are precisely met, with 3D capabilities down to the level of 2 microns. To give you an idea of that kind of accuracy, a single strand of human hair is 50 microns. So, if a part spec isn’t quite getting met, we can quickly identify it and correct it.”
In addition, von Doellen emphasizes that, “Our quality commitment to the parts themselves also extends to the management of parts. Our inventory systems help reduce customer costs by eliminating expensive in-house manufacturing and lowering administrative costs, while also ensuring optimal stock levels to avoid expensive downtime from parts shortages. Equally important, our vendors are integral to our operations, and we appreciate their efforts in working with us in improving supply chain efficiencies.”
Shared Values Gain Customer Trust
Effective management of fastener sourcing for customers across manufacturing sectors— including agriculture, oil/gas, mining, automotive, recreation, entertainment, general light and heavy manufacturing, electronics, forestry, and utilities—is just one part of the Fastener Warehouse’s value proposition. Of equal importance is the company’s commitment to ESG (Environmental, Social, Governance) principles.
“There’s growing awareness of the need to minimize our environmental footprint. Fastener Warehouse requires our manufacturers to employ sustainable practices for materials sourcing as well as production and delivery that balance performance with environmental responsibility,” von Doellen says. “We adhere to ISO 14001, the global standard for Environmental Management Systems, and are dedicated to
reducing waste, conserving resources, and adopting eco-friendly technologies wherever possible.”
He adds, “We do that not only because we truly believe it is the right and ethical thing to do, but because our customers also believe it is the right and ethical thing to do.”
Safety and Human Values
A better working environment is another goal of ESG principles. Despite many improvements forced and child labor, human rights and safety abuses remain an issue in many parts
Pictured: ESG: charting the course for ethical progress.
of the world. Fastener Warehouse insists on stringent safety protocols and regulations that ensure the safest possible working that align with ISO 45001, the international standard for Occupational Health and Safety Management Systems.
“We only work in regions that share our values relating to safety and human rights,” von Doellen says. “The more we demand of our manufacturing partners, the more manufacturers will rise to meet those demands.”
Costs, Price, and Education
Of course, pricing is always a key consideration in winning and retaining customers. “Following COVID, we’re proud of the fact that we were
able to maintain sales without any major price increases,” Loehndorf says. “Covid periodically shut down many parts of the world and started a global Supply Chain crisis that continued through 2023. A lot of our resources were focused on sourcing and delivering products to our clients through an unprecedented time. We did, however, continue to focus on understanding and controlling costs within our system as well as with our clients. We are very proud of the fact that during a time when raw material shortages and price increases as well freight costs were six to seven times more than normal, we were able to meet our clients’ needs without any major price increases by employing some
creative procurement and inventory strategies. We continue to work hard at understanding and reducing costs for the mutual benefit of our clients and us.”
Another way to keep price down is to improve efficiencies on the customer side. “Our customers are our partners. Understanding their requirements is the first step in that partner-
ship,” Loehndorf says. “The next is to apply and share our expertise and experience with them to ensure they get exactly what they want, when they want it at the best cost. This forms the foundation of the deep-seated trust
Pictured: Partnering with customers for tailored solutions and optimal value.
and personal connections we establish with our clientele. ”
Fastening Growth
A more general business stable environment also means slower growth for Fastener Warehouse. “While we do not anticipate the level of growth we witnessed during the pandemic, our objective remains to pursue expansion opportunities.,” Loehndorf says. Part of our growth strategy is expansion through acquisition. In january we acquired Ridgeline Fasteners, a Calgary supplier. They were a good fit for us because their values and product quality aligned with ours. This helps broaden our geographic reach and leverage Ridgeline’s established relationships into other industries. We’re looking at similar kinds of acquisitions to expand beyond
our base and grow the business.”
Currently, Fastener Warehouse primarily serves western Canada and Midwest United States, and is most well-known in the agricultural industry. “That’s the origin story of Fastener Warehouse,” von Doellen says. “It started out back in 1994 in an 1800 square-foot warehouse to supply nuts and bolts to agricultural manufacturers. Since then, and with our acquiring the company, Fastener Warehouse has expanded into all manufacturing sectors and we’re selling internationally. We’re looking to grow not only through acquisitions, but also by adding products and benefits for our customers. Our aim is to constantly meet the demands of our customer partners, on time, every time. That’s how we get bigger and better.”
MADE TO STAY: HOW CAREERS CAN ENTICE
Manufacturers may need to rethink their value proposition and working environments to attract and retain Gen Z on the line.
The US manufacturing sector is having a hard time filling vacancies—and keeping people in jobs. Gen Z workers could help fill this gap, but manufacturers will need to adjust old ways of doing things to attract and retain a generation for whom security, respect, and making a difference matter more than compensation alone.
The need to attract more Gen Z workers into manufacturing comes against a backdrop of a persistently tight labor market. Since June 2021, the manufacturing sector has experienced a 42 percent gap between the number of job openings and hires. And more than a third of US manufacturing employees across all ages are planning to leave their job in the next three to six months.
HOW PRODUCTION ENTICE GEN Z
Technology and the unfolding Fourth Industrial Revolution (4IR) could alleviate some of this labor pain, but in the immediate term, organizations are capturing less than a third of the expected value from digital transformations. Solutions will need to come from the labor market itself.
To be in the running for highly sought-after workers, manufacturing may need to rebrand itself to draw in—and keep—more young talent. McKinsey’s Talent Trends research has found that about three in five Gen Z workers in manufacturing are disengaged, and this level of disengagement could be costing US manufacturers an estimated $20 billion to $40 billion per year.
Understanding Gen Z and what makes them tick
So, what can be done? First, manufacturers need to understand how Gen Z differs from other generations in terms of why they take a job, stay in it, or leave.
The good news is that, in most respects, Gen Z’s preferences align with their older colleagues. McKinsey’s research has found three important differences, however: money matters less for Gen Z than for other generations; security and respect are important; and more than other workers, Gen Z employees want to feel they are making a difference.
The less good news is that Gen Z workers have ample opportunity to find a job that meets
these needs. Since 1970, the annual US unemployment rate has averaged below 4 percent for only four years (2018, 2019, 2022, and 2023)— with all of them occurring after 2015, when the oldest Gen Z members turned 18. With arguably more choices available to them
as they enter the workforce, Gen Z workers are taking jobs less for compensation and more because of factors including their relationships with coworkers (43 percent), the chance to do meaningful work (41 percent), and workplace flexibility (38 percent), a recent McKinsey survey has found.
Forward-thinking manufacturers are already changing how they think about and value their frontline workers in a post COVID-world. And this greater sense of appreciation could be key for this generation.
For Gen Z manufacturing employees, ‘meaningful work’ is especially important.
Top reasons Gen Z manufacturing employees give for taking, keeping, or leaving a job,1 % of respondents listing reason as top 3
Rethinking manufacturing work environments
Despite this change in perception, McKinsey research confirms that not nearly enough Gen Z workers are entering the field to fill factory vacancies. Since 2019, 20 million Gen Zers have reached adulthood, yet Gen Z’s share of the manufacturing workforce has declined from 8 percent to 7 percent.
And, once in a job, our research has also found that Gen Z engagement levels tend to be
low, and they’re more likely to quit than older workers. A focus on flexibility, connectivity, and meaning could make a difference.
Flexibility. Factory environments tend to have rigid shift patterns and long working hours that do not meet this generation’s desire for flexibility. One US food manufacturer has attracted more applications by radically rethinking its 12-hour shifts, for example. Surveyed workers at the factory listed “schedule” as the number two reason they’d quit, and after several months of unfilled vacancies for line operators the
McKinsey & Company
pany introduced new ways of working: switching packaging roles from full-time to part-time; letting workers opt in to shifts based on their availability; and allowing them to cross-train for different roles. The change in approach led to a flurry of new applications.
Connectivity. Merging digital and analog skills to create a hybrid work environment could be another way to drive engagement. Gen Z is a digital-first generation that has grown up with technology. Manufacturers could take
advantage of these workers’ natural tendency to lean on technology, but will need to make adjustments for this, too. On the one hand, Gen Z may be more comfortable turning to technology to solve problems quickly, feeling at ease with generative AI co-pilot-style tools, for example. On the other, they may be less comfortable turning to older co-workers to learn the job. To keep young workers engaged, manufacturers may need to combine digital and analog skills to create a hybrid work environment that
At many manufacturers, supervisors don’t have time to lead.
Daily activities, factory oor supervisor, % of work shift hours
Note: Figures do not sum to 100%, because of rounding.
McKinsey & Company
Tyler Freeman is a consultant based in McKinsey’s Atlanta office and a leader within McKinsey’s Frontline Workforce of the Future service line.
Marino Mugayar-Baldocchi is a research science expert based in New York, who leads McKinsey’s global research on employee experience and organizational labor productivity, focused on the frontline.
Fernando Perez is a senior partner based in Miami driving end-to-end transformations for manufacturing and service companies. He leads McKinsey’s Frontline Workforce of the Future service line globally.
Julian Salguero is a partner based in Miami and co-leader of McKinsey’s Frontline Workforce of the Future service line. He advises organizations on operations strategy, supply chain management, digital and lean manufacturing, and change management
helps Gen Z get the most from technology as well as their relationships with more experienced coworkers.
Meaning. To convince Gen Z that it’s better to stay and develop their career, manufacturers may also need to create new career pathways and opportunities for growth and development. This includes providing meaningful work that aligns with Gen Z’s values and interests. Some of this may, again, involve harnessing technol-
ogy or giving line operators more opportunities for problem solving. One consumer goods manufacturer, for example, has created a new role that bridges the gap between operating and maintenance workforces. A skills-based training program pairs operators with maintenance technicians and has introduced new incentives for operators linked to their development of new skills and improved performance on the line.
Getting strategic about talent
McKinsey analyses on the value of talent estimate that each frontline employee departure could cost about $52,000 annually in recruiting, training, and onboarding productivity losses, above and beyond their salary.
Given what’s at stake, leaders need to get serious about changing the operating model to prioritize talent and workforce development. Manufacturers could consider a number of
talent-boosting tactics:
Establish a talent transformation office to centrally identify, track, and improve all the initiatives that impact workers and their engagement.
Invest in workers through onboarding, upskilling, retention initiatives—and track and measure these investments over time.
Create a talent win room to understand the value proposition for different generations, and adjust accordingly based on surveys, exit interviews, and what supervisors are hearing from teams.
Prioritize supervisory capability building to ensure that supervisors are coaching appropriately and spending time on what matters most.
Rethink talent planning to define the skills you’ll need in one year and five years from now, considering how you will secure talent in a tight labor market and leverage technology in the factory of the future.
Recent labor market challenges aside, manufacturing has always struggled to brand itself as a sought-after career opportunity. But technol-
ogy is changing the face of manufacturing and a new generation of workers have a chance to come in and feel they are making a difference.
To attract Gen Z, leaders can create an environment that supports a highly engaged, highly retained, and highly productive workforce. Knowing what makes these workers tick is a great place to start.
STRATEGIES FOR REWIRING
GLOBAL VALUE CHAINS
REWIRING CHAINS
As global disruptions grow in intensity and frequency, businesses will need to continually rewire and strengthen their value chains.
Recent geopolitical tensions, rapidly changing technology, and a growing climate crisis have upended global value chains and sent executives scrambling for ways to make their supply chains more flexible, resilient, and sustainable. No small task. Nevertheless, leading manufacturers are making headway, rewiring their value chains to address constant disruption, and sometimes even turn it to their advantage.
Simplification and streamlining is not always the answer in an environment fraught with societal, environmental, and geopolitical upheaval. Rather than stripping away complexity from their value chains, manufacturers may be better served by harnessing the scale and interconnectedness of their networks and embracing new, holistic, and data-driven methods to increase efficiency.
Recently, Kearney, in partnership with the World Economic Forum, conducted a survey of over 300 global operations executives, followed by a series of more than 30 in-depth interviews to better understand how manufacturing and
supply chain leaders are redesigning their value chains. We looked at strategies across five distinct trends, characterized by the following shifts that leading manufacturers are making, from:
• Global to globally connected, multi-local value chains
• “Doing” digital to “being” digital across
end-to-end operations
• Economies of scale to economies of skill
• Regulatory compliance to innovative sustainability
• Cost-driven to customer-value-driven
We also found that while most executives acknowledge the importance of these shifts, evidence points to a significant gap between strategic ambition and operational delivery. Not surprisingly, leading companies are the ones making the most progress in closing this gap, and the strategies they are using can serve as guideposts for others facing similar challenges.
From global to globally connected
The pandemic, climate catastrophes, and rising tensions in multiple areas around the world have driven home the pitfalls of relying too heavily on overseas suppliers in the pursuit of lower costs. The path that is currently emerging is one in which the value chain is globally connected, yet multi-local in its composition. But balancing local and regional sourcing can be challenging, as evidenced by our survey results: while 92% of manufacturers said they are prioritizing regionalization, only about a quarter
Pictured: 92% of manufacturers surveyed are prioritizing regionalization and 64% of executives surveyed think AI is central to lowering supply chain costs/increasing resilience.
Source: World Economic Forum and Kearney global value chain disruption survey of senior executives, November-December 2023.
(28%) expect to have in-region-for-region operations by 2030.
Leading manufacturers recognize the need to strike a balance between local and global supply. Many are selectively reshoring such functions as innovation research and development, intellectual property, and the more com-
plex elements of their value chains, while keeping other functions offshore to take advantage of lower manufacturing costs. Building a diversified manufacturing network that prequalifies suppliers in different regions as standby options is another risk-reduction strategy. Leaders plan to further refine and enhance value chain devel-
opment by using end-to-end stakeholder collaboration to enable flexible nodes and real-time re-routings.
From “doing” digital to “being” digital
Digital technologies have been transforming
enterprises for decades, and the pace of change is only increasing. Today, artificial intelligence is top of mind for most business executives. Indeed, nearly two-thirds (64%) of executives we surveyed perceive AI as central to lowering supply chain costs and increasing resilience. However, a mere 1% say they have been able to fully automate processes through AI or robotics, an indication that such barriers as complex legacy systems and cultural resistance remain formidable.
What distinguishes leaders is their progress in harnessing AI and other cutting-edge digital technologies. Nearly half of these companies say they have adopted advanced planning systems (APS) for demand forecasting, while around one-third have introduced AI either as a standalone capability or in conjunction with APS. These leaders are revamping their legacy systems and investing in technologies that give them real-time supply chain visibility. They are laying the groundwork for future strategies, including combining advanced analytics, big data, and GenAI to optimize value chains; integrating AI decision-making capabilities with supply chain digital twins; and implementing real-time enterprise resource planning (ERP) to improve decision-making.
Pictured: 66% manufacturers surveyed select suppliers with best sustainability credentials. Source: World Economic Forum and Kearney global value chain disruption survey of senior executives, November-December 2023.
From economies of scale to economies of skill
One of the biggest barriers to optimizing the latest technological advancements is a skills gap. Workers simply do not have the skills that companies will need to remain competitive, and it is estimated that 60% of the global workforce will require significant training to meet the future needs of their employers. Leading
manufacturers are far better prepared for the future, with some 72% of those surveyed saying their operations people have the skills to run the supply chains of 2030, compared with only 53% of non-leaders. These companies are not only investing in reskilling and upskilling programs, but they are rethinking organizational structures—for example, shifting to a model in which 80% of the workforce is able to work
across functions, while the remaining 20% focuses on specific capabilities.
From regulatory compliance to innovative sustainability
Most companies today say that sustainability is high on CEOs’ agendas, but some find meeting sustainability goals to be challenging. For example, only 14% of companies surveyed said they
are redesigning their manufacturing networks to reduce Scope 3 emissions.
The cost associated with achieving sustainability goals is a frequent barrier. Nevertheless, leading manufacturers often prioritize sustainability over cost: two-thirds (66%) say they have selected a supplier that had the best sustainability credentials but not the best price, compared with only a third (34%) of non-leaders.
These companies are building fully measurable zero-carbon supply chains, with an eye to reducing Scope 1, 2, and 3 emissions. By definition this involves close collaboration with suppliers and customers to ensure everything from raw materials to final product is as sustainable as possible.
From cost-driven to customervalue-driven
Meeting consumer demand in a challenging value-chain environment helps companies retain or even gain market share. But this requires a reorientation that prioritizes short lead times, in order to meet customer demand. Easier said than done: while a majority (60%) of compa-
nies we surveyed rate customer value as one of the priorities driving supply chain reconfiguration, only 15% could cite tangible examples of actions designed to meet customer expectations.
Leading companies maintain a close watch on customer needs, creating omnichannel strategies to ensure rapid order fulfillment and building flexibility into manufacturing processes. Once again, effective demand planning will require end-to-end supply-chain collaboration. This allows manufacturers to rewire their supply chains so that customer value can be created at each point in the supply chain.
Pictured: Photo Credits: Depositphotos.com
Enabling tomorrow’s value chains to flourish
There is little doubt that ongoing disruptions mean that organizations will need to rewire their value chains for better flexibility and value creation. The effort will take time, capital, and commitment. It also calls for a step-change in current levels of stakeholder collaboration, including between the public and private sectors. Multi-stakeholder engagement will play a vital role in the development of industrial policies and strategies aimed at creating global value chains that are both robust and resilient in the face of the challenges of the future.
The electroindustry’s perspective to untangling the EV charging infrastructure web, from critical minerals to workforce development.
According to the Pew Research Center, there are 61,000 EV charging stations in the United States today. By 2030, the Biden Administration has set a goal of 500,000 charging stations across the country. When you do the math and check the calendar, you might be asking yourself, how do we close such a large gap?
The National Electrical Manufacturers Association (NEMA) is the largest trade association of electrical manufacturers in the nation, representing one percent of GDP, more than 300 companies, and half a million American workers across all 50 states. Our members include manufacturers of EV charger stations and the electrical infrastructure necessary to build them.
Electric vehicle charging infrastructure is not just a piece of equipment. Rather, it represents a combination of hardware, software, cables and cable management, and analytics integrated into a network that delivers energy safely, reliably, and efficiently to a vehicle.
Infrastructure includes additional critical site elements encompassing lighting, controls, and other communication devices that enable the safe use of the charging equipment and enhance the security while optimizing overall energy efficiency and minimizing carbon impact.
Our commitment to electrifying our nation’s transportation systems stems from the multitude of benefits this transformation will bring to
our economy and to our climate goals.
We’re approaching three years since the signing of the Infrastructure Investment and Jobs Act (IIJA). Both the IIJA and The Inflation Reduction Act (IRA) are sending billions of dollars in federal funding to states to modernize and electrify our nation’s infrastructure and transportation. Like any major rollout, reaching the stage where these goals materialize will take
time and we are speeding up.
To buffer this funding from the federal government, our members have already invested $12 billion to date in dozens of manufacturing facilities around the country to foster and strengthen domestic manufacturing and supply chain capabilities for EV charging equipment.
Recently, NEMA had the opportunity to lead a panel discussion at the IEEE meeting in Minneapolis to see how this funding is moving into states. We heard directly from Minnesota DOT officials on the status of their NEVI funding program and the crucial role that the state’s primary utility Xcel Energy will have in the successful deployment of, an operational EV charging station. The National Electric Vehicle Infrastructure (NEVI) program is rolling out in earnest and we expect to see more states making awards and releasing solicitations in the coming months.
As we approach the halfway point of 2024, it’s important to look at issues like workforce development and the policy side of electrified transportation can unlock to accelerate this
Steve Griffith, PMP, Executive Director, Regulatory & Industry Affairs, Mobility, National Electrical Manufacturers Association (NEMA)
Steve Griffith currently serves as Executive Director Regulatory & Industry Affairs, Mobility and the association’s overall cybersecurity activities. He brings more than two decades of experience in IoT, cybersecurity, electrified and intelligent transportation systems. Prior to joining NEMA he managed projects for the Department of Defense and the Transportation Security Administration. Nema.org
transition.
• We are losing 3,000 electricians a year. We need a strong domestic focus on attracting and retaining the next generation of workers. To address that, NEMA led the signing of a historic memorandum of understanding (MOU) with fellow electrical associations National Association of Electrical Distributors (NAED), National Electrical Contractors Association (NECA), and National Electrical Manufacturers Representatives Association (NEMRA) to tackle this shortage.
• Our members share the goal of fostering and strengthening our domestic manufacturing and supply chain capabilities for EV charging equipment via responsible right shoring techniques such as phasing in requirements, allowing for substantial transformation, and providing clear rules governing these requirements across all funding programs.
• Advancing the Critical Minerals Security Act, which would help counter Chinese dominance in the critical mineral industry. This legislation was introduced by a bipartisan group of Senators and represents a great first step towards helping solve this fundamental supply chain challenge.
Fundamental to achieving this future electrified transportation ecosystem NEMA has recently put forth following recommendations. This deployment should strive towards standardization and interoperability and allow for enhanced communication and coordination
between the vehicle, the charging station, and the grid to maximize the benefit and convenience for vehicle owners while not overly stressing the grid. This approach will create a more stable environment for innovation, accelerate infrastructure rollout, and lead to faster consumer adoption.
Publicly funded charging locations should be interoperable with all electric vehicles. For a charging system to energize a vehicle’s battery,
there must be a common physical connection point and “handshake” between the vehicle’s battery management system (BMS) and the charger. The BMS will need to communicate important parameters of the battery to the charger, such as state of charge, power capability, environmental conditions, and other data that are critical to safety, battery longevity, and commercial interoperability. The connection and communication between a vehicle and
charger should be based on a common protocol and a language fluency that creates a seamless charging experience for all vehicles and all users.
There’s work to do, no doubt about it. Our team and our members understand this is a marathon, not a sprint. We know that when we cross the finish line, our electrified transportation system will deliver economic, climate and social benefits for generations to come.
MAKING IT
Väderstad is a leading manufacturer of tillage, seeding, and planting farm equipment designed to ensure perfect emergence and maximize yields.
A LAST
s you might imagine from the name, Väderstad is a Swedish family-owned company. While based in the town of Väderstad, the tillage, seeding, and planting farm machines it makes are used throughout the world, known for their ability to carry out multiple tasks at a high rate in a single pass.
Väderstad is represented in 40 countries and on all continents. In 2023, Väderstad had 2,200 employees. It recently announced the completion of a 12,600 square meter (135,625 square feet) factor expansion to meet growing global demand and enhance operational efficiency. The expansion is expected to be fully operational by the second half of 2024 with
state-of-the-art assembly lines for its Proceed and Tempo product lines, and a new paintwork station, capable of annual production capacity of 10,000 machines. Total production area in Sweden with the expansion is approximately 70,000 square meters (about 753,474 square feet).
The company works closely with farmers to develop tillage methods and seed drills, cultiva-
tors, harrows, and rollers suitable for different climate zones around the world. All Väderstad machines are backed by two-year warranties in the tradition of company founder Rune Stark’s guiding motto to “make it last.”
Started in 1962, between 2020 and 2023 Väderstad more than doubled its sales, and in 2021 entered the U.S. market with the acquisition of North Dakota-based AGCO-Amity
JV, a joint venture between AGCO Corp. and Amity Technology that manufactured seeding and tillage products under the Concord, WilRich, and Wishek brand names. It had earlier entered the Canadian market in 2006 by buying a stake in Saskatchewan-based Seed Hawk, a manufacturer of seeding and fertilization drill systems, that it fully took over in 2013. North American production is maintained in facilities
in Langback, Canada and Wahpeton, North Dakota. Machines are built both for dealer inventories, as well as to custom orders.
The Seed Hawk Air Drill + Precision Delivery Air Carts combine precision, capacity, and flexibility to deliver exceptional seed and fertilizer placement in one pass. The result is quick, uniform crop emergence, better quality and higher yields for a better return on investment.
Väderstad tillage products encompass a range of tine cultivators, a combination cultivator, disc cultivators, tine harrows, and rollers. The Tempo series of planters is a new generation of high-speed planter, with unmatched precision with double the speed of traditional planters. The front-mounted fertilizer hopper FH 2200 enables high precision combi-drilling; the 2200liter hopper is equipped with the electric Fenix III metering system and is suitable for large capacity and high working speeds on the field to take full advantage of Tempo planter capacity.
In addition to it Seed Hawk line of seeders, Väderstad makes and distributes various seed drills under the Rapid, Spirit, and Inspire nameplates. BioDrill is a mountable small
seeder that can be fitted on Väderstad cultivators and seed drills; BioDrill is equipped with a precise radar-controlled metering system that provides an even distribution over the entire working width. For 2024, the capacity of the BioDrill for Rapid 300-400C/S seed drill is increased by 40 percent.
Ground-breaking (Literally!)
Innovation
Väderstad prides itself on constantly pushing the limits and continuously presenting ground-breaking innovations. Given that the greatest potential to improve the final emergence is found in the soil, where it actually happens, many of Väderstad’s most revolutionary innovations are wear parts. The company’s CrossCutter disc, for example, works ultra-shallow and intensively at high speed, creating the perfect seedbed for the residues to decompose and the seedbank to germinate. For the 2025 season, Väderstad introduces a new version of the disc cultivator Carrier 925, able to hold three disc axles fitted with the unique CrossCutter Disc. This machine will be an important step for mechanical weed control of resistant weeds.
As another example, the shape of the new Marathon Edge increases soil searching ability while at the same time reducing draw force in heavy soils. And the BreakMix point combines the advantages of breaking compactions with highly intensive mixing.
For model year 2024, the new Following harrow Marathon tine is available as an aftermarket upgrade to new and existing Väderstad machines. By strengthening the following harrow tine with hard metal at the critical point of wear, the working lifetime of the tool is drasti-
cally increased.
Väderstad E-Services makes it easy to control and monitor any farming machine. These include a modern iPad-based control system that wirelessly connects to the Väderstad machine, enabling full access to its functions
and data. The ISOBUS virtual terminal provides control access over such tasks as machine control, troubleshooting, and headland automation. The iCon Wireless Control System is a tablet-based control system for simple, complete control of a Seed Hawk air cart and toolbar.
A commitment to innovate agriculture is at the core of Väderstad. After 62 years, it continues to support farmers in efforts optimize their farmlands to secure a sustainable food production for generations to come.
GEORGIA’S PERFECT FOR FOOD PROCESSING SUCCESS
Here in Georgia, food processing contributes more than $11 billion each year to our $661 billion gross domestic product (GDP) making it a top 10 U.S. state for food processing.
Almost half of the country’s top 100 food processing companies have operations in Georgia, and with the eighth-largest refrigerated capacity space in the U.S., the industry is positioned for continued growth. In terms of crops, the state leads the nation in the production of peanuts, eggs, and broilers, with blueberries rising as a prominent Georgia export. Many food processing companies located in Georgia – including
PERFECT RECIPE PROCESSING
Pilgrim’s Pride, Chick-fil-A, Coca-Cola, and Tyson Foods – source their products directly from Georgia farms and operations.
Global food and beverage giants are continuing to choose Georgia – in 2023, Yakult, a Japanese probiotic beverage company, announced it had selected Georgia for its $305 million,
The Peach State’s robust food processing sector contributes over $11 billion to its economy.
production facility; CJ Foodville USA, the Korean company behind bakery chain Tous les Jours, announced a $47 million bakery and food processing plant; and Walmart announced a new dairy processing facility, creating 400 new jobs and over $350 million in investment. How do we make it happen? It’s a comprehensive strategy that encompasses workforce initiatives, tech innovation, business resources, advanced storage capabilities, and accessibility.
Workforce
Food, fiber production, and related agriculture industries support more than 320,000 jobs in Georgia. Educational offerings include degree pathways from 22 technical colleges on 88 campuses, in addition to top-ranked programs and research in food safety and processing.
Georgia Quick Start, the No. 1 workforce development program in the country, has updated the skill sets of more than 1 million employees in numerous industries, including food processing. The program has been utilized by Premium Peanut and King’s Hawaiian, both of which qualified for customized job training, including courses for automated control systems.
Innovation
Georgia is home to several universities at the forefront of automating processes for alleviating workforce shortages, reducing waste, and cutting costs. This includes variable rate irrigation, integrated precision agriculture, ControlledEnvironment Agriculture (CEA), food product innovation, and food system technology integration.
The Georgia Artificial Intelligence Manufacturing (GA-AIM) Technology Corridor, a statewide initiative led by Georgia Tech, was recently awarded $65 million to accelerate the
development of AI technology and workforce training.
The Center for Food Safety at the University of Georgia (UGA) works closely with the Atlantaheadquartered Centers for Disease Control (CDC) to develop techniques to detect, control, and eliminate disease-causing microorganisms and toxins.
The Peach State isn’t known for producing leafy greens, tomatoes, and other fresh vegetables year-round, but with new (CEA) technology in the form of greenhouses and indoor warehouse operations, this is now a reality. Georgia
Pictured: Georgia is home to nearly 10 million acres of operating farmland, lengthy growth seasons, and a favorable climate. (Credit Georgia Department of Economic Development) right: Rendering of Walmart’s milk processing plant in Valdosta, Ga. The $350 million facility is scheduled to open in 2025. (Credit Walmart)
is home to many CEA companies such as Pure Flavor, Kalera, Local Bounti, and Better Fresh Farms. Local Bounti’s Georgia facility uses 24 acres of growing area, which requires 90 percent less land and water than traditional farming.
Business Resources
Unique to the state, the Georgia Center of Innovation (the Center) connects state business-
es with appropriate resources, including expert staff members, external partners, and independent mentors, to help them overcome challenges and embrace opportunities within the food processing industry.
Take Pete’s Produce company for example –the support it received from the Center began in 2017 and eventually led to the establishment of a new hydroponic agriculture facility in Peach County. Based on the company’s
success, in 2021, an $18 million capital investment provided consumers with a range of sustainable packed salad varieties and greens. Its success caught the attention of Local Bounti Corporation, a publicly traded indoor agriculture company. Bounti acquired Pete’s in March
KRISTI BRIGMAN:
2022 to advance its indoor growing technologies and bring fresh and sustainable greens to underserved communities throughout the state. Sweet Grass Dairy, which produces a wide range of high-quality, cow’s milk cheese products, went from selling locally in Thomasville to
Kristi Brigman is the Deputy Commissioner of Global Commerce at the Georgia Department of Economic Development, where she leads the team responsible for attracting job and investment growth to the State of Georgia. Her recruitment successes at GDEcD include Visa’s office hub expansion in Midtown Atlanta, Cisco’s Talent and Collaboration Center, Papa Johns’ Global Headquarters, and Hapag-Lloyd’s North American headquarters.
establishing an acclaimed cheese factory with more than 50 employees and distribution to 40 states. It was in part thanks to the Center’s resources that helped the company identify the appropriate product shelf life, which allowed for additional time for safe travel and storage to other markets.
Cold Chain Storage
Georgia is leading the way in temperature-controlled and frozen storage capabilities, with over 67 cold chain storage facilities and 189 million cubic square feet of space. Over 85% of the
Pictured: The Port of Savannah is home to the largest single-terminal container facility of its kind in North America and is comprised of two modern, deepwater terminals: Garden City Terminal and Ocean Terminal. (Credit Georgia Ports Authority).
world’s third-party logistics providers operate in Georgia, 80% of global public refrigerated warehousing companies have locations in Georgia, and 40% of global public refrigerated warehousing companies have headquarters in Georgia.
Savannah has the largest concentration of import distribution centers on the East Coast. The Port of Savannah has more refrigerated container capacity than any East or Gulf Coast terminal, with over 2,800 reefer rack slots currently and plans to expand the cold cargo capacity at the Garden City Terminal to more than 3,500 slots.
Efficient Logistics
With 1,200 miles of interstate highways,
including I-75, I-85, I-95 and I-20, and an additional 20,000 miles of federal and state highways, businesses can easily transport products in and out of the Southeast. This strategic domestic market is projected to expand from 80 million people to over 98 million by 2030, which is equivalent to 27 percent of the U.S. population.
For companies importing or exporting globally, the Port of Savannah, single largest and fastest-growing container terminal in America, is connected to the rest of the state by two on-terminal Class I railroads (Norfolk Southern and CSX). With 5,000 miles of railroads, Georgia
has the most extensive rail system and largest intermodal hub in the Southeast region of the United States.
By leveraging our robust education system and proactive industry strategies, we are creating a resilient and competitive food processing
sector that promises to drive economic prosperity and ensure food security in the future.
What makes Georgia different is our proactive and proven approach put in place to alleviate potential gaps in the future – including on-site training and aligned education between univer-
sity, technical college systems, K-12 grades and through the Department of Education’s Career, Technical, and Agriculture curriculum.
Looking ahead, Georgia’s food processing industry is poised for a dynamic future marked by innovation, sustainability, and growth. With a commitment to advancing technology, fostering R&D, and enhancing workforce skills, Georgia is well-equipped to meet the evolving demands of the global food market. As we continue to invest in these key areas, Georgia will remain a leader in the food processing industry, paving the way for a brighter, more sustainable future.
To learn more, visit: https://www.georgia.org/
THE CLEAN INDUSTRIAL REVOLUTION
INDUSTRIAL
The BlueGreen Alliance unites labor unions and environmental organizations to solve today’s environmental challenges in ways that create and maintain quality jobs and build a clean, thriving, and equitable economy.
The advancements of the industrial revolution have undeniably shaped every aspect of human history but in the centuries since then, too little progress has been made for the industrial sector to keep up with the needs of society and the needs of our planet. We need a new industrial revolution, a clean industrial revolution. Recently, the U.S. Department of Energy announced the awardees for its Industrial Demonstrations Program (IDP)—an initiative championed by President Biden and Congressional Democrats in their landmark climate and infrastructure laws.
The awardees include projects on the cutting edge of industrial transformation, pursing ambitious technological and process advances that will drive down pollution; drive up the creation of good paying, union jobs; and make U.S. manufacturers more economically
competitive across the nation.
For example, at their steel facility in Middletown, Ohio, Cleveland Cliffs will overhaul its integrated iron and steel mill with cutting-edge clean hydrogen-ready direct reduced iron technology that will cut greenhouse gas emissions at the plant by an estimated 1 million tons per year, providing a road map for the decarbonizing of our nation’s critical primary steelmaking sector. The International Association of Machinists and Aerospace Workers Local Lodge 1943 represents 2,000 workers at this facility and the project is expected to create 170 more permanent jobs and 1,200 temporary building trade union jobs.
In Kentucky, Century Aluminum is proposing to build a new facility that would not only be the cleanest and most efficient aluminum smelter in the world, but it would also be the nation’s first new primary aluminum facility since 1980. This would effectively double the size of the U.S. aluminum industry and help reduce our dependence on foreign production. The project is expected to create more than 1,000 onsite jobs—anticipated to be represented by the United Steelworkers—plus more than 5,000 construction jobs per year during the three-year construction period.
Another Cleveland Cliffs facility in Butler, Pennsylvania is advancing a project that will
Pictured: Oil workers at work.
reduce emissions and energy consumption— making cleaner, higher quality electrical steel that will help decarbonize the automotive industry’s supply chain—by replacing two natural gas-fired reheat furnaces with electrical induction reheat furnaces. The Butler Works
facility—where many workers are represented by United Auto Workers Local 3303—already employees 1300 people and the new project is anticipated to secure 1,470 family-sustaining jobs.
These are truly groundbreaking technolo-
Jason Walsh is the Executive Director of the BlueGreen Alliance, which unites labor unions and environmental organizations to solve today’s environmental challenges in ways that create and maintain quality jobs and build a clean, thriving, and equitable economy. Visit http://www.bluegreenalliance.org.
gies and processes that will be transformative, launching a new era for our nation’s industrial sector.
This is huge. Building the cleanest products possible and a strong domestic supply chain to manufacture the nuts and bolts of a new, clean economy in the U.S. is vital to the future of workers and our planet. The industrial sector
Pictured: Man installing solar panels.
represents a significant slice of U.S. emissions and is the only sector whose emissions are projected to rise in the coming decades. The projects awarded funding by the IDP are projected to reduce carbon dioxide emissions by the equivalent of more than 14 million metric tons of carbon dioxide (CO2) emissions each year—roughly the annual emissions of 3 million gasoline-powered cars. Along with greenhouse gases, industrial facilities pump out other forms
of air and water pollution, which can negatively impact the communities around them, often predominantly communities of color.
Until recently, investment in reducing industrial emissions in the U.S. was relatively limited. However, President Biden’s landmark infrastructure and climate laws established and expanded investment programs—like the IDP—to reduce emissions in energy-intensive industries, such as steel, aluminum, and cement.
The benefits of investing in industrial transformation are undeniable. Driving down emissions and pollution will advance our climate goals and improve public health. And, these investments
will create and sustain good union jobs, helping roll back economic inequality and reverse the slide in wages, benefits, and workers’ rights that has undermined workers and their communities for decades. The IDP award recipients were required to meet a robust set of criteria to ensure local communities and workers benefit
from the proposed projects. Each project was required to submit a community benefits plan and nearly 80 percent of the projects are in a disadvantaged community.
Additionally, transforming energy-intensive domestic industries that produce essential materials with some of the lowest emissions in the world will ensure we’re not importing goods and materials—and pollution—from overseas as we continue to build out the clean, thriving, and equitable future our workers and communities deserve.
The IDP is proof that President Biden is invested in rebuilding U.S. manufacturing to be the backbone of our economy, helping workers get to the middle class with good union jobs and bringing equity and opportunities to communities that have been on the hurting end of the loss of manufacturing jobs. With the investments announced this week, we see that the U.S. can compete and lead in the industrial revolution of the 21st century.
SUSTAINABLE ON THE MOVE
Nova Bus, member of the Volvo Group, is a leading provider of sustainable transportation solutions in North America.
SUSTAINABLE TRANSIT MOVE
Acity’s transportation network is a kind of cardiovascular system through which people flow; increasingly, the heart of that system is a Nova Bus battery electric bus.
Nova Bus is a Canadian manufacturer of environmentally-friendly battery electric buses and intelligent transportation systems. A subsidiary of the Volvo Group based in SaintEustache, Quebec, Nova Bus has a long history in public bus manufacturing dating back to its origins in 1979 as a division of General Motors. Fast forward to today’s pressing need for efficient, reliable, and sustainable transit solutions
in light of climate change, Nova Bus LFS models are available in different powertrains including hybrid, natural gas, and electric. The company’s ability to help public transportation systems attain their sustainable transit goals are represented by a number of significant contract awards in 2024 for the LFSe+ 40-foot longrange battery electric bus.
Key features of the Nova LFS platform include:
ESTAMPRO: WORLD CLASS MANUFACTURER OF METAL COMPONENTS
At Estampro we have an impressive range of equipment which, together with our state-of theart facility, enables us to excel in transforming and assembling metal, whether large or small.
Becoming Your Partner of Excellence
As masters in the manufacture and assembly of metal parts we produce metal components to give your equipment maximum performance. We pride ourselves on our innovative approach to exceed your expectations.
For more information visit https://www.estampro.com
• Safety. Stainless steel structure is highly resistant to fatigue and impact. Exceed standards for APTA White Book crashworthiness requirements. Smart Safety features reduce frequency of accidents. Side impact barriers protect passenger safety in the event of a side or rear collision. Extra-large driver’s window enhances operator visibility.
Pictured: Nova LFS buses are designed and built to operate in the harshest environments in places with extreme temperatures ranging from winter conditions in Yukon to summer conditions in Texas.
• Reliability. Designed and built to operate
Welding
Metal machining
Assembly
Kitting
Reverse engineering
Quality control
Cutting ( laser and plasma )
Sawing
Shearing
Metal bending and tube bending
Metal stamping / punching
in the harshest environments. Many Nova Bus LFS models are operating well-beyond a 12-year service life.
• Maintainability. Easy access to all component parts for repairs or replacement. Nova eCooling
Pictured: Nova Bus strives to design high-quality innovative products including smart safety features.
system reduces engine cleaning requirements. In addition, the LFSe battery electric model offers the most efficient electromobility transit solution:
• Zero emissions.
• Silent operation for a quieter and healthier transit experience.
• Modular battery options capable of storing
up to 564 kilowatt hours of on-board energy for long distance routes.
• Dual charging flexibility. Less than 3.25 hours for a full charge using either overhead or plug-in options.
• Proven HDS200 motor from BAE Systems. The lower weight and increased power density of the BAE Systems technology also contribute
to bus performance and durability.
• Seats up to 41; standing capacity up to 27.
New Contract Awards
This May, Nova Bus was awarded a contract for 33 LFSe buses to join the zero emissions fleet of BC Transit in British Columbia and support its bus replacement strategy to all-
electric and comply with the province’s greenhouse gas (GHG) reduction targets.
Bow Valley Regional Transit Services (BVRTSC) in Banff, Alberta ordered its first three LFSe buses last April. This order was made possible through the Federal Rural Transit Solutions Fund (RTSF), in addition to another contract for three Nova Bus hybrid electric buses, supported by the Investing in Canada Infrastructure Program (ICIP).
“We are delighted to be introducing Nova Bus LFSe+ battery electric buses into our fleet. As we operate Roam Transit services within and around Banff National Park, environmental stewardship is paramount. Embracing advanced technologies to reduce emissions
Sophisticated products, mature processes, human quality
As a leading producer of quality stainless steel tubing and tubular components in various grades and shapes, we are proud to be a supplier to
Nova Bus
We wish them ongoing success and are looking forward to continuing our partnership
The fischer Group is a global producer of stainless steel tubes and components. Headquartered in Germany, North American production facilities include Waterloo, ON Canada, Manchester, TN as well as 2 locations in Mexico. fischer produces all 300 and 400 series stainless steels in wall thicknesses ranging from 0.028” to 0.250” in round, square, rectangular and many other custom geometries. All locations in North America possess extensive value ad capabilities such as CNC bending, axial end forming, standard IO processes and many more. Cutting to tubes to length, tube laser cutting and perforating are also part of the portfolio. For more details you can visit our website at www.fischerca.com or call us at 1-800-563-8823.
underscores our commitment to sustainable transit. Adding more electric buses marks a pivotal moment in our transition journey, furthering our partnership with Nova Bus and advancing towards a greener future,” said Martin Bean, CEO of Roam Transit in a public relations announcement of the contract award.
Brampton, Ontario signed a contract in March with Nova Bus for ten LFSe buses scheduled for delivery next year. The acquisition is an important milestone in Brampton’s electrification plans in its efforts to reduce greenhouse gas emissions by 80 percent by 2050, and is in line with the Government of Canada’s goal of
achieving net zero emissions by 2050.
In January, Nova Bus was awarded a 5-year contract with Regina, Saskatchewan to deliver up to 53 LFSe buses. The first seven are scheduled for delivery in 2025, with options for the remaining 46. “These will be the first battery-electric buses in Regina Transit’s fleet,” said Brad Bells, Director of Transit &
Pictured: 51 FLSe+ electric buses will be provided by Nova Bus to OC Transpo who provide transit services across Ottawa, Ontario into Gatineau, Quebec as part of their electrification plan.
Fleet, in a public relations announcement of the contract. “The addition of these electric buses will support the City of Regina’s goal of becoming a 100% renewable city by 2050 and is in line with our Energy and Sustainability Framework.”
Just as internal combustion engine vehicles displaced the horse and buggy, electric vehicles are beginning to live up to the promise of zero emission transportation. As the market grows for electromobility solutions, Nova Bus is pulling ahead.
TOP CYBERSECURITY AN OVERVIEW
Supply chains must adapt to evolving cyber threats. It’s no longer a matter of if, but when an organization will be attacked.
Those involved in the supply chain must brace themselves for ever-evolving cybersecurity threats. The lessons learned from 2023 provide a foundation, but the dynamic nature of cyber threats requires ongoing vigilance and adaptation. The National Motor Freight Traffic Association, Inc. (NMFTA)™ aims to stay ahead by anticipating
CYBERSECURITY PREDICTIONS:
future challenges through diligent research and collaboration with other cybersecurity organizations.
The supply chain’s critical role in maintaining economic stability, public health and safety, national security, and technological advancement highlights its importance as critical infrastructure. Disruptions in the supply chain can
have far-reaching consequences, making its resilience and efficiency vital to the functioning of modern societies.
Phishing: The Persistent Threat
Phishing remains a prominent tactic used by cybercriminals to infiltrate enterprise systems.
These deceptive communications trick recipients into clicking malicious links or opening harmful attachments. In the supply chain industry, phishing scams can lead to security breaches, including ransomware attacks.
To combat phishing, supply chain companies must prioritize employee training. Workers
Pictured: NMFTA’s Senior Cybersecurity Research Engineer Ben Gardiner presented a live truck hacking demonstration at the conference in October 2023 in Houston, TX. Ben used technology worth $300 and leveraged HAM radio knowledge for the hack. During the demonstration, while the professional truck driver had his foot on the brake, the truck began “chuffing,” which is to say it made a series of odd noises to indicate the truck was dumping its pneumatic air supply – thus compromising the brakes. When NMFTA discovered this vulnerability and disclosed it to the Cybersecurity and Infrastructure Security Agency, it developed eight mitigation technologies to stop the threat;
right: Bosch’s Embedded Security Engineer Ivan Granero spoke during NMFTA’s Cybersecurity Conference in Houston, TX last October. He led a session, “New Fleet Security Features from OEM Vendors.” The event was sold-out with more than 60 fleets represented.
should be adept at identifying suspicious emails, such as those from lookalike URLs. For instance, a phishing email might use “dellIogistics.com” instead of “delllogistics.com,” where the letter ‘I’ replaces the ‘L’. Employees should verify sender addresses and scrutinize links before clicking. When in doubt, they must refrain from opening attachments or clicking on links. In addition, it’s imperative that companies deploy a software solution in addition to training to help combat phishing.
API Security: A Dual-Front Battle
API security is critical for both host-side and mobile integrations. APIs are essential for workflow and telematics systems but pose significant security risks. Key concerns include:
• Zombie APIs: Outdated and deprecated APIs that are still accessible.
• Denial-of-Service (DoS) Attacks: These can overwhelm and disrupt services.
• Authentication Bypass: APIs that allow unauthorized access.
• Data Leakage: Accidental exposure of sensitive information.
• Shadow APIs: Undocumented APIs that can be exploited by attackers.
Addressing these issues requires rigorous security measures, including regular audits, robust authentication protocols, and continuous monitoring of API activities.
Direct Threats to Trucks
The increasing integration of technology in trucks introduces new vulnerabilities. Modern trucks equipped with on-board diagnostics, telematics systems, and sensors can be targeted by hackers. During a recent NMFTA
Cybersecurity Conference, we hosted a live truck hacking demonstration which showed how a hacker could manipulate a truck’s brakes using a simple antenna.
NMFTA recommends that fleets implement cybersecurity measures to protect their critical systems from cyber threats.
Predictions from Other Industry Experts
Several organizations have provided insights into the cybersecurity landscape for 2024: WatchGuard Predictions
• Artificial intelligence (AI) and machine learning (ML) Risks: While still a minority of attacks, threat actors will experiment with AI tools and
sell them on the dark web.
• Automated Spear Phishing: Emerging markets for these tools will enhance attackers’ capabilities.
• Vishing and QR Code Attacks: Increased use of phone scams and malicious QR codes will exploit user trust and habits.
AI-Related Predictions
AI will significantly impact cybersecurity, both positively and negatively. Key forecasts from Gartner, Forrester, and Trend Micro include:
• GenAI Tools: These will enable more sophisticated cyberattacks.
• AI-Based Cyber Defense: Essential for keeping pace with evolving threats.
Pictured: Trina Martin, Cyber Intelligence Analyst for the Federal Bureau of Investigation (FBI) Cyber Task Force addressed attendees at the NMFTA Cybersecurity Conference in 2023. She reviewed the cyberthreat landscape for 2024 and urged conference attendees to practice fundamentals like multi-factor authentication and strong passwords and to be careful about clicking links in seemingly innocent e-mails;
Pictured from the left: Ernesto Ballesteros of the Cybersecurity and Infrastructure Security Agency (CISA); Shelly Thomas of Marsh; Takeda Parker-Bradford of the Transportation Security Administration (TSA); and Clarke Skoby of the U.S. Secret Service (USSS). During the presentation, they explained the various roles they play in protecting companies and individuals from cyberattacks and how each can offer support in the event of an incident.
JOE OHR – CHIEF OPERATING OFFICER
Joe Ohr has more than two decades of experience in technical operations, customer success management, customer support, and product support.
Currently serving as the Chief Operating Officer for the National Motor Freight Traffic Association, Inc. (NMFTA)™, he plays a pivotal role in helping to advance the industry through digitization, classification, and cybersecurity.
Prior to Ohr’s role at NMFTA, he served as in numerous engineering and operations positions at Qualcomm and Eaton, and most recently held the position of Senior Vice President of Operations/Customer Experience at Omnitracs.
Throughout his career, Ohr has provided strategic guidance, vision, and a roadmap for addressing long-term customer challenges. He has played a key role in accelerating revenue growth and has collaborated closely with IT, product, and engineering teams to foster stronger partnerships with strategic customers and peers. Additionally, Ohr has overseen post sales customer support and service teams, as well as operations, managing a workforce of over 400 individuals.
He holds multiple certifications such as CCNA from Cisco and MCSE from Microsoft and earned his Bachelor of Science in Education from the Ohio State University. Due to his contributions to the industry, he earned a spot in the Inner Circle in 2015 and 2018 from Qualcomm and Omnitracs.
• BYOAI (Bring Your Own AI): Employees using personal AI tools can introduce security vulnerabilities.
• Deepfakes and BEC (Business Email Compromise): AI will enhance these attack methods.
• Voice and Video Impersonations: More convincing attacks on personal and executive accounts.
• LLM (Large Language Model) Attacks: Increased focus on exploiting these models.
Google Cloud/Mandiant Predictions
Key expectations from Google Cloud/Mandiant include:
• Zero-Day Vulnerabilities: Persistent use by cybercriminals.
• Election Cyber Activity: Targeting U.S. elections specifically.
• Hacktivism and Wipers: Increasingly disruptive attacks.
• Space-Based Infrastructure: A new target for cyber threats.
• Hybrid and Multi-Cloud Attacks: More sophisticated and impactful.
• Serverless Services: Greater use by threat actors.
• Supply Chain Attacks: Targeting developers via software package managers.
Pictured right: NMFTA’s Executive Director Debbie Sparks talks with The Freight Coach Podcast’s Chris Jolly about the importance of the NMFTA Cybersecurity Conference, the conversations taking place, and the need for those in the greater supply chain to get involved;
Pictured above: As the trucking industry continues to experience cybersecurity threats that evolve as time progresses, the 2024 Trucking Cybersecurity Trends Report helps the supply chain industry stay ahead of this well-known disruption with industry knowledge, tools, and resources to become proactive against the next threat.
Cyberthreats in the supply chain industry have grown more targeted and sophisticated over the years. Supply chain disruptions and attacks are an ever-growing threat as more companies fall victim to high-profile cyberattacks. Hackers dramatically increase their attack impact by attacking, compromising, and exploiting trust relationships between supply chains and customer networks. Organizations must remain vigilant, continuously train employees, and adopt advanced cybersecurity technologies to protect their operations. Protecting supply chains impacts more than the businesses themselves as we are critical infrastructure. Our industry plays a critical role in maintaining economic stability, public health and safety, national security, and technological advancement to name a few.
• Mobile Cybercrime: Growing prevalence.
• Cloud Security Gaps: Leading to cloudnative worm attacks.
• Generative AI: Facilitating advanced social engineering lures.
Election Threats
Global elections will be prime targets for cyberattacks, including:
• Misinformation: Propagated through social media.
• Voting Machine Attacks: Both virtual and physical threats.
• Voter Data: Cyberattacks on voter lists and related processes.
Conclusion
The cybersecurity landscape presents numerous challenges for the supply chain industry. From phishing attempts to API security breaches, to evolving AI-driven attack vectors, these exam-
ples emphasize the need for proactive measures. Companies must stay vigilant, continuously train their employees, and adopt advanced cybersecurity technologies to safeguard their operations and the greater supply chain.
NMFTA remains committed to monitoring these trends and sharing insights with the industry. Our efforts will culminate at our annual NMFTA Cybersecurity Conference on October 27-29, 2024, in Cleveland, OH, where we will discuss the latest developments and strategies in cybersecurity. For more information, visit www.nmftacyber.com.
SUPER PRODUCTS TRUCK INNOVATIONS
Super Products is a leading manufacturer of truck mounted vacuum equipment used by municipal, utility, and industrial contractors.
PRODUCTS® VACUUM INNOVATIONS
Back in 2019, Super Products first broke ground on a $15 million, 170,000 square feet (with room for an additional 70,000 square feet expansion) in the village of Mukwonago, Wis., in one of the strongest supply bases in industrial manufacturing and fabrication. The
objective for this manufacturer of high-quality, easy-to-operate truck-mounted vacuum equipment was to achieve economies of scale by consolidating manufacturing and customer support operations under one roof. In addition, making it the best environment for employees to work was consistent with the company’s longstanding
commitment to safety.
An Alamo Group company, Super Products has implemented renewable energy processes and automatic manufacturing workflows, as well as bringing previously outsourced operations in-house with a state-of-the-art ICAFe paint booth system to improve production of their five different truck lines.
The company engineers and manufactures the industry’s most efficient and progressive vacuum excavators, combination sewer cleaners, industrial vacuum loaders, truck-mounted jetters, and liquid vacuum trucks on the market today. The five truck mounted vacuum product lines address specific applications that encompass hydro and air excavation, industrial
vacuum cleaning, hazardous and non-hazardous waste cleanup and catch basin and sewer cleaning:
Built to withstand the harshest environments, each model can be customized with multiple features for a variety of applications, projects, and jobsite conditions. Equally important is attention to ergonomics, not just to make
Pictured: Super Products facility in Mukwonago, Wisconsin - A range of Super Products’ easy to operate truck-mounted vacuum equipment.
drivers more comfortable, but more aware of their surroundings with features such as backup cameras and safety alarms.
Each of its five product models has a dedicated production line for a progressive build beginning with the truck’s underlying chassis. Some basic inventory is maintained that can be quickly customized, but in general production lead times are ordinarily four to six weeks.
Engineering Innovation
As an example of Super Products engineering innovation, the Mud Dog offers an ejection system that pushes out debris more quickly and more efficiently. Decreased likelihood of system clogs results in fewer work stoppages.
As another example, the Camel Combination Sewer Cleaner is the most versatile combo unit
in the industry, enabling operators to tackle various applications with jetting, vacuuming and excavating. An optional pusher axle allows for increased payload capacity. All three Camel 1200 models come standard with a high dump subframe to eliminate the need to back up a ramp for debris removal.
The company has two different marketing channels, municipal government and private
contractors. Government sales in the U.S. are handled by a nationwide network of dealers; private customers are handled by a dedicated sales staff. Super Products also markets internationally to Canada, Mexico, Europe, South America and Russia.
In addition to manufacturing new vacuum trucks, Super Products also operates nine rental facilities nationwide. It also has an inventory of used vacuum trucks, and a well-stocked parts department. Each used unit is in great condition with low miles and hours maintained with
Pictured: Mug Dog® Vacuum Excavators are designed to meet the challenges of urban projects to large-scale excavation.
all of the recommended service checks and updates to ensure a high-quality piece of vac truck equipment.
Superstores One-Stop Shopping
Superstores located in seven states offer onestop shopping for new and used equipment, weekly and monthly rentals, parts and accessories, maintenance and support if needed. While most fleet owners perform their own maintenance, Super Products technicians are available by phone and can also be dispatched on-site
if needed. There’s also an online Learning and Resource Center that provides a range of documents and videos providing product information, maintenance tips and product demonstrations.
Over the past 50 years, Super Products has grown from a small manufacturing company to a nationally recognized supplier of vacuum trucks. Originally founded at the end of 1972, the first Supersucker® Industrial Vacuum
Pictured: Super Products is renowned for being at the forefront of vacuum truck innovation with their advanced technology, custom solutions and commitment to innovation.
Loader was manufactured in 1973, followed by the Camel® Combination Sewer Cleaner in 1976. The company was acquired by the Alamo Group in 2014. Super Products currently employs over 180 nationwide.
The company continues to be well positioned to offer the highest quality in safety, efficiency, versatility and reliability to their network of contractors, dealers, and rental facilities. Whatever a customer needs for truck mounted vacuum equipment, Super Products can supply it in the way that best fits each customer’s particular needs and situation.
