BNSF Railway Company has reported investments from customers served by the freight rail provider in 2020 totaled approximately $1.1 billion.
Large investments from customers including Coldpoint Logistics, Delta Peanut and Ingredion contributed to the sum.
As a result of customer investments, BNSF projects the creation of more than 1,700 new jobs in local communities.
This marks the 10th consecutive year that BNSF customers and local economic development organizations have invested more than $1 billion in a calendar year for new or expanded facilities.
“At BNSF, our rail development program offers unique supply chain solutions that fit our customers’ varied logistical needs.” said Colby Tanner, assistant vice president, economic development. “The flexibility of our program provides our customers with the necessary tools to maximize their investments, while saving them time and money in reaching their distinct markets.”
In 2020, new developments supported a wide variety of commodities including consumer, agricultural and industrial products in communities across the BNSF network. Highlights of supply chain solutions BNSF helped its customers achieve in 2020 include:
• Coldpoint Logistics – With a $25 million investment, the cold storage solutions provider opened phase four of their facility located at BNSF’s Logistics Park Kansas City, adding 150,000 square feet of additional space and creating 75 jobs for local communities.
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• Delta Peanut – At their facility in Jonesboro, Arkansas, Delta Peanut invested $70 million to add two tracks to their facility for shipping outbound peanuts, creating 130 jobs.
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• Ingredion – Invested more than $100 million in South Sioux City, NE and created approximately 50 new roles in the community.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
Berkshire Hathaway-backed BYD, the world’s leading electric bus manufacturer, is gearing up for the switching-on of the world’s first high-power discharge Bus2Grid project at Go-Ahead London’s Northumberland Park bus depot.
Using “Vehicle-2-Grid,” or V2G, technology the project will demonstrate the ability to use energy stored aboard a BYD ADL battery-electric bus to be fed back into London’s power network. Vehicles are recharged overnight when energy demand is low, and tariffs cheaper, with electricity fed back to the grid when demand is high, thus helping to balance the network and increase efficiency.
BYD UK, through its partnership with Alexander Dennis Ltd. (ADL), is supplying 28 BYD ADL Enviro 400EV double deck eBuses which, using smart technology, will provide bi-directional charging capable of feeding energy back to the power grid.
The project represents a notable contribution from the bus sector towards the UK government’s commitment to deliver “net zero” greenhouse gas emissions by 2050.
With its world-class battery, motor and core technology expertise, BYD has been instrumental in the project from the outset by delivering a total battery-electric bus management solution. Alongside its partners, BYD is the first company in the commercial vehicle sector to provide high-power discharge technology as a V2G capability for electric buses.
The Bus2Grid consortium is led by energy provider SSE Enterprise in partnership with BYD Europe, UK Power Networks and Leeds University. Funding for the project comes from the UK government through its delivery partner, Innovate UK. Further support comes from technology provider, Origami and Transport for London. This consortium has seen excellent cooperation between the automotive industry, the energy community and academia in bringing forth pioneering V2G technology into public transport.
Go-Ahead London’s 28 V2G battery-electric buses from BYD ADL will be part of a total fleet of 120 electric vehicles at what is set to become UK’s largest electric bus garage with overnight charging capability at Northumberland Park. While current COVID-19 lockdown restrictions prevent the setting of a specific “switch on” date, the Bus2Grid project is nonetheless gearing-up for operations to commence in the summer 2021.
BYD, in partnership with Alexander Dennis Ltd. (ADL), is also a leading player in the UK electric bus market. ADL is a subsidiary of leading independent global bus manufacturer, the NFI Group Inc. The 28 BYD ADL double decks for the Bus2Grid project are part of a larger fleet order from Go-Ahead London delivered in 2020 comprising 49 Enviro 400EV double decks. There are now in excess of 500 BYD ADL pure-electric buses either delivered or on order with operators across the UK, to date clocking-up over 16 million emission-free miles since 2015.
“We share a vision with our project partners to deliver a cleaner, sustainable future,” said BYD UK Managing Director, Frank Thorpe, “we have a common goal to realize the full potential of eMobility. Soon, we will be actually generating energy for London’s power grid, as well as delivering safe, clean, emissions-free public transport to the nation’s capital. We’re very proud to be part of the project team and to be supporting Go-Ahead London as it begins the V2G project. “This Bus2Grid project also has huge potential elsewhere in the UK,” he said, “it is a movable energy storage system with the capacity to deliver significant quantities of electricity to help balance a city’s power grid and optimize its energy management system.”
Kevin Welstead, EV Sector Director for SSE Enterprise, said: “If we’re going to make real progress in decarbonising transport and hitting climate change targets, we need to optimise the existing flexibility within the energy system.”
“Developing a charging infrastructure that operates in two directions so that batteries can give back as well as take from the grid is an important part of this. Delivering the Bus2Grid project is the next natural step in using smart technology to make bidirectional charging the reality for today’s bus users.”
BYD and Berkshire Hathaway
In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value over thirty-five-fold.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
Companies need to provide quality goods or services, and they also good management that can chart a course to long term profitability. How can an investor evaluate the quality of the management? According to Warren Buffett, it all comes down to two things.
“Well, I think you judge management by two yardsticks,” Warren Buffett explained at the 1994 Berkshire Hathaway Annual Meeting. “One is how well they run the business, and I think you can learn a lot about that by reading about both what they’ve accomplished and what their competitors have accomplished, and seeing how they have allocated capital over time. You have to have some understanding of the hand they were dealt when they themselves got a chance to play the hand. But, if you understand something about the business they’re in, and you can’t understand it in every business, but you can find industries or companies where you can understand it, then you simply want to look at how well they have been doing in playing the hand, essentially, that’s been dealt with them. And then the second thing you want to figure out is how well that they treat their owners.”
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
Berkshire Hathaway’s running shoe company, Brooks Running, ended 2020 with global revenue of nearly $850 million, an increase of 27 percent year over year.
“In 2020, the Brooks team stayed very close to the runner for cues on how to navigate the uncertainty caused by global retail and supply chain disruptions,” said Jim Weber, CEO at Brooks Running. “We quickly found new demand signals to track shifts in running participation and shopping behavior and acted decisively to engage runners and gain market share in every channel of distribution.”
While markets were interrupted with inventory disruptions from the impact of COVID-19, Brooks’ market share grew around the globe. At retail, Brooks was the No. 4 adult performance running footwear brand in the U.S. in 2020 with 8.5% dollar share, up 1.8 points year over year.
In the same period, the Brooks Ghost became the No. 1 franchise for adult performance running in the total and run specialty markets combined.
Brooks’ investment in its consumer research Run-Sight Lab and singular focus on runners was a major advantage and contributed to 2020 success. With these insights, the brand quickly adjusted its communication approach and reinforced its omni-channel distribution support to engage with runners and make sure they could find Brooks whenever and wherever they chose to research and shop.
Brooks’ Sales & Operations team created a process that included a new demand model to replace retailer signals with cues coming from digital sell-through and running participation. By the middle of the year, this customer-focused process gave the brand the confidence that demand for Brooks was exceeding previous year sales, prompting a green light to reignite production to meet demand.
Brooks gained more than 3 points of performance running dollar-share among runners in 2020 compared to 2019 and for the first time ever became the No. 2 brand among runners based on dollar-share position*. Within the final two months of 2020, Brooks was the No. 1 adult performance running footwear brand in the athletic specialty/sporting goods (ASSG) channel, generating powerful momentum leading into 2021.
In 2020, during brick-and-mortar retail closures, Brooks sales online shifted north of 75%, stabilizing at 46% by year end. With the runner in control of their shopping journey, Brooks’ multi-channel presence mattered as they moved from physical stores to online shopping.
Brooks believes its ability to deliver on its “Run Happy” promise to customers starts within its own walls; when COVID-19 hit, the health and safety of Brooks employees was the company’s top priority. Over the course of the year, Brooks invested in developing its leaders and managers to lead execution and model the brand’s core values at scale via virtual engagements and platforms.
Over the past 12 months, Brooks’ active employee count surpassed 1,000 as the company added nearly 100 employees and retained talent with zero layoffs throughout the year.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
In a move that continues the promotion of lab-grown diamonds as equivalent to mined diamonds, Berkshire Hathaway-owned Helzberg Diamonds has announced it has partnered with British designer Jenny Packham for an exclusive, colorless lab-grown diamond bridal collection – the first colorless lab-grown collection in the jewelry industry.
Known as a favorite designer of the British Royal Family and other top celebrities, Packham created her collection using rare platinum settings with colorless lab-grown diamonds.
“We are thrilled to partner with Jenny Packham to bring her unique style to Helzberg using the rare and colorless lab-grown diamonds that are at the heart of the collection’s bridal jewelry designs,” said Julie Yoakum, senior vice president and chief merchandise officer for Helzberg Diamonds, a Berkshire Hathaway company. “The Jenny Packham Collection marries her distinctive and elevated style with Helzberg Diamonds’ industry-leading quality and craftsmanship. The collection is breathtaking with bridal settings that you simply won’t find anywhere else.”
Packham’s fashion lines are known for their glamour, trend-setting styles and sparkle, making her collection a perfect fit for Helzberg Diamonds. “It is well known that I am attracted to sparkle – my dresses are designed to create excitement as they catch the light and dazzle,” said designer Jenny Packham. “So, when Helzberg asked me to design a collection of beautiful and colorless lab-grown diamond engagement rings and wedding bands, of course I said, ‘Yes!’ My new jewelry designs, created from these incredible and colorless lab-grown diamonds, are inspired by my love of the legendary stars of the Silver Screen, the ethereal icons of the 1930s, their timeless glamour, and yet the rings look so effortlessly modern.”
“Most couples are on a wedding budget. We’ve seen a large increase in customers asking for lab-grown diamonds as you can often get a larger stone for less money,” Yoakum continued. “For those who are uncertain of lab-grown diamonds, consider this analogy: there are roses that grow in the ground and roses that grow in a greenhouse. Both are beautiful and have similar qualities, they are just grown in different ways. The same is true for lab-grown diamonds. Some diamonds are grown in the ground while others are grown in a lab. We hold our lab-grown diamonds to the same high-quality standards as our natural diamonds.”
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.