🧨 Explosive delays on 4th of July
Good morning! Happy National Logistics Day! As we celebrate the crucial role of logistics in driving global commerce and connecting businesses around the world, we find ourselves at the crossroads of innovation and efficiency. June 28th marks a special occasion to recognize the unsung heroes behind the scenes—the dedicated professionals who ensure the smooth flow of goods from point A to point B.
So, sit back, grab a cup of coffee, and immerse yourself in the fascinating world of supply chain and logistics. Happy National Logistics Day, and thank you for being part of our vibrant community! ☕️🚛
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This Fourth of July weekend is projected to break records in terms of the number of Americans traveling, with a focus on motorists hitting the highways. AAA anticipates that 50.7 million people will travel 50 miles or more from home, surpassing the previous record set in 2019.
The majority of travelers will opt for car travel, with an estimated 43.2 million individuals driving to their destinations, marking a 2.4% increase from last year and a 4% increase from 2019. Despite limited inventory and higher prices, consumer demand for travel remains strong. Gas prices this summer are lower than they were a year ago, contributing to the increased travel outlook. However, with the high number of travelers, INRIX predicts significant congestion, particularly on Friday, June 30, suggesting travelers use traffic apps and local notifications to minimize delays.
Check out today’s featured article from Truckers News to read more about what to expect with the record number of travelers on the road for the Fourth of July holiday. Why will there be so many more travelers this year than before? Why will the amount of driver percentage go up by almost 5%?
Featured Article:
Expect to share the road with record number of Fourth of July travelers | AP News
“Heads up, truckers: a record number of motorists are expected to hit the highways during the upcoming Fourth of July period.”
Drug Testing & Regulations
Positive Drug Tests in U.S. Workforce Hit 20-Year Peak Amid Marijuana Legalization
The legalization of recreational marijuana in certain states has had a notable impact on the overall drug test positivity rate within the workforce, reaching a two-decade high, according to Quest Diagnostics' analysis. Among various industries, the retail trade sector exhibited the highest number of positive drug tests, encompassing substances beyond marijuana.
Accommodation and food services, as well as transportation and warehousing, followed closely. The positivity rate specifically for marijuana in the general U.S. workforce has demonstrated a continuous upward trend, hitting a record high of 4.3% in 2022. This increase is evident in both post-accident testing and overall positivity rates. Additionally, the presence of amphetamines also contributed to the rise in workforce positivity. These findings indicate a correlation between the legalization of marijuana and the surge in drug test positivity rates observed within the U.S. workforce.
Manufacturer & Loans
Ford Battery Plants Poised to Secure $9.2 Billion Federal Loan
Ford's ambitious plans to construct massive battery plants in Tennessee and Kentucky, supporting the production of electric vehicles (EVs) and EV components, are set to receive a substantial $9.2 billion loan from the U.S. government. This loan, facilitated through the Advanced Technology Vehicles Manufacturing Loan Program, will be awarded to BlueOval SK, a joint venture between Ford and South Korean battery manufacturer SK On responsible for overseeing the construction and operation of the battery plants. The loan will be granted once specific employment targets are met, with the aim of creating 5,000 construction jobs and 7,500 operational jobs in total across the three facilities.
Alongside the battery plants, Ford and SK On are planning to establish an assembly plant in Tennessee, designed to manufacture up to 500,000 electric pickup trucks annually. The collective investment for these projects is estimated to reach $11.4 billion. The development of these facilities is anticipated to drive the creation of thousands of employment opportunities and strengthen domestic supply chains, contributing to the electrification of mobility and the production of high-quality batteries for future Ford and Lincoln electric vehicles.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🛤 Intel Establishes Chip Production Sites in Germany and Poland to Grow Global Footprint. Intel is strategically growing its manufacturing capabilities in Europe, with significant investments planned for chip production sites in Wrocław, Poland, and Magdeburg, Germany. The company intends to allocate $4.6 billion for an assembly and testing facility in Wrocław while expanding its investment in the semiconductor fabrication plant in Magdeburg to approximately $33 billion. These developments, coupled with Intel's $17 billion investment in a manufacturing complex in Ireland, aim to establish a comprehensive semiconductor supply chain in Europe.
🇨🇳 Examining the Efforts of 3 Major Companies to Relocate Supply Chains from China and Their Progress Away from the 'Factory of the World'. China's longstanding position as the global manufacturing hub is facing challenges as companies reassess their supply chains. Factors such as geopolitical tensions and the impact of COVID-19 lockdowns have prompted major companies to explore alternatives and reduce dependence on China's manufacturing capabilities. Apple, for instance, has been diversifying its supply chain away from China by shifting some iPhone production to India. However, Chinese contractors remain integral to certain products like the Vision Pro mixed reality headset. Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, is also navigating geopolitical tensions. While it has manufacturing facilities in China, the company is expanding its presence in Taiwan and the US.
iLevel With You 🏡
More topics for the average American household to consider…
🛍 Target Expands Last-Mile Delivery with Inaugural Extension Facility. Retail giant Target has bolstered its last-mile delivery capabilities in the Atlanta area by introducing its first "extension" facility. The facility, located in Smyrna, Georgia, serves as a transfer point for packages from Target's Atlanta sortation center that are destined for areas outside the center's delivery range. Target's subsidiary, Shipt, utilizes drivers to carry out the final delivery to customers. The extension facility currently handles up to 1,500 packages per day, helping Target reach an additional 500,000 customers in the Atlanta market for next-day delivery with minimal added costs.
🤑 Amazon Explores Crowd-Sourcing eFulfillment to Local Businesses. Amazon is exploring a new eFulfillment strategy called Amazon Hub Delivery, which aims to utilize small businesses as delivery partners to expand its fulfillment reach. Under this program, local establishments such as coffee shops, florists, and IT shops can become partners and receive packages for Amazon customers in their area. The shop owners or their employees would then be responsible for delivering these packages to the designated customer locations.
😣 Industries Where Workers Face the Highest Levels of Pressure. Work stress continues to be a prevalent issue, as revealed by a recent survey conducted by Vivian Health. The survey found that nearly half of the respondents consider their jobs to be stressful, leading to 50% of them contemplating or actively pursuing opportunities in different industries over the past year. The survey ranked the industries with the highest levels of stress, with Medical & Health Services topping the list, followed by Financial Services and Accountancy, IT & Telecoms, Hospitality and Leisure, Education, Media, Marketing, Advertising, PR & Sales, Manufacturing, Retail, Transportation & Distribution, and Construction.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💁🏼♀️ Women in Motion mentorship program to be launched. The American Trucking Association (ATA) has unveiled its Women in Motion Mentorship Program, aimed at fostering the growth and development of women in the transportation industry. The program will be launched during ATA's Management Conference & Exhibition, allowing mentors and mentees to connect and establish valuable relationships. ATA aims to create an inclusive environment where experienced leaders can inspire and guide the next generation of women leaders in the industry.
💰 Lordstown Motors' Bankruptcy Filing and Legal Battle with Foxconn over Funding Deal. Lordstown Motors, the struggling electric-truck maker, has filed for Chapter 11 bankruptcy protection and has initiated a lawsuit against Foxconn, accusing the Taiwanese manufacturer of breaching an agreement to provide additional funding. Lordstown had sold its Ohio factory to Foxconn last year for $230 million and entered into a second deal for Foxconn to invest up to $170 million in Lordstown. However, Foxconn failed to make the second payment, claiming that Lordstown breached the agreement by allowing its stock price to fall below $1 per share.
⛈ Volvo and University of Minnesota Collaborate on Severe Weather Electric Truck Tests. Volvo Trucks North America is partnering with the University of Minnesota to conduct extreme weather testing on its VNR Electric model. The tests aim to assess ambient temperature's impact on electric trucks' battery life. The project, part of the Battery Efficiency for Sustainable Trucks (BEST) Project sponsored by the U.S. Department of Energy, will involve real-world fleet routes in Minnesota's cold winter temperatures and in Texas' intense summer heat.