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Supply Chain by the Numbers
   
 

- July 27, 2023

   
 

Supply Chain by the Numbers for July 27, 2023

   
 

Teamsters Get Most of what they Want in UPS Pact; US GDP Growth in Q2 Exceeds Estimates; New Warehouse as a Service Venture to Invest Big in Automation; eCar Makers Partnering to Build Out Stations

   
 
 
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$7.50

That is the hourly wage increase for UPS workers over the five years of a proposed new contract between the Teamsters union and UPS tentatively agreed to this week. But the pact still has to be approved by rank-and-file members, an outcome which remains unclear pending a vote not scheduled to end until August 22. That $7.50 over five years doesn’t seem like that much, but the union reached many other of its objectives, including: a lower tier of wages that allowed UPS to move from 5-day-a-week delivery to 6 day will be eliminated; no more mandatory overtime; UPS will add 7,500 full-time jobs and fill 22,500 other open full-time positions; UPS will buy air conditioned delivery vans starting next year and will add heat mitigation features to the existing fleet of 95,000 vans; and paid holiday for Martin Luther King Jr. Day, which Teamsters have never enjoyed, will be added. Teamsters President Sean O'Brien called the deal a "game changer" for US workers, adding "This contract sets a new standard in the labor movement and raises the bar for all workers.”

 
 
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$7.5 Billion

That is the investment a new joint venture between Japanese financial giant Softbank and Symbotic, a maker of automated order picking firms, will make to acquire Symbotic’s technology. The joint venture is called GreenBox, and will act as a 3PL, offering “warehousing-as-a-service,” enabling companies that lack the scale or capital to invest in such high levels of automation to enjoy some of the benefits. That according to an announcement by the two companies on Monday. That multi-billion purchase, to be rolled out over six years, will add to Symbotic’s apparent current order book of some $12 billion. The Symbotic technology includes autonomous mobile robots, with arms that can pick, place and depalletize. Walmart announced in 2022 that it was planning to deploy the Symbotic system in all 42 of its regional distribution centers (RDCs).

 

 
 
 
 

2.4%

That was the rise in Q2 US real GDP on an annualized pace in the second quarter, according to the first estimate from the Commerce Dept. last week. That topped the 2% consensus estimate. Strong consumer spending powered the solid quarter, aided by increases in non-residential fixed investment, government spending and inventory growth. GDP rose at a 2% pace in the first quarter. Perhaps as important, inflation was held in check through the period. The personal consumption expenditures price index increased 2.6%, down from a 4.1% rise in the first quarter and well below the Dow Jones estimate for a gain of 3.2%.

 

 
 

7

That’s how many major automakers say they’re joining forces to build a North American electric vehicle charging network that would rival Tesla’s and nearly double the number of fast-charging plugs in the US and Canada. General Motors, BMW, Honda, Hyundai, Kia, Mercedes and Stellantis said on Tuesday that they will share in a multibillion-dollar investment to build “high power” charging stations with 30,000 plugs in urban areas and along travel corridors by 2030. This ambitious move is designed to accelerate the adoption of electric vehicles, reducing consumer fears that chargers won’t be available for long-distance travel. The seven car makers say they’re forming a joint venture to build the network.

 
 
 
 
 
 
 
 
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