as a presentation of TFNN. The Tom O'Brien Show is produced every business day. Tom takes your phone calls toll-free at 1-877-927-6648. Internationally at<PHONE_NUMBER>. Let's go to Alan Homosassa. Hey, Al, what's going on? Isn't it wonderful? This gentleman here with the gold report right before the market fell apart ended up with P-A-A-S. We have a 98% gain in the year.  You always told us to do what we feel comfortable with. And if I lose a little bit of money on the table, I will, but I know that I just pocketed $8,000 or $9,000 for two weeks. That's a beautiful thing, man. Now, Tom O'Brien. Well, welcome, folks. This is Tom O'Brien of TFNN. We go five days a week. We go seven hours a day. We go 24 hours a day on the internet.  Hope everyone's having a great day, safe day. It's making a great night, folks. Be impeccable with your word. Manifest your true intentions. Regardless of what language you speak, your intent will be manifested through the word. What you dream, what you feel, and what you really are, will be manifested through what you say each and every day. Market-wise, let's take a look at it out here. We have the Dow Industrial's trading down to 11, Nasdaq off 150, S&P's down 45. Gold, gold contract, flat, $19.96 an ounce. We have silver down 25 cents, $23.61 an ounce. Lightsweak crude, up 83 cents, $72.88 a barrel, notes and bonds, a 10-year note. Up for six, trading 113.19, the 30-year, up six. Ticks at 126.31, and King dollar. King dollar's up 333.6, 103.535. The euro is at 107. The yen is at 138. The British pound is at 124.01 US dollar. Our phone number's<PHONE_NUMBER>, give us a call, folks. Well, I know it's going on in your world, and the world of the S&P's, let's take a look at them. We're gonna go to the future market first. So, take a look at these futures, and they bring these babies up. So, what we have out here is that this low is another high volume low, so we're going down to lows, which is 41.53, right now you're 41.59. But I also wanna show you, like last night, we were talking about the aspect of that high volume low from last night overnight, and sure enough, it went after it. The bottom line is that market closed, hadn't gone after it yet, not only went after it, but of course it took it out. Bottom line, now what you have here, now this always gets cool, is that we'll see how this shakes out. Meaning, I suspect we're gonna go after it. We're so close to it right now, when you're so close to it, it's, yeah, you're only seven points away from it.  And you're at the, yeah, you're at the, three, let's say if we say the bar is putting quarters, we're at the third quarter closer to the bottom. And you get an expansion of volume, so the expansion of volume's coming in. So that's it, we're gonna go after this thing right now. Now, it's gonna be pretty hard to basically blow that away, because you've got 63,000 contracts there, but it's gonna go after it. That's N-U-S-M-P's. We go to the N-Q's, we take a look at the N-Q's, they're gonna be set up similarly, okay?  So the N-Q's, same type of setup, and the N-Q's there, that's 20, that's 29,000 contracts, 29,000, the heck. Yeah, 29,000 contracts are the low. This last bar I just had, 13. But you can see it is an expansion, you know, this is, yeah, this is gonna go after that low, that's the bottom line. Now, notes and bonds, notes and bonds, this is gonna get really intriguing, folks. We get some divergence here. The note and bond market, this rejected lower price out here today.  So, what we have is this. Let me put this here first so I can figure out right where we're at, okay? So we're gonna go into that bar right there. So we're talking here. So watch this. Now, you have 2.5 million contracts in the 10 year, which is a lot of contracts, okay? But this is what you're good doing. You're going into 3.3 million contracts and 4.3 million contracts and you rejected lower price. So what that sets up is that that sets up a rejection of lower price just about at the .618. The .618 would have been 113 and we did 113.04. So that's telling me this note and bond market's gonna bounce again. If we go over to the dollar, now what we have inside the dollar, the dollar's set up to go higher. I mean, there's this set up here. Last couple days, you can see you go sideways four days, straight up, sideways four days. The next move up in the dollar is the 105 to 106 area and then what is a wild card here is this gold contract because what we had in the gold contract, so now this is the, we're dealing with the, let me just look at this for a second. Okay, so I'm dealing with the August contract now. So the contract just rolled again. Man, time is fast. We got down to 17, 1974. You rejected it, 63,000 contracts. That's like contract volume. I know what I'll do. I'm gonna go to the GLD for a second. This is how you can check these things too to see the correlation. Yeah, the GLD is doing the same thing then. That's saying that the markets get nervous about this debt ceiling and you probably might get a little pop here. I'll be careful, but that's the bottom line. I'd still be careful beyond belief because what hasn't happened yet is that the XAU as well as the HUI, let's see where they went today. Okay, they went to the same place. Let's pull this up. When I say the same place, meaning that they're testing the lows of two days ago. Yeah, this test is coming in, it's interesting. So, like on the XAU, I was looking for 125, 14. Now, we've got down to 125, 77. When you get that close, you gotta really start looking at this, okay? Now, we don't get the volume until tomorrow. I mean, tonight at 8.15, GDX, GDX, GDX. Let's see what happens with the equities here for a second. Yeah, it's late volume, man. They're not selling it, but it hasn't tested it either. So, with the GDX, you need that test, man. Because that's a high volume low inside the GDX at 31.58. That's how this thing shakes out. And the bottom line is that you can expect the volatility to continue out here, folks. That's the bottom line. Right now, you get the high volume low that's laying out there. That hasn't got tested yet. Yet, you're still down 41 on the SMP and we'll see how the rest of this shakes out. We look at some of the higher volume equities out here and it's gonna be a toss up whether we have volume out here, meaning expanded volume. You get Tesla down $2.50, we get Pfizer up a buck. You get NVIDIA's down 370. You get Google off 250. Stay right there, folks, come right back. Currencies, commodities, and bond markets are as important as ever right now with how they're driving the volatility in equity markets across the globe, which is why it's a great time to try out Teddy Kegstad's Tiger Forex Report. 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To stay on top of stock patterns you can take advantage of, sign up for the Fibonacci 24-7 newsletter at TFNN.com. When you subscribe, you'll get a weekly report from veteran day trader Larry Pezzavento on stocks you need to pay attention to and you can trust Larry's analysis. After all, he's got 45 years' experience as a day trader. Larry will also provide daily charts, videos, and data on the key markets that he's tracking. Expect notifications from Larry on market movement you need to act on at any time. First-time subscribers also get a 30-day money-back guarantee. If you're not satisfied, let us know and you'll get a full refund within 30 days of signing up. Subscribe to the Fibonacci 24-7 newsletter today. TFNN.com, educating investors. At 1-877-927-6648, internationally, at<PHONE_NUMBER>. Welcome back, folks, to Dow.  Let's get over to our mammoth to Basel Chapman as we do each and every Tuesday at 20 past the hour. And don't forget, Basel has an outstanding show here. Every trading day, 10 to 11 Eastern standard time and an absolutely great newsletter, the opening call. Now, it's very easy to get the opening call, folks. You come over to our website at TFNN. You'll see, you go into newsletters, you see the opening call right there. You get the opening call for one month for $149. You get it for six months for 6.95, which is a savings of $199 at 22%. You get it for one year for 11.95, which is a savings of $593 or 33%. Now, they all come with a 30-day money-back guarantee. So you can get the six months, you can get the year, you get the month. If they work for you, that's awesome. You just continue it. If for some reason it doesn't work for you on the 29th day, folks, you just tell us, hey, listen, it didn't work for us. You get your money back. And on top of that, Basil has approximately 12 archives out there so that you can really see how Basil looks at the market each and every day and how he rides that wave. Basil Chappan, welcome back, man. How you doing? I'm doing well, Tom. How are you? Good. Do you have a good time? I really did. In fact, we went to visit a really good friend of my wife. We went to medical school together way back. And she lives in London and we went to visit them. And then we went down to the south part of England, which we've never been to. It sounded like Boston because we were in Dorchester. Where was it? It was Dorchester, Weymouth and Portland. Wow. Around the Boston area. But it was so terrific. Really beautiful. You drive on the countryside and the different colors of the farms, you know, the greens and the yellows, it just, it was really beautiful. And along the, almost all the side roads, they have a little hedge that grows along the sidewalk on both sides. Okay. So it's like this little mini protection part that you just keep going. And it's really very beautiful and it was lovely there. We're on the Jurassic coast where that's some of the dinosaurs, et cetera. It was very, very interesting and very different to vacations we've taken before. And of course I was looking at the market. I managed to do one of the shows live. Oh no, I know, I know. You're a trooper, man. No doubt. Your wife, it must have been awesome seeing someone you went to school with. Because it's just like that, right? It's just like old times when you see someone you haven't seen for 30 years, which is amazing. Right. And this is, well, this is, they went to medical school together and they used to study together. And so, you know, they've gone different directions. And her friend landed up in London, been there for a very long time. We landed up here. But it was very nice and very good to hear them together, talking and it was a lot of fun. Nice. Well, welcome back, man. Thank you very much. Let's ride this wave. Where we going? This is interesting. You know, there's a pattern I talk about. It's this lowercase h.  Because if you come straight down, I'll show this chart right here. If you come straight down and then you make this arch formation and fail at the first or second peak, peak A or a peak B. And then you come back to the low, but you don't break the left side load. Means you can have a good rally, but you could go from the h pattern to a lowercase m pattern. That's the one that better not break that left side load because that could be quite serious. So here we are, 32,937. And the doubt was that very sharp four day slide from the first of May at 34,257. Then it bounced and it failed and it came back, but it didn't take out that 32,937 low. That was about six, seven sessions ago and then ready to gain. And now we're pulling back and we're going to see where this goes. It's on the 200 period moving average. That's not the point. The point that I wanted to make was that from the load that was made in October and we're very lucky, we went along right at the low. So we're still holding those positions, the long positions, but what my contention has been is that if we are able and this is why I always like very much to be able to time highs and lows because if you get that when the market eventually has a stigestive phase, you out of that, you've already got a good cushion. So, you know, talking about it here, 28,660, my contention has been that on every big bad news event over the period of months to come, that's what I was projecting on. If we were able to get in low enough, every time there's a pullback, if it comes from this higher level up around about the 34,000 level, it means that you've got a good cushion. And here we are once again, you've got this debt crisis coming up or we don't know yet if it's going to be a crisis, but there's a cushion. So that to me is a good side. On the very short term, I'm a little cautious, but now look at this. So, you know, in my work, I always like to look for peak Ds. If I get a buy signal, which is upgraded to a buy mode, it should give you at least four higher peaks. Well, all of a sudden we got to this peak C two sessions ago, and today we're pulling back. This is in the S and P. So I'm not sure, I don't quite understand this because the technicals are still pretty strong. It's quite a bit of a pullback today. I don't know how we can squeak to the 4212 area to be able to make that leg D, but I'm watching it very closely because if you look at the, this is the S and P. So the Dow is ready for a pullback. It's already in this digestive phase. S and P made a new recovery high just the other day. In fact, it's almost a yearly high for the last past 12 months. Now look at the QQQ. I'm always looking for D. Well, it made that D at 338.67. Technicals are still good, but it's a pretty sharp pullback. But the flat stochastic at 93 says it's either going to be a vicious decline using tremendous power and speed down side, or else we're just going to be choppy choppy for the next three, four, five sessions going into the end of the month. So I'm watching this very closely because everything's set up to be cautious. We've become quite cautious. There's a stock I spoke to you about oh, quite a few weeks ago. This is called Symbiotic Inc. End-to-end, artificial intelligence, robotic warehouse automation systems. We're in the 21s. It's here it is at 31. It's done very nicely. We're taking a little more. And it's also, look at this kind of a double top here. It has gone to this. It's almost the same as the spy in leg, maybe C, E. But I'm saying, let's be a little bit cautious. There's another one that we had, which is BOTS. This is very interesting. This is the Global X Robotics and AI ETF. We've had it for some time. It's now at 2629, took a little bit of profit and here it is at a peak F. So everything says to me that we're in an area that makes the market somewhat vulnerable. But if you look at weekly charts, the weekly charts have done very well and are still holding very well. And that includes, let me go back to the QQQ because this is going to be really fascinating. Look, the technicals here in the QQQ weekly chart, this is the MAGD. Look at the distance between the two moving average. That is very powerful. Look at the stochastic flat at 95%, 96%. That's really good. And the nine period moving averages way over the 14 and the prices way over. So I'm looking at this and I'm saying, we're ready for some kind of a digestive moment, but the charts are not saying yet that there could be a smash to the downside. It's saying, be a little bit careful here and be very selective. You're still looking at some stocks, individual stocks that are doing well. So I think this is a period where raising some cash, there's nothing wrong with that. But at the same time, I'm just saying, let the market tell me, we've got a little cautious right now, but the weekly has improved in the three major indexes and the monthly chart is starting. Oh, look at this. Just as we're going to the break, look at the monthly chart. Finally broke out of that resistance in leg C. It isn't very strong, but at least it's broken out. So they're all good signs, but I think we're ready for some digestive phase. And folks, it's very easy to get Basil's Newslight. I come over to our website at TFNN.  Basil, you have a great one, safe one we look forward to show tomorrow. Thank you, John, you too. Thank you. Stay right there, folks, we'll come right back. The Gold Report. As a precious metal, gold is still king. It continues to hold the most effective safe haven in hedging properties across the global major trading hubs of the London OTC market, the US futures market, and the Shanghai Gold Exchange. The Gold Report. Tom O'Brien publishes his weekly Gold Report every Monday morning for subscribers, consisting of coverage of the XAU, HUI, GDX, the Dollar, Bonds, the South African Rand, as well as 25 different mining equities with specific buy-sell recommendations. The Gold Report. New subscribers get a 30-day money back guarantee so you have nothing to risk. Subscribe to Tom O'Brien's Gold Report newsletter now at TFNN.com. Sharpening your skills as an investor is like getting better at playing a musical instrument. You have to practice, sure, but you also need excellent instruction from experts. At TFNN, you'll get advice and guidance from the authority in technical market analysis, and it's not just dry, tedious text either. 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There's no cash or added costs when you join our community of traders. In the Tiger's Den, you can look over the shoulders of Tom O'Brien and the other TFNN hosts while they analyze charts during their live Tiger TV programs and join an interactive trading community with hundreds of members exchanging ideas. Interact with other Tigers and Tigresses as they share trading ideas, news analysis and discuss the market action all trading day, even at night and on the weekends. The Tiger's Den at Discord is accessible on mobile or tablets as well, so it's always at your reach. To sign up today and become a part of this educational community of traders, just visit the front page of TFNN.com. This segment is brought to you by Think or Swim. For more information, just click the Think or Swim banner on the front page of TFNN.com. Welcome back folks, a doubt. Dow Industries down 177 to get the NASDAQ off 142. SAPs are off 40. And the fireworks are gonna begin Wednesday night, folks. Wednesday night, this is, so you get Ron DeSantis is gonna announce his 2024 presidential campaign with Elon Musk, Wednesday evening at 6 p.m. DeSantis will speak with Musk at 6 p.m. On Wednesday and the campaign will release a video formally launched in the campaign. Bottom line is that this is gonna be quite a deal, man. We'll see where it all shakes out because we know Trump is gonna be coming right after him. And right now, we're talking the primary, but it's gonna be pretty hard to beat Trump on a primary. I mean, that's my take on it anyway. And he'll really start on the census. And I, hey, we'll see where it shakes out. I think DeSantis is thin-skinned myself, but we'll see where this shakes out. We're gonna find out, man, real quick, because it takes something else in order to basically get through any campaign, never mind a presidential campaign. And we'll see where Musk is gonna be using Twitter to basically pump him up. So Wednesday, six o'clock, here we come. Inside the NDX 100. Let's go take a look at the strength versus the weakness inside the NDX. Let's, so inside the NDX, what we have is this. You get Moderna is up, that's up 9.3%. C-Gen's up 1.7. Broadcom's up 1.3, and Walgreens Boots up 1.1. Taken away from it. Zoom's down 8%. Aligned technologies are 5.5. IDEX Pharmaceuticals are 5.5, and Intuosurgical was off 3.5. Inside the Dow Industries, the strength versus the weakness inside the Dow Industrial. Point wise out here, okay, so we have Home Depot putting 33 positive points, Chevron 28, IBM 6. Taken away, Visa minus 44, Microsoft minus 33, Salesforce minus 22. Let's go over to Microsoft for a second. I wanna take a look at a couple of these high flyers because they've been holding the market up. Okay, well, this is not actually volume off the highs, but you're getting a little, it depends on when we get coming into the close. So we only get 21 million shares. It would need a lot, it'd need a little 35 million shares, someone to really dump something, coming into the high. Now, NVIDIA, let's go take a look at some stocks of some of the targets out here. NVIDIA's gonna be coming out today at 24th, let me see this thing. Where am I?  No, tomorrow. So NVIDIA's coming out with the numbers tomorrow. Now, NVIDIA's gonna be looking, the lowest 108 for the year, the highest 318, they're gonna be looking to do 6.5 billion to the top line and 91 cents to the bottom line. Look at that bottom line, man. Whatever they're doing right now, folks, this is interesting. Look at those numbers if you're watching Target TV. The bottom line here is extraordinary compared to the top line. So there, whatever this chipset that they're selling now is evidently a lot more profitable than it has been in the past. 108's the low, 318's the high. We'll take a look at this. Okay, so I gotta get this on a weekly. Yeah, this is, okay, so it's an ABC up. Now the question is, how big is it? I think it's already reached it actually. I take this one, I could take that one, you take this one here first, 92, that's 30 bucks. And that gets you to 210, 310, you're already reached 312, that's one of them. Then the 280, that's 58, and we do 58. Okay, you wanna see something wild? 58, one second. 58, that's 50, 42, right, zero, yeah. Yeah, okay, so this is saying that in both cases your ABC structure is finished on the way up. Let me put this on a monthly. When you have two separate ABC structures finishing, that's telling me that, you know what, you're gonna do something other than go up. Yeah, and on the monthly, see this on the monthly? The swing point on the monthly is 1.1 billion, and we've only done 670 million. And the 670 million is going into 1 billion, yeah. So that's telling me that NVIDIA is not gonna hold price. And right now you're at 308. We go to Freeport-Macmaran, FCX. We take a look at Freeport-Macmaran. The lowest $24, the highest $46, they're coming out. Next time they come out with numbers is on the 21st of July. Yeah, this is a little problem child. So this here, you broke the consolidation. What number is that? You're at 3470, 3360. I hit 34 today. I wouldn't be biting on this yet. This is like trading a consolidation. And it came into its downdraft from last March. Couldn't handle it. Volume was lighter. It did take out a high volume swing with lighter volume, but it has another one laying down there at 2480. This could get out at 2480, which would be pretty intense, which would be an indication, okay, that the dollar is gonna keep moving higher. If that's what happens, that's how that's set up. VFC. So this one here, all right, okay, this is a, the low is $18, the high is 51. They come out with numbers that, no, is this today? Yes, today they must lose money because it's a chat's a mess. Okay, so they claimed, this is an active outwear clothing line. They're looking to do 2.7 billion. And that 2.7 billion, by the way, is a contraction of 800 million in 90 days. And they're looking to do 14 cents. This has been a one-way trip downtown, and it's just gonna keep going downtown. Yeah, there's nothing in this thing, man. I mean, this, this stock wants to get out of the eight bucks. Yeah, it started, it started at 100 bucks. It's down to 48. There's a kind of trend bounce up to 89. Yeah, there's, there's nothing here, period. That's that, that, yeah. Retail's hard right now, especially clothing retail. I think we all have too many clothes anyway. I don't know if people are buying clothes anymore. They probably are, but you get the gist of it. Huge difference, no doubt about that.  Stay right there, folks, we'll come right back. If you're looking for potential trading setups in the stock market, then Rocket Equities & Options Report is a newsletter you should try. 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But from 10 to 19 years old, he came out with a warning, okay, once who's they have potential risk of social media to young people and urged policy makers and technology companies to strengthen standards for adolescents. The advisory noted the benefits of social media, including its use as an outlet for creativity and finding community. But the report says there are ample indicators that social media can have a profound risk of harm to the mental health and wellbeing of children and adolescents. Children and teens, particularly vulnerable majors, 10 to 19 as their brains continue to develop, the advisory cited the 2022 Pew Research Center that found 95% of teens use of social media and more of a third use at least one almost constantly. The advisory pointed to several studies examining the range of adverse effects of social media adolescents. These include online harassment, increased exposure to content related to self-harm racism, negative impacts of sleep, body image, physical activity. The thing is, wild men, I mean, you can picture that there's no doubt I always thought the aspects of, you know, the addiction of social media folks is huge, right?   And during those times, that's all you would think about, right?  And, you know, yeah, as you'd be playing those, your thought process, at least my thought process was like, okay, who's on the other side? Who's tough, who's not tough? You know, where's this gonna go? Now, in the social media space, you know, the bottom line is that they're on the phone and you get, it's not good. For society, it's absolutely not good. It's gonna be kind of a lost generation, I think, you know? Now, yeah, I mean, that's my take on it. And we'll see if it's even more than one lost generation. That's the reality because, you know, all's you have to do, which we all can see when you're walking down the street and, you know, everyone's walking like this. Now, that being said, this has happened all over the world because I remember, you know, I was in China with three years ago and it was the exact same thing, man. I mean, you know, this is not different. It's not like, you know, the U.S. is different than ours. Everyone's like this. It's not good. Anyway, we'll see. I don't see how they're gonna put in any timeouts, let's put it that way, into them that they can actually start thinking of doing something else. Because, so picture what happens is that the, when you get into, now let's talk about adults for a second because when you actually get into trading, that's just as addicting.  And that's just as bad. Because the reality is that, you know, you're trying to scratch out a living in front of the screen and then everything else, what are you gonna do with everything else?  So there are all these different addictions that are out here. And in particular, I think for adults, particularly if you get into trading, well, you better, you know, get some kind of a system down. Because if you don't, you're gonna be hooked on these machines in general. And then the key is, of course, you know, if you do good, that's fine, but if you blow your brains out, then it's a whole different ball game, you know what I mean? So there's a lot of different addictions that are out there. But I'd say the social media addiction is the worst by far right now. We're gonna take a look at the volumes out here. What do we have inside the volumes?   So it's not cool. Inside the NYSE we're doing 537 versus 838. So that's gonna come in light unless you get a big blowout at the end. Inside the composite, we are dealing with, now the composite's not gonna come in light. That's 3.7 versus 4.3. So let's go look at this composite for a second. Okay, so let me see what we did three days ago. Yeah. So we're going into, it's gonna do about the same. We're going into 4.5. Right now it's 3.7. We go take a look at the Apple because Apple bottom line has been running the market as Microsoft Nvidia. I mean, it hasn't just been one, you get three or four that have been running the market. I mean, Apple, the expansion of volume is still not there, you know? We, 36 million shares, you're coming into 67 million. What you'd have to get, you have to get a good expansion of volume here. If you're looking at the screen, these are all block trades. These are big trades. There's no doubt about that.  We're going to Google. So all of these equities, just about on the monthlies too, are not working, meaning that they've been going up, but it's been dramatically lighter on the monthlies. Like Google, even, well, Google's not that bad actually. Google's coming into 568 million and you've done 463. So that'll do about the same. That'll do about the same. We'll see whether it can get inside the next range. The next range in Google starts at, right where we are right now, the 124 area. That's how this is set up. We go to the oil contract. Let's go take a look at, well, first, OIH. Let's go to the OIH. We're talking to Frank Gisley about the OIH. The OIH is going to have some heavy resistance at this 270 mark, because the 270 mark is way back. Did I put this on him? Yeah, I put it on a six month, about five months ago. It had come down with some big volume. See this today? Now you're going up and you're contracting a volume in a monster way. You're gonna be careful on this one because the contraction is huge. You're coming into a million shares and right now you've only got 288,000. If we go to the XLE, we take a look at the XLE. So the low for the XLE is 80, no, it's 65. The high is 94. We take a look at this and this is going after the lows, man. Yeah, I get that high volume low once we attest it again, it's 75. So right there, folks, it's coming right back. We have the Dow. The Dow industrial is right now trading down to 188. Now it's taking us up 136. S&P's up 42, come right back. Are you looking for a way to consistently add winning trades to your portfolio? Tom O'Brien is here to help. Tom O'Brien has been successfully trading markets for over 30 years. A frequent contributor to TD Ameritrade Network and CNBC, Tom O'Brien founded TFNN over 20 years ago to help educate investors just like you. Tom's Daily Market Newsletter, Market Insights is published every morning when the market's open to give you the competitive informational edge you need to succeed. These newsletters are packed full of Tom's advanced technical analysis and are geared to deliver comprehensive strategies for a successful portfolio. Get Tom O'Brien's newsletter, Market Insights today and try all of our products and newsletters 30 days risk-free with our money back guarantee at TFNN.com. TFNN, educating investors. 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Go to TFNN.com and hit watch Tiger TV. That's TFNN.com and hit watch Tiger TV. Welcome back, folks. And when I was talking about that announcement with DeSantis and Musk, or Musk, it was a couple of questions. Could Musk run as the vice president? He can't. You have to be natural bond for vice president and presidents. Let's go to Mike in Toronto. Hey, Mike, what's going on? Yeah, hi, hi. Thanks for taking my call. I want to look at the fertilizer stock in particular, nutrient ticker symbol, NTR. OK, so the low is 58. The high is 108. Don't buy it. This thing's going lower. What are you looking at, please? Looking at the monthly, it's a little bit concerning. Yeah, it's been a one-way route down, which is not good also for the market, you know, for the generals. You know what I mean? You broke? Look at this past month, the low was 58.75. Then the high, the previous high at that level was back in October of 2018. Yeah, this can go to 42 bucks, man. This is saying that whatever is happening in the farming businesses, they're not going to be able to price up the nutrients. Yeah, see, the next leg is right over there, Mike, which is the highest, 42. We're at 60 right now. So you broke, and you broke with some volume in. Yeah, that's what I'm concerned about. So I mean, you're thinking the next stop, 42. Yes. And if it breaks 42, then what? Well, it would be the bottom, that's the top of that high volume bar. That's how that works. You can see it's a high volume bar in a monthly, but most times, you know, when you come down this dramatically, most times it's going to get some support because there's been so much selling. I mean, this is a stock that was $117. The bottom of that is $23. But most times, the way it's come down, you can see expanded volume this month. You know, if it makes it down there, you'll see the volume expand and probably contract when it gets closer to that $60 area. That's how it normally sets up. Have a great one, man. Have a safe one. Always remember, folks, to bank and claw your heart out, the bull can run you over, and thank God, there's always another trade. Health happens in prosperity. Have a great night, folks. Have a safe night. Come back and visit Tommy tomorrow morning. Kicks us off 9 AM. Great show, folks. Yeah, look at him, folks.


Good afternoon. I'm Rebecca Marquez, and I'd like to welcome you to today's webinar on PMMI's 2018 e-commerce report. Over the next hour, we're going to listen to the findings of this report by author Donna Ritzin with DDR Communications, where she will discuss what's current, what's new, and what's changing. President of DDR Communications, Donna founded the company 25 years ago. DDR's business is based on a direct response methodology that delivers market research, business development, strategic alliance and marketing intelligence to companies in virtually every business-to-business industry. DDR's experience is backed by over 35 years in marketing communications. A few housekeeping notes. Everyone is muted throughout the webinar. If you have any questions that you would like to ask the presenter, please type them in the chat box that is located at the bottom corner of your screen. At the end of this presentation, which will last approximately 45 to 50 minutes, Donna will be available to answer your questions. At this time, I would like to hand the webinar over to Donna Ritzin. Go ahead, Donna. Thanks, Rebecca, and thank you all for joining our presentation this afternoon, this morning, depending on where you are, on e-commerce, I think, inside the box. So I will go through the presentation here this morning and give you an idea of what's going on in e-commerce and where we got this information. There's lots of quotes throughout this report. I won't point to all of them. These reports have a tendency to take a life of their own once you download this presentation yourself and maybe present it internally. So I've given you enough information on all the slides as you'll see going forward that really support and uphold what's the information that we're looking at today. Certainly the whole demand of the consumer, which we are all the consumers, the whole expectation of immediate delivery is something that's really changing our world. So let's take a look at who did we talk to, where did we get this information? So we interviewed 55 different companies, food, beverage, nutraceuticals, personal care, household products, and pharmaceuticals to find out what they're doing. We talked to brand manufacturers in those markets. We talked to logistics 3PL suppliers. We brought in the opinion of some of the experts in the industry who are working in e-commerce and we talked to some of the e-tailers as well. To give you an idea of the size of the companies, a majority of them were large CPG companies, some medium, some small to get their opinion of everything that's going on. Certainly manufacturing and packaging of the future is going to look different than it does today. So if we look at kind of the tools of change, I had read an article in the October issue of Wired Magazine that talked about our human behavior. We particularly don't like to change. We're resistant to it, but if we're given the proper tools, it makes change more acceptable and easier in our lives, in our business lives as well. So biotechnology and nanotechnology both are changing the whole medical community. We have artificial intelligence. There's lots of information being written about that now entering into manufacturing, both augmented reality, virtual reality is changing our world, smart manufacturing is occurring. Blockchain is something that is yet to be proven, but it's being talked about a lot to have a secure way to transfer information. Cybersecurity is at the top of the list of every manufacturer's need as well as our own personal need to protect our identities. And that brings us to the whole e-commerce omni-channel and where that's leading us and that's what we're going to concentrate on today. So e-commerce certainly is changing our world. Brand manufacturers are saying that it's evolving all around us. It's something that is difficult to keep up with since the demands are changing so quickly. But what they need to really pay attention to is flexible manufacturing, having the ability to meet the changes in packaging and smaller sizes and smaller pack counts. And logistics is certainly posed for rapid growth. We'll get into each of these subjects as we move through the information here today. The product needs to be protected as it moves through the e-com channel. Right-sized containers is another big topic that's being talked about. We're certainly all getting the tremendously large boxes at our doorstep when there's only a small product inside that's something that the industry is certainly going to be looking at and correcting. There's a lot of repercussions from that we'll get into as well. And everything is digital. It's certainly a digital world. In the Automation Report we talked about what's predicted in terms of the data points and data connection that's coming in the future. Right now in 2018 it's predicted to top 11 billion connections. And that's adding about over 300 million new devices are connected to the Internet each month. And that's not including our cell phones or our tablets. It's forecast to reach 50 billion by 2020 which is two years away, less than two years away. So it's significant digital everything that's going on in our world. We've heard about it a lot, the lack of labor, the lack of skilled labor, even unskilled labor. Automation is working to replace some of that. In the on-demand delivery that Amazon particularly has set up and had us expect now that we have delivery of everything on demand. Although this is not a report about Amazon, they certainly will be mentioned. And looking at the last mile of delivery, how is that going to take place? It's a challenge that's going on right now. Drones are being looked at, many different things that are being looked at in terms of really analyzing that last mile of delivery. And we'll get into all these subjects in a bit more detail as we move through this. So navigating e-commerce is something that the CPGs need to look at and building a business case is something that is on the top of their mind as to why are we doing this, how are we going to do this, how are we going to implement this. And the changes are happening so quickly that everyone is running to keep up and get up to speed with this. So think inside the box started to evolve as we were doing our interviews because it's what's inside the box that we as consumers, there's the phenomena of the opening the box experience, looking at how big is that box, making that secondary carton actually become a primary, the primary shipping carton. And again, we'll kind of get into the details of that as we go forward. But we as consumers expect that ability to connect everything that we want, we want to be able to order it online, track it, maybe switch the address, all different kinds of things that we're looking at being able to do with our smart phones and portable devices. So it's become an intensely personalized experience in terms of how we shop online and what does that mean for the manufacturers of our products. It's really causing an omnichannel and to kind of get an idea of the difference of what is a single channel, it was when we could, we would listen to the radio and we would have one aspect of how we're getting our information. Then there's the multi-channel where we can get that information from several different places. Maybe we see it in a magazine and we hear it on the radio and we see it on TV. But now the omnichannel is connecting all of these things together. We can, as I just mentioned, we can order online, we can pay online, we can have it delivered to us the next day, we can have it delivered in several different ways. We can have it, we can go pick it up, we can have it delivered to our door, we can have it even delivered in their trunk if you have the right type of smart car for that. And I even just read recently that some of the deliveries that are taking place and it's a launch experiment by UPS in Seattle and Atlanta is an e-bike.  And the Amazon effect, as I talked about, is really driving this. And you kind of look what came first. Did we ask for overnight shipping? Or did Amazon offer us overnight shipping free of charge? And we all jump on to that, of course. Now the expectation is we want free shipping and we want to get it overnight. So Amazon has definitely created this entire consumer effect that's changing our world. They're looking at frustration free packaging to be able to make things easier to open. There's an entire frustration free packaging guidelines that Amazon has for the companies that they ship products for. But reducing waste everywhere wherever possible is definitely the bottom line. So e-commerce is not only changing the rules of the game, it's really starting a whole new game. And manufacturers need to think about how am I going to fulfill e-commerce? Am I going to do it myself? Am I going to use a third party? Am I going to use Amazon? About a third of the manufacturers now are selling direct. You can go on to their websites. They have a cart. You can order from them directly. And then how they get that to you is what they're really trying to figure out is, you know, where do I go? Do I use the distribution system I have now? Do I need to use a third party? Over two of five brand manufacturers are using 3PL warehouses. And about a fourth of them are fulfilling e-commerce on their own in-house. In over half of the interviews that we had with the manufacturing companies are already selling through Amazon. So the kinds of things that they need to think about, it's really a mind shift in terms of where is e-commerce going and what does it offer and what does it mean to my business. Manufacturing has to have a much greater level of flexibility, smaller runs, individual packaging, bundling of one, and then being able to justify those expenses on the manufacturing line to accommodate e-commerce. And then product delivery certainly is different than putting a product on the retail shelf, as opposed to delivering it directly to the consumer. So there's really a complex supply chain that needs to be considered. And it starts with operations, needs to be efficient. Where does automation play into this whole e-commerce subject in terms of automation is already going on at manufacturing. So investigating and looking into robotics, voice picking at some of the 3PLs, more RF scanning, how do they keep track of this and look at this differently is more of a unit of one than a pallet load going to a retail store. Location is important, having products closest to the consumer. Software, what kind of software is going to be needed to improve traceability, have all the data collection that they need, it's all got to be compatible, resources just in terms of people resources, and a whole new business model is developing that's going to be able to bring all of this information together and make it seamless and efficient for manufacturing. So we really looked at this, there is, it's a hyper growth that's going on really defining the future of the e-commerce market. So we looked at several different sources to kind of get an idea what is how large is this in the US? It's certainly over 4 billion. It's less than 5 billion projected in 2018. But it's forecast by 2020, which again is a very short time frame to be over 684 billion for e-commerce market. And if we look at some of the indicators, is this going to be achievable, attainable, is it really moving that fast? There's some statistics here on the far right, right next to the picture. It shows that 9.5% of total sales is e-commerce sales. And if we look at the triangles kind of down at the bottom of the page there, we looked at some comparisons. So we looked at the fourth quarter of 2017. And how did that compare to the first quarter of 2018? So just over one quarter period, it increased 3.9%. And if we look at a little bit broader picture, we looked at the first quarter of 2017 and compared it to the first quarter of 2018, it grew over 16%. So it's showing that there's significant growth in this market. And steady growth in terms of the number of establishments. In 2012, the number of establishments for e-commerce was ranked 35 when you looked at all the different outlets in terms of how our goods are transported and available to us. It ranks eighth in 2016. So it jumped very significantly in just a few years. But there is signs of somewhat of a slowdown in terms of the number of e-commerce establishments that are growing. So if we look at the between 2007 and 2016, that whole entire period had a KGAR of over 26% growth. But if we look particularly at just 2012 to 2016, more recent years, that KGAR has slowed down to 7.5%. Now I say slowdown, it's certainly not a slow-moving market. It's just that it's not moving in terms of the number of establishments growing for e-commerce as it did in the hold.com boom that was earlier in the decade. And we know that this is affecting everyone. We looked at this from the standpoint, is there a particular group in the generations that is jumping on to e-commerce more than others? And really, from baby boomers to the whole generation Z, we're all ordering more of our products online with increasing expectations of it arriving quickly. Almost all consumers, 95%, believe that packaging significantly affects their purchasing experience. Nearly all Americans that have Internet access have made an online purchase. Many of them probably just in the last month. Over half of the consumers now prefer to shop online. And over half of the search sessions for e-commerce originate from mobile devices. So we're certainly becoming a mobile world in terms of how we order our products. We don't even always know where they're coming from. They could be coming from around the world as we're shipping around the world as well. In over half of consumers, if you have a bad experience when you have a package arrive to you, then it definitely can affect your loyalty to that consumer. So that's where Think Inside the Box really became prevalent because CPG companies really need to think bolder, be bold and act bold when it comes to delivering packages and their products now directly to the consumer. So there's new considerations that need to be taken into account regarding product packaging. The primary package in many instances now is less important for promoting the product and more important for protecting the product because the retail shelf purchase is more about what does the product look like, catching the image and the attention of that consumer in a very short timeframe as they're moving down retail aisles. Now there's a switch to, they've already made that choice. How do you get that product to the consumer? So the secondary package is traditionally the box that our products come in, but something that Amazon is asking is, we don't want to do a box inside of a box. So a good example I can give you is that recently I ordered a vacuum cleaner online. That was a box within a box. So I had a lot of packaging material that I had to dispose of. Looking at that is a possibility where that primary shipper that's got graphics all around it, ready for the retail shelf, can be changed to be the actual box that product is shipped in, and any of those graphics or needs could be inside the box. So when that lands on our doorstep, that does not show as a sign of okay, I have a vacuum cleaner sitting on my front doorstep and potential draft. So lots of different things that we have to think about between the primary package, the secondary package, and certainly the tertiary package now of unit loads and banding and pallets. That's not going to go into the consumer any longer. That's something that is certainly far less important. And there's really pushback happening from the consumer from our side and saying, there's way too much packaging that you're delivering to me. And that's causing repercussions throughout the industry that we'll take a look at here in a minute. So we really need to think differently when you're evaluating opportunities in the global marketplace. It's kind of level the playing field, large companies and small companies with a presence online. It's now you don't see how large is that company? Where do they locate? How many people do they have? It's really given small companies the opportunity to play at the same level as large companies, because it's all about getting that product to the consumer as quickly as possible. That can happen for any size company. Brand names in terms of what we're looking for online, the brand names are out there. And again, small companies can begin to establish a brand online very quickly. So it's really think about packages and units instead of cases, creating the primary package carton to function as the shipper carton. And really the whole sustainability, the packaging that comes to us, we want to be able to dispose of it and recycle it and not have all that end up in a landfill. And it's certainly increasing the curbside waste that's occurring in all of our communities. It's it's wreaking a bit of havoc on our municipalities with the amount of waste that they're dealing with now. So what if there was something we talked about with one of the experts? What if there's a returnable consumer totes system that actually you transport back and forth, similar to the way milk was delivered 50 years ago, you would leave your milk bottle outside in a crate, they would take the empties and they would give you the new. So maybe there's something in that where there's a returnable, non waste system that can actually deliver our products more efficiently. Certainly things to think about in the future. In CPGs are evaluating all of these different types of options to increase their efficiency. They're looking at digital print on demand, single wrapping a product, certainly minimizing product leak must occur. And just looking for options in their own plant maybe maybe look up. We talked with someone who said, you know, putting their conveying equipment up mounted hired to maximize their space, all kinds of things that our manufacturers are needing to think about and look at. So the most important consideration at each stage of the e-commerce supply chain is really going to be damage prevention and package reduction. They want to minimize random packs. We're talking here with a senior specialist engineer of an OTC company. They really were looking to move and unitize and put things together into a case to push out with end of line. So approximately two and five brand manufacturers are considering a change to their primary package needs to be like I mentioned leak proof. If Amazon touches or needs to repackage a product in any way, there is a charge that goes back to the manufacturing company. So any kind of leak product or even something that would emit an odor or somehow infiltrate other products in the box because there's many products now that your product could be packaged with that isn't like other products. Single serve smaller package sizes and the whole late stage personalization and maybe seasonal messages that's occurring at the end of the line that really makes it a personal experience for consumers needs to be lighter weight and certainly again damage prevention of the primary package and nearly three or four brand manufacturers are also looking for changes to their secondary carton smaller pack counts reduction in carton size like I mentioned maybe moving to shrink wrap tray more robust carton design for your for the primary carton that can serve as the direct shipper carton direct print and certainly right sized cartons as we as we looked at earlier. So thinking fundamentally it's different packaging is different for the e-com market than it is for the standard retail shelf. So it's it's the think inside the box again to know your customers and what they're looking for their first impressions definitely count with the whole like I said the phenomenon of this unboxing experience that you can find on YouTube shrinking that primary package by size and portion protecting it as it needs to move through the e-commerce supply chain right size secondary packaging and then all of this we need to have data optimization that's something that's occurring already with the advancement of automation. So some of the technology opportunities we'll look at next. You know what's in the years ahead is more integration begins to occur flexible machines become available in streamlining that fulfillment process to protect the product looking at the right size boxes and maximizing the resources that we have and expanding those to be more automated to make things more efficient and more streamlined. So we're looking at e-commerce. We talked to some people that really were thinking of building a new line for e-com market diverting end of line in terms of some of their products are going to go off and be packaged for retail and some of those products are going to be sent off on an individual basis maybe bundle wrapping with other products like them or certainly a different diversion when it comes from delivering to retail to the consumer. And we talked with three of five brand manufacturers are increasing their machine purchases. So there's definitely spending going on in this market specifically to look at and answer the challenges for e-com marketing. And then we talked to the logistics suppliers and most all of them four out of five they predict spending more on machine automation and technology improvements in the future as well. So a place that you can go to help them really look at what their needs are and how many of them can move away from manual labor. So about two out of three of the companies where we're looking for are looking to make purchases for secondary packaging nearly half looking for warehouse handling equipment about a third of people still looking for marketing coding equipment about another third for primary packaging and looking at vision and sensors. So there's lots of activity going on that's really spurring purchasing and in the need to upgrade the operations that manufacturers are using today. So e-commerce is certainly the opportunities exist. They're looking for greater integration to have more intuitive sensors be more flexible as I've mentioned and to accommodate the changing needs that manufacturing is looking at now nearly half of the brand manufacturers that we talk to are looking for machines now that are going to be integration ready. They have to be able to collect data. They have to be able to bring that data up to their management systems so that you can have a real entire view of your manufacturing process. And to do this to really address e-com nearly half of the brand manufacturers that we talked to are actually creating positions that VP of e-commerce directors of e-commerce that are looking at this entire change in that's emerging and how they can handle it. So a lot of companies are actually creating positions to do that. The kinds of things that they're looking at in terms of the functionality is certainly fully integrated and connected a standard platform smarter sensors for data acquisition. This is probably nothing new that you haven't already heard about. But it certainly confirms that these are the list is getting longer of what the machines need to be able to do in the future be more flexible to handle a variety of sizes. There needs to be a more interactive intuitive HMI needs to be more safety improvements incorporated into that both as cleaning as well as operator safety. OEE companies are measuring that now. Product traceability must be on the table. They're looking for faster startups faster changeover faster changeover was at the top of our list for many years. Those functionalities are available in the marketplace now. So companies are really starting to see the ability to change over faster. Preventive maintenance even predictive maintenance as we collect more data in our manufacturing sites. And then really simpler machines for less skilled labor. But that doesn't mean it's not functioning at a high level. It's functioning at a very high level and intuitive and easy to operate. So we talk to the supply chain as well through all of this. And they're really this is obviously ecom is affecting the supply change significantly moving product closer to the consumer both warehousing packaging and delivering those products so that that last mile of delivery is as close as possible to the consumer. And it's really causing a significant increase in the three PLs every three PL that we talked to predicts growth in the next few years. We talked to one director of marketing at one of the logistics companies and they said they only exist because of ecommerce. Now they've been formed in the recent years to accommodate this whole delivery of our products directly to us. And so if we look at kind of some statistics behind this, general warehousing and storage has grown 3.2% in the span between 2012 2016 refrigerated warehouse and storage is not growing quite at the same pace. But it certainly is seen an uptick in that where warehousing and storage needs to occur. We talked to contract manufacturers and contract packages. They predict their business to grow by double digits just because of the ecommerce business. A lot of what's going on in terms of new products or single wrapping or delivering and bundling. Some of this is going to contract packages that have the ability and the equipment to do this. And it's certainly going to increase their business as well. So brand manufacturers are thinking about machine and material considerations. Your e-tailers are thinking about fulfillment and distribution. The logistics providers are thinking about packaging and delivering. And the consumers were the ones doing the online shopping and looking for the unboxing experience. So it's ecommerce is affecting all stages from the beginning to the end. We being the consumers at the end of what's happening in this market. So online shopping with the growth and online shopping also opens the door to more counterfeiting. More counterfeit products entering our supply chain. PMMI has a very thorough report on the whole brand protection and traceability that gets into this in much greater detail. But as I said at that time, if the cost online is too good to be true, it could be counterfeit. So if there's something you particularly purchase and you find it online and it's astronomically less cost, it's probably not the product that you're thinking about. But in some instances, there's markets where this is driven to be counterfeit. And that's what the consumer looks for. So it's really just consumer beware. The brand manufacturer is responsible for initiating that trackable chain of command to authenticate and make sure those products that we're ordering are legitimate and they're the ones that they manufactured. But it's also the responsibility of the entire supply chain and that's where there's a lot of handoff in terms of the next delivery being able to track it all the way from the beginning to the end, which we know we can do that on our smartphones with UPS and FedEx tracking. We know exactly when it's coming. We're alerted when it arrived. We're alerted when it's at our doorstep. So there's certainly a lot of that tracking that's going on and more to continue. And 1D bar code certainly anchors this, but manufacturers are looking beyond that for tamper-evident packaging and 2D bar codes that really expand the information and communicate directly more with the consumer. So growth in global e-commerce has really driven the growth in corrugated material. Both the brand manufacturers, nearly half of them and over half of the logistics suppliers predict using more corrugated material. Smaller pack counts, smaller carton sizes means more corrugated. Additional packaging protection in, for instance, now with e-commerce means more corrugated material. The corrugated industry has seen growth at about 4% annually predicted for the next several years. But if we really look at this, that corrugated material is ending up in our front door. It's ending up in our recycle bins. It's ending up in our municipalities. And it's creating a shortage of the secondary corrugated market. Retailers would bundle this, sell it back as used corrugated for the recycling market. And that now is causing a shortage because a lot of that corrugated now is going into our recycle bins. It's not going back into the secondary corrugated market. There's several factors that are kind of pointing to a slowdown. We as consumers have a pushback that we're getting too much packaging. So are there other ways that this can be delivered? We're seeing Amazon and a lot of the retail online stores now sending it in flexible bags. Maybe there's an expansion of flexible sleeves. There's other ways that the market is starting to look at how do we reduce the use of corrugated waste that is actually e-commerce has sort of created an upside down model of sustainability. We're using more materials than our objective is to use less. So when we look at delivery, there's certainly different considerations taken into account of how our products are delivered. And that's where the manufacturers really need to look. Do they use the existing supply chain? Do they establish warehouse locations? Do they rent warehouse locations, which is an interesting business model of a warehouse just renting out space as needed sort of like the Airbnb of warehouses. Encrypted chain of command needs to be looked at just dynamic routing. How do we get product A from point A to point B as quickly as possible? There's some skepticism that drone delivery will actually occur. But it's being tested in several different markets. How do we do that? Driverless vehicles. That was shown actually at a PAC expo conference several years ago of how would a driverless vehicle move into a neighborhood with a drone on top of it and do that last mile of delivery? And is there even a humanoid robot that will walk it up your walkway to get to your front door? All kinds of things that are really being looked at. Uber now has a delivery service. So it's amazing the kind of businesses that have grown out of this whole ecommerce phenomena. Logistic suppliers look at a vastly different supply chain in the future. Maybe display only stores if you remember the whole service merchandise model where everything was on display. And you came down a conveyor. That is something that the companies are starting to look at in terms of where and how do we reach the consumer to be able to go and touch our product. Retail certainly isn't going to disappear in any way, but it's going to evolve into a different experience. Smaller boxes, individually racked products as we've already talked about. So let's take a kind of a look at the future. Because the future really is now. And the future just keeps arriving. So we always look out at the future, but we're kind of in the midst of this significant change that's going on at our manufacturing sites, as well as in our own consumer lives of how we look at products, where we go, what our expectations are. It's really all speed to market. That's the challenge for manufacturing companies. And how is that going to look different in the future? So some of the top actionable takeaways are to collaborate. Supplier partnerships form closer alliances with e-commerce decision makers that are forming at the CPG companies. You know, explore what they need, what solutions are they looking for, and offer those kinds of solutions. Forming those partnerships with three PLs and warehouses, we just heard that 100% of them are definitely looking for and moving away from manual operations to a more automated process to make that more efficient and utilize the labor that they do have more efficiently. And automation is definitely filling the skill gaps, designing those machines to be more intuitive, more simplistic, introducing robots and even co-bots to fill that space and make that an efficient working environment that moves product out the door quicker, both to your retail locations and now directly to the consumer. And be innovative. In terms of flexible solutions, we know that skews are increasing. They're continuing to increase. Shorter runs with more personalized customized products is on the table. It's become the new normal. So looking at flexible solutions and their machines and their whole manufacturing process is something that CPGs are it's at the top of their list. Right sizing, looking at a box that can make the exact size that's needed as opposed to the big boxes that we're getting with small product inside, making that box shipper match what's in the box, again, thinking inside the box. Packaging protection is number one. We heard that consumers can lose loyalty quickly if they get a product that's damaged. And touch points continue to increase as it moves through the supply chain. So packaging and product protection is paramount. And looking at materials, CPGs certainly would love to have a material that offers greater durability to prevent product damage. It's lightweight to minimize shipping and it's sustainable so it can either be composted or recycled easily. So they're really looking for a tall order of a material. And in a lot of instances, packaging is sustainable, but maybe only portions of it will be sustainable. So looking at that from a standpoint of how do we reach so the whole package that we receive as a consumer can now be something that we can dispose of more easily. And then automate. PMMI has a automation report out that is very thorough and extensive, but it certainly merges in with the whole e-com market, providing automated functionality and integrated solutions. Again, to answer to the lack of labor, everything needs to be IIoT ready. And is every company at this threshold? Not. They're not. And in the automation report really gets into the depth of adopting automation and where a company is at with that adoption. Personalization and customization. We've touched on that being able to build into your end of line, personalizing that product for the consumer, customizing packaging, multi bundling, different products bundled into the same package, many different options that manufacturers are looking at. And this is all causing floor space constraints in manufacturing sites that are already had floor minimal floor space that's available. It's really pushing the real estate boundaries even more to be able to look at what kind of end of line diversions are needed, what's needed in compact modular machines to really become the most efficient in terms of the changes that are happening today. In replacing manual labor, we've talked about this several times. But particularly, we talk to some of the subscription business companies, the meal kits that are out there, the product of the month clubs that are becoming very popular. A lot of these operations are manual now. And they really are looking to introduce more efficient manufacturing and efficient packaging as well. How do they bundle some of this together? How do they get, we talked to one meal kit company, they had 45 different packages that they were trying to deal with in terms of putting a meal kit together. And they're really looking to the industry to help them solve some of those solutions. So e-commerce is certainly moving faster than we can keep up with. That's what we heard from a e-commerce manager from one of the industry leaders. And they're looking to react as quickly as possible to the opportunities that are presenting themselves to them today. And it kind of is a summary here. We looked at 125 different articles and government data and market predictions that are all cited throughout the full report, which you can download at www.pmmi.org slash research to get the executive summary and the full report. And in Appendix B of that report, we have all different categories here that we've divided up these articles and resources for further researcher, just depending on where you want to go with what you're interested in, that's all fully referenced and sourced in the full report. So I will turn this back over to Rebecca. If there are any questions, I would be happy to answer them. And I appreciate you listening in on this today. And thank you very much. And I'll turn it over to Rebecca. Donna, thank you so much for the insights you provided us with this latest report on e-commerce. This was great and super informative. And Donna is correct. We'd like to open up the session for questions. Please enter any questions you would like to have answered in the message chat box at the bottom of your screen. It does look like we already have one question. One of our attendees wants to know if growth in food markets, it looks like growth in food markets be attributed to consumers being able to get products that are not easily obtained through traditional channels like seasonal or regional items. And if that's the case, will that require longer shelf life? Shelf life is something that is it's consistently being looked at in terms of how do we extend shelf life with even meal kits or the prepared kits that we're looking at. I think the whole phenomena of groceries online is something that is personal and continuing to evolve. So that does tend to be a bit more of a generational younger generation doing more grocery shopping online. There's the whole delivery aspect of that now. Walmart is predicting they deliver it within an hour. You can go pick it up. So when we look at extending the shelf life of our products that have a shelf life, yes, absolutely. There is being looked at is how do we do that? How does the packaging look to extend that shelf life? And how does it protect it as it moves from the store to us? It's interesting because when we go to the grocery store and we think of that in our own car, we're not as concerned about, well, did it stay cold? Did it survive the trip as we are now when we're asking someone else to deliver those groceries? Is there going to be, because I think part of the question also is about items that are not obtained through traditional channels. So I mean, the example given are seasonal or regional items, but they could also, I think that could also mean like specialty food items that are difficult to locate at a traditional grocery store. Is that part of this? Is this going to be a component of sort of grocery growth and e-commerce? It definitely will play a role in the growth of groceries and e-com and seasonal items. And part of the question says not easily obtained through traditional channels. I mean, that's what really has driven us to shop online. We can find it easier. You don't know what stores it might be in or might not be in. I think the prediction of how much shopping gets done online is only touching the surface as more consumers find that efficiency, the convenience and the whole experience of not having to go out to shop. Looks like we have a few more questions. One of our attendees is also wondering where some of the people you spoke with, where are these people going to find solutions to their problems, particularly the 3PLs? Well, they're definitely looking to the machine manufacturers, the material suppliers, the suppliers to the industry to help them find some of these solutions. Certainly, it says what trade shows do they go to. We didn't get into that specifics, but Pack Expo was just last month which broke both attendance records and records for exhibitors. So those are the places that companies are going to conferences. The Automation Conference earlier this year actually had several 3PLs and meal kit companies and companies that wouldn't particularly come to those conferences in the past are now showing up at those kinds of conferences. Did anyone you spoke with, particularly 3PLs, mention using any kind of trade associations as resources? It wasn't a question that we got into, but as I just mentioned, certainly Pack Expo is highly acclaimed in terms of where to go to find solutions. We do have a couple more questions. How are delivery service providers dealing with cold and hot weather climate? Definitely looked at from the standpoint of the number of warehouses that have to have refrigeration. That's something that we didn't get into a lot of in-depth conversation about that. That's something that, again, it's protecting the product. So it's protecting it from all aspects of the environment. So many touch points now in the eCommerce channel. Where is it going? Is it going to a hot climate? Is it going to a warm climate? I don't think eCommerce phenomena has changed that very much. Products still need to be protected through the process. They still need to be protected if they're going to a hot climate. So that hasn't really changed. It's just how it's being delivered that's changing. Not necessarily anything different in terms of you still have to think about where that product is going. Thanks, Donna. And we do have just a couple more here. One of our attendees would like to know if eCommerce is pushing CPGs to continue the rigid to flexible conversion due to weight concerns. That was something we did touch on, yes. It is pushing CPGs in that direction, but it's also moving from a rigid to a rigid. So maybe moving from glass to plastic. It doesn't necessarily that they have to go from rigid to flexible. But as we know in the flexible packaging industry, flexible packaging is continuing to grow. We here in the United States were more accepting now of the flexible packaging stand up pouch stick pack. So flexible packaging still continues to find its use, particularly in food packaging, but also outside of food packaging, there's products that are moving to flexible. And it's something that's on the table at CPG companies is, you know, they're questioning and looking for guidance on what are the options and what are some of the solutions that they can look at. They certainly are looking to form those alliances with your material suppliers, as I said, and your machine builders. You know, it's a collaborative effort that's going on to solve some of these solutions. And we have one more question here. You've touched a lot on the unboxing experience. And one of our attendees of the opinion, and this does make a lot of sense that the unboxing experience makes a lot of sense relative to higher end items and first time purchases. But did you discuss with any of your in any of your interviews, the unboxing experience for more commodity type items that are sort of real, like on a reorder or auto ship basis, it is the unboxing experience as important for those types of items? That's a really good question. We didn't talk about the unboxing experience from the consumer standpoint. So we didn't interview consumers on that. But your higher ticket items certainly are going to have a first time or a only one time only delivery. So the the reorder like I know you can go on grocery and you can have automatically every week or whatever your frequency is, you can have that delivered all the time. So it's not necessarily that it has to be unboxing experience that it's like a phenomena like you're so excited to get this product. But it certainly has to be damage free. The box needs to be protected product needs to be protected so that when those products are open, there is no damage experience. There is no negative experience. So from that standpoint, it's it's still an unboxing experience. It doesn't need to be a big fancy delivery. But it certainly needs to be damage free and no leakage inside the box. None of the products leaked. So yeah, I think the the delivery experience, whether it's a first time or it's every month, it is an important aspect to the consumer. Great, Donna. Thank you so much for that. That's all of our questions right now. Let's leave just a couple more seconds here to see if anybody has any other questions, please be sure to type them in the message box at the bottom of your screen. We have a few more minutes of our webinar left. Some really good questions coming from attendees, by the way. And Rebecca, are they able to download this then the actual webinar online? The webinar will be online by Monday at the very latest where they will you'll be able to review at your leisure at no charge. We do have another question that just came in. There's a lot of talk about rigid packaging moving towards flexible packaging. Was that discussed at all? In this e-commerce report, we talked about it briefly. But PMMI has a new report out on just flexible packaging. So you Rebecca can probably guide you to where that's available. Again, it would be available on PMMI's website. And that's a new report that is available. So it would get into much, much more in depth of the movement from rigid to flexible. And so, Tendi, who had that question, if you have further questions or want some more detail from the report or or anything of that nature, you can feel free to email me at rmarquez at PMMI.org. And I'm happy to answer any additional questions you have or provide any further detail. And if I don't know, I can easily pass it on to Donna as well. Okay, Donna, it looks like we have no more questions at this time. On behalf of PMMI, thank you everyone for participating in today's webinar. As a final note, you will receive an email to complete an evaluation for today's webinar. Please complete the evaluation as soon as possible and let us know how we can improve our webinars in the future. And Donna, thank you so much for a really informative webinar. And I think we can conclude. Have a great day, everyone.


Tom here from Lauren systems and it is February 22nd of 2023 and IX systems has sent us for review This true Nass mini now. This is not a sponsored video, but fold is closure. We are resellers of IX systems We actually resell a lot of their high-end equipment And that's where I like that. They've also made some more Consumer small business-facing equipment such as the mini series now I'm using a mini to edit this video right here And I've been using the minis for a little while I've got a few reviews of them on my channel as they've been released This is the first rack mount mini that they come up with and I'm really happy because there's a lot of businesses and Especially in the video editing market where I think this is going to be pretty ideal That are looking for a turnkey solution not a DIY solution true Nass is awesome for all the DIYers out there Who want to use existing hardware use used enterprise hardware or mix and match and find the best combination? That they want to build but if you're in the creative space and you're a videographer for example your YouTube creator And you're not a tech YouTube creator who doesn't like playing with the hardware as much you're kind of going I want to do all that cool free Nass stuff But I don't necessarily have time to DIY it and that's where the mini series kind of comes in all of them are really Quiet all of them are really solid and of course You know they're gonna work really really well with both true Nass scale and true Nass core because they came from IX systems So I think this is a really good lineup of having this rack mountable system in there So let's dive into the specs. The processor in the mini R is an Intel C3 758 I know someone may notice that's not the newest processor But it's a very power efficient very reliable and still current processor and good for this particular workload And is the same processor as well That's in some of the other mini options that they offer here in 2023 You can get 32 or 64 gigs of ECC RAM. This has a dedicated IPMI We'll dive into that shortly the networking on board is to 10 gig RJ 45 But it does have a PCIe slot that you can use for SFP plus It has one M2 MVME boot device 12 high quality lockable hot swappable drive base But of course you can put two and a half drives in there as well This unit has a 45 DB idle and 52 DB peak noise Therefore, it's welcome to be in my studio without annoying me or making too much noise And I think that's a good sound profile for these much quieter than a lot of other rack mount equipment And finally less than 170 watts fully populated under load This is something that not everyone takes into consideration for some of the small business market Where maybe they don't have dedicated Higher end circuits available to power all the equipment in there Especially when I mentioned the small business or youtube market This may be something that runs in literally a closet or a area of a basement And you don't want something high wattage because you also have to deal with all the high heat that may come in addition with that Or if you have several other servers in there, that may be a problem Now this is not going to be ideal for virtualization targets. It's not going to be ideal for your Truly mission critical workloads because this is a single power supply system with a single boot device on there But for the video editing and the creative space, I think that's actually going to be a really popular space where this fits in Or maybe enterprises that just want a extra copy of data and want to have it in there as a backup in terms of just to have One more copy of all of your backups off of a larger more mission critical system Now let's take a quick look at the ipmi lights out management I think this is greatly convenient whenever you have to manage these systems remotely. This is really handy to have I mean kvms are great But even here in 2023 ip based kvms are just not inexpensive and being able to Sit right here and remotely administer this system Including if we wanted to go and fully remote control it with their nice handy html5 here We can jump over to it right in a web browser control the system and adjust it.  There we go We've scaled this particular display down to make it maybe a little bit easier to see for me a little harder to see on YouTube because of the resolution But you get the idea that this can be completely administered and by remotely I mean, yes, it's on the other side of the wall for me But still this is way more convenient than actually going all the way over And sitting in front of the box because you know who wants to do that Now going on to the server health. We can read the sensor readings So it'll give us a status of all the sensors in the system So we know how they're doing you can also see what those thresholds are and of course there's a lot more configuration options Including if you want to set up SMTP to have it send you an email or notify you So there's a couple different ways you can tie this in to get those notifications sent out So those are options as well And in case if you need to remote load this we do have the option for acd rom image that can be attached So shared host path the host user password You can do a mount get your iso image on here and do a reload if needed without physically having to be at the box Or plug anything in Now this is running the latest version of trunascale 22.12.1 which was released today But i'll let you a little secret iX system sent me kind of a preview release in order to get this tested Because well in this version of scale came the update for the mini r to get a fully functioning So i switched over to that one But i was actually able to test this in preview About a week early and i didn't run into any problems with it But i'll have a review coming soon of 22.12.1 So i've updated a few other systems to it this morning Everything went smooth on all of those including this one here But let's take a look at the enclosure because this is one of the advantages you get when you buy an iX systems mini Versus when you do the diy There's no way to line up in a diy build this Exact enclosure. This is something when they work directly as in iX systems and super micro together They can then put these extras in there And this is just really convenient when we pull these slide these out and knowing where any of them are And we have it showing two pools But we can also have it show status and all are green because they're new drives and nothing's faulted Despite me dumping a lot of data to them didn't have any problems This is the rusty pool as i called it because it has some Wd reds in here So you're spinning rust 7200 rpm drives And this is the flashy pool because it's got some 1.75 terabyte SSDs in here So as i'd mentioned earlier if you're doing a video editing type of use case for this You may want to edit all your live stuff here And once you're done with the project you can migrate it over to here And just be able to swap it back and forth or replicate it within the same pool Or just drag it from one place to another through your file manager Hey, that's going to be really convenient on here Now i didn't run this unit through an entire battery of speed tests because as i said in the beginning This is probably not your most ideal setup for virtualization targets and high performance storage But if you are going to be using it for the use case i suggested such as smb You're probably at least wondering how fast will it transfer smb And i have a setup that well gets the job done So let's first go over here to apps and i want to pull up the web portal here So we can see it in net data because it makes it look pretty So we have that app loaded and i'm going to bring over here some files I have just a few gigs of files on a windows server now This is a virtualized windows server So i know it won't give me the absolute best performance that we'll get out of here But you'll get an idea now my system has the same specs and gets just a little bit faster than this So i get a little bit closer to the 400, but even in this setup here We're looking at a transfer and this is the right side of it at about 300, 325 Now the big advantage with zfs is the read cache, of course Which will give us a much better number if we transfer it back Especially if you keep accessing the same files or multiple people such as in an editing environment But it's still reasonable. So while this is transferring here We can go back over here to net data and see what the cpu load is and yeah, we're loading the cpu up It's definitely peeking up there around the 50 mark But hey, we're hitting 2.8 gigs here 2.7 gigs So it's definitely faster than one gig, but no, it's not fully saturating with this particular configuration Of just having four drives in a raid z1 that are ssd drives able to fully saturate this 10 gig on this particular setup There are still some limitations to it, but for the most part in like the example here I am Editing in 4k and that's not a problem in a system setup like this And that's all I really have for the true nas many are because all the other features such as virtualization SMB nfs ice because he all the zfs features and all the integrity that comes with Using zfs are all just true nas features and it runs standard true nas. It's not a special version It's not a proprietary version of true nas The only thing extra you get when you get these minis and the difference you're going to get is the ix system Hardware and the enclosure management because the hardware is talking to the software in a way So they know where all the drives are that also means you're not locked in if you buy this as a solution So if you start with this as a solution or you're coming from a diy solution You can swap different drives in there's not a vendor lock in where you can only use a particular drive or a narrow list of drives This is something I like about true nas and it is a big consideration when you're considering what nas to buy because if a Vendor says these are the drives that are going to be used in there Does take that into consideration whether or not that nas becomes well more expensive because of that So it's not just the chassis. It's the ecosystem around it and true nas being the largest by far open source storage solution out there Um, I don't think you can go wrong with using true nas It's one of the reasons I'm such a big fan of it and why I use it to edit this video and all of my other videos I'll trusting it and trusting zfs to keep the integrity of all of my files So this is a great addition to the true nas lineup with the mini leave your thoughts and comments down below However, my forums for more in-depth discussion or head over to iExistence forums to you know Talk about the new features and new things that are coming out with true nas scale It's a pretty rapidly developed product right now And i'll be doing some more videos on scale soon including like a whole getting started with scale as they kind of Mature the operating system and waiting for it to get where there are a lot more feature complete and feature stable Including some of the new features that came out in the new version that was released today. All right, and thanks