⚡️ Ford's Lightning Strike
Good morning! On this delightful National Hot Cocoa Day, we welcome you to another edition of "The Workday Dash," your go-to source for the latest developments and insights in the world of supply chain and logistics. From automation advancements to sustainable logistics solutions, we've got a steaming cup of information to keep you warm and informed throughout this winter season.
So grab your cocoa, cozy up, and let's dive into the world of supply chain excellence on this sweet December 13th! ☕️
———
Ford Slashes 2024 Production of Electric F-150 Lightning by 50%
Ford is scaling back its production of the all-electric F-150 Lightning pickup, cutting it in half for next year. They're targeting around 1,600 F-150 Lightnings per week starting in January, down from the initial plan of about 3,200 per week. This shift is in response to align production with customer demand, considering factors like slower-than-expected EV demand, high prices, and interest rates, while also postponing $12 billion in upcoming EV investments.
Check out today’s featured article from CNBC to learn more about why Ford is stopping 50% of the production of their F-150 lightnings. Is the production costs too expensive for them to be overproducing their vehicles?
Featured Article
Ford cuts planned 2024 production of electric F-150 Lightning in half | CNBC
“Ford Motor will cut planned production of its all-electric F-150 Lightning pickup roughly in half next year, marking a major reversal after the automaker significantly increased plant capacity for the electric vehicle in 2023.”
Bank & Investment
Bank Failure in Iowa Attributed to Trucking Investment Losses
As the trucking industry tries to bounce back from tough times, mounting loan payments and credit issues related to some banks' transportation portfolios are shedding light on the sector's financial woes. The recent closure of Citizens Bank in Sac City, Iowa, and its troubled commercial trucking loan portfolio, which led the FDIC to intervene with Iowa Trust & Savings Bank taking over, brought attention to these vulnerabilities.
Although the FDIC and state regulators see it as an isolated case, it serves as a stark reminder of the financial struggles faced by certain trucking companies, especially those with loans outside their territory that have suffered significant losses. These developments highlight how the industry relies on credit during challenging times, and some banks have reported more troubled loans in the transportation sector, raising concerns about the industry's stability.
Hawaii & Sustainability
Lahania Begins Partial Reopening After Wildfire Devastation
Lahaina's historic town center on Maui, Hawaii, which suffered a devastating wildfire in August, has partially reopened for residents and business owners who can obtain day passes. This is a significant step for the affected community, although there's still a lot of work ahead to clear debris and start rebuilding.
The reopened areas include Banyan Tree Park, the public library, an elementary school, popular restaurants, and a section of Front Street that was hit hard by the fire. The cleanup is in progress, with the U.S. Environmental Protection Agency handling hazardous materials removal, and the U.S. Army Corps of Engineers gearing up to haul away the remaining debris.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇬🇧 Fueling Britain's New Railway with a Robust Supply Chain. Great Britain's HS2 high-speed railway project is all about spreading the wealth, aiming to bring in a cool £1 billion for its procurement partners. Right now, there are over 3,200 companies in on the action, and HS2 is spilling the beans on more than 300 work packages up for grabs in the next 18 months. This is a golden opportunity for local businesses to jump in. HS2 is a big deal, stretching across 140 miles from London to Birmingham with four shiny new stations and two depots in the mix. So far, they've dished out a whopping £17 billion worth of work to businesses in the UK.
🇨🇳 Merck Adapts to Chip Geopolitics with the 'China for China' Strategy. Merck KGaA has a smart move to handle the growing tensions between the U.S. and China in the semiconductor world. They're all about the 'China for China' approach. Known mostly for their pharma game, Merck is all about getting up close and personal with their customers. They've been doing it for a while, and this strategy kicked off in 2018 when they saw China's hunger for LCD panels. Now, the deal is to serve the Chinese market with their 'China for China' model, all while keeping a separate supply chain for the rest of the world.
iLevel With You 🏡
More topics for the average American household to consider…
👮🏼♀️ Hackers Exploit Vulnerabilities in Automotive Supply Chain's Third-Party Suppliers. A study by cybersecurity whizzes VicOne found that almost 90% of cyberattacks on car makers aren't going straight for the big guns (original equipment manufacturers or OEMs), but they're going after the folks in their supply chain crew – like logistics and service providers. Cars these days are like high-tech fortresses with all their connectivity, automation, and fancy driver assistance equipment. That's why these sneaky hackers are eyeing the smaller, less-guarded companies in the supply chain. It's a real pain because these attacks mess up the whole supply chain and hit the big car-makers where it hurts.
🚛 Drayage Industry at a Crossroads: Insights from Software Executives. The drayage industry is facing a pivotal moment in adopting technology to address congestion and sustainability challenges, as outlined in a report by drayage software provider PortPro. While some drayage carriers are embracing digital tools to enhance operational efficiency and services, the industry as a whole is still hindered by manual processes. PortPro's chief customer officer, Toni Ann Careccio, highlighted the resistance to change within the trucking sector, citing a preference for established practices and concerns about adopting new technology. However, she emphasized the need for the industry to adapt to evolving customer expectations for visibility and connectivity, driven in part by companies like Amazon, or risk falling behind.
⛽️ Diesel Prices Nationwide Fall Below $4 Mark. As 2023 comes to a close, diesel and gasoline prices continue to decline, with diesel pump prices in various regions dropping below $4, according to the U.S. Energy Information Administration (EIA). The national average for on-highway diesel fuel currently stands at $3.987 per gallon, marking the seventh consecutive week of price drops. Notable regions with diesel prices below $4 include the Lower Atlantic subregion, the Midwest, and the Gulf Coast. On the gasoline front, national average prices are at $3.136 per gallon, reflecting a 10-cent drop since the end of 2022, with many regions experiencing similar decreases.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🎄 New Jersey's Robust Logistics Networks Drive the Holiday Season. In 2022, 196.7 million U.S. consumers shopped in-store and online between Thanksgiving and Cyber Monday, according to the National Retail Federation. As demand for holiday gifts continues, New Jersey plays a pivotal role in supporting nationwide distribution. The state's Port of New York & New Jersey is the second largest in the country, facilitating the import of goods, and its intermodal connectivity ensures efficient distribution via air, rail, and truck transport. New Jersey's strategic location, robust infrastructure, and highly skilled workforce have attracted major e-commerce companies and manufacturers. With investments in the manufacturing industry and a growing workforce, New Jersey is positioned to thrive in logistics and transportation.
👨🏽💼FIU Business Leading the Way in Shaping the Future of Supply Chain Management. Dr. Gregory Maloney, director of Florida International University College of Business' master's program in logistics and supply chain management, emphasizes the significance of hands-on experience in understanding the complexities of the industry. While FIU Business provides students with a comprehensive theoretical foundation in supply chain management, the program also prioritizes real-world business skills and industry connections. This approach aims to produce managers and executives equipped not only to run a business but also to oversee its entire scope.
💵The High-Stakes Battle Over Bankrupt Freight Company Yellow. Investors aiming to rescue the bankrupt trucking company Yellow (formerly YRC) have encountered challenges as executives from the bankrupt company rejected a billion-dollar bid. Led by trucking executive Sarah Riggs Amico, the investor group seeks to revive Yellow, but their efforts face obstacles, including the restructuring of a $700 million CARES Act loan repayment, which the U.S. Department of Treasury argues cannot be modified. A bipartisan group of senators supports saving Yellow and its 30,000 jobs, pressing the Treasury to restructure the loan. Despite Yellow's demise, industry experts suggest that the trucking market has absorbed the loss, and companies like Saia have benefited from Yellow's absence.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 22, 2024, from iLevel Logistics Inc.