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AMERICA’S BEST CITIES 2020: A DIFFERENT YEAR MERITS DIFFERENT LISTS, BUT RESILIENCE HOLDS TRUE

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Archives, Best Cities, Global Trade Daily

AMERICA’S BEST CITIES 2020: A DIFFERENT YEAR MERITS DIFFERENT LISTS, BUT RESILIENCE HOLDS TRUE

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The time has come once again for our team to identify which cities are leading the way in providing businesses the tools needed to operate successfully and navigate economic disruptions. Cities listed in this year’s cover story represent the level of resilience that keeps Americans moving forward in the hardest of times.

However, in 2020, we decided to do things a little differently. After all, 2020 was a different year for everyone, as it will more than likely go down in history as the “year of COVID.” Thus, for businesses in the U.S. and around the world, we looked at the data for cities leading the way in “soft infrastructure” rather than primarily focusing on the leaders in “hard infrastructure.” 

Resources from the Bureau of Labor Statistics, the Office of the Comptroller of the Currency and more supported the development of this list. Our goal is to identify the things that help support businesses beyond rail, port and transportation options. According to the economic development leaders we spoke with, the elements of soft infrastructure are often overlooked. 

“Not all cities have the same caliber of export and trade support systems,” explains Linda DiMario, an economic development consultant. “If there is not trade ecosystem in place to help build capacity and nurture the transition of export ideas to the act of exporting, that gets in the way for companies. Those companies do not always know where to go for assistance.”

DiMario continues, “Very often, the attention goes to what I like to refer to as ‘hard infrastructure’ rather than understanding exports and trade capacity from a more holistic perspective. Airports, port access, etc. are the more obvious components of hard infrastructure, and although they are important, they’re not the only components. There is an ecosystem that exists that supports companies and their ability to explore markets and provides the ‘soft infrastructure’ to help develop export readiness. Those are crucial elements in any city and deserve recognition.”

On that note, here are the cities that made our list.

Best Cities for Exports by Metropolitan Area

Source: Census.gov Foreign Trade Report

The report highlights leading areas based on “millions of U.S. dollars, not seasonally adjusted” and compares the 2019 final numbers to 2018’s numbers, preceding each yearly period with “Annual.” This report was published on June 16, 2020.

Northeast: New York-Newark-Jersey City, (NY-NJ-PA)

Out of a total of 10 metropolitan areas in the Northeast, the New-York-Newark-Jersey City metro region led by a longshot with just shy of $87 million for Annual 2019. Each quarter recorded by the metro region also led by more than double compared to competing metros in the Northeast. The overall numbers were slightly lower compared to the Annual 2018 breakdown but contributed to a total of 185,492,000 for the region in ’19. 

Midwest: Chicago-Naperville-Elgin, IL-IN-WI

It was not a surprise to see The Windy City leading the way for the Midwest for top export dollars in Annual 2019. The Chicago-Naperville-Elgin metro region represented a total of $42,493,000 in exports, with the Detroit-Warren-Dearborn area right behind it. Chicago-Naperville-Elgin beat Detroit-Warren-Dearborn by $1,056,000 for the Annual 2019 final numbers. 

South: Houston-The Woodlands-Sugar Land, TX

As we saw in last year’s Best Cities feature, Houston ranked among the top, representing robust numbers for the South with a whopping $128,032,000 in total exports for the Annual 2019 report. Overall, the southern region recorded $367,003,000 in ’19. This confirms the South as the top dog for highest number of exports in dollars throughout the nation. 

West: Seattle-Tacoma-Bellevue, WA

Heading west, exports were nothing short of abundant; however, the metro regions tallied in fairly close with Los Angeles-Long Beach-Anaheim, CA, coming in first at $61,859,000 and Seattle-Tacoma-Bellevue, WA, coming in second at $41,334,000 for Annual 2019. The West represents the second-highest in export dollars for the year. 

Best Cities for Fastest-Growing Large Cities

Source: Census.gov 

When it is time for businesses to expand or relocate, location is critical. For this list, we looked at the fastest-growing large cities over the past decade detailed by the U.S. Census report revised on May 21, 2020. According to this report, the cities researched had a population of at least 50,000 as of April 1, 2010. This is the list of the top 10 fastest-growing cities between April 1, 2010, and July 1, 2019, in order. Not surprisingly, the South and West lead the way in this category as well. Be warned: Texas dominates once again. 

Frisco, TX

Coming in at No. 1 on the list, Frisco was reported to have a 71.1 percent increase in population, with a total of 200,490 people. Frisco is one of six Texas cities listed among the top 10 nationally for population growth. 

Buckeye, AZ

Buckeye finished No. 2 by reporting a total population of 79,620 people at the end of 2019, increasing by 56.6 percent in a decade. Buckeye, AZ, is one of four Western states to make it on the list and is the only Arizona city represented in this report. 

New Braunfels, TX

Just behind Buckeye is the second Texas city represented for the fastest-growing large cities report. New Braunfels experienced a 56.4 percent increase, with a total population of 90,209 by the end of 2019. For those of you who are not familiar, New Braunfels is home to arguably one of the best water parks and resorts in Texas. Schlitterbahn, anyone? 

McKinney, TX

Just tapping right above the 50 percent mark is the third Texas city on the list. Located in the northeastern region of North Texas, McKinney was reported with a total population of 199,177 in 2019 and experienced a 51.9 percent increase over the past decade. It goes without saying that North Texas is a hot region for growth. 

South Jordan, UT

Heading west, the past decade of growth reported in South Jordan put the Utah city in fifth place on the list. Located just a hop, skip, and a ski jump south of Salt Lake City, South Jordan recorded an impressive 51.8 percent population growth in the past decade. Final numbers for 2019 equaled 76,598 people. 

Meridian, ID

Just above Utah, Idaho made its place on the list with a 48.3 percent increase reported for Meridian. The city finished 2019 with a robust 114,161 total population. This city represents the fourth highest out of the 10 on the list for the highest population total in 2019. 

Cedar Park, TX

Ah, Texas; we meet once again. Cedar Park made its way on the list as No. 7 with a 44.2 percent increase over the past decade and a total of 79,462 population. Neighboring cities include Leander, Round Rock and an interesting place known as Nameless with a reputation for being a “ghost town,” according to Texas Escapes Magazine.

Fort Myers, FL

Going even farther south, Fort Myers makes the eighth place on the list with a 39.8 percent increase over a decade, growing its total population to 87,103 for 2019. Fort Myers represents Florida on the top 10 list for significant growth in population during the period listed.

Conroe, TX

Just when you thought you had read all the Texas cities that made the list, one more pops up. Conroe comes in at No. 9 with a total population of 91,079 and an increase of 39.3 percent. Way to represent, Texas!

Irvine, CA

Coming in at the highest total 2019 population for the fastest-growing large cities on the list, Irvine finished 2019 with an impressive 287,401 population, which represents a 35.5 percent increase over the past decade. Irvine is the only California city to crack the top 10, which speaks volumes to the city’s infrastructure, quality of life and business opportunity. 

Best Cities for Federal Banking

Source: Office of the Comptroller of the Currency report

With any successful business comes the added layer of financial management. And when it comes to protecting your profits, you must choose your banks wisely. In the list below, we present cities offering trusted resources for banking as identified by the Office of the Comptroller Currency report. These cities offer the most options for federal banking, from cross-border banking to investor relations. 

New York, NY 

The city that never sleeps tops the list for the most federal banks. A robust 32 total federal banks are found in the Big Apple, giving your business more than enough options from which to choose. A few of the big-name banks found here include Arab Banking Corp., Australia & New Zealand Banking Group Ltd., Bank of China, Gulf International Bank and many more. 

San Francisco, CA

Although San Francisco (or any other city for that matter) did not come close to offering more than a handful of federal banks compared with the Big Apple, three of the federal banks found here include CMB Wing Lung Bank Ltd., Bank of Communications Co., Ltd., and UBS. If you’re looking for sustainable finance and investment options, this is a great place to start. 

Closely behind San Francisco are: Miami, Los Angeles, Washington, D.C. and Chicago, with each having at least two federal banking options and competitive financing for domestic and international businesses. 

Best Cities for Civilian Labor Force 

Source: Bureau of Labor Statistics report

We like to save the best for last. Arguably one of the most important elements in any business is its representing workforce. Cities that made this list showcase skills and growth that not only support efforts in economic development but prepares the next generation of those who will continue to grow the economy. The Bureau of Labor Statistics report identified metropolitan areas offering robust labor pools. These numbers reflect cities with at least 500,000 civilian workers as of September 2019.

Alabama

Birmingham-Hoover: 551,568

Arizona

Tucson: 503,048

Phoenix-Mesa-Scottsdale: 2,524,737

California

Los Angeles-Long Beach-Anaheim: 6,781,917

Riverside-San Bernardino-Ontario: 2,074,832

Sacramento-Roseville-Arden-Arcade: 1,104,416

San Diego-Carlsbad: 1,593,792

San Francisco-Oakland-Hayward: 2,603,490

San Jose-Sunnyvale-Santa Clara: 1,088,233

Colorado

Denver-Aurora-Lakewood: 1,694,499

Connecticut

Hartford-East Hartford-West Hartford: 630,118

District of Columbia 

Washington-Arlington-Alexandria: 3,475,733

Florida

Jacksonville: 797,492

Miami-Ft. Lauderdale-West Palm Beach: 3,176,775

Orlando-Kissimmee-Sanford: 1,381,556

Tampa-St. Petersburg-Clearwater: 1,577,352

Georgia

Atlanta-Sandy Springs-Roswell: 3,102,466

Illinois

Chicago-Naperville-Elgin: 4,836,999

Indiana

Indianapolis-Carmel-Anderson: 1,071,170

Kentucky

Louisville-Jefferson County: 676,110

Louisiana

New Orleans-Metairie: 594,425

Maryland

Baltimore-Columbia-Towson: 1,521,785

Massachusetts 

Boston-Cambridge-Nashua: 2,814,506

Michigan

Detroit-Warren-Dearborn: 2,177,102

Grand Rapids-Wyoming: 574,566

Minnesota

Minneapolis-St. Paul-Bloomington: 2,033,164

Missouri

Kansas City: 1,135,510

St. Louis: 1,481,679

Nevada

Las Vegas-Henderson-Paradise: 1,138,060

New York

Buffalo-Cheektowaga-Niagara Falls: 541,098

New York City-Newark-Jersey City: 9,920,695

Rochester: 521,893

North Carolina

Charlotte-Concord-Gastonia: 1,375,200

Raleigh: 735,976

Ohio

Cincinnati: 1,132,137

Columbus: 1,101,267

Cleveland-Elyria: 1,045,516

Oklahoma

Oklahoma City: 688,813

Oregon

Portland-Vancouver-Hillsboro: 1,325,943

Pennsylvania 

Philadelphia-Camden-Wilmington: 3,133,899

Pittsburgh: 1,214,109

Rhode Island

Providence-Warwick: 691,449

Tennessee

Memphis: 644,028

Nashville-Davidson-Murfreesboro-Franklin: 1,095,969

Texas

Austin-Round Rock: 1,244,523

Dallas-Ft. Worth-Arlington: 4,003,204

Houston-The Woodlands-Sugar Land: 3,440,488

San Antonio-New Braunfels: 1,211,007

Utah

Salt Lake City: 671,371

Virginia

Richmond: 688,763

Virginia Beach-Norfolk-Newport News: 861,205

Washington

Seattle-Tacoma-Bellevue: 2,187,696

Wisconsin

Milwaukee-Waukesha-West Allis: 816,430

supply chain resiliency
Archives, Global Logistics, Global Trade Daily

How Are Manufacturers Building Supply Chain Resiliency?

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As manufacturers plot their paths forward, many are paying closer attention to supply chain resiliency and the need for stronger, tech-enabled supply chains that can withstand shocks. 

The global pandemic upended most of the business world, with a particularly pronounced impact on the world of manufacturing with its production lines that rely on just-in-time (JIT) delivery and groups of workers arrayed in tight formation along the production line. Social distancing made quick work of the latter just as severe disruptions rippled across global supply chains.

Manufacturers found themselves facing several shocks simultaneously. Initially, massive jumps in demand confronted producers of consumer staples such as groceries and home supplies, purchased by consumers caught in a frenzy of panic buying. In addition, consumers largely turned away from in-person shopping in retail stores and moved their purchases online.

For example, Small Business Trends reports that online grocery shopping grew by a factor of seven times during the first wave of the pandemic. This growth in online shopping goes beyond just groceries. In fact, a recent survey found that 20% of those polled bought physical goods online for the first time during the pandemic.

As time wore on, demand composition changed. Consumers adjusted to working from home, spending their dollars on more comfortable clothes, new entertainment options and fitness equipment, and pursuits like baking sourdough bread. While the service economy continued to suffer, the producers of physical goods saw spikes in demand for their wares.

Reversing the Trend

The last 20 years have been characterized by a move to JIT production and sourcing from low-cost jurisdictions, such as China and Vietnam, which were among the first to lock down in the face of the pandemic. While this offshoring of production was historically beneficial for the bottom line, it left most organizations exposed to a systemic shock, precisely the kind of worst-case scenario brought about by the pandemic. The response to this has been renewed interest in ensuring supply chain resiliency.

According to IDC Manufacturing Insights, supply chain resiliency is “the capability of a manufacturing supply chain to ensure and preserve the continuity and consistency of product supply and meet business obligations for product delivery and service to customers by anticipating and being prepared for both short-term operational and long-term strategic disruptions.”

With economic activity—including manufacturing—now picking up and erasing many of the losses incurred early in the pandemic, the business world has settled into a new steady state characterized by intense and constant change. This “new normal” environment demands supply chains that rely not on JIT production and low-cost manufacturing, but rather on high levels of resiliency that allow them to ride out the highs and lows of whatever is thrown at them.

5 Key Resiliency Strategies

As they work to improve their supply chains’ resilience and evaluate where to make investments in tools, processes, and people, Bain & Co., tells manufacturers to factor in these five key tenets of supply chain resiliency:

1. Network agility (flexible ecosystem of suppliers and partners)

2. Digital collaboration

3. Real-time network visibility

4. Rapid generation of insights

5. Empowered teams

For manufacturers, the first step to improving supply chain resiliency is to establish end-to-end visibility of the supply chain. That means mapping out all actors in the supply chain, across geographies and down to the tier 2 and tier 3 suppliers that characterize most supply chains with a strong Asian component.

According to McKinsey, since the pandemic hit, “39% of manufacturing organizations have implemented a nerve-center or control-tower, approach to increase end-to-end supply-chain transparency.”

This enhanced visibility is made possible through the deployment of technology. “Digital tools are making real-time visibility and traceability a reality, including a better understanding of potential failure points,” Bain & Co., points out. “Whatever new shocks the future may bring, organizations can now design supply chains to be more flexible and less vulnerable than ever before.”

These same digital tools can be deployed outside of the factory, McKinsey adds, “reaching across the end-to-end value chain to address planning (and replanning) challenges related to disruptions at suppliers or production plants, operational challenges in managing workplace health risks, and delivery challenges posed at transportation modes or in warehouses.”

Tech Tools Step Up to Help

Manufacturing execution systems (MES) help manufacturers achieve their supply chain resiliency goals. A solution that aligns with enterprise resource productivity platforms and warehouse management solutions, MES offers material visibility, automated task execution, and real-time traceability throughout the supply chain.

Armed with good visibility, manufacturers can diversify their supply chains away from vulnerable single source providers, and particularly those located in countries where the pandemic and other disruptions have been poorly managed.

With manufacturing experts agreeing that the “new normal” is here to stay, manufacturers are undertaking numerous initiatives to meet COVID-relate challenges. With many initiatives accomplished in record time, they’ve worked to achieve supply chain resiliency, laid the groundwork for reshoring production, undertaken new distribution strategies, and deployed new technology. Combined, these efforts will help manufacturers create future-proof supply chains that can weather any storm.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. Our solutions are in use around the world and our experience is second-to-none. We invite you to reach out to us here to learn more.

This article originally appeared on GenerixGroup.com. Republished with permission.

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Archives, Global Trade Daily, Warehousing

Warehouse Productivity: 7 KPIs to Follow

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Dock occupancy, inventory management, wave advancement: to manage your warehouse efficiently and increase productivity, certain key indicators must be carefully monitored. Generix Group has brought together in an infographic the 7 main KPIs whose control in a WMS will allow you to optimize your operations.

Which performance indicators should be used?

Generix Group experts have identified 7 indicators to evaluate center performance and facilitate continuous warehouse management.

1. The missions and assignments of forklift drivers, to redistribute and adjust their load according to their activity.

2. Missing products and supply, to visualize potential future shortages and trigger stock replenishments.

3. Product sorting, to inspect the products before separating them on the platform.

4. Wave advancement, to optimize processing.

5. Packer management, to assess packer productivity and establish statistics.

6. Manning the docks, for real-time visibility of occupancy rates.

7. Advancing rotations, to view the operational flows presented by each round of deliveries.

Understanding KPIs to increase warehouse productivity

The productivity of a warehouse is central to a company’s growth strategy. It is therefore essential for logistics professionals to rely on the performance data collected by the tools at the warehouse’s disposal, and to know how to interpret them.

The Generix WMS solution relies on the group’s 30 years of logistics experience. It is aimed at all players in the sector, manufacturers, wholesalers or logistics providers, and adapts to all warehouses, regardless of size. Its role is to best support professionals in the management of their logistics operations, combining productivity, agility and cost optimization.

Managing a warehouse is a complex task, but warehouse management software has been designed to support logistics professionals and give them paths for optimization.  Want to review the management of your warehouse? Want to simplify its operations and increase productivity? Download the complete WMS guide or seek advice from Generix Group experts.

CONTACT US

This article originally appeared on GenerixGroup.com. Republished with permission.

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Archives, Commentary, Executive Education, Global Trade Daily

How To Measure The Effectiveness Of Changes In The Office

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In order to solve problems at work, you often have to make policy changes. Unfortunately, a policy change doesn’t always work out how you hoped it would.

Below are some suggestions for measuring the effectiveness of a policy change and what to do once you’ve determined whether it’s working or not.

Ask Two Simple Questions

There are two, simple questions you should ask yourself when trying to determine whether or not a policy change is effective.

The first question is, “Are we still noticing the problem?” At some point, someone saw there was a problem with the way work was being done. There was either a bottleneck in someone’s workflow, mistakes were frequently being made, or something else was happening that caused problems. Eventually, someone noticed, brought up the problem, and worked on a solution.

The question is, are you still seeing that problem or has it gone away? It’s possible that the problem has been reduced, but isn’t totally gone yet. That may require some simple tweaking instead of a complete policy overhaul. But either way, you should be able to get a quick idea for how effective the policy change was by simply looking at the task that inspired the change in the first place.

The second question is, “Has our solution caused other problems?” Just because you solved one problem doesn’t mean you didn’t accidentally create another problem. What problems are people having with the policy? How hard are those problems to deal with? Are they bigger or smaller than the problems you were trying to solve?

Digging through your work processes and talking to involved team members about these topics will help you figure out if the solution is better or worse than the cure.

Take Advantage Of Employee Surveys And Interviews

One-on-one interviews and employee surveys are good ways to encourage your employees to tell you what is slowing them down at work and what parts of their workflows need help. Be sure to emphasize that the company is looking for problems to fix in order to make everyone’s life at work easier.

Otherwise, they may be afraid to speak up in case they look like they’re complaining.

Approach the questions in such a way to get them to talk about the new policy. Ask them what is working, what isn’t working, and what problems they’re still seeing.

Take this feedback into consideration when you’re trying to determine whether you should keep, alter, or remove a policy.

Ask Managers About What Problems They’re Seeing

Managers generally have a higher-level view of what’s going on with their team. Be sure to lean on them for information that you’d otherwise miss if you focused on talking to people who may not always understand what their coworkers are doing.

Managers are probably best able to answer your questions about who’s affected positively by a given policy, who’s affected negatively, and what they think could be done to solve any other problems that have popped up.

When You Get Your Results, Take Action

Once you’ve analyzed everyone’s feedback and you’ve looked at the related KPIs and whether they have improved or declined, it’s time to act. Acting might mean scrapping the policy entirely, optimizing it to make it better solve the problem, or it may mean enhancing an already successful policy to make it even better.

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Katie Casaday is a marketing content writer at eFileCabinet where she specializes in computer software and document management topics. She graduated from Utah State University with a BA in Global Communication. She has experience writing about B2B technology companies and besides enjoying writing, she loves nature and taking hikes with her companion, a Border Collie named Margo.

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Archives, Executive Education, Global Trade Daily, Special Reports

Strategic Management for Competitive Advantage in Global Business

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Today, a new managerial approach may be necessary as the new global business environment demands are increasingly difficult to sustain competitiveness. This article suggests new insights to identify strategic knowledge management as a primary driver of organizational competitiveness. Executives will see that creating a sustainable competitive advantage requires strategically managing information and knowledge within companies.

Executives are spending more time today concerned about operational risk than ever before. Operational risk is an operational approach to represent strategic knowledge management, but in this case, it seeks to apply organizational knowledge in order to satisfy and exceed customer’s expectations. Similar to customer relationship management, strategic knowledge management is an enabler for identifying and satisfying customer’s needs and manifests itself as a significant driver that motivates the development of relationships with customers. Executives can use strategic knowledge management to improve customer satisfaction through acquiring additional knowledge from customers, developing better relationships with them, and providing a higher quality of service and/or products for them.

Executives know that discontinuity exists at all levels of a product and services and they do not want to find themselves caught off guard, becoming obsolete. To remain competitive, executives must realize that they have to quickly create and share new ideas and knowledge to be more responsive to market changes. Knowledge held by organizational members is the most strategic resource for competitive advantage and through the way it is managed by executives.

Once the important paradigm of strategic knowledge management was accepted by both the scholars of the academy of management and executives, the knowledge cycle model began to make sense. Executives can look at the three-step processes of knowledge accumulation, integration, and reconfiguration. Executives can enhance knowledge accumulation which is associated with coaching and mentoring activities by sharing experiences gained by imitating, observing, and practicing. Executives can, in fact, help followers add meaningfulness to their work in ways enhancing a shared understanding among members to enhance engagement.

Organizational knowledge is also articulated into formal language that represents official statements. Organizational knowledge is incorporated into formal language and subsequently becomes available to be shared within organizations. Executives have their internet technology departments to create a combination that reshapes existing organizational knowledge to more systematic and complex forms by. For example, using internal databases. Organizing knowledge using databases and archives can make knowledge available throughout the organization- organized knowledge can be disseminated and searched by others. Most importantly, in knowledge integration, organizational knowledge is internalized through learning by doing which is more engaging.

It is important to note that executives have found that shared mental models and technical know-how become valuable assets. Organizational knowledge, which is reflected in moral and ethical standards and the degree of awareness about organizational visions and missions, can in turn be used in strategic decision making. Organizational knowledge can be converted to create new knowledge that executives can view and implement immediately in managerial decision making. Applying knowledge aimed at providing better decision-making and work-related practices and creating new knowledge through innovation.

Finally, when executives agree to share knowledge with other organizations in the environment, studies have shown that that knowledge is often difficult to share externally. One reason is that other organizations have too much pride to accept knowledge or are apprehensive to expose themselves to the competition. Therefore, executives may lack the required capabilities to interact with other organizations.

Learning in organizations is the ultimate outcome of knowledge reconfiguration by which organizational knowledge is created and acquired by connecting knowledge with other companies that want to share successes and failures. This leads to converting acquired knowledge into organizational processes and activities to improve processes that contribute to success. Executives can now see that a company’s capability to manage the organizational knowledge cycle is the most crucial factor in a sustainable competitive advantage. This core-competitive advantage relies on and among people.

This article raises a vital question as to how executives can successfully improve organizational competitiveness and might be the answer executives need. This model for managing knowledge takes a strategic, process-oriented approach and is relevant to operational risk. This model focuses on knowledge flows that executives use through embracing the processes of strategic knowledge management for strategic management decision-making. This model takes a task-based approach by translating the management of knowledge into various organizational processes.

The knowledge cycle model develops a firm-specific approach by which organizational knowledge provides a significant contribution to business objectives through the context-dependent way it is managed. This model can also help companies identify their inefficiencies in each process, and subsequently recover them on an instantaneous basis which enables executives to prevent further operational risk.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

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Archives, Global Trade Daily, Imports/Exports, International Trade, News

EVOLUTION OF BUY AMERICAN POLICIES

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President Trump has used Executive Orders to extend the reach of how “Buy American” legislation is implemented by federal agencies in their procurement evaluations. Presidential candidate Joe Biden has pledged to “use taxpayer dollars to buy American and spark American innovation”. Recent polling shows Americans believe Buy American policies support job creation.

While support for “Made in the USA” products appears politically trendy right now, the concept of maximizing taxpayer spend on goods and services with high U.S. content is far from new. In fact, it extends all the way back to our foundation. Recent polling shows Americans believe Buy American policies support job creation.ing. Here’s a primer on the evolution of Buy American policies.

1770s: Birth of America, Birth of Buy American

By the late 1760s, American colonists start a “non-consumption movement” against British goods in the attempt to force Britain to repeal its taxes. In Boston, merchants vote to block English trade, a move that culminates in the famous Boston Tea Party and the dumping of 45 tons of British tea into the harbor. The First Continental Congress of 1774 threatens a boycott of British goods. Patriotic colonists are expected to purchase goods made in America. Daughters of Liberty hold spinning and weaving parties to whip up American textiles. At his first inauguration, George Washington wears a brown suit of broadcloth from Hartford, Connecticut in a show of American-made symbolism.

1930s: The First Buy American Act

Newspaper magnate William Randolph Hearst decorates his mastheads with American flags to launch a popular Buy American campaign to bring the United States out of the Great Depression. Hearst’s own views and politics were tinged with racism. His anti-immigrant sentiment and reporting was likely a contributing factor to the Japanese-American internment that occurred during World War II.

On his last day in office, President Herbert Hoover signs the foundational Buy American Act of 1933. Above a certain dollar threshold, the federal government’s direct purchases must prefer domestic goods, defined as 100 percent manufactured in the United States with at least 50 percent domestic content. The requirement does not apply to third parties like private sector contractors who win funding through government procurement awards. The Act is promoted to safeguard American jobs for major infrastructure projects, including the Hoover Dam.

Historical Timeline of Buy American Legislation

1970s – 1980s: Manufacturing in Decline

The Buy America Act of 1982, a provision of The Surface Transportation Assistance Act, is introduced in reaction to capital flight in the 1970s and the beginning of steady decline in manufacturing employment. The requirements are extended to purchases made by third party agencies, as well as those made directly by the federal government. The act applies to the construction of highways, railways, and rapid transit systems.

The definition of “American-made” becomes more complex: all steel and iron components of end products must be mined, melted and manufactured in the United States, with an exception for “minimal use” if the materials constitute a low value or low percentage of the overall contract value.

1990s: Defense Purchases and the Berry Amendment

The Berry Amendment to the Fifth Supplemental Department of Defense Appropriations Act of 1941 gives preference in defense procurement to a range of products including clothing, food, and fabrics grown, produced or manufactured in the United States. It imposes stricter domestic content requirements on such purchases than the Buy American Act and is made permanent in 1994.

Trump's Buy American EOs

2000s: Trump Executive Orders

In the 2000s, the Obama administration approves Buy American requirements in the 2009 American Recovery and Reinvestment Act. All public projects backed by the Act’s funding were required to use domestically-produced iron, steel and manufactured goods unless the cost of doing so increased the overall project cost by 25 percent.

During his presidency, Trump has made extensive use of Executive Orders to shape federal agency implementation of Buy American requirements. He signs the Executive Order on Buy American and Hire American on April 18, 2017 “to promote economic and national security and to help stimulate economic growth, create good jobs at decent wages, strengthen our middle class, and support the American manufacturing and defense industrial bases.” The Order reaffirms that all aspects of steel and iron production must occur in the United States.

The Buy America Act does not apply to the acquisition of goods that are not commercially available in the United States in sufficient quality or quantity, or when it would be “inconsistent with the public interest.” Buy America preferences may also be waived if inconsistent with commitments made to U.S. trading partners under the WTO Government Procurement Agreement or U.S. free trade agreements.

Trump’s 2017 Executive Order directs federal agencies to scrutinize their compliance with Buy America requirements and to minimize their use of such waivers to purchase foreign goods and services. In addition, the Order mandates that, “to the extent permitted by law, before granting a public interest waiver, the relevant agency shall take appropriate account of whether a significant portion of the cost advantage of a foreign-sourced product is the result of the use of dumped steel, iron, or manufactured goods or the use of injuriously subsidized steel, iron, or manufactured goods.”

Foreign End Products in Fed Procurement

Trump signs an Executive Order on Strengthening Buy-American Preferences for Infrastructure Projects on January 31, 2019. The Order extends the previous order, targeting infrastructure projects that receive federal financial assistance awards, greatly widening the scope of affected programs and projects.

On July 15, 2019, Trump signs an Executive Order on Maximizing Use of American-Made Goods, Products, and Materials. The Order reinterprets the so-called “component test” to increase the thresholds for U.S.-origin components. Iron and steel end products must contain 95 percent or greater U.S. origin “parts or materials”. Other products must contain 55 percent or more U.S. parts or materials.

Most recently, President Trump issued an Executive Order on Ensuring Essential Medicines, Medical Countermeasures, and Critical Inputs Are Made in the United States on August 6, 2020 in response to the COVID-19 pandemic. With the goal of reducing dependence on foreign supply chains and strengthening domestic ones, the order declares U.S. policy to accelerate domestic production of essential medicines; ensure long-term demand for the medicines produced; create and maximize domestic production for Critical Inputs and Finished Drug Products; and combat the trafficking of such medical equipment and products.

Criticism of Buy America Requirements

A 2018 study by the Government Accounting Office (GAO) found that of the $196 billion in federal obligations in fiscal year 2017 to purchase end products, just $7.8 billion or 4 percent were foreign end products purchased using exceptions to Buy America requirements. 47.1 percent of that amount went to end products used outside the United States and just 7 percent of the amount was purchased using waivers associated with free trade agreement obligations.

Beyond the waivers for purchasing foreign goods, critics argue that instead of being a boon to U.S. contractors, domestic content requirements create additional and costly regulatory burdens for U.S. companies competing for federal contracts. Buy America requirements may reduce procurement choices for federal agencies like the Department of Defense while potentially increasing costs to U.S. taxpayers. The jobs argument behind Buy America has also been scrutinized. In one economic analysis by trade economist Tori Smith, Smith argues that the steel purchasing requirements in Buy American legislation have done little to stem employment losses in the U.S. steel industry, in steady decline since 1980.

Neither is the United States out of line when it comes to imports as a percentage of overall public procurement. The average is 4.4 percent, which is the U.S. rate of purchases. Put in further context, imports as a percentage of U.S. GDP is generally lower than its peers in the OECD, at just 17 percent. The United States may have more to lose economically by reducing opportunities for foreign suppliers in the U.S. procurement market. In 2018, the global procurement market was worth an estimated $11 trillion. In a boomerang effect, U.S. companies could lose the ability to bid on foreign government projects if other countries expand their own Buy European or Buy China requirements.

Imports as Share of Procurement

Where Trump and Biden Meet

Presidential candidate Joe Biden has put forward his own version of Buy American as part of his platform to “ensure the future is made in all of America by all of America’s workers.” Biden promises to use taxpayer dollars to buy American and spark American innovation.

In the debate over which candidate can out-“buy-American” the other, only one thing is clear: the United States is not the only country looking for ways to help its domestic economy recover from COVID-19. But buyer beware: domestic purchase requirements can have adverse effects on the companies they are intended to help while putting additional strain on federal agency budgets. The more countries that impose them, the greater the chance that gains from global government procurement trade policies will be reduced.

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Andrea Durkin is the Editor-in-Chief of TradeVistas and Founder of Sparkplug, LLC. Ms. Durkin previously served as a U.S. Government trade negotiator and has proudly taught international trade policy and negotiations for the last fifteen years as an Adjunct Professor at Georgetown University’s Master of Science in Foreign Service program.

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Archives, Global Logistics, Global Trade Daily

3 Approaches to Continuing Operations through COVID

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COVID has impacted every aspect of our personal and professional lives. Businesses across different industries and verticals are adjusting their strategies and day to day processes in an attempt to make the best of this unprecedented moment. For this reason, different types of technology have become more prominent as they allow businesses and professionals to maintain the pace of business in light of how COVID has transformed the way we work.   

A recent survey from the National Bureau of Economic Research shows that half of Americans are currently working from home. Along with these changes in work come new challenges regarding problem-solving, engagement in work tasks, and productivity. But as the trend of working remotely is here to stay – especially for Dev teams, for whom this was already somewhat the norm. In fact, in a recent IBM survey, 80% of respondents want to work remotely occasionally, and over 50% want to work from home primarily.

In particular, businesses within the logistics industry need to be able to address the logistical issues of keeping employees safe and aware of the risks, as well as maintaining internal operations so that business can continue. Here are three tips and suggestions for technology and process shifts that can help logistics businesses continue operations through COVID. 

Large Scale Consent with COVID Waivers

As employees at all levels of the supply chain continue to work, and as plans to reopen the office are being built out, there needs to be a way to keep everyone safe and healthy. This involves letting employees know about risks associated with COVID. Using liability waivers – legal agreements that must be signed before a particular activity is undertaken – can be a good solution for this. But rather than use pen and paper contracts (which require face to face contact) or traditional eSignature (that does not scale, especially when there is a high volume of signers), consider one-click contracts. They allow for rapid and seamless acceptance and still carry the same legal weight as a normal contract. They can also be accepted via text or email.

Use Clickwrap to Present Standard Agreements

Because of COVID, businesses are seeking ways to improve their current processes by cutting down on the time or money spent completing them. When it comes to contracts, many use pen and paper or eSignatures to send agreements and collect acceptances. However, these old processes have no place in this new world. One solution is to use clickwrap agreements to present your standard agreements, or market terms. A clickwrap agreement removes the necessity of signing and replaces it with a box or button that users can check or click to signify acceptance. That way, there is no need for face-to-face contact, and contracts can be executed remotely as necessary. 

Automate Everything 

With the changes in business priorities, logistics teams will no longer have the bandwidth for some repetitive tasks that previously received a lot of attention. Instead of hyper-focusing on them or ignoring them altogether, automate those processes so you have time to focus on others. Workflow and Content Automation (WCA) is a growing category of technology that businesses should leverage. After identifying the repetitive processes, WCA enables you to identify high volume, low-value transactions and automate the document workflow associated with them such as implementing clickwrap agreements. This includes standardized agreements like terms and conditions, privacy policies, and NDAs. 

As these constant changes require businesses to make changes to their current internal processes using technology that helps them adapt better to the ongoing circumstances. Using clickwrap agreements can help significantly reduce the amount of contact between transacting parties. It can also be a massive internal lift as it helps with workflow and content automation, thereby enabling you to reduce repetitive processes. Finally, using COVID liability waivers that scale with your business is a sophisticated way to ensure that your business minimizes physical contact and protects its best interests in this new world.

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Brian Powers is the founder and CEO of PactSafe and a licensed attorney. As the CEO, Brian leads the strategic vision of the company’s high-velocity contract acceptance platform.  Prior to founding PactSafe, Brian’s law practice focused primarily on representing the transactional needs of tech companies. Brian is a frequent speaker, instructor and author on topics ranging from clickthrough contract acceptance to privacy-related consent management.

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Archives, Global Trade Daily, News

Microsoft and C.H. Robinson Form Alliance for the Future of the Digital Supply Chain

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As technology continues to adapt, so does the supply chain. These challenges require solutions rooted in innovative technology, further emphasizing the need for logistics and real-time data on a global scale. According to a recent report by McKinsey & Company, companies’ success will be driven by their ability to navigate the current volatile business environment, which means they must rely on an innovative and tech-driven supply chain. As we drive the future of technology in the industry, providing a continuous competitive advantage to our customers is vital.

That’s why we are excited about our alliance with Microsoft. To meet evolving supply chain demands, we are pioneering the supply chain of the future by joining forces with Microsoft – pairing the power of our industry-leading technologies C.H. Robinson’s Navisphere® and Microsoft Azure. This builds upon TMC, a division of C.H. Robinson’s successful implementation of Navisphere, its global multimodal transportation management system, across Microsoft’s global supply chain, giving Microsoft industry-leading reliability, efficiency, and real-time visibility to all inventory, at rest or in motion, anywhere in the world.

Partnering with other best-in-class companies and products brings value to our customers and carriers as we continuously look to enhance our technology built by and for supply chain experts. Through Microsoft’s Azure cloud platform, we gain unlimited scalability, premier data security, and increased application speed, further demonstrating our commitment to technology-driven efficiencies and providing real results that impact the tech-forward supply chain for our customers and carriers.

Together, our technology helps address the changing demands of ever-evolving global supply chains. For example, as part of this collaboration, we are also integrating IoT device monitoring that measures temperature, shock, tilt, humidity, light, and pressure in shipments. This integration enables 100% real-time visibility to shipments as they move from the factory to distribution centers and ultimately to millions of customers.

We are always committed to creating efficiencies that provide unique solutions to the supply chain. Adapting in real-time to supply chain demands and providing our customers and carriers with innovative solutions, while harnessing the trajectory of technology, is key to staying ahead in the ever-evolving supply chain. Our alliance with Microsoft accomplishes exactly that.

As the pace of change in the industry remains at a pivotal moment, our unmatched commitment to tech-forward solutions and continued investment in technology to better serve customers remains a competitive advantage all of our customers can count on. Learn more and connect with an expert.

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3pls, Archives, Global Trade Daily, Special Reports

Post-COVID Logistics: Retooling for the Future

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The impact of COVID-19 continues to be felt across global economies and businesses, but for the supply chain and logistics industry, challenges go beyond the present and threaten the future of operations and business continuity. These challenges redefine what prediction could look like for the logistics industry and what considerations should be taken to keep the supply chain moving.

Global Trade had the opportunity to speak with business owner and author of “The GOP’s Lost Decade: An Inside View of Why Washington Doesn’t Work,” Jim Renacci on what changes the industry can anticipate as the current health crisis continues to change the pace for global business.

What planning measures will logistics players need to consider in a post-COVID environment?

There is no doubt that COVID-19 has changed the way manufacturers/logistic players will need to review their supply chain management post-COVID-19 and access their supply chain vulnerabilities. The crisis has demonstrated that reliance on sourcing from two geographic areas could pose a risk.

During the crisis, while supplies became unavailable, many companies were forced to start looking for new supply chains as many of their overseas suppliers had to limit or reduce shipments significantly. Post-COVID planning will include asking current suppliers to take on more and different product lines. It is already happening with many current business relationships. Also, the reliability of the supply chain…. over cost…. will be more of a priority.

In what ways have supply chain players supported their customers and consumers during the crisis?

Manufacturers/supply chain players are supporting their customers by shifting and increasing supply chain needs where possible. In many instances, secondary suppliers have started adding product lines where possible. With any crisis, opportunities will be there for the business that can move quickly and adapt to change.

How will the manufacturing site selection process shift in a post-COVID world? 

Manufacturing site selection processes in a post-COVID world should include seeking locations within the US and other countries that have access to highly trained engineers, top tier R&D, access to advanced manufacturing technologies as well as private and public institutions and universities. Site selection should also include countries that offer a competitive investment package as more and more countries post-COVID will be looking to entice companies to locate or relocate inside their jurisdictions.

In what ways can logistics players use the disruption from COVID-19 to benefit their operations in the future?

Current disruption due to COVID-19 will allow companies to reassess their vulnerabilities but also their strengths. With these disruptions, companies can retool for the future. They can adjust for their weaknesses and benefit from their strengths.

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Jim Renacci is the author of The GOP’s Lost Decade: An Inside View of Why Washington Doesn’t Work. He is also an experienced business owner who created more than 1,500 jobs and employed over 3,000 people across the Buckeye State before running for Congress in 2010. Jim represented Ohio’s 16th District in the House of Representatives for four terms. He is also the chairman of Ohio’s Future Foundation, a policy and action-oriented organization whose goal is to move the state forward.

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Archives, Global Trade Daily, Special Reports

Your Enemy is not Uncertainty, but Complexity

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As a nation, we look to the economy to answer our basic questions about the future. What will fluctuations in global markets and supply chains bring? How will the dollar recover from the circumstance of a stalling consumer market? And what impacts, if any, will change the way we do business? As spring approaches, the anticipation around these questions builds. We watch for signs of our shuttered economy lurching back into motion.

Businesses, much like individuals, have coping mechanisms when faced with a crisis. There are ways to build a business contingency plan, even with unforeseen challenges. Some industries have not dusted off their plans since the financial crisis of 2008, and there is anxiety around what it means to enact it. But the truth is: business contingency plans are built precisely for moments like the spread of COVID-19. And while words like “unprecedented,” “alarm,” and “volatility” rule headlines, reactivity is not how businesses run. It is through preparedness and foresight. It is with a business contingency plan.

While no leader takes comfort from enacting their company’s plan, the ability to swiftly empower crucial business functions with ease is possible. Uncompromising company and financial data security and work-from-home procedures are not mutually exclusive. A bit of knowledge is required to migrate an office environment to the home without opening new vulnerabilities.

Divide and Conquer

Dividing and conquering is the oldest trick in the book for any opportunist looking to damage their business. Security hackers and other ill-intentioned opportunists look for times of organizational chaos to strike. They trust that business leaders have overly-divided their attention and that employees will not adhere to traditional protocols for data security or safe treatment of sensitive information.

There are also a substantial number of leaders who will focus on the uncertainties of the future, preventing them from seeing vulnerabilities that are right in front of them. This, of all things, means that many companies and their leaders must know the enemy is not the distractionary dips and dives of the economy, but the complexity of an organization that prevents it from responding elegantly to uncertainty. Military strategist Sun Tzu of The War of Art provides insight into how we should prepare for battles with the unknown:

“Know the enemy and know yourself; in a hundred battles, you will never be in peril. When you are ignorant of the enemy, but know yourself, your chances of winning or losing are equal. If ignorant both of your enemy and yourself, you are certain in every battle to be in peril.”

Having a business contingency plan is only the beginning. Redraw your battle lines when uncertainty strikes, and you will unmask the hidden areas that need better solutions.

Strategies for reducing business complexity:

Strategy #1: Define ‘new normal’ from the top down, but bring insight from the bottom up

Your employees will not naturally intuit where the new boundary lines exist. Spell it out so that everyone is on the same page. Barring in-person meetings, you may need to host a company-wide Zoom call with a panel of C-Suite leadership to reassure, set new expectations, and answer questions.

Most importantly, leadership should use this as a chance to gather further information. Seek out the experiences of those who serve your customers directly to get their perspective. How are customers responding to the shift? What are their emerging needs, and is there a niche there that your industry can uniquely fill? Keep your company’s ears to the ground.

Strategy #2: Banish organizational drag through automation.

In environments of economic hardship, businesses with leaner operations and less organizational drag do better. Cutting out redundant manual processes is crucial to eliminating complexity. A business contingency plan will help enact the first line of defense for your business. However, this is not all you will need. The second wave of reinforcements is crucial to keep your business advancing through times of uncertainty.

Automation is your greatest ally in this fight. Now is the time to abandon stale processes. If they’re manual or paper-based, requiring cartons of messy file work or repetitive wet-ink signatures, its time to rethink. Lean heavily on electronic AP solutions, which can clear up the bottlenecks choking out crucial supply chain relationships.

Never in history has the value of a swift and reliable supply chain been more evident than now, as hospitals face shortages of both personal protective equipment and crucial medicines. Industries are re-learning a valuable lesson: that while necessity is the mother of invention, the cost of waiting to innovate can be incredibly painful.

Strategy #3: Reach for a sturdy bottom line more than blue-sky profits

This year is unlikely to offer many sunny prospects in the realm of profits. Yet cost-cutting initiatives will provide the kind of stability a company needs to make impressive cumulative gains in the coming years. What does this mean? Playing defense isn’t your only strategy. You can also cut costs to preserve the liquidity you do have.

With electronic tools already up and running for staff communication or remote meetings, it’s time to ask yourself how you might unburden other areas of the office from slow performance inefficiencies. What is sending through the mail that could be automated? How might making payments to suppliers electronically cut back on paper check costs? Explore every avenue for cost savings. There are many electronic solutions at the ready to lift manual-based work with minimal if not zero downtime for your business. Now is the time to employ these solutions and not hold back when better-designed options exist.

Strategy #4: Invest in secure solutions without needing to hire more IT

Everyone at this point could do with one more great IT hire, but the point of a business contingency plan is to be resourceful with what resources do exist. Making quantum leaps from the office to a remote setting is much easier for companies who have already made steps toward digital transformation.

Instead of losing more time to processes like answering phones, getting approvers to hand-sign checks, and sending paper mail to closed-up company headquarters, make them digital, with greater control and traceability. Fraudsters’ potential access to your systems diminishes when you have greater visibility and fewer cooks in the kitchen. Higher thresholds for security mean that problems or threats are identified in real-time and careless or lagging processes fall by the wayside.

Strategy #5: Innovate, innovate, innovate

It’s tempting to lose steam during a crisis and consider it the wrong time to try creative solutions, but the logic doesn’t stand. Now is absolutely the time to try new things.

Since volatility has introduced new stressors into the equation for your business, the target has shifted. A brand new segment of the market may have just locked into place in the form of potential customers. You have the potential to attract them by showing that you understand their needs quicker than anyone else in the space. This requires agility and a bit of risk, but it’s a risk worth taking, even under present circumstances. Innovation isn’t an optional advantage in times of plenty. Innovation is essential to the survival of every business.

In the words of Sun Tzu, “In the midst of chaos, there is also opportunity.” Do not take advantage of the chaos, but respond with resilience to its demands.

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Lauren Ruef is a research analyst for Nvoicepay, a FLEETCOR company, with years of experience conducting market research and crafting digital content for technology companies.  Nvoicepay optimizes each payment made, streamlines payment processes and generates new sources of revenue, enabling customers to pay 100 percent of their invoices electronically, while realizing the financial benefits of payment optimization.