Epoxy
October 21, 2021
Driver Issues
ILMA ’21: US trucking issues here to stay
Author: Amanda Hay
2021/10/12
PHOENIX (ICIS)–Trucking issues topped a long list of supply-chain concerns at the Independent Lubricant Manufacturers Association (ILMA) annual meeting and there are few signs of relief.
“This is a challenge like we’ve never seen before,” Bob Costello, chief economist and senior vice president at the American Trucking Associations (ATA), told delegates at Tuesday’s Managing Shipping and Transportation Challenges session.
Costello pointed to year-on-year strength in three main drivers of truck freight: Retail sales (up 20.6%), single-family housing starts (up 23.2%) and manufacturing output (up 7.6%).
“These are not only increasing, they’re increasing nicely,” Costello said, adding that inventories at the retail level are near historic lows.
Manufacturing output is slowing a bit and Costello’s forecast is just under 7% for the year.
How are loads down?
“Supply, supply, supply,” Costello said, meaning availability of both trucks and truck drivers.
Total for-hire contract revenue per mile is up 17.5% in August/September.
“We’ve never seen this,” he said, adding that spot market rates are up by 25.5% for those two months.
Yet fleet counts are declining, with a 5.5% decline in 2021 compared with 2020, which itself was down 2.4% from 2019, according to ATA data.
Trucking lines are reducing truck counts because of the inability to add drivers, selling parked trucks and independent contractors going to the spot market.
“If you were to go back in time and show me this slide (5.5% reduction in 2021), I’d say we’re in a recession,” Costello said. “Obviously, we’re not. We can’t get enough drivers.”
Costello said one ATA member typically buys 100 new trucks every year, but this year they will get none.
Part of the issue is chip shortages, but Costello said that a large original equipment manufacturer (OEM) said that the chip shortage is masking several other supply-chain issues.
“I’ve got fleets telling me they can sell a three-year-old tractor for almost as much as they bought it for new,” Costello said.
Additionally, companies are taking parts from other trucks to keep fleets moving, he said.
Costello said the driver shortage is not new, but is getting worse and driven by demographics and lifestyle.
The average age of long-haul truck drivers is well over 50 and predominantly male, despite females accounting for 47% of the US workforce. New trainees average 35 years old, so the age issue is not improving.
Lifestyle is growing as an inhibitor to attracting drivers, who would rather spend more time at home and be freer in their downtime – meaning they would rather not be drug and alcohol tested – Costello said.
With drivers leaving the industry, the average weekly earnings are increasing at five times the historical average, Costello said, but it goes only so far.
“The best we have done is stop the hemorrhaging,” he said.
Long-haul drivers were down by 21,200 in 2020 and another 200 in 2021, while local truck drivers rose by 5,000 in 2020 and 11,700 in 2021, according to the ATA.
E-commerce delivery workers have grown from 555,000 in 2017 to nearly a million in 2021. These jobs allow workers to be at home every night and they do not randomly drug test like long-haul companies, Costello said.
Jim Mancini, vice president of North American surface transportation for CH Robinson, echoed Costello in saying supply is the main driver.
The trucking market is seeing high fleet utilisation and when that happens, any disruption has an exponential impact on shippers.
Weather and other disruptions, particularly on the Gulf Coast, take months to improve compared with a couple of days previously when the market was not as tight.
Moving to other modes, like rail, does not help as the interdependency creates further disruption, he said, adding that labour shortages result in load/unload times ballooning to two to three hours.
Neither speaker sees improvement in the near term.
“The only way this gets better is the economy slows down, but I don’t see that happening,” Costello said.
Mancini stressed the importance of being flexible, spreading out shipments through the week and optimising your equipment’s use in a day.
“Do everything you can to eliminate waste in load/unload times,” he said.
Asked about driverless technology, Costello said it is moving along and he expects to see an autopilot option for highway trucking in three to five years.
“If any of you are waiting for autonomous trucks, you’ll be out of business. You are not going to take the driver out of the seat for a very, very long time.”
The ILMA annual meeting runs through Tuesday in Phoenix, Arizona.
Focus article by Amanda Hay
October 21, 2021
Sherwin-Williams Acquires Sika’s European Industrial Coatings Business
Sika to Divest European Industrial Coatings Business
- Media Releases
- 2021
- Sika to Divest European Industrial Coatings Business
19/08/2021
Sika has agreed to sell its European industrial coatings business, based in Germany, to The Sherwin-Williams Company, the US-based global leader in paints and coatings. In 2020, the business segment generated sales of approximately CHF 75 million. The transaction is expected to close in the beginning of 2022.
Sika has taken the strategic decision to divest its European industrial coatings business. The business offers a wide portfolio of innovative products and solutions primarily sold to specialized customer groups such as steel construction companies or anticorrosion experts. These customer segments provide little synergy potential on a Group-wide level and the business has remained a specialized niche within the Sika Group. The transaction includes the European industrial coatings business with the main location and manufacturing facility in Vaihingen, Germany. The product range encompasses anticorrosive and fire protection coatings which are mainly sold in Germany, Switzerland, Poland, and Austria.
With Sherwin-Williams, Sika is convinced to have found the right long-term owner for the European industrial coatings business. Industrial coatings is a core competence for Sherwin- Williams and the acquired business an important strategic opportunity to drive growth and support the expansion of its market position in Europe.
“It is of great importance for Sika to have found a good strategic owner for the European industrial coatings business that will continue to invest in the further development of its people and products. Customers can continue to rely on the availability of high-quality products and technical support in the future. Sherwin-Williams is a strong, growing company with the strategic focus on coatings and paints. Within this organization, the industrial coatings business along with its employees will be in an ideal position to develop and grow to their full potential.”
Ivo Schädler, Regional Manager EMEA
October 21, 2021
Sherwin-Williams Acquires Sika’s European Industrial Coatings Business
Sika to Divest European Industrial Coatings Business
- Media Releases
- 2021
- Sika to Divest European Industrial Coatings Business
19/08/2021
Sika has agreed to sell its European industrial coatings business, based in Germany, to The Sherwin-Williams Company, the US-based global leader in paints and coatings. In 2020, the business segment generated sales of approximately CHF 75 million. The transaction is expected to close in the beginning of 2022.
Sika has taken the strategic decision to divest its European industrial coatings business. The business offers a wide portfolio of innovative products and solutions primarily sold to specialized customer groups such as steel construction companies or anticorrosion experts. These customer segments provide little synergy potential on a Group-wide level and the business has remained a specialized niche within the Sika Group. The transaction includes the European industrial coatings business with the main location and manufacturing facility in Vaihingen, Germany. The product range encompasses anticorrosive and fire protection coatings which are mainly sold in Germany, Switzerland, Poland, and Austria.
With Sherwin-Williams, Sika is convinced to have found the right long-term owner for the European industrial coatings business. Industrial coatings is a core competence for Sherwin- Williams and the acquired business an important strategic opportunity to drive growth and support the expansion of its market position in Europe.
“It is of great importance for Sika to have found a good strategic owner for the European industrial coatings business that will continue to invest in the further development of its people and products. Customers can continue to rely on the availability of high-quality products and technical support in the future. Sherwin-Williams is a strong, growing company with the strategic focus on coatings and paints. Within this organization, the industrial coatings business along with its employees will be in an ideal position to develop and grow to their full potential.”
Ivo Schädler, Regional Manager EMEA
October 21, 2021
Milliken Acquires Encapsys
Milliken & Company Acquires Encapsys, LLC
October 18, 2021 03:38 PM Eastern Daylight Time
SPARTANBURG, S.C.–(BUSINESS WIRE)–Milliken & Company (“Milliken”), a global diversified manufacturer with more than a century and a half of materials science expertise, has formally acquired Encapsys, LLC (“Encapsys”), a world leader in microencapsulation, from the Cypress Performance Group LLC (“Cypress”). The transaction officially closed October 18, 2021.
“Our culture and values are a perfect fit, and we look forward to leveraging Milliken’s global capabilities to accelerate innovation and growth.”Tweet this
“Moving the needle on sustainability requires big thinking and powerful collaborations. We’re thrilled to welcome Encapsys to Milliken,” said Halsey Cook, president and CEO for Milliken & Company. “Encapsys’s expertise coupled with our ability to scale will propel our efforts to deliver sustainable innovations for our customers.”
“Encapsys brings a unique combination of innovation, science and technology to the Milliken team,” adds Cindy Boiter, executive vice president and president of Milliken’s Chemical Business. “Enhancing our portfolio of specialty chemicals with global reach, this acquisition will accelerate sustainable solutions for the markets and customers we serve.”
As Encapsys integrates into Milliken, daily operations will continue without interruption, including relationships with existing suppliers and customers.
Headquartered in Appleton, Wisconsin, Encapsys is a leader in microencapsulation technologies, which put a uniform polymeric shell around a core material at the micron level to create capsules. Microencapsulation has applications across industries and helps companies achieve more sustainable products by advancing responsible consumption and efficient delivery of active materials.
“Encapsys associates are excited to become a member of the Milliken team and welcome a world-class organization to Northeast Wisconsin,” stated Mary Goggans, president of Encapsys. “Our culture and values are a perfect fit, and we look forward to leveraging Milliken’s global capabilities to accelerate innovation and growth.”
Milliken was represented by legal advisor Jones Day and financial advisor J.P. Morgan Securities LLC. BofA Securities, Inc. and Credit Suisse Securities (USA) LLC acted as financial advisors, and Morgan, Lewis & Bockius LLP acted as legal advisor to Encapsys.
About Milliken
Milliken & Company is a global manufacturing leader whose focus on materials science delivers tomorrow’s breakthroughs today. From industry-leading molecules to sustainable innovations, Milliken creates products that enhance people’s lives and deliver solutions for its customers and communities. Drawing on thousands of patents and a portfolio with applications across the textile, flooring, specialty chemical and healthcare businesses, the company harnesses a shared sense of integrity and excellence to positively impact the world for generations. Discover more about Milliken’s curious minds and inspired solutions at milliken.com and on Facebook, Instagram, LinkedIn and Twitter.
About Encapsys
Headquartered in Appleton, WI, Encapsys is a worldwide recognized innovator in microencapsulation. Encapsys is the patented inventor of microencapsulation and has been providing innovative solutions to partners in home care, personal care, agriculture, textiles, bedding and carbonless paper for over 65 years. To learn more about Encapsys, please visit www.encapsys.com.
About The Cypress Performance Group LLC
Encapsys has been owned since 2015 by The Cypress Performance Group. Cypress is a holding company founded by George Sherman focused on value-added manufacturing or industrial service businesses. Cypress helps companies implement their strategic plan by using its business system to focus on growth and operational efficiency while developing industry leading practices to improve customer experience and delivering shareholder value.
https://www.businesswire.com/news/home/20211018005946/en/Milliken-Company-Acquires-Encapsys-LLC
October 21, 2021
Milliken Acquires Encapsys
Milliken & Company Acquires Encapsys, LLC
October 18, 2021 03:38 PM Eastern Daylight Time
SPARTANBURG, S.C.–(BUSINESS WIRE)–Milliken & Company (“Milliken”), a global diversified manufacturer with more than a century and a half of materials science expertise, has formally acquired Encapsys, LLC (“Encapsys”), a world leader in microencapsulation, from the Cypress Performance Group LLC (“Cypress”). The transaction officially closed October 18, 2021.
“Our culture and values are a perfect fit, and we look forward to leveraging Milliken’s global capabilities to accelerate innovation and growth.”Tweet this
“Moving the needle on sustainability requires big thinking and powerful collaborations. We’re thrilled to welcome Encapsys to Milliken,” said Halsey Cook, president and CEO for Milliken & Company. “Encapsys’s expertise coupled with our ability to scale will propel our efforts to deliver sustainable innovations for our customers.”
“Encapsys brings a unique combination of innovation, science and technology to the Milliken team,” adds Cindy Boiter, executive vice president and president of Milliken’s Chemical Business. “Enhancing our portfolio of specialty chemicals with global reach, this acquisition will accelerate sustainable solutions for the markets and customers we serve.”
As Encapsys integrates into Milliken, daily operations will continue without interruption, including relationships with existing suppliers and customers.
Headquartered in Appleton, Wisconsin, Encapsys is a leader in microencapsulation technologies, which put a uniform polymeric shell around a core material at the micron level to create capsules. Microencapsulation has applications across industries and helps companies achieve more sustainable products by advancing responsible consumption and efficient delivery of active materials.
“Encapsys associates are excited to become a member of the Milliken team and welcome a world-class organization to Northeast Wisconsin,” stated Mary Goggans, president of Encapsys. “Our culture and values are a perfect fit, and we look forward to leveraging Milliken’s global capabilities to accelerate innovation and growth.”
Milliken was represented by legal advisor Jones Day and financial advisor J.P. Morgan Securities LLC. BofA Securities, Inc. and Credit Suisse Securities (USA) LLC acted as financial advisors, and Morgan, Lewis & Bockius LLP acted as legal advisor to Encapsys.
About Milliken
Milliken & Company is a global manufacturing leader whose focus on materials science delivers tomorrow’s breakthroughs today. From industry-leading molecules to sustainable innovations, Milliken creates products that enhance people’s lives and deliver solutions for its customers and communities. Drawing on thousands of patents and a portfolio with applications across the textile, flooring, specialty chemical and healthcare businesses, the company harnesses a shared sense of integrity and excellence to positively impact the world for generations. Discover more about Milliken’s curious minds and inspired solutions at milliken.com and on Facebook, Instagram, LinkedIn and Twitter.
About Encapsys
Headquartered in Appleton, WI, Encapsys is a worldwide recognized innovator in microencapsulation. Encapsys is the patented inventor of microencapsulation and has been providing innovative solutions to partners in home care, personal care, agriculture, textiles, bedding and carbonless paper for over 65 years. To learn more about Encapsys, please visit www.encapsys.com.
About The Cypress Performance Group LLC
Encapsys has been owned since 2015 by The Cypress Performance Group. Cypress is a holding company founded by George Sherman focused on value-added manufacturing or industrial service businesses. Cypress helps companies implement their strategic plan by using its business system to focus on growth and operational efficiency while developing industry leading practices to improve customer experience and delivering shareholder value.
https://www.businesswire.com/news/home/20211018005946/en/Milliken-Company-Acquires-Encapsys-LLC
Everchem Updates Archive 
Sign Up for Email Updates