Warehouse employers regain employment leverage | Canadian port strike leaves $19 billion of goods in limbo | US factory orders up 0.3% in May, 1.1% year-over-year
US warehouse operators have shed 41,000 jobs since employment peaked in 2022 with 1.96 million jobs, according to the Bureau of Labor Statistics, and are largely abandoning higher starting salaries, bonuses and other expensive strategies to entice and retain workers. "This year it started turning to where it felt like there was enough availability that we weren't feeling a pinch around being able to find good workers, quality workers, in the warehouse at the wages that we offer," says John Merris, chief executive of Solo Brands.
Negotiations between the British Columbia Maritime Employers Association and the International Longshore & Warehouse Union Canada's Longshore Division have been put on hold as they await discussion with federal mediators. The BCMEA said it is ready to return to the table if the union presents a reasonable proposal, while the ILWU accuses the BCMEA of sabotaging progress on maintenance work contracting. The strike has halted trade at Canada's western ports, causing an estimated $19 billion in trade to be stranded.
New orders for US-manufactured goods increased by 0.3% in May from the previous month, matching the progress seen in April, according to Commerce Department data released Wednesday. Factory orders were 1.1% higher than a year earlier. The 0.3% month-to-month increase was smaller than expected, but pockets of strength exist, particularly in transportation equipment, machinery, electrical equipment and appliances.
Although logistics costs, inflation and rate hikes have taken a larger toll on US businesses over the past year, e-commerce remains robust and investments in technology and reshoring efforts have increased, according to experts at a webinar ahead of the release of the "2023 State of Logistics" report. Other issues affecting logistics include overcapacity in ocean and trucking transportation compared with demand, uncertainty over labor issues and continued need for resilience and agility.
More organizations are redesigning supply chains to bring them closer to demand locations, stabilize delivery schedules and reduce disruptions, cycle times and inventory volume, writes Nate Rosier, senior vice president at enVista. Rosier recommends that any redesign should include flexibility of sourcing location, creating a network of small distribution centers and customizing distribution nodes.
Trust in artificial intelligence within the supply chain can be gained only by an "ethical framework" that makes up the workings of how the technology reached its decisions, says Mike Kiser, who leads strategy and standards at cloud-based security firm SailPoint. While Kiser says he doesn't see AI ruling the world, it can do damage, including people "assuming that it can do too much."
US companies have secured roughly $150 billion in supply chain financing and the tactic could become a riskier move as the costs of associated interest rates rise and ongoing availability could be curtailed by stressed banks that can withdraw the funds at any time, writes Adam Josephson. "If this form of financing becomes prohibitively expensive or unavailable, companies will be forced to find an alternate source of liquidity (most likely drawing on their revolving lines of credit with banks along with using any excess cash they have on hand)."
The Federal Trade Commission's updated endorsement guidelines provide more details about what companies must do to make it clear when they're paying people to review or promote their products. Marketing and legal experts say social media and influencer marketers are now "on notice," with new guidelines including putting disclosures within video, not just within the text of a post.
Leaders known for being responsible will be the ones others turn to for guidance, because they know the leader will deliver on their promises and offer assistance when needed, says Jaclynn Robinson, a senior learning and development consultant for Gallup. "So when it comes to goal setting, general responsibilities, key priorities, challenges, they know they can depend on this manager to help them think through and manage their workload," Robinson says.
Make your communication with others more effective by being prepared before a meeting, and checking in with your own level of energy, says Muriel Wilkins, the co-founder of Paravis Partners, who recommends stepping back or rescheduling if you're tired, frustrated or angry. "For some people, it will make things worse for them to hear that their leader is stressed out or doesn't agree or is tired. And for others, it'll actually help humanize it, it'll make it better," Wilkins says.