Is Your Company Secure On The Cloud? 5 Must-Knows To Manage Risks.

February 24th, 2021 Tim Mercer Leave a comment

Cybersecurity breaches have become all too common, putting public health, individuals’ private information, and companies in jeopardy.

With cloud computing prevalent in business as a way to store and share data, workloads and software, a greater amount of sensitive material is potentially at risk. Therefore, company leaders need to prioritize cloud security and know how to manage the risks, says Tim Mercer (www.timtmercer.com), ForbesBooks author of Bootstrapped Millionaire: Defying the Odds of Business.

“Cloud adoption is a business model that provides convenience, cost savings, and near-permanent uptimes compared to on-premises infrastructure,” Mercer says. “But cyberattacks continue to plague organizations of every size, and moving your IT infrastructure and services to cloud environments requires a different approach to traditional deployments.

“A private cloud keeps all infrastructure and systems under the company’s control, while a public cloud hands over the responsibility to a third-party company. In hybrid deployments, which most organizations adopt, some services are in the public cloud infrastructure while others remain in the company’s data center. Regardless of which cloud deployment you choose, you should know the cloud security basics or consult with cybersecurity experts before migrating to the new environment.”

Mercer offers five points company leaders need to know about cloud security to help manage their risks:

Shared resources for multi-tenancy cloud customers. “Multi-tenancy refers to the shared resources your cloud service provider will allocate to your information,” Mercer says. “The way the cloud and virtualization works is, instead of physical infrastructure dedicated to a single organization or application, virtual servers sit on the same box and share resources between containers.” A container is a standard unit of software that packages code and helps the application run reliably from one computing environment to another. “You should ensure that your cloud service provider secures your containers and prevents other entities from accessing your information,” Mercer says.

Data encryption during transmission and at rest. Accessing data from a remote location requires that a company’s service provider encrypt all the business’ information – whether at rest in the virtual environment or when being transmitted via the internet. “Even when the service provider’s applications access your information,” Mercer says, “it should not be readable by anyone else except your company’s resources. To protect your information, ask your service provider about what encryption they use to secure your data.”

Centralized visibility of your cloud infrastructure. Mercer says it’s not enough to trust service providers; you’ll also want to verify that your data remains secure in their host environments. “Cloud workload protection tools provide centralized visibility of all your information so you can get adequate oversight of the environment,” Mercer says. “Ask your cloud company if they can provide you with security tools such as network traffic analysis and inspection of cloud environments for malicious content.”

An integrated and secure access control model. Access control models remain a major risk in cloud environments. “Your provider should have cloud-based security that includes a management solution to control user roles and maintain access privileges,” Mercer says.

Vendor sprawl management with threat intelligence. “In complex cloud deployments,” Mercer says, “you may end up using different vendors, each with its own cybersecurity framework. Threat intelligence solutions can provide you with clear insight into all your vendors and the latest global threats that could put your business systems at risk. A threat intelligence tool will gather and curate information from a variety of cybersecurity research firms and alert you to any vulnerabilities in your vendor’s system.”

“For any organization that’s considering a complete cloud migration, understanding the entire threat landscape is essential,” Mercer says. “A team of cybersecurity experts can assist with the planning and oversight of your cloud migration to mitigate risks and establish the necessary controls.”

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Tim Mercer (www.timtmercer.com) is the founder of IBOXG, a company that provides technology services and solutions to government agencies and Fortune 500 corporations. He also is the ForbesBooks author of Bootstrapped Millionaire: Defying the Odds of Business. Mercer was inspired to pursue a career in IT as a consultant after he became a telecom operator while in the U.S. Army. After growing up in difficult economic circumstances in the rural South, Mercer achieved success as an entrepreneur, then recovered from the financial crisis of 2007-2008 after starting IBOXG. The company has accrued over $60 million in revenues since its inception in 2008.

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DHL Distribution Center Beefs Up Stafford Workforce with 577 New Jobs

December 19th, 2020 GT Staff Leave a comment

Stafford County’s Venture Business Park will soon be the home of a new 500,000 square-foot high-bay distribution center for DHL Supply Chain. The global logistics provider was confirmed to invest a total of $72 million in the project for its Real Estate Solutions unit at Stafford County’s Venture Business Park. This addition will continue supporting DHL Supply Chain’s initiatives in real estate and logistics engineering for the development of turnkey warehousing solutions.

“This significant investment and the addition of 577 new jobs come at a critical time when we are focused on rebuilding our economy and getting Virginians back to work,” he said. “The ongoing pandemic has underscored the value of supply chain management and delivery services during times of crisis. With our central East Coast location and advanced transportation infrastructure, our Commonwealth offers unparalleled advantages for businesses, and we are proud to support the company’s new high-tech operation in Stafford Country.”

In an announcement this week, Governor Ralph Northam confirmed the win for the project after competing with Maryland. Collaboration between the Virginia Economic Development Partnership and Stafford County ultimately secured the success for the state, along with a $1.7 million grant from the Commonwealth’s Opportunity Fund for the development of the facility. Additionally, the Virginia Jobs Investment Program will support education and training efforts for the facility’s employee pool, contributing funding and services to further develop the region’s added workforce.

“Virginia has strong transport links catering for all modes of transport, access to a high-quality workforce, and an above-average level of GDP per capita, which contributes to an attractive investment environment for DHL Supply Chain’s Real Estate Solutions unit,” said Carl DeLuca, Head of Real Estate Americas for DHL Supply Chain. “We are excited to build on the company’s presence in this market, and are grateful to Governor Northam and his team, as well as the local authority of Stafford County, for the support they have provided to DHL on this project. We look forward to developing a solution that will deliver 577 jobs to the region and further enhance the competitiveness and attractiveness of Virginia as a logistics hub.”

“On behalf of our entire Board, we are eager and excited to have DHL invest in Stafford, and we look forward to a long-term partnership with them in our community,” said Meg Bohmke, Chair of the Stafford County Board of Supervisors.

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How to Bring The Future Faster For Rural Education and Economic Development

December 8th, 2020 Marc Serber Leave a comment

Interview with Thomas P. , Thomas P. Miller & Associates Miller

What lessons did you learn from COVID-19 that TPMA and all companies should take with them and implement for the future even after we overcome the pandemic?

I think the reality is that the pandemic will be with us for a while, so we still have to be adjusting and making adaptations along the way. One thing that has been a lesson learned by all of us was that we all knew that online learning and virtual work would be happening in the near future, but one of the aspects of the pandemic which people overlooked is the fact that it brought the future faster to us. K-12 schools and higher education institutions have all had to adapt to e-Learning. That adaptation has caused parents or caregivers to also adapt.

In rural areas, the pandemic has also heightened attention on issues like broadband. In the past when we talked about broadband, all of us had sympathy for remote and rural locations. Now, however, we’re all impacted because of the heavy demand and reliance on it. When you’ve got five to six people in a house and some are trying to learn while others are trying to do work, the issue of broadband and digital connectivity becomes even more important than we previously considered!

The pandemic has also highlighted the different ways in which we are able to communicate. We used to rely on physical meetings to understand what was happening both, workwise and socially. Since we are now virtual, we’ve all had to sharpen our precision in communication.

From both a workforce and economic development standpoint, we’re really finding that adaptability equals survivability. For companies, and even employees who are able to adapt to the environment around them, I think that they’re not only going to continue finding success during the pandemic, but they will be more successful after it as well. It’s proving to be true more and more every day, especially as we’re looking at going into a second wave.

Do you have any tips for how to develop and cultivate relationships in an increasingly virtual marketplace?

One of the things that I’ve always thought was underappreciated in communication, and I think it’s been heightened in the environment which we find ourselves in now, is listening. Being able to listen in an active, intent way – Not just patiently listening until someone’s finished talking. I think listening in an active way is a skill that’s possible to hone and really develop in this kind of environment.

The other thing that we see is the human nature of this pandemic; that to some degree, there has been certain democratization to it, in the sense that we’re all vulnerable. So, it’s opened up channels and access to thought leaders and other leaders that previously we didn’t have. It’s also going to put additional stress and strain on certain systems, like higher education.

We’ve occasionally talked or written about the agricultural model that we all adopted on learning 140 years ago and that’s clearly an aspect of education that is front and center now. People feel much more comfortable accessing learning in an online way. I think we’re going to see a growth in competency-based learning, which is mastering specific competencies and moving at your own pace. I think that will be accelerated in the workforce world.

As far as the communications environment, I feel like the pandemic has really made the communications environment more casual. We’re seeing into people’s living rooms and their kitchens, with the husbands, wives, and kids running around. It’s just a much more personal environment.

So, I think the pandemic has cut down on some of the business aspects of relationships. It’s opening the door to a lot more comfortable interactions and a lot more personal one on one interactions than what we saw previously, even when we were face to face.

What strategies can teams use to find opportunity zones and foster economic development through crises such as recessions and pandemics?

There remains a lot of work to be done in opportunity zones.

At its core, an opportunity zone really involves a city or community or region, evaluating their own assets and presenting them via a prospectus so that it accentuates those assets and entices investment into the zone and via strategies that the prospectus lays out.

Strategies, in terms of needs that those communities have and the opportunity to develop them.

I think the intensity and uncertainty of the pandemic has been a distraction; it’s been tough for people to do the type of work to optimize their zones.

There’s been some recent news out that home prices in opportunity zones are rising at a slower pace than areas outside of opportunity zones, for example. One of the key things that I think communities are starting to realize is that these opportunity zones aren’t going to develop themselves. In order to do that, many of them have to get a better handle on the demographics, the businesses, what the housing environment is like, the whole nine yards!

Stakeholders need to take stock of what’s in the opportunity zones and come up with a strategy and implementation plan for success, because it’s not going to happen on its own. One of the things we are seeing in this COVID-19 environment is a real emergence of diversity, equity, and inclusion being focal points as to how those zones are developed. Gone are the days, I think, of when people just kind of accepted gentrification and said, “this is the way to go.”

I think people are really trying to look for ways to find inclusive, equitable development in these zones. A lot of communities are reaching out to firms like ours looking for help in doing that.

Where do you see Thomas P. Miller & Associates (TPMA) in the next five years?

We’ve survived the pandemic for eight months so far, knock on wood! After 31 years of operating in a non-pandemic environment, we will continue to live at the intersection of education, workforce, and community development. There’s no shortage of work to be done, and frankly, there’s no shortage of opportunities for individuals and businesses to succeed.

We will continue to look at the future and figure out how we can help individuals, communities, and in some cases whole states, position themselves not for the economy of the future, but the economy of now. That is going to mean more of a focus on skills, not just traditional degrees. It’s going to accentuate lifelong learning in all its various facets. I think TPMA has a vibrant future ahead of it.

It’s all about talent. As we continue to help others, we’ve got to help ourselves and be able to retain and recruit the best talent that has the ‘innovation DNA’ to live on the edge.

We know that right now, as in any moment of disaster or recovery, people are going to be looking out for firms like ours, for that “North Star.” So we work really hard to try and stay ahead of that curve and be innovative while also making sure our work is actionable now and not only actionable in the future.

It’s a holistic approach to recovery where we’re guiding clients through, both for now and in the future.

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Restructuring of the Logistics Industry in Response to COVID-19 Chaos

December 6th, 2020 Aishwarya Korgaonkar Leave a comment

In recent years, logistics has attained increased prominence within businesses due to rising awareness about its strategic, operational, and financial impact on the success of a business. With growing technological advancements, logistics companies are now transforming themselves from a traditional set-up to an IT as well as technology integrated approach to cut down the incurred costs and meet the service demands. However, the sudden outburst of the COVID-19 pandemic has upturned the normal functioning of the logistics sector, leading to the adoption of advanced technologies and safety measures.

Every kind of development impacts several things around the globe. In the same way, various advancements in marketplaces that appear unrelated can have a knock-on effect on how we work and do business. Similar to several other industries, the logistics industry is likely to be greatly impacted by the changes taking place around it. With time, the need for efficient logistics and supply chain has become more important than ever before.

What is Logistics and Why is it in Great Demand?

In recent years, logistics has attained increased prominence within businesses due to rising awareness about its strategic, operational, and financial impact on the success of a business. Logistics firms connect businesses to marketplaces by offering numerous services such as multimodal transportation, freight forwarding, warehousing, and inventory management. They are essential for global manufacturing, which is complex and multi-locational.

Currently, with evolutions in all verticals around the world, the logistics companies are transforming themselves from a traditional set-up to an IT as well as technology integrated approach to cut down the incurred costs and meet service demands. The logistics industry’s growth relies much upon its soft infrastructure including training and policy framework as much as the hard infrastructure.

In order to keep up with the fast-paced economic growth of the logistics sector, it is essential to implement advanced technologies. As per market experts from Research Dive, the growing need for operational efficiency is projected to boost the global logistics market growth in the upcoming years. In addition, developments in technology such as automated material handling devices like GPS, biometrics, etc. help businesses to work skillfully, fueling the global logistics industry growth across the globe.

How has COVID-19 Pandemic Affected the Logistic Sector?

Logistics firms, which are involved in transportation, storage, and flow of goods, have been directly impacted due to the sudden outbreak of the COVID-19 pandemic. As a vital part of value chains, both within and across global borders, logistics companies offer trade and commerce and help businesses deliver their products to customers. Disruptions in supply chains due to the pandemic have severely impacted competitiveness, economic growth, and job creation.

In addition, commotion in China’s manufacturing industries rippled through the supply chains across the globe during the pandemic. Shipments were backlogged at China’s main container ports, restrictions in transportation resulted in a dearth of truck drivers to pick up containers, and ocean carriers canceled sailings. Moreover, the shortage of components from China severely affected manufacturing processes overseas. Key industries worldwide, such as electronics, medical equipment and supplies, automotive, pharmaceuticals, and consumer goods were also greatly impacted due to the disruptions in supply chains during the pandemic.

One of the prime trends seen amidst the COVID-19 lockdown was a considerable rise in the e-commerce segment, which caused the business to re-evaluate their logistics footmark and pursue a decentralized approach that could provide enhanced proximity as well as the flexibility to key urban centers, and safeguard their supply chains in a better way against such unprecedented times like the COVID-19 pandemic.

During this worldwide turmoil, several companies have been working on providing technical knowledge to logistics companies, in order to help them implement advanced technologies to simplify their processes and also follow social distancing in the current conditions. Experts have observed that in the logistics industry, roadways and railways are less impacted by the COVID-19 lockdown as compared to waterways and airways. Owing to strict restrictions on global transportation, railways and roadways have emerged extremely vital to keep up the optimum supply chain, especially for vital cargo. During the COVID-19 pandemic, contactless interactions became the top priority, and an enormous upsurge in the demand for IoT smart locks for trucks and warehouses has been observed in many countries.

Numerous logistics companies are currently noticing a return of near normalcy from fast-moving consumer goods (FMCG) and food sectors while other industrial sectors are likely to take more time to recuperate. Industry experts believe that implementing innovative technologies can help the logistic sector to bounce back at an accelerated speed, in the post-pandemic world.

How has the Logistics Sector Molded itself amidst the COVID-19 Crisis?

The COVID-19 pandemic impact on the global logistics sector is producing ripple effects that can be observed across every other industry. Supply chains are witnessing increasing pressure as the free movement of goods has become more restricted owing to lockdown restrictions applied by government bodies worldwide.

The response of the logistics sector against the pandemic will significantly depend on how well other segments of the global economy are able to acclimatize with the new reality. However, despite the unprecedented conditions created during the COVID-19 pandemic, the logistics sector has managed to bounce back to meeting its customers’ needs; this depicts that the industry is capable enough to make a fairly quick recovery and grow stronger. The pandemic has resulted in protected, easy, contactless pickups and deliveries, which are currently highly preferred by numerous nations globally. Experts have predicted that the logistics sector will reinforce, gradually improve domestic demand, and revitalize the manufacturing sector once the COVID-19 pandemic relaxes. The government of many nations is presently working on enhancing logistic services and promoting the seamless movement of goods by using advanced technologies.

In a nutshell, the logistic industry, at present, is at the edge of adopting technology-led solutions, advanced infrastructure, and skillful resources, which, in the upcoming years, will help in streamlining logistic operations, thus guaranteeing the enhanced quality of services and customer management.

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Aishwarya Korgaonkar holds a bachelor’s degree in Information Technology from the esteemed Mumbai University. Being creative and artistic, she leaped into the field of digital marketing and content writing. Her love for words makes her write creative and spellbinding content that adds colors to the world.

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THE SECRET LIFE OF ROADS – AND THE FUTURE OF U.S. MIDDLE-SKILL JOBS

November 25th, 2020 Anne Kim Leave a comment

Skills of the Trade: Asphalt Technologists Wanted

There are 2.2 million miles of roads and highways that criss-cross the United States. Chances are that you’ve never thought about the blacktop asphalt beneath your wheels as you drive across the country, the state or to your local grocery store.

Asphalt is, however, the obsession of Allen Miller, who works at the Cedar Mountain Stone Corporation in Culpeper, Virginia, as one of five apprentices learning industrial maintenance and the emerging discipline of “asphalt technology.” Under the tutelage of a mentor at the company, Miller spends his days learning how to operate the asphalt plant that operates 24-7 at Cedar Mountain’s vast quarry during construction season; how to formulate asphalt so that it can withstand 20 years of freezes, thaws and the weight of thousands of tractor-trailers every day, and how to test it so that the quality of the state’s roadways passes the standards of the Virginia Department of Transportation (VDOT).

“We have to have certain gradations of stone, the right amount of dust, and not too much asphalt binder in it,” said Ed Dalrymple, Miller’s boss and the fourth-generation owner of Cedar Mountain Stone Corporation. “If we have all of that in the right proportions, the road’s going to last.” Moreover, under VDOT’s pay-for-performance requirements, well-built roads earn a bonus, while inferior blacktop will cost the company penalties. Hundreds of thousands of dollars are potentially at stake, which means Dalrymple is counting on Miller to do his job right. On any given day, you might see Miller out drilling core samples from freshly laid road beds, watching the computerized control panels monitoring the moisture levels of asphalt being mixed at the plant or taking 20-pound samples of asphalt to the on-site laboratory for analysis.

More Than Half of New Jobs Are “Middle-Skill” Jobs

Miller’s job may sound obscure, but it is one of millions of so-called “middle-skill” jobs – well-paying jobs that require post-secondary education and credentials but not a four-year degree – that have remained steadily in demand among employers. According to the National Skills Coalition, 52 percent of job openings are “middle skill” jobs, in fields as varied as construction, health care, information technology and a host of other fields.

Globalization and the rise of technologies such as automation have ushered in myriad anxieties about worker displacement, stagnant wages, and the loss of low-skilled jobs. The steady presence of middle-skill jobs could prove a potent buffer against these worries. For one thing, many middle-skill positions are in fields that cannot be easily outsourced or automated, such as construction, or where demand is growing, such as health care, thanks to the aging of the Baby Boom generation.

But Less than Half of U.S. Workers are Trained Up to the Middle Level

Moreover, there is a shortage of workers with the right skills and training to fill all of the middle skill opportunities currently available. Despite the prominence of middle-skill jobs as a share of the economy, the National Skills Coalition also reports that just 43 percent of U.S. workers are trained up to the middle level. This means that thousands of U.S. workers are potentially missing out on opportunities to earn good wages and move ahead in their careers. At the same time, employers are losing opportunities to grow their businesses.

Promoting middle-skill jobs – such as through apprenticeships, dual enrollment at high schools and community colleges and employer-sponsored training – would not only help businesses find the workers they need, it would create new opportunities for workers to get ahead without requiring the time and financial commitment of a four-year degree that ultimately may or may not have market value. The U.S. federal government could also help create millions of new middle-skill jobs by passing an infrastructure bill, which President Donald Trump and both political parties agree should be a top priority. According to a 2017 report from the Georgetown University Center on Education and the Workforce, a $1 trillion investment in infrastructure could create as many as 11 million jobs over the next 10 years while creating high demand for workers such as welders, “concrete strength-testing technicians,” construction managers, and construction health and safety technicians – all jobs that require a post-secondary credential but not necessarily a four-year degree.

Which takes us back to Allen Miller.

At the end of his four-year apprenticeship with Cedar Mountain Stone, Miller will hold a journeyman’s license in industrial maintenance as well as an associate’s degree from nearby Germanna Community College. In addition, he’ll hold a certificate in “asphalt technology” issued by the Virginia Asphalt Association, the trade association for the state’s road construction industry. He could stay at Cedar Mountain Stone or go elsewhere. Either way, he is destined to make a comfortable living that approaches six figures. He will also achieve this without a cent in student loans. “I’m going to be done with no debt, and I’m getting valuable on the job training along the way,” he said. “It’s working out great for me.”

As policymakers look for strategies to help the U.S. workforce adapt to the global economy, Allen Miller might be the model for the kind of worker the U.S. economy needs more of to succeed.

Editor’s Note: This post was originally published in September 2017 and has been updated for accuracy and comprehensiveness as of July 2020. Since the original publication of this article, Allen received an Associate’s Degree from Germanna Community College in December 2019. He continues to work for Cedar Mountain Stone and is teaching night classes in asphalt technology to the next generation of apprentices.

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Anne Kim is a contributing editor to Washington Monthly and the author of Abandoned: America’s Lost Youth and the Crisis of Disconnection, forthcoming in 2020 from the New Press. Her writings on economic opportunity, social policy, and higher education have appeared in numerous national outlets, including the Washington Monthly, the Washington Post, Governing and Atlantic.com, among others. She is a veteran of the think tanks the Progressive Policy Institute and Third Way as well as of Capitol Hill, where she worked for Rep. Jim Cooper (D-TN). Anne has a law degree from Duke University and a bachelor’s in journalism from the University of Missouri-Columbia.

This article appeared on TradeVistas.org. Republished with permission.

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Growing Need for Commercial Spaces to Propel Global Windows and Doors Market Size through 2026

November 9th, 2020 Global Market Insights Leave a comment

The window and door market is estimated to record significant growth on account of increasing home improvement and remodeling activities commenced worldwide. Customers are preferring customized windows and doors while remodeling their home interior. In fact, a major section of today’s population is inclining towards customized doors as it provides multiple personalized choices in terms of hardware, material, and color.

Studies reveal that buyers keep natural light among the key interior design features while purchasing a house. Demand for large windows with less frame and sliding glass doors will boost new prospects in the market over the forthcoming years.

Rapid urbanization coupled with surging product commercialization could positively benefit the windows & doors industry. Several private and public organizations are heavily investing in commercial and residential infrastructure development projects, which could play a pivotal part in expanding the urban sector.

In terms of material, windows and doors are generally made up of metal, wood, uPVC, and others. The other segment includes material like glass and carbon-fiber. Glass has managed to control a prominent portion of the business share owing to growing inclination towards outdoor living. There are multiple types of glasses available for glass windows with each type offering some peculiar features like the ability to enhance the beauty, decor & design of homes, or provide excellent resistance to wear and tear.

Sliding glass doors are considered a secure, energy-efficient, and safe alternative, making it popular among consumers that are planning to conduct a kitchen renovation or living room extension. Whereas, tempered glass is heavily used in commercial spaces like offices due to its remarkable durability.

As for metal doors and windows, they usually go well with brick exterior buildings & homes and modern grey or white rendered walls. Benefits like superior efficiency, durability, and excellent strength make metal a vital option for window frames and door by manufacturers.

Based on applications, the windows and doors market is mainly divided into residential and commercial. The commercial application segment is projected to record noteworthy gains on account of the proliferating number of commercial infrastructure developmental activities. Rampant growth in the construction sector could drive the demand for windows and doors over the forthcoming years.

Surging population growth and rising urbanization across developing economies have sprouted a need for commercial spaces like hospitals, offices, hotels, and shopping malls. Developments like these could play a crucial role in enhancing the window and door market outlook.

Meanwhile, rising sales in the real estate sector, especially across developing economies, coupled with proliferating demand for single-family homes could accelerate the adoption of windows and doors across the residential sector.

Source: Global Market Insights, Inc.

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THE TRADE COSTS OF GETTING A “D+” ON INFRASTRUCTURE”

August 13th, 2020 Robyn Boerstling Leave a comment

A Failing Grade

The American Society of Civil Engineers regularly evaluates the nation’s infrastructure needs, grading the quality and condition of the infrastructure system through its report card. The latest grade is D+.

At 13th in infrastructure quality, the United States ranks behind many of its biggest global competitors, according to the World Economic Forum Global Competitiveness Report. U.S. infrastructure needs more than a boost. A substantial multi-year investment of approximately $2 trillion is needed to close a 10-year investment gap.

From commuters to truckers to farmers, everyone pays the price for continued inaction. That includes America’s manufacturers who rely on every type of infrastructure to keep production operational, profitable, and globally competitive. Modern manufacturing depends on robust and integrated supply chains, the reliability of which depend on healthy infrastructure systems. One does not function effectively without the other; both must operate with a high level of precision to maximize productivity.

A Drag on Recovery and Growth

Every day, manufacturers accept raw materials and other inputs via truck and rail to process them into finished materials. End products such as finished chemicals, machinery, autos and now—even more pressing in today’s COVID-19 response—cleaning products, essential household items, medicines, vaccines and personal protective equipment, all leave manufacturing facilities around the country to be transported to customers both here and abroad.

Insufficient or inefficient infrastructure can raise businesses’ transportation costs, putting a dent in U.S. manufacturing competitiveness and adding to the costs of trade. As one manufacturer recently explained in congressional testimony, “If ports are clogged, trucks are delayed, power is down, or the internet has a lapse, productivity and customer service are impacted. Across the manufacturing sector, transportation logistics matter, and congestion—whether at a port or on a crowded highway—is waste that drives the consumer’s cost up like a hidden tax.”

The manufacturing sector accounts for 11 percent of U.S. GDP and manufacturers in the United States would like to see that footprint expand. Investments in transportation infrastructure that improve freight connectivity, capacity, performance and flexibility can help manufacturers expand sales at home and around the world, helping to lead U.S. economic recovery and renewal.

Connected and Energized

The infrastructure challenge is not limited to physical assets like roads and bridges. Continued investment and modernization of our nation’s broadband and wireless infrastructure is also critical to the success of today’s manufacturer. Technology is now embedded in all aspects of production as well as in the finished products themselves.

Manufacturing equipment is increasingly connected to the internet, making shop floors dependent on robust broadband networks. Innovative technologies have enabled a tremendous competitive advantage for U.S. manufacturers, and underscore the extent to which manufacturing and services are now intertwined. Manufacturers already invest in the most advanced and secure technology solutions to support their operations and products. Without a regulatory and policy environment that paves the way for additional investment in broadband and telecommunications infrastructure, manufacturers risk losing their competitive edge.

Similarly, for many manufacturers, energy is the largest and most important cost. The renaissance in U.S. energy production in all its forms—most notably natural gas—has not only kept energy costs low but also driven major new investments in manufacturing sectors. The nation’s network of pipelines, the electric grid and other energy infrastructure need to keep pace.

Manufacturers also require regulatory and fiscal policies that incentivize continued reinvestment of private capital in these infrastructure systems. Rail, energy and telecommunications infrastructure differ from other infrastructure sectors because they are almost entirely privately owned and operated. For example, private investment in freight rail has grown in recent years, averaging close to $25 billion annually. Burdensome regulations that create excessive red tape make project costs unaffordable and discourage private-sector investment in infrastructure, limiting the ability to innovate.

Bridging the Gap in Public Awareness

Many often miss the link between infrastructure investments and their daily lives. Heavy traffic when driving to work and the grocery store or delays in a delivery are just accepted as the norm—rather than seen as a consequence of underinvestment.

Yet the public routinely and unknowingly pays for the hidden costs of congestion, increased vehicle maintenance and permitting delays. Average citizens are often complacent about the condition of infrastructure because, for the most part, it continues to work—just not as well as it should.

The same may be true for the level of understanding about the link between modern infrastructure and a nation’s ability to competitively trade with the world. A country’s system for moving goods – from the highway to the rail, from the seaport to the airport – are intimately tied to economic growth through trade. For both reasons, the United States is long overdue for historic and transformational investments to ensure its core infrastructure makes the grade.

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Robyn Boerstling is Vice President of Infrastructure, Innovation, and Human Resources Policy at the National Association of Manufacturers (NAM). Previously, she enjoyed a six-year tour at the Department of Transportation in the George W. Bush Administration, working in three different roles under two secretaries.

This article originally appeared on TradeVistas.org. Republished with permission.

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Logistics in the eCommerce-Era

August 13th, 2020 Eddy Syaifulah Leave a comment

Plans of business expansions and holiday vacations have been shattered and ruined by the pandemic. Memories of Christmas dinner and going to the local store without precautions are engrained in our minds. The world’s behavior has shifted to adapt to the consequences of a pandemic.

Many people are experiencing losses in business, losing employment and many other effects. The global ecommerce has over 3.5 billion registered users in 2020, providing many companies to grow in a new business concept without the brick and mortar store, and additional office workers. Ecommerce business has allowed supporting businesses to grow, in particular, the logistics industry.

As one of the oldest and largest industries, logistics is predominantly owned and operated by the older generation who has operated businesses with the same routine and procedures. Many logistics companies are still practicing the traditional method of doing business, with back and forth communication to negotiate and coordinate detailed requirements. However, consumers in ecommerce era are now demanding faster decision-making and transparency. With the right technological solution to handle multiple procedures, many important tasks such as administration, operations coordination, financial background check and verification, etc. can now be handled by complex computation algorithms instead of humans.

Companies can reduce miscommunication, mishandling, minimize delinquent accounts and improve response of customer service levels by creating a logistics technology that can perform job functions, such as Customs Clearance Procedures, Sales-Marketing Cross Promotion, Driver Instruction, and Operation Procedures, Warehouse and Airline Operation Procedures, Invoice and payment reminder, and others. With one platform, all of these features to help companies consolidate all logistics functions in one place.

The logistics industry involves many various parties in running its operation such as Shipper, Domestic and International Transport, Consignee, Customs officers, Warehouse Personnel, Accounting and others. This is a full operation which needs to be administered and monitored in order to be executed properly. With the help of technology algorithm, multiple information will be able to be distributed and delivered to the right operator’s smartphone device and will speed up notifications, operations, and processes.

Another key feature is the Face/Vehicle identification processes, allowing convenience to Shippers and Transporters to better monitor pick-up and drop-offs of shipments. With integrated technology features, the logistics industry will see improved service levels and the benefits of transparent cost structures to each transaction.

The pandemic has accelerated the pace of logistics digital transformation. Many new changes are seen as a result of the world crisis, including an increase in ecommerce businesses, remote work, online mobile orders and deliveries, and other changes. In order to survive as a business that has shifted away from traditional concepts, it is important to minimize costs and make smart decisions.

For the logistics industry, most infrastructure job functions and operation administration tasks can be performed through a smart algorithm platform. With an all-in-one platform, information can be accessed on mobile devices or desktops and is available on all operating systems. Logistics in technology platforms will allow better communication, organization, transparency, and companies will benefit by being more cost-efficient, connected, and productive.

Archives, Global Logistics, Global Trade Daily, Rail, Trucking

RURAL INFRASTRUCTURE CONNECT AMERICA’S FARMERS WITH THE WORLD

July 29th, 2020 Sarah Hubbart Leave a comment

Infrastructure helps U.S. farmers compete in global markets while improving their productivity here at home.

On the Surface

America’s surface transportation system includes railways, roads, bridges and waterways. Each play an important role in moving farm products from where they are grown to customers around the world. And broadband Internet – another form of infrastructure – brings market information to farmers faster than ever before.

But: our deteriorating bridges and roadways threaten American agriculture’s dominance by slowing down shipments and making exports more expensive. Meanwhile, 60 percent of farmers say they don’t have enough Internet connectivity to run their businesses.

In his 2019 State of the Union address, President Trump included a call to action to rebuild America’s infrastructure. In July 2020, the U.S. House passed its first infrastructure package since 2016. Will this renewed interest in infrastructure from the White House and on Capitol Hill give U.S. agriculture a reason for optimism during an otherwise challenging year?

The Transportation Cost Edge

In 2018, $139.6 billion in American farm products were exported around the world, supporting more than 1 million jobs around the country, including 691,000 non-farm jobs, according to the U.S. Department of Agriculture. We sell more food, fiber and renewable fuel to world markets than we import, creating a positive agricultural trade balance.

Then the COVID-19 pandemic brought new uncertainties for America’s farmers. Total U.S. agriculture exports in FY 2020 are projected to fall to $136.5 billion due to a rollback in commodities like soybeans, cotton, corn, and wheat. And for soybeans, the trade situation is especially complicated. Aside from the impacts of the ongoing U.S.-China trade war, U.S. soybean exports are falling in part due to increasingly competitive Brazilian exports. Lower transportation costs are part of what gives Brazil’s exporters an edge.

The United States’ historically low cost of transport from farms to export markets has been one of the keys to its competitiveness and historical domination of the global soybean market. But even small differences in transportation costs can give South American soybeans an advantage over U.S. soybeans. Competitors like Brazil are starting to catch up with investment in roads and ports to make their agricultural products more inexpensive – and therefore more attractive to big buyers like China.

Last year, Brazil surpassed the United States as the largest soybean producer in the world while American exports faced duel headwinds of a strong U.S. dollar and Chinese tariffs. Meanwhile, U.S. market share of global soybean trade has actually been declining since the 1990s, in part due to changes in ocean freight rates and the development of Brazil’s transportation infrastructure since 2007.

Getting Food to Market: Roads, Bridges, Dams and Ports

Wherever it’s destined to go in the world, all food starts at the farm. Today in the United States, that often means moving millions of tons of commodities long distances over bumpy roads and structurally deficient bridges, and through crowded ports.

Investment in rural roads, bridges, locks and dams has not kept up with America’s modern agriculture industry. Trade in grains and oilseeds has grown on average between two the three percent per year since 1964. Yet, the United States spends less on transportation infrastructure than during any point since World War II. And infrastructure legislation of the past has often focused on population centers – urban and suburban areas – rather than rural communities whose economies depend on agriculture, and exports.

The situation appears dire once you dig into the numbers. Transportation research organization TRIP’s 2019 Rural Roads Report found that 79 percent of the nation’s bridges that are rated as poor or “structurally deficient” are rural. Altogether, the nation’s rural roads, highways and bridges face a $211 billion backlog in repairs.

Inland waterways move commodities like soybeans to domestic and international markets. But most locks and dams have exceeded their intended 50-year lifespan. The result? In 2017, 49 percent of barges experienced delays – at a cost of nearly $45 million.

In some places, short line railroads are the best or only option for moving agricultural products. Some rural rail lines have closed due to consolidation in the industry. That puts more reliance on trucking to move freight. But more truckers on the road, coupled with aging roadways, means more freight bottlenecks on highways across the United States. In 2016, truck drivers sat in stalled traffic for about 728 million hours at an estimated cost of $50 million.

Rural Broadband is the Next Infrastructure Frontier

Modern infrastructure includes digital connectivity. From following commodity markets to communicating with potential buyers, access to broadband internet is essential for farmers in 2020. Farmers leverage the Internet to improve efficiency, to connect with customers in real-time, and to implement precision technologies that optimize the use of inputs.

Yet, USDA estimates that 80 percent of the 24 million Americans who don’t have access to reliable, affordable high-speed internet are in rural areas. While USDA has ramped up its investment in telecommunications infrastructure, more needs to be done to ensure U.S. farmers remain on the cutting edge of the global economy.

The 2018 report from the Task Force on Agriculture and Rural Prosperity to the White House identified “e-connectivity” as a central pillar for improving the quality of life in rural America. The task force likened the expansion of broadband and precision agriculture to the construction of the U.S. Interstate Highway System of the 1950s, which catapulted productivity and transformed the nation’s economy. Investment in this area will help U.S. farmers compete with other nations like Australia, China and the Netherlands that are already seen as leaders in agriculture technology.

2020 Priorities Aligned

Leaders on both side of the political aisle understand that America’s roads, bridges, and waterways need attention. So why haven’t we done something about it?

Major infrastructure legislation has run into roadblocks at every turn in recent years. While both parties agree there is need for investment, there is little agreement on how to pay for it and what should receive priority for funding. That may change as members of Congress see overlap between infrastructure investment and COVID-19 relief. The agriculture community has been joined by the Western Governors Association, the National Association of Manufacturers and hundreds more organizations in pushing for a long-term infrastructure bill.

The last time that Congress passed a major infrastructure package was the “Fixing America’s Surface Transportation Act” in 2016 – and that expires on September 30, 2020, adding more incentive for Congress to act. In early July 2020, the House passed H.R. 2, the “Moving Forward Act”. Notably, the bill includes grants for rural infrastructure projects and expanding broadband access to under-served areas. But the $1.2 trillion infrastructure plan did not earn bipartisan support.

Where do we go from here? Last summer, the Senate Environment and Public Works Committee advanced its own infrastructure legislation with different priorities. Separately, Senate Commerce Chair Roger Wicker (R-MS) introduced a bill that would accelerate the build out of rural broadband infrastructure. The narrow window for action on infrastructure in 2020 is rapidly closing as we inch closer to the November elections.

Out of Sight, Out of Mind?

If you live in a city, perhaps you haven’t considered the long road that a soybean (or any other farm product) travels on aging roads, bridges, and dams. High speed Internet is something many of us take for granted. So it may be easy to overlook the role that infrastructure plays in helping American farmers find new markets and connecting rural communities with the world.

Renewed investment in roads and waterways, as well as e-connectivity, would make a big impact in rural communities that have been hit hard by the trade war and global pandemic, helping American farmers compete in the global economy.

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Sarah Hubbart provides communications strategy, content creation, and social media management for TradeVistas. A native of rural Northern California, Sarah has melded communications and policy throughout her career in Washington, D.C., serving in government affairs, issues management, and coalition building roles in the agricultural sector. She is an alum of California State University, Chico and George Washington University.

This article originally appeared on TradeVistas.org. Republished with permission.

Archives, Global Trade Daily, Special Reports, Stories

Can Emerging Economies Afford a “Green” Recovery from COVID-19?

May 11th, 2020 Oxford Business Group Leave a comment

The dramatic slowdown in industrial production, energy demand and transport activity in the first quarter of 2020 has led to significantly lower levels of air pollution, sparking debate over whether the coronavirus outbreak will lead to long-term shifts in consumer and industrial behaviours that could reorient economic policy towards sustainable development goals.

However, rising public debt, combined with significant capital outflows and reduced exports, will make financing green investments a challenge for many emerging markets as their governments seek viable strategies for kick-starting their economies once the disruption from the pandemic subsides.

A report by the International Renewable Energy Agency (IRENA) projected that accelerating investment in renewable energy could underpin the global economy’s COVID-19 recovery by adding almost $100trn to GDP by 2050.

In addition to helping curb the rise in global temperatures, the IRENA report claims that ramping up investment in renewable energy would effectively pay for itself over the long term, by returning between $3 and $8 for every $1 invested, and quadrupling the number of jobs in the sector to 42m over the next three decades.

While welcoming direct spending on infrastructure as a tool for stimulating economic growth after the coronavirus crisis, Thura Ko, managing director of Myanmar-based YGA Capital, cautioned that green energy projects should still be vetted carefully to ensure they are well planned and cost-effective.

“This is particularly important if the government has had to resort to emergency sources of funding, such as borrowing, grants or even quantitative easing. Certainly, if a green energy initiative makes sense and is efficient, then the government should initiate investment there – but not all green energy initiatives are efficient,” Ko told OBG.

As governments consider the role that investment-linked to sustainable development goals could play in post-pandemic stimulus measures, recent polling data indicates that voters across emerging and developed economies are broadly supportive of a “green” economic recovery from COVID-19.

In a survey conducted by Ipsos across 14 countries in April, 65% of respondents said it was important for their government to prioritize climate change mitigation actions in their post-COVID-19 recovery strategies. The figure was as high as 81% in India and 80% in China and Mexico, and fell as low as 57% in the US, Germany and Australia.

Green commitments in the “yellow slice”

Almost all countries globally have ratified the 2015 Paris Agreement, committing them to reduce carbon emissions with the aim of ensuring that global temperatures do not rise more than 2°C above pre-industrial levels.

This includes all countries in the “yellow slice” of the global economic pie: those high-potential emerging markets that makeup Oxford Business Group’s portfolio.

The 10 countries of the ASEAN bloc are committed to collectively meeting 23% of their primary energy needs from renewable sources by 2025.

However, the transition towards renewables in South-east Asia is complicated to some extent by the region’s plentiful reserves of coal, which are viewed by some policymakers as a reliable and cost-effective option for quickly scaling up generation capacity to meet domestic power demand.

Prior to the outbreak of COVID-19, China and Japan were ready sources of finance for coal-powered energy projects in the region, but there are some indications that this is changing.

In April, two of Japan’s largest banks – Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho – announced commitments to curb their financing of new coal power projects under renewed pressure from environmental groups.

Since January 2017 Mizuho, SMBC and fellow Japanese bank Mitsubishi UFJ Financial Group have accounted for 32% of direct lending to coal power plant developers, so Japanese banks’ decisions to rein in lending to the segment will create a significant gap in the financing ecosystem for such projects.

Elsewhere, GCC countries have made steady progress in adding to their renewable energy capacities, in tandem with efforts to diversify their economies away from dependence on hydrocarbons.

The UAE has been at the forefront of this transition and is now home to approximately 79% of installed solar photovoltaic capacity across the GCC’s six members. The country aims to generate 44% of its domestic power needs from renewable sources by 2050, the highest proportion in the region.

Meanwhile, 10 countries in Latin America and the Caribbean – led by Colombia – have set a regional goal of meeting at least 70% of electricity needs from renewable sources by 2030.

In Africa, where 600m people still do not have access to electricity, IRENA has proposed grid interconnections and the development of regional energy corridors as viable mechanisms for extending low-cost wind and solar energy to all countries, as well as enabling cross-border access to hydropower and geothermal energy.

Funding the transition

While climate change can be viewed as a systemic risk to the long-term development of emerging economies, it remains to be seen if governments in such countries will go beyond prior commitments to incorporate large-scale investments in green energy and infrastructure into their post-COVID-19 recovery strategies.

With business and household demand expected to remain depressed for some time after the worst health effects of the crisis subside, policymakers will be required to enact further policy measures to stimulate economic activity.

“If stimulus packages simply return countries to where they were before COVID-19, we will face the same problems tomorrow that we faced yesterday: low productivity, high pollution, and locked-in, carbon-intense economic structures,” Stéphane Hallegatte, lead economist of the World Bank’s Climate Change Group, told OBG.

“The most efficient stimulus packages will be the ones that are designed to create many jobs and support economic activity over the short term, but also get economies on track for rapid and sustainable growth post-COVID-19. Countries can use this spending to make them 21st century-ready by investing in developing the skills of their population, but also in a modern, zero-carbon infrastructure system and a healthy environment.”

If required investments can be catalyzed, green energy and infrastructure development can be particularly effective at addressing depressed demand because they can create a relatively high amount of jobs while also laying the foundations for sustainable long-term growth.

World Bank data indicates that mass transit projects, building retrofits to enhance energy efficiency and renewable energy plants are much more effective at job creation than fossil fuel projects. Looking further ahead, such projects should contribute to lower air pollution, which should simultaneously help to lower mortality rates and boost labor productivity.

Unlike the situation after the 2008-09 financial crisis, the cost of renewable energy generation is now competitive with fossil fuels, meaning fewer trade-offs between short-term pains and long-term gains when evaluating renewable energy investment decisions.

However, Hallegatte recognizes that many energy and public transport projects take a long time to prepare, and argues that they should be added to stimulus packages now – possibly by reviewing and updating existing plans – for the benefits to start being felt in six to 12 months.

He added that emerging economies could explore various avenues for financing such projects, including the state budget, offering attractive incentives to private firms and requesting support from multilateral finance institutions.

Looking further ahead, redirecting fossil fuel subsidies towards more productive and sustainable areas of the economy, as well as introducing energy or carbon taxes, could become part of the tool kit for channeling investment towards green infrastructure.

Private equity (PE) could also prove to be an effective alternative source of funding for green infrastructure projects, as many funds are now assessing new strategies for the recovery phase, but they are likely to become more discerning about where to allocate capital.

“PE funds will be even more selective and scrutinous than before. Underlying business prospects in a post-COVID-19 environment must be clear and visible. A link to sustainable development goals can add to the investment appeal – particularly in relation to an eventual exit – but this does not detract from the need for a business model to be robust and clear,” YGA Capital’s Ko told OBG.

For Ulrich Volz, director of the SOAS Centre for Sustainable Finance, emerging economies should also look at developing their domestic capital markets in order to become less reliant on foreign portfolio investment, which tends to migrate quickly towards developed market assets at the first hint of a crisis.

By doing so, they would be better placed to fund domestic investments through domestic savings, which in the past have predominantly been invested in advanced countries for relatively low returns.

“Some will claim that, in times of crisis, developing and emerging economies won’t be able to afford the ‘luxury’ of green or sustainable investments, but this is a very short-sighted view,” Volz told OBG.

“Growth that is not sustainable undermines long-term development. The COVID-19 crisis shows how risks that seem very far away and abstract can hit us with a vengeance. I would hope that sustainability risks will receive even more attention because of the current crisis.”