The Mheda Journal

For the Third Quarter issue of The MHEDA Journal, we’re doing a feature we’re calling “Mentoring Success Stories,” so I’m talking to some MHEDA members about their training practices and mentoring processes. When I typically think of mentoring, I think of how it’s a good way to help a inexperienced person get to know the industry and the benefits that that person can gain from being exposed to a more experienced person who’s seen everything there is to see in the industry. The new person learns how to handle certain situations and all the different elements of the job.

But I think there’s another aspect of mentoring that too often gets overlooked. And that is, how the experienced person can find just as much value from the relationship. I spoke with Pam Jones at Flight Systems Industrial Products, who has developed a couple of different mentoring programs at her company. She’s in the process of completing a one-on-one mentoring program with a young employee, and the mentee has learned the industry and Jones has gotten something from it too. “The industry is starting to get to know her, and every time I hear them call to talk to her, I know they trust her. They’re comfortable talking to her. It makes me feel like I’ve accomplished something,” she said.

That’s a great point. The experience and knowledge transfer can be just as important to the mentor as they are to the mentee. And that doesn’t even touch on the new skills and procedures that an outside person can bring to the company and can teach to the mentor. So the benefits of mentoring are clearly a two-way street.

Obviously, it’s a huge time commitment, but I think it can be a mutually beneficial relationship and a good way to engage young employees. What do you think? How can a mentoring program work in material handling?

For more than a couple of years now, the value and validity of “going green” has been going on in the material handling industry. Some people say going green is a moral obligation to protect the environment. Others say it’s no more than a selling point to make people look eco-conscious but really doesn’t mean anything. For several years, the movement to go green in material handling has been the buzzword.

Scott Lee

However, according to Scott Lee, president of Conveyor Solutions in Schaumburg, Illinois, the movement is finally starting to get some traction. The biggest way to show customers savings from going green is through what Lee refers to as energy reduction systems. I’ll let him explain.

“It’s not terribly new—the government has been doing it forever—but it really wasn’t pushed out there in commercial world. We now sell customers on the idea of turning off their equipment when they’re not using it. Most customers start up their conveyor system when they walk in the building but don’t start using it for an hour or two. Then it’s like a bell curve, meaning that it’s super busy in the middle of the day and then almost empty at the end of the day. We shut off the parts not being used. It extends the life of the equipment and uses less energy, so there are huge gains to be made on energy reduction in the conveyor industry.”

In some cases, he says, those savings can result in a lightning-quick payback of just one to two months, depending on the system, of course. Thanks, Scott, for your insights. Pretty amazing stuff. So, once again, I’ll throw this question out there: is the green movement in material handling here to stay? What do you think?

After weeks of preparation, the First Quarter 2011 issue of The MHEDA Journal is now available online and being mailed to subscribers today. This was a challenging issue, mostly due to the breadth of our Annual Industry Forecast. We talked to dozens of material handling equipment distributors and suppliers in all segments of the industry to find out what their expectations are for 2011. You can read their full forecasts here, but the quick version is that 2011 should be better than 2010.

In addition, this issue also tackles issues like merging five independent companies under one brand, industry consolidation, niche marketing for distributors and much more. Meet the members of the 2011 MHEDA Board of Directors, including an in-depth profile of new MHEDA President Chuck Frank and his company, AHS Inc.

All this and more is in the First Quarter issue, housed at www.TheMhedaJournal.org, which will continue to be updated throughout the quarter with breaking member news, new feature articles, executive dialogues and more. We’re currently hard at work on our second quarter issue, which will be focused on MHEDA’s Annual Convention. I hope you enjoy this issue and hope to see you at the Convention in Arizona!

As 2010 comes to a close, we at The MHEDA Journal are already trying to get a head start on 2011. We’re brainstorming article ideas and calling members to find out the hot topics that are out in our industry that we should be writing articles about. (The list isn’t complete yet and we’re updating it all the time, so if you have any topics that you think MHEDA Members would gain value in reading about, let me know by leaving a comment below.)

One idea I did find intriguing came from a manufacturer of overhead cranes who I spoke with last week. (I’ll withhold the name for now since he doesn’t know I’m talking about him.) The topic was also broached my some distributors in our 2011 Industry Forecast (coming soon – look for it in January!), so I’m pretty sure it’s worth discussing in further detail.

The gist of the topic is this: How has the role of a distributor changed in the end-user’s eyes as a result of the downturn? As the manufacturer I spoke with said, “From an end-user’s perspective, they’ve hired distributors to do stuff, but my observation is what they hire them for is different now than it was five or six years ago. I think distributors are getting sharper and clearer about what exactly their customers are hiring them for.

He continues, “If I’m a distributor salesperson, I am a consultant. If I called myself a consultant, you’d pay me an hourly fee. But I don’t get paid an hourly fee, what I get is a commission basically if you buy my idea. I see end-users that don’t really recognize it for that. They put mileage on distributors for ideas and then they take those ideas and shop them all over the place. It’s gotten to the point where some distributors say, ‘I’m not going to go out to XYZ customer and specify all the equipment and then get my price hammered down because it’s not worth my time.’ But I think the issue there is what an end-customer is really hiring a distributor to do and I think it’s different than before. I think that end-users are hiring distributors to do way more things than just sell equipment these days.”

What do you think? Has a distributor’s role changed? If so, in what way? As I mentioned, we touch on this topic in our upcoming Industry Forecast, but if I get some feedback, then maybe we can turn it into a longer article. Any help you can give is appreciated!

While I was getting ready for work this morning, I happened upon The Early Show on CBS. Their correspondent was in a FedEx distribution center with boxes whipping by on conveyors in the background. It’s rare that I remember statistics from stories like this, particularly at 7:30 in the morning, but for some reason the particulars of this story stuck with me.

Today is Monday, December 13. It is the Monday before the last weekend before Christmas, which historically is the day of the year on which more packages are shipped than on any other day. This year, according to The Early Show reporter, 16 million packages are expected to be shipped today, a 12% increase above last year. (I tried to find a video clip to make sure my groggy mind remembered these numbers correctly, but I was unable to find it.)

This is good news for material handlers for two reasons. One, if you supply or integrate for logistics companies like FedEx, UPS, the postal service, or basically any retailer, it’s going to be a busy couple of weeks. You may want to make yourself available as downtime will come at a high cost to such companies. Quick response and availability will go a long way to solidifying your relationships with such customers.

Two, the increase over last year seems to indicate a return of consumer spending and consumer confidence. Those are good signs for general economic recovery, something that we all can support and are all looking forward to.  I already touched on this subject in an earlier blog entry, but it seems worth noting again, particularly in light of the economic doldrums that we’ve all suffered through for the last few years. Any chance to point out good news, I’m taking the bait. Happy holidays, everyone!

Over the weekend, I did most of my Christmas shopping. This is significant for two reasons. One, it means that for the first time ever, I’m not going to be scrambling at the mall on that last weekend before Christmas. Two, and more important for you, is that I wasn’t the only one out there. It was already pretty busy at the stores I was at, and early indicators say that increasing retail sales for this year are a good sign for the economy.

According to an NAW SmartBrief article, consumer purchasing accounts for almost 70% of economic activity in the United States. In November, the country saw a 6% year-over-year increase in retail sales, primarily boosted by holiday shopping. “This is a sign of recovering consumer confidence in the U.S. Such optimism could breathe life into the struggling economic recovery. The strong result surprised analysts, who had expected a 3.6% increase,” the article says.

When talking to distributors for this year’s Industry Forecast, which will be coming out in the print version of The MHEDA Journal in January, many people pointed to an uncertain economy as one of their biggest challenges for 2011. Well, if the retail spending, and the full parking lots here in Syracuse, are indeed an indication, then the economy is well on its way to recovery. Let’s hope it continues!

Have you seen anything that leads you to believe the economy is recovering? Or still floundering?

I know the “What Are You Thankful For” column is a bit of a cliché this time of year, but I think this year especially, it’s worth asking the question. Before I get too far into it, though, let me say thank you to all of the MHEDA member distributors and suppliers who took time out of their schedules to help us out with all of our publications this year. Special thanks to the MHEDA Board, particularly 2010 President Greg Morrison, and the MHEDA staff for taking more time than most to make MHEDA Media a success in 2010.

But enough about us. What are you thankful for this Thanksgiving? I didn’t do a formal survey or ask this question to members directly, but based on responses I received to the 2011 Industry Forecast (look for it in the next issue of The MHEDA Journal!), I was able to cobble together a list of things that distributors are saying “Thank You” for. 

1. A rebounding economy. Optimism has returned to material handling for the first time in a couple of years. 
2. Loyal customers. Obviously, loyal customers are important in any economic cycle. More than one distributor, however, said that purchases from one or two specific customers saved their cash flow and got them through the downturn.
3. Quality employees. Again, always a good asset to have, but amplified even more now. People are being asked to do more with less, and it’s a tribute to their work ethic and capabilities that companies are still able to compete.
4. Niche markets. Even during the downturn, there are certain markets (food, beverage and pharmaceuticals seemed to be the most often-cited) that were still spending. Concentration on such markets helped several members survive losses elsewhere.
5. Industry partnerships. Relationships with quality vendors, industry peers and organizations like MHEDA have distributors confident in the industry’s ability to return to the output of a few years ago.

I’m sure there’s plenty more out there that I missed. So, I’ll ask you: What are you thankful for this Thanksgiving? Enjoy your holiday, everyone!

I ran across this nugget of news today and found it interesting. Near Dehli, India, the government will soon make it mandatory for all vehicles to have radio frequency identification (RFID) cards to make payments along toll roads. According to this article in the Hindustan Times, Road Transport and Highways Minister Kamal Nath was quoted as saying, “Within 18 months, we will ensure that RFID is installed in every vehicle. It will be like a chip that you use for your mobile phone. You charge it with whatever amount you want and make the payment when required.”

Now this obviously is not a new technology, sounds like what’s called E-Z Pass here in New York and similar things in other states. And, clearly, it’s application in India doesn’t mean mandatory implementation is on its way here. I realize that. But I’m also envisioning a quicker, more efficient way to get through the toll plazas on my way back to Ohio from Central New York. If everyone was able to get through the traffic and avoid the lengthy backups that often occur now. That would be great.

Plus, it would be a boon for the RFID manufacturers who would instantly have a huge customer base to supply to. It’s too bad there isn’t some mandatory cure-all for other parts of the material handling industry. Though I will say, in talking to MHEDA members for our annual industry forecast, they say things are about to break loose in material handling and drive sales increases for much of the industry as end-users that have been sitting on old equipment finally cave in and buy new. So there is that to look forward to.

That was a very roundabout way of getting to my point, which is that sometimes it’s the little things that can make a big difference in turning a company around. Somewhere out there, someone is coming up with an idea—a new follow-up method or territory division or application for a product—that won’t look like much at first but will prove to be something big. Post-It Notes, for instance, started as a bookmark for someone’s choir hymnal. It may not even be something you have control over (a government mandate in this case).

I don’t know what that idea is for material handling distributors, but it’s out there somewhere. Hopefully in our industry forecast we’ll be able to stumble across a couple. Any thoughts?

After weeks of preparation, The Fourth Quarter 2010 issue of The MHEDA Journal is now available online and being mailed to subscribers today. This was a challenging issue, mostly because it’s so full of a wide variety of information.  This issue features a “Spotlight On Sales Success” and includes a collection of Sales Success Stories from material handling equipment distributors. Sales Success Stories are case studies of unique material handling equipment applications installed by MHEDA members.

In addition, this issue also tackles other sales and marketing topics of interest to material handling companies, including using vehicle wraps as a marketing tool, the importance of proper pricing strategies, identifying the personality of top salespeople and how to achieve sales success on the Internet. 

This issue also features a section devoted to forklift tires. Distributors and manufacturers discuss the complexities of the tire market and the impact of new competition. Learn how one distributor uses tires as a way to break into previously unaccessible accounts. If that wasn’t enough for one issue, MHEDA members also explain how to create an effective social media policy at one’s company and discuss how to implement culture change after an acquisition.

All this and more is in the Fourth Quarter issue, housed at www.TheMhedaJournal.org, which will continue to be updated throughout the quarter with breaking member news, new feature articles, blog entries and more. Take some time to peruse the new-look website, which allows for more frequent updates and better reader interaction.  

Rescue capsule (Hugo Infante/Associated Press)

The operation to rescue 33 miners trapped about 2,000 feet below the Earth’s surface in a Chilean copper and gold mine for 68 days is underway. Last night, the first miner made the journey up the rescue chute in the transport capsule and was greeted with rousing cheers from the assembled crowd. It was quite a heart-warming scene. Officials say they will continue to bring up one worker per hour for the next day or so to get all 33 men up safely. Here’s a good article to get answers to some rescue FAQ’s.

It was a great moment that would not have been possible without the material handling industry. The rescue operation is utilizing a crawler crane to insert giant metal tubes that reinforce the rescue shaft to make sure the capsule can move freely. For those who don’t know (I had to look it up on wikiMHEDA), a crawler crane is one that is mounted on a set of tracks and can remain stable with no outriggers, typically with a lift capacity ranging from 40 to 3,500 U.S. tons.

Of course, one could argue that moving the miners from the underground to the surface is the very definition of material handling—moving objects from here to there. And it’s true. This industry covers a broad spectrum of activity. At times like this, it feels good to play even a small part in an industry that, even though the general public doesn’t know much about it, plays such a large role in our world at large. That, too, is a very heart-warming thought.