Powering up: $3B battery plant sparks excitement
Good morning! Today, we're excited to celebrate National Prime Rib Day, a day dedicated to one of the most succulent and flavorful cuts of meat. As we savor the delicious taste of prime rib, let's also take a moment to reflect on the intricate supply chain that brings this culinary delight from farm to table. From the farmers who raise the cattle, to the processors who prepare the meat, to the distributors who transport it to restaurants and grocery stores, the prime rib supply chain is a complex web of logistics that involves many different players.
So let's raise a glass (or a fork) to the hardworking individuals who make National Prime Rib Day possible, and dive into the latest news and trends shaping the world of supply chain. 🥩
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CM and Samsung are among the companies that announced a $3 billion investment in a US battery plant, which will produce high-nickel batteries and cylindrical cells for EVs. With an annual production capacity of 30 GWh, mass production is set to begin in 2026. This move is a strategic one for the expanding electric car market, as it can help reduce battery costs and make EVs more affordable for consumers.
Check out today’s featured article from Supply Chain Brain to discover what the newly established battery plant in the United States could signify for the future of the electric vehicle market. Could this lead to a reduction in the cost of batteries and electric cars? Will it serve as a catalyst for more battery plants to be set up in America?
Featured Article:
GM, Samsung SDI Outline $3bn Spend on U.S. Battery Plant | Supply Chain Brain
“General Motors Co. and South Korean battery maker Samsung SDI Co. plan to spend $3 billion on a new cell plant in the U.S. amid a push by President Joe Biden to encourage domestic investment in return for production tax and EV credits.”
Stocks & Company Growth 📈
UPS experiences a stock decline
The projected revenue for 2023 has been adjusted downward by UPS, with the lowest estimated sales figure being around $97 billion. It is now expected that revenue will reach approximately $99 billion due to various economic factors. Unfortunately, this news has had a negative impact on the company's stock, which experienced a nearly 10% drop earlier this week - the largest decline since January 2015.
United Parcel Service (UPS), listed on the New York Stock Exchange (NYSE) under the symbol "UPS," is among the largest package delivery companies worldwide, offering comprehensive logistics, transportation, and supply chain management services. As a publicly traded corporation, UPS's stock price is subject to a multitude of factors, including economic indicators, industry developments, company performance, and market trends. Variables that can affect UPS's stock value include alterations in global trade policies, shifts in fuel prices, competition from other logistics firms, and the company's ability to respond to evolving consumer preferences and technology.
Driver Issues & Unionization 💪
Why are Unions Scarce in the Truck Driving Industry?
With almost 2 million long-haul truck drivers, unionization rates in the trucking industry are considerably low compared to other sectors in the United States. This could be due to several factors. Firstly, the trucking industry comprises many small and medium-sized businesses, with several owner-operators or small fleets that may not prioritize unionization as much as larger corporations with more employees. Additionally, truck drivers often operate independently and may not have a sense of solidarity with other drivers. Their remote work locations may also limit opportunities for organizing and meeting with other drivers.
The deregulation of the trucking industry in the 1980s intensified competition and cost pressures, which may have hampered unionization efforts. Trucking companies have been known to utilize strong-arm tactics to discourage unionization, including threats of replacing unionized workers with non-unionized ones. Furthermore, some truck drivers may perceive union membership as unnecessary or even detrimental to their careers, fearing that union rules and regulations could restrict their flexibility or limit opportunities for career advancement.
Despite these challenges, some unions, such as the International Brotherhood of Teamsters, represent a portion of truck drivers and other transportation workers. However, the overall rate of unionization in the trucking industry remains significantly low in comparison to other industries.
Let’s Get Global 🌎
🔋 Honda, a Japanese Automaker, Unveils its EV Strategy. Honda has announced in Tokyo its preparations for a transition to electric cars in North America, which they anticipate will result in significant sales and assist in achieving their target of producing 2 million EVs annually by 2030.
🇨🇳 American Companies Operating in China. It's typical for companies operating in foreign countries to have concerns and viewpoints regarding the state of bilateral relationships, particularly when their operations are located in those countries. Given the current geopolitical climate and escalating tensions between the United States and China, it is unsurprising that American companies operating in China may be becoming increasingly pessimistic about the status of bilateral ties.
iLevel With You 🏡
More topics for the average American household to consider…
🍺 Heineken Overhauls its Supply Chain. According to the European company, it's crucial to undertake the transformation of its supply chain in a "ninja" style. The reason is that the digital transformation process has a high failure rate of 70%, making it challenging to improve its supply chain.
🏎️ The Battle Over Speed Limiters Persists. A speed limiter is a device designed to restrict the maximum speed of commercial trucks. It aims to improve road safety by reducing the potential of accidents resulting from excessive speed. In the United States, the utilization of speed limiters on commercial trucks is not mandatory, although some states require them for specific types of trucks or on certain roads. Nonetheless, numerous trucking companies opt to install speed limiters on their vehicles voluntarily as a safety precaution.
🧐 The Supply Chain Can Benefit from Analytics. Analytics play a vital role in supply chain management by providing valuable insights into different aspects of the supply chain, including demand forecasting, inventory management, transportation and logistics optimization, supplier management, and risk management. Through data analysis in these areas, companies can recognize trends, patterns, and opportunities for enhancement, enabling them to make informed decisions to enhance their supply chain operations.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💰 Investment Decisions and the Rise of Nearshoring. Nearshoring presents a cost-effective option compared to offshoring as it enables companies to take advantage of lower labor costs while also maintaining proximity to their customers and suppliers. This approach can be especially appealing for businesses that necessitate a high level of customer interaction or rely on just-in-time delivery of goods.
🤝 Yellow Seeks to Reopen Negotiations with Teamsters. Yellow Corp. has agreed to the Teamsters' challenge of negotiating comprehensive changes with unions during contract bargaining. If the terms are accepted, the carriers intend to divest 28 terminals and consolidate seniority lists.
🚂 Norfolk Southern Reports $387 Million Charge in Q1. Following the East Palestine derailment earlier this year, Norfolk Southern has reported a charge of $387 million. The company generated $711 million in revenue this quarter, which is over 30% less than the typical revenue generated during this period.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 27, 2024, from iLevel Logistics Inc.