Challenges

The key elements of the T.E.E.N. project have and will continue to be built upon a drill down of industry needs derived from information supplied by employers and their employees within the L&T cluster. In 2007, T.E.E.N. industry partners participated in a web-based survey in preparation for the Pennsylvania High Performance Standards Industry Partnerships Report. The results of the survey outlined many of the real time challenges facing national and local L&T firms who employ residents of the 17 county region of Northwest PA. Some of those challenges include:

• Reducing equipment damage, accidents and insurance claims, and overall exposure to liability
• Intelligent logistic decisions ensuring cost effective route planning and use of equipment, fuel and manpower
• Intense training and safety practices
• Aging workforce and increased technology trends
• Customer awareness of federal regulations and the associated increased costs resulting from regulations
• Loss of manufacturing facilities in the region
• Meeting the continuously increasing demands of a large number of customers while maintaining customer satisfaction, competitive rates and revenue
• Stiff competition in an increasingly global marketplace with a large number of competitors moving freight at discounted rates
• Increased regulations on homeland security enacted by the U.S. Transportation Security Administration
• Rising Cost of fuel and toll charges
• Weather and terrain across multiple geographical environments
• Defining standardized skill sets and lack of positive public awareness of the industry
• Attracting and retaining a skilled and productive workforce capable of delivering products and services in a professional manner
• The application of new technologies, such as satellite communication systems, electronic inventory tracking and radar object detection devices
• Government regulations on exhaust emissions and clean energy fuels such as biodiesel

The industry is comprised of multiple service provers covering all modes of transport including air, road, rail and sea as well as related services such as warehousing, handling, packaging, labeling, assembling, as well as physical services including planning, organizational and management services. Globablization and outsourcing of logistics services has suffered a dramatic drop in growth since the economic downturn of 2008. The industry is faced with some of the most difficult market conditions in history. Trade routes are shifting and networks have become increasingly comlex as have the operating agreements between companies sharing resources. Regulatrory requirements have changed substantially. As business models change many companies are evolving from forwarding and warehouse managing, to highly industrialized, IT-driven supply chain providers. Companies looking to build a durable business need to continuously offer added value through upgrades in technology and training of employees. The partnership will focus on the changes affecting the industry and offer training support to help local companies compete. Specific training deliverables will be identified and implemented in the form of consortia based training through the remainder of the program year. Initial training components will seek move existing employees advance from value added service positions into occupations of physical services (planning, organization and management operations).