Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Demand for a more efficient supply chain is shining a light on today's warehouse operations, a trend that's sparking interest in alternative power solutions for industrial trucks. Of those alternatives to the traditional lead-acid battery, one in particular—the lithium-ion battery—has captured the market's attention.
Experts say productivity is at the heart of the issue, as fleet managers look for ways to work smarter and maximize equipment uptime. But industry adoption of lithium-ion batteries is still far from widespread, as higher acquisition costs and other factors make the technology suitable mainly for operations running large forklift fleets and/or making heavy use of their equipment.
Still, interest is growing, and battery makers say alternative power solutions will soon see wider adoption. That's why they're stepping up to the plate with solutions designed to "take away the pain points" customers are experiencing, explains Harold Vanasse, senior director of marketing, motive power Americas, for Reading, Pa.-based battery power solutions provider and battery manufacturer EnerSys, which showcased its new line of NexSys iON lithium-ion batteries and accessories at this spring's ProMat trade show in Chicago. He emphasizes the ever-present drive to become more productive, reduce downtime, maximize facility space, and minimize maintenance requirements.
"There's one thing driving this trend: the benefits the technology brings, especially its zero maintenance," Vanasse says of the rise of lithium-ion batteries, which unlike their lead-acid counterparts, don't require the labor-intensive process of watering. With lead-acid batteries, water inside the battery is consumed during operation and must be replenished. Staff must monitor batteries and water them on a regular schedule, a process that takes time, dedicated warehouse space, and equipment. Eliminating those requirements contributes to a more efficient and productive warehouse operation, lithium proponents say.
"That's the drive" behind today's battery innovations, Vanasse says.
ADVANCEMENTS IN TECHNOLOGY AND THE "WOW" FACTOR
You didn't have to walk too many aisles at the ProMat show to witness the growth in lithium solutions for material handling equipment. The biennial trade show highlights the newest innovations in manufacturing, distribution, and supply chain technology, and this year, dozens of manufacturers featured lithium batteries as well as equipment powered by lithium solutions. The sense of "newness" surrounding the products is bringing a "wow" factor to an industry that has seen little innovation in the last 100 years or so, industry experts say.
"[Lithium] signifies the advance of new technology in an industry that has been very traditional and has not seen much innovation," says Max Khabur, head of marketing for Irvine, Calif.-based lithium-battery maker OneCharge. "When there is something new to talk about ... it brings a lot of excitement and a new competitive angle to a very traditional industry."
Founded in 2015, OneCharge makes lithium-ion batteries for material handling equipment and offers more than 450 models for Class I, II, and III forklifts. Khabur compares the growing popularity of lithium power for material handling applications with the rise of electric cars and trucks: As lithium-battery technology has advanced and become broadly accepted in the consumer market, there's been increasing interest in applying it in the industrial sector, he says. The interest is fueling market growth: The overall lithium-ion battery market is expected to reach $93 billion by 2025, a 17-percent compound annual growth rate, according to a 2019 study by market research firm Grand View Research. Automobiles and other consumer electronics are expected to drive the bulk of that growth, but industrial and material handling applications will contribute as well, industry experts say.
"Just a couple of decades ago, [lithium] was still unheard of in this market," explains Khabur. "Now, the technology is evolving ... And, as with every new technology, there are more and more competitors."
"The newer technologies are certainly out there, with lithium being the buzzword [today]," adds Brian Faust, general manager for Reading, Pa.-based battery, charger, and accessories manufacturer Douglas Battery, which offers traditional lead-acid batteries and is also developing a sealed lead-acid product, expected to be available next year. Sealed lead-acid batteries offer similar benefits to lithium-ion solutions, including zero maintenance because they also don't need to be watered. "Probably over the next two or three years we'll see where [alternative power] settles down in our industry."
BENEFITS ABOUND, BUT QUESTIONS LINGER
Khabur and others agree that, today, lithium-ion batteries are best suited to operations where lift trucks are used for two or three shifts a day. Typical OneCharge customers have multiple pieces of equipment and are looking to get the most out of the vehicles during every shift, Khabur says.
"Our clients want to use the machinery with maximum efficiency," he says, pointing to the convenience and productivity-enhancing features of the technology as key selling points. Among other benefits, lithium-ion batteries charge faster and run longer than traditional solutions, eliminating the need to change a forklift battery at each shift, experts say. Their lifespan is also more than twice as long as their lead-acid counterparts'. And as Vanasse pointed out, they don't require watering, which eliminates the need for dedicated battery maintenance space and reduces labor requirements. The technology also helps reduce energy use because lithium-ion units use less electricity for charging, Khabur explains. On the downside, lithium-ion batteries still cost about three times as much as traditional lead-acid units, although the purchase price has come down in recent years. Khabur says that barrier will shrink as the technology evolves.
"Each year, we are [developing] new and more effective batteries," he says, adding that OneCharge sold 1,200 batteries in 2018 and hopes to double that in 2019.
Although the benefits and the newness of the technology will continue to garner attention for the products, questions linger over how quickly they'll move into widespread use. Experts point out that although both lithium-ion and sealed lead-acid batteries are maintenance-free in comparison to lead-acid batteries, they don't eliminate **ital{all} the maintenance associated with battery-powered material handling equipment. Lithium-ion batteries still require periodic inspection of cables, terminals, and the like, and forklifts themselves still require routine maintenance.
Battery end-of-life is also a sticking point. Virtually all lead-acid batteries are recycled by the manufacturer, a service included in the cost of the battery, according to Faust and others. In the United States, 99 percent of all lead-acid batteries are recycled, the highest percentage of any U.S. product, says John Connell, vice president of battery manufacturer Crown Battery's SLI Product Group. He adds that lead-acid battery makers largely rely on recycled lead to produce new batteries.
That's not the case with lithium-ion batteries, which are more complex and costly to recycle. Currently, lithium batteries are collected and recycled at a rate of less than 5 percent, according to the U.S. Department of Energy (DOE), which launched a program to boost the recycling rate earlier this year. In February, the DOE announced the opening of a battery-recycling center at Argonne National Laboratory in Chicago aimed at reclaiming and recycling critical materials from lithium batteries, with the goal of recovering 90 percent of key materials. In the meantime, the material handling industry is also researching the best end-of-life solutions, which include reuse and repurposing lithium-ion batteries for other energy needs, according to Khabur, who adds that OneCharge has a few batteries in the field that are nearing the end of their five-year warranty and may last well beyond it.
"If taken good care of and charged often, [these batteries] will last longer," he says. "And they can be repurposed. There may be many other uses. There is still much research and development [under way]."
IT'S ALL ABOUT PRODUCTIVITY
Regardless of how it all plays out, most experts agree that in the eyes of the end user, the technology inside the forklift doesn't really matter, as long as the product delivers the power to do the job efficiently and effectively.
"End users couldn't care less about what kind of battery is in their truck," Khabur says. "It's not a crucial detail for their business. What matters when they are looking for a solution [is that] it delivers the promised benefits and does not require everyday maintenance."
Faust adds that when it comes to batteries, end users are most concerned about uptime—and cost.
"[Customers] want their batteries to run longer and require less maintenance because that increases productivity. But not everybody wants to pay for it," he explains, circling back to the higher initial costs of lithium-ion units and the resulting need to choose the solution that makes the most sense for a given application.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.