Auto, aviation drive US factory gains in March | Survey: 54% of companies to automate supply chain tasks | Martin expands into Midwest with Trinity Hardware deal
US manufacturing output increased more than expected in March, jumping 0.5%, according to Federal Reserve data. The March production increase is the latest sign of improvement in the sector, driven by a boost in production in the automotive and aviation segments and gains in consumer goods output.
According to a survey by Descartes, 54% of companies are looking to automate repetitive tasks to streamline supply chain operations and ease workforce shortages. The survey also found the most popular applications of technology included delivery route optimization, real-time shipment tracking and driver mobile productivity.
Maintenance, repair, operation and production supplies distributor Martin Supply has reached a deal with Agrisolutions to acquire its Wisconsin-based Trinity Hardware Headquarters, a distributor of standard and custom industrial fasteners. The deal is expected to expand Martin Supply's reach in the Midwest market.
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Companies that offer guided ecommerce interactions -- which use configurators to allow clients to conduct more complex transactions online and customize orders -- drive order accuracy, increased margins and purchase order consolidations for companies, says Jarrod Anderson, president and CEO of Walker's Office Supplies. Another differentiator for distributors is automation, service speed and consistency "in execution, in value and service," says Klaus Werner, chief digital officer and adviser with Egility Group.
Carrier earnings are not likely to achieve a rebound owners once thought possible as manufacturers and retailers clamp down on shipping costs and reduce inventory, with average rates on the spot market dropping by 6.5% since the beginning of the year, according to DAT Solutions. Truckers expanded their fleets during the pandemic, and there is a disconnect between the large number of trucks still available and diminished shipping needs.
US industrial real estate is transforming significantly as demand switches from logistics locations to manufacturing facilities in response to the nation's reshoring efforts. The new dynamic is also reflected in the development pipeline, with robust growth in the construction of new manufacturing facilities but a 40% year-over-year decline in warehouse and distribution development.
Companies can boost sales through a better understanding of what makes their customers happy, writes Pohan Lin, senior web marketing manager at Databricks. Use metric tools such as the Customer Satisfaction Score, Net Promoter Score and Customer Effort Score to gain insight on what customers really think about a company's products or services, Lin advises.
Steve Dennis, a strategy consultant and author of "Leaders Leap: Transforming Your Company at the Speed of Disruption," advises business leaders to learn the value of uncertainty and let go of ego. "Embracing uncertainty creates a sense of wonder, of discernment, of curiosity -- all incredibly valuable skills for driving creativity and seeing a wider range of options and actions," Dennis writes.
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