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Global Industrial Robotics Market Soars to Unprecedented Heights

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Global Industrial Robotics Market Soars to Unprecedented Heights

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Projected to Surpass US$ 150 Billion Valuation by 2031 | More than 680 thousand Units Industrial robots Installed in 2022

The global industrial robotics market is expected to experience strong growth in the coming years, driven by increasing demand for automation, improvements in robotic technology, and the need to improve supply chain efficiency. The material handling segment is expected to be a key contributor to this growth, with the market projected to surpass US$150 billion by 2031. As e-commerce continues to grow, the demand for material handling robots is expected to increase, making it a critical area of focus for industrial robotics companies.

Global industrial robotics market generated revenue of US$ 18.2 billion in 2022 and is anticipated to reach the valuation of US$ 151.4 billion by 2031 at a CAGR of 27.2% over the course of forecast period, 2023–2031.

Industrial robots are playing an increasingly important role in a wide range of industries, from manufacturing and logistics to healthcare and the public sector. In its latest report on the market for industrial robots, Astute Analytica found that the global installed base of industrial robots will grew from 391.5 thousand units in 2019 to 690.9 thousand units by 2022. The analysis shows that the electronics/electrical equipment industry will continue to be the largest user of industrial robots, with an installed base of 177.2 thousand units by 2022. This is followed by the automotive and chemicals/pharmaceuticals industries, which are expected to have an installed base of 157.2 thousand units and 28.7 thousand units, respectively in 2022.

The Asia-Pacific region is expected to be the biggest market for industrial robots, with an installed base of 504.8 million units in 2022. This is followed by Europe (97.1 million units) and North America (55.0 million units).

The research indicates that there is a growing trend towards more technologically advanced industries such as automotive and electronics, leading to an increased demand for industrial robots that can handle complex tasks. Additionally, there is an increasing popularity of collaborative robots designed to work safely alongside humans in industries like healthcare, retail, and logistics in the global industrial robotics market. Developing countries are also emerging as growth markets for industrial robots, as multinational companies set up manufacturing facilities, driving demand for robotic technologies. Astute Analytica forecasts that the prices of industrial robots will continue to decline as they become more widely adopted, as seen in the 20% price reduction between 2016 and 2021.

Over 680 thousand Units Industrial Robots Installed in 2022 in Global Industrial Robotics Market

According to the World Robotics report, industrial robot installations reached a record high of 680 thousand Units in 2022, at a CAGR of 38.9% from 2023-2031. Worldwide annual robot installations between 2015 and 2021 more than doubled. Asia remained the largest market for industrial robots, with China leading the pack by deploying 268,195 units, an increase of 51%.

Japan remained the second largest market with 47,182 units installed, followed by the US and Republic of Korea. Europe saw a 24% increase in installations, with Germany, Italy, and France being the top markets. In the Americas, robot installations increased by 31%, with the US leading the way with 34,987 units installed. The automotive industry remained the top adopter, but other industries such as metal and machinery, plastic and chemical products, and food and beverage saw significant increases in robot demand.

Material Handling Robots Poised to Dominate Global Industrial Robotics Market, Projected to Contribute Over 50% of Total Revenue by 2031

Material handling robots are expected to generate more than 50% of revenue in the global industrial robotics market by 2031. Material handling robots are used to move and transport materials in factories, warehouses, and distribution centers, and their increasing popularity is driven by the growing demand for automation and the need to improve efficiency in supply chain management. The adoption of material handling robots is also supported by advancements in technology, such as the development of collaborative robots that can work safely alongside humans and the integration of artificial intelligence and machine learning algorithms that enable robots to perform more complex tasks.

With the continued growth of e-commerce and the increasing demand for faster and more accurate order fulfillment, the industrial robotics market for material handling robots is expected to experience significant growth in the coming years, making it a key area of focus for industrial robotics companies.

According to the US Bureau of Labor Statistics, the employment of material handling workers is projected to grow 4% from 2019 to 2029, with an increasing demand for faster and more efficient warehouse and distribution center operations. The growing demand for automation is also driving the adoption of material handling robots. In addition, the International Federation of Robotics (IFR) reports that the sales of material handling robots increased by 6% in 2020, reaching a total of 100,000 units sold worldwide. The IFR also projects that the market for material handling robots will continue to grow in the coming years, with sales expected to reach 238,000 units by 2025.

Competitive Landscape: Top 10 Players to Hold More than 36% Revenue Share | Strong Inflow of Investment is Coming in the Industrial robotics market  

The market is highly competitive, with vendors offering a wide range of products and services. However, competition is intensifying, as new entrants are entering the market and established players are expanding their offerings. However, this can make it difficult for established robotic companies to keep up with the latest trends and technologies. Astute Analytica’s analysis of the competitive landscape shows that the leading vendors are ABB Limited, Fanuc Corporation, Mitsubishi Electric Corporation and Yaskawa Electric Corporation among others.

Top 10 players in the market held over 36% revenue share as they offer a comprehensive range of products and services. The report also provides an overview of the major trends affecting the industrial robots industry. These include the increasing adoption of collaborative robots, the growing demand for cloud-based solutions, and the rising popularity of artificial intelligence (AI) and machine learning technologies. In order to sustain the intensifying industrial robotics market, market players adopting various growth strategies.

  • Boston Dynamics was acquired by Hyundai Motor Group for $1.1 billion in June 2021,
  • Embark Trucks: While not strictly an industrial robot, Embark Trucks is developing autonomous trucking technology that uses robotics and AI to improve safety and efficiency in the logistics industry. It raised $75 million in a funding round led by Tiger Global Management in June 2021.
  • Locus Robotics: The startup provides autonomous mobile robots for warehouse fulfillment. It raised $150 million in a funding round led by Tiger Global Management in September 2021.
  • Righthand Robotics raised $23 million in a funding round led by Menlo Ventures in 2020.
  • GreyOrange: This startup provides AI-powered robots for warehouse automation. It raised $140 million in funding in 2019 from investors including Mithril Capital and Blume Ventures.
  • Sarcos Robotics: This startup develops exoskeletons and other robotics systems for industrial and military applications in the global industrial robotics market. It raised $40 million in a funding round led by Rotor Capital in October 2020.
  • Berkshire Grey: The startup provides intelligent robotic systems for order fulfillment and supply chain optimization. It raised $263 million in a SPAC merger with Revolution Acceleration Acquisition Corp in Jan 2020.

Some of the Top Market Players Are:

  • ABB Limited
  • DAIHEN Corporation
  • Denso Corporation
  • Epson America Incorporated
  • Fanuc Corporation
  • Kawasaki Heavy Industries Limited
  • Kobe Steel, Limited
  • Kuka AG
  • Mitsubishi Electric Corporation
  • Yaskawa Electric Corporation
  • Other Prominent Players
IA SUN labor Automation Group Highlights Innovative Corrugated Converting Solutions at CCE International beckhoff
Archives, Global Trade Daily, Technology, United states news

Beckhoff USA Posts $134 M Revenue in 2022, Continues Relentless Growth Trajectory

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The trailblazer in New Automation Technology boosted sales by 33.4% in the U.S. while increasing market share, adding talent and expanding office footprint

Beckhoff Automation LLC generated impressive results in 2022, growing revenue to $134 million in the U.S., a remarkable increase of 33.4% over the previous year. Beckhoff’s strategic growth goes beyond the impressive sales figures – it crossed over into company footprint expansions and growing the U.S. team to 218 employees. President Kevin Barker attributes the successes to the growing awareness of PC-based automation benefits among technology leaders and continued digital transformation efforts at Beckhoff USA.

Beckhoff has already helped transform many of its customers’ businesses by implementing adaptive automation technologies in the field. Numerous adaptive manufacturing applications featuring the XPlanar “flying motion” system and the eXtended Transport System (XTS) took shape throughout the U.S. in 2022. The announcement of emerging technologies like the MX-System for cabinetless machine design and the new modular robot ATRO confirms Beckhoff’s relentless commitment to innovation and delivering cutting-edge automation technology.

Beckhoff USA continues the charge to deliver exceptional customer experiences by focusing on a strategic digital transformation. The company has invested in new business software and systems to enhance all areas, from sales and marketing to operations and customer support. Installation of a new automated storage and retrieval system (AS/RS), which began in late 2022, will further shorten lead and shipping times upon completion in mid-2023. Beckhoff achieved a 50% increase in local inventory in 2022 to buffer global supply chain challenges and is working to add another 50% increase in 2023.

To support this growth, Beckhoff USA expanded its executive team. In the sales organization, Beckhoff promoted Jake Schieffer to Vice President of Sales, Steve Boelte to Regional Director – Central, Don Shanklin to Regional Director – Sales and Process Improvement, and David Emory to Director of Strategic Sales, overseeing strategic industry efforts and the Beckhoff Integrator Group in the U.S. Heading up the technical team, Beckhoff tapped Daymon Thompson as Director of Product Management, Matt Lecheler as Director of Application Engineering, and new hire Kevin Manton as Director of Engineering.

Dedicated to mentoring and empowering young engineers, Beckhoff USA expanded its internship offering and doubled the program in 2022. After the program, Beckhoff hired 66% of the interns. This trend will continue as the company again doubles the number of interns in the program for 2023. The Associate Application Consultant position is another exciting opportunity launching at Beckhoff USA this year. As a part of this new program, recently graduated engineers will learn on the job and take on challenges in multiple departments at the automation leader’s offices across the U.S.

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Archives, Global Trade Daily, Market insight

Digital Commerce Platform Market Expanding at an Impressive CAGR of 12.6% between 2022-2029

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The digital commerce platform market is bound to display phenomenal growth with a CAGR of 12.6% at a global level and is estimated to surge from a valuation of US$ 3.41 Bn in 2022 to US$ 7.85 Bn by 2029.

In 2021, digital commerce platforms accounted for a 35% share of the global e-commerce market. According to the Future Market Analysis, the surge in the adoption of intelligent virtual store design solutions for seamless business encourages companies to implement online commerce platforms. The global digital commerce platform market has grown drastically, owing to increased customer digital literacy.

As per FMI analytical studies, the variation between the BPS values observed in the digital commerce platform market in H1, 2022 – Outlook over H1, 2022 Projected reflects a spike of 40 units. Moreover, compared to H1, 2021, the market is expected to propel by 27 BPS in H1 -2022. Businesses are effectively leveraging cloud-based and on-premises digital commerce solutions to sustain their businesses as the COVID-19 pandemic intensifies.

Key Takeaways

  • Over the last few years, digital commerce platforms have proven to have a positive impact resulting in acquiring a large customer basis, allowing service providers and retailers to increase sales and influence existing trends.
  • To streamline business processes, big data analytics has been widely used over the years. In the retail analytics market and e-Commerce market, data analytics applications are growing at an exponential rate due to ascertaining profits, losses, and purchases, and attracting a large number of customers based on their purchasing behavior.
  • The global digital commerce platform market has witnessed opulent growth, attributed to widening digital literacy among customers across the globe. With the spectacular surge in digitalization, demand for virtual platforms for easy business conduct is driving companies to encourage online commerce platforms.
  • The Covid pandemic intensified the use of digital commerce platforms at an exponential rate as businesses are effectively leveraging on-premises and cloud-based digital commerce solutions to sustain their businesses. Moreover, growth is likely to perpetuate even in the post-pandemic scenario.
  • A major application is in designing recommendation engines. Digital commerce platforms have proven highly useful in garnering massive customer bases, thus helping retailers and service providers expand their sales and dictate existing trends.
  • The historical period of 2014 to 2021 witnessed impressive growth in the digital commerce platform market with a surging CAGR of 12.2%. The market is anticipated to rise at a CAGR of 12.6% from 2022 to 2029.

Competitive Landscape

Shopify Inc., SAP SE, Oracle Corporation, Magento Commerce, Salesforce.com Inc., Big Commerce, WooCommerce, Sitecore, Kentico Software, and Unilog Content Solutions Pvt Ltd. are some of the key companies profiled in the full version of the report.

Business entities are leveraging digital commerce platforms to further virtual learning programs to better equip employees for future uncertainties. As the global virtual space expands, business entities are scrambling to incorporate the most advanced digital commerce software within their scope of operations. Compelling solution providers to constantly launch new products equipped with contemporary advancements.

More Insights into the Digital Commerce Platform Market

North America is anticipated to dominate the global digital commerce platform market, owing to the deep internet penetration and access to smart devices. As per estimations, around 70% of households have multiple streaming subscription services in the U.S.

The surge in demand for software maintenance, generation of green spaces for key vendors, and implementation services are on the rise in the U.S. A large existing base of digital media users and growing usage of smartphones is fueling the growth of the market in the U.S.

The East Asia digital commerce platform market is expected to portray to highlight lucrative growth opportunities in the digital commerce platform market. China comprises the world’s largest manufacturing hub with over 600 million internet users. Hence bolstering growth in the market.

Rise in shifting consumer preferences due to the increased use of digital commerce platforms by the urban population, the digital commerce platform market in China is growing at a rapid pace.

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Archives, Global Logistics, Global Trade Daily, Technology, Trucking

Self-Healing Trucks and 3 Other Innovations Set to Change Supply Chain Operations

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Global supply chains have struggled with labor shortages, material deficiencies, lack of transparency, safety hazards and many other challenges in the last few years. Modern problems require modern solutions. 

Self-healing commercial trucks and these three additional innovations could revolutionize operations and get the economy back on track.

The Science Behind Self-Healing Trucks

Self-healing materials traditionally consisted of small single-use capsules with healing agents inside, but new technology has emerged that can repair itself multiple times. It works through 3D vascular networks like a plant’s root system, sending the healing agent throughout the network to continuously repair damage.

Despite this recent advancement, it has proven difficult to create metals with self-healing properties due to their unique chemical composition. That’s why engineers are focusing all their efforts on polymer research. Self-healing polymers make it possible to create vehicles that can repair scratches, dents and other minor forms of damage.

Recent research on polymers has yielded promising results. They can heal rapidly and regain their previous properties, allowing vehicles to look and perform the same after being damaged. A unique intrinsic polymer can also repair itself automatically without any external influence.

Along with polymers, elastomer composites have also made self-healing cars possible. Elastomers consist of self-healing liquid metals that have proven effective in repairing small electronics. Engineers are working on applying elastomers to the two primary vehicle metals, steel and aluminum.

Self-Healing Truck Applications

These developments are encouraging, but supply chains have yet to see any self-healing truck applications on a wide scale. However, other industries can provide a glimpse of what these vehicles could do. For example, researchers are looking into self-healing polymer coatings for space and deep sea exploration, which are more dangerous environments.

If self-healing coatings can work in such extreme settings, it stands to reason they would be successful in commercial applications. Some have specific roles, such as corrosion protection or scratch resistance. Auto manufacturers could also incorporate these coatings into the existing polyamide compounds in engine covers, air bag containers and many other car parts.

Two other potential applications could be revolutionary: paint and rubber. Fixing paint scratches and blemishes can be expensive and time-consuming, costing up to $3,500 for professional repairs. Adding a self-healing polymer to the paint can help it withstand those scratches and blemishes, minimizing downtime and keeping fleet trucks on the road.

In 2017, researchers at Harvard University developed a self-healing rubber compound by combining covalent and reversible bonds. The result was a strong, flexible and transparent molecular rope that could repair itself and remain in good condition by evenly distributing damage.

Rubber tires typically crack or puncture because too much stress has built up at one small point. Spreading out the pressure makes the rubber much less likely to break under extreme stress. Adding self-healing rubber to commercial vehicles would reduce flats, accidents and delays.

Self-healing roads could be another application with a huge impact on supply chains and society. There is already an official patent for self-healing concrete that uses bacteria-induced calcite precipitation to fill cracks and prevent potholes. 

Other Innovative Supply Chain Technologies

Self-healing vehicles have great potential and get most of the spotlight because of their interesting applications, but other technologies could be equally important in the coming years. Here are three more innovations making waves.

Electronic Control Units

ECUs are a collection of small computers and sensors that can transfer information anywhere worldwide. Along with self-healing technology, they can help commercial vehicles become more independent and efficient. Fleet trucks have seen a major increase in ECUs in the last two decades, bringing people many small steps closer to autonomous vehicles.

As fleets implement more ECUs, each essential vehicle function will be under constant automated supervision. Remote diagnostics will get smarter, and so will the trucks. Once supply chain leaders master ECU technology, the next step toward autonomous cars will be to install multiple parts that can perform the same task when the original is damaged.

As of 2023, the highest level of vehicle automation that manufacturers have reached is Level 4 – high driving automation. Driverless taxis, automated public transportation and other commercial vehicles with limited applications fall under this category. They don’t need a human driver and can stop themselves if a system failure occurs. However, this technology is still in its infancy and is not ready for widespread adoption across the supply chain.

Self-healing technology and ECUs can work hand in hand to keep commercial vehicles on the road despite minor setbacks. Although completely autonomous cars might still be far away, these two advancements are big steps in the right direction.

Geospatial Technology

With material shortages and delivery delays plaguing the global supply chain, close monitoring has never been more important. Geospatial monitoring with GIS and GPS systems enables fleet managers to constantly supervise each vehicle, identify disruptions and mitigate them before they cause delays.

GPS also simplifies supply chains by helping managers identify the optimal drop-off and pickup locations, leading to quicker deliveries and lower shipping costs. Businesses can easily map their entire supply chains and find the best suppliers with the fastest routes. They can even monitor changing traffic patterns and other potential causes for delays.

Geospatial technology also plays a role in inventory management. Warehouse managers can see which units are ready for delivery and which vehicles would make the fastest delivery time. Remote geospatial sensors can also use their insights to predict buying surges and other supply chain trends, helping managers stay ahead of the curve.

Blockchain

Blockchain technology consists of decentralized, immutable digital ledgers that ensure complete transparency during online transactions. Nobody can change blockchain records once they are finalized. This technology started as a platform for cryptocurrency exchanges but can play the same role and improve visibility along supply chains. 

Blockchain records are ideal for establishing trust, traceability and continuity in supply chain management. During the height of the pandemic, hospitals in Britain used blockchain to secure vaccine shipments when people needed them most. This technology can bring the same value to other industries and products as it expands.

Strengthening Supply Chains One Innovation at a Time

The aftershock of COVID-19 is still apparent throughout the supply chain. Industry leaders face an uphill battle but can slowly strengthen it one innovation at a time. Self-healing trucks, ECUs, geospatial technology and blockchain are four such innovations. Look for them to play more important roles in the coming years.

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Archives, Global Trade Daily, United States news

On National Beer Day, New Data Show Tariffs on Aluminum Have Cost the U.S. Beverage Industry Nearly $1.9 Billion

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New data reveal that aluminum tariffs continue to drive up costs for American businesses and are a tax on hardworking American families. In the five years since Section 232 tariffs on aluminum were imposed, the American beverage industry has paid more than $1.893 billion in taxes.

There are more than 6,600 breweries in the United States, supporting more than two million American jobs and contributing more than $331 billion to the U.S. economy. Brewers and beverage producers pay a higher price for aluminum because rolling mills and smelters include tariffs in their prices — regardless of whether the metal is subject to Section 232 tariffs. Paying a tariff-laden price on all aluminum drives up costs for producers and makes consumer goods more expensive.

The research conducted by HARBOR Aluminum on behalf of the Beer Institute found that the U.S. beverage industry paid $1.893 billion in Section 232 tariffs on 9.042 million metric tons of aluminum since their implementation. Of that amount, only $126 million (7 percent) went to the U.S. Treasury. HARBOR Aluminum estimates U.S. rolling mills, U.S. smelters and Canadian smelters received $1.767 billion (93 percent) of the total by charging end-users – such as U.S. brewers – a tariff-burdened price regardless of whether the metal was meant to be tariffed based on its content or origin.

Last July, the CEOs of America’s biggest brewers sent a letter to President Biden calling on him to repeal Section 232 tariffs on aluminum. They said, “tariffs reverberate throughout the supply chain, raising production costs for aluminum end-users and ultimately impacting consumer prices.”

Imported primary aluminum and cansheet are critical to the U.S. beer industry as more than 74 percent of all beer produced in the United States is packaged in aluminum cans and bottles. In 2020, brewers bought more than 41 billion aluminum cans and bottles, making aluminum the single most significant input cost in American beer manufacturing.

The Beer Institute is a national trade association for the American brewing industry, representing brewers, beer importers and industry suppliers—an industry that supports more than 2 million jobs and provides more than $331 billion to the American economy. First founded in 1862 as the U.S. Brewers Association, the Beer Institute is committed today to developing sound public policy and to the values of civic duty and personal responsibility.

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Archives, Global Logistics, Global Trade Daily, Ocean Ports

Global Container Market Forecaster – April 2023

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The supply chain industry is hopeful of a better peak season this year and expects freight demand recovery in the Q2 of 2023, according to the recently published monthly container market forecaster for April by the online logistics platform, Container xChange. 

The container price sentiment index (xCPSI), a sentiment analysis tool by Container xChange that concurrently surveys supply chain professionals on their short-term price expectations, continued to show negative readings until mid-March. But the results consistently turned positive, reaching an all-time high at the beginning of April, when the index started showing confidence building for the coming quarter. 

 

While the industry sentiment is gradually turning positive, there have been many headwinds in the shipping sector in Q1. 

“The global container logistic ecosystem is like a spider’s web. One disruption does not linearly impact the knot. Instead, every disruption reverberates across the web—sometimes in unexpected directions. The increase in FED rates, the banking sector crisis, the strikes might seem concentrated in one region, but they have their impact across all trade lanes .” shared Christian Roeloffs, cofounder and CEO, of Container xChange as he commented upon the current state of the container shipping industry. 

Looking back at the first quarter of 2023

Overall, in the first quarter of 2023, North America registered the biggest decline in average prices for 20 ft dry cargo containers. After North America, the Middle East and ISC region witnessed the second biggest drop in container prices, followed by Southeast Asia. (See data below) 

Contract Negotiations in Q2 2023

Industry sources reveal that though the negotiations are due in May, shippers might delay these since the contract rates are still higher than the spot rates. So, the shippers are holding back to place themselves better during those negotiations. Another expectation is the reduction of contract tenures from one year to smaller time frames. 

Outlook 2023

Commenting on the outlook for the rest of the year, Christian Roeloffs shared further, “Despite avoiding a global financial and economic recession for now, the shipping industry is experiencing a freight recession due to the postponement of inventory replenishment cycles by retailers who overstocked. As we look ahead, we anticipate a subdued rebound in demand as retailers begin to deplete their excess stock in the coming months, leading up to the peak season.”

A survey was conducted recently (April 2023) with close to 664 supply chain professionals by Container xChange and asked how they perceived the peak season to develop this year in 2023 as compared to the last year. 

“This is an important time for NVOCCs and Freight forwarders who are diligently crafting their strategies to adapt to the current market conditions impacting consumer demand and freight demand. The anticipated changes in the industry, particularly after contract renewals towards the end of the first half of 2023, signal a crucial time for preparation. With cautious optimism, we foresee that this year’s peak season will be better than the previous year, as we leverage our experience and industry insights to navigate the challenges and capitalize on the opportunities that lie ahead.” commented Harry Duong, Pudong Prime, an international freight forwarding company, while sharing about the company’s forecasts for the rest of the year.

The industry is hopeful that the pent-up freight demand will be propelled by the beginning of the retail inventory replenishment cycles in the quarter after a slump in demand and overstocking by retailers. 

The Southeast Asia Story

Southeast Asia has emerged as a strong economic “partnership region” as the world looks to a more diverse sourcing and manufacturing trade strategy.

“The diversification of trade will prove to be beneficial for ocean trade because this will cause a boom to the regional trade within Asia. It will also lead to more locations adding to the direct trade from the region to North America or to Europe. So, diversification will play a role and in general, this will soak up more capacity than what we would have had on transpacific China to the USA or China to Europe alone.” shared Christian Roeloffs.

According to the Vietnam Customs data, Vietnam’s two-way trade in February was up almost US$3 billion over January despite February being a slightly shorter month. On the other hand, China’s exports to the EU totalled RMB 552.837 billion from January to February 2023, a year-on-year decline of 5.0%. 

According to the 2023 Container Shipping Outlook by Alix Partners published in March 2023, “Bangladesh, Malaysia, and Vietnam are already eating into China’s share of consumer goods exports and foresee China’s position eroding further as nearby countries increase their shares of supply chains and as government policies and business strategies outbound momentum. Mexico and Eastern Europe stand to gain over the medium term as more and more volumes shift out of China and to neighbouring countries.”

For more analysis, container market trends and forecasts, visit our product ‘Insights’ https://bit.ly/3TysMrT 

 

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Archives, Global Logistics, Global Trade Daily, Rail

Norfolk Southern Under a Regulatory Microscope 

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Train derailments, like accidents in any industrial environment, can cripple rail providers. Norfolk Southern understands this better than most. The Atlanta-based railway was riddled with accidents in December 2021, and when their derailment in East Palestine, Ohio occurred in early February 2023, releasing toxic chemicals and bringing forth a series of lawsuits, Norfolk Southern found themselves under the regulatory microscope of the National Transportation Safety Board (NTSB).

The entity initiated a special probe into Norfolk Southern’s safety culture, something quite rare for the NTSB. The Federal Railroad Administration (FRA) followed with a separate probe and at the center of Norfolk Southern’s practices (as well as many other large railroad operators) is something called precision-scheduled railroading (PSR).

Conceived to improve overall service and ensure operations are more efficient, PSR advocates point to some inarguable Norfolk Southern results – a 28% drop in total employment and increased revenue per each ton of freight moved.

As a result, the railway drove more money into dividends and stock buybacks thus pleasing investors.

Opponents of PSR, however, have intimated that the changes have not improved safety, and may have made existing situations worse. Overall derailments have decreased by more than half for major railroads since 2000. Norfolk Southern implemented PSR in 2019 and reported its fewest derailments in 2022 (compared to the previous decade). Yet, anecdotal evidence points to a greater “hurry up and get it done” mentality since Covid-19 that appears to be affecting some operators.

 A prominent, bipartisan rail-safety bill has been making its way through Congress. Norfolk management supports several provisions in the bill that will bolster notification, equipment, and training for first responders. Also addressed are more stringent requirements for tank cars with hazardous materials. There is a sizeable contingent that has spoken forcefully surrounding the overall industry’s safety culture, much of it predating PSR. In many respects, this is nothing new. But it is notable that the FRA has received more complaints in recent years citing working too many hours and safety incidents. To put this into context, roughly 200 were received in 2020 while approximately 500 were received in 2021. The number dropped to nearly 400 last year.

 

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Archives, Banking, Global Trade Daily

Staffing Shortages are a Competitive Risk for Banking Institutions, Educating Frontline Staff can Provide an Edge

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If the pandemic has taught us anything, it is that we can’t function without our frontline workforce. But the next time you walk into your local bank branch and see a lineup of four tellers serving customers, know that one of those tellers won’t be working there this time next year. The annual turnover rate for frontline bank employees has risen to 23.4%. Coupled with pandemic-induced staffing shortages across industries, including banking, customer service at bank branches and financial service call centers is subsequently at a nadir. To delight customers, banks need to recruit and retain frontline talent by providing real, substantive learning opportunities tied to career advancement.

As we stand now, customers across our country are paying attention to this shortfall in customer service. A wide-ranging survey of 229,000 banking customers from Rivel, a data-driven consultancy, notes that the number of households that believe their primary banking institution is not responsive to their needs has risen by an astonishing 212%. Branch closures, happening at double the rate compared to before the pandemic, are now moving banking institutions further from their customers than ever before.

While the connection between depreciated employee bases and customer service is no surprise, the consequences to brick and mortar banking might be dire. Staffing shortages that lead to poor customer service in 2023 pose a significant risk to banking institutions which are facing pronounced competitive pressures from FinTech rivals. A key competitive differentiator for financial services companies has always been the ability to provide unrivaled, personalized care to customers with a diverse workforce that looks like the communities the bank serves. When customers no longer feel like their bank knows them and their needs, FinTech firms are poised to press the perception that they provide similar services at lower prices.

So how do banks compete with the tech sector’s increasing encroachments on established institutions? They can double down on what has always set them apart: their people.

Lowering the turnover rate for frontline staff and upskilling team members to be ambassadors of the benefits of experienced banking institutions can resuscitate customer experiences. As can attracting a diverse and inclusive workforce that can make meaningful connections, forged in mutual lived experience, with their customers. Fortunately, the pandemic has placed renewed focus on the people functions of companies and the CHROs who lead them. Attracting, retaining, and training diverse talent is possible and the financial services companies that excel in this will fend off FinTech’s attacks and in doing so, rise above others in the industry.

What FinTech companies generally fail to realize about employee benefits is that employees don’t place significant value on unlimited paid time off (which people don’t feel like they can actually use) and cold brew coffee on tap. Employees do place value on a company’s commitment to a worker’s career aspirations – and financial services institutions can outperform here. Due to their sheer size, a frontline worker can aspire to a long and fruitful career at a banking institution, but this is possible only if the bank creates career pathways for them.

For instance, Desert Financial offers employees 100% tuition paid up front for skill-building courses and undergraduate degrees, and up to $10,500 tuition coverage per calendar year for graduate degrees or graduate certificates. Investing in workers and tying educational attainment to career growth demonstrates a tangible commitment on behalf of the employer to the employee, leading to a reciprocal commitment. This is how high-performing staff, those who are homegrown, can and will create a powerfully positive customer service experience, whether at a teller window or in a call center.

A culture of continuous learning is not aspirational, it’s simply smart business. Recent surveys have shown that 68% of workers would stay with an employer if the employer offered opportunities for learning and upskilling.

The remedy for 25% frontline turnover and a reduction in bank branches is to double down on investing in the team members who directly interact with customers: the frontline.

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Archives, Global Trade Daily

Global Agricultural Industry is on the Verge of Modernization with the Increasing need for Crop Production

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Fertilizer applicators is type of agricultural machinery, which is used for application of fertilizers in the agricultural field. Fertilizer applicators are of various types including sprayer, floaters, pull type, and other combinations of various types.

The fertilizer applicators are available in different sizes and shapes, depending on applications. For instance small fertilizer applicators is available for garden uses, and the sizes may vary from small to a large sized applicator used in the large agricultural fields. Increasing use of fertilizers in large agricultural fields is expected to push the demand for the fertilizer applicators, during the forecast.

Global Fertilizer Applicators Market Dynamics

The fertilizer applicators market is projected to grow during the forecast period, due to technological advancements and introduction of new fertilizer applicator equipment in the agricultural machinery market. The demand of fertilizer applicators is increasing in agricultural industry, from emerging countries. Modernization of agricultural industry and replacement of human labor in developed as well as developing regions is accelerating the demand for fertilizer applicators, from all over the world. Need for high output from the limited fertile land, is expected to push the new technologies application in agricultural industry.

Increasing mechanization in the agriculture sector is expected to push the growth in the research and development for the ease of agricultural operations, and rise in its output. Initiatives from the governments of the various emerging countries for the manufacturing in their own countries, for instance “Make in India” campaign by Indian government, is also driving the market for fertilizers applicators in India.

Fertilizer Applicators Market Restraints

High cost is always a challenge in the agricultural machinery and equipment market. The new development and innovations in the fertilizer applicators adds new cost of research and development. Therefore the newly developed and advanced fertilizer applicators are costlier than those of the conventional and old one. This is expected to be a restraining factor for the fertilizer applicators market growth.

The farmers and growers in the emerging countries are used to with the old and conventional fertilizer applicators, hence the resistance for acceptance of the new technologies and machinery is a challenging task for the manufacturers of fertilizer applicators.

Fertilizer Applicators Market Trends

New developments in the market have been observed with up gradation in technology. Large capacity and efficient fertilizer applicators are being developed for the ease of operations in the agricultural fields. Product differentiations with the competitive pricing has been seen in the marketplace of the fertilizer applicators. Increasing number of manufacturers from the countries such as India and China, are pushing the competition in the market. New shapes and designs of the fertilizer applicators are being developed for the improvement in its operation.

Global Fertilizer Applicators Market: Regional Outlook

Agricultural industry is going through a dynamic shift towards the modernization, especially in emerging countries such as India and China. The global fertilizer applicators market is anticipated to be dominated by Asia Pacific region with China leading the market both in terms of production and consumption. India is expected to witness high growth in demand for fertilizer applicators owing to the growth in the agricultural production and economic development in the country. North America is anticipated to hold significant share in the fertilizer applicators market and the growth in agricultural sector in the region and is anticipated to drive the demand for fertilizer applicators, in the coming years.

Investments and improvement in economy recovery in Brazil and Argentina is projected to drive the fertilizer applicators market in Latin America. Initiatives by various emerging economies in Middle East and Africa to diversify the economy is projected to witness significant growth in demand for fertilizer applicators during the forecast period.

The Global Fertilizer Applicators Market: Regional analysis includes:

  • North America (U.S., Canada)
  • Latin America (Mexico, Brazil, Argentina, Chile, Peru)
  • Western Europe (Germany, Italy, France, U.K, Spain, BENELUX, Nordics)
  • Eastern Europe (Russia, Poland, CIS)
  • Asia-Pacific (China, India, ASEAN, South Korea)
  • Japan
  • Middle East and Africa (GCC Countries, South Africa, Turkey, Iran, Israel)

The global fertilizer applicators market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The global fertilizer applicators market report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The global fertilizer applicators market report also maps the qualitative impact of various market factors on market segments and geographies.

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Research from Gartner® Predicts the Rise of Multiagent Orchestration Platforms to Direct Warehouse Robot Fleets

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Companies will need an orchestration capability that can assign work to the right robots based on near-real-time information and characteristics of the activity

A recent Gartner® report predicts that “by 2026, over 50% of companies deploying intralogistics robots in the warehouse will have a multiagent orchestration platform.” Multiagent orchestration platforms act like intelligent middleware that integrate and orchestrate work between various business applications, heterogenous fleets of operational robots, and other automated agents like doors or elevators within the four walls of a warehouse or distribution center operation.

GreyMatter™, from automated robotic fulfillment leader GreyOrange, coordinates and assigns the work activities of warehouse robots to maximize productivity, speed, accuracy and safety in end-to-end inventory fulfillment operations. GreyMatter matches robot agents according to work needs, including capacity and demand peaks, for seamless inventory orchestration.

GreyOrange recently announced an open API (application programming interface) to GreyMatter that enables any certified vendor’s robotic solution to seamlessly connect to the fulfillment orchestration platform, giving customers the freedom to choose the technology that best fits their warehouse environment.

The open API integration to GreyMatter echoes research from the Gartner report, “Predicts 2023: Supply Chain Technology,” published by Dwight Klappich, Christian Titze, Tim Payne, Amber Salley and Simon Tunstall:

Read the full report, compliments of GreyOrange, here.

Under the API, hardware manufacturers can easily incorporate GreyMatter to orchestrate their autonomous mobile robots (AMR) fleets and other execution agents at the customer’s site by joining leading hardware vendors such as HAI Robotics, Fetch Robotics (now Zebra), Mushiny Intelligence, Technica International, Vicarious and Youi Robotics, and others who are already part of GreyOrange’s Certified RangerTM Network (CRN) ecosystem.

In the report, Dwight Klappich details that:

  • In a survey done with Peerless Research Group, when current users of robots were asked if they intended to expand their robot fleets, 86% of respondents said they will.
  • Also, 96% of current robot users said that they planned to expand their use of robotics to new use cases.
  • For companies that have already invested in robotics, the vast majority said they will expand their robotics fleets and look for new use cases.