John Paxton has worked in material handling for most of his professional life. His vast management experience in the industry and his well-honed interpersonal skills made him the ideal person to assume the reins of MHI, North America’s largest material handling, logistics, and supply chain association. Paxton had been COO/CEO designate before assuming the role of CEO at the beginning of this year. That tops off his 30+-year career in the industry, which included more than 20 years in executive positions at Demag Cranes and Components.
While with Demag, he served as a volunteer leader at MHI. Those leadership roles included president of the Crane Manufacturers Association (CMAA), president of the Hoist Manufacturers Institute (HMI), and chairman of MHI’s board of governors.
Paxton is a graduate of The Ohio State University with a bachelor’s degree in mechanical engineering and Kent State University with an MBA focused on international business. He spoke recently with DC Velocity Editorial Director David Maloney about the industry and MHI’s role in it.
Q: You have diverse experience in engineering, manufacturing, design, and, of course, management with material handling companies. How did that prepare you for your new position as CEO of MHI?
A: While I was with Demag Cranes, we were members of MHI. Through volunteer work at the association, I was involved in many different areas and leadership roles at MHI as a member and, ultimately, as chairman of MHI’s board of governors. Those experiences gave me a broad overview of all the different aspects of material handling in the supply chain.
Q: How do you view the current state of the material handling industry?
A: The first term I’d use to describe the industry’s state is “accelerated innovation.” Things were moving quickly with the innovation piece in our industry over the last five years, but this past year, the pandemic really accelerated the development of solutions, new ideas, and innovation.
The second word that comes to mind is “essential.” The pandemic—and the pandemic-driven supply chain disruptions—has highlighted the essential role of the supply chain in our daily lives.
Q: As you noted, the pandemic has finally put the supply chain—along with material handling and distribution in general—on the map. What do you think will be the pandemic’s lasting impact on supply chain operations?
A: Supply chains certainly won’t go backwards. They won’t return to where they were. I think the lasting impact is that companies will retool their supply chains with flexibility and resiliency in mind, so they’ll be better prepared for future disruptions.
The other part is the pandemic’s role in driving the growth of e-commerce. People have become accustomed to buying whatever they need online, including items they would never have considered purchasing that way before, like groceries. Or as another example, we recently bought Girl Scout cookies online and they showed up in one day. It has become a natural part of our day-to-day lives, and I see that trend accelerating.
Q: As e-commerce continues to explode, consumers haven’t eased off on their demand for order accuracy and delivery speed. Does that put a strain on our supply chains and, by extension, the companies that supply the equipment needed to support that demand?
A: The increased demand is driving investment in those technologies and, ultimately, it’s driving innovation. Systems manufacturers are very busy because of this investment, and it is also pushing and driving innovation in new products and solutions.
Q: As the association for the industry that supports material handling, hardware, software, and the other technologies that enable warehousing, distribution, and manufacturing, what do you see as MHI’s role moving forward?
A: I see our role as helping connect practitioners who are looking for solutions with the suppliers who can provide those solutions. It’s where people can come to find those products and solutions and also gain education and knowledge. MHI is really a collaborative community, where both the practitioners and the suppliers can prosper.
Q: Speaking of those connections, MHI’s big material handling show, ProMat, is going virtual this year due to the ongoing pandemic. How will that work?
A: With the cancellation of the live show, MHI really had two choices: We could just start preparing for the next live show, which would be Modex in 2022. Or we could use our brand power, attendee contacts, and MHI’s market position to bring the industry together digitally. We use the term “digitally” because it is not our intent to create a virtual show; it is our intent to bring together the people who are looking for solutions and knowledge and the people who can provide those solutions and knowledge within a single digital platform.
Our decision was to go with the second choice and launch ProMat Digital Experience, or ProMatDX.
Q: What will that experience be like for attendees?
A: The first thing is that the platform will have 400 of the top suppliers in the industry. So basically, we have “collected” the industry and put that on a digital platform for attendees. When they go to the site, they will be able to choose from 112 educational seminars on the latest technologies, including seminars in a special robotics and automation track sponsored by **{DC Velocity.}
They will also be able to see four keynote presentations, including sessions on the 2021 MHI Innovation Awards, supply chain resiliency, the 2021 MHI Annual Industry Report, and proven success strategies from women in supply chain. There will be live product demos similar to what you would have at a physical show. Attendees can also schedule live video meetings with the show sponsors via AI matchmaking tools.
So attendees will still be able to network, see, and learn as they did at the live show; they will just do it on a digital platform.
Q: So, this year’s event will include more educational sessions than usual plus all the product demonstrations?
A: That is correct. One advantage of the digital platform is that it removes time restrictions. At a live show, an educational session is only offered at a particular time. Now, attendees will be able to watch those sessions on-demand whenever they want.
The live demos and seminars will still be conducted at specific times, but this content will also be available on-demand afterward on the ProMatDX platform.
Q: Normally, the ProMat show is a three-and-a-half-day event, but that’s going to be extended this year, correct?
A: Yes. We extended it to five days to allow more time for people to engage with the platform and to help them balance their show attendance with their work responsibilities.
Q: Are there other capabilities you’ve been able to add with the switch to the digital platform?
A: Yes. The sponsors are able to build a showcase that allows them to upload product documentation and manuals. There will also be a large amount of video content.
Q: Given some of the advantages you’re finding, do you think you’ll retain some of these digital components after physical shows resume?
A: Yes. Like many things the pandemic has changed, we expect trade shows will look different in the future. We had started down this track in 2019. After the live ProMat show ended, we archived all of the educational sessions so attendees could continue to view them online. Then we followed up with Modex in 2020, where we featured videos of the booths for viewing after the show. We will continue to build out the hybrid component and to extend the timeframe of the show. Going forward, all of our exhibitor shows will have a digital component.
We are also hopeful that our fall meeting in October in Arizona will be an in-person event. That will continue as an educational conference that brings the industry together. This year’s event will also have a larger digital component—we’ll be using more videos, more digital connections, and more technology. Those pieces are here to stay.
Q: What are some of the initiatives MHI will be working on this year?
A: ProMatDX will take us to a new level. Going forward, I see this as a stepping-stone to creating an enhanced exhibition and conference experience.
We will also kick off new projects with the Warehousing Education and Research Council, or WERC, which is an educational association for warehouse professionals that merged with MHI back in August. We will build on WERC’s success and WERC’s educational offerings, including its benchmarking initiative. We will also be providing opportunities to connect WERC’s warehousing-professional members with the suppliers that have historically made up MHI’s membership base.
Right now, we’re also looking to add supply chain trend analyses to the market intelligence reports we offer members. In addition, this year, we will launch a formalized supply chain leadership program to develop the next generation of leaders within the supply chain. So, there are quite a few projects in the works.
Editor’s note: ProMatDX 2021 runs from April 12 to 16. You can register for free here.
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