Import Control System 2 Extends to Rail and Road

The European Union’s Import Control System 2 (ICS2) aims to enhance the safety and security of goods entering the EU by introducing a standardised, pre-arrival customs process for all transportation modes, including road and rail, in addition to the existing air, maritime and inland waterway requirements. By mandating the submission of accurate and complete Entry Summary Declaration (ENS) data prior to arrival, the ICS2 enables customs authorities to better assess the risks associated with incoming goods, thereby improving the EU’s ability to prevent and combat customs offenses, and ultimately ensuring a safer and more secure trade environment.

From 1 April 2025, road and rail carriers will need to provide data on goods sent to or through the EU prior to their arrival, through a complete ENS. This obligation also concerns postal and express carriers who transport goods using these modes of transport as well as other parties, such as logistics providers. In certain circumstances, final consignees established in the EU will also have to submit ENS data in the ICS2.

Economic operators who are not ready by this date need to contact the National Service Desk of the EU Member State (National Customs Authority) where they have registered and obtained their EORI number to request a deployment window by 1 March 2025, at the latest. Deployment windows are granted only upon request.

To comply with the ICS2 requirements, affected businesses will be required to make sure they collect accurate and complete data from their clients, update their IT systems and operational processes, and provide adequate training to their staff. Economic operators will also need to successfully complete a self-conformance test before connecting to the ICS2, to verify their ability to access and exchange messages with customs authorities. Goods might be stopped at EU borders and might not be cleared by customs authorities if traders do not meet the ICS2 requirements on time.

ICS2 in detail

The ICS2 has been developed through close collaboration between the European Commission, Member States’ customs authorities and businesses. Starting from 1 September 2025, the ICS1 will phase out. The ICS2 will fully replace the ICS1 with an entirely new business process in accordance with the Union Customs Code. The European Commission organises monthly webinars (in English) where economic operators can ask questions about the operational and technical aspects of the ICS2. The next webinar is scheduled for 5 February 2025.

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Increase in BigBox Take Up in 2024

New analysis by Avison Young of the industrial and logistics sector highlights a notable rebound in the take-up of grade A big-box distribution units over 100,000 sq ft in 2024, with a total of 21.2 million sq ft leased throughout the year, an 11% increase from 2023. Despite remaining 33% below the five-year average – a comparison skewed by exceptional demand during the global pandemic – improving occupier sentiment and a surge in deal-making helped push volumes above last year’s levels.

The Midlands, particularly within the ‘Golden Triangle,’ continues to dominate the market, accounting for 42% of all leasing activity in 2024. Prime locations in this area remain a key draw for both occupiers and investors, underlining its status as a hotspot for logistics and distribution activity.

At the close of 2024, grade-A supply stood at 51.6 million sq ft across 220 units, representing a 9% increase from the previous year. Of this, 41% are newly completed speculative units, while 39% are second-hand units and 20% are still under construction. However, a significant shortfall remains in the supply of larger units, particularly mega sheds of 400,000 sq ft and above, with only 10% of the current pipeline meeting this demand.

Investment in single-let big-box distribution units saw a dip in 2024, with total spending amounting to £1.04 billion, down 12% from 2023 and 62% below the five-year average. This downturn reflects broader macroeconomic challenges, though the sector’s strong fundamentals continue to attract interest, as evidenced by a substantial increase in investment activity during Q4. £423 million was invested in single-let distribution units in Q4, up by 116% compared to the previous quarter. This resurgence suggests a more favorable outlook for 2025, with further activity anticipated in the coming year.

Avison Young reports that with inflation easing and interest rates expected to decrease gradually, market conditions are expected to stabilise, fostering more activity in the capital markets. The sector’s strong potential for delivering robust returns compared to other asset classes continues to make it an attractive investment option. The analysis predicts a rental growth rate of 4.3% over the next five years for the logistics sector, outpacing office (3.4%) and retail (1.8%) sectors, driven by sustained demand in prime locations.

David Willmer, Principal and Managing Director, Industrial and Logistics at Avison Young, said: “Looking ahead to 2025, the outlook is more positive, driven by a decline in inflation and anticipated interest rate cuts, although at a more gradual pace than originally expected. This should stimulate greater activity in the capital markets, while the sector’s potential for delivering strong returns compared to its peers remains clear. Despite high stock levels and an imbalance in shed sizes, prime headline rental growth continues to be resilient, particularly in prime locations, underlining the strength of the industrial and logistics market.”

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Manhattan Associates Reports Full Year Results

Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. reported revenue of $255.8 million for the fourth quarter ended December 31, 2024. GAAP diluted earnings per share for Q4 2024 was $0.77 compared to $0.78 in Q4 2023. Non-GAAP adjusted diluted earnings per share forQ4 2024 was $1.17 compared to $1.03 in Q4 2023.

“Manhattan ended the year strong, posting record bookings that exceeded our expectations,” said Manhattan Associates president and CEO Eddie Capel. “In 2024, we surpassed the one billion in total revenue milestone and extended our position as the leading innovator in supply chain and omnichannel retail end-markets.

We enter 2025 excited about our growing market opportunity and are executing well on our business strategy. While we remain appropriately cautious on the turbulent macro environment, our business momentum is solid, and our team is devoted to our customers’ success,” Capel concluded.

FOURTH QUARTER 2024 FINANCIAL SUMMARY:

• Consolidated total revenue was $255.8 million for Q4 2024, compared to $238.3 million for Q4 2023.
o Cloud subscription revenue was $90.3 million for Q4 2024, compared to $71.4 million for Q4 2023.
o License revenue was $5.5 million for Q4 2024, compared to $5.2 million for Q4 2023.
o Services revenue was $119.5 million for Q4 2024, compared to $119.1 million for Q4 2023.
• GAAP diluted earnings per share was $0.77 for Q4 2024, compared to $0.78 for Q4 2023.
• Adjusted diluted earnings per share, a non-GAAP measure, was $1.17 for Q4 2024, compared to $1.03 for Q4 2023.
• GAAP operating income was $60.7 million for Q4 2024, compared to $58.9 million for Q4 2023.
• Adjusted operating income, a non-GAAP measure, was $90.3 million for Q4 2024, compared to $76.8 million for Q4 2023.
• • Cash flow from operations was $104.7 million for Q4 2024, compared to $88.4 million for Q4 2023. Days Sales Outstanding was 74 days at December 31, 2024, compared to 69 days at September 30, 2024.
• Cash totalled $266.2 million at December 31, 2024, compared to $215.0 million at September 30, 2024.
• During the three months ended December 31, 2024, the Company repurchased 155,444 shares of Manhattan Associates common stock under the share repurchase programme authorised by our Board of Directors for a total investment of $43.5 million. In January 2025, our Board of Directors raised the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.

FULL YEAR 2024 FINANCIAL SUMMARY:

• Consolidated total revenue for the twelve months ended December 31, 2024, was $1,042.4 million, compared to $928.7 million for the twelve months ended December 31, 2023.
o Cloud subscription revenue was $337.2 million for the twelve months ended December 31, 2024, compared to $254.6 million for the twelve months ended December 31, 2023.
o License revenue was $15.1 million for the twelve months ended December 31, 2024, compared to $18.2 million for the twelve months ended December 31, 2023.
o Services revenue was $525.5 million for the twelve months ended December 31, 2024, compared to $487.9 million for the twelve months ended December 31, 2023.
• GAAP diluted earnings per share for the twelve months ended December 31, 2024, was $3.51, compared to $2.82 for the twelve months ended December 31, 2023.
• Adjusted diluted earnings per share, a non-GAAP measure, was $4.72 for the twelve months ended December 31, 2024, compared to $3.74 for the twelve months ended December 31, 2023.
• GAAP operating income was $261.6 million for the twelve months ended December 31, 2024, compared to $209.9 million for the twelve months ended December 31, 2023.
• Adjusted operating income, a non-GAAP measure, was $361.8 million for the twelve months ended December 31, 2024, compared to $281.5 million for the twelve months ended December 31, 2023.
• Cash flow from operations was $295.0 million for the twelve months ended December 31, 2024, compared to $246.2 million for the twelve months ended December 31, 2023.
• During the twelve months ended December 31, 2024, the Company repurchased 986,555 shares of Manhattan Associates common stock under the share repurchase programme authorised by our Board of Directors, for a total investment of $241.6 million. In January 2025, our Board of Directors raised the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.

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Successful Year for Witron Group

The WITRON Group can reflect on another successful business year for 2024. Sales increased by 100 million EUR to 1.4 billion EUR. The company also hired 500 additional staff members, which means that 7,500 people are currently employed by the family enterprise. Another positive development is that 89 young people have decided to start their apprenticeship at WITRON.

Successfully ramped up projects as well as new orders for the design, implementation, and service of highly dynamic food, near-food, and non-food distribution centers for retail customers in Europe, North America, and Australia complement the business year and also allow for a positive outlook.

“Even if investment decisions are sometimes delayed due to the current geopolitical conditions, we should look positively to the future based on our successful company history”, emphasizes WITRON founder and owner Walter Winkler. “The decisive factor will be to optimally cope with the existing conditions. Consequently, this means focusing on the things that we can actively influence: Namely, to design and implement logistics facilities for our customers that are cost-efficient and to underpin our global reputation for delivering premium quality. Then, we will be rewarded with orders even in challenging times.”

New orders from well-known food retailers

The order book shows that this credo is proving true. Although, the number of orders received is slightly below the record figure achieved in the 2023 business year, it is still very satisfying. Contracts signed with well-known food retailers in WITRON’s core markets of Europe, North America, and Australia, have strengthened the reputation of the OPM / COM system as the world’s most successful fully automated storage and picking system for retail units in the food retail sector. The trust placed in WITRON by the food retail industry was based on numerous projects in the dry goods sector (43 percent) and in the perishable / frozen goods area (57 percent) for customers in Germany, Benelux, Scandinavia, North America, and Australia, which were implemented on time and within budget. These include the almost 103,000 square meter omni-channel facility for Swedish food retailer Axfood, which reached full functionality shortly before the 2024 Christmas season and will supply more than 1,500 stores and thousands of click + collect / HomeDelivery customers daily from a wide range of 22,000+ different products. These products are stored in a temperature range of plus 18 degrees Celsius to minus 26 degrees Celsius. On a peak day, the OPM, CPS, AIO, DPS, and OPS modules pick almost 1.6 million units. In addition, a fully automated shipping buffer optimizes the entire dispatch process – all controlled by an intelligent WITRON warehouse management system.

The dry goods logistics center of food retailer Coles in Redbank (Brisbane) implemented by WITRON has even won the prestigious ASCLA Award (Supply Chain and Logistics Association of Australia) in the “Automation, Robotics or Emerging Technology” category. The decisive factor for the 16 judges was the high level of efficiency in the entire supply chain, cost-effectiveness, product availability, occupational safety, and sustainability of what is currently probably the most efficient distribution center of the southern hemisphere.

Based on the success of the Redbank facility, WITRON has successfully ramped up another highly automated distribution centre for Coles in Kemps Creek (Sydney). The state-of-the-art site matches the scope and functionality of the facility in Redbank and also impressively underlines the strength of a joint trusting cooperation. And the partnership will be further intensified in the future. At the end of October 2024, Coles awarded WITRON with the design and implementation of another automated logistics center near Melbourne – with the aim of further optimizing the supply chains based on innovative WITRON logistics technology.

Service continues to grow

WITRON Group’s service business was also further expanded. This is reflected in the integration of eight new OnSite service teams in our customers’ logistics centres. A total of 67 OnSite teams with 4,400 staff members in 12 countries is currently ensuring a permanently high availability of all material flow, IT, and mechanical components.

In the future, their work will be further optimized by an innovation called ‘one device’, allowing service technicians central access to all WITRON service tools via a SmartPhone. As a result, active and proactive maintenance work can be organized even more efficiently. This innovation fits perfectly into “WITRON’s interface offensive”, where workstation dialogs are individually adapted to the requirements of the respective workers in order to ensure maximum usability / UX.

In-house platform production

The company’s product range was expanded in 2024 with the in-house platform production in modular construction. In the future, these platforms will be manufactured in-house in the production facilities of WITRON Stahlfertiger GmbH + Co. KG located in Waidhaus, Germany. Based on end-to-end processes and state-of-the-art operating equipment, all work steps – from design to statics calculation – can be carried out largely without third-party suppliers. The first ‘WITRON platforms’ have already been installed for various US customers.

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