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| Editor's Comment - April 1st 2008 |
No April fooling, it's going to get rough - CBI
Welcome to the 1 April edition of Warehouse & Logistics News. There's no April Fool's Day jollity in the CBI's latest forecast - issued just before the early Easter break and as chilly as the snow on Easter morning, this august body predicts a prolonged financial market freeze and rising inflation, giving us a rough ride to 2010.
 The CBI's wise men have marked their 2008 outlook for UK GDP down by 0.2% to 1.8%, and expect even slower growth of 1.7% in 2009. This is given continuing credit clampdowns, costlier commodities and diminished domestic and global demand. The CBI's caution clashes with Chancellor Darling's more cheerful Budget, predicting 2.25-2.75% growth, but it's not for this column to ponder the politics.
Warehousing and logistics people already live with the drear realities of customers cutting spending, steel shortages and soaring fuel prices. But they're not giving up, nor should they: in such times, seizing whatever opportunities fortune presents remains the way to win. To help you arm yourself, in this issue we present features on Racking & Shelving and Data Capture. Our Racking & Shelving feature embraces pallet racking, cantilever racking, shelving and storage solutions: Data Capture takes in RFID, bar codes, readers, scanners, tags and labels.
Also in this issue we interview Certex UK and AGF (UK), whose Maxi Storage Systems business is a byword for storage and materials handling excellence. Both companies are set for further success, even in the present economic doldrums.
The one-time distribution arm of rope maker Bridon, Certex UK is enjoying strong growth demand for its tailored lifting solutions, following legal pressure on industry to attain higher lifting safety standards through use of properly certified equipment. Certex UK's recent acquisition by Axel Johnson International reunites the British team with their former Scandinavian and East European colleagues and provides a springboard for future expansion, as UK Operations Director Kevin Smith says in our article.
In our other interview, AGF UK's Keith Watson talks about how racking and shelving experts AGF are broadening out beyond their garment industry heartland with their innovative Maxi Long Span shelving. Maxi Long Span is designed to meet the storage needs of manufacturing and distribution operations for more flexibility in this part of their operations with no loss of functional performance. In our difficult days, Maxi Long Span is sure to be much sought after.
Have a successful month!
Charles Smith
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| Editor's Comment - March 15th 2008 |
Spring into Easter with Warehouse News
Welcome to the 15 March Warehouse & Logistics News, to celebrate the Easter weekend. This Easter is three weeks earlier than 2007, but if you've been working hard the big break is always welcome, whenever it comes.
 It's been a bleak few months since Christmas for British business. Across the land retailers and suppliers alike have been earnestly hoping the Easter weekend will see a return to consumers spending freely in our stores: the warehousing and logistics professionals have been doing everything they can to get the goods to the point of sale, ready for the shoppers.
If you're involved in the supply chain, we hope you get some time this Easter to relax and catch up with the latest news, courtesy of the UK's only fortnightly title for the industry.
One of the top stories in this issue is that PD Ports has just received formal planning approval for its Teesport Northern Gateway Container Terminal from Secretary of State for Transport Ruth Kelly. The new NGCT means imported goods for Northern consumers and retailers will soon travel shorter distances from port to consumer, good news both for business and the environment.
In this issue we've two features on those ever important topics, packaging and training. In Packaging we wrap up the essentials in transit packaging, case pallets, shrink film and more: in Training learn about the options for sharpening skills levels in your business, ready for tomorrow's operating environment.
In our interviews we talk to two companies which both excel at anticipating changing markets. Barry Tucker is celebrating 50 years in the packaging business, the last two decades as Aetna UK's founder and Executive Chairman. The UK arm of packing machine suppliers Aetna Group, AETNA UK's continued success in a challenging business environment is testimony to Barry's experience, leadership, and vision.
In our second interview we hear from another industry expert, Rob McWhirter, MD, Business Development at CEVA Contract Logistics Ltd. The last year has seen CEVA Logistics established as a powerful force on the world stage. The CEVA Logistics brand is new, but the businesses behind it, the former TNT Logistics and the global freight-forwarding specialist EGL, both have long histories of successful service. CEVA Logistics is now the UK's third largest, and the world's fourth largest supply chain management company. The vision driving CEVA's business forward is inspiring, like that behind Aetna.
Have a great Easter break, and happy reading.
Charles Smith
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| Editor's Comment - March 1st 2008 |
No Northern Rock rescues here
Welcome to the 1 March Warehouse & Logistics News. As economic conditions get tougher, the odds look minimal of the Government shoring up failing warehousing and logistics businesses: don't expect any Northern Rock-style rescues for bust 3PLs. Instead, as an industry we urgently need to find the vision to find better ways of doing business.
 One way to improve matters is to invest in enhancing your operations. In this issue we bring you our Buildings and Facilities feature, looking at main structures and key equipment.
Another long-term business development option that's proved highly effective in this industry is for non-competing transport and logistics companies to club together to market their services. In this issue we interview a man who knows all about this course of action - Bob Terris, Chairman of LinQ Alliance Ltd, and MD of LinQ Alliance member Meachers Group Holdings.
LinQ Alliance came into being five years ago to protect the Transport Association's members' businesses in tough trading conditions and improve their business mix.
LinQ Alliance's members are long established, well-known regional businesses, providing national service with regional focus. Individual turnovers vary from £5m to £50m, on fleets of 40 to 100 plus vehicles. You might think companies this size wouldn't feel they needed to club together, but they did, and now they and their customers too are reaping the rewards.
The UK transport and logistics industry faces major pressures in 2008, with recent legislation about drivers' hours, road congestion and driver shortages. Adding to the misery, the cost of supply is rising, driven by fuel costs and a number of transport operators going to the wall, but smart business models like LinQ Alliance will continue to prosper, and good luck to them.
On the bright side, the sunny weather we've had recently is a welcome reminder that spring's on the way, time for some outdoor relaxation. As reported elsewhere in this issue, UKWA Golf Society is holding its inaugural spring golf Tournament in 2008, sponsored by Warehouse & Logistics News. The event takes place on Thursday 3rd April at Castle Royle Golf & Country Club, near Reading - book your place today!
W&LN will be providing refreshments on the course, and donating the Warehouse & Logistics News Scratch Trophy, awarded to the individual with the day's lowest scratch round. As sporting readers will know, we already sponsor the FLTA and BITA golf days; now we're proud to support UKWA's Golf Day as well.
Have a successful month.
Charles Smith
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| Editor's Comment - February 15th 2008 |
Ken's Bloody Valentine - Go green or cough up
Welcome to the 15 February Warehouse & Logistics News. The big story as we close this issue is London Mayor Ken Livingstone's Bloody Valentine to the transport industry, the new Transport for London Low Emission Zone. From 4 February the scheme initially requires vehicles over 12 tonnes to meet the Euro 3 emission standards for particulate matter in order to operate freely inside the M25, or face hefty penalties. Vehicles that don't meet the required lower emission levels face a £200 per day charge or a £1,000 fine.
 The London 'LEZ' is enforced using fixed and mobile cameras that read number plates in the zone, like the congestion charge. The cameras check plates against a database of registered vehicles that meet the emissions standards, have paid the daily charge or are exempt.
Operators of vehicles between 3.5- 12 tonnes have until 8 July to achieve compliance. Options include applying for Low Emission Certificates, fitting particulate filters or buying compliant vehicles. Operators who don't take vehicles into London should still check the Eligible Engines List to get a Low Emission Certificate, as this may entitle them to a reduction in Vehicle Excise Duty.
The good news is that, according to the FTA, four in five UK commercial vehicles automatically comply to Euro 3, because they were made after 1 October 2001, when enhanced EU engine standards to achieve Euro 3 came in. But this leaves as many as 10,000 of the 50,000 vehicles working inside the M25 every day facing penalties.
The FTA has lobbied against the LEZ since it was first mooted four years ago. It argues that London's biggest traffic pollution comes from cars, which are unaffected by the scheme. So the Zone won't make that much difference to London's air.
Next, the LEZ is expensive. Londoners and lorry operators together face paying around a quarter of a billion pounds - £100 million of operator costs and £130 million of London taxpayers' money - for trivial improvements in air quality. The FTA maintains this cash would be better spent on grants and other incentives to introduce greener vehicles and equipment. And unlike the congestion charge, the payback isn't there. The LEZ targets a decreasing revenue stream, with the majority of UK commercial vehicles already complying with Euro 3 and numbers rising daily as ageing vehicles are replaced.
Everyone wants a greener capital. But the reality for our industry is that many operators will be driven out of business by the cost of complying. Particularly exposed are smaller removals firms, using specialist, modified vehicles, often still running after 15 years. In the hardening economic climate these firms were already vulnerable - this will be a deathblow.
Doing our best to be positive, we've got two features in this issue to uplift and energize your business - literally. Our Fork Trucks feature includes warehouse trucks, out door trucks and specialist machines, and our Batteries Report covers batteries, battery charging and changing systems. Both features are presented in our fantastic new-look format. Happy reading!
Charles Smith
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| Editor's Comment - February 1st 2008 |
They Call It Stormy Monday...
Business managers everywhere would be forgiven recently for nervously checking the news sites for the latest on the financial markets. Monday 21 January saw Europe's worst share price falls since 9/11; London's FTSE 100 index led the bounce back, but globally markets are predicted to stay volatile.
 Seasoned warehousing and logistics professionals are used to tough times. Among them Bob Terris, LinQ Alliance Chairman, and MD of LinQ Alliance member Meachers Group Holdings (see interview next issue), believes we're already in recession. He points out that UK manufacturing's been decimated in the last decade, impacting on raw material and finished goods movements. Near Meachers in Southampton, factories stand empty and thousands of jobs have gone: interest rates, falling house prices and pressure on consumer income will further reduce demand.
Bob predicts this will be a grim year for the industry with transport costs rising, driven by fuel prices and numbers of transport operators going to the wall, but efficient business models like LinQ Alliance will continue to prosper.
Before the Exchanges took their tumble, general misery in the UK was already expected to peak on Monday 21 January. Cardiff University's Cliff Arnalls has devised a formula pinpointing that date as The Worst Day of The Year. Mr Arnalls' formula is a lighthearted bit of fun, but interestingly it does mention such relevant factors as "general motivational levels and the need to take action."
In this issue we have interviews with leading companies Zetes, goplasticpallets.com and Palletline, all highly motivated and taking action in their respective markets. Like LinQ Alliance they are all hopeful about trading prospects this year and beyond. Established in 2005, goplasticpallets.com pallets is one of the UK's fastest growing suppliers of plastic pallets from around the world, backed by the highest level of customer care, and 2008 looks like a record year, according to Jim Hardisty, co-founder of parent company All Pallets.
The Palletline pallet distribution network leads development of pallet distribution best practice. Its commitment to continuous improvement means 2008 is set to be another outstanding year, says Palletline MD Kevin Buchanan.
In October 2006 Zetes acquired PEAK Europe, uniting the two largest pure players in the European Goods-ID system integration business. Mr Jan Vermeesch, Zetes' VP Marketing for EMEA, is confident Zetes will go on growing ahead of the market, in both geographical markets and solution areas, the biggest growth areas remaining retail, logistics and distribution.
So - happy reading, and continued successful trading!
Charles Smith
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| Editor's Comment - January 15th 2008 |
A gloomy start, but we'll succeed...
Happy New Year and welcome to the first Warehouse & Logistics News of 2008, with a bright new look for a new year. As we closed this issue on 2 January the news headlines were decidedly gloomy: it's hard to guess how much the 'W&L' industry will suffer, but we've overcome challenges before and we'll overcome them again.
 The first challenge, China's 20% food price inflation could mean more expensive goods here; Britain's trade with Pakistan could face disruption in the aftermath of Benazir Bhutto's assassination, as could our business with Kenya in the unrest following the disputed election.
At home, as the month started Britain's airports were threatened with three 48-hour strikes in January. Economists were warning of an economic slowdown over the next six months aas the credit problems bite post-Northern Rock, but the same pundits expect any credit-related job losses to be confined to the financial sector.
Also as we closed, the LT Cortesia, a German container vessel, had run aground in the Dover Strait en route from Thamesport to the Suez Canal. Thankfully there was no pollution, but it's a reminder of our crowded Southern shipping lanes and endorses PD Ports' development of the Northern Gateway Terminal at Teesport. At least there's hope for warehouse and logistics providers serving the NHS, as the continuing reforms promise more outsourcing of logistics operations.
In this issue we have interviews with A-Safe, the safety barrier and safety product supplier; Motorola, which recently acquired Symbol Technologies' hands free scanning business; and Quartix, one of Britain's most respected players in the Telematics sector and one of our fastest growing technology businesses.
A-Safe recently became the approved supplier of safety barriers to all DHL group sites and facilities in the UK and Ireland. We talk to Neil Clifford, Business Development Manager, A-safe UK Ltd.
When Motorola bought Symbol Technologies last January, the move further strengthened Symbol's position as a market leader in hands free scanning and innovation, which has done much to transform retail and distribution operations worldwide. We hear from David Picton, Motorola's Industry Director for the EMEA Logistics sector, who works closely with end users and partners in the warehouse and logistics sector.
Quartix now has over 1,500 UK customers, using the technology to track over 14,000 vehicles in total, and the company's success has been recognised by numerous prestigious business and product awards, as Andy Kirk, Sales & Marketing Director of Quartix, says in our article.
Happy reading, and have a successful year.
Charles Smith
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