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Wallbox Secures $5.2 Million Tax Credit for Expansion of EV Manufacturing in Arlington

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Global Trade Daily, News, United states news

Wallbox Secures $5.2 Million Tax Credit for Expansion of EV Manufacturing in Arlington

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(Global Trade Magazine)- Wallbox, a prominent provider of electric vehicle (EV) charging solutions, has proudly announced its allocation of a $5.2 million tax credit through the esteemed 48C Qualifying Advanced Energy Tax Credit Program by the U.S. Department of Energy (DOE). This tax credit is designated to bolster Wallbox’s expansion efforts at its flagship U.S. EV supply equipment (EVSE) manufacturing facility located in Arlington, Texas.

The 48C tax credit, extended as part of the Inflation Reduction Act, aims to bolster investment and address crucial needs within the clean energy economy. Eligible projects span across various sectors, including grid components, electric vehicle components and chargers, solar materials, and other essential clean energy resources. Wallbox’s commendable achievement encompasses 30% of qualified investments for the second phase of its Arlington factory buildout, facilitating enhanced manufacturing capacity.

Enric Asunción, CEO and co-founder of Wallbox, expressed gratitude for the prestigious recognition: “We are honored to be selected for the highly competitive 48C tax credit, which will enable us to further invest in our U.S. manufacturing capabilities and deliver Wallbox’s top-tier EV charging solutions, pivotal to the transition to electrified transportation.”

The tax credit encompasses various enhancements for Wallbox’s 150,000-square-foot factory in Arlington, including multiple new EVSE assembly lines and a cutting-edge validation lab. Upon completion, the project will empower Wallbox to produce a comprehensive range of charging solutions tailored for the North American market, including acclaimed offerings like the Quasar 2 bidirectional charger and Buy America-compliant DC fast chargers such as the recently launched Supernova 180 DC fast chargers.

Anticipated to achieve a maximum production capacity of over 1 million chargers per year by 2030, the Arlington factory is poised to significantly contribute to U.S. clean energy and transportation objectives.

The selection process for the 48C tax credit was fiercely competitive, with numerous applications vying for limited funding. Following meticulous review by the DOE, Wallbox’s project emerged as a standout recommendation to the IRS for this prestigious award.

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Global Logistics, Global Trade Daily, International Trade, News, U.S. Ports, United states news

Surge in U.S. Inbound Containers Signals Economic Growth in 2024

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In the opening months of 2024, the United States has witnessed a significant surge in inbound container volumes, signaling robust economic activity. According to analysis by renowned analyst John McCown, imports at the nation’s top ten ports experienced a remarkable growth of nearly 20% year-on-year in March.

The dominance of these ports, which handle 86% of U.S. import traffic, underscores the resilience of the world’s largest economy. Despite a slight dip from February’s growth rate of 26.5%, March’s 19.2% increase in inbound containers reaffirms the ongoing strength of economic momentum.

McCown emphasized the sustained growth trajectory, pointing out that the trailing three-month figure shows a substantial 17.8% increase compared to the previous year. This growth, unaffected by the timing impact of events like the Chinese New Year, reflects underlying economic vitality, with comparisons now less influenced by pandemic-related disruptions.

In March, total import volumes reached nearly 1.82 million TEU (twenty-foot equivalent units), marking the first turnaround in seven months for ports on the east and Gulf coasts. These ports outpaced their Pacific coast counterparts, growing at a rate of 21.9% compared to 16.2% growth on the west coast.

Leading the pack, Los Angeles retained its position as the country’s primary import gateway, handling just under 380,000 TEU with growth slightly below the market average at 18.6%. New York & New Jersey followed closely, experiencing a growth of 19.6%, while Long Beach, although third in volume, exhibited the slowest growth among the top ten ports at 8.4%. Notably, Oakland emerged as the fastest-growing port, with volumes soaring by 38.4% year-on-year.

In addition to the surge in imports, U.S. exports continued their upward trajectory, growing by 7.6% year-on-year to reach 930,500 TEU. Los Angeles surpassed Houston as the leading export port, with a substantial 47.3% year-on-year increase.

However, the performance across ports varied, with some witnessing declines or stagnation in export volumes. Despite Houston’s strong growth, Long Beach experienced a significant decline of 21.3% compared to March 2023, while Norfolk and Charleston remained relatively flat.

Analyzing the data over a five-year period, McCown highlighted the disparity among ports, with Houston exhibiting the strongest growth since pre-pandemic levels in March 2019, while Seattle/Tacoma lagged behind with negative growth rates.

The surge in inbound containers and the upward trajectory of exports underscore the resilience and vitality of the U.S. economy in 2024, reflecting positive trends in global trade and commerce.

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Strengthening and Streamlining Terminal Operations: A Smarter Path with Tideworks Technology and Advent eModal

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For most people, the shipping industry only pops on their radar after disaster hits. In 2020, the COVID-19 pandemic snarled supply lines, creating months-long shipping issues. This March, the box ship Dali collided with the Francis Scott Key Bridge, blocking access to the Port of Baltimore and possibly causing a “significant ripple effect on global supply chains.”

Though, for industry professionals, shipping is top of mind 24/7, 365 days a year. Maritime shipping moves roughly 11 billion tons of goods each year. It does so while navigating challenges such as terminal congestion, detention and demurrage issues, the growing need for real-time visibility and automation, and the need to make the industry more environmentally sustainable.

Logistics get even more complex at intermodal port and terminal operations. These sites manage the transfer of containers and goods from ships to different modes of transportation: rail and trucks. Two cutting-edge companies have teamed up to strengthen port and terminal operations by streamlining data for better real-time visibility and easing friction across terminal operations through automation.

Collaboration Through Innovation

Tideworks Technology is a global technology brand and leading provider of terminal operating systems (TOS). Founded in the 1990s by Carrix, a multinational shipping entity, Tideworks has grown from an in-house IT provider to a software development company that helps marine and intermodal terminals move tens of millions of containers more efficiently each year.

Advent eModal is an industry leader in software solutions that provide executional tools and APIs that offer cargo visibility, terminal pre-advice and appointment setting, payment processing and data-enabled business intelligence across intermodal industries. Their cloud-based port platform is in each of the top 10 largest port communities, helping to optimize container volumes, increase truck turn times, and ease areas of friction with more control.

Together, Tideworks and Advent eModal are strengthening terminal operations and streamlining complex sets of logistics through real-time visibility. This has translated to increased efficiency, enhanced throughput, and more significant cost savings for terminal operators across the globe.

Industry Challenges

Outside forces have continually buffeted the shipping industry. However, stakeholders are also facing internal challenges around real-time access to cargo data, optimizing fluctuating container volumes, terminal congestion issues, and navigating sustainability and green initiatives.

So far, in 2023, there has been an uptick in U.S. container import volumes. Ports and terminals need real-time visibility and automation to optimize container volumes and move cargo through intermodal operations more quickly and efficiently.

Container volume issues also contribute to terminal congestion. A lack of real-time visibility into operations creates friction points between terminal operators, port authorities, and rail and motor carriers. These friction points, in turn, lead to congestion and the detention and demurrage issues that come with inefficient operations.

The industry, too, is working to address sustainability and green issues. Moving empty containers or containers with low volumes is not only inefficient—but it also contributes to environmental issues. Streamlining appointment schedules at intermodal terminals reduces emissions and gives operators more control for smoother operations.

Addressing Today’s Challenges

Tideworks’ TOS allows terminal operators to manage movement within ports, optimize yard space, and coordinate the different and complex types of terminal equipment through real-time data. It gives clients a single point of access to a wealth of data to help streamline and simplify processes, providing access to essential information in decision-making. Better data means better visibility, and that means better decisions.

Advent eModal’s SaaS solution extends that real-time visibility as goods and cargo move through ports. It gives beneficial cargo owners and terminal, motor and drayage carrier stakeholders access to cargo data, execution of the transfer, and information into truck volume in real time. It is truly a port-to-depot-to-delivery big picture that streamlines operations at each link in the supply chain.

Working together, Tideworks and Advent eModal streamline and strengthen shipping operations, increasing truck turn times while reducing idling and dwell times. Take, for example, the Port Everglades Terminal (PET).

PET’s new gate appointment system, powered by Advent eModal’s solution, went into effect in July 2023 to automate capabilities across its container terminal. Applications like eModal’s PreGate and Fee Manager increased the port’s cargo visibility and velocity while facilitating fee payments, and appointment functions more seamlessly. The partnership between Tideworks and Advent eModal allowed PET to scale its services for customers and supply chains by addressing some of the most pressing industry challenges.

The two companies also partnered with Genesee & Wyoming Inc. to implement solutions specifically for U.K. rail and terminal operations. The combination of the solutions helped ease chronic congestion.

Before the help of Tideworks and Advent eModal, it took Genesee & Wyoming two hours to clear gate queues at the beginning of each week. With the new TOS, it began clearing the gate in 20 minutes. The turnaround time for the more than 4,000 truck visits to the Birmingham, Cardiff, Doncaster, and Liverpool terminals dropped to below 26 minutes. Since that deployment, Tideworks and Advent eModal have supported G&W’s automation initiatives with deployments spanning several Freightliner and Pentalver sites.

The improvement isn’t just about efficiency. By streamlining and optimizing its operations, Genesee & Wyoming enhanced productivity, which helped scale container volumes across the Birmingham and Cardiff terminals and reduce truck turn times. All of these improved efficiencies result in greater throughput while lessening the environmental impact of idling trucks and wasted trips. The partnership also reduced operating costs, improved data accuracy, and created more positive customer experiences through pre-screening capabilities and predictive container planning.

The collaboration between Tideworks and Advent eModal redefines what is possible for intermodal shipping with integrated gate and TOS solutions. More control and a greater understanding of operations from port to depot to delivery, paired with predictive container planning, are helping operators strengthen and streamline terminal operations in an industry where timing and logistics are everything. 

 

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Global Logistics, Global Trade Daily, International Trade, News

Fostering Resilience: U.S. Department of Commerce Commemorates Supply Chain Integrity Month

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Grant T. Harris, Assistant Secretary of Commerce for Industry and Analysis, has released a statement marking the commencement of Supply Chain Integrity Month. In his statement, Harris emphasizes the critical importance of building resilient supply chains, particularly in the face of unprecedented challenges and disruptions.

Supply Chain Integrity Month serves as an opportunity for stakeholders across industries, policymakers, and the public to come together to reflect on the essential work being done to address supply chain challenges. Harris highlights tragedies like the collapse of the Francis Scott Key Bridge in Baltimore as stark reminders of the necessity for preparedness and resilience in supply chains.

The statement underscores that supply chains impact various facets of daily life, from medicine to groceries to transportation, making proactive collaboration essential. Harris mentions the Department of Commerce’s Supply Chain Center, which is pioneering efforts to mitigate future disruptions by fostering collaboration across government agencies and beyond.

Throughout Supply Chain Integrity Month, the Department of Commerce aims to spotlight the initiatives undertaken by the Supply Chain Center and industry experts to fortify critical supply chains. The focus is on strengthening America’s economic competitiveness, supporting job growth, and bolstering communities.

The Department pledges to continue partnering with stakeholders from various sectors, including industry, academia, labor, and civil society, to address key supply chain concerns. These include enhancing data availability and quality, promoting information-sharing between public and private sectors, and implementing best practices to mitigate and respond to supply chain risks.

By fostering collaboration and innovation, the Department aims to build more secure and sustainable supply chains that not only benefit the economy but also enhance national security.

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Global Trade Daily, United states news

Guarding the Green: Exploring the Impact of Food Fraud on US Organic Farming and the French Connection

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According to estimates from the Food and Drug Administration (FDA), food fraud could affect at least 1% of the global food industry, costing as much as $40 billion. It’s a much more common issue than many may think, and it has knock-on effects on both consumers and the farming industry producing the food.

But where is the point of origin for this fraud? And how badly is it affecting the global food industry beyond the monetary loss? Electrix, a leading global supplier of electrical junction boxes that works closely with the industry, has offered expert insight into food fraud throughout the country and how it connects with other regions around the world.

A brief intro to food fraud

Food fraud is a concept that’s been around for a long time, but it cannot be stated enough how negative an impact it has on organic farming in America. Fraudulent practices in the food industry can seek to take advantage of the premium prices associated with organic products, especially as they can cost around 21% more than their conventional equivalents.

The fraudulent practices that can occur tend to be around the mislabeling of products as organic when the production of them is anything but. Similarly, actual organic products could be diluted and watered down with non-organic alternatives, or even fake organic certification could be used on the packaging.

Not only are consumers tricked into paying higher prices for products that aren’t within the guidelines required to be labeled as organic, but it can also affect their trust in organic food. This can have a huge knock-on effect on the farming sector, as legitimate organic farmers cannot face up to the fraudulent competition, which can be a massive risk to their livelihood.

The connection with France and the rest of the globe

To understand how large the issue of food fraud is, we must look at its implications around the world and how the supply chain in the industry is affected. France is an example and has a key connection with America, as many products sold on our grocery store shelves are imported and sourced from international markets like Europe.

Because of the higher prices associated with organic products and their shipments overseas, there have been scandals around fraudulent foods being misrepresented as organic, making their way from countries like France to our shores. 

The crackdown on food fraud in these countries can be seen in how those caught are being handled, such as a court in Marseille sentencing 15 people for their involvement in a network that allegedly sold meat from horses banned from the supply chain to butchers that may have been unfit for consumption. This comes as a result of traffickers of the animals falsifying documents and passports to reintroduce the animals to the supply chain.

Tackling the fraud at the source

It’s important to maintain the trust between organic farmers and both the consumers and distributors of their products, which is why cutting off food fraud at the source is crucial. How this can be done involves a multitude of approaches:

  1. Strengthening regulations:
    • Collaborative efforts internationally – Creating and maintaining relationships between nations that aim to enforce standards and consistency for organic foods is key to discovering food fraud cases before they develop into scandals.
    • Transparency in the supply chain – By implementing traceability measures throughout the supply chain, fraudulent processes and activities can be deterred. Introducing innovations like blockchain technology can provide a decentralized and tamper-resistant ledger that offers real-time information about the transportation of organic food products from farm to table.
  2. Innovating and implementing new technologies:
    • DNA testing – Technology has advanced to the point where testing the DNA is possible and can be used to identify how authentically organic a food product is. Being able to compare the genetic makeup of a product against what is expected of an organic version can help authorities identify if any fraud has occurred.
    • Smart packaging – Through implementing smart packaging solutions within the production process, consumers can access detailed information about where the product comes from, as well as certifications and testing results. This allows consumers to make informed choices about the products they’re purchasing. This can be done by attaching QR codes or RFID tags to the packaging that consumers can scan.
  3. More education for consumers:
    • Raise awareness – To improve consumer awareness of the risks posed by food fraud in organic farming, further education is necessary. This could be done through awareness campaigns to give consumers a better insight into how the products they purchase affect the industry.
    • Supporting Local Farmers – Localizing processes and production can help protect and support certified organic farmers while fostering community. Creating a direct connection between the producers and the consumers cuts out the middleman created by international supply chains and reduces the chance of fraud occurring.

Food fraud shouldn’t be disregarded, and the serious nature of its impact should be taken as seriously as other forms of fraud. Protecting organic farming throughout the country and guarding its reputation will help connect consumers with producers and establish a bond of trust and loyalty that will stimulate the economy and help develop communities.

Sources

https://www.cnbc.com/2023/01/15/food-fraud-secretly-infiltrates-america-heres-how-you-can-avoid-it-.html 

https://www.morningagclips.com/organic-food-sector-expects-15-growth-provoking-debate-over-price-justification/#:~:text=The%20Higher%20Cost%20of%20Organic%20Foods%20and%20Beverages&text=environmentally%20sustainable%20practices.-,In%202023%2C%20the%20organic%20food%20and%20beverage%20market%20grew%20by,breast%20is%20%2410.99%20per%20pound. 

https://www.foodsafetynews.com/2023/01/sentences-handed-out-in-french-horse-meat-trial/ 

 

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Global Logistics, Global Trade Daily, News, United states news

UPS to Replace FedEx as U.S. Postal Service’s Primary Air Cargo Provider

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In a significant development within the logistics industry, United Parcel Service (UPS) has announced its pivotal role as the primary air cargo provider for the United States Postal Service (USPS), effectively replacing its longstanding rival FedEx. The decision marks the culmination of FedEx’s more than two-decade partnership with USPS, signaling a strategic shift in the dynamics of air-based express deliveries.

USPS, a major customer for FedEx’s air-based Express segment, has undergone operational restructuring, transitioning from planes to more cost-effective truck-based transportation for letters and packages. While this move has led to a decline in payments to FedEx, UPS views this contract win as a substantial opportunity to bolster its market presence.

Faisal Hersi, an equity analyst at Edward Jones, notes that although FedEx’s revenue loss from the USPS contract is not immense, it will impact their business density. USPS constituted approximately 4% of FedEx Express’ annual revenue, highlighting the significance of this transition. However, Hersi suggests that this shift does not entirely disadvantage FedEx, as it allows for potential improvements in revenue consistency and operational focus.

UPS, on the other hand, anticipates significant benefits from the contract, particularly in terms of revenue and density enhancement. The financial terms of the agreement have not been disclosed by UPS, but the company has affirmed its significance.

Following the announcement, FedEx’s stock experienced a modest decline of nearly 2%, while UPS saw a 1% decrease. FedEx has also revealed plans to adapt its network to compensate for the loss of the lucrative USPS contract, which contributed nearly $2 billion annually to its business.

The inability of both parties to reach mutually beneficial terms for contract extension led to the cessation of their partnership. This decision could potentially impact around 300 pilots at FedEx, raising concerns among aviation unions about job security and corporate priorities.

Despite the contractual changes, USPS’s payments to FedEx have diminished in recent years, reflecting broader shifts in the agency’s operational strategies. As USPS undergoes reorganization to align with evolving market trends, including the rise of e-commerce giants like Amazon, there is a reduced reliance on air services for rapid deliveries.

In essence, UPS’s ascension as USPS’s primary air cargo provider signifies a significant realignment in the competitive landscape of express logistics, with implications for both companies and the broader industry.

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Global Trade Daily, International Trade, News, United states news

China Firmly Rejects US Accusations of Trade Barriers, Calls for Compliance with WTO Rules

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China’s Ministry of Commerce (MOFCOM) issued a strong rebuttal on Tuesday against the US’ National Trade Estimate Report on Foreign Trade Barriers, vehemently rejecting its classification of China as a country of “primary concern.” The ministry urged the US to adhere fully to WTO rules instead of levying unsubstantiated accusations against other nations.

MOFCOM emphasized that the assessment of countries’ trade policies should be based on whether they violate WTO regulations, noting the absence of any evidence in the US report to support claims of Chinese non-compliance. The report’s arbitrary allegations regarding China’s purported “non-market policies and practices,” as well as barriers in agricultural products and data policies, were strongly opposed by China.

Since joining the WTO, China, as the largest developing nation globally, has consistently upheld the multilateral trading system while expanding its high-quality opening-up efforts. It has continuously refined its socialist market economy system and legal framework, emphasizing the pivotal role of the market in resource allocation. These efforts have garnered widespread recognition and appreciation from the international community, according to MOFCOM.

In contrast, the US has pursued an “America first” strategy, disregarding multilateral trade norms by unilaterally imposing tariffs, formulating discriminatory industrial policies, and imposing export controls and investment restrictions under the guise of national security. These actions have raised concerns among WTO members, including China, about fair competition, MOFCOM stressed.

China urged the US to cease its baseless criticism of other nations, abide by WTO regulations, and uphold a just and equitable international trade order, MOFCOM stated.

The annual report released by the US Trade Representative’s office on Monday alleged that China has erected trade barriers related to food safety requirements, advanced manufacturing industrial policies, and data regulations.

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Nippon Steel Remains Steadfast in its Bid for US Steel

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US bipartisan agreement is thwarting Japan’s Nippon Steel from purchasing US Steel. President Joe Biden and former President Donald Trump are against the proposed $14.1 billion deal, which was initially introduced in December of last year. 

Nippon Steel remains steadfast in its attempt to salvage the offer, citing broader benefits to US steel union workers should the sale be approved. The Japanese giant claims there would be no plant closures nor layoffs due to the purchase and would even move its US headquarters to Pittsburgh (US Steel headquarters) should the sale go through.   

US Steel was once known as the “arsenal of democracy” during World War II. Founded by Andrew Carnegie, J.P. Morgan, and Charles Schwab, among other prominent industrialists, the past steel colossus was revered worldwide until the deindustrialization of the Rust Belt. By the mid-1980s, American steel production only produced 10% of the world’s steel, down from 40% in the mid-1950s.

A 2021 Congressional Research Service report found that steel plays a vital role in critical infrastructure projects, missile systems, and overall defense. Politically, practically no issues achieve bipartisan support in 2024, yet protecting the steel industry is one. Key swing states such as Ohio, Pennsylvania, and Minnesota employ tens of thousands of steelworkers, and both candidates are vying for their support. 

While Japan is a trusted US ally, Nippon’s nine facilities in China have caught the eye of Democrats and Republicans alike. Between 2001 and 2013, Nippon added facilities to its portfolio amidst aggressive Chinese steel demand. American steel producers remember the period as a time when China would dump excess metal stateside and globally, leading to cratering prices and the unprofitability of several US companies. 

The proposed deal is now in the hands of the Committee on Foreign Investment in the US (CFIUS). CFIUS is tasked with assessing national security concerns, and the US Treasury Department entity is already warning against increased politicization with the proposed sale. 

Should China not be part of Nippon’s portfolio, the US domestic manufacturing issue could likely be resolved. However, in an election year where middle-class families feel the inflationary pinch and Chinese influence has been deemed a national security concern, the deal will remain hotly contested and a politicized issue for CFIUS to wrestle with.  

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Global Logistics, Global Trade Daily, International Trade, News

Unraveling the Illusions: Assessing the U.S.-China Trade War

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In the realm of U.S. politics, the narrative of leveraging trade war tactics against China persists, championed both by the current Biden administration and its Republican predecessor, Trump. Yet, amidst the clamor of trade bullying as a campaign strategy, the question lingers: Has the United States truly gained anything from this prolonged trade dispute, and what implications does it hold for China?

Despite fervent efforts to curb Chinese imports and mitigate trade imbalances, the reality paints a starkly different picture. The U.S. goods trade deficit ballooned to unprecedented levels, undermining the efficacy of Trump’s tariff-centric approach. Economists caution against the fallacy of equating trade deficits with economic woes, attributing them instead to deeper structural issues.

Moreover, attempts at decoupling from China have proven futile as supply chains remain intricately entwined. While direct trade may have waned, intermediary countries often serve as conduits for Chinese inputs destined for American shores, complicating supply chains and inflating costs. Trump’s promise of reviving manufacturing and job creation has similarly faltered, with tariffs failing to significantly impact employment figures, and retaliatory measures exacerbating economic strains.

The repercussions extend beyond domestic borders, casting shadows over global trade norms. The U.S.’s unilateral actions, bypassing international arbitration mechanisms, have eroded the foundations of the multilateral trading system. Trump’s utilization of Cold War-era tactics, such as the Section 301 investigation, and Biden’s continuation of protectionist measures only exacerbate tensions, perpetuating uncertainty in the global economy.

Meanwhile, the impact on China’s economy presents a more nuanced narrative. Despite trade frictions, China maintains its position as a global economic powerhouse, bolstered by robust trade networks and strategic partnerships. Embracing multilateralism, China champions free trade agreements and upholds the principles of open markets.

Contrary to the rhetoric of decoupling, the intertwined nature of the U.S. and Chinese economies persists. Stateside, export-dependent regions like California rely heavily on Chinese markets, while Chinese exports continue to meet American consumer demand. Efforts to sever these economic ties are deemed fallacious, underscoring the enduring interdependence of the world’s largest economies.

As the specter of trade war rhetoric looms large in political discourse, the need for a recalibration of strategies becomes increasingly apparent. The pursuit of protectionism and unilateralism yields little benefit, instead perpetuating economic uncertainties and global tensions. In embracing collaboration over confrontation, both the United States and China stand to foster greater economic stability and mutual prosperity in an interconnected world.

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A US Manufacturing Flex-Work Model Gains Traction

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US manufacturing firms are turning to flexible, employee-driven scheduling as the supply of would-be workers is drying up. Most manufacturing plants operate two shifts: 5 AM to 5 PM and then 5 PM back to 5 AM. Factories require uninterrupted production 24 hours a day, seven days a week. Historically, the easiest way to coordinate this was two 12-hour shifts daily. 

This model has worked for decades, but many factories are having difficulty retaining and attracting new employees amidst a blue-collar labor crunch. The median US manufacturing employee is 44.1 years old – two years older than the average US worker. By 2030, the Department of Labor expects 2.5 million factory workers to retire, compounding a roughly 2.1 million manufacturing jobs shortage. 

Over the past 15 years, factories have turned to automation to mitigate worker shortages. Yet, for some plants, automation can only do so much. Flex-work is a new model in which workers are provided the option to choose their own start times and shift lengths. Employees work closely with their supervisors every two weeks to define their shifts, and supervisors then construct a monthly schedule and fill in the gaps where needed. 

While this sounds simple enough, most plants cite increased costs that come with monthly planning and training should more employees be onboarded part-time. Yet, much of this is offset by a reduction in overtime pay and increased retention. Flex-work is especially attractive for couples working at the same plant with children. They can schedule work times based on the other’s schedule thus making room for child-care duties. 

Before the pandemic, US factories hired eight to nine people for every ten openings. That number has now dropped to six, and the ratio is at its lowest level since 2000. With flex-work, plants are beginning to target segments of the population that had not traditionally been employed in the traditional 12-hour plant shifts. These included young parents and those who care for aging parents or have similar obligations that make traditional set hours difficult to work. 

While the factory churns out the product, other entities along the supply chain must adapt to the flex-work model. One of the biggest obstacles for many plants is finding transportation companies willing to adapt to varied pick-up times during the week instead of one standard schedule for most of the year. This comes at a price, but with an aging workforce and less supply, manufacturing plants must employ flex-work and other employment models to keep up with changing demographics.