Warehouse market expected to cool as Amazon slows its physical expansion
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Good morning - happy Saturday! Waiting on an Amazon purchase to how up today?
Amazon is slowing it’s roll when it comes to expanding its physical and staffing capacity, likely due to losses reported in Q1. The warehousing market has been white-hot for months as companies scramble for locations, but Amazon’s move may mean a cool-off period is right around the corner.
Check out today’s featured article from SC Digest for the expectations surrounding the warehousing boom and where it can go from here. ☕️
Driving Eric Cartman GIF By South Park via GIPHY
Featured Article:
Supply Chain News: Will Amazon Ditching of Fulfillment Space Cool Red Hot Warehouse Market? | SC Digest
“After adding fulfillment center and other logistics space at a pace almost hard to be believe in the past decade and especially the last two years, surprising news from an article on Bloomberg.com last week: Amazon is moving ahead with either abandoning or even subletting as much as 30 million square feet of logistics space, saying it simply has a lot more than it needs in some markets.”
Water Cooler Topics
🚂 $368 million in grants has been awarded by the Biden Administration to rail systems. This move is meant to better improve the supply chains. This grant program, the Consolidated Rail Infrastructure and Safety Improvements (CRISI), will award the funds to 46 projects in 32 states as well as the District of Columbia. the project will improve and expand passenger rail as well as funneling money into high-speed trains for passengers to better travel.
🥕 Complexity defines the food supply chain and the U.S. government wants to refine it. The U.S. Department of Agriculture (USDA) has advised a plan in development to better structure the food supply chain for customers, producers, and suppliers. It is expected the actions announced will strengthen the supply chain so it will be better prepared for any future crises.
🇨🇳 Shanghai is preparing for a long road ahead after weeks of Covid-19 shutdowns. Factories and shops are beginning to open up for the first time since March, but many are still below working capacity. The long recovery ahead leads many economists to signal their worry for any supply chain resolutions within the coming months, especially as the holiday season approaches.
Digital transformation is needed for the future of supply chain resiliency
According to a recent MHI survey, the majority of supply chain leaders are investing significant capital in digital refinement within their companies. The pandemic seems to have ushered this movement forward, as supply chain issues plagued every sector of most industries.
Those slow to adopt better digital transformation are expected to be left in the dust.
Industry Forecasting 📊
“The US Purchasing Managers Index (PMI) for May, released this week by the Institute for Supply Management (ISM), was up just a little from the April reading and was comfortably above the key 50 level that separates US manufacturing expansion from contraction.”
Trucking industry brings supply chain stability | Commercial Carrier Journal (ccjdigital.com)
“Every once an awhile you need to take a review of the current market, and especially so during these turbulent times in our economy.”
Business Strategy 💡
“Company sees its business take off during the pandemic and its workforce double.”
Booster to expand with $125M funding boost | Bulk Transporter
“Mobile fuel delivery company provides fleets access to lower-carbon solutions, enabling ‘sustainability, productivity and cost savings’.”
Ford to add 6,200 jobs in Ohio, Michigan and Missouri | AP News
“Ford will add 6,200 factory jobs in Michigan, Missouri and Ohio as it prepares to build more electric vehicles and roll out two redesigned combustion-engine models.”
Electric Vehicles 🔋
The Nissan Leaf Battery Costs More To Replace Than You Think (msn.com)
“Since it first went on sale in the U.S. in late 2010, the Nissan Leaf has been one of the more popular and affordable EVs on the market.”
The 'messy middle' isn't bad | Fleet Maintenance
“The transition to zero-emission vehicles will be messy, but 'messy' does not equal 'bad.' Focusing on this long-term goal doesn't mean losing gains in the short-term.”
Artificial Intelligence 🤖
Autonomous trucking companies seek to show automation is road-ready | Transport Dive
“AV companies are conducting trials to show their technology is safe. Will they be enough to convince the public?”
Company Culture 🎉
How ecosystems address today's talent and tomorrow’s workplace - SmartBrief
“Leaders today are struggling to create workplaces that attract and retain employees who feel engaged and empowered.”
Workplace values can help increase hiring, retention - SmartBrief
“Businesses around the globe are lamenting how difficult it is to hire people right now.”
Human Resources 📝
Red-hot summer job market awaits US teens as employers sweat | AP News
“Mary Jane Riva, CEO of the Pizza Factory, has a cautionary message for her customers this summer: Prepare to wait longer for your Hawaiian pie or calzone.”
Infrastructure 🔨
U.S. infrastructure upgrades vital | AJOT.COM
“New U.S. infrastructure funding will improve grain and energy shipments transported along the inland waterways thanks to improved port, lock, and dam upgrades, according to Paul Matthews, executive director of the Port of South Louisiana.”
Covid-19 😷
Amazon doubles size of disaster-relief logistics facility - FreightWaves
“Amazon.com Inc. said Wednesday it has doubled the size of its facility in Atlanta dedicated to storing and distributing emergency supplies to support disaster-relief efforts.”
Driver Issues 🚛
Roehl Transport raises driver pay with new model | Commercial Carrier Journal (ccjdigital.com)
“Time is money, but miles have long been the preferred unit of measurement when it comes to charging shippers and paying drivers.”
OOIDA encourages members to comment on speed limiter mandate - (landline.media)
“In hope of inciting more truck drivers to comment on the proposed speed limiter mandate, the Owner-Operator Independent Drivers Association sent its members a Call to Action notice.”
TMS 💻
The impact of TMS on driver success | FleetOwner
“Automation can help fleet managers unlock greater efficiencies. Their most urgent responsibility, however, is taking care of their drivers.”
Diversity 🤜🤛
Women In Trucking Association Announces its June 2022 Member of the Month
“The Women In Trucking Association (WIT) has announced Elizabeth Perez as its June 2022 Member of the Month.”
Customer Relations 🤝
Failing in the trough | Seth's Blog (seths.blog)
“There’s a time gap. Marketers raise expectations in order to get someone to sign up and try a product and service.”
Fuel Tech ♻️
As natural gas expands in Gulf, residents fear rising damage | AP News
“The front lawn of Lydia Larce’s home is strewn with debris: Remnants of cabinets and chunks of pink shower marble lie between dumpsters.”
