John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
Worried that you don't have the staff needed to implement a radio-frequency identification (RFID) pilot program? Here's some good news. Contrary to popular perception, it doesn't take a village—or even a small army—to get a company RFID-ready. If the talent is at hand, all it takes is a few good men or women.
Take the case of Wal-Mart's much vaunted RFID implementation, which was officially launched in January. For all the decisions to be made and questions to be answered (where do we put the tags? what technology do we use?), Wal-Mart used only five people, all from its information systems group, to get its pilot up and running. Even now as it rolls out its RFID program to 100 more suppliers and to additional locations, Wal-Mart has only increased the RFID team's headcount to nine.
Linda Dillman, chief information officer at Wal-Mart, urges others to start small. "Our team in the first year had five associates [who] made this happen at Wal-Mart," she says. "Today we have nine. If you have a small group that understands the business, you can make it happen. Recognize it's a journey. It's not a single step."
Of course, it can't be just any five people. They need to be knowledgeable about RFID. And people with RFID expertise are getting tougher to find. In fact, eight out of 10 respondents to a recent survey conducted by the Computing Technology Industry Association (CompTIA) said a lack of people qualified to implement, service and support the technology could hinder the successful widescale adoption of RFID. Another two-thirds cited training and educating employees in RFID technology as one of the biggest challenges they faced.
"We believe the market needs hundreds of systems integration companies with RFID capabilities; and hundreds of thousands of individuals knowledgeable in this technology to meet current and future demand," David Sommer, vice president of electronic commerce at CompTIA, said during a presentation at RFID World in March.
To address the skills shortage, CompTIA is working with major players in the RFID market. Product manufacturers, distributors, systems integrators, education and training providers, and end-user customers are collaborating to develop a vendor-neutral professional certification of RFID skills for individuals working with the technology.
Slow start
Though it's hard to know how much a shortage of experts has hindered its adoption, it appears that RFID has been somewhat slow to take hold. The survey of CompTIA members (mostly computer service companies and computer manufacturers) found that customer adoption of RFID solutions remains relatively modest. More than two-thirds of the respondents—71 percent—reported that their customers had not yet implemented RFID solutions. And even among respondents whose customers had begun using RFID, it appeared that only a fraction—20 percent— of their customers had gotten involved. (Survey respondents said their customers came from government and a variety of industries, including manufacturing, retail, health care, services, communications, and financial services and real estate.)
Not that the respondents themselves were all that experienced with RFID. A full 80 percent of the responding companies said they either had yet to go past the investigation stage of RFID implementation or had done no investigation at all. Just 16 percent have implemented one or more RFID pilot projects for themselves or their customers. When asked if they saw their company offering RFID products and services in the next three years, 37 percent of the organizations said they definitely would, while 39 percent said they would consider it if there were interest from their customers.
The majority of respondents to the CompTIA survey were value-added resellers and solutions providers (33 percent); consultants and systems integrators (21 percent); and manufacturers (19 percent). Two-thirds of the companies have annual revenues of up to $25 million; while 22 percent are companies with annual revenues of $100 million or more.
what's holding them back?
RFID's early adopters get all the headlines, making it easy to forget that plenty of companies have yet to get started. So why haven't they taken the plunge?
Costs are too high
18%
Technology is still emerging
51%
Confusion in the marketplace
6%
Not enough resources in the industry
2%
Not sure
23%
Source: DC VELOCITY, Warehousing Education & Research Council
this show rocked!
Though undoubtedly footsore and weary after a day packed with seminars, speeches and demonstrations, those hardy souls still standing on the show floor at the end of RFID World's first day got their reward. They were treated to a special performance at an after-hours networking reception. Continuing a tradition begun at the first RFID World show in 2003, the "RFID Jam Band," a group of about a dozen industry professionals who share a fondness for rhythm and blues, took the stage to rock their (RFID) world.
Led by Bill Allen, singer/guitarist/keyboardist and harmonica player (as well as a conference speaker and professional whose day job is director of strategic alliances and programs at Texas Instruments), the group's alternating cast of rock wanna-bes performed a hard-hitting set for just over two hours on the show floor.
Although Gregg Temple, president of Meyers Label Group, stole the show with his rousing rendition of "Mustang Sally," Allen's raspy vocals and harmonica riffs electrified the crowd. Other band members included Rick Morgan of SCAN, the Data Capture Report (bass); Stephen Garth, Oracle (keyboards); Karl Ludwig, Hightech Knowledge Inc. (guitar, vocals); Doug Bourque, Texas Instruments (drums); Robert Stone, Texas Instruments (guitar); Dan Schell, Business Solutions magazine (bass, vocals), Chris Zimmardi, Texas Instruments (bass), and DC VELOCITY's own Emma Shin (vocals).
As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.
However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).
Against that backdrop, SMEs said that the biggest opportunity for growth in 2025 lies in expanding into new markets (40%), followed by economic improvements (31%) and implementing new technologies (14%).
As the U.S. prepares for a broad shift in political leadership in Washington after a contentious election, the SMEs in DHL’s survey were likely split evenly on their opinion about the impact of regulatory and policy changes. A plurality of 40% were on the fence (uncertain, still evaluating), followed by 24% who believe regulatory changes could negatively impact growth, 20% who see these changes as having a positive impact, and 16% predicting no impact on growth at all.
That uncertainty also triggered a split when respondents were asked how they planned to adjust their strategy in 2025 in response to changes in the policy or regulatory landscape. The largest portion (38%) of SMEs said they remained uncertain or still evaluating, followed by 30% who will make minor adjustments, 19% will maintain their current approach, and 13% who were willing to significantly adjust their approach.
The overall national industrial real estate vacancy rate edged higher in the fourth quarter, although it still remains well below pre-pandemic levels, according to an analysis by Cushman & Wakefield.
Vacancy rates shrunk during the pandemic to historically low levels as e-commerce sales—and demand for warehouse space—boomed in response to massive numbers of people working and living from home. That frantic pace is now cooling off but real estate demand remains elevated from a long-term perspective.
“We've witnessed an uptick among firms looking to lease larger buildings to support their omnichannel fulfillment strategies and maintain inventory for their e-commerce, wholesale, and retail stock. This trend is not just about space, but about efficiency and customer satisfaction,” Jason Tolliver, President, Logistics & Industrial Services, said in a release. “Meanwhile, we're also seeing a flurry of activity to support forward-deployed stock models, a strategy that keeps products closer to the market they serve and where customers order them, promising quicker deliveries and happier customers.“
The latest figures show that industrial vacancy is likely nearing its peak for this cooling cycle in the coming quarters, Cushman & Wakefield analysts said.
Compared to the third quarter, the vacancy rate climbed 20 basis points to 6.7%, but that level was still 30 basis points below the 10-year, pre-pandemic average. Likewise, overall net absorption in the fourth quarter—a term for the amount of newly developed property leased by clients—measured 36.8 million square feet, up from the 33.3 million square feet recorded in the third quarter, but down 20% on a year-over-year basis.
In step with those statistics, real estate developers slowed their plans to erect more buildings. New construction deliveries continued to decelerate for the second straight quarter. Just 85.3 million square feet of new industrial product was completed in the fourth quarter, down 8% quarter-over-quarter and 48% versus one year ago.
Likewise, only four geographic markets saw more than 20 million square feet of completions year-to-date, compared to 10 markets in 2023. Meanwhile, as construction starts remained tempered overall, the under-development pipeline has continued to thin out, dropping by 36% annually to its lowest level (290.5 million square feet) since the third quarter of 2018.
Despite the dip in demand last quarter, the market for industrial space remains relatively healthy, Cushman & Wakefield said.
“After a year of hesitancy, logistics is entering a new, sustained growth phase,” Tolliver said. “Corporate capital is being deployed to optimize supply chains, diversify networks, and minimize potential risks. What's particularly encouraging is the proactive approach of retailers, wholesalers, and 3PLs, who are not just reacting to the market, but shaping it. 2025 will be a year characterized by this bias for action.”
The three companies say the deal will allow clients to both define ideal set-ups for new warehouses and to continuously enhance existing facilities with Mega, an Nvidia Omniverse blueprint for large-scale industrial digital twins. The strategy includes a digital twin powered by physical AI – AI models that embody principles and qualities of the physical world – to improve the performance of intelligent warehouses that operate with automated forklifts, smart cameras and automation and robotics solutions.
The partners’ approach will take advantage of digital twins to plan warehouses and train robots, they said. “Future warehouses will function like massive autonomous robots, orchestrating fleets of robots within them,” Jensen Huang, founder and CEO of Nvidia, said in a release. “By integrating Omniverse and Mega into their solutions, Kion and Accenture can dramatically accelerate the development of industrial AI and autonomy for the world’s distribution and logistics ecosystem.”
Kion said it will use Nvidia’s technology to provide digital twins of warehouses that allows facility operators to design the most efficient and safe warehouse configuration without interrupting operations for testing. That includes optimizing the number of robots, workers, and automation equipment. The digital twin provides a testing ground for all aspects of warehouse operations, including facility layouts, the behavior of robot fleets, and the optimal number of workers and intelligent vehicles, the company said.
In that approach, the digital twin doesn’t stop at simulating and testing configurations, but it also trains the warehouse robots to handle changing conditions such as demand, inventory fluctuation, and layout changes. Integrated with Kion’s warehouse management software (WMS), the digital twin assigns tasks like moving goods from buffer zones to storage locations to virtual robots. And powered by advanced AI, the virtual robots plan, execute, and refine these tasks in a continuous loop, simulating and ultimately optimizing real-world operations with infinite scenarios, Kion said.
Under terms of the deal, Sick and Endress+Hauser will each hold 50% of a joint venture called "Endress+Hauser SICK GmbH+Co. KG," which will strengthen the development and production of analyzer and gas flow meter technologies. According to Sick, its gas flow meters make it possible to switch to low-emission and non-fossil energy sources, for example, and the process analyzers allow reliable monitoring of emissions.
As part of the partnership, the product solutions manufactured together will now be marketed by Endress+Hauser, allowing customers to use a broader product portfolio distributed from a single source via that company’s global sales centers.
Under terms of the contract between the two companies—which was signed in the summer of 2024— around 800 Sick employees located in 42 countries will transfer to Endress+Hauser, including workers in the global sales and service units of Sick’s “Cleaner Industries” division.
“This partnership is a perfect match,” Peter Selders, CEO of the Endress+Hauser Group, said in a release. “It creates new opportunities for growth and development, particularly in the sustainable transformation of the process industry. By joining forces, we offer added value to our customers. Our combined efforts will make us faster and ultimately more successful than if we acted alone. In this case, one and one equals more than two.”
According to Sick, the move means that its current customers will continue to find familiar Sick contacts available at Endress+Hauser for consulting, sales, and service of process automation solutions. The company says this approach allows it to focus on its core business of factory and logistics automation to meet global demand for automation and digitalization.
Sick says its core business has always been in factory and logistics automation, which accounts for more than 80% of sales, and this area remains unaffected by the new joint venture. In Sick’s view, automation is crucial for industrial companies to secure their productivity despite limited resources. And Sick’s sensor solutions are a critical part of industrial automation, which increases productivity through artificial intelligence and the digital networking of production and supply chains.
He replaces Loren Swakow, the company’s president for the past eight years, who built a reputation for providing innovative and high-performance material handling solutions, Noblelift North America said.
Pedriana had previously served as chief marketing officer at Big Joe Forklifts, where he led the development of products like the Joey series of access vehicles and their cobot pallet truck concept.
According to the company, Noblelift North America sells its material handling equipment in more than 100 countries, including a catalog of products such as electric pallet trucks, sit-down forklifts, rough terrain forklifts, narrow aisle forklifts, walkie-stackers, order pickers, electric pallet trucks, scissor lifts, tuggers/tow tractors, scrubbers, sweepers, automated guided vehicles (AGV’s), lift tables, and manual pallet jacks.
"As part of Noblelift’s focus on delivering exceptional customer experiences, we are excited to have Bill Pedriana join us in this pivotal leadership role," Wendy Mao, CEO at Noblelift Intelligent Equipment Co. Ltd., the China-based parent company of Noblelift North America, said in a release. “His passion for the industry, proven ability to execute innovative strategies, and dedication to customer satisfaction make him the perfect leader to guide Noblelift into our next phase of growth.”