North America Outlook - Issue 02 by Outlook Publishing

BAR LOUIE | ELM COMPANIES

w w w. n o r t h a m e r i c a o u t l o o k m a g . c o m

Issue 02

KEYTRONIC Offering a unique blend of high caliber design, engineering and manufacturing services

A NEW FRONTIER

We talk to PACCAR about the company’s progressive mission to place innovation, sustainability, and people-centric values at the forefront of business

Andrew Kimmel of AuraNexus, discusses how the organization is personalizing learning at scale across the United States

BAR LOUIE | ELM COMPANIES

w w w. n o r t h a m e r i c a o u t l o o k m a g . c o m

Issue 02

w w w. a f r i c a o u t l o o k m a g . c o m

Issue 88

KEYTRONIC

DIGISTICS

Offering a unique blend of high caliber design, engineering and manufacturing services

Enabling South Africa’s world-class supply chains

GREEN RESOURCES Sustainable and peoplecentric forestry business

A NEW FRONTIER

We talk to PACCAR about the company’s progressive mission to place innovation, sustainability, and people-centric values at the forefront of business

DESIGNWILKES | BUKALAPAK

RENDEAVOUR | MOTUS AFRICA

w w w. a p a c o u t l o o k m a g . c o m

Issue 48

TEKNIKUM GROUP | LOGSTOR

w w w. e m e o u t l o o k m a g . c o m

Issue 39

Diversify and Thrive

Gold Fields Australia Gold Fields Australia showcases the potential of employee, environment, and community-centric business, we spoke to Stuart Mathews, Executive Vice President: Australasia, to learn more

dpa lighting consultants

Despite the challenges presented by COVID-19, Romanian retailer Profi continues to diversify and grow its business to the benefit of consumers

Professional project collaboration across the design industry

Manufacturing South Africa Johan Steyn, Managing Director at Aerosud, discusses his organisation’s position as the manufacturer of choice for some of the largest aerospace firms worldwide

Andrew Kimmel of AuraNexus, discusses how the organization is personalizing learning at scale across the United States

Mining Indaba Virtual 2021 In a celebration of the African mining sector, Mining Indaba returns for 2021 in a virtual format

Le Hoang Diep Thao tells the story of the rise of TNI King Coffee, a Vietnamese coffee brand and café franchise

Wojciech Bajda, Head of Ericsson GCC, discusses the company’s provision of 5G across the globe in a growing digital age

is personalizing learning at scale across the United States Andrew Kimmel of AuraNexus, discusses how the organization

mining sector, Mining Indaba returns for 2021 in a virtual format Mining Indaba Virtual 2021 In a celebration of the African

Coffee, a Vietnamese coffee brand and café franchise Le Hoang Diep Thao tells the story of the rise of TNI King

provision of 5G across the globe in a growing digital age Wojciech Bajda, Head of Ericsson GCC, discusses the company’s

FRONTIER A NEW

people-centric values at the forefront of business mission to place innovation, sustainability, and We talk to PACCAR about the company’s progressive

of the largest aerospace firms worldwide organisation’s position as the manufacturer of choice for some Johan Steyn, Managing Director at Aerosud, discusses his

South Africa Manufacturing

Tell us your story, Australia Fields and we’ll tellGold the world. centric forestry business Sustainable and people-

the design industry collaboration across Professional project

Australasia, to learn more Stuart Mathews, Executive Vice President: community-centric business, we spoke to potential of employee, environment, and Gold Fields Australia showcases the

consultants dpa lighting

RESOURCES GREEN

world-class supply chains Enabling South Africa’s

manufacturing services caliber design, engineering and Offering a unique blend of high

DIGISTICS

KEYTRONIC

w w w. n o r t h a m e r i c a o u t l o o k m a g . c o m

Issue 02

w w w. a f r i c a o u t l o o k m a g . c o m

Issue 88

w w w. a p a c o u t l o o k m a g . c o m

Issue 48

grow its business to the benefit of consumers Romanian retailer Profi continues to diversify and Despite the challenges presented by COVID-19,

and Thrive Diversify

w w w. e m e o u t l o o k m a g . c o m

Issue 39

North America Outlook, Africa Outlook, APAC Outlook and EME Outlook and are digital and print publications aimed at boardroom and hands-on decision-makers, reaching an audience of more than 800,000 people around the world; spanning the full range of industrial sectors. BAR LOUIE | ELM COMPANIES

RENDEAVOUR | MOTUS AFRICA

DESIGNWILKES | BUKALAPAK

TEKNIKUM GROUP | LOGSTOR

With original and exclusive content compiled by our experienced editorial team, we look to promote the latest in engaging news, industry trends and success stories from across the globe. Your company can join the leading industry heavyweights enjoying the free exposure we provide across both digital and print platforms with a free marketing brochure, extensive social media saturation, enhanced B2B networking opportunities, and a readymade forum to attract new investment and to help you grow your business. Visit www.outlookpublishing.com/work-with-us for details on how your company can feature for free in one of our upcoming editions.

www.outlookpublishing.com/work-with-us

WELCOME

Moving with the Times

EDITORIAL Editor: Sean Galea-Pace sean.galea-pace@outlookpublishing.com Editor: Marcus Kääpä marcus.kaapa@outlookpublishing.com Junior Editor: Phoebe Harper phoebe.harper@outlookpublishing.com PRODUCTION

Evolution.

Art Director: Stephen Giles steve.giles@outlookpublishing.com

This edition is full of successful transformation

Senior Designer: Devon Collins devon.collins@outlookpublishing.com

stories and they come no bigger than our cover

Junior Designer: Matt Loudwell matt.loudwell@outlookpublishing.com

feature – PACCAR.

BUSINESS Managing Director: Ben Weaver ben.weaver@outlookpublishing.com

The organization is a global leader in the design, manufacture, and

Sales Director: Nick Norris nick.norris@outlookpublishing.com

customer support of premium medium and heavy-duty trucks. In our

Operations Director: James Mitchell james.mitchell@outlookpublishing.com Commercial Director: Joshua Mann joshua.mann@outlookpublishing.com PROJECT DIRECTOR Tom Cullum tom.cullum@outlookpublishing.com PROJECT MANAGERS David Knott david.knott@outlookpublishing.com Sam Love sam.love@outlookpublishing.com HEADS OF PROJECTS Callam Waller callam.waller@outlookpublishing.com Thomas Arnold thomas.arnold@outlookpublishing.com Vivek Valmiki vivek.valmiki@outlookpublishing.com TRAINING & DEVELOPMENT DIRECTOR Eddie Clinton eddie.clinton@outlookpublishing.com SALES MANAGERS Donovan Smith donovan.smith@outlookpublishing.com Josh Hyland josh.hyland@outlookpublishing.com Krisha Canlas krisha.canlas@outlookpublishing.com Matt Cole-Wilkin matt.cole-wilkin@outlookpublishing.com Ryan Gray ryan.gray@outlookpublishing.com

ADMINISTRATION Finance Director: Suzanne Welsh suzanne.welsh@outlookpublishing.com Office Manager: Daniel George daniel.george@outlookpublishing.com CONTACT North America Outlook East Wing, Ground Floor, 69-75 Thorpe Road, Norwich, Norfolk, NR1 1UA, United Kingdom. Sales: +44 (0) 1603 959 652 Editorial: +44 (0) 1603 959 657 SUBSCRIPTIONS Tel: +44 (0) 1603 959 657 Email: sean.galea-pace@outlookpublishing.com www.northamericaoutlookmag.com

exclusive interview with Debra Poppas, Vice President of Global Quality, she discusses the company’s progressive mission to place innovation, sustainability, and people-centric values at the forefront of business. “This is a fabulous time to be working in the commercial vehicle space, particularly in the United States,” says Poppas. “PACCAR works closely with our supplier partners to ensure that our products are the highest quality and most efficient to manufacture. To achieve elite 10 ppm status, PACCAR’s outstanding suppliers need best-in-class product design and process capabilities, and just as important, a quality-focused culture.” Elsewhere in the magazine, change is also the topic of conversation as Josh Hinrichs, President of ELM Companies, reflects on his company’s journey over the past two decades. “The business has certainly grown tremendously. In fact, it has more than tripled in size from when I started in 2001,” he explains. “The utilities that we serve and work with have changed over the years and have become more demanding in the services and solutions they require.” Don’t miss our chat with Andrew Kimmel, Co-Founder and Chief Creative Officer at AuraNexus, as he talks about how the organization is personalizing learning at scale across the United States amidst the continued disruption of COVID-19. “We are the only company that offers technology like this in a cost-effective and scalable way,” he explains. “But what really sets us apart is our production style that replicates a face-to-face conversation.” And before you go, check out our comprehensive digital reports with Keytronic, Arrow Truck Sales, Expediter Services, Subterra Renewables, TARA Energy Services and many more! Enjoy the issue!

Sean Galea-Pace Editor, Outlook Publishing North America Outlook issue 02 | 3

CONTENTS

16 6

REGULARS

6 NEWS

TOPICAL FOCUS

Around North America in seven stories

16 TECHNOLOGY

8 EXPERT EYE

The US players taking the wheel in the Autonomous Vehicle Revolution

BUSINESS INSIGHT

170 THE FINAL WORD

10 TECHNOLOGY

If you could offer one piece of advice for a young entrepreneur entering your industry, what would it be?

The EdTech Boom

A fully interactive and personalized platform set to revolutionize learning

14 ECONOMY

Exploring business in New York City Inside New York City the hub of business within the United States

4 | North America Outlook issue 02

The Self-Drive Revolution

Inside the challenges of the manufacturing industry during COVID-19

NORTH AMERICA OUTLOOK MAGAZINE

F E AT U R E S

22 SHOWCASING LEADING COMPANIES Tell us your story and we’ll tell the world

SUPPLY CHAIN

24 PACCAR

A New Frontier Innovation, sustainability, and peoplecentric development in the transport industry

52 Arrow Truck Sales Driving Quality

A leading US player in pre-owned heavy and medium duty trucks sales

58 Expediter Services

92 92 ELM Companies

A Utility Transformation

Transformative Trucking

A leader in providing integrated compliance services and energy solutions

Operating with an alternate approach in the North American trucking market

102 Subterra Renewables

64 Knichel Logistics Millions of Miles

A story of success from humble beginnings

MANUFACTURING

70 Keytronic

Mitigating Disruption in Manufacturing Offering a unique blend of high caliber design, engineering and manufacturing services

FOOD & DRINK

80 Bar Louie

“Eat. Drink. Be Happy.” Adaptation, innovation, and community focus in light of COVID-19

110

ENERGY & UTILITIES

The Sustainability Solution Environmentally friendly Canadian construction solutions

110 Alabama Power Energizing Alabama

Community, digitalization, and progression in the energy sector

116 Magna Imperial Systems Solving the Water Crisis

Sustainable, innovative, and people-centric water

124 Genie Energy Powering America

Riding the green wave with Genie Energy

OIL & GAS

130 TARA Energy Services

A Fleet Fit for the Future

Innovation and investment in the face of the pandemic

FINANCE

138 Sentry

138

Insurance Moves to the Cloud Innovation in the insurance sector

SPECIAL REPORT

86 TNI King Coffee

Building a Global Coffee Empire A story of growth, opportunity and empowerment

146 Hellmann Worldwide Logistics

Hellmann Worldwide Logistics COVID-19 Vaccine Handbook The worldwide roll out of the lifesaving COVID-19 vaccine

North America Outlook issue 02 | 5

NEWS Around North America in seven stories… FOOD & DRINK

McDonald’s to achieve gender parity by 2030 U N D E R TH E Golden Arches, all is not equal, as McDonald’s addresses breaching the gender gap in the workplace. The fast-food giant will now seek to have women represent at least 45 percent of its top ranks. The company’s ultimate goal is to achieve total gender parity across all leadership positions by 2030. By 2025, McDonald’s will aim to have at least 35 percent of its leadership roles held by minority employees. These initiatives are part of the company’s new commitments to diversity and inclusion as announced in July last year, after facing backlash for their lack of inclusivity.

A E R O S PAC E

TOUCHDOWN FOR NASA ON THE RED PLANET O N T HURSDAY 18th February, NASA successfully landed the rover Perseverance on the surface of Mars. The journey from Earth took seven months and marked a historic moment for the US space agency, who intends to spend the next two years exploring the planet’s surface searching for signs of ancient life.

As NASA’s most technologically advanced robot, the rover also carries a small helicopter named Ingenuity, which will be used to attempt first flight on another planet. The construction and launch of the mission cost NASA approximately $2.4 billion, combined with an estimated $300 million expected for the operating costs post-landing.

AUTOMOTIVE

Texans turn to Ford F-150 Hybrid Trucks to power homes during Storm Uri F OR D ’S 2021 F-150 hybrid pickup truck found a new use in February, as several Texans relied on their vehicle’s PowerBoost onboard generator to run their homes amidst power outages. 6 | North America Outlook issue 02

According to CNBC, one truck owner found that his vehicle could be used as a mobile generator, powering a range of appliances and space heaters – ultimately saving the day. Ford have said that the 2021 hybrid’s onboard generator can produce 7.2 kilowatts of power. Meanwhile, energy and utility companies across the state deal with the aftermath of the Texas grid failure which left over three million people without power.

R E TA I L

S U S TA I N A B I L I T Y

US REJOINS THE PARIS CLIMATE AGREEMENT

Walmart boosts employees’ wages to average $15 an hour 425 ,0 0 0 OF Walmart’s employees are set to enjoy a wage increase, bringing the retail chain’s average pay to just over $15 an hour. In spite of this, Walmart will keep its minimum wage at $11/hour, flouting President Biden’s suggestion that the minimum wage should be raised to $15 – a measure that has been implemented by the retail giant’s rivals, Amazon and Target. Walmart is the nation’s largest private employer, with a workforce numbering approximately 1.5 million. According to CEO Doug McMillon, H E A LT H C A R E

Tyson Foods struggles to vaccinate employees ME AT-PROCESSIN G COM PA N Y Tyson Foods endeavours to vaccinate its workforce against COVID-19, but much like the rest of the world, it is having difficulty in procuring enough doses. The vaccination movement comes as Congress continues investigating outbreaks of the virus across several meatpacking firms, including Tyson. Onsite vaccinations

the company will continue to raise its minimum wage to support rewarding career paths for its workers, since over 75 percent of the store’s management originally joined as hourly employees.

have commenced at three of Tyson’s plants across Missouri, Illinois and Virginia, but only 1,000 doses were secured - this is the company’s biggest vaccine allocation yet. Tyson actively discourages vaccine hesitancy mostly amongst its Latino and African American employees and incentivizes workers able to get a shot outside of work. In the meantime, local healthcare departments attempt to give an accurate timeline for when large employers nationwide will have access to more vaccines.

TH E U S has officially re-entered the Paris climate agreement after President Joe Biden issued the mandate to rejoin the treaty on his first day in office. As part of the POTUS’ initiative to dramatically reduce emissions on the journey towards net-zero US emissions by 2050, the move has rekindled the nation’s commitment to fighting climate change. The Paris pact was initiated in 2015 and designed to prevent catastrophic climate change. The US has been the only country to leave the agreement under President Trump’s leadership, in the belief that acting against climate change would be too expensive. ENERGY & UTILITIES

JPMORGAN TIPS OIL PRICES TO RISE BY $5-$10 PER BARREL A M E MB E R of asset management at investment banking company JPMorgan disclosed in an interview with CNBC that oil prices are likely to rise. The company’s representative, a global market strategist, estimated that there would be room for oil prices to increase by as much as $5-$10 per barrel. The key elements driving the prices upwards include a revived demand for oil as the global economy recovers from the pandemic. This comes as oil prices have begun to moderate and the global outlook ameliorates as the world’s leading economies continue to implement vaccination campaigns against the coronavirus.

North America Outlook issue 02 | 7

EXPERT EYE

TAKING STOCK: Manufacturing in a Pandemic Kimberly Kellermann, Vice President of Greif’s Global Industrial Packaging division, reflects on the challenges and rewards of leading a global manufacturing business through the COVID-19 pandemic Written by: Kimberly Kellermann, Vice President of Greif’s Global Industrial Packaging division

lmost a year on from the world going into lockdown in response to COVID-19, as business leaders it feels important that we make time to take stock and learn from the surprising turn our working lives have taken. As Vice President of Greif’s Global Industrial Packaging division, a $2.8 billion industrial packaging products and services business with facilities and offices around the world - before 2020 I travelled significantly. This stopped overnight and I found myself faced with the daunting task of leading a global manufacturing business from my home in Ohio. Like all organizations, Greif was forced to transform at pace, adapting ways of working, core processes and 8 | North America Outlook issue 02

protocols. Each day seemed to bring new headlines, problems, guidance and legislation.

Adapting operations As a manufacturer of industrial packaging, Greif is classed as an essential service provider and our facilities have remained open throughout the pandemic. With leadership working remotely, our immediate and overwhelming priority was keeping our colleagues and their families safe. How could we keep the risk of COVID-19 to an absolute minimum in our facilities? A global COVID taskforce was quickly set up to establish protocols and procedures. We recognized the need to engage families and

sent care packages and messaging to our colleagues, reinforcing the importance of their work. They responded with pride and stepped up to the new ways of working with energy and positivity. Like many manufacturing environments, we immediately introduced physical distancing, PPE, sanitizers, limits on visitors, and deep cleaning as needed. We worked hard to make sure instructions were clear and placed a relentless focus on protocols. Our approach appears to have been effective; whereas some companies have experienced plant shutdowns for long durations, we have managed this well. Our individual plant managers have done a fantastic job leading throughout this pandemic.

For non-production colleagues working from home, the challenges were very different. Although we had some video calls before, overnight we all had to become newscasters! As an organization, we worked on the basis we would be in it for the long haul, supplying tools and technology to colleagues around the world and providing guidelines for how to conduct video calls. Training was provided for many different platforms with an emphasis on how to make every interaction professional and engaging. With face-to-face contact impossible, we wanted everyone interacting positively on video.

Technological challenges Differences in technology globally have proved a challenge, with Greif locations spanning the United States, Asia, Europe and Africa. We have a regional IT support model and this has proved effective in resolving issues such as variable bandwidth and shortage of hardware. Virtual training has also proved challenging, although we’re increasingly happy with the approach we’re taking and are getting

great feedback from colleagues. We have developed specific materials, delivered concise sessions to small groups across different facilities, and supplemented group training with information at a local level. Interactive virtual plant tours enable us to maintain a presence in production facilities. Getting the technology right took some experimentation – we soon discovered that video stabilizers were needed to counteract motion and headsets had to be noise cancelling to cut out ambient sound. With technical glitches sorted, we are successfully keeping in touch with colleagues on the ground, carrying out factory acceptance tests, and troubleshooting in our virtual platform. In fact, we have a plan to visit over 100 of our sites virtually in 2021. Our sales and commercial teams typically travel up to 80 percent of the time and the need to work remotely has hit them particularly hard. With customer interactions gone, how do you sell a value proposition virtually? This has been a learning process for some, particularly those who don’t like being on camera. Our customers are equally stretched thanks to COVID and it can be hard to get time with them. We have introduced new KPIs and ways of measuring sales performance to enable us to continue meeting the needs of our customers.

Lessons learned In summary, what have we learned from the past year? Are there positives? What can we build on moving forwards? Although face-to-face contact is sorely missed by colleagues working remotely, virtual interaction has become increasingly efficient and effective. Personally, I am finding it extremely rewarding to be able to connect with people across and beyond the business so quickly. We recently had over 130 customers on a webinar for a full hour – an unprecedented level of connectivity.

The changes in working patterns have enabled us to stand back, look at what wasn’t adding value in the past, and eliminate it. The reduction in travel alone has resulted in significant cost savings, as well as being great from an environmental perspective. But perhaps the greatest positive to take from the way Greif – and manufacturing as a whole – has responded to the global pandemic is its willingness to embrace change. As a sector known for its traditional stance, the flexibility being shown by workforces and facilities around the world has been remarkable. I firmly believe that this accelerated change will continue far beyond COVID and will enable us to respond to whatever challenges lie ahead.

ABOUT THE EXPERT Kimberly Kellermann, Vice President of Global Operations, Greif – Global Industrial Packaging After spending two years as Vice President of Operations and EH&S, Kimberly Kellermann now extends her vast expertise to Greif’s Global Industrial Packaging division as Vice President of Global Operations. As a member of the Global Industrial Packaging Leadership Team, Kimberly leads the strategic direction for over 150 Greif sites and the multi-year business strategy, deployment, execution and governance of Greif’s $2.8 billion industrial packaging business. She also spearheads the division’s Safety Leadership Program. Kimberly previously spent 17 years with Boehringer Ingleheim. She holds a BS degree in Industrial and Systems Engineering and an Executive MBA, both from The Ohio State University.

AURANEXUS

The EdTech

Andrew Kimmel, Co-Founder and Chief Creative Officer at AuraNexus, discusses how the organization is personalizing learning at scale across the United States Written by: Sean Galea-Pace

10 | North America Outlook issue 02

BOOM C

OVID-19 prompted industries throughout the world to change operations overnight. In terms of education, the transition to remote learning has been one of the more challenging transformations to undergo. However, seeking to streamline the process is AuraNexus. It’s a video and AI technology platform that provides users with the ability to engage in conversation with pre-recorded video content. By pairing conversational interviews with vocal recognition, AuraNexus

can provide a personalized, userdriven experience aimed at increasing engagement, instilling a greater sense of empathy, and improving learning via an accessible platform powered by the user’s voice. Andrew Kimmel is the Co-Founder and Chief Creative Officer at AuraNexus. In our exclusive Q&A, Kimmel discusses the opportunity for schools across the United States to leverage this innovation as a result of the global disruption caused by COVID-19.

TECHNOLOGY

North America Outlook: Can you give us an introduction into your career to date and explain how you came to work for AuraNexus? Andrew Kimmel (AK): I started my career in the entertainment industry after graduating Syracuse University in 2008. Initially I had hoped to produce documentary films, but before the advent of streaming platforms like Netflix, the demand for production work was in reality television. I worked my way up to become a producer for some of the largest network reality shows on television, including “The Bachelor’’ franchise and “Dancing With the Stars.” In 2015, I decided to leave the industry to take a chance on a

documentary passion project of mine called “Stories of Syria.” The purpose of the project was to create an interactive viewing experience to humanize the refugee crisis. It led me to experiment with different filming styles and technology aimed at increasing viewer engagement. My original vision of the project was to film conversational interviews that could later be “asked” by the viewer by clicking on different topics that appeared on screen. The process was time-consuming and expensive, so I pivoted to conducting live streams from within refugee camps where viewers could participate in a live Q&A. My live streams eventually caught the attention of the folks at BuzzFeed News, who ended up hiring me as a producer. Within a year, I became the Head of Live Video for BuzzFeed News where I ran a team responsible for both field and studio live broadcasts. During this time, I watched as vocal recognition technology became more prevalent and accessible. After two years, I left BuzzFeed News to revisit my passion project, but with the intention of doing something that hadn’t been done before… pairing vocal recognition technology with pre-recorded, live-action video to replicate a conversational experience. By chance, I was introduced to an investor and innovation partner called Nex Cubed who was looking for AI concepts to foster. I pitched them on the idea and within a few weeks, we co-founded AuraNexus. NA Outlook: Briefly introduce us to AuraNexus. In your own words, could you outline its offering and what sets it apart? AK: AuraNexus is a video and AI technology platform that provides users with the ability to engage in conversation with pre-recorded video content. The platform is currently

being utilized in education to provide students with personalized learning at scale. Teachers use our platform to offer their students virtual office hours experiences with a familiar face to build trust, provide a safe space to ask questions, and an opportunity to learn at their own pace. Teachers gain valuable insights from our data which can be used to determine what teaching methods are most effective with their students, while also freeing up time. We are the only company that offers technology like this in a costeffective and scalable way. But what really sets us apart is our production style that replicates a face-to-face conversation.

“RESEARCH SHOWS ACTIVE LEARNERS ARE MORE ENGAGED LEARNERS, AND HIGHER ENGAGEMENT LEADS TO ENHANCED COMPREHENSION AND RETENTION” NA Outlook: In what ways are you revolutionizing learning? AK: AuraNexus is providing a muchneeded update to an antiquated educational system. Our technology makes students active participants in their learning. While most education is delivered passively for students as a whole, AuraNexus was developed as a tool to meet the individual needs of students.

AURANEXUS Research shows active learners are more engaged learners, and higher engagement leads to enhanced comprehension and retention. Our incorporation of teachers familiar to the students also helps to build trust and increases a student’s sense of belongingness. This influences a student’s level of involvement with coursework and instills a greater sense of empathy that carries over into their continued education and professional careers. NA Outlook: Can you explain your COVID-19 mission? How is AuraNexus helping people during the pandemic? AK: At the start of the pandemic, we recognized two major issues: 1) a lack of access for people to speak with experts and 2) the spread of misinformation. Our mission was to leverage our technology to slow and stop the spread of misinformation, while also providing everyone with the ability to speak to a variety of COVID experts who could answer specific questions, 24/7. The result was a free video resource page where users could ask questions and interact with doctors, scientists and other experts with first-hand knowledge.

As the pandemic continued and schools were forced to shift to an entirely remote curriculum, we pivoted our focus towards helping students and teachers. The lack of face-to-face interaction and tiresome or impersonal coursework was negatively impacting morale and lesson comprehension. Students today stand to lose $10 trillion in labor earnings over their work life due to our education system failing them in a time when it is needed the most. As a result of outdated technology and a one-size-fits-all teaching style, distance learning has failed our schools and students. It lacks personalization, is inefficient, and doesn’t provide students, especially those in lower-income communities, the connection to their teachers, classmates, and lessons that they need to achieve better outcomes.

“ONLY SEVEN PERCENT OF SCHOOLS IN THE UNITED STATES SAY THEY HAVE A THOROUGH AND EXTENSIVE PLAN IN PLACE SHOULD REMOTE SCHOOLING CONTINUE”

COVID-19 has magnified the need for dynamic solutions to online learning. Our team is working towards this challenge and has provided a number of schools with a more effective tool that drives up engagement, offers a level of connection similar to what a real human interaction is able to provide, and aims to help improve student outcomes while reducing the stress on educators. NA Outlook: I understand you are leveraging technology that is the first of its kind to pair video with vocal recognition. What has this innovation meant? Just how important is this? AK: The innovation we’re developing at AuraNexus is truly unique and our technology has reached a level we are proud of. That being said, we will always be working on improving what we’ve built. We speak with people every day who share their thoughts on how our technology can improve and make their lives easier, which pushes us to continue innovating with the goal of making it more accessible, while simultaneously increasing the value our technology can bring to everyone. What we have done at AuraNexus is found a way to bring the human

TECHNOLOGY “WE’VE STARTED TO USE THE PLATFORM FOR DIVERSITY, EQUALITY, AND INCLUSION TRAINING AND ARE NOW EXPERIMENTING WITH AUTOMATION TO STREAMLINE THE FILMING PROCESS” element back into a world consumed by technology where face-toscreen interaction is significantly more prevalent than face-to-face interaction. Rather than trying to push technology out of the way, we are leveraging it to make sure our interactions include that crucial face-to-face element again. We have a lot of ideas we are in the process of developing and are excited at the possibilities for where we see our innovation leading to. NA Outlook: With COVID-19, the importance of EdTech has never been so prevalent. How essential is it to equip students and staff with the tools they need in order to thrive from this new type of learning? AK: COVID-19 has brought a wave of innovation to education. Yet only seven percent of schools in the United States say they have a thorough and extensive plan in place should remote schooling continue. It is imperative that we equip students and staff with the tools they need to continue their education remotely. That is why we built our platform to be easily accessible, scalable, and costeffective, so that no school or student is left behind. While our technology has been a valuable tool during the pandemic, we developed it for students to reach their greatest academic potential for when in-person schooling resumes as well. Should we find ourselves in a similar situation a few years down the

A conversational video provides prospective students the ability to speak with current or former students and faculty to answer the questions that might influence their next choice of school or college road, we want to make sure schools are familiar with our platform, so students and teachers are better prepared to handle distance learning without sacrificing the quality of their education. NA Outlook: What does the future hold? What are the plans for the next few years and are there aims to diversify? AK: The future of AuraNexus presents infinite possibilities. It’s always fun to show our product to new users whose eyes light up and who start listing out all the different use-cases they recognize for our platform. While we are currently focused on growth within

the education sector, our vision has always involved expansion into other areas such as corporate training, HR, and entertainment, to name a few. We’ve started to use the platform for diversity, equality, and inclusion training and are now experimenting with automation to streamline the filming process, as well as setting the foundation for more accurate AI to enhance our machine learning. We’re looking forward to continuing to work with our innovation partner, Nex Cubed, to help accelerate the process and our growth.

North America Outlook issue 02 | 13

BUSINESS IN NEW YORK CITY

EXPLORING BUSINESS IN NEW YORK CITY

New York City stands as a hub of industry within the United States and throughout the world Written by: Marcus Kääpä

14 | North America Outlook issue 02

ECONOMY

he United States makes up over 15 percent of the entire global economy. It is home to a multitude of cities that house industry leaders and international companies providing a substantial percentage of its national revenue. New York City is one such place. The state of New York itself has in total the third-largest economy in the US, with only Texas and California ahead of it. Its economy is so huge in fact, that if the state was its own country, New York’s economy could potentially rank around 15th or 16th largest in the world. The state is home to a population of 20.3 million people, and its largest industries include: finance, healthcare, technology, retail, manufacturing, publishing, education services, food and beverage. Companies such as PepsiCo, JPMorgan Chase, and Pfizer are just a few giants to name. The economy of New York is the largest regional economy in the US. Wall Street, a household name around the world in association to business, trade and wealth, has been the anchor through which New York has gained its deserved reputation as the world’s premier financial center. New York City is home to the New York Stock Exchange (NYSE) and NASDAQ, that are not only both the largest stock exchanges by market capitalization, but also trading activity on the whole. In 2012 alone, the area produced a gross metropolitan product (GMP) of over $1.33 trillion, ranked first nationally by a large margin. This substantial number equates roughly to that of South Korea’s GDP in the same year, with New York City’s population being below half that of the country. At this level, New York City’s economy accounts for the majority of economic activity in the states of New York and New Jersey combined. Manhattan, the international leader in banking and finance, is home to the NYSE founded in 1817 on Wall Street.

The finance sector in New York is wellknown for its lucrative opportunities, with financial professionals earning on average four times more than the average worker elsewhere in the city. Financial services are highly concentrated in New York City. According to the New York Bureau of Labor Market Information, more than 90 percent of jobs in securities, commodities and other investments are located in downtown New York City. In total, there are over 330,000 financial services workers in the state. As New York is home to approximately 20 million individuals, over a third of which are urban dwellers, there is a great demand for healthcare services across the region. According to the New York Department of Labor, there are more employees in the “Healthcare and Social Assistance” industry than any other. The city is home to the largest healthcare system in the US, including world-class private medical centers, and an advanced healthcare research and development sector. Healthcare is vital to the city’s economy and the livelihoods of all those who live in New York City. Despite this, in this most critical sector, the average income of workers drops below the state’s average pay. The professional and technical services are another area pushed to the fore as one of New York’s primary sectors. In 2018, according to the New York Bureau of Labor, there were an estimated 403,200 individuals working in the professional and technical services. This includes lawyers, accountants, marketeers, and mechanics among many others who share the field. These key professionals keep businesses running in supplementary roles in every sector across the board. In this way, they are subject to the fluctuating state of the industries in which they practice, at the same time as providing necessary services in multiple areas.

New York’s retail space is huge. The sector includes a multitude of subsidiaries such as food and beverage, clothing, electronics, and vehicle retailers, with famous Fifth Avenue springing to mind when thinking of the New York high street. With the best part of one million retail workers, New York’s retail businesses are spread throughout New York City, particularly in Manhattan and Jefferson County. New York’s manufacturing sphere sees the state export a wide variety of goods both domestically and abroad. The city’s sector is a leader in railroad rolling stock with a historic link to many of the earliest US railroads having been financed by New York. Manufacturing also cover’s New York City’s fashion industry, of which it is the capital in the US, as well as technical manufacturing, including computer and mobile products, video games, and general software engineering tools. Despite the term “industry” often not relating to the education sector, it remains a large part of New York’s growth and attraction towards gaining industry talent for the state. Institutions such as Columbia University, New York University, Barnard College, and the Webb Institute each stand out as just some of the establishments that help teach, train, and develop individuals for careers in varying industries in the US and beyond. Teachers, professors, tutors, educational agencies, and a host of other educational employees form the base of New York’s impressive industries through quality courses that lead aspirants into future roles in such sectors. New York City itself remains a central hub of progression and economic strength for the entirety of the US. A home to many industries, it is an internationally influential city and hosts a broad spectrum of necessary sectors making it a key contributor to the nation’s GDP. North America Outlook issue 02 | 15

THE SELF-DRIVE REVOLUTION

16 | North America Outlook issue 02

TECHNOLOGY

THE SELF-DRIVE REVOLUTION The US players taking the wheel in the Autonomous Vehicle Revolution Written by: Phoebe Harper

he evolution of self-drive vehicles has begun to read as a tale of false starts and delayed developments. Automotive enthusiasts worldwide wait on tenterhooks for the latest announcement from automakers at the forefront of the industry, poised for what promises to be a groundbreaking development. For many experts within the transport sector, the invention of selfdriving passenger vehicles resembles a natural stage of technological evolution, akin to the development of the mobile phone from landline to portable. Yet, self-driving vehicles are a technological advancement that has pre-occupied leading engineers and swallowed millions of dollars in investments for years. The concept of a self-drive car has grown in tandem with significant developments in artificial Intelligence (AI) over the course of the last decade. However, what is referred to as ‘Level Five’- the Holy Grail of a fully self-driving ‘robocar’- is yet to be fully realized, as human supervision remains a full-time requirement outside of trial settings. 2020 was originally tipped as the year that would herald the arrival of the self-driving car, as suggested by the likes of Toyota, Honda, and Waymo. For Tesla, 2020 became the fallback launch option after the company’s original forecast of North America Outlook issue 02 | 17

THE SELF-DRIVE REVOLUTION

achieving self-driving cars by 2018 proved overly ambitious. Leading automotive industries have since taken a step back, with former front-runner Uber announcing that it has effectively given up on its plans of self-driving taxis, selling off its autonomous division to San Francisco-based start-up Aurora in a $4 billion deal. Inevitably, the worldwide grip of the pandemic has frustrated progress somewhat, as the focus shifts from prioritizing robotic passenger vehicle development to autonomous delivery 18 | North America Outlook issue 02

‘THE SIMPLICITY OF THE CONCEPT OF AN AUTONOMOUS VEHICLE (AV), BELIES THE COMPLEXITY BEHIND THE TECHNOLOGY. MANY WOULD ARGUE THAT THE ENGINEERING HAS BEEN UNDERESTIMATED’

and trucking services to minimize risk of infection whilst providing essential logistic services. Rumours continue to amplify surrounding Apple’s ‘Project Titan’. Initially launched in 2014, the project entails the creation of a fully automated vehicle by 2024 complete with breakthrough battery technology, as reported by Reuters. It is still unclear who the tech-giant will partner with, as rumours of a HyundaiKia Motors partnership were recently dispelled, leading to a plummet in shares for both motor companies.

TECHNOLOGY

Nissan have also denied involvement in Apple’s project for an autonomous car, supposedly over branding disagreements. Within the restricted areas of trial zones, Tesla are one step ahead on the road towards full autonomy, after releasing the first version of its Full Self-Driving (FSD) beta software to a small group of testers in October 2020. Trials are ongoing across California to reach what Elon Musk terms, “superhuman self driving.” While most people tend to associate self-driving cars with a

THE SIX LEVELS OF AUTONOMY EXPLAINED LEVEL 0 – Zero automation features. LEVEL 1 – Low level driver assistance features, e.g. lane departure assist, adaptive cruise control. LEVEL 2 – Advanced driver assistance systems (ADAS), partial automation but requires drivers full attention. LEVEL 3 – Autonomous vehicles that can interpret the world around them without human intervention – driver should be ready to take over if necessary. LEVEL 4 – Technically no driver needed, but geographical restrictions apply for where this tech can be used. Top-speeds are limited, so must be driven by humans for faster speeds, e.g. Google Waymo. LEVEL 5 – The end-game of self driving technology – the car drives consistently regardless of road type or external weather.

fully automated experience - the driver reclining nonchalantly in the passenger seat, perhaps responding to emails whilst nursing a coffee on the morning commute – it is worth remembering that there are varying degrees of automation which offer a clearer model to chart the progress that has been made within the industry. In terms of semi-automated offerings that are highway-ready, there are several options available. The Cadillac Super Cruise, along with the Nissan ProPilot Assist and Tesla’s semi-autonomous Autopilot system are the closest thing to the automated experience on the market. Benefiting from automated technologies, such as lane centering, semi-autonomous navigation and traffic-aware cruise control, designed to keep the cars in lane and at a safe distance from other vehicles, your hands are free to leave the wheel. ‘Level Two’ autonomy is well within reach. The simplicity of the concept of an autonomous vehicle (AV), belies the complexity behind the technology. Many would argue that the engineering has been underestimated. The advanced control systems within the vehicle that interpret essential sensory information, such as obstacles and signage in order to navigate correctly, must be developed enough to allow total reliability. North America Outlook issue 02 | 19

THE SELF-DRIVE REVOLUTION

THE BASIC TECHNOLOGY RADARS – Essential for identifying other vehicles by emitting radio waves that bounce back from their surroundings. CAMERAS – As machine vision improves, the cameras will be used to identify and navigate everything in view. At present, they are used to identify key markers on the road, e.g. traffic lights. LIDARS – ‘Light detection and ranging’ – data collected from millions of lasers used to build a 3D map. These are the spinning thing installed on top of most AVs. MAPS – All ‘robocars’ will have their territory mapped by lidars and cameras extensively by the parent company. Essential for the car to know its precise location and to use as reference to verify sensor data. MACHINE LEARNING – The AI tool that enables computers to detect external objects, such as cyclists or lane lines, through millions of real-life examples. Through this, the cars will learn to react independently.

20 | North America Outlook issue 02

Naysayers worldwide are wary of safety concerns, and perhaps justifiably so. A myriad of variable factors complicates technological advancement and present serious obstacles to AVs – whether it’s the weather, errant jaywalkers, or the challenge of compensating for the physical communication that often takes place between drivers. AV models rely on cameras to track external objects, allowing the car to react to avoid a collision. Alongside this, in-car computers ‘machine-learn’ the rules of the road and identify the appropriate navigation. This takes time and can only be furthered through real-world examples, meaning the cars themselves physically need to be travelling on the road. At Waymo, it took a whole decade just to clock its first ten million miles which marked exciting progress. The number of miles driven acts as proxy for how much training data the company has collected, ultimately translating to safer vehicles. Automakers are partnering with titans of technology to benefit from software improvements that will aid them on their journey to developing reliable automated driving systems (ADS). Cruise, a leading self-driving car company and partner of General Motors, has joined forces with Microsoft Corp to benefit from Azure, Microsoft Cloud’s computing platform to accelerate the development and

commercialization of self-drive vehicles. In Silicon Valley, self-driving car start-up Aurora are one to watch technologically speaking. Founded in 2017 by a formidable triumvirate in the field of automated vehicles, Waymo’s founders include the former director of Tesla Autopilot, a previous Waymo engineer and Uber’s former autonomy and perception lead. Dedicated to the software, data and hardware behind the driverless cars rather than the vehicles themselves, Aurora has established itself as a leading name within the field. Different companies incorporate the technology using alternate methods. At Tesla HQ, ADS are being developed through coarse-grained two-dimensional maps and cameras, combined with radar and ultrasonic sensors. Comparatively, Google’s Waymo are also utilizing radar and ultrasonic sensors but instead they are relying on extremely detailed centimeter-scale three-dimensional maps and lidar. Tesla argues that although its process is more difficult technologically, it will have more benefits in the long term. Trials are ongoing, and the software is ever developing to improve how the vehicles interpret the sensor data. The improvements that still need to be made in this area can be tracked through disengagement ratings, such as those reported by the State of California’s DMV for 2020. ‘Disengagement’ occurs when

TECHNOLOGY

‘...GERMANY BECAME THE FIRST COUNTRY TO INTRODUCE LEGISLATION ENABLING THE USE OF AUTONOMOUS CARS AND BUSES IN DEFINED ZONES NATIONWIDE THAT ARE EXPECTED TO BE IN REGULAR OPERATION BY 2022’

an AV is forced to disengage from autonomous mode during testing – this could be the result of a technological failure or a situation that means the test driver or operator has had to take manual control of the vehicle for safety reasons. Statistics are rated by the number of instances per mile driven. While most companies typically don’t report these numbers, in the state of California it is a requirement. This objective report speaks volumes about the progress of different companies. Both Waymo and Cruise are statistically ahead of other prestigious competitors, including Apple. Both have marked significant improvements from their 2019 figures as flaws continue to be minimized across both companies’ autonomous driving technology.

Google-owned Waymo is the front-runner, with a record of 21 disengagements recorded over 630,000 miles of testing, translating to 29,425 miles covered per disengagement. Shockwaves were sent through the transport sector earlier this month, as on February 10th 2021, Germany became the first country to introduce legislation enabling the use of autonomous cars and buses in defined zones nationwide that are expected to be in regular operation by 2022. The regulatory approval needed for Tesla and other autonomous carmakers to bring self-driving vehicles to public roads is one step closer – although drivers may not be able to relinquish the wheel just yet, progression is well under way. North America Outlook issue 02 | 21

Tell us your story and we’ll tell the world. NORTH AMERICA OUTLOOK is a digital and print product aimed at boardroom and hands-on decision-makers across a wide range of industries on the continent. With content compiled by our experienced editorial team complemented by an in-house design team, the resultant Outlook Creative Services department ensures delivery to the highest standards in promoting the latest in engaging news, industry trends and success stories across the length and breadth of the US & Canada. As a bi-monthly publication, North America Outlook constantly has its finger on the pulse of the latest trends, biggest developments and business successes from each corner of the region, epitomised by the diversity displayed across each magazine. It incorporates an annual calendar-tailored front-of-book section, a showcasing segment dedicated to the most fascinating success stories in North America, and an event focus assortment sure to fill executives’ diaries throughout the year. The aligning North America Outlook website is also honed and ready to serve as a host for these facets and much more. To get involved, please contact Outlook Publishing’s Managing Director, Ben Weaver, who can provide further details on how to feature your company, for FREE, in one of our upcoming editions.

BAR LOUIE | ELM COMPANIES PACCAR

w w w. n o r t h a m e r i c a o u t l o o k m a g . c o m

SUPPLY CHAIN

Issue 02

KEYTRONIC

FREE Marke ti

Opportu ng nity

Offering a unique blend of high caliber design, engineering and manufacturing services

A NEW FRONTIER

We talk to PACCAR about the company’s progressive mission to place innovation, sustainability, and people-centric values at the forefront of business

ransport in the US is evolving. From the first Proto-Siberian inhabitants of the continent; hunter-gatherers who moved on foot via the once-existent Alaskan land bridge across the Bering Strait, to their North American descendants; the famously mounted indigenous

24 | North America Outlook issue 02

tribes, and the colonial period that followed; a tale of wagons, explorers and gold trails, transporting supplies over the continent has been essential to the survival and continuation of humankind since the beginning. Cut to the present, where evolving innovation has ushered onto us a

century of technological solutions and continual advancements, we find that transport is at the fore of a new frontier: the growing switch from traditional and wasteful fossil fuels to progressive e-vehicles is setting a new standard for the sector. Vehicles guided by AI systems and automated

A NEW FRONTIER

INNOVATION, SUSTAINABILITY, AND PEOPLE-CENTRIC DEVELOPMENT IN THE TRANSPORT INDUSTRY

PACCAR represents the latest in trucking transport in the US. We spoke to Debra Poppas, Vice President of Global Quality, about the company’s progressive mission to place innovation, sustainability, and peoplecentric values at the forefront of business Writer: Marcus Kääpä | Project Manager: Tom Cullum

North America Outlook issue 02 | 25

Andrew Kimmel of AuraNexus, discusses how the organization is personalizing learning at scale across the United States

www.northamericaoutlookmag.com/work-with-us

PACCAR

SUPPLY CHAIN

A NEW FRONTIER PACCAR represents the latest in trucking transport in the US. We spoke to Debra Poppas, Vice President of Global Quality, about the company’s progressive mission to place innovation, sustainability, and peoplecentric values at the forefront of business Writer: Marcus Kääpä | Project Manager: Tom Cullum North America Outlook issue 02 | 25

PACCAR

Automotive Industry Action Group AIAG was founded by the industry nearly 40 years ago as a non-profit association where manufacturers and their suppliers could collaborate in a legally neutral environment to develop standards and best practices that create a more efficient and sustainable supply chain for all. Over the years, manufacturers like PACCAR, along with other global OEMs and their suppliers, have provided their best minds at AIAG to develop the tools needed to ensure predictable manufacturing outcomes.

In the whole of the US, 74 percent of freight is transported by trucks control are now considered the norm in the realm of vehicle R&D. The widespread combination of technology, sustainability, community and high-performance is marking the future of the industry across the board. This notion of industry progression is no better exemplified than by PACCAR – the company changing the face of American trucking transport. Trucking is the lifeblood of the American economy. In the whole of the US, 74 percent of freight is transported by trucks, with rail and water-based transport making up another 11 and five percent (respectively). The extensive network of roads crisscrossing the nation provide vehicular access to any one location, and with individual roads such as the mighty US Route 20 spanning a substantial 3,365 miles coast-tocoast, long-haul trucking becomes the most efficient and rewarding mode of resource transportation. PACCAR embodies this. 28 | North America Outlook issue 02

Increasingly efficient trucking capabilities and solutions provided by the firm stand it above and apart from its peers in the transport industry. PACCAR is a global technology leader in the design, manufacture, and customer support of premium medium and heavy-duty trucks under the well-known nameplates Kenworth, Peterbilt and DAF. The company also designs and manufactures advanced powertrains, provides financial services, information technology and distributes truck parts related to its principal business. The international company utilizes a host of distribution centers and dealership networks spanning multiple regions, including South America, Australasia, Europe and the Middle East, and of course, North America. “This is a fabulous time to be working in the Commercial Vehicle space, particularly in the US,” says Debra Poppas, Vice President of Global Quality. “December Class 8 orders were the fourth best ever and fourth-quarter

Advanced Product Quality Planning (APQP), Production Part Approval Process (PPAP), and Failure Mode and Effects Analysis (FMEA) were developed at AIAG by member companies to address common pain points in the supply chain. Newer efforts include developing common tools, templates, publications, and training for USMCA, CTPAT, Conflict Minerals and Responsible Materials, and IATF 16949:2016, to name only a few of more than 300 solutions developed by the industry at AIAG. Now, AIAG has more than 4,000 member companies who work together every day to make the industry better for all. Along with the opportunity to develop the next generation of industry best practices, AIAG membership offers training (Live Virtual and in-person, at our site or yours), hardcopy publications and eDocuments, events, webinars, assessments, and more, ensuring your company has the knowledge to operate like the best in class, regardless of your company’s size.

Visit aiag.org to learn more about membership, and get the tools and training you need.

www.aiag.org/supplysafe

JOIN PACCAR AT AIAG PACCAR AND AIAG As a corporate member of AIAG for 30 years and a member of our Board of Directors for the last 6, PACCAR has been instrumental in the development and implementation of the standards and best practices that make high quality, repeatable manufacturing possible.

JOIN PACCAR AT AIAG AND GET ACCESS TO INDUSTRY DEVELOPED STANDARDS & BEST PRACTICES, INCLUDING: • APQP - Advanced Product Quality Planning & Control Plan documents, training and certification • PPAP - Production Part Approval Process documents, training and certification • IATF 16949:2016 - documents, training and auditor certification • Responsible Materials Reporting templates and training • Cybersecurity threat assessment • And much, much more

ABOUT AIAG AIAG is a global organization with over 4,000 members, made up of 6 commercial/heavy truck OEMS, 9 automotive OEMs, 10 EV OEMs, and over 3,500 direct part suppliers – including 144 Women Owned Enterprises.

Visit aiag.org/supplysafe to learn more or go.aiag.org/join to apply for membership

PACCAR cumulative orders were at number two all-time high.” Poppas attributes this to the wide-reaching industry implications resulting from the COVID-19 pandemic - a catalyst for goodsrelated freight demand. In the face of this, PACCAR rose to answer the increase in freight demand enabling customers and clients access to the latest and best in quality, highperformance trucking vehicles. Poppas has always had a passion for engineering-related hobbies and topics. “Growing up, I was a bit of a math and science nerd,” she muses. “My keen interest in each subject led me to pursue a degree in engineering. It’s how I learned to design electrical circuits and manufacture them through semiconductor fabrication and design sites in the heart of central Indiana. “But one of the reasons I was able to become the first female in my family

to go to college, the first female to run engineering at Delphi Electronics, and the first female officer at Remy International, is because I had family, mentors, and sponsors who believed in me, and encouraged me to take the tough assignments – people who gave me a chance.” Poppas began her career at General Motors (GM) as an 18-yearold college intern. She progressed through a multitude of positions, including those of Integrated Circuit Designer, Plant Manager, Vice President of Global Engineering, as well as working for two additional companies before her current position as Vice President of Global Quality for PACCAR. “My first job was quality inspector of a radio assembly line,” she tells us. “I was checking the functionality and appearance of the radios. I had a scale and a clipboard, and I was examining over 100 jobs per hour during an eight-hour shift.

AT A GLANCE: PACCAR PACCAR is comprised of five primary businesses: Commercial Vehicles, Powertrain, Aftermarket Support, Financial Services, and Information Technology. Each business makes a valuable contribution to PACCAR’s achievements. Quality, technology and innovation are the cornerstones that support PACCAR’s success, delivering outstanding products and services to its customers worldwide. PACCAR’s excellent performance enables the company to invest in new vehicles, factory productivity enhancements and engine technology throughout the business cycle. The PACCAR brand is also becoming more prominent as represented by PACCAR Parts, PACCAR Financial, PACCAR Leasing and PACCAR Engines. It takes all 27,000 employees to deliver the industry’s best products and services to its customers. PACCAR products and technologies are recognized as industry leading year after year. So, what does it take to consistently design and build premium quality products? It is an approach to quality that touches everything PACCAR does, and the company has been doing it for 116 years.

ConMet ConMet: A Premier Partner for Wheel Ends, Structural Castings and Plastics ConMet provides premium high quality components, engineering solutions and services to PACCAR. ConMet is a known leader in the heavyduty vehicle industry. For over 50 years, they have worked closely with Original Equipment Manufacturers (OEMs) like PACCAR to develop and manufacture best-in-class products for trucks and tractor-trailers. To deliver the highest level of quality and technology for clients like PACCAR, ConMet is closely involved in their design process. ConMet provides onsite engineering support for all three of their product lines. This collaboration accelerates time to market and improves customer satisfaction. Partnering for success ConMet’s unwavering commitment to quality has led to a 30+ year partnership with PACCAR. The ConMet PreSet® hub assemblies have been standard on all Peterbilt and Kenworth vehicles since 2003, and PreSet Plus® hub assemblies since 2013. PACCAR also trusts ConMet to supply their vehicles with lightweight structural castings and interior and exterior plastics components. In recognition of their partnership, PACCAR’s Supplier Performance Management (SPM) Program has been awarded to ConMet every year since 2015. Paccar has also presented ConMet with the “10ppm Quality Award”, which is given to suppliers who meet demanding criteria for delivery performance, warranty support, and show continuous improvement. Looking ahead ConMet’s experience has made them a long-standing leader in the design, engineering, testing and manufacturing of critical parts for heavy-duty vehicles. As they look to the future, ConMet is positioned to support market trends in areas of electromobility, autonomous mobility, and digital transformation, by continuing to develop unique and innovative products and services.

www.conmet.com

30 | North America Outlook issue 02

Keep your trucks on the road and your business moving forward. When you work with ConMet, you get over 50 years of industry-leading experience and the most innovative commercial vehicle technology available.

conmet.com

PACCAR

BUSINESS HIGHLIGHTS, AWARDS AND ACCOLADES – 2020 • PACCAR earned its 82nd consecutive year of net income. • PACCAR delivered 133,300 vehicles worldwide. • Kenworth and Peterbilt increased US and Canada Class 8 retail sales market shares to 30.1 percent. • Kenworth and Peterbilt increased US and Canada medium-duty retail sales market share to a record 22.6 percent. • DAF increased Europe above 16-ton registrations market share to 16.3 percent. • DAF Brazil achieved record above 16-ton retail sales market share of 5.7 percent. • The DAF XF truck earned the Fleet Truck of the Year 2020 award in the United Kingdom. • The DAF CF and XF model ranges won the prestigious international Good Design Awards for outstanding design and innovation.

Inteva Products Inteva is a customer-driven global supplier of engineered components and systems for the automotive industry. We provide top-tier competitive products and services, with quality measured at single-digit rejected parts per million, delivered on-time with competitive pricing. Our product lines include Closure Systems, Interior Systems, and Motors & Electronics, and we have more than 100 customers, including virtually all the world’s leading global and regional automakers. Our innovative materials technology, processes, and application of our core product knowledge create enhanced value for our customers. We are smart competitors with a drive to excel and grow in a global competitive marketplace. Inteva’s interiors portfolio is focused on providing valued interior systems that include manufactured components and fully integrated systems that fit the needs of our customer’s vast array of vehicle segments - everything from entry level and luxury vehicles, to SUVs and commercial trucks. Our portfolio includes instrument panels, door trim modules, consoles, headliners and more. Assembled and sequenced interior products include cockpits, headliners, and vehicle subassemblies. In addition, we also provide molded truck, under-hood and exterior components.

“That experience taught me that all details matter to ensure the quality of the product you are assembling. I participated in a General Motors co-op program that helped pay my college tuition, and within two years after I graduated, I was off to Purdue University (Indiana) to pursue a Master’s in Electrical Engineering, sponsored by GM.” Now Poppas oversees PACCAR’s quality management worldwide and 32 | North America Outlook issue 02

has had the pleasure of witnessing first-hand the company’s evolution to the present.

INNOVATION AND ENVIRONMENT In all aspects of its operations, PACCAR ensures the promotion of sustainable alternatives to the traditional fossil-fuel-based trucks that make up the majority of those in use, as well as innovative technologies in the field.

Our experienced designers provide visionary perspectives on how the interior of a vehicle can offer a luxurious environment and user experience. Our deep knowledge of the entire body system allows Inteva to bring those concepts to life through skilled engineering and advanced manufacturing technologies, and our unique InLite™ service to smart lightweighting brings cost-efficient weight savings to interiors.

intevaproducts.com

Driving tomorrow’s inspiration from today’s applications.

Inteva’s deep knowledge of automotive subsystems and broad engineering expertise make us an agile innovation partner for commercial vehicle manufacturers. Combined with our global operations and technical centers we bring your biggest ideas to life.

Inteva is a Tier One supplier without Tier One bureaucracy. With our deep knowledge of automotive subsystems and our broad engineering expertise, we are an agile partner that delivers innovation, exceptional quality, safety, mass reduction, and environmental sustainability. With manufacturing operations and technical centers for our four product lines in 50 sites over five continents, we bring the OEMs’ biggest ideas to life around the globe. ™

+1.248.655.8886 intevaproducts.com

PACCAR

Peterbilt 220 EV4

PACCAR’s movement towards electric vehicles is embodied by a fuel cell electric Kenworth T680 and battery electric Peterbilt 579EV, that recently became the first Class 8 zero-emissions vehicles to drive to the 14,115-foot summit of Pikes Peak in Colorado. “The trucks handily negotiated the famous Pikes Peak International Hill Climb course. Both vehicles displayed superb power and exhibited excellent drivability over the 156 turns and switchbacks during the 4,700-foot elevation gain to the summit,” Poppas elaborates. The Kenworth T680 fuel cell electric vehicle offers 470 horsepower and a 350-mile range with a 15-minute refill time. Kenworth and Toyota Motor North America are collaborating on a project to develop Kenworth T680 zero emissions trucks powered by hydrogen fuel cell electric powertrains. “The Peterbilt 579EV that climbed Pikes Peak is designed for optimal 34 | North America Outlook issue 02

weight distribution and performance. The fully integrated, electric powertrain uses thermally-controlled Lithium Iron Phosphate battery packs and can be quickly recharged, making the 579EV ideal for regional haul, port, pickup/delivery and last mile operations.” PACCAR’S nameplates Kenworth, Peterbilt and DAF are leading the industry with more than 60 hybrid and zero emissions vehicles in customer testing, which have traveled almost 500,000 miles collectively. Kenworth K270E and T680E, Peterbilt 579EV, 220EV, and 520EV and DAF CF Electric zero emissions trucks became available for customers to order in the third quarter of 2020. PACCAR’s electric vehicle production will proceed in the second quarter of 2021. “In addition, PACCAR is providing charging infrastructure solutions for customers who purchase battery electric Kenworth and Peterbilt trucks in the US and Canada,” Poppas tells us.

“Kenworth and Peterbilt customers and dealerships are able to order electric chargers from PACCAR Parts. PACCAR Financial offers flexible financing options and PacLease bundles the cost of charging systems with full-service lease.” The latest innovations within the electrical vehicle sphere go handin-hand with advanced automated driving technologies. In January 2021, PACCAR and Aurora (a leader in autonomous driving technologies) formed a global strategic partnership to develop autonomous Peterbilt 579 and Kenworth T680 trucks. PACCAR’s autonomous vehicle platform will be integrated with the Aurora self-driving technologies. PACCAR customers will benefit from the autonomous vehicles’ enhanced safety and operational efficiency. Kenworth T680 and Peterbilt 579 trucks utilizing the Aurora Driver are expected to be delivered in the next several years.

The reliability of Lincoln Industries’ solutions has been proven for over 65 years of service to some of the world’s most recognizable brands. Lincoln Industries is the largest and most diverse, privately-held metal finishing company in North America. With over 900,000 square feet of facilities in 10 locations across the Midwest, United States, and Mexico, Lincoln Industries ships 400,000 parts a day while providing quality, efficiency, service, and expertise. Lincoln Industries’ core capabilities include metal platings, performance coatings, polishing, insulation, tube fabrication, design engineering, automation, supply chain management, and value-added services like assembly, packaging, and logistics. Call today to see how Lincoln Industries can serve your business needs.

MAKING GREAT BRANDS BETTER 600 West E Street, Lincoln, Nebraska 68522 www.lincolnindustries.com | 402-475-3671 | info@lincolnindustries.com

PACCAR

BUSINESS HIGHLIGHTS, AWARDS AND ACCOLADES – 2020 • PACCAR achieved five awards from the National Association of Manufacturers: Kenworth Chillicothe earned two Operational Excellence Leadership awards; Peterbilt achieved a Talent Management Leadership award and an Operational Excellence Leadership award and PACCAR Ste-Therese was recognized in Manufacturing Leadership. • PACCAR Inc, Peterbilt, Kenworth, PACCAR Parts and Dynacraft were each recognized as top workplaces for women by Women in Trucking, an organization that promotes the employment and success of women in the trucking industry. • PACCAR earned an “A-” rating from CDP for its environmental practices, placing the company in the top 15 percent of over 9,500 reporting companies worldwide. • DAF Leyland received the prestigious Queen’s Award for Enterprise in International Trade 2020 for increasing exports by almost 50 percent over the last three years.

being that transporting freight autonomously is one of the favored forms of transport with which to incorporate self-driving technologies, due in part to the straightforward and worthwhile mission of delivery tasks - driving from start to finish along lengthy yet navigable routes for AI systems. This agreement is a global one, and Aurora’s focus will be on testing software, sensors and computing systems on the Peterbilt Model 579 and Kenworth T680. The testing will also include evaluation of the performance of the vehicles, both on-highway and at PACCAR’s R&D center in Mount Vernon, Wash.

The partnership between PACCAR and Aurora, a Silicon Valley-based autonomous-driving company with relatively new beginnings, will allow for the development and commercialization of the technology required for the safe autonomous hauling of large freight on US highways. Part of Aurora’s reasoning 36 | North America Outlook issue 02

WORKING TOWARDS NATURE AND COMMUNITY Resulting from this support for sustainability-centered business, PACCAR has been honored as a global leader in environmental practices by reporting firm CDP, earning a score of “A-” in 2020, which places PACCAR in the top 15 percent of reporting companies worldwide.

Drive Automotive Industries of America Drive Automotive, a manufacturing division of Magna, is a World Class medium and large stamping and assembly facility located in Piedmont, SC. Magna is dedicated to delivering automotive and large truck mobility solutions. The Magna Employee Charter, Operational Principles and our Code of Conduct and Ethics are the building blocks for a work environment that encourages innovation, involvement, and teamwork. Management and its employees work together as partners to achieve World Class manufacturing and deliver the highest quality products with the latest innovative technology to our customers. Drive Automotive is leading the industry in safety focus, employee onboarding, training, and quality to deliver unmatched results to our customers globally. Products • Bodysides and door opening panels • Doors, hoods and fenders • Liftgates and tailgates • Structural stampings • Large welded assemblies • Roofs and sunroofs • Floor pan stamping and assemblies • High-, medium- and low-strength structural stampings Technology • Blanking and stamping of Class A steel and aluminum body parts • Remote laser welding • Tactile laser welding • Laser brazing • Resistance spot welding and projection welding • Automated clinching and riveting • Automated sealer application

magna.com

DRIVE AUTOMOTIVE INDUSTRIES OF AMERICA 120 Moon Acres Rd Piedmont, SC 29673

PACCAR

Meritor WE’RE ELECTRIFYING THE INDUSTRY. AND THE WORLD. In 2021, production begins on the 100% electric 14Xe ePowertrain. It’s the first product in a line of many that hold the key to an industry revolution. Clean, powerful, efficient, flexible, and scalable. And although the technology and innovations are brand new, you somehow knew that it could only come from the company that has been the leader in commercial drivetrains for over 100 years. Visit www.meritor.com/14Xe

DAF LF Electric, CF Electric and CF Hybrid Trucks. PACCAR’s R&D efforts include several demonstration and development projects for Kenworth, Peterbilt and DAF vehicles, including battery electric, hydrogen fuel cell, and hybrid technologies. Over 9,500 companies disclose data about their environmental programs to CDP for independent assessment, and environmental leadership is one of PACCAR’s core values – an aspect that the firm is very proud of. “PACCAR reduced greenhouse gas emissions by 38 percent across its global facilities from 2013 to 2019,” Poppas informs us. PACCAR announced that it will establish new emissions reduction targets in partnership with the Science Based Targets initiative (SBTi). SBTi works with more than 1,000 companies worldwide to create a clearly defined path to reduce greenhouse gas emissions, with the goal to help limit global warming to below two-degrees Celsius compared to pre-industrial levels. “We are an environmental leader in global factory operations, with over 80 percent of our manufacturing facilities being zero-waste-to-landfill, and over 90 percent being ISO 14001 certified. Even our vehicles are over 80 percent recyclable, with steel, aluminum and copper components.” On top of this, PACCAR and the 38 | North America Outlook issue 02

About Meritor Meritor, Inc. is a leading global supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. With more than a 110-year legacy of providing innovative products that offer superior performance, efficiency and reliability, the company serves commercial truck, trailer, off-highway, defense, specialty and aftermarket customers around the world.

PACCAR Foundation has made more than $200 million in grants around the world for education, social services, and the arts to enrich the communities in which its employees live and work. The PACCAR Foundation is a private foundation formed in 1951. The Foundation usually directs its grants to organizations in those communities within the service area of a significant PACCAR presence, such as a factory or a major office. “The company has recently contributed $1.5 million to nonprofit organizations that promote diverse and inclusive communities, including UNCF, Special Olympics USA Games, YWCA, Landesa, Northwest African American Museum and Lighthouse for the Blind,” Poppas tells us.

Meritor is based in Troy, Michigan, United States, and is made up of more than 8,600 diverse employees who apply their knowledge and skills in manufacturing facilities, engineering centers, joint ventures, distribution centers and global offices in 19 countries. Meritor common stock is traded on the New York Stock Exchange under the ticker symbol MTOR.

For important information, visit the company’s website at www.meritor.com

www.meritor.com

THE ELECTRIC REVOLUTION IS HERE Peterbilt, Kenworth and Meritor join forces to deliver best-in-class electric vehicles, available now. The industry will never be the same. Learn more at meritor.com/epowertrain.

PACCAR

PACCAR donated Kenworth trucks to support the Swedish Hospital Mobile Mammography Clinic that provides care to Washington State’s underserved areas.

PACCAR Mexico employees participated in the Environmental Fair sponsored by the Baja California State Government to promote environmental awareness in elementary school students.

PACCAR supports Landesa, an organization that works with governments in emerging markets such as India and China to improve the property rights of poor farmers. When farmers own the land they work, productivity increases, reducing hunger and poverty.

PACCAR Hall, home of the University of Washington Foster School of Business, supports the School’s emphasis on leadership, strategic thinking and teamwork and earned a Silver LEED Certification for its design.

Grant recipients usually include United Way, universities, hospitals, and programs for art-related and economic education. The balance of the Foundation’s grants is normally reserved for capital campaigns involving acquisition or improvement of facilities used for social and health services, education and cultural affairs. A foundational belief guiding PACCAR’s philanthropy is that with a strong education, people have a life full of opportunities. PACCAR is proud of its generous grants to universities, which use the funding to provide scholarships, fund research in science and business disciplines, and build world class facilities for students and faculty. 40 | North America Outlook issue 02

To prepare school-age children for the skills to succeed in the 21st century workforce, PACCAR and its many committed employee volunteers support literacy programs to purchase books for children in need and contribute funds and time to education programs in economics, science and business through Junior Achievement and similar programs that supplement school curricula. Ensuring that communities have quality health care technology and services is a major priority for PACCAR philanthropy. PACCAR funds community hospitals and provides dental services for those in need. PACCAR made a significant donation to Cancer Research UK to build a world class cancer research facility

that will support the communities near PACCAR’s Leyland factory in Lancashire, UK. Strong communities assist those less fortunate with a range of social services. PACCAR and its employees are proud to be longstanding supporters of United Way organizations across the United States. Over the past five years, PACCAR has donated $6.2 million and PACCAR employees have contributed many volunteer hours to United Way organizations. As the organization extends its global reach, it has expanded its philanthropic leadership to support emerging economies. PACCAR’s donation to Sightlife, an eye bank, brought the latest surgical equipment to India to improve the success rate of corneal transplants for blind people across India, and to provide funding for hundreds of eye surgeries in the nation’s city of Pune. “During the course of 2020, PACCAR and its employees donated over $2 million to assist communities impacted by the COVID-19 pandemic,” Poppas informs us. The company’s diversity councils operate throughout PACCAR’s global businesses. The diversity councils’ goals are to enhance business success through diverse and inclusive workplaces. The PACCAR Women’s Association seeks to increase women in PACCAR leadership roles by providing educational, networking and mentoring opportunities to employees at all levels. “PACCAR, Kenworth, Peterbilt, PACCAR Parts and Dynacraft were each honored by the Women in Trucking Association as a 2020 Top Company for Women to Work for in Transportation,” Poppas explains. “We are committed to hiring and promoting the most talented people in the world and we know that the best people represent the diversity present in the global community.”

At NIC Global, we are: • Committed and aligned to our customers’ success • A Dependable Link in the supply chain • A Manufacturer of sheet metal parts through full assemblies • Trusted to innovate and deliver Learn more at www.nicglobalms.com

PACCAR

AT A GLANCE: PACCAR PARTNERSHIP QUALITIES The firm looks for the most reliable business partnerships to provide the best possible supply chain operation, therefore maximizing its potential when providing customers and clients with quality trucking parts and vehicles. • Global capabilities and global support;

PEOPLE-CENTRIC BUSINESS One factor that truly makes PACCAR the company it is are the hardworking and skilled employees across all the company’s departments. Its employee-centric operation helps each individual feel like their own boss at the same time as sharing a communal sense of company achievement. “As the commercial vehicle quality leader, we have world-class employees,” Poppas informs us. “We have a well- established Six Sigma training program that includes lean belt, green belt, black belt and design for Six Sigma open to employees, suppliers and customers. We have trained more than 15,000 people globally.” PACCAR is a member of the Automotive Industry Action Group (AIAG) which provides cost- effective training and collaboration opportunities with other OEM’s for best practices and knowledge sharing. In addition, we actively network and benchmark with leaders in other industries through Manufactures Alliance for Productivity and Innovation (MAPI’s) quality council, Conference Board Quality Council and Gartner Quality/Supply Chain. 42 | North America Outlook issue 02

“We developed individualized training plans for our global supplier quality mangers to improve skillsets and effectiveness in working with our suppliers,” Poppas tells us. “This includes the American Society for Quality (ASQ) certification for quality engineers for 100 percent of our supplier quality managers.” On top of this, another side to the company’s success are the many business partners that make up the smooth and efficient operation of the supply chain. “PACCAR works closely with our supplier partners to ensure that our products are the highest quality and most efficient to manufacture,” Poppas elaborates.

• Investment in technology and quality systems; • Less than 10 ppm (parts per million) defects or errors; • A commitment to Six Sigma; • Investment in capacity to support Paccar’s global growth; • Reducing product complexity without compromising performance and quality; • Increasing design collaboration; • Jointly providing low-cost solutions for customers; • On-time delivery.

Rago & Son, Inc. was founded in 1945 by Joseph Rago as a metal stamping and machining company. We have been family owned and operated since then, and have grown into a high volume metal production facility. Throughout the generations, our singular mission has been to deliver great quality with friendly customer service and support at the lowest possible costs. We are now under third generation ownership, and we continue to provide excellent service to our customers. Work with us once, and you will become a customer well into the next generation of Rago & Son.

OUR SERVICES Production Metal Stamping High-Volume Metal Stamping Complete Welding Capabilities Metal Tube Production Filter Tube Capabilities Perforated Tubing Custom Metal Stamping Pre-Production Services Post-Production Services

TEL: 510-536-5700 | www.rago-son.com

PACCAR

RGBSI About RGBSI Founded in 1997, RGBSI began with the strength of engineering and technical expertise. Today, RGBSI operates all around the world, working with organizations across industry sectors and international markets.

“PACCAR relies on excellent suppliers to build industry-leading quality Kenworth, Peterbilt and DAF trucks. To achieve elite 10 ppm status, PACCAR’s outstanding suppliers need best-in-class product design and process capabilities, and just as important, a quality-focused culture. Our focus on excellent supplier performance ensures PACCAR products are the highest quality in the Commercial Vehicle industry.” The company annually recognizes suppliers who exceed PACCAR’s “10 ppm” quality standard, or the equivalent of 10 defective parts for every million components shipped to PACCAR. Over 51 percent of company suppliers exceeded that target in 2020. To qualify, suppliers must also meet demanding criteria for delivery performance, warranty support and continuous improvement. In 2020 alone, PACCAR recognizes 369 suppliers in 27 countries on five continents for achieving this high level of quality performance. This recognition of its top performing suppliers occurs through its comprehensive Supplier Performance Management (SPM) program. This honor is given to 44 | North America Outlook issue 02

suppliers that reach the SPM Master, Leader and Achiever status. The SPM program drives collaboration and continuous improvement between PACCAR and its suppliers, which leads to performance enhancements and product innovations. “The SPM program evaluates a supplier’s performance in the areas of product development, operations support and business alignment with PACCAR objectives,” Poppas explains. “Suppliers and PACCAR Quality work together to increase delivery performance, warranty support, and continuous improvement. Suppliers should bring us product innovations; have global capabilities and have local market support. Vehicle integration with our systems at the lowest total cost and strong aftermarket support is paramount. We expect our suppliers to be profitable, so they are able to invest in their business and product innovations, with succession plans that support their long-term viability and our business over time.”

At RGBSI, we deliver business solutions that close the gap between strategy and execution for global organizations of all sizes. Our portfolio of solutions spans across the verticals of workforce management, engineering, quality lifecycle management (QLM), and information technology (IT). Through strategic partnerships, we help clients enhance performance, adopt innovation, and access global resources. We enable organizations to meet their corporate objectives by leveraging our robust capabilities. We are ISO 9001:2015 and AS9100:2016 Rev D certified, as well as a Minority Business Enterprise. www.rgbsi.com About Empower QLM Empower QLM, a division of RGBSI, is our proprietary cloud-based QMS for total quality lifecycle management. The technology allows users to align supply chain management strategies with manufacturing quality through full automation. From product conception through manufacturing, Empower QLM provides complete transparency by connecting all relevant parts of the supply chain. www.empowerqlm.com

A HISTORY OF ACHIEVEMENT PACCAR conducts its business to achieve above-average market returns for stockholders, reflect

www.rgbsi.com

PACCAR

Stoneridge Stoneridge Innovation Stems From Decades of OEM Experience Stoneridge, Inc. is a designer and manufacturer of highly engineered electrical and electronic systems, components, and modules, primarily for the automotive, commercial vehicle, and off-highway vehicle markets.

PACCAR history

STANDING OUT FROM THE CROWD PACCAR’s operating policies begin with an established quality policy that has always guided the company’s actions. This will be accomplished by: • Identifying and then exceeding customer expectations with innovative products and services that contribute to the customer’s success. • Developing and maintaining a shared commitment by all PACCAR employees to continuously improve performance and achieve defect-free processes, products and services. • Developing highly skilled employees with industryleading abilities. • Coordinating all disciplines to focus on being the highest quality, lowest cost company in our respective industries.

46 | North America Outlook issue 02

the highest ethical standards, fulfill its legal obligations, and meet its social responsibilities. The company strives to gain the favorable regard of customers, shareholders, employees, regulatory authorities, and the general public through superior performance and effective communications. PACCAR’s ESG approach is focused on environmental leadership, social responsibility, ethical business conduct, and corporate governance practices that enhance shareholder value. The ESG disclosures in this report (found at paccar.com) are consistent with the SASB Industrial Machinery and Goods Sustainability Accounting Standard Version 2018-10. To understand PACCAR’s current standpoint, ethos, production quality and success, we can look no further than its history throughout the 20th century. In 1905, William Pigott, Sr. founded Seattle Car Mfg. Co. to produce railway and logging equipment at its plant in West Seattle. The company later merged with Twohy Brothers of Portland to become Pacific Car and Foundry Company, a name it retained for the next 55 years. In 1924, William Pigott sold control of the company to American Car and Foundry Company. Paul Pigott, son of the founder,

Stoneridge is well-positioned to meet the global needs of the mobility industry, providing solutions that power vehicle intelligence, provide dramatic increases in fuel efficiency, reduce vehicle emissions, and improve safety and security for vehicles, cargo, and drivers. The mobility industry’s sought-after integrated technology partner, Stoneridge is ready to take on your next vehicle challenge. • OEM-Grade – Stoneridge’s OEM experience allows it to identify solutions to the most challenging problems with cost-effective, high quality and highly reliable technologies. • Systems and Solutions – Stoneridge’s expert engineering teams have mastered packaging and vehicle systems integration, allowing for the delivery of comprehensive technologies that improve vehicle motion control, safety, fuel efficiency and intelligence. A global company with a start-up mindset, Stoneridge is driven by a team of entrepreneurial thinkers and innovators, and backed by an organizational commitment to R&D.

www.stoneridge.com

SYSTEMS AND SOLUTIONS FOR A WORLD IN MOTION Stoneridge’s advanced technology platforms deliver vehicle intelligence, enhanced safety, security and improved efficiency.

Connectivity Enabling real-time data for more efficient transportation.

MirrorEye® CMS Enabling greater situational awareness for safer driving.

Driver Information Systems Delivering robust vehicle, environmental and infotainment data.

Stoneridge.com

PACCAR

William Pigott, Sr. founded Seattle Car Mfg. Co. in 1905 acquired a major interest in the company from American Car in 1934. Under his leadership, the business expanded its products and services. With its first major acquisition of Kenworth Motor Truck Company of Seattle in 1945, the company entered the heavy-duty truck market. Pacific Car and Foundry greatly expanded its heavy-duty truck capability with the purchase of Peterbilt Motors Company in 1958. And in 1966, Pacific Car and Foundry Company entered the Australian truck market with the establishment of a Kenworth Truck assembly plant near Melbourne. Then, in the following decade, believing “Pacific Car and Foundry Company” no longer accurately reflected the Company’s products and activities, directors and shareholders voted to adopt PACCAR Inc as its new name in 1972. This paved the way for two major divisions of PACCAR to be founded in the following year: PACCAR International Inc, with headquarters in Bellevue, Washington, was formed to consolidate the sales and service of company products abroad, and PACCAR Parts Division was established in Renton to supply 48 | North America Outlook issue 02

aftermarket parts sales. With the acquisition of DAF Trucks N.V. in 1996, and Leyland Trucks in 1998, PACCAR was established as one of the major truck manufacturers in the world. DAF Trucks is a Netherlands based truck company with production facilities in Eindhoven, the Netherlands and Westerlo, Belgium. Leyland manufactures DAF trucks at its plant in Lancashire, England. Moving into the 2000s, 2010 saw PACCAR unveil its PACCAR MX engine line for North America. While the MX engine was new to the North American market, DAF

has been building engines in Europe since 1957. PACCAR invested $400 million in the PACCAR Engine factory and technology center in Columbus, Mississippi, to assemble its proprietary engines. Within recent years PACCAR has grown substantially and laid roots in many different areas around the globe. On top of this, the firm has turned its focus to not only expansion, but also innovation across the board; an aspect of the company that remains increasingly important during this digital age. 2013 was the year PACCAR expanded its global operations with the opening of a new DAF factory in Ponta Grossa, Brasil. The company invested $320 million in the 300,000 square-feet assembly facility on 569 acres. The factory currently assembles the DAF XF and CF vehicles for the South American market. Following on from this in 2017 the company announced the opening of its Silicon Valley Innovation Center in Sunnyvale, California. The center coordinates next-generation product development and identifies emerging technologies that will benefit future vehicle performance. And with 2020 came the introduction of a new age of innovation for the company. Kenworth T680 fuel cell electric vehicle and a battery electric Peterbilt Model 579EV became the first Class 8 zero emissions vehicles to drive to the 14,115-foot summit of Pikes Peak in Colorado. This year, PACCAR and Aurora established a strategic agreement to develop, test and commercialize autonomous Peterbilt and Kenworth trucks. This collaboration will integrate PACCAR’s autonomous vehicle platform with Aurora Driver technology. From this past, PACCAR has risen to become a key player in the trucking transport industry and continues to supply its quality variants of trucks and positive ethos in the present and into the future.

From our first combined original-equipment installed vehicle in North America (1933) to today, Cummins is proud to consider PACCAR a key collaborator and valued business partner. With a shared focus on environmental responsibility, dependability, diversity and sponsoring the Women In Trucking Association, Cummins recognizes and thanks PACCAR for their many contributions to the transportation industry.

cummins.com

PACCAR

PREMIUM PRODUCTS A PACCAR product and service will enhance the company’s reputation of providing unsurpassed customer satisfaction through superior quality and premium value. PACCAR’s enterprise quality system consists of five main components: • Design quality ensures that it designs for reliability, manufacturability, assembly and serviceability. • Product validation confirms that its new commercial vehicles and powertrains will meet the demands of its customers’ applications. • Built in quality is the commitment its plants make to build consistently flawless trucks and engines everyday by leveraging technology and error prevention. • Supplier quality maintains alignment with PACCAR’s design requirements and quality expectations. • Six Sigma is its continuous improvement methodology. It is used as the company’s standard problem-solving tool, improving efficiency, productivity and streamlining business processes PACCAR-wide.

INTO THE FUTURE Now PACCAR stands at the beginning of a new frontier. A company that places innovation, sustainability and people-centric values first, PACCAR spearheads the trucking transport industry with a progressive attitude towards incorporating the latest technology and maintaining the best practices with regards to operational efficiency and limited environmental impact. “Quality is the defining character of PACCAR products and is the bedrock of our success,” Poppas says, and 50 | North America Outlook issue 02

ends by elaborating on the company’s future plans. “As such, PACCAR is maturing its supplier software quality assurance process using a process capability assessment ASPICE. We are also maturing our Quality Management System for robust controls for electrification and autonomous technologies in a high-volume production environment that match commercial vehicle requirements for safety, functional performance, compliance, durability, and quality. “Advancing problem-solving

capability throughout the supply chain, expanding data analytics to anticipate and predict customer needs and equipping the organization with insights to make better informed decisions are the transformative quality initiatives underway. The challenge is to proactively and flexibly help the business respond to disruptive technology, rapidly shifting economic conditions and expanding supply bases.” With a longstanding history dating back to 1905, PACCAR now represents the forward-moving development of the trucking transport industry across the US and several regions around the globe. Its innovative reach into the realm of electric vehicles has opened a whole new branch of possibilities for the company itself and its customers, and PACCAR’s continuing investments have given the company an everadvancing foothold into the latest high-end self-driving technologies. As it stands, and with the future, a highway laid bare for the company, it is more than fitting to say that it is worth keeping an eye on the progressive convoy that is PACCAR.

Tel: 425.468.7400 Fax: 425.468.8216 www.paccar.com

SUPPLY CHAIN

Superior Trim is a certified Woman Owned Business available to produce cost-competitive, high-quality interior and exterior trim products for all classes of trucks. Recognized as an industry leader in quality and delivery performance. Please visit our website or call us with any inquiries or questions.

www.superiortrim.com

SUPERIOR TRIM

Shaping technology in motion

www.us.mahle.com

North America Outlook issue 02 | 51 NAO PACCAR MAHLE qtrpg.indd 1

1/28/2021 8:38:53 AM

ARROW TRUCK SALES

Driving Quality Paul Stephens, VP of Purchasing and Wholesale at Arrow Truck Sales, discusses the current state of the trucking industry today Writer: Sean Galea-Pace | Project Manager: Tom Cullum

This is a very exciting time to be in sales because of the demand for used trucks,” explains Paul Stephens, VP of Purchasing and Wholesale at Arrow Truck Sales. In the United States, trucking is responsible for most of the overland freight movement, with the industry

52 | North America Outlook issue 02

worth over $791 billion. Stephens has been at Arrow Truck Sales since 2007. Since then, he has served the firm in several different positions and now works as Vice President of Purchasing and Wholesale. Equipped with this plethora of experience and know-how, he recognizes what sets Arrow apart

from its competitors. “The longevity of Arrow speaks for itself, and to the capabilities of our strong sales staff to build excellent customer outcomes,” explains Stephens. “We are transparent, and we stand behind the product we offer. Transport Funding, our financing company,

SUPPLY CHAIN

has helped over 50,000 customers finance a piece of equipment that enables them to have their own business. Our repeat and referral business are strong, and something we take very seriously.” Founded in 1950, Arrow Truck Sales has become one of the major forces in the used heavy and medium duty

trucks trade in North America. The company provides quality, pre-owned trucks to the trucking sector and is Arrow’s core business. Arrow’s inventory is made up of all makes and models, including Volvo, Freightliner, Kenworth, Peterbilt, Mack and International. It is a sales-focused organization that is set on creating

strong customer relationships without service or parts departments. Arrow excels at acquiring, reconditioning and remarketing the equipment in a transparent manner. The firm also provides financing, extended service contracts and a list of other products that enriches its customers experience as used truck owners.

North America Outlook issue 02 | 53

ARROW TRUCK SALES In 2017, Arrow Truck Sales partnered with Women in Trucking (WIT) in a bid to encourage the employment of women in the industry. Arrow now provides WIT’s members with pre-negotiated pricing on its value-add products and financing. “Arrow believes in WIT’s mission and values the relationship tremendously,” explains Stephens. “We’ve had the honor of working tradeshows with WIT, helping them with their strategic planning, and donating equipment to support their cause.”

ARROW TRUCK SALES: COMPETITIVE ADVANTAGE Since its founding over 70 years ago, Arrow Truck Sales has become the leading source of pre-owned medium and heavyduty trucks in North America. The firm is renowned for delivering high-quality but used vehicles to customers that want to maximize the value of purchasing dollars. Arrow is committed and passionate about delivering reliable and robust trucks across all makes and models, while priding itself on its unparalleled customer service and strives on providing a personalized experience.

Paul Stephens, VP of Purchasing and Wholesale

54 | North America Outlook issue 02

In 2018, the organization donated a late model Volvo truck to Women in Trucking to give to a deserving female driver during the 2018 Salute to Women Behind the Wheel event in Louisville, KY. Arrow Truck has since gone on to donate another truck for the upcoming 2022 event. In addition, Women in Trucking members have access to Arrow’s PRIME program and receive exclusive free benefits when purchasing a truck. Speaking at the time, Ellen Voie, WIT president and CEO, commented: “We are grateful for their commitment to bringing greater opportunities for women in transportation and helping them succeed. I am thrilled to offer the chance of a lifetime to another one of our hard-working and deserving members through their generous donation.” With the impact of COVID-19 felt around the world, Arrow Truck Sales recognized the importance of responding quickly to the disruption and prioritized the well-being of its employees. “We are taking extra steps to ensure that we deliver trucks to our customers in a safe manner. Our staff is ready to listen to our customers unique needs and provide assistance in person, over the phone and online,” says Stephens. “For our customers who prefer to stay home and connect with us digitally, we have a full range of solutions in place to facilitate social distancing during their truck-buying experience. Some of these solutions include virtual walk arounds, virtual test drives, touchless delivery, and extra sanitation of the equipment. All of our employees wear face protection of some form and we offer free masks to our customers at our locations.” Indeed, Arrow has offered a touchless truck buying experience which allows its customers to easily search its inventory and shop from the safety of their homes. Customers can choose the truck they like online and will subsequently be sent detailed pictures and videos for review. Buyers can then

RoadsideMASTERS.com Seven years ago, in a move to provide unparalleled benefits and services to its customers, Arrow Truck Sales, a leading source of pre-owned heavy and medium-duty trucks in America and Canada formed a strategic partnership with RoadsideMASTERS. com, the nation’s largest Mechanical Breakdown Membership Program for Truckers. A partnership that has helped thousands of Arrow Truck Sales customers receive emergency roadside assistance on the go, in the United States and Canada. In RoadsideMASTERS.com, Arrow Truck Sales has a partner with the experience in providing mechanical breakdown solutions to commercial vehicles in the heavy-duty segment. With a RoadsideMASTERS.com Membership, routine driver issues are quickly resolved. RoadsideMASTERS. com proprietary GPS locater technology quickly locates and dispatches the closest vendor to the driver’s breakdown location. Furthermore, RoadsideMASTERS. com Membership Program immediately removes the “overhead” burden and gives members access to RoadsideMASTERS.com proprietary vendor network with dramatic prenegotiated savings. RoadsideMASTERS.com is here to help make roadside assistance simple and accessible for the nation’s commercial vehicles. We continue to make extensive and ongoing investments in the latest technology, people, training and processes in order to provide the best service we can, to commercial fleets, truckload carriers, heavy, medium, and light duty trucks, buses, and vans, both in the United States and Canada, 24 hours a day, 7 days a week. To find out more about RoadsideMASTERS.com comprehensive membership benefits visit www.roadsidemasters.com.

www.roadsidemasters.com

DOWNLOAD THE ROADSIDEMASTERS.COM APP

ARROW TRUCK SALES

“I believe the market will stay robust in the first half of 2021, and in the second half of the year we could see the used market taper off just a little as supply constraints loosen” – Paul Stephens, VP of Purchasing and Wholesale complete a streamlined online credit application and Arrow will call or email to discuss the chosen option further. In an attempt to mitigate contact, Arrow is restricting walk-ins across its locations and removing it completely in some of the most impacted markets. Upon purchase, customers can pick up their truck curbside or have delivery to a location of choice arranged. Operating with an agile and lean mentality is a key part of Arrow’s mindset. Over the past three years, the company’s marketing efforts have 56 | North America Outlook issue 02

experienced considerable success in driving customers to the website and social media platforms. “On our website, we launched a new chat feature in 2020 that has increased our customers’ ability to contact us immediately,” he explains. “We are available for them to ask questions and we truly feel it has allowed us to build value to the customer experience.” Another essential part of Arrow’s vision for long-term success is partnerships. The firm possesses years of experience working alongside its key

vendors across corporate and branch locations. Stephens acknowledges how vital these strategic relationships are to his organization. “Our vendors are a key component to our success and we’re grateful for the relationships that we have,” he explains. “Many of our vendor partners have years of experience working with our corporate and branch locations. The used truck industry requires trust at a very high level and our vendor partners excel in this area for our customers.”

SUPPLY CHAIN

INSIDE THE US TRUCKING INDUSTRY There are three main types of trucking in the United States. These are: FULL TRUCKLOAD CARRIERS Full truckload carriers are the organizations that haul substantial amounts of homogeneous cargo, usually enough to fill an entire semitrailer or container. Fleets in the FTL industry can be either privately owned or available on a for-hire basis. These generally offer additional logistics and transportation services, such as intermodal transport options. LESS-THAN-TRUCKLOAD CARRIERS LTL carriers transport shipments that are larger than parcels, but not big enough to fill an entire trailer. Many LTL carriers will transport a number of shipments simultaneously to optimize operations and be more efficient. COURIERS The courier industry consists of carriers of non-palletized and light goods, such as parcels.

Staff play an influential role in the success of all businesses; however, Stephens affirms that without his organization’s employees, success would be impossible. “Without our passionate and dedicated employees, we would not be the company that we are today,” he explains. “We value all input and go the extra mile in trying to create a healthy environment in every area. Even though our company is large, our locations themselves are relatively small. Each location has the ability to make decisions based on their particular market and we value that input from our sales staff and management team. We are proud of all our employees!” The future of the trucking industry looks bright. Despite a challenging 2020, it is hoped that the trucking freight market could bounce back and reach pre-pandemic levels, according to forecasts from FTR Transportation Intelligence. With the next few years in mind, Arrow has outlined its intention to continue to grow at scale and make an impact on the sector. “We have a very aggressive agenda in order to continue making a huge imprint in the market and grow our

market share,” he explains. “Every successful organization has goals, and each area within Arrow has identified specific objectives to help support the strategic vision of our company leaders. I believe the market will stay robust in the first half of 2021, and in the second half of the year we could see the used market taper off just a little as supply constraints loosen.”

Tel: 800-827-7694 Info@arrowtruck.com www.arrowtruck.com

North America Outlook issue 02 | 57

EXPEDITER SERVICES (ES)

Jason Williams, President of Expediter Services, showcases what makes his organization different from competitors Writer: Sean Galea-Pace Project Manager: Tom Cullum

Transforma

TRUCKING 58 | North America Outlook issue 02

ative

SUPPLY CHAIN

ogistics in North America is big product touches a truck at some business. point,” he adds. “It’s an investmentGiven the size and scale of the centric environment where lots of continent, the industry is awash with people are going to spend money on opportunity. new ideas and with that attitude being For Jason Williams, President of in the industry, we are constantly Expediter Services (ES), the process trying to solve issues.” of exploring the career possibilities in ES is a firm that has established a logistics can fittingly be traced to the position of leadership in providing same path taken by so many of the capacity solutions and ownership aspiring entrepreneurs his company opportunities within the trucking assists today. The journey began industry. Launching its operation with family at its roots. Following a in 2006, Expediter Services began successful career in banking, Jason’s by initially working in trucking’s father, Paul, was looking for new expedited sector offering a new challenges and opportunities. approach to capacity that continues Paul Williams believed that he to speak to the needs of today’s and Jason could put together an overall trucking marketplace. In fact, effective team and the ES Model grew such apply the right strong roots within resources that could expediting that the provide needed company was able to truck capacity for subsequently branch a growing industry. out into truckload and A central key to Less-than-truckload their business plan sectors. would be building a From its earliest days, platform that could Expediter Services offer opportunities recognized the scope for professional of services and support drivers to chart that owner-operators, their own career independent contract Jason Williams, President course as business drivers and aspiring owners. While the road to success in trucking business owners needed trucking for Expediter Services, like to be successful. Expediter Services most companies in the industry, has stepped forward to develop a included a few bumps along the way, platform featuring support in the Jason has embraced the opportunity areas of financial services, financial to connect with people across technology, contract driver services, the industry and learn from every equipment financing and leasing, experience. truck sales, management services, “Over the past 20 years, I have insurance services, and discount done most jobs within the industry programs. While placing a focus on from loading, driving, dispatching the people behind the wheel and to selling and brokering freight. All aspiring trucking business owners, those experiences have taught me Expediter Services began building that there is so much opportunity strong working relationships with for business creation in the logistics some of the leading brand names in industry in the United States. the trucking industry. As trucking has “It’s a wonderful industry because continued to evolve and the overall it can be utilized regardless of what available driver pool has contracted service a company is providing. in recent years, the industry’s carriers When you think about it, almost every have significantly deepened their North America Outlook issue 02 | 59

EXPEDITER SERVICES (ES) search for stable, reliable, and safe capacity. As trucking companies look at their overall operations, the value of non-asset capacity has greatly increased for carriers looking to maintain and grow their respective fleets. “When we first got involved in the expedited market about 15 years ago, we saw some needs in the trucking industry that became opportunities,” explains Williams. “First of all, we had spent time getting to know the barriers to entry and the obstacles that aspiring entrepreneurs encountered, especially owneroperators and independent contractors. We believed that we could build a network of programs and support systems that could lead to greater levels of success for those small businesses. Also, while working with and getting to know motor carriers across the industry, we got to see first-hand the value that stable, safe and reliable capacity held for fleets of any size. When you look at the overall platform that Expediter Services established, we have become a business creation vehicle at the driver level, and we are a

60 | North America Outlook issue 02

valued supplier of non-asset capacity for some of the leading names in the trucking industry.” Today, ES is a leading supplier of non-asset capacity for FedEx Custom Critical, Forward Air and Panther Premium, a service of ArcBest. The company also provides non-asset capacity to other motor carriers within the industry, and Expediter Services continually receives inquiries from carriers interested learning more about the ES Model. “One of the first things that we tell carriers looking to work with us is that everyone at ES is focused on the success of the people behind the wheel,” offers Williams. “Our success as a company is dependent on the success of the owner-operators, independent contractors and business owners in our program. We’ve been very intentional on how we’ve built our carrier and vendor network along with our strategic partnerships.” The beginnings of the strategic partnership between ES and the Women In Trucking Association (WIT) began several years ago when WIT President and CEO Ellen Voie met with the Expediter Services’ leadership team. In 2016, Williams was selected to serve on the WIT Board of Directors, and the following year, ES and WIT launched the 150 Business Challenge. This program is a collaborative initiative between the two organizations to create 150 women-owned businesses in

ArcBest To all the truck drivers moving freight at a moment’s notice — thank you. We appreciate your commitment to delivering critical goods around the clock to keep our nation going. We recognize the countless hours you’re driving coast to coast to keep our supply chains moving forward. We realize this often means you spend days, weeks and sometimes months away from your loved ones. Your commitment to delivering essential goods along with the products that make our lives easier doesn’t go unnoticed. Thank you for being America’s heroes!

arcb.com

transportation. To date, the program now stands at more than 110 new women-owned trucking businesses launched. “We are proud of what has been accomplished through the 150 Business Challenge so far. We have had great support from WIT and from our motor carrier partners, Forward Air, Panther and FedEx Custom Critical. They have really embraced this program to support these women-owned businesses,” notes Williams. “This program has continued to move forward even during the freight downturn of 2019 and during the COVID Pandemic of 2020. This program speaks to the fact that we did not want to help women by accident. We have been committed to promoting diversity in the trucking industry, and the 150 Business Challenge is an example of that commitment. “We wanted to highlight the fact that there is a real opportunity

SUPPLY CHAIN

YOUR TRUCK IS WAITING FOR YOU! NEW AND USED EXPEDITERS ■

Both custom and standard sleepers available

■

Refer and dry van options available

N. CHICAGO

Nathan Meyer

260-615-0937 nathanmeyer@truckcountry.com ES head office

TRUCK SALES | EXPERT SERVICE | PARTS | stoops.com

North America Outlook issue 02 | 61

EXPEDITER SERVICES (ES) profits to the truck and our truck dealer of choice, Stoops Freightliner/ Truck Country, fully supports this community.” When the trucks within the ES Community are on the road, the fuel and maintenance networks as well as the support services are in the spotlight. Throughout its history, ES has demonstrated a commitment to walk alongside the participants in their programs to help make the road to success in trucking a little smoother. The company continues to invest in IT platforms to support cashflow analysis, bookkeeping

AT A GLANCE: EXPEDITER SERVICES

Paul, Jeff and Jason in trucking for people to start a business, particularly for those that feel like there’s glass ceilings for them elsewhere,” he adds. “The 150 Business Challenge provides our participants with a stable environment, and we are willing to work with our partners to promote and generate those businesses. The program has grown very well, and we don’t expect it to be a project with an end date.” The participants in the 150 Business Challenge as well as the other programs and support systems offered through Expediter Services are part of what the company calls the “ES Community.” The umbrella created by the ES Community includes the motor carriers as well as a network of vendors and service providers focused on the needs of the owner-operators, independent contractors, and business owners in the community. While establishing the 62 | North America Outlook issue 02

ES Community, Expediter Services has created a strong network that is able to offer discounts on trucking essentials, including, equipment, fuel, maintenance, and insurance, along with other support services that are key to operating a profitable business. “We’ve taken our corporate equipment and buying power and paired it with our community that we service which is quite large,” says Williams. “We’ve gone to our vendors that we’ve been doing business with for years and they have continued to buy in on the fact that our community acts differently than the open market. Whatever the vendor discounts, the truck gets it. “We’ve been able to drive down costs such as insurance, fuel and tires and trucks. This year, we placed an order of over 200 tractors. If one of our owner operators wants to buy or upgrade a truck, they will pay the same price I pay. We do this to drive

Since its founding, ES has worked hard to position itself as the capacity pipeline for the expedited and general trucking sectors with a goal of providing the industry’s best carriers a nonasset based fleet that functions like an asset based fleet. This strategy required establishing strong relationships with the premier carriers in the trucking industry. The company has a history of helping to generate safe, stable, and profitable small businesses. Throughout the years, Expediter Services has worked to develop innovative solutions to help create access to opportunities in trucking focused on making businesses more successful. Its growth as a company has often been evolutionary in nature, but the results of its efforts have sparked a revolution within expediting that is now being carried over to the general trucking market.

SUPPLY CHAIN

support, and data crunching. In addition, ES also continues to invest significantly behind the scenes to keep its company on the cuttingedge and a leader in the industry. The benefits of technology investments within transportation include more robust security, better management tools as well as greater efficiency. “It’s very difficult for a person with a small fleet of trucks to have the money to invest in the analytics to know if their truck is performing properly,” Williams notes. “What we have done is take some tried and true platforms and layered them with our services, tools, and benefits, which provides everyone in our ES Community a competitive advantage in what can be a challenging industry. The importance of partnerships is essential to long-term success, particularly in the supply chain and logistics space. For Williams, it comes back to driving success within the ES Community by utilizing the strength of the overall network the company has developed through the years. “There’s some things that we do in-house very well, there’s others that we prefer to get a vendor to do and then there’s other things that we just have no way of doing,” explains Williams. “Our partnerships inside of the community is what makes this work. It took a few years for everyone that used to be competitors to collaborate

Paul Williams and team successfully and understand they can deliver a better service by working with us to complement one another. The community is built on these relationships and without it, it would fall apart. We’re dependent on strong relationships.” With the importance of leveraging new technology vital to harnessing greater efficiency in operations, Expediter Services is focused on scaling its data drive and empowering people to be proactive instead of running the risk of responding too late. “As we have grown, we are attempting to let IT drive data versus people and having our people drive the relationship and service at the truck level. We want to help people drive difficult decisions, rather than just react to them when they happen,” observes Williams. “At the end of the

day, we are focused on doing our part to position every member of our ES Community for success. “Our success as a company is directly tied to the success of the members of the ES Community,” explains Williams. “We will take the time to ensure that every member of our community is aware of and utilizing all the benefits that ES’s entire network has to offer. As we work with our community members, we’re asking each one of them to help spread the good news of all the ES Advantages – which squarely focuses on the success of each person in the truck.” Looking to the future, Williams confirms that while his company is seeking expansion, he is keen to stress that his existing vendors will not be forgotten. “Our focus is always on the partners and the entire ES Community that helped us get here,” he explains. “While we are looking to add a few motor carriers, we will always ensure our current vendors are well looked after before we look to create other relationships.”

EXPEDITER SERVICES (ES) Tel: 1-877-349-9303 info@expediterservices.com www.essuccessintrucking.com

North America Outlook issue 02 | 63

KNICHEL LOGISTICS

Millions of Miles

Over the past few decades, Knichel Logistics has gone from being a small, family-owned business to a multi-million dollar logistics powerhouse Writer: Dani Redd | Project Manager: Tom Cullum

risty Knichel has always had an entrepreneurial spirit. Even while attending college she was managing two pizza shops, with the intent of purchasing one of them upon graduation. But her father had an alternative suggestion. “He told me that I could set the bar higher for myself, and he knew that my strong work ethic could be directed towards an industry with massive growth potential. He then offered me the opportunity to work with him,” she explains. “At the time, my father was an agent out of Cornerstone Logistics in Memphis (Tennessee), specializing in intermodal freight. I was completely unfamiliar with the logistics industry, but shortly after starting as an intermodal dispatcher, I was hooked. The job was fast paced and I learned quickly from my co-workers. So much so that I began to take on as many roles as I could to learn as much as possible from them,” she adds.

64 | North America Outlook issue 02

After a few years at Cornerstone, Knichel her father joined forces with her brother and sister to form their own logistics company. Knichel Logistics launched in 2003, and after father retired in 2007 Kristy took over as CEO and President of the company, a role she has held ever since. During this time, her passion for the logistics industry has deepened. She describes it as a ‘fluid and dynamic’ space to be working in, which is what contributes to the excitement of being an industry player. “Some days you never really know what you may be encountering when you head into work,” Knichel says. “That seems like an odd thing to say when we are really just handling the movement of things from one place to another, but logistics literally makes the world move and allows us to all live the lives we’re accustomed to. For instance, the transportation industry will be front and centre when the COVID-19 vaccine is finally ready to be distributed to the world.”

SUPPLY CHAIN

North America Outlook issue 02 | 65

KNICHEL LOGISTICS A FAMILY-FOCUSED COMPANY Knichel Logistics began operating within a niche market that consisted of moving rice out of Northern California by rail. This is a market that it continues to serve and excel in. However, over the years it has continued to expand and diversify. In its present incarnation, Knichel Logistics is a multi-award winning firm that has transported goods for some

Q: How important are partner and supplier relationships to the success of your business? KRISTY KNICHEL: “Since Knichel Logistics is a non-assetbased provider of transportation services, meaning that we do not own our own trucks or containers, I cannot stress the importance of partner and supplier relationships enough. The physical assets that we do possess are our employees and our contracts with the Class 1 railroads. “We have spent nearly the past two decades working every day to connect with, build, and cultivate strong partnerships with our carriers. Knowing their preferred routes, helping to address their pain points, and working to hit their targets are just some of the ways that we can be a broker of choice for our carriers. Taking the time to get to know their employees and show appreciation for the roles they play is equally as important as those of our customers. That’s why when I plan business trips to meet with key accounts, I always make sure to visit our carrier partners. Their value to Knichel Logistics cannot be understated.”

66 | North America Outlook issue 02

of America’s largest corporations. It works with everyone from small enterprises with specific needs to Fortune 500 companies, and specializes in intermodal, less-thantruckload, cross-country and crossborder services. “We have moved more than 200,000 containers with 385,000 trucks spanning over 295 million miles over the last five years alone,” the CEO and President explains. Needless to say, the story of Knichel Logistics is one of expansion. The company has expanded from its headquarters in Gibsonia, Pennsylvania, to incorporate satellite offices in Southern California and Ohio, with an agent network extending across the United States and into Canada and Mexico. “My company began with less than 10 employees, the bulk of which were related to me, working out of a tiny office focusing on moving essentially one commodity for a small group of customers,” Knichel says. “Over

Kristy receives the Pittsburgh Business Choice 2018 award

the course of almost 18 years, we’ve grown to roughly 50 employees and are quickly approaching $100 million in revenue. However, the one thing that hasn’t changed is our approach to our employees.” For Knichel Logistics is first and foremost a family business. The CEO and President makes the effort to maintain close ties with all her employees, however long they have been at the company. The company maintains annual traditions to help alleviate stress and develop camaraderie, including outings to baseball games, family holiday parties and Customer Service Week (which includes games, food and prizes to celebrate all employees). “I feel that maintaining a casual office environment, while still maintaining professionalism of course, is a great way to create a level of comfort and a feeling of belonging among our employees – I want everyone to feel as though they are a part of the family. Working in logistics

SUPPLY CHAIN

Intermodal. A Different Type Of Shipping

At Chicago Intermodal, we believe a short-distance trip across the Midwest deserves the same amount of care as a treck to the other side of the country. It shows in the quality of our: Drivers Processes Communication

Demands A Different Type Of Trucking Company

rates@chitrans.com | www.chitrans.com can be an incredibly stressful job, but we still have employees working for us that have been here since day one,” the CEO explains. This friendly, relationship-building approach extends beyond employees to suppliers and customers. Knichel Logistics doesn’t acquire customers the usual way, through cost-based incentives. Instead, it adopts a problem-solving approach – the sales team work with prospective customers to investigate how it can best remedy their current logistics issues, while its account managers and rate analysts work with existing customers to streamline their operations. “There are so many moving parts to be successful in this industry, but establishing solid relationships is the most essential,” Knichel explains. A relationship the CEO is particularly proud of is its partnership with BlueGrace Logistics, established back in 2015. Its LTL

That’s why national brands have come to trust Chicago Intermodal as their house carrier.

(less-than-truckload) division became a franchise of BlueGrace Logistics, enabling customers a larger array of carrier choices with more competitive pricing. Shortly after Knichel Logistics joined forces with BlueGrace, its LTL business tripled – nowadays, they

KNICHEL LOGISTICS IN NUMBERS REVENUE: $80 million MILES TRAVELLED (2015-2020): 295 million CONTAINERS MOVED (2015-2020): 200,000 FULL TIME EMPLOYEES: 50 RAIL CONTAINERS ACCESSED: 90,000

Teamwork Reputation

are approaching a tenfold increase in growth. Since co-founding the business, Knichel has worked tirelessly to ensure its success, in order to pass it onto her children and siblings’ children. “Knichel Logistics has truly been a labour of love. I’ve worked 80-plus hour weeks before becoming President and now nearly nonstop in order to ensure that my company will stand the test of time,” she says. “There have been numerous offers throughout the years by other companies wanting to buy Knichel Logistics, but I’ve resisted each one due to my commitment to the succession of this business and to my employees.”

EMPOWERING WOMEN IN THE INDUSTRY As well as supporting her family, Knichel also hopes her senior position will inspire other women to join the logistics industry. North America Outlook issue 02 | 67

KNICHEL LOGISTICS

“I BELIEVE WOMEN ARE MORE WILLING TO TAKE A CHANCE ON A CAREER PATH THAT MIGHT BE CONSIDERED UNCONVENTIONAL IF THEY SEE OTHER WOMEN BLAZING A TRAIL AHEAD OF THEM” “Because of the challenges I faced being a female leader in a male dominated industry early on in my career, the discomfort of being different stuck with me and has driven me to put myself out there more, to be a voice and hopefully role model to other women starting out in the industry,” she says. Within Knichel Logistics, the majority of managerial positions are occupied by women. The CEO 68 | North America Outlook issue 02

stresses that these have been awarded on merit, rather than gender, and is proud of her employees for excelling in these positions. Knichel has received numerous awards and accolades throughout her career, including the 2020 Influential Woman in Trucking Award, which is awarded by the Women in Trucking Association to women who influence key decisions, and serve as a role model to other women.

“This is a major accomplishment for me, particularly because all of the finalists that were selected are such talented women in the transportation industry and deserve to be recognized for their accomplishments. WIT’s mission is one that I wholeheartedly support and am passionate about, which makes being named their 2020 Influential Woman in Trucking even more amazing,” Knichel proclaims.

SUPPLY CHAIN Another key milestone in her career is being nominated and voted onto the Transport Intermediaries Association’s (TIA) Board of Directors as the Intermodal Logistics Conference Chair. The TIA is integral in shaping the industry, from government regulations to general advocacy, and Knichel explains that her main motivation for becoming involved was to help lend an active voice to women working within the industry. “I believe women are more willing to take a chance on a career path that might be considered unconventional if they see other women blazing a trail ahead of them,” the CEO and President explains. “To be recognized as a top company for women to work for is such an achievement for me because it helps to validate my mission that women are vital to this industry, and that my very own company is successful because of the women (and men!) who work here.”

EXCITING NEW PROJECTS As the conversation draws to a close, Knichel discusses some of the new projects in the pipeline that she is excited about implementing. Although COVID-19 has slowed down the process, the company has succeeded on making progress on enhancing its agent program, which it started a few years ago with a few vetted individuals. “Our objective now is to flesh the program out more thoroughly and work on expanding our agent network geographically and modally,” she says. Another upcoming project is to achieve greater penetration into the government services sector. Knichel Logistics has worked on small governmental projects in the past, and now wants to establish a greater foothold. “We are optimistic that these projects will become significant new

Always striking a positive tone, the company’s CSR initiatives continue to raise funds for good causes revenue streams for Knichel Logistics in the near future,” the CEO says. Knichel has also been hoping to hit a milestone of $100 million in revenue. “When we do finally hit that milestone, I am planning on throwing a party! 2021 might be the year we make this a reality.”

KNICHEL LOGISTICS Tel: 724-449-3300/888-386-7450 info@knichellogistics.com www.knichellogistics.com

North America Outlook issue 02 | 69

KEYTRONIC

he manufacturing industry is in a state of flux. With trade tariffs, COVID19 and new technology all playing a prominent role in the sector over the past few years, it has meant that operating with an agile and resilient approach is essential in order to navigate such disruption. For Craig Gates, President and CEO of Keytronic, he acknowledges how much the industry has changed over the past decade. “It’s very interesting times, particularly in terms of what is going on with China and the rest of the world as well as the coronavirus. It’s a pretty unsettled time in comparison to the last 10-15 years with big changes happening all the time.” Indeed, COVID-19 hit the manufacturing industry hard, among many other sectors, and a government shutdown meant Keytronic had to be agile and adapt. “Now, we’re running all of our office facilities at one third or less capacity and we’ve actually discovered that working remotely has worked out very well,” he reflects. “In terms of the COVID impact on the factory, we had a temporary complete government mandated shutdown of all facilities in Juarez, including ours, which was very costly for the business. In terms of our employees, we’ve had almost zero transmissions of the disease inside the factory and I’m very proud of the work that has been done to ensure our factory is safe.” Keytronic offers a unique mixture of high caliber design, engineering and manufacturing services. Its flexibility and responsiveness to customer needs and ability to provide a comprehensive range of testing services have made Keytronic a leader in the highly-competitive global design and manufacturing services marketplace. In addition to its electronics, metals and assembly capabilities, the organization is one of North America’s largest precision injection molding 70 | North America Outlook issue 02

Mitigating Disruption in Manufacturing Despite global disruption, Craig Gates, President and CEO of Keytronic, reflects on the evolution of the manufacturing industry over the past decade Writer: Sean Galea-Pace | Project Manager: David Knott

MANUFACTURING

China Precision Tooling

15 Years in the industry

Zhuhai CPT Precision Mold Co, LTD. is a one-stop solution provider focusing on precision plastic injection molds, precision die casting molds, precision plastic parts MP and post-processing. It is not only a national high-tech enterprise but also one of a key enterprise about engineering technology center in Zhuhai, Guang Dong province, China. With a plant area of 16000 square meters and 160 employees. For details, please log in our website: www.cpt-mold.com

16,000 $15M+ Square meters

Turnover

160 Employees

Vision To be the worldwide first choice precision plastic tooling and die casting tooling and corresponding parts developing and manufacturing one-stop engineering solutions provider and business partner.

Mission CPT strives to be one of the most competitive precision tooling and manufacturing turnkey engineering solution suppliers in the GuangDong area by: • Developing and effectively utilizing our employees’ potential • Enhancing our organizational capabilities; • Strengthening relations with our customers and suppliers

Plastic Precision Mold • Precision Plastic injection mold • Global level mold design philosophy and processing standard • High precision & Complex structure mold • 2K & 3K over-molding • Insert molding • End of Arm Tools Development • Gages and Fixtures

Die Casting Mold • • • • •

Precision Die casting mold Magnesium &aluminum & Zinc material Trimming mold Air tightness Die casting mould FLOW 3D/MAGMA mold flow analysis

3D printing & Rapid Prototyping • • • • •

3D printing parts 5-axis CNC machining High & low temp. environment test; Vibration test; Metal composition detection.

Plastic Parts Production • • • • • • •

Precision Injection Molding Design to Transfer Expertise Thermoplastic to Exacting Tolerances Insert Molding with Zero-Defect Quality Two-Shot Molding for a Range of Uses CPK/CMK>1.33 Post finish & Subassembly

NO,7,THE 7TH PINGXI ROAD,NANPING S&T PARK ZHUHAI,GUANGDONG.CHINA T: +86-756-3898258 M: +86-13923389458 E: david@cpt-mold.com www.cpt-mold.com

KEYTRONIC

AT A GLANCE: KEYTRONIC Having begun with just one location in 1969 as a keyboard manufacturer, Keytronic has experienced strong growth over the years and now stands as one of the leading design and manufacturing service providers within the industry today. Keytronic has all the capabilities and skills needed to assist in all phases of the product development cycle. The firm can provide comprehensive product design and are renowned for their skills at redesign for product cost reduction. The company’s size enables it to focus on accounts with low to medium volumes and higher flexibility requirements, while its global footprint provides the cost benefits of offshore locations normally associated with only much larger electronic manufacturing service providers.

Craig Gates, President and CEO

74 | North America Outlook issue 02

firms and is capable of molding parts in any size, volume and material including multi-material products. Its volume requirements range from complex, custom products to highvolume standard products. Keytronic performs project management, design, documentation and artwork generation leveraging the latest software technologies to produce the highest quality products. The company is regarded as an industry leader and excels in manufacturing precision parts for the computer, telecommunications, medical, consumer, industrial, automotive, aerospace and military industries. The firm’s capabilities include electro-mechanical, electrical, mechanical and boxbuild assembly by highly skilled and trained employees who participate in certification programs to ensure errorfree assembly processes. Keytronic’s engineering and management teams are continuously improving quality processes to maintain the highest levels of performance. Gates joined the company in 1994 and held a number of executive management positions before stepping into his current role in 2009. With such considerable experience under his belt, Gates believes there are three key factors which sets his organization apart from competitors. “Keytronic is unique in a number of ways. Number one is our breadth of locations, vertical integration and services that we offer in comparison to our size,” he explains. “The second is our unique approach to the entire management structure. We’ve been operating in Mexico for over 40 years, and our structure is designed to take advantage of that experience. “We operate our facilities in China, Mexico and Vietnam as cost centers rather than profit centers, with centralized command and control out of Spokane. This means they’re not distracted by trying to be a profit

Display Logic Display Logic is a flexible and technologically advanced LCD and Touch Manufacturer and a display solution provider. We hold patents in LCD Optical Bonding and have many designs around LCD and Touch interfacing and assembly. Our primary strength is developing specific solutions that exactly match customer needs rather than expecting the customer to change their designs to accommodate what we have available. Additionally, our products are also developed with the supply chain in mind. Our years of experience in the LCD market has guided our principles when sourcing components to ensure the longest product availability and continuous support over the years and the lowest cost to extend product life. When engaging with Keytronic our challenge had to been to assist in continued support of a product that incorporated an LCD that had been recently EOL’d by a major manufacturer. We designed a form, fit and functional replacement that had the same or superior specs to the original and allowed the continuance of the end customers product with no changes to the product or assembly at a time when the lack of a replacement would have been disastrous to the end customers business.

www.displaylogic.com

Standard Displays from1” to 65” Custom Displays to match any requirement Our custom options will save you money Drop-in and Best Fit Replacements for any LCD Extended Product Life Sunlight Readable LCDs All support and interface Electronics Fully Enclosed and Sub-assemblies

www.displaylogic.com sales@displaylogic.com 631-406-1922

KEYTRONIC

Diprenta A company dedicated: To high volume offset printing, specialises in manual and instructional printing, industrial label printing and professional graphic design. With more than 20 years of experience serving the maquiladora industry located in Ciudad Juárez, Chihuahua, Mexico: World-class manufacturing center and binational metropolis, for its direct access to the United States. We are an export company, with permission from the the Secretariat of Economy to exempt VAT (Value Added Tax) on final export products, for better operation and logistics. We have offices in El Paso, Texas.

www.diprenta.com

Keytronic’s assembly line

center and competing with other sites that are owned by Keytronic. This allows our customers to get their products built in two or more of our locations without playing referee, and allows a much easier interface as our customers don’t have to learn different languages. “Thirdly, we have a long history of taking on projects that have a unique or uncommon process that we develop and learn how to implement and manage. Some of our biggest customers have products that no one else could make without spending a year or two learning their manufacturing process. We like products that have a strange process that requires some engineering or development in order to get them into mass production.” With new technology’s influence on the manufacturing space showing no signs of slowing, Gates believes that manufacturers take new innovations for granted. 76 | North America Outlook issue 02

“If you even go back 10 years ago, so much has changed,” he explains. “Our ability to transfer documentation, build prototypes and do business around the world has completely transformed. It’s an overwhelming change that you don’t notice day to day and only when you look back.” The organization focuses on customer communication and building robust supply base relationships. Its extensive range of assembly services provides customers with a complete manufacturing solution. From the best-in-class facilities to engineer supported trained employees and processes, the assembly results in superior manufactured products. Keytronic places great emphasis on its supply chain and Gates affirms that his company’s strategic partners have been a key ingredient to success over the years. “We believe that supply chain is a large percentage of the value that we add to our customers,” he says.

MANUFACTURING

Keytronic’s SMT production line

KEYTRONIC

The firm’s capabilities include electro-mechanical, electrical, mechanical and box-build assembly by highly skilled and trained employees “If there’s a problem with production, it is almost always based on parts, not a process that we control in the factory. It is usually based on lead times and forecasts that have changed. We’ve had a massive focus for years on supply chain and a number of our suppliers are on first name basis. “We have a two-tiered approach, a procurement team here, that does a lot of the supplier qualification and an IPO in our Shanghai plant that does a lot of our sourcing. We have a number of long-lasting partnerships that we’ve had for years.” With talent management a key pillar to Gates’ leadership at Keytronic, he values the importance of staff retention and goes out of his way to 78 | North America Outlook issue 02

Metal shop recognize the contributions that his employees make. “We’re in a service industry and that all comes from people,” he explains. “We are very proud of the longevity of our workforce and we have some employees that have worked for us for over 40 years. There are people in one of our plants that I hired in 1983

In addition to its electronics, metals and assembly capabilities, the organization is one of North America’s largest precision injection molding firms

Keytronic’s molding area

MANUFACTURING

Shanghai, China

Juarez, Mexico

Oakdale, Minnesota Spokane, Washington headquarters

Fayetteville, Arkansas

Corinth, Mississippi

Da Nang, Vietnam

as a 25-year-old that are still there. It’s amazing to have that experience.” Gates believes that a key reason why employees remain committed to Keytronic is due to the diversity of products the firm works on. “It makes it hard to get bored,” he notes. “Every day is different and exciting – there’s fresh challenges all the time. Ultimately, we all have the same end goal of wanting to make the company successful and profitable long-term.”

With the world having undergone unprecedented change and disruption, Gates believes that black swan events such as the COVID-19 pandemic didn’t hurt his business as much as it could have. “It’s a strange situation,” he admits. “COVID didn’t disrupt us too much because 90 percent of our business actually increased but 10 percent was absolutely gutted. Overall, the last three or four years have been a validation of our strategy which is to create a company that can deal with overconcentration in one locality.”

Tel: 509-928-8000 sales@keytronic.com www.keytronic.com

North America Outlook issue 02 | 79

BAR LOUIE

FOOD & DRINK

“Eat. Drink. Be Happy.” T

he beating heart of worldwide culture, the food and beverage industry classically merges our love of dining with socialization, forming the base of a great many gastronomic pastimes that several would consider a necessary requirement to our well-being. However, since the globallyimpacting effects of the COVID-19 pandemic, and a restrictive 2020 through to the present, almost all variations of food and drink venues have slowed or ground to a halt. Restaurants, pubs, bars, and events such as beer festivals have been reduced either partially or completely and have had to adapt to financially survive this unique and challenging period that the globe is facing in this new decade. In light of this challenge, food and drink venues and companies have altered their function in a variety of ways. Some have entered a period of “financial hibernation” since the offset - in many cases a necessity for the survival of the business. Others have switched to

The food and beverage industry has been one of the worst hit by the impact of COVID-19. We spoke to Tom Fricke, CEO of Bar Louie, about the company’s community-centric services and initiatives during the difficult pandemic period Writer: Marcus Kääpä | Project Manager: Sam Love

Tom Fricke, CEO

investing in delivery services and or collection systems through which customers can enjoy their favourite gastro-experiences in a safe manner. And a percentage of companies have even turned to aiding their local communities and charities, often out of their own pockets, trying their best to maintain positivity during this difficult period. These are some of the organizations and businesses putting people first. Bar Louie is one such company. The original Gastrobar in the US, Bar Louie was founded in downtown Chicago in 1990 and has grown to over 70 locations across more than 20 states. Founded on the tenets of “Eat. Drink. Be Happy.” Bar Louie provides great drinks, chef-inspired food, and brilliant service in a comfortable and safe atmosphere where people are encouraged to relax and hang out. The company is best known for its signature handcrafted martinis and cocktails, shareable appetizers, and craft burgers and sandwiches. North America Outlook issue 02 | 81

BAR LOUIE

Fourth Bar Louie Partners with Fourth for Workforce Technology and Services Simplifying operations with a single provider for HR & Payroll services, labor management, and BOH technology enables teams to spend time on growing the business instead of manually connecting performance data from disparate systems. With unpredictable consumer demand and poor visibility into your data, you risk: • Increasing overhead costs • Reactive adjustments to operations • Compliance challenges and mistakes

Bar Louie, Granger, Indiana “Bar Louie appeals to a wide range of customers including Gen X, Gen Z, Boomers, and Millennials. We genuinely welcome all people, and our communities are reflected in who we hire and who visits our bars,” begins Tom Fricke, CEO of the company. “Even though we are a chain like many of our competitors, what differentiates us is our ability to meld into the community. With Bar Louie, no two locations are going to be exactly the same. We listen to our neighborhoods and let them shape us, not the other way around. It’s not always the easiest way to do things, but it’s the right way because if we’re not going to give people something special, then why bother at all?” This notion of community and people-centric business is one of Bar Louie’s primary values – a mission that it strives to incorporate across the board, allowing every guest to feel at home with each individual and unique experience.

PAST TO THE PRESENT Fricke joined Bar Louie in 2017. After graduating from Stanford University School of Business, and the United 82 | North America Outlook issue 02

“AS COVID-19 BEGAN TO IMPACT SALES AND TRAFFIC, WE AGGRESSIVELY FOLLOWED OUR GUESTS INTO THEIR HOMES BY LEVERAGING DIGITAL MARKETING; ADDING THIRD-PARTY DELIVERY AND ONLINE ORDERING” - STEPHANIE DAVIDSON, CMO, BAR LOUIE, TEXAS States Naval Academy (with a BS in Mechanical Engineering), he went on to spend half a decade in military service under the Office of Naval Intelligence as a Naval Officer. Following this, Fricke joined the food and drink industry working for PepsiCo in strategic planning, then later worked for HMS Host as President and CEO. Today, Fricke has proudly worked as the CEO of Bar Louie for almost three and a half years.

Leveraging a single provider for your end-to-end business needs will keep your data connected, operations profitable and consistently compliant. Visit fourth.com to learn more

Tyson Foods At Tyson Foods, we’re not only ready for tomorrow, we’re leading the way. As values and behaviors around food have changed, so have we. Today, we’re innovators uniquely positioned to reshape what it means to feed our world. Today, we have the fastest growing portfolio of protein-centric brands and offer greater transparency and sustainability in everything we do. Our purpose is to feed a growing world and continually raise expectations for how much good food can do. • Tyson® • Jimmy Dean® • Hillshire Farm® • Ball Park® • State Fair® • Wright® • ibp® • Aidell’s® • Original Philly®

tysonfoodservice.com

FOOD & DRINK

Tyson Foods is proud of our partnership with Bar Louie who has set the gastrobar high with its expertly crafted food and drink. As one of the world’s largest protein suppliers, it’s an honor to provide the original gastrobar, Bar Louie, with high-quality protein products—from one original to another. For 85 years, Tyson Foods has provided product solutions that drive business and meet the ever-changing challenges of foodservice operators. tysonfoodservice.com

©/™/® Tyson Foods, Inc.

North America Outlook issue 02 | 83

BAR LOUIE

LOCATIONS Bar Louie venues can be found all over the US: • ARKANSAS • ARIZONA • CALIFORNIA • COLORADO • FLORIDA • IOWA • ILLINOIS • INDIANA • KENTUCKY • MASSACHUSETTS • MARYLAND • MICHIGAN • MISSOURI • NORTH CAROLINA • NEW JERSEY • OHIO • PENNSYLVANIA • SOUTH CAROLINA • TENNESSEE • TEXAS • VIRGINIA • WISCONSIN

84 | North America Outlook issue 02

However, Bar Louie is one of the many businesses that have been rocked by the events of 2020. “The industry has been hit hard during the COVID-19 pandemic,” Fricke tells us. “Many bars and restaurants, including Bar Louie, have pivoted their business model to drive sales and traffic through new channels and innovative offerings to the consumer. However, the hospitality industry continues to be an exciting space to work in. Even with what may seem to be insurmountable challenges, the

industry is resilient and will continue to rise to meet the needs of the people in their communities.” At the start of the pandemic, the company decided to take a pause in the industry as an opportunity to streamline processes and make significant upgrades to its operations and technological systems to support both its corporate and franchise locations. “We are leveraging these new tools to fuel growth in food sales even while overall guest traffic is suppressed due to COVID-19. We used this opportunity to transform our business,” Fricke tells us. Currently, Bar Louie has introduced a variety of initiatives to best interact and cater to the needs of its customers in times such as these.

COMMUNITY-CENTRIC EFFORTS In order to continue community engagement and promote the business during the pandemic period, Bar Louie invested in aspects of service with a focus on off-premise sales – an element of business that continued to be a pivotal part of the company’s sales. On top of charitable initiatives such as Louie Loves and Cocktails for a Cause, the company crafted a virtual

FOOD & DRINK

AT A GLANCE: COCKTAILS FOR A CAUSE The new Cocktails for a Cause initiative is supporting the US Bartenders’ Guild National Charity Foundation. For every Ruby & Rose cocktail sold through March, Bar Louie will donate $1 to the USBG Foundation’s Bartender Emergency Assistance Program. And if you aren’t in the mood for a refreshing cocktail with Ketel One Botanical Grapefruit & Rose vodka, Aperol, simple syrup, lemon, Fever Tree Grapefruit Soda, grapefruit, and black Hawaiian sea salt, you can also donate during order checkout, in-store and online. Bar Louie was built around its neighbors and allowing them to shape the business, not the other way around. Cocktail for a Cause is supported through the national fundraising program Louie Loves, putting the ‘fun’ in fundraising and giving back to our local communities. Whether you’re looking for good food, a refreshing cocktail, or a way to give back, Bar Louie has you covered.

“AS A GASTROBAR, WE GET A CHANCE TO SERVE FOOD TO GUESTS EVERY DAY, BUT THERE ARE MANY PEOPLE IN OUR COMMUNITIES THAT ARE UNABLE TO AFFORD MEALS FOR THEIR FAMILY. NOW MORE THAN EVER, AND WITH SO MUCH UNCERTAINTY, WE KNEW THAT WE HAD AN OBLIGATION TO HELP THOSE IN NEED” - STEVE MADONNA, CHEF AT BAR LOUIE, CHICAGO wings and sandwich brand called Sweet Lou’s - Fricke elaborates. “From stacked burgers and spicy chicken, to wings with seven homemade sauces and tons of tots, this virtual brand has provided incremental off-premise sales and was launched in all corporate and franchise locations with few exceptions as of January 2021. “With the success we have seen in Sweet Lou’s, we have introduced our second virtual brand, Macs N Stacks, that will serve gourmet grilled cheese and mac ‘n’ cheese. This is currently being piloted in five locations and is on track to roll across all our locations in the near future. “Even with the strains that COVID19 brought on our business and this industry, as soon as we were able to, we wanted to start giving back to the communities that we serve and support those people affected by COVID-19.” As an arm of Bar Louie’s charitable giveback program, Louie Loves Cocktails for a Cause offers a new way for guests to give back to their community. Bar Louie partners with a different national and local charitable companies each quarter throughout the year to donate $1 of each featured cocktail sold during that time period directly to that organization “Late in the fourth quarter of 2020, we launched our first partnership with No Kid Hungry with a minimum pledge of $75,000 to help fight childhood hunger,” Fricke informs us.

“Our following partnership started in January where we will partner with the US Bartenders’ Guild Foundation’s Bartender Emergency Assistance Program and we featured a new cocktail, Ruby and Rose.”

2021 AND BEYOND Bar Louie remains a key player in the food and drink industry while maintaining a sense of communitycentric service, placing its customers above all else to provide great food and keep-up positivity during a challenging period of time. Its charity initiatives go above and beyond this, aiding various organizations wherever possible, and the company awaits to resume on-site venue service when possible and safe to do so. With the rollout of the COVID vaccines in full swing, it is only a matter of time until Bar Louie revives its classically social and lively environments. In the meantime, the business has focused much internal investment on improving its digital operations and online ordering and service – an aspect of business that will continue into the future.

Tel: 214-845-4800 marketing@barlouie.com www.barlouie.com

North America Outlook issue 02 | 85

TNI KING COFFEE

Le Hoang Diep Thao, CEO of Trung Nguyen, the company that owns TNI King Coffee

FOOD & DRINK

Building a Global Coffee Empire The story behind the rise of TNI King Coffee, a Vietnamese coffee brand and café franchise with ambitious plans at home and abroad Writer: Sean Galea-Pace | Project Manager: Donovan Smith

PART 1 – A PERSONAL STORY “Coffee has always brought me endless joy, creativity and passion,” gleams Le Hoang Diep Thao, Vietnamese entrepreneur and Founder and CEO of Trung Nguyen, the company which owns her latest venture – TNI King Coffee. It took two decades of building up her first enterprise before the decision was made to launch a second startup, the lesson very much being the need to master the fundamentals of business, and coffee. “With Trung Nguyen, everything starts from the most basic things,” Mrs Thao says. “You learn about coffee beans, grasp seasonal prices, learn how to process and package finished products, self-manage with the first employees in the small coffee factory. Then, you gradually reach further, find ways to open stores and develop a distribution system according to international standards. “As for King Coffee, since I have accumulated more than 20 years of experience, when starting a business,

I chose to immediately set up a standards system from the beginning – a modern factory with international certifications, systematic distribution regularity, and diverse products to satisfy all the demands of enjoying coffee in modern society. However, you cannot forget to still pay attention to the smallest details towards perfection.” Mrs Thao’s journey to this point has not been without its challenges. The entrepreneur admits that there have been ups and downs along the way, but acknowledges the impossibility of establishing and growing a business without having to embrace failures at some stage. Coffee, she points out, has played its own part. “I think the cups of coffee I drink every day have helped me to always renew myself in such creative ways,” Mrs Thao muses. “There have been times when it’s so difficult that you want to give up – there are times when I’m tired and want to listen to many loving people telling me to rest.”

North America Outlook issue 02 | 87

TNI KING COFFEE

AN INTRODUCTION TO TNI KING COFFEE TNI King Coffee was launched in 2016 and represents Trung Nguyen’s premium coffee brand. The brand quickly grew its presence out of Vietnam and into the likes of Korea and the US, its overarching aim being to become a Vietnamese coffee brand that is favoured all around the world. Today, its various coffee products are present in more than 60 countries thanks to the hard work of more than 3,000 company employees. VISION: To become the world’s leading Vietnamese F&B corporation. MISSION: Commit to bringing Vietnamese brands to the world equating with other multinational corporations. CORE VALUES: High aspiration; constant creativity and innovation; outstanding execution; value creation and sustainable development; social responsibility.

But these moments have only been fleeting ones. What has truly kept Mrs Thao motivated throughout her journey is the network of people who depend on her company’s success to make their own livings – be they employees and their families or thousands of farming households who supply Trung Nguyen and TNI King Coffee. Ms Thao adds: “This is the value of entrepreneurship, I think. Once a certain milestone is reached, enriching yourself is not the ultimate goal. 88 | North America Outlook issue 02

To create jobs, to enrich society, to be a refuge for the community... those are the qualities that make an entrepreneur.” Her altruistic approach has not gone unnoticed in Vietnam, and indeed the world. In 2020 Mrs Thao was recognized with the Most Admired CEO Award 2020 in the Food & Beverage sector from Global Brands Magazine (GBM). It is an extraordinary accolade, one which the entrepreneur hopes

will inspire a new wave of young businesspeople to enter the industry and forge a living for themselves, especially young Vietnamese women. “Youth gives people many opportunities,” Mrs Thao continues. “They learn, stumble, fail, and start over. Even though they had tasted the pain, they still had the strength to move on. I think if someone knows their own self and knows how to make a meaningful use of their youth, that person will surely succeed.”

FOOD & DRINK PART 2 - A GLOBAL FMCG OPERATION Coffee has been a mainstay and hallmark of Vietnam for hundreds of years. Already a sizable industry, Mrs Thao is a firm believer in the potential to bring billions more dollars of value to the country’s economy and people, and determined to make sure TNI King Coffee plays a leading role. The CEO is understandably ambitious. Through executing a global growth strategy, she wants to develop the business to become one of the top 10 coffee brands in the Asian market, as well as a key stakeholder in the Vietnamese agri sector. “I chose to develop King Coffee from overseas markets,” Mrs Thao says. “We appeared first in the US market, then through other major

international markets such as Korea, China and Singapore before concentrating on our home country. Within a year, King’s distribution network covered all 63 provinces and cities in Vietnam thanks to our international quality products and reputation from overseas markets. “In the near future, I will once again promote Vietnamese coffee in the international market. Coffee will become a strategic commodity of Vietnam and promote alignment between Vietnamese brands in this sector – with that, we will become a global power in the coffee world.” Technology has and will continue to play its part in achieving this worldly ambition. Each of its product lines, from instant and ground to roasted and new generation RTD coffee, relies on

innovative technological solutions to produce. The latter product, for instance, was created using pioneering ASEPTIC sterile cold extraction technology. “Additionally, based on modern technology, I believe we absolutely can help our Vietnamese coffee industry by educating farmers about water recycling and waste-reduction techniques, installing advanced drip irrigation systems in farms that use too much water, providing better services, fair-trade solutions and so on,” Mrs Thao adds. “My constant motivation is how I can develop Vietnam’s coffee industry, and help farmers get rich and be proud of their own achievements. Our products are consumed and loved all over the world. From there, there can be benefit to the nation and the community.”

North America Outlook issue 02 | 89

TNI KING COFFEE doing to support Vietnamese women through the Women Can Do program. “Women Can Do is an 4.0 ecosystem in which we exchange experiences, knowledge and learn from each other,” Mrs Thao explains. “In cooperation with the Vietnamese Women’s Union, Women Can Do connects 22 million women and aims to support 100,000 women in starting their business. “The goal of setting up 100,000 SMEs after the COVID epidemic crisis is considered the best solution for an early economic recovery and will create new jobs and

PART 3 - ACCELERATING HIGH GROWTH IN NEW TERRITORIES As Vietnam is one of the best antiepidemic countries in the world, disease has also helped King Coffee actively seek orders from other markets by developing a network of personal sales agents worldwide. In just 12 months, King Coffee’s market doubled its export numbers from 60 countries up to 120 countries. “For King Coffee to enter the “always crowded” international market, I was determined that there is no common strategy for all markets, “think global and act local”. I will have a different strategy in accordance with the trends, tastes and needs of coffee in each locality depending on each country and region.” In 2020, TNI King Coffee was recognized as the fastest growing global coffee brand in Vietnam’s food and beverage industry. “This is reflected in our growth — expanding our overseas market share up to 200 percent,” she says. “Particularly in the Russian market, our turnover reached 350 percent. These are very encouraging numbers amid the Covid volatility.” “Coffee is the quintessence that stimulates the brain, promotes creativity and discovery, maintains alertness for high productivity,” explains Mrs Thao. “That is the 90 | North America Outlook issue 02

same page of those who come to coffee, need coffee, and love coffee. Coffee also creates its own culture of enjoyment, a resonance for travel and connection. That’s where my customers are.”

PART 4 – A PILLAR OF THE COMMUNITY Indeed, inspiring society is the endgame for Mrs Thao and TNI King Coffee. All business activities are geared towards this end, and away from commercial operations the company engages in a tremendous array of dedicated corporate social responsibility programs. This includes the Happy Farmers campaign, launched in response to the challenges brought about by the drought, floods and COVID-19 during the 2019-2020 harvest season. Farmers also suffer from relatively low coffee prices, another issue this initiative aims to reverse. “The project encompasses our desire to help the people of the Central Highlands learn new techniques in production, stabilize farming and ensure social security, subsidise the purchase price, and increase the economic benefits of the coffee farmer segment,” Mrs Thao says. The CEO is also extremely proud of the work she and the company are

reduce unemployment. The female participants will be starting with us from the smallest of origins, and gradually we will grow and become bigger together. “When women have their jobs and are financially independent, they take control of their lives. That is what I am most passionate about.” And this prompts Mrs Thao to offer arguably her most important piece of advice. She ends the conversation by revealing what has guided her to this

FOOD & DRINK point in her career. The entrepreneur concludes: “Let perseverance overcome adversity. In life, the thing that never changes is our love for family, parents and children. No-one can predict what events will happen in their family. No matter what happens, that is, before the changes, if we keep in our hearts an unchanging love, we will know what we need to do to protect the family, and the people who we love most.”

PART 5 – EXPANDING CAFÉ CHAIN STORES TO THE UNITED STATES AND BEYOND Another critical part of the TNI King Coffee strategy resides in its café chain expansion plans. Before the disruption caused by the COVID-19 pandemic, the Vietnamese coffee shop industry was growing strongly, a trend which Mrs Thao is eager to capitalize on. Indeed, the aim once more is to become a global café brand, and it is a journey which has made a promising start. In just two years since launching, the network has expanded to 50 stores in three countries which cover four different styles and concepts. This includes mega flagship concepts ranging from two storeys to four storeys large scale luxury café set-up. However, 2020 through to 2021 has brought an unprecedented challenge to the hospitality sector, but it is one that Mrs Thao is determined to overcome without having to sacrifice the incomes of any employees. “This year, the COVID-19 pandemic is a sad picture with a double crisis affecting all aspects of our life,” she explains. “It has forced everyone to live differently, learn differently, think differently and play differently. We can’t change the direction of the wind, but we can adjust the sails to always lead the boat to its destination. “In my company, I guarantee that all of my employees still keep their jobs and continue to contribute to King Coffee. Besides, we are going to join

a project with the Vietnam Coffee and Cocoa Association to build up the national strategies to change the new situation and increase the worthy advantages of Vietnamese coffee. “King Coffee continues to create smarter and faster market approaches to seize opportunities to move forward sustainably. We want to inspire society to get stronger after the pandemic.” In March 2021, TNI King Coffee will officially open its second overseas store and first flagship store in United States. Situated in Gardenwalk Anaheim, California, the King Coffee store is situated near an iconic landmark in the state, Disneyland. Despite the pandemic situation, Mrs Thao is convinced that the market

is ready to pick up where it has left before. The King Coffee café in Anaheim, United States, has been in the planning process for over a year and after the opening, the brand plans to expand more stores in the North America through its own network as well as via franchising.

TNI KING COFFEE Tel: +84 28 3526 0196 www.kingcoffeenetwork.com

North America Outlook issue 02 | 91

ELM COMPANIES

A Utility Transformation With evolution at the fore, executives at ELM Companies discuss the company’s journey over the past two decades Writer: Sean Galea-Pace | Project Manager: David Knott

volution. Without it, a company would stagnate. Its importance, particularly in 2021 on the back of a disruptive year for most firms, is key. And despite COVID-19’s unwelcome introduction, Josh Hinrichs, President of ELM Companies, has seen tremendous growth in business over the past year. He has served in his 92 | North America Outlook issue 02

Josh Hinrichs

current position since 2013 while seeing the organization emerge as a renowned player in the energy and utilities industry during that time. “The business has certainly grown tremendously. In fact, it has more than tripled in size from when I started in 2001,” he explains. “The utilities that we serve and work with have changed over the years

ENERGY & UTILITIES

and have become more demanding in the services and solutions they require. This has provided us with an opportunity to differentiate ourselves within the sector and heightened our ability to broaden product and service offerings while helping our clients achieve their goals.” Although Hinrichs believes that the number of rivals in the utility

services space over the past 20 years has diminished, the competition for business from those still active in the space remains fierce. “In the utilities services industry, there’s been a lot of consolidation,” affirms Hinrichs. “When I first joined, we had lots of competitors operating in the same space in damage prevention and utility service work in

general. That space has really shrunk in terms of the number of companies operating within it, but the level of competitiveness remains the same.” ELM operates a number of flagship products, such as the LaunchPoint™ Logistics and Mobility software, FieldSight™ Control Systems, MicroGrid and Energy Storage Packages. North America Outlook issue 02 | 93

LEAD YOUR FLEET INTO THE FUTURE In an increasingly crowded world, Shell is evolving to help people and goods move around more cleanly and efficiently. To support your fleet as it adapts to new technologies and fuel types, Shell Fleet Solutions provides a range of innovative products and mobility services. Shell Fleet Navigator Card

Shell Fleet Maintenance Hub

Alternative Fuels

Shell Telematics

Greenlots EV Charging Solutions

Email us at fleetsolutions@shell.com

to learn how we can help prepare your fleet for the future. Shell® and Shell Fleet Navigator® are trademarks of Shell Trademark Management B.V. 2020 © Shell Trademark Management B.V. reserves all rights not expressly granted herein.

SOLUTIONS FOR YOUR ENERGY NEEDS TODAY AND IN THE FUTURE. Shell can keep your business moving with sustainable energy solutions. With products like electricity, hydrogen, and biofuels, Shell can help design a sustainable plan for any business. Carbon Offsets Compensate your carbon emissions

Sonnen Powering your life with smart, clean and safe home energy systems

Shell Telematics Shell Telematics provides actionable insights into how your fleet operates and can help decrease your fleet's total cost of ownership

TapUp TapUp mobile refuelling saves time and money and improves environmental credentials by delivering cleaner fuels New Fuels Biofuels to fuel your fleet

Distributed Energies & Shell Energy Inside Providing local energy assets which connect customers to cleaner, more affordable and more resilient energy

Fleet Solutions One partner for all your fleet mobility solutions Greenlots Providing EV drivers with easy-to-use smart charging solutions on the go, at business locations and scale residential sites

Hydrogen Clean, zero CO2, fuel for fleets, cars and buses

Shell Energy & MP2 More efficient and cleaner energy solutions for business

Email us at fleetsolutions@shell.com to start preparing your business for the future.

ELM COMPANIES ELM FieldSight’s Microgrid site controller uses best-in-class hardware in combination with sophisticated backend architecture and communication interfaces to enable efficient monitor and control of microgrid assets through a single portal. Its efficient microgrid solutions allow customers to maximize their green energy consumption and resiliency needs. Whereas, LaunchPoint’s CaaS IoT solution in the industrial, manufacturing and food industries utilizes the Dell IoT Edge Gateway powered by LaunchPoint Edge Software and the LaunchPoint Cloud to enable automated compliance, monitoring and reporting. “We are best described as a technology company that provides compliance products and services across a wide spectrum,” explains Hinrichs. “Within that technology spectrum, FieldSight is one vertical and LaunchPoint is another. Within LaunchPoint, it’s the logistics, mobile data collection and compliance monitoring side of the house, while with FieldSight it is microgrid and energy storage.” Hinrichs believes that each of the company’s flagship products complement the other well. “The reason they work so well is that the touchpoints are fantastic,” he explains. “There are common clients within the utility space, and both product lines penetrate many other markets in North America and worldwide.” “Every utility provider needs compliance services. To provide them, you must have a good mobile platform to manage the workforce, workload and documentation of the work that we’re conducting. Being able to produce that documentation to regulatory agencies that require it is key to the utility clients we serve.” Concerning Microgrid and Energy Storage products, ELM does a 96 | North America Outlook issue 02

ELM COMPANIES: SERVICES UTILITIES COMPLIANCE SERVICES ELM’s Utility Service offerings have been provided to firms that source their locating, leak survey and other compliance needs to companies that understand the importance of the task at hand and are willing to accept responsibility of protecting the infrastructure and public. ELM’s clients trust the organization to provide high-level, compliance related services that enable them to grow steadily over the years. INSURANCE PRODUCTS AND SERVICES Since 2004, ELM Insurance Services has been a specialty construction and environmental insurance brokerage providing comprehensive risk management packages nationwide. The organization is continuously working with clients to develop innovative solutions for complex construction risks, environmental sites, healthcare facilities, manufacturing, emerging technology, clean energy, microgrid, and distributed energy storage and compliance as service offerings. FIELDSIGHT PRODUCTS AND SERVICES ELM FieldSight is a line of products that has been created to provide MicroGrid Site Controllers and Energy Storage Systems that are designed to operate across a large spectrum from in-home applications to very large commercial and industrial sites. LAUNCHPOINT PRODUCTS AND SERVICES In 2004, ELM created its own in-house work management system known as LaunchPoint. Since then, LaunchPoint has become a suite of products created to connect field related data & events to the entire organization. Clients can use the mobile applications for worker interface or continuous monitoring products to interface with devices and sensors, which makes interface, data collection, reporting and decision-making quicker and more efficient.

tremendous amount of work behind the meter but they are starting to see an increasing demand for integrated solutions into the utility infrastructure

as they utilize greener energy products more and look to localize energy storage as a grid resiliency strategy.

ransport is essential to modern living. It drives economic growth, allowing countries to trade goods and communities to connect with one another. In an increasingly crowded world, the energy industry is innovating to help people and goods move around more cleanly and efficiently. At Shell, we see a variety of fuels and engines developing; some will be suited to short journeys within urban areas, while others could be better for longer journeys between cities. A range of lowand zero-emission options are available today, but each are at different stages of readiness for commercial use. News of the rapid and far-reaching changes transforming the commercial fleet industry is hard to escape. In twenty years’ time, the commercial fleet landscape is going to be almost completely unrecognizable to anyone working in the industry today. With batteries able to power vehicles for long distance still in development, fleet managers will have to find the right mix of alternative fuels for their organization’s needs.

What managers may not appreciate, is that cost is a lesser issue than they imagine it to be. A 2017 study by UBS found that the total cost of ownership for an electric vehicle in Europe would be no more than for a standard petrol or diesel vehicle by 2018. China will reach cost parity by 2023 and the USA by 2025. Research by Bloomberg indicates that electric vehicles will even be cheaper to buy within seven years or less. Sustainability at Shell means providing more and cleaner energy solutions in a responsible way. Only by creating greater fuel efficiency and adopting a mix of cleaner fuels can we, as a society, hope to decarbonize our increasingly energy-hungry economies. By the same token, only with a range of fuels can fleet managers meet the needs of all users, from short-hop urban delivery drivers to long-haul heavy-goods haulers. Businesses that start future-proofing their fleets now will be able to integrate new technologies and fuel types faster than their competitors. To learn how Shell can prepare your fleet for today and the future, contact Shell at fleetsolutions@ shell.com.

Most fleet managers recognize the need to adapt to the energy challenge, reduce the environmental impact of their operations, and adopt new, environmentally friendly fuels. In fact, Shell’s survey of fleet managers found that 28 percent would introduce electric vehicles to their fleets today if cost was no option. A further 26 percent would adopt vehicles powered by other alternative fuels.

fleetsolutions@shell.com

ELM COMPANIES

Lee Graves, Chairman and Founder “That’s where the overlap is nice because having that diverse product stream enables us to become less of a commodity-based service provider and more of a strategic service and product provider to the utility. We’re more of a one-stop shop than some of our competitors are.” Since its launch in 2007, ELM FieldSight has evolved its systems and undergone a significant transformation during that time. According to Lee Graves, ELM Chairman and Founder, “In the beginning our focus was offering control to behind the meter microgrids that sit on the customer’s side of the utility meter.” “It has changed tremendously under the leadership of our COO, Aron Bowman and his team,” Graves explains. According to Bowman, “Our original offering was focused on back-up generator control and monitoring. At the time, the focus was primarily on helping the owners of back-up generators ensure they were complying with EPA Air Emissions Standards. There was a solution we offered that allowed those back-up generation systems to improve air emissions outputs and turn them from emergency back-up generation to demand response generation. “In other words, if a utility was 98 | North America Outlook issue 02

having a rolling brown-out and our clients needed to take themselves off the grid for a few hours at a time, the emissions coming out of their generators were good enough where that was possible. In terms of compliance, our clients had to prove to the EPA that their generator emissions were compliant during the entire run cycle, so we would monitor and capture that information and report back to the owner of the asset and EPA. That was where Compliance as a Service (CaaS) started for us.” Now, ELM FieldSight operates in a far more advanced way and Bowman believes it has been quite a journey over the past 14 years. “Today, we build a very Aron Bowman, COO, ELM FieldSight robust microgrid controller capable of handling complete microgrid functionality,” he explains. “This means we are capable of controlling the generator, the green energy supply and, of course, our energy storage packages that contain the batteries and other equipment necessary to provide a continuous and reliable power source. Our controller is also capable of interfacing with a utility or functioning completely independent of the grid by utilizing very sophisticated algorithms that allow the solution to be infinitely flexible and run indefinitely.” With COVID-19 continuing to cause disruption the world over, ELM leveraged its LaunchPoint platform to develop a COVID system screening app that has proven useful to school systems, athletic training facilities and youth service organizations across North America. “It’s been vital because it has essentially allowed them to remain open,” affirms Hinrichs. “It has put the power of tracking COVID symptoms easily into the hands of the students, athletes,

Payday Payday Takes Your Business to the Next Level Unpredictable seasons, benefit options, compliance policies and payroll management can make growing your business overwhelming. But despite all of these obstacles, your business doesn’t just have to survive, it can flourish and thrive! That’s where Payday—a professional employer organization—comes in. From providing comprehensive employee benefits packages, to HR compliance, payroll administration, workers’ compensation and safety and risk management services, Payday focuses on all the complicated areas so you can focus on growing your business. In fact, research shows that businesses who partner with Payday: • Grow 7–9 percent faster. • Lower turnover by 10–14 percent. • Lower business failure up to 50 percent. Here’s how we do it: 1. Reduce your costs. We help you contain and reduce your overall employee-related administrative costs. 2. Transfer your risks. We handle the risks of many employment-related exposures. 3. Expand your HR team. Improve compliance and gain a team of experts in HR, payroll, benefits, safety and workers’ compensation. 4. Strengthen your culture. With simplified processes and employee training, you’ll have happier employees, which means less turnover. Whether you’re a small, medium or large business, Payday provides Fortune-500 level benefits, payroll and HR services. And we save you time and money while doing it! See how much we can save you. Request your FREE price quote at paydayhr.com/quote or call 850.912.8884.

paydayhr.com

Through Fortune-500 level beneﬁts, payroll and HR services, we eliminate the complexities of growing your business.

HR • Workers’ Comp • Safety & Risk • Beneﬁts • Payroll

Corporate Headquarters:

4490 North W Street, Pensacola, FL 32505

Web: paydayhr.com

Phone: 850.912.8884

ELM COMPANIES parents and teachers. The same model we use within our work management products were utilized here. We enable users to securely collect symptom data in a mobile setting and send it to the cloud. From there the school or organization can easily produce reports that demonstrate compliance with COVID protocols to the county Health Department, enabling them to remain open.” To most companies, the importance of developing key, strategic supplier partnerships is essential to sustained success. For Hinrichs, it’s a statement he truly believes and admits his firm couldn’t operate without them. “They’re extremely important,” says Hinrichs. “Looking at our service sector, we’ve got almost 1,000 vehicles across North America. We rely heavily on our partnership with John Robinson and his team at Shell Fleet Solutions to keep those vehicles moving every day. “We are pleased to be supporting ELM through our Fleet Navigator Program. Our goal at Shell Fleet Solutions is to build long lasting partnerships, with companies like

100 | North America Outlook issue 02

ELM, who see the value of working together to make us both better and stronger as a result! The relationship has strengthened over time and we are positioned very well to support their continued growth in the coming years,” says John Robinson, Midwest Region Manager for Shell Fleet Solutions. “We also have a number of locating supply vendors that have been operating in a just-in-time environment during the past year, particularly in terms of shipping.

We’ve been fortunate to have an excellent procurement department to stay on top of things and we are grateful to those suppliers who’ve partnered with us to keep things rolling during that time.” In particular, Hinrichs points to his company’s relationship with Vivax-Metrotech as being influential and believes the relationship and understanding he has with the company’s President, Mark Drew, is unique and unlike anything he has experienced in the industry before. “We rely heavily on Vivax for various pieces of equipment to support our service offerings. One of them is Vivax’s underground locator vLoc3-Pro series,” he explains. “The transparency that we have with them is fantastic. They have been accommodating in so many different ways. They listen to us and our requirements and the level of trust and rapport that we have is unique.” “What is also important to us is the technological advancement, such as RTK GNSS integration, that is being integrated into their equipment, allowing us to develop tools for the increased focus of improving mapping of underground utilities across North America. Vivax Metrotech is critical to our ability to provide traditional locate services and enhance our ability to differentiate

ENERGY & UTILITIES

from the competition as we continue to develop specialized service offerings.” Over the next 18 months, Hinrichs has outlined key priorities that his firm is targeting. “We really have three targets in mind over the next couple of years,” he explains. “We want to expand our microgrid and energy storage business. We know there is going to be a dramatic increase in demand for renewable energy sources and along with that, there will be a need for microgrid controllers and energy storage systems. We strongly believe the packages that we provide in the commercial, industrial, utility and residential spaces are among the best available. We are currently building another manufacturing facility near Dallas, TX to dramatically increase production capacity and meet increasing demand.”

MicroGrid Site Controllers and Energy Storage Systems are designed to operate across a large spectrum from in-home applications to very large commercial/industrial sites “We also want to focus on growing our software sales within LaunchPoint. Work management and logistics becomes more important each year and our specialized apps make mobile interface and data collection more affordable and efficient. Our goal is to expand product utilization in the construction industry and continue crossover into other service provider markets as well. If a company has mobile workers who complete service orders, we have a solution to support them. “And finally, in the utility service space, we are going to continue expansion of our diversified offerings. Our bread and butter is locating and damage prevention services but we intend to continue expanding our

market share of other compliance services, with a specific focus on gas leak survey and sophisticated mapping services. We have some very large clients out there and they have a variety of compliance services needs. We intend to continue leveraging our in-house technology to offer a wider and more strategic range of services to these companies.”

ELM COMPANIES Tel: 888-728-9343 info@elmllc.com www.elmllc.com

North America Outlook issue 02 | 101

SUBTERRA RENEWABLES

The Sustainability

SOLUTION Greener building solutions are on the rise. We spoke to Matthew Tokarik, Vice President, and Jessica Rowe Bald, Vice President of Sales, at Subterra Renewables, about the firm answering the demand in the North American energy and construction sector Writer: Marcus Kääpä | Project Manager: David Knott

102 | North America Outlook issue 02

ENERGY & UTILITIES

he topic of sustainability has grown substantially in the last two decades. From general conversation between friends and family about recycling waste or walking during daily commutes, to international summits between corporations and countries, discussing carbon-capture projects or use of electricity over fossil fuels, being and promoting the environmentally friendly has become the norm worldwide. In the sphere of construction and energy, green buildings have come to be a major focus of architectural firms and city planning. The notion

of maximizing sustainability and minimizing energy wastage has led many companies to revolutionize the construction sector, placing environmentally friendly practices at the fore. The Canada-based company Subterra Renewables embodies this progressive attitude towards construction and energy. The firm specializes in developing, acquiring, and operating thermal energy systems using the latest geothermal and heat recovery technology. Its primary aim and purpose is to help building developers reduce costs while meeting the

North America Outlook issue 02 | 103

SUBTERRA RENEWABLES

AT A GLANCE: SUBTERRA SERVICES

Jessica Rowe Bald, Vice President of Sales

Matthew Tokarik, Vice President

“THE INCOMING GENERATION OF BUYERS ARE MUCH MORE AWARE OF THE CLIMATE CHALLENGES THAT WE FACE TODAY, HAVING GROWN UP WITH IT PRESENTED AS A SIGNIFICANT ISSUE, AND ARE SEARCHING FOR WAYS TO ADDRESS THEM”

as an engineer,” Tokarik begins. “My professional career has been devoted to the green building space, where I continue to focus my efforts in this business.” Tokarik obtained a master’s degree in building engineering and found his speciality lay in the areas of energy consultation and work on building projects – with specific focus on carbon reduction. From a student engineer for sustainable transport planning, to a Founding Partner of a building performance and consulting company, Building Energy Consultant for Morrison Hershfield, and Sessional Instructor of building physics and sustainability at two universities, Tokarik finds himself leading a career in the exact field that he has both the passion and training for.

– JESSICA ROWE BALD, VICE PRESIDENT SALES, SUBTERRA RENEWABLES unique energy needs and carbon reduction targets of their building projects. The company has created a financing platform to fund the development of renewable energy projects. Its goal is to facilitate the adoption of geothermal heating and cooling systems and foster a community of industry professionals willing to work together in a bid to create a sustainable future. Matthew Tokarik, Vice President of Subterra, has been working for the company for almost three years. “I have a technical background 104 | North America Outlook issue 02

SUSTAINABILITY AND VALUE Geothermal and other green solutions have become far more prevalent than ever before. Newly planned developments are switching from older means of construction to the latest, greenest, and most efficient construction processes – developments that Subterra specializes in providing. “In leading cities like Toronto, Vancouver, and New York, there is

GEOTHERMAL DRILLING Subterra Renewables is a vertically integrated geothermal utility company. Subterra drills use leading edge technology. With its own geothermal drilling rigs and existing partnerships with geothermal drillers and experts across North America, the firm offers streamlined geothermal drilling services. For its clients, this means that partnering with Subterra ensures that projects get completed flawlessly and on time. SHORING AND EARTH RETENTION Subterra’s partner Turnkey Site Solutions is a full-service shoring contractor that is licensed and insured with years of experience offering quality shoring services. Turnkey has been operating out of Toronto since 2013 servicing all of Southern Ontario. Working directly with the client ensures both geothermal drilling and shoring are completed and scheduled on time with little disruption to the critical path. When geothermal drilling and shoring are done at the same time, it saves the client’s time, increases safety, and avoids any schedule delays that may occur.

Tel: 416-240-7666 | Email: info@turnkeyss.ca

YOUR SHORING PROFESSIONALS

We are a Toronto-based specialty shoring company focused on quality, execution, and customer satisfaction. With over 40 years combined industry experience, our team has the knowledge and expertise needed for every phase of your custom shoring project – from design through permitting, installation through construction project completion. Whatever your needs, we have the crews and equipment required to get the project done safely and efficiently.

RENEWABLE ENERGY

SHORING

PROCESS MANAGEMENT

Established in 2014, our Renewable Energy Division has grown rapidly. We provide custom Geothermal Systems and Solar Foundations services & solutions to clients.

We specialize in coordinating and executing shoring for the construction of mid-rise condominium and townhouse developments. Our focus is on quality, precision, and customer satisfaction.

Committed to quality and clear communication, we work with each client to explain which solution is best suited for their project and site...and why.

SUBTERRA RENEWABLES

AT A GLANCE: SUBTERRA SERVICES GREENFIELD DEVELOPMENT Subterra helps developers provide low-carbon heating and cooling systems for new buildings using a geothermal utility solution, where the firm provides design-build services as well as project financing. With this solution, developers and residents save money and reduce greenhouse gas emissions at the same time. SYSTEM ACQUISITIONS Subterra helps owners of existing geothermal system to realize full value for their green energy investments, freeing up capital to invest in other areas core to their businesses. As an experienced geothermal system developer and operator, Subterra is able to reduce operating, monitoring, and maintenance cost and risk, ensuring seamless continuity for buildings.

106 | North America Outlook issue 02

a political and social drive to push towards green solutions; geothermal being one of these. Geothermal is constantly named as one of the solutions needed to move towards our long-term carbon reduction targets,” Tokarik tells us. This shift and rise in demand to meet sustainability targets makes Subterra the answer to many construction-related sustainability objectives, and it has access to all it needs to meet this demand. Meeting this demand is exemplified in the firm’s ability to go above and beyond when carrying out the completion of company client projects, such as the Manderley (Toronto, Ontario), Vibe (Burlington, Ontario), and the Birchcliff Urban Townhomes (Scarborough, Ontario). The myriad of projects led by Subterra each maximize the environmentally friendly potential of each building - an aspect of business Subterra promotes above all. “At the federal level, we have committed to the target set by the Paris Agreement in 2015, which aims

“SUBTERRA DOES EVERYTHING FROM THE ENGINEERING TO CONSTRUCTION WORK. WE UNIQUELY HAVE OUR OWN IN-HOUSE DRILLING CAPABILITY – WE CAN DO GEOTHERMAL DRILLING AS WELL AS SHORING. AND THEN ULTIMATELY, WE OWN, OPERATE, AND MAINTAIN THE GEOTHERMAL SYSTEM FOR THE LONG TERM” – JESSICA ROWE BALD, VICE PRESIDENT SALES, SUBTERRA RENEWABLES towards a significant carbon reduction by 2050,” Tokarik informs us. “When you switch to geothermal heating and cooling, you are switching to an efficient electrically driven

ENERGY & UTILITIES

Outlook Creative Services

Outlook Publishing’s awardwinning in-house team is now utilising its extensive production skills to offer a full and bespoke range of editorial, design and marketing services via its new Outlook Creative Services division.

GoodPeople make all the difference. Proud partner of the Subterra Renewables team.

F O R M O R E I N F O R M AT I O N V I S I T: www.outlookpublishing.com/creative-services

goodmans.ca

North America Outlook issue 02 | 107

SUBTERRA RENEWABLES

CUSTOMIZED SOLUTIONS FOR YOUR BUILDING

AT A GLANCE: SUBTERRA PROCESSES STEP ONE Developers contract Subterra to build, own, and operate a thermal energy system for their building. STEP TWO Subterra’s System provides clean and renewable thermal energy to building owners. STEP THREE Building owners pay a fixed monthly fee to Subterra for heating, cooling, and hot water.

108 | North America Outlook issue 02

solution that can take advantage of a low-carbon grid supported by renewably generated energy, and you are reducing on-site fossil-fuel combustion.” A primary barrier to entry for geothermal systems is the increased upfront capital. However, over a 30-year life cycle that includes operating and maintenance costs, the system is cheaper overall. It is an investment in technology for the betterment of the future in the long term.

OPERATIONS AND FUTURE GROWTH A contributing factor to the success of Subterra is the various supply chain partnerships the company has cultivated and maintained over its many years of service. These

partnerships have proven invaluable, and are of paramount importance to the firm’s overall operation. “We have multiple important and key partnerships,” Tokarik assures us. “Mechanical distributors, piping and grouting distributors, those who supply drills and other necessary tools, the list goes on. On top of this, we spend a lot of time dealing with designers, construction managers, lawyers, and other individuals key to the real estate development processes. We operate as integrators to bring products and processes into place. “Our supply chain partners are extremely important for the timing and delivery of company projects. They have to be on time and able to supply when we need it - an aspect of service they never fail to achieve.” Subterra Renewables is backed by Forum Equity Partners, an alternative asset manager and private capital investor, with a long history developing and managing complex energy infrastructure, and real estate assets. Subterra’s relationship with Forum provides access to creative capital that allows the firm to be nimble and meet the needs of a diverse client base. Over the past two decades, Forum has been active in a number of large-scale projects including a multi-phase student housing project at York University, and the Toronto City Airport Pedestrian Tunnel. “We have partnered with Turnkey Site Solutions who deliver geothermal drilling and shoring projects,” Tokarik informs us. These reliable supply chain partnerships help Subterra reinforce and achieve its company mission: to create change in local communities through reducing greenhouse gas emissions in built environments. The firm partners with its clients to enable them to meet and exceed the challenges and opportunities of the future. Subterra’s aim is to deliver exceptional service to clients, partners, residents, and society overall

ENERGY & UTILITIES

“THERE IS CERTAINLY A PARADIGM SHIFT TOWARDS THE EXPECTATION OF RENEWABLE COMMUNITIES RATHER THAN IT BEING A NOVELTY, TREND, OR A TEMPORARY TOPIC” – JESSICA ROWE BALD, VICE PRESIDENT SALES, SUBTERRA RENEWABLES

in order to increase sustainability and promote environmental and human wellbeing into the future. And proceeding into this future, Subterra has planned to improve several aspects of its operation. “We will strengthen the operational delivery of our products and services led by clear-cut quantifiable targets,” Tokarik informs us. “We plan to expand our service offering coast-to-coast across Canada and into the US market. Our expansion is in response to the many market signals we have seen indicating the demand for geothermal.” With sustainability at the fore,

Subterra remains at the frontline of environmentally friendly construction and energy solutions. The continual growth of greener demand yields a promising future for Subterra, and it is safe to say that the firm is one to watch in the next few years of this ever progressive and advancing decade.

Tel: 1-416-966-9540 www.subterrarenewables.com

North America Outlook issue 02 | 109

ALABAMA POWER

110 | North America Outlook issue 02

ENERGY & UTILITIES

As Alabama Power evolves from its visionary roots over a century ago, CEO of Alabama Power Mark Crosswhite talks community engagement, tackling the digital divide, and championing diversity in the workplace Writer: Phoebe Harper | Project Manager: David Knott

From the very beginning, company leaders coalesced around a simple but fundamental principle: that Alabama Power be ‘developed for the service of Alabama,’ and that still holds true today.” More than a century ago, an attorney, an engineer, and a riverboat captain met to discuss providing their state with affordable and reliable electricity, at a time when ninety

percent of Alabama lived without it. The names of William Patrick Lay, James Mitchell, and Tom Martin have since become memorialized as the founding trinity of Alabama Power an enterprise that revolutionized the state’s economy and dramatically ameliorated the life of its citizens. “These men were visionaries who built an electric system that modernized Alabama and the Southern United States.”

For native Alabamian Mark Crosswhite, a law clerk assignment sparked an interest in the utility industry and successful career, as he now serves as Alabama Power’s CEO. Crosswhite has led the Alabamabased Southern Company subsidiary since 2014. “After practicing law for 17 years, I joined the Southern Company system as general counsel for Southern Company Generation and later served

North America Outlook issue 02 | 111

ALABAMA POWER as Alabama Power’s counsel. Since then, I have held roles in External Affairs and Operations, and served as CEO of Gulf Power, a Southern Company subsidiary at the time.” Fast forward to the company today, Alabama Power’s operations continue to evolve to meet the changing needs of its customers. “About 6,200 employees serve 1.5 million residential, commercial, and industrial customers spread across 45,000 square miles, from urban to very rural communities,” Crosswhite informs us. “The company maintains more than 85,000 miles of lines and more than 12,000 megawatts of generating capacity.” Originally, thanks to Alabama’s “abundant water resources,” the company relied on hydropower as its primary energy source. “Over time, the company diversified its energy mix, which now includes natural gas, nuclear, coal and more renewables,” he adds. Today, hydro provides just six percent of Alabama Power’s energy. In addition to tradition fuel sources, the company also makes use of energy from solar, wind and biomass.

FACTS AND FIGURES

ALABAMA POWER COMPANY (APC) • APC services 1.5 million homes, businesses and industries in Alabama. • 78,000 miles of power lines deliver energy to our customers. • Electricity provided uninterrupted for more than 99 percent of the time.

112 | North America Outlook issue 02

“WE ARE FOCUSED ON LEADERSHIP DEVELOPMENT, USING INTERNAL AND EXTERNAL RESOURCES, TRAINING AND MENTORING TO HELP GROW THE NEXT GENERATION OF COMPANY TALENT”

Mark Crosswhite, President and CEO “The electric industry is fundamentally about making, moving and selling energy, but the traditional model is changing as new technologies come into play and customers’ expectations evolve,” Crosswhite comments. In the same way that Alabama Power has diversified its energy sources since its founding days, so too have they sought to broaden and diversify both their staff and partners, promoting an all-encompassing ethos and following laudable practices of inclusivity. “We believe that, in order to build and maintain an industry-leading workforce, we have to be committed to diversity, equity and inclusion, provide competitive benefits and rewards, and develop our talent.” For many companies, ‘diversity’ has become something of a buzzword often associated with virtue-signaling and empty tokenism. At Alabama Power, it is explicitly incorporated into their operations and bolstered with concrete examples of diversity in practice. These include a $1.75 million grant that Southern Company provided to HBCUs (Historically Black Colleges

and Universities) across the state, although for decades the company has supported Alabama HBCUs. “These grants are part of a $50 million commitment from Southern Company to provide HBCU students with scholarships, internships, leadership development and access to technology and innovation that can lead to career opportunities. We have a long history of supporting and recruiting from these institutions, and we want to do more,” Crosswhite affirms. Such grants marry well with Alabama Power’s apprenticeship programs that have been launched in communities throughout the state, alongside workforce development partnerships. “We are focused on leadership development, using internal and external resources, training and mentoring to help grow the next generation of company talent,” he adds. “We partner with local colleges and universities, professional organizations and the military to maintain a robust pipeline of well-qualified and diverse candidates for our team.” Another initiative dedicated to strengthening diversity within the company and the industry is Alabama Power’s ‘Council on Culture and Inclusion’, or CCI, founded in 2018 to promote inclusion, equality and fairness within a diversified workspace. Crosswhite elaborates.

Our linemen don’t need capes. Just hard hats.

ALABAMA POWER

“Through the CCI, we are working to ensure all employees are valued, engaged and respected. This past year, the CCI intensified its efforts toward fostering an equitable and inclusive workplace. We are working to eliminate bias in talent recruitment and further diversify our interview panels. We’re updating our inclusion training

THE GOAL “At Alabama Power, our goal is to serve customers throughout the value chain, from providing them electricity to offering cost-effective energy-related products and services that can help improve their quality of life. To do that, we must proactively offer our customers the innovative energy solutions they need – not just for today, but for the future.”

114 | North America Outlook issue 02

for all employees and reviewing our ongoing pay equity and glass ceiling analyses.” Alongside literally providing power to the people, Alabama Power empowers and supports those overlooked in the industry by making strategic partner relations and investments, shining a light on underrepresented communities. “We’re growing our supplier diversity efforts, seeking out opportunities to increase our business with minority-owned and female-owned companies and entrepreneurs in disadvantaged and underserved communities,” Crosswhite tells us proudly. This admirable, all-inclusive culture promoted by the company extends beyond the energy sector to the local community. “Externally, we want to help cultivate inclusive communities in Alabama. We engage with Alabama leaders to elevate the state, with a focus on economic and education policy,” he explains.

“CLOSING THE DIGITAL DIVIDE IN ALABAMA IS AN IMPORTANT FOCUS FOR ALABAMA POWER. CONNECTIVITY IS KEY IN DEVELOPING AN INCLUSIVE ECONOMY AND ELEVATING URBAN, SUBURBAN AND RURAL ALABAMA COMMUNITIES ALIKE” “The company participates in the “Alabama United” steering committee, which provides recommendations on moving the state toward racial equity, and supports the Alabama Innovation Commission, which is trying to build a more inclusive economy throughout the state by supporting businesses started by people of color and in rural Alabama.” The company’s focus on social responsibility and creating a more

ENERGY & UTILITIES level playing field extends from energy to connecting more of the state to high-speed internet and broadband. According to a report from Alabamabased television station WRBC, one fifth of Alabama has effectively been crippled by the lack of internet connection or power, with significant gaps in service due to much of Alabama’s rural population lacking the infrastructure. The state’s digital divide has been made even more prominent by the pandemic, with many homes tasked with home-schooling or working remotely, both of which demand stable internet access. “Closing the digital divide in Alabama is an important focus for Alabama Power. Connectivity is key in developing an inclusive economy and elevating urban, suburban and rural Alabama communities alike,” Crosswhite assures us. Alabama Power endeavours to bridge this gap by introducing fiber initiatives and enhancing connectivity across the state. Crosswhite elaborates: “The company is adding fiber across our state to allow us to deploy technologies that improve the reliability and resiliency of our electric grid. Through our strategic fiber deployments, we’ve partnered with telecommunications

DRIVING DIVERSITY “We know that having strong, long-term and trusting relationships with diverse suppliers helps drive value for our company and customers. “We’re committed to supporting local businesses and creating economic opportunities for minority-owned, female-owned and other disadvantaged business enterprises.”

companies and are using any surplus resources as the backbone to extend their broadband network, especially in underserved areas of our state. “Two of our Alabama cities – Birmingham and Montgomery – have received Smart Cities grants to develop ideas for an integrated, smart transportation system. The goal is to leverage data intelligence to inform decisions and develop programs designed to improve infrastructure and the quality of life for residents. We’re pleased to work alongside community leaders on these initiatives.” Regarding Alabama Power’s response to the pandemic, Crosswhite comments: “It bears emphasizing that, due to the critical nature of electric service, our employees never stopped working.”

“When the US declared a national state of emergency in March 2020 due to the COVID-19 pandemic, Alabama Power immediately began implementing its crisis management and incident response plans. “We shifted operations and directed nearly a third of our employees to begin working remotely. We instituted staggered work schedules at critical facilities and focused on essential work to sustain operations and maintain business continuity, while protecting the safety and health of our employees.” As the pandemic persists, Alabama Power endeavours to continue serving

the community’s needs. “We have a great team, and as we manage through this ongoing pandemic, I couldn’t be prouder of their dedication and commitment to our customers,” Crosswhite adds.

“This crisis has demonstrated the value of a workforce that is flexible and adaptable. We’ve learned a lot and I believe this experience will help us develop a workplace of the future in ways we may not have previously imagined.” This is a company that is holistic in its outlook, seeing its corporate body as an extension of the community in which it is located and has been an active part of for the last century. Crosswhite ends on a note of cooperation and realism. “We recognize our company can’t succeed unless the state of Alabama grows. Our founders recognized this by establishing the first economic development office of any utility company, and it remains a priority today.” By endorsing this community spirit, both state and company may continue to grow together.

Tel: 1-800-888-2726 www.alabamapower.com

North America Outlook issue 02 | 115

MAGNA IMPERIO SYSTEMS CORP.

Solving

THE WATER CRISIS Water treatment facilities are required by everyone, from individuals to industries. We spoke to Magna Imperio Systems Corp. about sustainability and innovation in the water-provision sector Writer: Marcus Kääpä | Project Manager: David Knott

116 | North America Outlook issue 02

ENERGY & UTILITIES

ater is quite literally the lifeblood of our planet without it, we would have never been. It is no shock then that water treatment facilities are paramount to the survival, facilitation, and continuation of our society. The provision of clean water, not just for drinking but for a wide variety of utilities, both domestic and regionally, becomes essential to the function of every aspects in our daily lives. Because of this, it comes down to water treatment facilities and desalination to ensure and maintain quality levels of clean and safe water for individuals, families, companies, and entire industries alike. Texas-based Magna Imperio

Systems Corp. (MI Systems) is one of the firms ensuring that industries and individuals are receiving the quality and sustainable water supply they require and deserve. MI Systems is a national and international water technology company that designs, develops, manufactures and has commercialized the highest recovery, most energy and cost-efficient, sustainable water treatment and desalination system in the world. Grant Page, Founder and Chairman, and Eric Rosenfeldt, CEO, shed some light on MI Systems and its place within the water-provision industry. “We are seeing exciting opportunities in the US and, in other parts of North America as well,” Page begins.

“It is well known that the water industry has been stagnant and unyielding to new solutions. We are here to change that problem and interrupt an industry run by EPCs with our environmentally friendly and innovative technology.” “There is a lot of work to be done especially regarding municipalities and businesses that need support with their water treatment infrastructure,” Rosenfeldt adds. “In some cases, our customers need a complete replacement of their current system. The solutions at MI Systems allows us to solve problems for several industries because of our revolutionary modular, compact design and our ability to meet our customers’ volume demands.

North America Outlook issue 02 | 117

MAGNA IMPERIO SYSTEMS CORP. “Ultimately, we want to solve the problems surrounding this precious resource and make it accessible to people and to areas where it currently is not.” MI Systems stands out in the water industry through its enthusiasm to take on and solve the most complex water-related challenges and problems that arise. The firm utilizes its own best-in-class technology with CAREER HISTORIES

HOW DID YOU BOTH BECOME INTERESTED IN THE WATER INDUSTRY? GRANT PAGE: While serving in the military, and during my last operation, one of my port stops was in Duqm, Oman. I noticed several humanitarian efforts – especially efforts concerning water. First-hand, I saw people in the 21st century who still lacked access to a basic need. I was inspired then to dedicate my life and career to expanding the reach of humanity’s most precious resource: clean water. ERIC ROSENFELDT: My career started in commodities. I was gradually drawn to the energy sector and found a niche in leading companies through rapid growth. I have been fortunate in that this has allowed me to work in diverse markets in countries all over the world. A few years ago, I met Grant. His passion made my interest in the water industry grow. Because my roles have always centered around understanding the needs of my customers and making sure I could provide the best solutions, my path naturally directed me to Magna Imperio Systems.

118 | North America Outlook issue 02

an emphasis on innovation to do this, and from such innovative talent has developed one of the most robust patent portfolios in the water industry. “Recently we deployed and fully commissioned a modular municipality plant that we locally built from the ground up,” Page tells us. “In less than one year, we were able to bring drinking water to a community using a system with a

Holliday Process Solutions Increased Approach to Systems Lifecyle & Reliability With outreach into the domestic and international markets, Holliday Process Solutions has gained market share through process improvement and collaboration with our clients. HPS continues to dive into our clients desired design with an approach to the Lifecycle, Reliability, and commissioning in mind. When qualifying the subcomponents within a control panel most take the short-term approach to choosing the highest valued manufactured products available. While there is merit to this in some cases, our daily applications tend to deal with the infrastructure of Utilities, Municipalities and life safety, these markets cannot afford downtime or risk to the systems they rely on. We approach our designs based on our vast experience to prevent product failures in the field as well as providing the client components that will be available for years to come. We do our due diligence when designing a system and simulate applications in our lab. Engineering is simply theory, and we put theory to the test amongst our test instruments and highly qualified contributors to the business. Holliday Process Solutions stays in the limelight with Renewable Energy in mind providing off-grid Photovoltaics (Solar Power), Wind Power, and Fuel Cell Technology to prevent the footprint of our systems on the environment. We were founded on technology utilizing the ethical approach to Control Panel Design while maintaining the confidence of our clientele with the latest technology available.

http://hollidayps.net

COMPLEX INTEGRATION MADE SIMPLE Solutions HPS Provides We have so many different options for your needs. Electrical Control Systems Design and Fabrication Skid Mounted, Plug-and-Play Solutions for Remote or Temporary Installations Complete Systems Integration for Utilities, Refineries, Remote Natural Gas Metering Stations, Chemical & Petrochemical Facilities

GET IN TOUCH Holliday Process Solutions, LLC Tyler Blanchfield - Vice President-Sales E tyler@hollidayps.net M (713) 647-2826 http://hollidayps.net

Overvoltage Surge Protection Mitigation, Site Surveys and Audits As Built Drawing Packages AutoCAD Technical Support to Field Personnel 365 Days a Year

MAGNA IMPERIO SYSTEMS CORP. recovery rate of over 90 percent and an energy consumption rate that is 60 percent lower than our competitors. The firm’s patented developments make it a key player in the water provision sphere. Magna’s Electrochemical Nano Diffusion (END®) process, for example, is a revolutionization of the long established electrodialysis reversal (EDR) process and has established new benchmarks in

AT A GLANCE: MAGNA IMPERIO SYSTEMS CORP MISSION: Magna Imperio Systems Corp. is a key enabler to solving the world’s water crisis through innovative solutions and technology. LOCATIONS: The firm has offices throughout the United States and presence in Mexico, Oman, and the Caribbean. INDUSTRIES: - Power - Mining - Food and Beverage - Municipal - Chemical - Oil and Gas SUSTAINABLE SOLUTIONS POWERED BY END® TECHNOLOGY: - RO Brine Recovery - Boiler Feedwater - Cooling Tower Makeup/ Blowdown - Mobile Systems - Brackish and seawater desalination - Minimum and zero liquid discharge

120 | North America Outlook issue 02

terms of energy efficiency and recovery for desalination technology. END® offers up to 60 percent energy savings versus traditional treatment technologies with clean water recoveries up to 99+ percent, capitalizing on the far-reaching impacts of Maximum Recovery, Minimum Energy®. In contrast, EDR can only clean brackish water. END® can not only clean brackish, but also seawater, produced water, and turn it into potable or ultra-pure water. “The future is equally invigorating,” Rosenfeldt informs us. “Our top researchers are working on a product for the oil and gas industry that will desalinate produced water for as little as 30 cents per barrel. As pioneers of this technology, we will supply a product that is mindful to the economic needs of the oil and gas market, while respecting the environment. Our deployment of this modular product will be demonstrated as early as this spring.”

Cypress Fabrication Services Cypress Fabrication Services, LLC is an independently owned company located in St. Martinville, LA. We are a top-notch fabricator of piping, DNV, structural skids, supports, ASME coded and National Board-certified vessels offering onsite and facility fabrication and construction with an emphasis on quality and on-time delivery at a competitive price. Our 30-acre, 11,000 square foot under-roof facility with overhead cranes, power rollers, forklifts and cherry picker allow us to simultaneously tackle the simplest to the most complex carbon steel, stainless steel and aluminum welding projects for our end users both local as well as worldwide. Make Cypress Fabrication Services your fabrication destination and allow our experienced project team to work with you to resolve your fabrication needs. Follow us on LinkedIn and visit our website.

www.cypressfabrication.com

ENERGY & UTILITIES

SERVICES • • • • • • • • • • • • • •

QUALITY AND SERVICE THE CYPRESS WAY No matter how big or small your project is, you can count on Cypress Fabrication Services for quality design, welding and fabrication solutions from drafting through delivery. Our experienced project team works with each of our customers to understand your unique requirements and create customized solutions delivered when you need them.

Turn Key Fabrication ASME Fabrication - U & R stamp Structural Fabrication Design build using in house software Blasting & Painting DNV Fabrication Onsite Fabrication & Construction Pressure/Spool Pipe Fabrication Stainless Steel & Aluminium Fabrication Refurbishment Hydrostatic Testing & NDE Pick up and Delivery Procurement & Consulting Custom built with installation

FACILITY AND EQUIPMENT • • • • • • • • • •

10,000 Sq ft enclosed shop 15K extended boom forklift 8K extended boom forklift 20,000 lb Capacity Overhead Cranes Sub ARC Power Rollers Up to 30 Ton 27 Welding Machines Flat Bed Truck w/40’ Gooseneck Victaulic Pipe Grover Jimmy Jammer Semi-Automatic Welding System

SALES@CYPRESSFABRICATION.COM • WWW.CYPRESSFABRICATION.COM 2210 CYPRESS ISLAND HWY • ST. MARTINVILLE, LA 70582

“We are excited to mesh the advancements of our technology and our already established impact on the municipality industry and the food and beverage industry with a few opportunities in the Caribbean and Latin America,” Page adds. “Presently, the Caribbean has several seawater treatment needs and an ever-growing concern of reducing costs. Since our established technology can be expanded to several industries all over the world, we anticipate our position in the market as a one-stop, full solutions provider to flourish.” MI Systems’ research and product development teams are dedicated to finding answers to the most complex problems in the water sphere. The firm’s goal is to offer efficient and innovative solutions and match those two things with high-quality equipment. Its focus over the last few years has been mainly research and technology. Moving forward from this,

the company is witnessing strong support from an institutional base of investors to vertically integrate more resources - support that will ultimately further MI Systems’ mission to solve the world’s toughest water problems and increase its bottom line. MI Systems’ core mission embraces social responsibility – the firm aims to bring clean and accessible water to communities in need. “From the board of directors and throughout the entire team of MI Systems, we understand the task we want to accomplish and hold ourselves accountable in our resolve. Social responsibility is where we started, it motivates our growth, and it is the base of our maximum recovery with minimum energy technology,” Page tells us proudly. And this core mission would not be achievable without the firm’s supply chain partners. MI Systems seeks partnership with those businesses and organizations that understand North America Outlook issue 02 | 121

MAGNA IMPERIO SYSTEMS CORP.

and reinforce the company mission, and those that wish to help MI Systems shoulder the responsibility of pursuing this substantial task. MI Systems has the support of both international and local suppliers who have joined them in this mission. “Our partnerships with suppliers and vendors are a crucial part of our success as a company pursuing the world’s water problems and as a growing one as well,” Rosenfeldt assures us. These supply chain relationships are critical in the future operation of MI Systems. Moving through 2021 and into the future of the decade, the firm has established its primary goals to best execute its mission. “Our key priorities are to continue to deliver an unparalleled high quality and reliable product to our customers and continue to enhance the employee experience at our growing company. The people who complete our team are incredible. Serving our staff and our customers are equal and high priorities for us,” Rosenfeldt tells us. “We are exploring opportunities in the Middle East as we truly move toward our mission of solving world’s toughest water problems,” Page adds. 122 | North America Outlook issue 02

ENERGY & UTILITIES “OUR KEY PRIORITIES ARE TO CONTINUE TO DELIVER AN UNPARALLELED HIGH QUALITY AND RELIABLE PRODUCT TO OUR CUSTOMERS AND CONTINUE TO ENHANCE THE EMPLOYEE EXPERIENCE AT OUR GROWING COMPANY” “Moving forward, we are expanding our model to offer long-term water service agreements, (WSAs). We plan to grow and offer our services for decades to come. The WSA model is a great solution for companies who are looking to reduce their CAPEX costs by allowing MI Systems to bear the initial expenses – including construction and installation. Furthermore, we are confident in our product’s ability to produce results. Because of this, we have options for clients to pay on a per 1000 gallons or per barrel of product basis.” Page ends by measuring MI Systems’ past to the future to come. “We were conceived as a technology company, we expanded as a research/development think tank, and utilized a manufacturing model to rapidly scale and deploy our first systems. Moving forward, the company will focus on offering unparalleled service and solutions with the highest quality of smart technologies.”

MI Systems’ focus over the next year is expansion in North America, the Caribbean, and Latin America. The firm’s technology serves many industries, such as oil and gas, food and beverage, municipal, and industrial waters. Across the water industry, it is crucial that we further our advances in minimizing the waste

on our earth, our carbon footprint, all while reducing the space and energy needed to do it. “In the past, we have been successful in offering CAPEX solutions for our clients and then serving as their resource for maintenance and repairs,” Page elaborates.

MAGNA IMPERIO SYSTEMS CORP. Tel: +1 (281) 814-3239 info@m-i-systems.com www.magnaimperiosystems.com

North America Outlook issue 02 | 123

GENIE ENERGY

ENERGY & UTILITIES

Powering America New Jersey-based Genie Energy talks solar solutions, savings and spearheading America’s Clean Energy Revolution Writer: Phoebe Harper | Project Manager: David Knott

Supply. Advisory. Sustainable Generation. We are Energy.’ An end-to-end provider of energy services, Genie Energy works to reduce commercial and industrial clients on-bill energy expenses, by providing energy advisory and electricity and natural gas brokerage – as well as innovative sustainable solar solutions and solar panels — engineered in the United States. In addition to serving traditional and renewable supply options to residential and commercial customers in the US, globally the company offers its services in deregulated energy markets of the United Kingdom, Finland, and Japan. We spoke with Paul Hauser, CEO of Prism Solar Technologies, and Sara Schwandt, Managing Director at Diversegy and Genie Solar Energy, all subsidiaries of Genie Energy. Headquartered in New Jersey, and operating globally, Genie Energy is well-positioned in the industrial heart of America’ renewable energy sector in a state invested in the power of clean energy. Indeed, solar power is New Jersey’s leading renewable energy source.

Paul Hauser, CEO of Prism Solar Technologies Schwandt elaborates, “Genie Commercial Services encompasses: Diversegy, an energy advisory firm focused on reducing on-bill natural gas and electricity charges; Genie Solar Energy, an end-to-end commercial solar installer is focused on using technology solutions, that succeed both in reducing the carbon footprint and maximizing the utility offset to reduce operating costs and values the ROI.”

Genie’s value proposition is improved by Prism Solar, a Genie Energy company which specializes in the engineering and manufacturing of high-power bi-facial solar modules. “We offer unparalleled module solutions for the architectural, residential and commercial /industrial space,” comments CEO, Paul Hauser. According to the US Energy Information Administration, approximately 17 percent of electricity generated in the country in 2019 was from renewable energy sources. This number will only continue to grow. For Hauser, it is an exciting time to be part of the sector as it enjoys advancements and expansion, particularly within the renewables industry. “There are constantly new technologies that are emerging that would have been unthinkable in years prior. We are continuously pushing the boundaries of reliability, conservation and production.”

SPEARHEADING AMERICA’S RENEWABLE REVOLUTION Prism Solar owns the IP in the United States for bi-facial solar modules. North America Outlook issue 02 | 125

GENIE ENERGY With manufacturing and engineering in the United States, as well as manufacturing overseas, Prism sets itself apart in the industry. Prism’s modules are able to capture the sun’s rays on both sides of the panels, leveraging a reflective surface (such as a white roof), so that power can be produced on both sides of the array, thereby increasing total energy production of a single panel. The increased production of a Prism bi-facial panel is just part of the story, as Hauser explains. “The core technology of the company was based on the idea of removing expensive silicon (solar cells) from modules. The silicon that was removed would be replaced

“FOR MANY OF OUR SOLAR CLIENTS, THE REAL GREEN ($$$) BENEFIT IS ELIMINATING AS MUCH OF THE ENERGY BILL AS POSSIBLE” – SARA SCHWANDT, MANAGING DIRECTOR AT DIVERSEGY AND GENIE SOLAR ENERGY by inexpensive Holographic Optical Elements. The integration of holographic film into solar modules would provide a cost reduction in module manufacturing without sacrificing module performance. Although Prism no longer manufactures holographic modules, our focus is on manufacturing high quality bifacial solar modules, which are able to produce up to 30

percent more output per panel.” Once a niche product, bifacial modules have begun to enter the mainstream of the renewable energy sector thanks to increasing numbers of manufacturers continually seeking more efficient means of sustainable power generation. Since most renewable energy companies are still a relatively new

ENERGY & UTILITIES

Your one-stop partner for all Solar services! SOLAR TESTING – SIMPLIFIED PORTFOLIO: • • • • • • •

Accredited by A2LA since 1997 and OSHA as NRTL since 2010 Full IEC/UL 61215, IEC/UL 61730 certification services Bankability and CEC testing services Fire testing and long-term outdoor/field testing services PV plant testing and field labeling, including AHJ resolutions Racks and trackers testing and certifications Independent 3rd party testing, evaluations and assessments

Located in sunny Tempe, Arizona, we strive to be the fastest & most cost-effective solution provider no matter what you need! Entrust your success to the most experienced Solar Testing Lab in America!

1107 W Fairmont Drive | Tempe | Arizona 85282 | USA Call: 480-966-1700 | info@solarptl.com | www.solarptl.com addition to the continually shifting landscape of the innovative energies sector, Prism Solar’s experience sets them apart. “Prism Solar has years of design and research experience that other solar module manufacturers do not have. We also offer unique and custom architectural solutions that others cannot provide,” comments Hauser. Schwandt speaks passionately about the long-term potential of solar at Genie Energy. “Many family-run companies believe that an investment in solar is an investment in their future – with many undertaking to go solar before passing the business off to their next generation – by adopting solar today, they are creating long-term stability for the business and a legacy for themselves. That’s rewarding.” An exciting recent venture for Prism was the Simons Solar Project, that leveraged Prism’s bi-facial panels to provide solar powered car ports

and is the largest bifacial system in Eastern Canada. Prism’s glass on glass panels allow light to filter through between the solar cells while pickup up additional kilowatt hours from the light reflecting below – providing form, function and efficiency. This feat of manufacturing allows the Simons premium fashion retail store in Quebec to attain the prestigious status of a ‘Net-Zero’ building, meaning that all energy consumed has been produced on site. Other initiatives include the installation of a 2.8-megawatt bifacial solar array on the roof of the New York-based JPMorgan Chase corporate complex in Ohio. By leveraging bifacial panels for the project, the system’s production was increased to offset 18 percent of the building’s overall energy consumption. “Business owners are even looking to solar as a new incremental source of revenue – becoming ”mini utilities”

by becoming their own power generators to directly serve their tenants and local communities,” comments Schwandt. ‘Onion Flats’, a Baltimore-based building firm, recently built a netzero, mixed-use apartment building in West Baltimore. Prism Solar bi-facial panels encase the building – and not just on the roof, but the exterior walls as well. The system produces enough electricity to offset 100 percent of the 28 apartment’s electricity consumption. This project is a great example of architects tackling climate change using ingenuity and Prism Solar’s unique panels to increase the electricity production per square foot. “We are seeing a ‘Green Wave’ in energy, with the new administration poised to make a $400 billion investment in clean energy over the next 10 years with an end goal to provide 100 percent clean energy by 2035. It’s never been more exciting. North America Outlook issue 02 | 127

GENIE ENERGY But for many of our solar clients, the real ‘green’ benefit is eliminating as much of the energy bill and related costs as possible,” adds Schwandt.

SHADES OF GREEN “We understand the electricity bill better than any other renewable company,” claims Schwandt. “And a small business reducing their energy expenses by even 10 percent can be extremely meaningful.” Genie Energy’s position as an authority on energy generation and supply, legitimizes that position with an approach that couples energy advisory and brokerage with their sustainable generation efforts. This is where Diversegy, Genie Energy’s energy commercial and industrial

energy brokerage and consultative advisory firm, really comes to the fore to provide the real value proposition. “Diversegy” is a combination of ‘diversity’ and ‘energy’. The namesake does more than deliver, with diversified energy strategies, and efficient, sustainable opportunities, clients take more control of their energy spend without large investments or huge time commitments. “We can pull all the pieces together,” explains Schwandt. “With strategic planning and guidance from our energy experts, leveraging design and technology, we can maximize the production of kilowatt hours, reduce demand charges, improve the bottom line and take our customers green all at the same time.”

THINKING LONG-TERM Much like their innovative energy solutions, Genie Energy looks for a similar longevity from their staff and supplier relations. “Many of our employees have a long tenure and have a track record of growing their career here,” comments Michael Stein, Genie Energy CEO. Hauser himself has been with Prism Solar for over ten years in various positions, after studying Optical/ Mechanical engineering at the University of Arizona. Meanwhile, Schwandt’s role as Managing Director at Diversegy and Genie Solar Energy has progressed significantly from a marketing position when she initially entered the industry working with another Genie Energy subsidiary.

“Genie Energy has a history of fostering and mentoring our staff, we allow them to flourish by encouraging an entrepreneurial mindset and helping them to feel a sense of ownership in the company. By encouraging their contributions, and out of the box thinking, we continue to develop an innovative team of employees. We have a small, family run company feel, with the ability to provide the resources of a large company,” added Stein. That “small, family-run feel” resonates well with many of the vendors and service providers Genie Energy has chosen to partner with. “The investment we make in the clients we serve, from the mom and pop store to a large industrial

ENERGY & UTILITIES

manufacturer, is the same investment we make in our vendors and other partners,” says Schwandt. “In fact, many are small businesses built by entrepreneurs, with whom we work tirelessly to ensure financial and operational stability. We believe that by cultivating the best sources for the next set of best-in-class service offerings, we will all grow together.”

LOOKING AHEAD Innovation is on the horizon for Genie Energy, and the future looks battery powered. “We are looking at batteries to be

a cost-effective solution to lower demand charges. To date, batteries have not often been a financially viable option to reduce expenses – they have been a ‘nice to have’ as a backup for client’s key functions. We see the opportunity a little more simplistically - to further reduce energy expenses. With an on-staff battery expert, we are focused on finding ways to drive further innovation here,” notes Schwandt. Meanwhile, Hauser too welcomes the exciting prospect of expansion with implementing new technologies and more.

“We look forward to introducing our new series of modules, and expect to see a big jump in power density with our new line. I’m also looking forward to more projects with battery integration and more EV charging stations using our products.” On every level, the introduction of new technology and enhanced solutions will continue to fulfill Genie’s vision and purpose of reducing energy bills for their clients, but it doesn’t end there, as the company believes that an educated end-consumer is the drivers seat to control their energy bills. “We will continue to add more products to the lineup that help our clients reduce more on-bill energy expenses, and this year we are focused on helping our clients gain transparnecy into their usage in a way only reserved for the utility companies in the past. With a ‘SmarterMeter’ designed to allow monitoring of usage in real time in order for demand expense reduction,” sums up Schwandt. Competition for REPs can be notoriously fierce against incumbent electric and gas utilities and other providers, but with their admirable holistic ethos, advisory approach, and extensive experience, Genie Energy is one with a difference.

info@geniesolarenergy.com www.geniesolarenergy.com

North America Outlook issue 02 | 129

TARA ENERGY SERVICES

A Fleet Fit for the Future Calgary-based TARA Energy Services have been facilitating oil and gas industries across North America with state-of-the-art equipment for over 20 years. We discuss a greener future with CEO Scott Bissell at a defining moment within the sector Writer: Phoebe Harper | Project Manager: David Knott

130 | North America Outlook issue 02

OIL & GAS

hen CEO and founder of TARA Energy Services, Scott Bissell first entered the oil and gas industry at the age of 17, the industrial landscape was very different from the challenges and trends shaping the sector today. “This is when I first became passionate about joining such an innovative industry.” Indeed, innovation is a word that has come to define North America’s resilient oil and gas sector, as it is forced to adapt to new technologies and propose solutions for a world with changing energy needs. For TARA, innovation is a guiding tenet propelling the company forward. Without it, TARA would not enjoy such an established reputation as a leading provider of field services and state-of-the-art oil and gas equipment across North America. Almost a decade after joining the company, Bissell now spearheads the Calgary-based company as a superior provider of production services and well testing for some of the biggest names across North America’s oil and gas Industries. “With over 700 employees and operational offices across Canada and the United States, we are able to facilitate many different basins.” An essential component in the midstream sector, TARA is a trusted

AT A GLANCE: TARA ENERGY SERVICES TARA Energy Services supports some of the largest oil and gas producers through its comprehensive line of well testing and production services and its in-house manufactured equipment offering the newest advancements in the industry.

North America Outlook issue 02 | 131

TARA ENERGY SERVICES

Scot

t Bi

provider for the processing, storage and transportation of precious energy commodities. These include natural gas, oil and other usable materials to be distributed to refineries and petrochemical plants. The company’s custom solutions include unique portable midstream capabilities, SAGD, and multi-well flowback operations, as TARA endeavours to meet the varying needs of today’s producers. TARA is tasked with providing production support through a portable, unmanned midstream infrastructure chain, equipped with a sizeable fleet, a well-equipped team and bolstered by 22 years of experience. This is what enables them to excel across all three components l sel

of the midstream sector: gathering and processing, transportation, and storage and logistics. “TARA currently has internally manufactured and introduced the largest process spec-built flow back fleet in all of North America,” Bissell informs us. By manufacturing internally, TARA benefit from an unparalleled versatility and knowledge of their own equipment. Their in-house technicians are of the highest calibre, guaranteeing quality manufacturing and giving the company its edge. “TARA’s equipment is built and certified to an international standard, while the company itself has invested heavily in implementing and improving industry standards relating to safety and environmental requirements.”

OVERVIEW OF SERVICES

Advantage Valve maintenance Advantage Valve maintenance is honoured to be a supporter of Tara oilfield services. TARA oilfield services is a progressive and innovative company with a focus on the future, Advantage Valve maintenance has been dedicated to servicing northern Alberta for over 20 years with repair, maintenance, sales and flowback rental equipment. With our main Branch in Grande prairie Alberta and secondary branch in Sylvan lake Alberta. Advantage Valve has always been committed to providing quality service and cost-effective solutions for all of our customers this has been the largest contributing factors for our success in our 20-year history. Thank you to TARA oilfield services and our loyal customers for the continued support.

TARA WELL TESTING & COMPLETIONS - Providing mobile infrastructure equipment which allow producers to generate the immediate cash flow and take away that is necessary for today’s project economics. TARA provides a complete flowback production testing service in some of the largest oil and gas plays in North America with a work force of approximately 300 highly trained technicians, gathering comprehensive data on fluid separation, gas analysis and flow rates with superior equipment to handle high abrasive fracturing and large well pad flowback. TARA has an industry leading safety track record with flawless field execution. TARA PRODUCTION TESTING SERVICES - Specializing in field services, design, engineering and manufacturing of high-pressure large volume flow back equipment. Operationally, the company is hands on and have industry certified in house techs for all aspects of equipment quality control requirements. TARA operates with the strictest quality control processes and partners in Canada, United States and Mexico we can ensure quick turnaround times on delivery and service. TARA EQUIPMENT RENTALS & MANUFACTURING - Specializing in oil and gas rental equipment for management of early production facilities with unmanned large multi-well pad flowback application, manufactured in-house to the highest of standards and certified at top International levels. We have implemented “game changing” build requirements to improve on our “best-in-class” environmental and safety track record. We have taken environmental standards to the highest level by adding gas diffusers on inlets, weir plates and outlets to decrease greenhouse emissions. TARA also provides consulting, field services and maintenance.

132 | North America Outlook issue 02

www.advantagevalve.com

780-513-0020 GRANDE PRAIRIE 403-887-1462 SYLVAN LAKE

A DVANTAGE V ALVE.COM

24 hr maintenance + Rentals

TARA ENERGY SERVICES “Our standard in equipment and quality management sets us strides ahead of our competitors.” In their continued dedication to providing the highest quality equipment for their clients, TARA strikes a fine balance between economizing and ensuring maximum profitability at every level for both the client and the company, whilst also allocating significant funds for investments to further the company. Although new investments are essential, so is retaining the company’s pride in offering competitive prices for their custom services. “Our focus on optimizations through the creation of financial efficiencies and innovation is a major focal point for our clients when choosing TARA. Our ability to provide efficiencies and uphold the highest standards in flow back always allows our project management to stay below budget.” Meanwhile, expansion is still very much on the agenda. “We are committed and dedicated to extensive capex programs towards the further growth of our fleet.” “We have expanded Canada and have set up a new shop and operational base in FSJ, BC. We are also very focused on developing and growing our North American business into other states.” This is also evidenced by Tara Energy Services’ ‘Industry Standards Initiative’, which comprises the company’s various investments intended to improve industry standards, mainly pertaining to environmental and safety requirements. This comes as the result of various mandates resulting from the industry’s current environmental concerns. TARA have reacted admirably, by introducing features such as digital metering, process spec shutdowns, and patent-pending internal separator designs inclusive of mist extracting 134 | North America Outlook issue 02

weir plates and diffusers to decrease greenhouse emissions. “In focusing on our stewardship, we have also inclined industry standards towards emission mitigation by finding ways to decline environmental impact and ensure sustainability for the future generations to come.” This leaning towards a greener, more sustainable future comes at a time when oil and gas companies must realign their practices to suit a long term reduced demand for petrol and a worldwide effort to reduce our carbon footprint. With this comes an ambitious vision. “As a leading provider in the industry, sustainability is at the forefront of everything we do. At TARA we have made it our mission to pave the way in true Green Completions through channels of technology and strategic partnerships to achieve our Zero Emissions Strategy.”

OIL & GAS

A MISSIONBASED APPROACH “Our mission is to consistently strengthen our partnerships by ensuring mutual growth and sustainability through our innovative approach to true Green Completions. In doing so, we have implemented creative solutions that allow producers to generate their immediate take away while preserving capex spends on infrastructure.”

The same model of sustainability extends to TARA’s workforce. “Our sustainability practices are and have always been to focus on internal development while adding professionals from all aspects of the industry.” “We’re very focused on internal development. We like to train and offer development, and we see a fouryear plan for how we will develop each of our staff on our platform down the road... Our diversity in executive management experience allows us to continually grow our people and push them to further and develop their

careers within TARA.” By pursuing long-term relationships and commitments to the company, both with staff and partners, TARA prioritizes a sustainable approach to the company’s future. With a procurement team based in Canada and the US, TARA works with a “cherry-picked” list of partners that will ensure mutual growth. The same approach and careful consideration apply when working with clients. “All of our clients are considered working partners. We take an approach of really understanding their end goals and strategize how we North America Outlook issue 02 | 135

TARA ENERGY SERVICES can we help streamline their projects to execute below budget, but at higher standards.” “Our supply chain department is very key to our many successes and is a large focus of TARA.” Indeed, strength in solidarity and partnerships are needed now more than ever as the pandemic threatens an unprecedented downturn for the industry.

Bissell himself defines the industry’s current state as a time of “much consolidation”, as oil and gas companies worldwide confront the effects of the pandemic. According to a report published by Deloitte, in April 2019, global oil demand fell by 25 percent. Remarkably, the industry underwent a remarkable recovery and has since cut its losses to just 8 percent.

This is an industry that is accustomed to surviving the peaks and troughs of economic cycles. Indeed, even before the pandemic oil and gas companies were weathering market headwinds. Although the downfall resulting from this pandemic leaves many energy companies facing uncertainty, contributed to by the longer-term decline in petroleum demand,

OIL & GAS COVID-19 has merely accelerated the arrival of the new energy future. Bissell is therefore optimistic in his outlook and welcomes the potential that comes with this time of upheaval. “With the pandemic and large decline in commodity prices both variables have created much difficulty in market but have also presented much opportunity. TARA is excited to continue to bring forward new

innovations and welcome the challenges of today’s market.” The normalization of economic activity remains a vague prospect in the distant future, however forecasts for 2021 suggest that oil demand will recover. By prioritizing new investments towards a greener future, TARA embodies and supports an ethos that will continue to survive.

Canadian Office Tel: 1-855-410-4328 American Office Phone: 1-855-410-4328 www.taraenergyservices.com

SENTRY

INSURANCE Moves to the Cloud Progressive digitalization paves the way for businesses around the globe, we spoke to Sentry about how data and technology are changing the insurance industry Writer: Marcus Kääpä | Project Manager: Sam Love

138 | North America Outlook issue 02

FINANCE

nsurance companies are an important contributor to many organizations and small-scale businesses that are pitched in competition against the giants of their markets. In a world where larger companies serve to provide goods and services to a broad swathe of customers, often with fast delivery times, cheaper prices, and larger varieties, the smaller

business owner is not just competing, but also having to survive. Having the right insurance partner provides businesses of all sizes a competitive advantage. An aspect of business most accentuated by 2020’s coronavirus pandemic has been individual companies’ abilities to adapt to increasing digital means of operation,

and a shift to the online workplace. Sentry has been a key player of the insurance industry for more than 115 years. On the commercial side, they provide everything from traditional property and casualty to worker’s compensation and 402(k) services. On the personal side, they provide non-standard auto and motorcycle coverage. North America Outlook issue 02 | 139

SENTRY

SENTRY PROVIDES EXPERT CONVERSATIONS At Sentry, we’ve built our reputation on listening and providing assistance to all of our business customers. It’s in our DNA. And has been for more than 115 years. DEDICATED SERVICE Every company needs insurance protection for when things go wrong. But if you’re like us, you know there’s a bigger picture. We are here to help you find the right coverage, manage claims, and develop a proactive safety culture to minimize risks. INNOVATIVE OPTIONS

Jim Frank, Chief Information Officer (CIO), has been with Sentry since 2003, and transitioned from Chief Technology Officer (CTO) to the position of CIO last year. He has had the privilege of witnessing the growth of Sentry throughout the past two decades, and highlights what has differentiated the company from its rivals in the industry. “As a company overall, we take a more personal approach to how we do business,” Frank informs us. “We truly value having conversations–so we do just that. We engage our customers in substantive conversations. We listen to their unique challenges and their goals. Then we work with them to identify solutions and plan for the future.” Sentry also houses an innovative culture in its operation – the continuation to discover advanced solutions and provide its customers with better services sits as the 140 | North America Outlook issue 02

company’s standard of practice. It is the aforementioned personal approach that helps in this regard, as the firm is able to build and grow alongside its customers. Of course, as a business that drives forward with IT services, innovation is critical to stay ahead of the curve. Yet Sentry still retains its human edge shown by the personal and professional care it provides its customers. The firm has adopted cloud-based operations faster than that of the industry. This ensures it provides better availability and greater scalability with regards to services – Sentry can iterate and develop elements of its work a lot faster due to cloud-based technology. “Most insurance companies spend 50 percent or more of their IT budgets to maintain legacy systems – technology that may have limitations in accessibility or scalability,” Frank explains.

Let’s face it. Insurance is not a one-size-fits-all solution. At least not here at Sentry. We get to know you and your business, offering innovative solutions that make sense for you.

Jim Frank

Move to the cloud with the people who know how We embrace the power of change to create 360° value by putting cloud at the core of your business. Our approach puts your business needs first, creating industry-specific solutions to get you moved to—and benefiting from—the cloud now. We are honored to be a long term partner with Sentry in their modernization journey.

Let there be change

SENTRY

OneNeck OneNeck IT Solutions LLC specializes in multi-cloud solutions, combined with managed services, professional IT consulting services, hardware and local connectivity via top-tier data centers in Arizona, Colorado, Iowa, Minnesota, New Jersey, Oregon and Wisconsin. OneNeck’s nearly 500 technology professionals deliver secure, modern platforms and applications for organizations embracing data-driven transformation and secure end-to-end solutions throughout the country. OneNeck is a wholly owned subsidiary of Telephone and Data Systems [NYSE: TDS], a Fortune 1000® company, whose business units also include U.S. Cellular and TDS Telecom.

www.oneneck.com

“At Sentry, we are spending under seven percent on legacy technology because we’ve transitioned a majority of our systems to web- or cloud-based operations. “A recent Accenture study estimates 10 percent of insurance computing is being done in the public cloud. At Sentry – we have 20 percent of our capacity in the cloud, and we’re working to increase that every month.”

INDUSTRY INNOVATION Despite the obstacles posed by the past year, Sentry has been able to weather the storm of COVID-19’s effects on the industry thanks to an innovative approach to progressive digital services. “We already emphasize having conversations, being accessible to our customers, having a way to get a hold of us – whenever they need us. Over the years, that has led to establishing more sophisticated capabilities on the web, like being able to buy directly 142 | North America Outlook issue 02

through our customer-facing portals,” Frank continues. “Those types of capabilities to support our customers have always been there; it’s just that COVID-19 drew attention to our capabilities and our customers’ needs to a degree we wouldn’t have expected in a prepandemic world. “Because we had experience with these functions and had planned an infrastructure to support heavier use, it all stood up to the challenge and performed well.” This adaptation in the face of the coronavirus is no better exemplified than Sentry’s ability to make 95 percent of its workforce work in a remote digital capacity in a matter of days. With elements of Sentry’s operations built on modern systems, the company’s focus remains fixed to innovation over the maintenance of older systems. The lack of need to support legacy technologies means

that Sentry maximizes time efficiency and its resources on the advancement of the business. “And that means we can serve our customers better. We’re able to leverage our newer technologies to do things with greater accuracy and quite simply, with the right data, machines can figure that out faster than humans,” Frank elaborates. “For example, we’re able to run artificial intelligence models around things like how to predict price, or even how to predict the complexity of a claim. “We provide worker’s compensation insurance to many businesses in many industries. We can use analytics to predict what are going to become the more expensive and problematic claims, which allows us to get the right folks on it to service that claim faster. This results in a better experience for our customers and it helps us better analyze claims to determine moreeffective pricing models.”

FINANCE

www.oneneck.com

“WE CAN USE ANALYTICS TO PREDICT WHAT ARE GOING TO BECOME THE MORE EXPENSIVE AND PROBLEMATIC CLAIMS, WHICH ALLOWS US TO GET THE RIGHT FOLKS ON IT TO SERVICE THAT CLAIM FASTER”

North America Outlook issue 02 | 143

SENTRY

“AS A BUSINESS, LIKE MANY OTHERS, WE’RE FOCUSED ON GROWTH AND PROFITABILITY. AND WE’LL USE OUR TECHNOLOGY TO HELP DO THAT IN ALL THE WAYS SHARED. IT WILL MEAN INTRODUCING NEW PRODUCTS AND CONTINUING TO INNOVATE IN AN EFFORT TO BETTER SERVE OUR CUSTOMERS”

144 | North America Outlook issue 02

FINANCE

UNLEASH THE POWER OF YOUR DATA Accelerate apps, gain agility, and unlock insights with an Intelligent Data Platform that’s AI-Driven, built for cloud, and available as a service.

Discover intelligence

On top of this, Sentry is able to bring products to the market a lot faster than before. Previously, the process took the company 12 to 18 months, however, has subsequently reduced to a six-to-nine-month time frame – all due to the modern technologies utilized to handle larger quantities of data in shorter time. “Our board decided we needed to make a commitment to adopting and investing in new technology to position Sentry for success in the future,” Frank tells us. “Now we’re moving to cloud-based operations. It’s been a continual evolution that positions us well in the marketplace because it allows us to stay focused on innovating in ways that improve the way we do business.”

THE FUTURE OF INSURANCE For Sentry, company partnerships have never been more important. The transition of operations to the cloud

means that Sentry’s supply chain relationships are critical to its overall success. “In cloud-based capabilities, you blend Sentry innovation and products with supplier-provided infrastructure and services,” Frank elaborates. “That means doing business with companies we trust to adhere to the same quality and reliability standards we set for ourselves. As we continue to partner with leaders in the technology and services space, we make decisions based on reputation, market strength, and trusted vendors in this sector. “I can say with certainty that the list of companies we do business with are really the best in this space.” Looking to the future, Sentry aims to continue through the decade with a focus on the continued optimization of its operations. It strives to move away from its use of data centres and focus on cloud-based technology. “While we’re at 20 percent cloud

operations now, we’ll continue to look to increase that in 2021 and beyond. Our focus on migration to the cloud will be a guiding principle for us for the foreseeable future,” Frank explains and ends on the existing determination displayed in Sentry’s aims and goals. “As a business, like many others, we’re focused on growth and profitability. And we’ll use our technology to help do that in all the ways shared. It will mean introducing new products and continuing to innovate in an effort to better serve our customers.”

Tel: 800-473-6879 www.sentry.com

North America Outlook issue 02 | 145

HELLMANN WORLDWIDE LOGISTICS

COVID-19:

Rising to the Challenge Against the backdrop of the COVID-19 pandemic, we preview Hellmann Worldwide Logistics’ COVID-19 handbook and gain insight from David Bang, Global VP of Strategic Development at the organization Writer: Sean Galea-Pace Project Manager: Tom Cullum

146 | North America Outlook issue 02

SPECIAL REPORT

he COVID-19 pandemic has created a multitude of obstacles during the course of 2020. This has propelled businesses across the world to rethink operations and adopt agile approaches to business in order to deal with the ever-changing global situation. However, despite such disruption from both a human and a business perspective, a vaccine for the deadly disease has been announced and is being rolled out throughout 2021. With the vaccine now declared safe for us, the logistics industry is tasked with HELLMANN WORLDWIDE LOGISTICS 10450 Doral Boulevard, Doral, Florida, USA Tel: +1 305 406 4500

US-Marketing@hellmann.com www.hellmann.com

AIR FRANCE KLM MARTINAIR CARGO www.afklcargo.com

EMBALL’ISO USA

130 Keystone Drive, Montgomeryville PA 18936 Tel: +1 267 687 8570 Ext 104 Fax: + 1 267 543 6737

customercare-us@emballiso.com www.emballiso.com

HANHAA

Unit 507, Cocoa Building, The Biscuit Factory 100 Drummond Road, London SE16 4DG, United Kingdom info@hanhaa.com

www. hanhaa.com

MAESTRO CARGO

837 Patton Drive – Door C Chicago, IL 60666 Tel: 773.570.6432

www.maestrocargo.com

VALIDAIDE

Johan Huizingalaan 400 1066 JS Amsterdam The Netherlands www.validaide.com

COVID-19 VACCINE LOGISTICS HANDBOOK SPRING 2021

distributing the vaccine to the most vulnerable as efficiently as possible. Anticipated to be a mammoth task, the Pfizer vaccine for instance, is unable to travel above -70°C more than four times which means logistics companies such as Hellmann are vital. Some other vaccines are suitable to be transported at more modest temperature ranges like +2 to +8°C or -20°C, but transporting safely billions of doses globally in addition to all other vaccines and healthcare products as well as all other commodities based on

PRODUCED BY NORTH AMERICA OUTLOOK MAGAZINE

www.validaide.com The Netherlands 1066 JS Amsterdam Johan Huizingalaan 400

VALIDAIDE www.maestrocargo.com Tel: 773.570.6432 Chicago, IL 60666

North America Outlook issue 02 | 147

HELLMANN WORLDWIDE LOGISTICS

David Bang is the Global VP of Strategic Development at Hellmann Worldwide Logistics stronger economic return in 2021 and 2022, it will surely be one of the most challenging and critical temperature controlled logistics tasks we’ve ever seen. Logistics has been one of the industries that has undergone the most disruption. As an influential part of value chains, both within and across international borders, logistics firms facilitate trade and commerce while helping businesses get their products to customers. Initially, the impact of COVID-19 was felt in Asia as a result of the role the region plays in global manufacturing. With over 200 of Fortune Global 500 firms having a presence there, this meant that disruptions to manufacturing in the country then caused issues across global supply chains. For example, cargo was backlogged at China’s major container ports as travel restrictions led to a shortage of truck drivers picking up containers and ocean carriers cancelled sailings. Subsequently, the pandemic spread to the rest of the world and led to lockdowns and border closures which restricted the movement of goods worldwide. 148 | North America Outlook issue 02

For example, air cargo capacity significantly reduced globally and decreased by around 60 percent overall. Now capacity is slowly recovering although in many cases still volatile, and we have a monumental task in front of us to distribute COVID-19 vaccines from production to point of care for at least 70-80 percent of global population for herd immunity in every corner of the world, regardless of economic or geo-political bases. As a result, Hellmann Worldwide Logistics has compiled a COVID19 handbook which provides commentary from industry experts at EMBALL’ISO, Hanhaa, Air France-KLM Cargo, MIC Cargo and Validaide about the measures taken to distribute the vaccine and the major challenges to overcome. Founded in 1871, Hellmann Worldwide Logistics has become one of the largest privately-owned international logistics providers.

SQA SQA works with its client partners and their supply chains in over 70 countries annually, with over 1,000 quality professionals. SQA understands the complexity and challenges of a global supply chain and our clients count on us to extend their reach, uphold their name, and ultimately protect the patient. Annually, SQA performs over 3,000 audits, provides component inspection of over 1m parts at the source, and 50,000 hours of engineering supplier development. This occurs in the form of managed programs at supplier sites that include, but may not be limited to: audit, assessments, supplier development, part approvals, inspection, remediation, desktop evaluation and full time surveillance. We’re excited to share the SQA’s outsourced risk management “partnership”. We have boots on the ground worldwide allowing SQA to accommodate even the most complex supply chains.

www.sqaservices.com

HELLMANN HISTORY 1925 - In Germany, Hellmann was one of the first companies to replace their horse-drawn fleet with coal-powered trucks

2006 - Hellmann receives the coveted ‘Award of Excellence’ from the Global Institute of Logistics 1968 - With 20 years of post-war expansion across Europe, the company’s shares were transferred to the fourth generation, Klaus and Jost Hellmann

SPECIAL REPORT

SQA has a global footprint that supports critical supply chains. We are a leader in assessing, monitoring and improving supplier quality for our client partners. The partnerships SQA has created over the past 25 years have provided benefits for our clients integrated strategies where SQA supports on a flexible, long-term basis. For industries where quality survives!

For industries where quality survives

+1 800-333-6180 (USA) | improve@sqaservices.com | www.sqaservices.com

2027 - With the foundation of the legally independent business units Air & Sea, Road & Rail and Contract Logistics as well as the Holding company, Hellmann reacts to the changing market conditions and its own Group size - initially on a national level, from 2028 also internationally

North America Outlook issue 02 | 149

HELLMANN WORLDWIDE LOGISTICS Through its partner network, the organization is represented across the globe, with around 20,500 employees across 489 offices in 173 countries. Its range of services includes classic forwarding services by truck, rail, air and sea freight, as well as a comprehensive offer for CEP services, contract logistics, industry and IT solutions. David Bang is the Global VP of Strategic Development at Hellmann Worldwide Logistics. He recognizes that 2020 was a challenging year in the supply chain and stresses that lessons have been learnt. “From a supply chain and logistics point of view, the year 2020 clearly showed that, even with many advanced technology advancements, there are

150 | North America Outlook issue 02

“THE HANDBOOK ISN’T A CONSULTING OR ACADEMIC PAPER BUT RATHER PRACTICAL CONTENTS THAT ARE HELPFUL TO TRANSPORT THE COVID-19 VACCINES SAFELY, SECURELY AND COST-EFFECTIVELY FROM PRODUCTION SITES TO POINT OF CARES” – DAVID BANG , GLOBAL VP OF STRATEGIC DEVELOPMENT still many vulnerabilities in our global supply chain,” he explains. “There was the toilet paper fiasco as well as other consumables you couldn’t find on the local grocery shelves, PPE shortage, etc. However, let’s not forget that there have been nearly one and a half million lives lost globally (as of early December 2020) and millions of other

people’s lives have been turned completely upside and down. Although it is not just about the supply chain issue alone, we must learn and improve.” Most governments have responded to the crisis by designating ports, shipping and trucking services as essential and exempting them from

SPECIAL REPORT

The Pfizer vaccine is unable to travel at temperatures above -70°C, which means logistics companies, with capabilties such as Hellmann, are vital

lockdown rules. For example, the Indian government exempted the movement of cargo through ports, supply chains and the transport of essential commodities from lockdown rules. While lots of airports worldwide remain closed to passenger flights, most still remain open to cargo flights. Even prior to COVID-19, almost 30 percent of global vaccines annually had supply chain and logistics issues, according to GAVI. “And that was only for a two billion dose operation,” says Bang. “Now, with an almost 15 billion dose operation for COVID-19, we need to work and collaborate much better. Hellmann plays an important role in this and wanted to lay out a practical path forward that can benefit many others (even if some of them may be our competitors). “We are fortunate to have our partners and friends who are like-minded and came along with us for this project and we couldn’t have done this without them. This handbook lays out some practical areas we all can review and reflect on our own organization to improve and contribute positively to the big picture.”

Even prior to COVID-19, almost 30 percent of global vaccines annually had supply chain and logistics issues. “Now, with an almost 15 billion dose operation for COVID-19, we need to work and collaborate much better”

Bang points out that the handbook isn’t a consulting or academic paper but rather practical contents that are helpful to transport the COVID-19 vaccines safely, securely and costeffectively from production sites to point of cares, while also adding that Hellmann’s handbook caters to a wide demographic. Also, it covers multiple transport mode situations such as air, sea, and road as well as warehousing and last mile deliveries “You may be with a local government, a logistics company, a distributor, ministry of health, a vaccine producer, or a supplier to a vaccine producer,” he explains. “It’s important that they

are equipped with practical and costefficient guidance on how to prepare, execute and measure the cold chain logistics of COVID-19 vaccines for the top objective, product integrity and patient safety.”

HELLMANN WORLDWIDE LOGISTICS Tel: +1 305 406 4500 US-Marketing@hellmann.com www.hellmann.com

North America Outlook issue 02 | 151

SECTION 1 - LOGISTICS COMPANY INTRODUCTIONS EMBALL’ISO, Hanhaa, Air France KLM, MIC Cargo and Validaide provides an insight into its services and how its offerings help assist the healthcare sector with its toughest challenge – COVID-19.

Briefly introduce us to your organization and how it contributes to the healthcare industry.

EMBALL’ISO YANN MARTIN, GLOBAL SALES DIRECTOR As a cold chain specialist, EMBALL’ISO has been working closely with pharmaceutical laboratories, clinical trial operators, logistics companies, and last mile specialists to manage and control cold chain risks for 30 years. Founded in 1990, EMBALL’ISO has always strived to develop high performance products adapted to the needs of pharmaceutical laboratories as well as turnkey solutions for the temperature-controlled transport of pharmaceuticals.

EMBALL’ISO has been working closely with pharmaceutical laboratories over the past 30 years

152 | North America Outlook issue 02

During the last 30 years, EMBALL’ISO has expanded to four continents with eight factories (Brazil, China, France, Germany, India, Singapore, the UK, and the US) and 14 service hubs allowing both a global supply and – more importantly – the introduction of reuse networks for insulated packaging on an international level.

HANHAA HENNING POTTHARST, PRODUCT MANAGER Hanhaa, is a leading British Internet of Things (IoT) innovator and private LTE/5G network supplier. Our first integrated solution, ParceLive, is a real-time cargo tracking service that connects users via the secure Hanhaa XG network to live information about the location, condition, and security of their assets regardless of their country, method of transport, carrier, or scale. The healthcare industry continuously fights to solve the common supply chain management challenges it faces, including the lack of real-time package tracking solutions, optimizing time-critical shipments, and securing environmentally sensitive medicine. Unfortunately, the outcome of this problem often comes down to costly services for the end recipients. Patients, the most vulnerable category, become the bumpers for unforeseen circumstances in the supply chain. When a sensitive package such as an implantable medical device needs to arrive at its destination from the manufacturer to the patient, every hour counts. For blood from matching donors, hours turn into minutes. The same of course can be said for life saving vaccines. Here, it is vitally important to make the best use of precious time.

COVID-19 VACCINE LOGISTICS HANDBOOK

AIR FRANCE KLM MARTINAIR CARGO MARCEL KUIJN, GLOBAL HEAD OF PHARMACEUTICAL LOGISTICS Air France KLM Martinair Cargo is the specialized air cargo business of the Air France-KLM Group. We offer a worldwide network of 457 destinations from our two hubs, Paris Charles de Gaulle, and Amsterdam Airport Schiphol. Post-pandemic, our long-haul network covers around 100 destinations around the globe, which we are serving with more than 600 weekly frequencies. Currently, we are close to 6,000 cargo only flights. In February 2016, Air France KLM Martinair Cargo became the first major airline to receive the IATA CEIV certification, adhering to a program of continuous improvement, specifically dedicated to airfreight. Giving priority to the pharmaceutical segment, we provided commitment to distributing healthcare products all over the world over the years and contribute to the well-being of the population.

Air France KLM Martinair Cargo offers a worldwide network of 457 destinations from its two hubs: Paris Charles de Gaulle and Amsterdam Airport Schiphol

North America Outlook issue 02 | 153

SECTION 1 - LOGISTICS COMPANY INTRODUCTIONS

EMBALL’ISO

Pioneer of Reuse and Reverse Logistics As a cold chain specialist, EMBALL’ISO has been working hand in hand with pharmaceutical laboratories, clinical trial operators, logistics companies, and ‘last mile specialists’ to manage and control cold chains risks for 30 years.

High Performance Isothermal Packaging and Services Provider Founded in 1990 by its current owner and CEO, EMBALL’ISO has always strived to develop high performance products adapted to the needs of pharmaceutical laboratories as well as turnkey solutions for the temperature-controlled transport of pharmaceuticals.

Worldwide Network Within 30 years, EMBALL’ISO has expanded to four continents with eight factories (Brazil, China, France, Germany, India, Singapore, the UK, and the US) and 14 service hubs allowing both a global supply and – more importantly – the introduction of reuse networks for insulated packaging on an international level.

Reuse and Reverse Mutualised Network

EMBALL’ISO’s pallet shipper range showing their design flexibilty in container stacking

MIC CARGO EDIP PEKTAS, CEO MIC Cargo provides ground handling services for our airline partners at Chicago O’Hare International Airport. Our 12,000 square-feet three-chamber facility is the only GDP-certified complete pharmaceutical cooler at ORD. MIC’s continuous cool chain within our warehouse is also unique among ORD ground handling service suppliers. Our many carrier customers include the likes of Emirates SkyCargo, and Air China Cargo, while Air China recently won a new healthcare business as a result of their partnership with us.

VALIDAIDE EELCO DE JONG, MANAGING DIRECTOR

EMBALL’ISO collects insulated packaging after use, groups returns from different customers, and sends the packaging back to the nearest EMBALL’ISO service centre through the solution with the lowest carbon footprint. The packaging is then disinfected, repaired if necessary, and checked to ensure that it guarantees the same level of protection as the new packaging. This ethical model allows EMBALL’ISO’s customers to benefit from the economies of scale created by the grouped returns and means they no longer have to manage the packaging once it has been used. With an innovative reuse and reverse business model that has already proven itself, the EMBALL’ISO model is much appreciated by customers, and works well thanks to a large network and collection points in over 80 countries. EMBALL’ISO helps you reuse isothermal packaging, while saving time and money.

Dynamic Approach EMBALL’ISO’s cold chain experts help pharma companies, logisticians, and airlines select the right protection depending on the lane, stability data, and weather conditions. It is called a dynamic approach. Thanks to EMBALL’ISO, and TLX by EMBALL’ISO, a large range of products (premium+, premium, standard, and protective) from thermal blankets to pallet shippers, with phase-change material, customers can choose the isothermal solutions to fit its real shipment needs.

High Experience of Scalability EMBALL’ISO’s pallet shipper’s easy design allows expansion on a largescale to follow the COVID-19 surge, with no production quantity limits. The existing fleet can be increased quickly for COVID-19 vaccine shipments. Repositioning is most often made by sea, and at no extra charge for customers.

At a Glance • 180 employees

Validaide provides a digital platform to manage global distribution networks for pharmaceutical manufacturers and their logistics partners, helping to reduce transport risk and accelerate the approval of transport routes. Our Digital Lane Manager application includes Lane Assessments and SOPs (Standard Operating Procedures) that use the information available from our Capabilities Platform. On this platform, hundreds of logistics providers define and share information about their infrastructure and processes to handle pharmaceutical products. 154 | North America Outlook issue 02

• 30 years in 2020 • Eight production sites on four continents • 14 services hubs • Collection in more than 80 countries • Large range of isothermal packaging: from -80°C to +15°C/+25°C

www.emballiso.com

SECTION 2 - PREPARING FOR VACCINE DISTRIBUTION The distribution of the COVID-19 vaccine is an enormous task, perhaps the biggest the logistics industry has ever experienced. On the frontline, EMBALL’ISO, Hanhaa, Air France KLM, MIC Cargo and Validaide discuss the strategies introduced to ensure the efficient rollout of the vaccine.

What specific measures are you taking to prepare for, or support, COVID-19 vaccine distribution and logistics?

EMBALL’ISO YANN MARTIN, GLOBAL SALES DIRECTOR First of all, we’ve worked on our product portfolio: • New product development with high performance material and refrigerants (PCM Phase Change Material). • Adaptation of our existing range of products to new specifications. • Tests and validation under customer profiles. Then we decided to implement a COVID-19 taskforce to define our additional production capacities with strategic locations such as Indianapolis, Singapore, or Shanghai. We have the capacity to produce in our eight factories on four continents (North America, South America, Asia, and Europe) and it will help us to deliver quickly for our customers. Our already existing process allow us to increase quickly and scale production capacity. Raw material has been stored in advance and some specific plans as been built our key supplier to match various scenarios of scale up. In short: • Unique footprint matching worldwide pharma production for COVID-19 key production position in India, China, USA and Europe. • High experience of scalability: large capacities of production already existing. • Ability to rise production quickly: extension of actual production site in the existing production sites with well-established, controlled processes and know-how. • Already existing reconditioning facilities. 156 | North America Outlook issue 02

• Preconditioning facilities worldwide for quick implementation.

HANHAA HENNING POTTHARST, PRODUCT MANAGER While Hanhaa’s first integrated solution, ParceLive, is a real-time cargo tracking service, on the hardware side, we are diligently preparing our equipment to have the robust battery life and the wider temperature ranges including deep frozen. For the software, we are becoming more proactive and predictive based on massive amount of data we are collecting and have access to.

AIR FRANCE KLM MARTINAIR CARGO MARCEL KUIJN, GLOBAL HEAD OF PHARMACEUTICAL LOGISTICS In June 2020 we created an internal, cross-disciplinary task force with the goal of preparing for the distribution of COVID-19 vaccines and medicines. At that time there was little information available so we worked on different scenarios. Today we have a reasonably clear picture on what to expect. The task force worked on different domains including capacity (in the air and on the ground) and readiness of suppliers and outstations. One of the deliverables of the task force was a dedicated product for the distribution of COVID-19 vaccines. Besides the highest priority it also provides access to a 24/7 service center that we have set up specifically for COVID-19 vaccine shipments. Another deliverable was the capacity increase of temperature controlled storage rooms both at Paris Charles-de-Gaulle and Amsterdam Schiphol.

COVID-19 VACCINE LOGISTICS HANDBOOK

SECTION 2 - PREPARING FOR VACCINE DISTRIBUTION

MIC Cargo With an experienced leadership team and over 160,000 square feet of modern facility space, MIC Cargo provides the highest quality handling service for passenger, freighter and charter flights at Chicago O’Hare International Airport.

MIC CARGO EDIP PEKTAS, CEO A challenge of this magnitude requires multi-level collaboration and quick adaptation to new ways of operating. As a company, we reached out to clients such as Hellmann, Envirotainer, and Emirates SkyCargo – and also to some competitors – to formulate best practices to complement our existing GDP certification. Specifically, in the near future, we plan to have new freezer space for approximately 900 skids to accommodate the specific needs of COVID vaccines. We have calibrated our facility temperature control systems with enhanced risk-prevention measures, and we have implemented additional redundancies on mechanical and human resource level to ensure a stable environment. Since our people are our most valuable asset, and there is nothing more important than their safety and health, we have implemented workplace standards recommended by the CDC to prevent virus transmission and maintain healthy operations. Conducting our business requires our employees to interact with each other and our customers in person. To keep everyone as safe as possible and avoid any business closures, we are piloting a Bluetooth-enabled contact tracing technology called Contact Harald. This system can quickly and accurately identify and contact those who have been exposed to the COVID-19 virus.

We offer the only GDP-certified pharmaceutical cooler at ORD, and our unbroken in-facility cool chain is unique to MIC as well. These features, along with our commitment to quality and collaboration, make us the preferred choice of pharmaceutical and health care shippers and forwarders at ORD. We know that combining speed and flawless performance is essential, so we deliver streamlined processes and reduced turnaround times while maintaining the strictest safety and security standards. Our processes are tailored to customers’ individual needs, and we recognize that 24/7 availability of accurate shipment information is key to superior customer service. Any handler can move your shipments – we want to move your business to the next level of success.

VALIDAIDE EELCO DE JONG, MANAGING DIRECTOR Validaide is actively working with our global community of air carriers, Ground Handling Agents, and warehouse and trucking providers to ensure that pharma handling capabilities are defined and up to date on the Validaide platform. We also encourage these logistics suppliers to upload additional information about their facilities, such as images and certificates. The information available on Validaide supports freight forwarders in the planning and approval of COVID-19 vaccine transport networks, specifically to evaluate logistics suppliers and transport options. 158 | North America Outlook issue 02

Tel: 776-570-6432

MIC Cargo

Operating the only GDP-certified pharmaceutical cooler at ORD

Best-in-class quality with over 160,000 square feet of modern facility space

Providing the only unbroken in-facility cool chain at ORD

12,000-square-foot, 3-chamber cooler with next-generation control and monitoring technology

The clear choice for superior handling of pharma and health care at Chicago O’Hare

SECTION 3 - DISTRIBUTION CHALLENGES With the roll-out of the vaccine well underway, transporting it has come with its challenges. For example, the Pfizer vaccine must always be stored at a temperature below -94°C, which when transported to hot climates, cannot be 100 percent guaranteed, posing considerable challenges. EMBALL’ISO, Hanhaa, Air France KLM, MIC Cargo and Validaide examines the potential problems that could disrupt the roll-out of the COVID-19 vaccine.

What major challenges relating to the distribution of COVID-19 vaccines will need to be overcome?

EMBALL’ISO YANN MARTIN, GLOBAL SALES DIRECTOR

HANHAA HENNING POTTHARST, PRODUCT MANAGER

There are four main challenges to overcome: 1. Firstly, to maintain the right temperature till patient. With incoming vaccines such as the Moderna and Pfizer vaccines, the final distribution and administration remains a big challenge.

The distribution of COVID-19 vaccines is one of the most logistically difficult operations the world has ever seen. Not only will distribution be a chaotic task, but the storage conditions of the vaccine may prove to be even more troublesome. Pfizer’s vaccine needs to be stored at -94°C (-137.2F). Pharmacies don’t have freezers this cold, because no approved drug has ever needed to be held at this temperature. Even if it were possible for countries across the globe to manage this, the stability of the vaccine is not 100 guaranteed when exposed to slight climatic variations. With that being said, Pfizer is working on a powdered version of its vaccine in hopes of reducing cold storage requirements this year. The other leading candidate from Moderna and the National Institute of Allergy and Infectious Diseases could be kept at -20°C. Alongside this, the vaccine will initially be a target for theft and diversion due to limited supplies and high demand. Without efficient and cooperative regulatory systems, there is a much higher risk that inferior and counterfeit vaccines will appear on the market. Support and innovation are urgently needed to prevent substandard and counterfeit vaccines entering the supply chain and undermining trust in formal delivery mechanisms.

2. Secondly, the capacity. If billions of doses of vaccines have to be sent at the same time, there might not be enough aircraft capacity or isothermal solutions, while not even mentioning the other medicines that need to be shipped too. Multimodal shipments with sea shipments should be taken into consideration too. 3. Thirdly, in order to supply this vaccine, all stakeholders will have to work closely and collaborate. Storage capacity are not the same everywhere. There might not exist or be limited, High Quality Temperature Controlled AWB might not be available on charter flights. 4. Lastly, even if the vaccine distribution is a priority, the impact on the environment needs to be taken into account. Reusable Solution should be prioritised to avoid waste landfill. Reuse and Reverse Model like the one we offer is well adapted with less CO2 emission due to the light weight of the pallet shipper, reusability and scale up capacities. 160 | North America Outlook issue 02

COVID-19 VACCINE LOGISTICS HANDBOOK

Parcelive - a real-time cargo tracking and monitoring solution

North America Outlook issue 02 | 161

SECTION 3 - DISTRIBUTION CHALLENGES

Hellmann Worldwide Logistics Real-time and actionable transparency for your logistics flows at a fraction of the cost and with no complex IT set up. Air, ocean, road and rail. Domestic or international. All sizes. Various conditional requirements like geofencing, temperature, humidity, shock and tilt. From production sites to point of uses, through many handovers in between, Hellmann Smart Visibility help shippers and consignees transport their shipments like vaccines and many other sensitive commodities with confidence and peace of mind.

www.hanhaa.com/parcelive

MIC Cargo’s 12,000 square-feet three-chamber facility is the only GDP-certified complete pharmaceutical cooler at ORD

AIR FRANCE KLM MARTINAIR CARGO MARCEL KUIJN, GLOBAL HEAD OF PHARMACEUTICAL LOGISTICS In the beginning, the main challenge was the unknown... scenarios. At this point in time there is still uncertainty on precise timing and volumes so we will all need to be agile. Another challenge is the requirement to transport one of the vaccines at -80 degrees celsius. The large amount of dry-ice required for that made it necessary to review our processes and determine how we can safely increase the amount of dry-ice that we can transport in our aircraft. We succeeded to do so but it was not a small task.

MIC CARGO EDIP PEKTAS, CEO The biggest challenge is transporting billions of doses of COVID-19 vaccine worldwide and it is the largest and most important logistics effort in history. Considering the manpower and payload needed, plus the extreme temperature-sensitivity of the product, then factoring in the urgency of reducing the global impact of the virus, it adds up to formidable task – but also a tremendous opportunity.

162 | North America Outlook issue 02

www.hellmann.com

Among the major challenges are: • Most cargo travels in the bellies of passenger aircraft, and many of the usual routes are not currently operating due to reduced passenger demand. • The same reduction in demand has resulted in a reduction of manpower at airlines and many other cargo industry organizations. • Employees participating in this unique supply chain will need specialized training – for their safety and to ensure the integrity of the vaccine delivered to the public. • While the specialised packaging needed to transport and maintain the vaccine at sub-zero temperatures is currently in use, this packaging is not available in the quantities that will be needed for the vaccine transport. The same is true for the amount of warehouse freezer space that will be required at transfer and distribution points.

COVID-19 VACCINE LOGISTICS HANDBOOK

Transparency in real-time With Hellmann Smart Visibility you will receive all the information about the condition of your consignment, anytime, anywhere. Make transparency your added value. The intelligent way of tracking. Contact Henning Pottharst | Product Manager Smart Visibility Phone: +49-541-605-6373 | E-Mail: henning.pottharst@hellmann.com www.hellmann.com www.hanhaa.com/parcelive

“COVID-19 VACCINES ARE TEMPERATURE-SENSITIVE AND WILL NEED TO BE SHIPPED AND STORED IN TEMPERATURECONTROLLED ENVIRONMENTS”

VALIDAIDE EELCO DE JONG, MANAGING DIRECTOR A major challenge is ensuring the vaccines are stored in temperature-controlled environments. Ensuring product integrity will be critical, which can only be ensured with the right combination of thermal packaging and adequate infrastructure, equipment, processes, and trained staff during global distribution. All parties need to agree and provide approval on these topics for all transport routes, while also ensuring regulatory compliance. Additional challenges for the distribution of COVID-19 vaccines are expected to be related to capacity constraints in air freight and road freight, customs clearance and security.

MIC Cargos’s continuous cool chain within its laboratory study is also unique among ORD ground handling service suppliers As the number of passenger flights remains below preCOVID levels, air freight capacity and route networks are also significantly reduced. This needs to be addressed with additional freighter flights and a growing number of charter flights from forwarders. Governments will also need to define fast-track procedures to expedite the import clearance of COVID-19 vaccines. Finally, arrangements need to be in place to prevent tampering and theft of COVID-19 vaccines during global transportation. North America Outlook issue 02 | 163

SECTION 4 - ADVICE ON PLANNING OPERATIONS Pharmaceutical manufacturers must provide guidance to the logistics industry on supply chain planning to assist in the successful roll-out of the vaccine. EMBALL’ISO, Hanhaa, Air France KLM, MIC Cargo and Validaide offer its advice to pharmaceutical manufacturers keen to contribute to this global effort.

In light of these concerns, what advice would you give to pharmaceutical manufacturers and their suppliers (raw materials, CMO, 3PLs etc.) in order to plan and execute such an operation effectively?

EMBALL’ISO YANN MARTIN, GLOBAL SALES DIRECTOR The first thing would be to work on the stability of data of their pharma products. This allows us to make huge savings while offering not the most performant solution but the one that will be sufficient to their needs. Through our dynamic approach, we advise customers on the level of performance they need depending on lanes and stability data of the product. It is also important to communicate in advance on production and needs so that all actors (forwarders, packaging supplier) can adapt their production plan or services centres capacities, even if they’re already anticipated.

HANHAA HENNING POTTHARST, PRODUCT MANAGER To execute such an operation effectively will require a range of strong oversight tools to be in place before vaccinations are distributed. Multiple options are available, from technology-based approaches such as IoT and blockchain which would help prevent theft and assure the quality of vaccines. And with technology becoming increasingly more sophisticated and easily accessible by nefarious manufacturers and shippers alike, pharmaceutical manufacturers and their suppliers should identify pain points, run proactive tests and exercises to predict criminal behaviour, and, of course, put in preventative measures. 164 | North America Outlook issue 02

EMBALL’ISO was founded in 1990

Hellmann and Hanhaa recognizes that some companies, especially those the size of Johnson & Johnson or Pfizer, might feel the need to deploy entire armies in the fight against counterfeit drugs. Consider, for instance, that revenues from counterfeiting and diverting drugs accounts for around $200 billion, or 10 to 15 percent of the entire, global pharmaceutical market. Hellmann and Hanhaa notes that these pain points, while real, can be controlled by implementing Smart Visibility both upstream and downstream in the cold chain, or transit that requires end-to-end temperature control through transit. Not only does the Smart Visibility and ParceLive tracking system ensure compliance in this regard (and from between -30 to 50 degrees), but can also alleviate unnecessary and time-consuming war games by

COVID-19 VACCINE LOGISTICS HANDBOOK providing simultaneous, or real-time, updates on location, humidity, shipment breaches, unanticipated shocks, falls, tilts, and more. Despite all of these countermeasures, Hanhaa also notes the need to get out, and stay out, ahead of counterfeiters and diverters who are increasingly moving away from shipping actual counterfeit products and, instead, sending illegitimate ingredients to manufacturing facilities in order to produce fakes in country.

2. Lane Assessments

1. Digital Lane SOPs

3. Supplier Capabilities Capabilities Platform

AIR FRANCE KLM MARTINAIR CARGO MARCEL KUIJN, GLOBAL HEAD OF PHARMACEUTICAL LOGISTICS ‘Key to success’ It is also very important to communicate clearly on expectations in terms of quality, servicing and security to ensure that each party in the supply chain knows what is expected from them and there are no surprises.

MIC CARGO EDIP PEKTAS, CEO As noted above, at this point we do not know everything we need to know about the specific vaccine and what it will take to move it safely and effectively. But there are certain qualities that pharmaceutical manufacturers and their suppliers should demand from any prospective supply chain partners: The number one key is the potential partner must demonstrate the capability for, and a commitment to, open-source data sharing and collaboration.

Pharma Lane Management made easy

Accelerate transport planning, simplify change management and remain compliant with healthcare regulations www.validaide.com

The potential partner must have the proper facilities and the highly trained staff needed to effectively play their role in this critical effort. The potential partner must follow the existing industry standards and best practices for temperature-sensitive cargo. The potential partner must demonstrate an ability to modify their current existing processes (or quickly develop new ones) to meet the needs of unique shipments.

VALIDAIDE EELCO DE JONG, MANAGING DIRECTOR

A commitment to open-source data sharing and collaboration is essential

It is vital for pharmaceutical manufacturers to provide guidance to the logistics industry on supply chain planning and the thermal stability of their COVID-19 vaccines. A lot of this knowledge may still be evolving but any insights on thermal stability will support the distribution planning. A good example has been the information provided by Moderna on the temperature requirements for their mRNA-1973 COVID-19 vaccine candidate. This information can be used by manufacturers, freight forwarders and other partners to jointly define distribution networks as early as possible with adequate packaging solutions and the availability of sufficient transport capacity and infrastructure. North America Outlook issue 02 | 165

SECTION 5 - PRACTICAL VALUES EMBALL’ISO, Hanhaa, Air France KLM, MIC Cargo and Validaide provide an overview of its capabilities and what their respective organizations can offer to the logistics industry.

What types of practical values do you think your organization can bring to the table? The repositioning is made most of the time by sea and by air in case of urgent cases. As a small and agile company, EMBALL’ISO works hand in hand with customers. We identify needs, implement dedicated solution to customer, open new services centres or conditioning centres. This helps to boost development to new customers that can benefit from solution or network and then it benefits to the first customers with mutualized costs. This is how we boost the development.

EMBALL’ISO YANN MARTIN, GLOBAL SALES DIRECTOR As a small and agile company, EMBALL’ISO offers TaylorMade solutions and flexibility as the Reuse and Reverse Network. EMBALL’ISO collects insulated packaging after use, groups returns from different customers, and sends the packaging back to the nearest EMBALL’ISO service centre through the solution with the lowest carbon footprint. The packaging is then disinfected, repaired if necessary, and checked to ensure that it guarantees the same level of protection as the new packaging. This ethical model allows EMBALL’ISO’s customers to benefit from the economies of scale created by the grouped returns and means they no longer have to manage the packaging once it has been used. With an innovative reuse and reverse business model that has already proven itself, the EMBALL’ISO model is much appreciated by customers, and works well thanks to a large network and collection points in over 80 countries. EMBALL’ISO helps customers reuse isothermal packaging, while saving time and money. 166 | North America Outlook issue 02

HANHAA HENNING POTTHARST, PRODUCT MANAGER For all modes of transportation, regardless of sizes and temperature requirements, Smart Visibility has the right solution that is extremely user friendly and cost effective. It is why major pharmaceutical and medical device companies can easily deploy our solutions to their existing supply chain globally. Global COVID-19 vaccine logistics will have lots of variables such as locations, temperature ranges, transport modes, customs, temperature-controlled packaging types, and having a real time insight to all of these moving targets is one of the key values we bring to the table.

COVID-19 VACCINE LOGISTICS HANDBOOK AIR FRANCE KLM MARTINAIR CARGO MARCEL KUIJN, GLOBAL HEAD OF PHARMACEUTICAL LOGISTICS Air France Cargo and KLM Cargo both have initiated and actively contributed to a community approach at their own hubs Charles de Gaulle and Schiphol. With a collaborative attitude, we can contribute to better prepare other actors in the chain to the upcoming distribution of COVID-19 vaccines and drugs.

MIC CARGO EDIP PEKTAS, CEO Earlier this year, MIC handled 16 cargo charters of COVID-related supplies (PPE and other medical-related equipment). This included three pharma-only charters totalling 220 metric tons. MIC’s exclusive unbroken in-warehouse cool chain and GDP-certified, three-chambered 12,000 square-feet cooler kept these pharma shipments at the strict temperature and humidity levels required. Next-generation, fully-automated technology allows us to monitor the temperature of all pharma we handle 24/7. MIC recognizes the importance of partnership and collaboration with all our business partners. From top leadership to warehouse staff, we stress the importance of taking ownership of every shipment – handling medicines and vaccines as if we or our family members were the end patient.

VALIDAIDE EELCO DE JONG, MANAGING DIRECTOR The Validaide digital platform can help to accelerate the planning and preparation of COVID-19 distribution activities for manufacturers and forwarders in multiple ways. First, our Validaide Capabilities Platform provides direct access to information about infrastructure, equipment, and processes of many logistics providers. This helps forwarders and manufacturers to easily evaluate and select qualified logistics suppliers and transport routes. For example, Validaide users can easily check if freezers or cold rooms are available at airports in Sydney or Melbourne when COVID-19 vaccines need to be shipped to Australia. This supplier information is automatically combined with other relevant data on Validaide, such as climate data and flight schedules. This enables users to easily create digital Lane Assessments, which are a regulatory

requirement for healthcare shipments and particularly important for temperature-sensitive products. In a recent project with Hellmann Logistics we created Lane Assessments for more than 250 transport routes of a pharmaceutical manufacturer within a few days. This provided a major time saving, as traditionally it would have taken weeks or months to collect information from all relevant suppliers and create manual assessments in Excel spreadsheets.

Validaide’s digital platform is used to scale the planning of COVID-19 distribution for manufacturers and forwarders in a number of ways

North America Outlook issue 02 | 167

SECTION 6 - LOOKING AHEAD INTO 2021 With this year set to be one of the most challenging and demanding years ever for the logistics industry, EMBALL’ISO and Air France KLM provide guidance with the future in mind.

What are the other key things to be aware of during 2021?

EMBALL’ISO YANN MARTIN, GLOBAL SALES DIRECTOR Awareness of the destruction that human activities are inflicting on our planet makes it essential to move away from single use items, to stop throwing things away and to start reusing them. The COVID-19 vaccine distribution should not let it apart. Many pharmaceutical companies are exploring the potential for reusing insulated packaging. There are few calls for tender that do not compare single-use and reusable insulated packaging. However, reusing insulated packaging is viewed very differently depending on the customers, the suppliers, the types of packaging (active/ passive) and the countries. Suppliers of active insulated packaging or containers, which are inherently reusable and available only on a rental basis, eliminate the waste management problem. However, these products are heavy, very expensive to produce and rent, and are moved by plane (usually empty) in order to maximise their turnover rate. They have a significant impact on the environment, since they cause CO2 emissions into the atmosphere. Other hybrid models have been developed where the packaging supplier collects the passive insulated packaging at its destination and moves it flat, most often by boat. This is called reverse logistics. The environmental footprint is markedly smaller: moving by boat and 168 | North America Outlook issue 02

reusing insulated packaging managed by the supplier. Changes in maritime transport regulations are making it increasingly less polluting, with the use of cleaner fuel and more stringent waste filtration systems. The next step is to develop the shortest possible reverse logistics routes, without moving to the point of origin, but rather with local movement to the nearest possible location. This is only feasible with a dense network and service centres on every continent. Pharmaceutical companies also need a guarantee that reused insulated packaging will maintain the same level of performance. This means establishing a complete traceability circuit for the units and developing a cleaning and repairs programme, validated and managed by the passive packaging supplier and incorporated into its quality system. The next step is consolidating/ mutualising the recovery of insulated packaging from the various end customers. This will increase the number of units per sea container, reducing the environmental footprint and the cost, all in a virtuous system. Few suppliers on the market can offer such comprehensive solutions that consolidate end-customer units, as it takes time to create a global reverse logistics network. This is a fundamental business change for insulated packaging suppliers, with a major focus on Supply Chain activities to optimize return flows and reuse programs. Another benefit of this

COVID-19 VACCINE LOGISTICS HANDBOOK

“...PARTNERSHIPS WILL BE ESSENTIAL. “TRADITIONAL PARTNERSHIPS” BETWEEN ISOTHERMAL PACKAGING SUPPLIER AND LOGISTICIANS FOR EXAMPLE, BUT ALSO BETWEEN ISOTHERMAL PACKAGING SUPPLIERS” cooperation is the possibility of recovering and reusing an increasingly wide range of insulated packaging: from box pallets to pallet shippers, with water or PCM briquettes, and thus lowering costs for everyone. Reusing passive insulated packaging with a global return consolidation system helps pharmaceutical companies reduce their waste management, transport and purchasing costs while improving their environmental footprint, with less waste and lower CO2 emissions associated with the creation of new packaging and transport.

Last but not least, in the challenging context of COVID19 distribution, partnerships will be essential. “Traditional partnerships” between isothermal packaging supplier and logisticians for example, but also between isothermal packaging suppliers. This will bring synergies and make it possible to propose global solutions adapted to the challenges.

AIR FRANCE KLM MARTINAIR CARGO MARCEL KUIJN, GLOBAL HEAD OF PHARMACEUTICAL LOGISTICS Sustainability is an important topic for society and in the logistics industry. Air France KLM Martinair Cargo has recently launched the world’s first sustainable aviation fuel (SAF) program in the airfreight industry, enabling freight forwarders and shippers to reduce their CO2 emissions. Several of our key customers have already signed up. Another topic that will continue to grow in importance is (real-time) connectivity. Both on the commercial side by connecting forwarders directly to our digital services as well as on the operational side using container and tracker data. North America Outlook issue 02 | 169

THE FINAL WORD To round off each issue, we ask our contributing business leaders for their views on the same question

If you could offer one piece of advice for a young entrepreneur entering your industry, what would it be?

Mark Crosswhite President and CEO, Alabama Power "Be open to ‘left turns.’ It is OK to not have every step on your career plan mapped out. Sometimes a ‘left turn’ comes along and takes you down a path you never considered, and it turns out to be the best thing you ever did. Be open to the opportunity."

Scott Bissell CEO and Founder, TARA Energy Services “Resilience is key. To successfully grow a large corporation, one must hire smart people and allow them to have roles and freedom to make the necessary decisions. Without the right team built around respect, integrity, and trust - success will be hard to achieve.”

Grant Page Founder & Chairman, Magna Imperio Systems “Your idea is only as strong as the team around you and failure is natural on the road to success. Embrace both concepts and you will be fine.”

Matthew Tokarik Vice President, Subterra Renewables “Be decisive and take action. You do not need to make the perfect or optimal decision at the start, you just need to make a decision 170 | North America Outlook issue 02

and get started. You will correct your course as you go and be further ahead for doing so.”

Debra Poppas Vice President of Global Quality, PACCAR “One piece of advice: seek the best in people. This is summed up by the tale of the two travelers who both visit a village. The first keeps a negative outlook and so only sees such in others around them, moving on from the opportunities of the village, empty. But the second, who keeps a positive outlook, sees just as such in others, and so embraces the village and is welcomed into it. “The lesson of course is that what we see in people is determined, in large part, by what we expect to find.

So, when you go back to your office or participate in your next virtual call to work with your peers, look for in them the traits you’d most like to see and I believe that’s exactly what you’ll find.”

Paul Stephens Vice President of Purchasing and Wholesale, Arrow Truck Sales “Sales is challenging, but it is one of the most rewarding fields to enter into. If you have passion, determination and drive, this industry will reward you tremendously personally and professionally!”

Are you a CEO/Director with a company story to tell? Contact North America Outlook now!

PACCAR

SUPPLY CHAIN

See page

24 36 PACCAR

AT A GLANCE: PACCAR PARTNERSHIP QUALITIES

A NEW FRONTIER PEOPLE-CENTRIC BUSINESS

T INNOVATION, SUSTAINABILITY, AND PEOPLE-CENTRIC DEVELOPMENT IN THE TRANSPORT INDUSTRY

24 | North America Outlook issue 02

“We developed individualized One factor that truly makes PACCAR training plans for our global supplier the company it is are the hardquality mangers to improve skillsets working and skilled employees across and effectiveness in working with our all the company’s departments. Its suppliers,” Poppas tells us. employee-centric operation helps “This includes the American Society each individual feel like their own for Quality (ASQ) certification for boss at the same time as sharing quality engineers for 100 percent of a communal sense of company our supplier quality managers.” achievement. On top of this, another side to the “As the commercial vehicle company’s success are the many quality leader, we have world-class business partners that make up the employees,” Poppas informs us. smooth and efficient operation of the “We have a well- established Six supply chain. Sigma training program that includes “PACCAR works closely with our lean belt, green belt, black belt and supplier partners to ensure that our design for Six Sigma open to both products are the highest quality employees, suppliers and customers. and most efficient to manufacture,” We have trained more than 15,000 Poppas elaborates. belts globally.” Paccar is a member of the Automotive Industry Action Group (AIAG) which provides cost- effective training and collaboration opportunities with other OEM’s for best practices and knowledge sharing. In addition, we actively network and benchmark with leaders in other industries through Manufactures North America Outlook issue 02 | Alliance for Productivity and Innovation (MAPI’s) quality council, Conference Board Quality Council and Gartner Quality/Supply Chain.

The firm looks for the most reliable business partnerships to provide the best possible supply chain operation, therefore maximizing its potential when providing customers and clients with quality trucking parts and vehicles. • Global capabilities and global support; • Investment in technology and quality systems; • Less than 10 ppm (parts per million) defects or errors; • A commitment to Six Sigma; • Investment in capacity to support Paccar’s global growth;

• Reducing product complexity without compromising performance and quality; • Increasing design collaboration; • Jointly providing low-cost solutions for customers; • On-time delivery.

Writer: Marcus Kääpä | Project Manager: Tom Cullum

TEL: 510-536-5700 | www.rago-son.com

20 | North America Outlook issue 02

Innovation, sustainability, and people-centric development in the transport industry. PACCAR has told its story. Now, why not tell yours? Our bi-monthly magazine North America Outlook is essential reading for business executives wanting to keep up with the latest in global news and trends affecting US and Canada businesses across all industries. Reaching ever increasing audiences across the continent and beyond, your company can take advantage of this global exposure with a FREE article and FREE digital brochure, as well as access to further digital and print-based marketing tools that could transform your business. To share in this unrivalled opportunity, contact one of our project managers today!

BAR LOUIE | ELM COMPANIES

w w w. n o r t h a m e r i c a o u t l o o k m a g . c o m

KEYTRONIC

Issue 02

www.northamericaoutlookmag.com/work-with-us Offering a unique blend of high caliber design, engineering and manufacturing services

Complementing the production of North America Outlook, APAC Outlook, EME Outlook and Africa Outlook magazines, Outlook Publishing’s awardwinning in-house team is now utilizing these same

Outlook Creative Services

specialist production skills to offer a full and bespoke range of editorial, design and marketing services via its new Outlook Creative Services division. For more information on how we can work with you in providing a plethora of completely flexible and customizable production services, please visit: www.outlookpublishing.com/creative-services

DESIGN:

E D I TO R I A L :

Stephen Giles +44 (0) 1603 959 656 steve.giles@outlookpublishing.com

Sean Galea-Pace +44 (0) 1603 959 657 sean.galea-pace@outlookpublishing.com

Devon Collins +44 (0) 1603 959 661 devon.collins@outlookpublishing.com

Marcus Kääpä +44 (0) 1603 959 660 marcus.kaapa@outlookpublishing.com