Cover Story Archives - Material Handling Wholesaler

Steady Hands in Shifting Sands: Maintaining Your Dealership’s Edge

Wed, 20 Aug 2025 05:00:57 +0000

In the September issue, we typically cover the latest developments in finance, rental, and leasing, providing input that dealers can use to modify their systems and procedures, ultimately leading to higher profits and increased cash flow. To accomplish meaningful results, you dig into industry data sources, talk to bankers, and put together comparative data year-to-year, explanations of why results shifted, and if you are lucky, compile estimates about the future 12 months at a minimum. This year, however, it appears that every avenue regarding equipment, interest rates, unit costs, customer requirements, rental activity, technology, new tax bills, and almost everything you look at is in a state of flux, meaning that any short-term analysis is probably going to be tough to work with because assumptions used could change at any time. Let’s start with a brief review of the industry, and then we’ll move on to the more significant changes you will need to address. If you recall, my previous series of articles focused on performance gaps and potential changes a dealer may encounter, which, if left unaddressed, would reduce the value of their investment. However, as I prepared this article, I realized that the five-year timeframe for AI and technology we have been hearing about will soon be upon us, requiring a decision to be made. Short-term decisions require a conservative approach to business planning. Dealers may also want to consider bringing in outsiders to help contemplate their personal technological literacy and access to expertise. This same method should be applied to risk management and prioritizing technology investments. Obtaining input from peer groups and OEMs is also essential. The most significant change will be in the metrics used to compare your statements with those of the standard industry results. For many of you, current metrics will no longer be comparable against your “new “numbers. This was one of the reasons I covered Free Cash Flow in a recent column: to determine how much free cash you have available for growth and technology. This conservative approach will impact both dealers and customers. Consequently, purchases of equipment will be kept to a minimum, with units in use receiving more attention from customers. Interest rates will lead customers to avoid higher-priced units, instead opting for rental or refurbished units that are available for purchase. Taking a conservative approach to the balance sheet is also essential. Clean up the AR, review the parts inventory, and eliminate slow-moving items. The same applies to used units with low time utilization. New unit purchases should be kept to a minimum until we get a better understanding of the market. You may also need capital for new types of inventory. Continue this review with your rental fleets to keep them available when needed. Also consider what units would be refurbished for sale. Squeeze as much capital out of the balance sheet that you can. The income statement line items should also be reviewed to see what can be eliminated and when. After completing these reviews and adjusting, you will have a much better story to take to the bank in support of additional capital needs Now let’s get to the potential change that will change the way you do business and, as a result, change the metrics from what they were to what they are after making both product and technological changes. What is going to change? AI development Technology ROBOTS Believe it or not, you will be in the ROBOT business because manufacturing and warehouse customers are going to demand it. Because China has built the most automated manufacturing empire in human history. Producing products faster and cheaper than anyone thought possible. China installed 276,000 industrial robots in 2023- more than half of all robots deployed worldwide that year. In 2021, more industrial robots were produced than ever before; China also produces 50% of the industrial robots it installs. And now they are starting to build robots themselves. And once they perfect this cycle of robots building better robots, US companies become permanent customers of Chinese factories. US companies are demanding a national robotics strategy. Every single factory or warehouse being built will be more automated than anything the US has ever built. Let’s face it, labor costs make traditional manufacturing uncompetitive. To beat China at this game, we need to out-automate them. Steal the robot jobs from China and use our robots to produce goods and services in the US. What is great about this is that your services and some products are what these manufacturers and distribution companies need to transition to full automation using robots. You sell, rent, maintain, and assist with the construction or rehabilitation process to modify an existing facility. Material Handling dealers should take steps to access robots, technology, and AI expertise to make it available to their customers. At the same time, they should have an arrangement with service providers to refer new customers they encounter. Now you understand, based on the “state of flux” comment I made earlier, as well as my earlier comment about the performance gap. Most dealers will be entering a new business with fewer personnel, lower prices, and fewer inventory units because of the AI/Technology opportunity. I also want to mention that Steve Pierson, CPA, and dealer tax expert, is available if you have questions about the new tax bill. Jim Margner, CPA, is the state and local tax expert who may be impacted by the new tax bill. If enough people are interested, we can set up a podcast to discuss the tax bill in more detail. Please let Dean know if you are interested. His email is dmillius@MHwmag.com. BDO sent me their summary of the tax bill, which I sent to Dean. Let him know if you need a copy. Last comment. Where do you fit into this new business environment? Where does your product fit in going forward? I suspect that there will be a few M&A deals available for dealers who are not willing to make the switch to this new

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Dealing effectively with the competition

Sun, 20 Jul 2025 05:00:23 +0000

“This would be a great business if it weren’t for the competition!” Unfortunately, the existence of the competition impacts every industry, every business, and every sales position. What the competition does or does not do can make a dramatic impact on a company and a salesperson. That impact can range from squeezing you to the point where you go out of business on one extreme, to creating tremendous opportunities for growth and profits on the other. The competition and its potential impact on your business are a fact of life. No matter how hard you wish, you are not going to be able to make the competition go away. While we can’t change the competition, we certainly are responsible for our attitudes and behaviors toward the competition. What we say and how we act regarding the competition can have a daily impact on our bottom line. An appropriate attitude and set of practices for dealing with the competition should be an essential part of every salesperson’s repertoire. This article is an attempt to describe some of the salient parts of that mindset. Respect the competition. Speaking poorly about the competition, looking down on them, finding fault with them, and generally disparaging them are all common behaviors that I frequently observe among the companies with whom I work. It is easy enough to understand why. In sales meetings, we are constantly told how our products compare to the competition, what makes our service superior, and why our people are more experienced and knowledgeable than theirs, among other things. In my role as a consultant and sales educator, I am uniquely positioned to test the validity of these claims. I’ve occasionally worked with a company, for example, and then a few years later found myself involved with one of their competitors. Or, I may have two or more competitors in one of my seminars. This unique position has allowed me to make observations about such claims. One of the observations I have made is this: There is usually some degree of truth in the details of these elements. Your hot new product may have several features that your competitor’s does not have, for example. However, in the big picture, your competitor offers a sound business option to your customers. While your new product contains some features that your competitor’s does not, your competitor’s product probably includes some features that your product doesn’t contain. And while you claim your service to be superior, so does he. And your people are probably not any more experienced and knowledgeable than his people. From the 10,000-foot-high perspective, if your competitors were as flawed as you think they are, they wouldn’t be in business, and your customers wouldn’t be buying from them. In all likelihood, your competition is made up of educated, committed people who are trying just as hard as you are to be a viable option to your customers, to conduct their businesses with integrity just like you, and who strive to do a good job and to provide for their families through the fruits of their labors, just like you. So, bury those attitudes of superiority, and cast off that disdain for the competition. If your customers didn’t think they presented a viable option, they wouldn’t be buying from them. Don’t believe everything you hear. We occasionally hear comments from our customers with complaints about the competition or stories of how they have messed up on a project. This, of course, contributes to our natural tendency toward smugness by confirming our views. Let’s take all of that with a healthy degree of skepticism. Understand that the people who share that information with us are typically those customers with whom we have the best relationship – those who we consider our friends. What we see as confidential information about the competition’s weaknesses may be the natural human inclination to tell us what they believe we want to hear. Our friends want to find common ground with us. And our animosity toward the competition provides potentially fertile ground to cultivate. It’s been my observation that many of those customers who are reporting on the flaws in the competition to you are reporting on your flaws to them. Don’t view everything you hear as 100% accurate. Don’t speak badly about the competition – ever. Disparaging the competition, speaking badly about the company or the individual sales people, using little innuendos and side comments – all of this says more about us to our customers than it does about the competitors to whom we are referring. It reveals us as small-minded, petty, smug, and far more interested in ourselves than we are in our customers. It is reminiscent of the principle behind the oft-quoted passage from the Sermon on the Mount: 3 “Why do you look at the speck of sawdust in your brother’s eye and pay no attention to the plank in your own eye? This is something I learned the hard way, in one of the most embarrassing incidents in my tenure as a salesperson. I was selling a piece of capital equipment, representing a product line that was 35% more expensive than the competition. However, the additional cost was justified by a far superior product. The competition had been experiencing a problem with one component of their system – the batteries easily worked loose and disconnected. They solved that problem by using a rubber band to provide additional tension on the battery and keep it from jiggling loose. I pointed that out to my potential customer, asking them how comfortable they felt with a product that was held together with a rubber band. My customer’s response? “Do you know what I don’t like about you?” she asked. I was floored and speechless. “You are so negative about your competitors.” I turned beet red, stammered an apology, and retreated quickly. That incident has stuck with me for decades. At this point, there is a question that naturally occurs. If I don’t want to speak badly about

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Is your Dealership equipped for the Future of Customer Experience?

Fri, 20 Jun 2025 05:00:48 +0000

Back in March of this year, after attending and exhibiting at this year’s record-breaking ProMat Show in Chicago, one thing is clear: the future of material handling is arriving faster than many in our industry anticipated. The pace of innovation, particularly in automation, robotics, and artificial intelligence, has accelerated, and it’s reshaping expectations across the board, especially in the aftermarket segment for lift truck dealerships. More than 1,160 exhibitors showcased a diverse range of products, including autonomous mobile robots, predictive maintenance platforms, and traditional material handling solutions. There were also over 200 educational sessions that delved deeply into how these technologies are reshaping the supply chain landscape. The energy at the show was unmistakable, and automation is no longer just a buzzword; it’s a wave that’s already hitting the shores of warehouse and distribution operations. The tools on display weren’t just aspirational concepts; they were real, functional, and increasingly deployed in operations ranging from Fortune 500 distribution centers to mid-size regional warehouses. There certainly is an acceleration in the adoption of these technologies by end-users in manufacturing and supply chain operations. For those of us in the dealership world, particularly in parts and service, this acceleration is something we can’t afford to ignore. Automation Doesn’t Replace Lift Trucks—It Changes the Environment They Operate In Let’s be clear: forklifts and other industrial trucks aren’t going anywhere. They remain the backbone of warehouse operations. What’s changing is the ecosystem around them. When autonomous mobile robots (AMRs) are moving pallets across zones and AI-driven WMS platforms are directing workflows in real-time, the role of lift trucks—and the expectations for their uptime—become even more mission-critical. That means the pressure on dealers to support uptime, supply the right parts, and deliver expert service is only increasing. Your customers who invest in automation aren’t looking to slow down. They need every component of their operation, including forklifts, to work flawlessly and integrate smoothly with the rest of their tech-enabled infrastructure. Downtime isn’t just inconvenient; it disrupts a carefully calibrated, digitally orchestrated supply chain. What This Means for the Aftermarket Side of the Business Here’s the part that matters most for aftermarket leaders: we are entering a new service era where speed, visibility, and specialization are becoming non-negotiable. Faster Fulfillment Is No Longer a Bonus—It’s a Baseline End-users now expect the same speed they’ve built into their automated warehouse systems to be reflected in the support they get from their dealership. This means the pressure is on your parts department to streamline inventory management and logistics. Stock outs will lose customers. Delays will be magnified. Dealers who invest in e-commerce platforms, real-time inventory visibility, and regional stocking strategies will gain a competitive edge. Technicians Must Be Trained to Support Smart Warehouses Service departments will need to evolve. Technicians are no longer just wrench-turners; they need to be systems thinkers who can troubleshoot not only forklifts but also understand how those trucks interact with other automation technologies. This includes knowledge of sensor systems, battery management software, telematics, and other related technologies. Dealerships should invest now in technician training that keeps pace with this expanding skill set. Parts Sales Are Becoming More Specialized As automation reshapes warehouse operations, the range of specialty attachments, sensors, batteries, and high-wear items associated with high-cycle, tech-integrated environments will expand. Dealers who understand this shift and proactively stock and promote these specialized parts will better serve their customers—and increase their margins. Predictive and Remote Maintenance Models Are Rising Automation isn’t just about moving goods faster—it’s also about predicting failure before it happens. Dealerships should expect an increase in customers inquiring about remote monitoring, telematics-based service models, and predictive maintenance options. Those that embrace these tools will not only reduce customer downtime but also create stickier, more long-term service relationships. The Dealer’s Role Is Becoming More Strategic As warehouses adopt complex systems, they’ll rely more heavily on trusted partners to help them optimize those systems. This positions the dealership not just as a vendor but as a strategic advisor. Offering insights, service planning, system integration advice, and even retrofit suggestions will become part of the aftermarket value proposition. Hiring and Training for the Next-Gen Aftermarket Team As automation, robotics, and AI continue to integrate into warehouse operations, one of the most critical shifts lift truck dealerships must make is in how they build and train their aftermarket teams. Traditional roles within the parts and service departments are being stretched—and in some cases redefined—to meet the technical demands of this evolving customer base. The Rise of the Specialized Parts Professional Historically, the parts counter has focused on sourcing and supplying components tied to forklifts and other off-highway industrial equipment. That job still exists and remains critical. But today’s warehouse customers are increasingly asking their dealers to support a broader range of systems—including conveyor belts, robotic shuttles, vertical lift modules (VLMs), automated storage and retrieval systems (AS/RS), and a growing number of smart sensor and control technologies. This shift raises the question: Can a single parts person effectively serve both markets? In many cases, the answer is no—or at least, not for long. Dealers are starting to recognize the value of segmenting their aftermarket staff by specialization. That might mean hiring a dedicated parts expert trained explicitly in supporting warehouse automation systems and industrial controls, separate from the traditional forklift parts team. These roles require familiarity with different product catalogs, supplier relationships, and service-level expectations. Selling a laser sensor for an AS/RS is a very different transaction than selling a mast chain for a 5,000 lb. forklift. Dealers who want to win business from warehouses adopting automation should consider building a dedicated parts desk—or at the very least, assigning a go-to person trained in automation system components, software integrations, and OEM-specific support structures. Service Technicians: Generalists vs. Specialists On the service side, the need for specialization is even more pronounced. Technicians trained in internal combustion forklifts or electric lift trucks are not automatically equipped to troubleshoot a malfunctioning conveyor PLC, reprogram a robotic cart, or calibrate

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How safe are your working conditions?

Tue, 20 May 2025 05:00:22 +0000

Tackling safety within a warehouse is a multi-layered endeavor. From equipment to building maintenance to the workers themselves, material handling operations present a variety of safety considerations. I had safety conversations with a few industry experts on various workplace safety aspects. This year, Forklift Safety Day by the Industrial Truck Association returns for its 12th year on Tuesday, June 10, in Washington, D.C. and online. “It’s open for everybody; in person at the National Press Club and online,” said Brian Feehan, president of ITA. He said that over 500 people joined the event online last year, and close to 100 attended in person. Registration is open until the day of the event, and those attending online will receive a link upon registration. Attendees in the past have encompassed a broad audience, including end users, private industry representatives, and academic and government officials, according to Feehan, who noted that forklift use touches nearly every segment of the economy. Feehan said this year’s primary message is that operator training is critical to maintaining workplace safety. “We embrace technology. But at the end of the day, when it comes to operator training, you’ve got to have hands-on training,” he said. According to Feehan, speakers will also focus on adopting best practices in specific environments and building a good safety culture. Forklift Safety Day falls by design during the National Safety Council’s Safety Month. Feehan said other countries have also adopted the idea of Safety Day and are promoting similar events worldwide. “It really has expanded in a global push,” he said. ITA recently released its publication, “Lifting America,” focusing on economic impact. ”In 2023, we’re at about $36.6 billion in annual contributions to GDP, up to 257,000 jobs in the industry, and $8.4 billion in taxes. All of the numbers across the board have really gone up,” Feehan said. For those who have not attended the safety day previously, Feehan encouraged checking it out. ”If you’ve thought about safety in your workplace, if you’re looking for some new ideas and fresh perspective, it’s a great opportunity to get a wealth of knowledge,” he said. At the upcoming National Forklift Safety Day, with a theme of “Every Move Matters,” some of the focus will be on how a multitude of small decisions can lead to a safer whole. “It’s a timely reminder that safety isn’t defined by a single action but a series of everyday decisions,” said Tom Lego, Toyota Material Handling Brand Ambassador, in an email. “At Toyota Material Handling, we believe promoting forklift safety starts with awareness and extends to the training, tools, and culture that reinforce safe practices at every level,” Lego said. According to Lego, Toyota has supported National Forklift Safety Day since its inception. “For over a decade, we’ve used this day to advocate for operator education, highlight emerging best practices, and reinforce the importance of making safety a shared responsibility,” he said. Lego said a safe work environment begins with consistency. “Safety isn’t just a checklist, it’s a culture,” he said, advising making safety part of the everyday routine of an operation. “Take the time to do thorough pre-operation checks. Speak up when you see something that doesn’t look right. Encourage peer-to-peer accountability and celebrate safe behaviors,” said Lego, adding that regular training and refreshers are also important. “Whether it’s buckling a seatbelt or scanning your surroundings, small actions can make a big impact,” he said. For more information on Forklift Safety Day, visit https://www.indtrk.org/national-forklift-safety-day Keeping out unwelcome guests With the high level of activity in material handling facilities, rodents, insects, and other living organisms can present concerns. Pests like rodents, cockroaches, flies, and others can carry diseases that can wreak havoc on employees and customers. According to Western Pest Services, they can also damage a building structure and increase the risk of fires. Nicolas Ellis, MS, PhD, is a board-certified and regional entomologist with the organization. Dr. Ellis works in various urban markets and environments. According to Dr. Ellis, food safety is a particularly important area, and Western Pest Services has an interface that companies can use to offer guidance and services for rodent and insect control. “Insects could be flies, which very readily enter through dock doors or pedestrian doors,” he said, adding that they can try to lurk or hide elsewhere. “When it comes to food supply and logistics, rodents are always a major concern. They are highly adaptable and choose to live around and among people,” Dr. Ellis said. “They will find ways to survive around us. They can be very difficult to control. On the other hand, insects can be brought in and are not even noticed. Beetles can hide and be inside things unknown to anybody.” Ellis added. The key is to be preventative, according to Dr. Ellis, who said visual inspections can be done by an organization’s quality control workers or by experts like those at Western Pest Services. ”That’s very successful,” he said of preventative inspections, noting that there is a certain consistency to pursuing safety in this vein. “When it comes to pest control, the pests don’t change,” said Dr. Ellis, who said that the industry literature and science behind pest control point to prevention as pivotal. “Our technicians can’t always be on site every time a truck comes up. One of the goals we have is to work with the quality measures on site.” This is helpful in empowering employees, according to Dr. Ellis. “The message resonates. They don’t feel helpless anymore,” he said. He noted that Western Pest Services develops programs to meet its customers’ criteria. “They’re always interested in knowing what they can do to optimize their pest control,” Dr. Ellis said. He said that when the logistics of a facility are complex, more challenges are presented. The more touchpoints there are for products, the more opportunities there are for pests, according to Dr. Ellis. And while many aspects of pest control remain static, shifts can be noted elsewhere. Asked about how climate change may impact conditions, Dr. Ellis stressed the evidence of new

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Artificial Intelligence and Robotics respond to warehousing challenges

Sun, 20 Apr 2025 05:00:15 +0000

Technology is constantly evolving, and warehouse needs are frequently changing. The changes mean that advancing technologies, such as artificial intelligence and robotics, are filling current gaps and improving efficiencies in some areas. This month, Material Handling Wholesaler examines some of the latest developments in AI and robotics for material handling. Robotic grasping San Francisco-based OSARO has recently announced that it is utilizing AI to address a specific and immediate need: robotic grasping. OSARO has secured a patent for “Computer-Automated Robot Grasp Depth Estimation,” an AI-driven grasp depth estimation without the need for specialized sensors, according to a company statement. “Instead of relying on pre-programmed grip strategies, OSARO’s robots learn to grasp new items by analyzing past successes and failures. This allows them to adapt to unstructured environments and handle difficult-to-grasp items, such as soft, reflective, or irregular objects,” the release said. The company stated that the technology is already deployed in its fulfillment centers. “Our kitting and bagging customers require robots that can accurately grasp a wide variety of challenging items,” said Gemma Ross, Vice President of Operations at OSARO, in the statement. “This patent enables robots to adapt dynamically, improving picking accuracy and efficiency,” she said. Ross stated in an interview with Material Handling Wholesaler that the key to the system lies in its automated learning component. She said, “It learns in real time and from itself.” The OSARO system integrates with automated storage and retrieval systems to offer tailored picking and placing based on customer needs, according to Ross. The company overall seeks to develop solutions to meet labor needs in the industry, according to Ross. “The reason we exist is we have a labor shortage. Automation is really the only solution,” she said. OSARO media relations representative Tim Cox said the company is focused on finding ways to migrate people away from “dangerous and mind-numbingly boring tasks.” Ross agreed. “Our objective is to free people from mundane and hazardous tasks,” she said. According to Ross, OSARO provides training to operators and maintenance teams to implement the robotic grasping system. The training is typically completed in a day. OSARO representatives stay on site after deployment until teams are comfortable with the technology and then offer 24/7 remote support. “Our system is quite intuitive in how it works,” she said. One of OSARO’s customers currently uses the patented technology Zenni, which is an e-commerce operation for eyeglasses. “One of the main things for Zenni is really fast turnaround time,” said Ross, who said OSARO’s system has helped the company meet needs for speed and accuracy. “We’ve done a huge reduction in quality errors for them,” said Ross, who said OSARO technology helped the company in alleviating labor needs as well as increasing quality. In the industry overall, OSARO leaders see a need for the company’s products and services. “While the amount of labor is going down, the amount of things people are buying online is still going up. There is a lot more potential to go forward,” said Ross, who said it is gratifying to speak with people on the job who love working with the robots and who share how the technology has improved their working experience. “It always feels really good when I get to go on site and I get to see the operators working with this system,” she said. “These are people who already have the job, and now they just like the job better.” Partnerships and trends At Dematic, company leaders recently presented at ProMat 2025 on how the company’s technology can enhance operational efficiency, scalability, and adaptability in the evolving supply chain landscape, according to a company statement. Dematic bills itself as “a global leader in supply chain automation solutions featuring advanced technologies and software empowering the future of commerce for its customers in manufacturing, warehousing, and distribution.” Brett Webster, director of product management, was one of the presenters. “Amid today’s changing commerce ecosystem, such as high consumer expectations and increased complexity, it’s critical to invest in technologies that drive operational efficiency,” he said in an email interview. He said the discussion around his presentation would include ways to integrate AI within and beyond the warehouse. “For example, predictive maintenance and vision AI are two technologies that are helping optimize warehouse operations,” Webster said. “Once the product leaves the facility, AI can help with inventory management, order allocation, dynamic dock assignments, and more.” Earlier this year, Dematic’s parent company, the KION Group, announced a new collaboration with NVIDIA and Accenture. According to Webster, the partnership will help move toward a future of fully autonomous warehouses. “We’re excited about the innovation this will bring to our customers’ operations,” he said, noting that the collaboration of the companies’ technologies “will leverage AI to develop realistic modeling simulations, real-time analysis, and process and flow optimizations.” The partnership includes Dematic’s digital twin software, Accenture’s technology, and NVIDIA’s Omniverse ™. Webster said artificial intelligence has had a “profound” impact on warehouses in the past few years. “I’m confident that this trend will continue,” he said. “The biggest opportunity I’m seeing right now is about the role of data on supply chain operations. Studies show that autonomous, intelligent supply chains are only going to grow over the next few years, and AI is going to be a big part of that.” With the correct data, it offers an opportunity to optimize operations, identify risks and adapt to unexpected peaks in demand, according to Webster. The challenge, however, is ensuring the data collected is high quality. “If you’re feeding your software bad data, you’re going to get bad insights,” said Webster, who said flexibility within automation will also be key. “The large, fixed systems of the past make it difficult to adjust quickly to fluctuations in demand, unforeseen weather occurrences, or geopolitical events, so flexible automation will be paramount,” he said. Webster said another recent trend is the use of twin digital models to integrate AI to generate real-time simulations. “Companies will be able to explore various layouts before construction, run predictive scenarios, and validate control systems

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Battery Technology is Expanding and Evolving

Mon, 20 Jan 2025 06:00:16 +0000

Powering equipment is a key component of any material handling organization, and batteries’ role in the industry continues to evolve. At Flux Power, Jeff Mason said electric forklift sales continue to grow about 10 percent annually. ” We’re seeing a big growth in the electric forklifts and equipment,” said Mason, vice president of operations at Flux Power. “We play a pivotal role by being a lithium battery supplier,” said Mason, adding that the company can provide battery power to a range of electric material handling equipment, like electric pallet jacks, forklifts, and more. ” We also have batteries that go into small AGVs and other robotic equipment,” he said. ” That market is growing rapidly as people are looking toward automation.” According to Mason, the automation trend and associated battery power for electric equipment will likely continue to grow due to labor challenges. He noted that labor needs are evolving, and as technology advances, workers with technical training are pivotal. “What we manufacture is a technical product. Every battery has a small computer on board,” said Mason, who noted Flux Power offers package telemetry with its products, allowing for a lot of insight into battery data. “We can now monitor energy usage and safety,” he said. “We read our battery management system for our batteries and report it to the Cloud. ” More customers are focused on monitoring things like their carbon reduction footprint,” said Mason, who said the need by customers to glean such information fits with Flux Power’s approach of being an “energy solutions partner.” According to Mason, Flux Power is working on a new version of its Sky EMS this year, a telemetry program that will integrate AI to provide predictable and preventative maintenance. What has remained consistent in the industry is the ROI model when it comes to investing in battery power. For businesses running one shift a day, lead acid battery power likely still makes sense, Mason said. Smaller mom-and-pop style operations “will do just fine on lead acid,” he said. “Unless they are looking for green solutions.” Flux Power’s battery customers typically operate 24/7, according to Mason. “Although we do have some smaller manufacturers running two shifts that see the value in it,” he added. As to charging technology, Mason said wireless charging is slowly growing. He said that it plays an especially useful role in autonomous vehicles. Overall, the opportunity charging lithium offers is a value for companies, according to Mason. As a company, Flux Power has built a stronghold in the airport industry as ground support equipment is moving toward electric options, Mason said. “It’s an opportunity for us to be a leader in providing technical education,” he said. Mason said Flux Power constantly evaluates new chemistries available in the industry and stressed that the business has never lost a keystone customer. ’We really value partnership,” he said. According to Robin Schneider, director of marketing, another battery provider, Green Cubes, has surpassed supplying 10,000 batteries in the material handling market. “That represents 300 megawatt hours,” she said. Schneider said that while “things are humming along in traditional electric forklift space,” one of the exciting developments at Green Cubes is the venture into adjacent spaces, like ARMs and AGVs. Schneider said making industry-wide predictions is difficult in the post-Covid space. “There are a lot of factors that are introducing uncertainty,” she said. Schneider noted that truck lead times in 2022 had gone up to almost two years. “People placed a lot of orders. Now the whole industry is working through a backlog,” she said. Schneider agreed with Mason that lead acid batteries are still the most common choice in the industry. But within the battery space, “lithium-ion is the sort of de facto standard,” she said. For those now considering battery power, Schneider said the focus tends to be less on value propositions and more on whether the supplier will have adequate service available. Questions tend to revolve around the quality of production processes and the support available. These considerations go hand in hand with the increased sophistication of the customer base, said Schneider, who said the industry overall is more comfortable with the concept of battery power. Green Cubes introduced the Lithium Safe Flex Plus line in advance of MODEX last year, and Schneider said the company will feature the product line again this year. “It’s based on a modular design that makes servicing batteries easier and more reliable. If one modular goes down, the battery can be operated until it can be replaced,” she said. The line also has a UL listing for safety, which Schneider said has been of interest to consumers. “The need for UL is becoming a very large topic of conversation within material handling and the lift truck community,” she said. Bluewater Battery Logistics helps its customers with compliant and safe redistribution of healthy battery modules and cells, both in excess new and used, for second-life applications, according to Ben Firestone, CEO. ” Bluewater also provides recycling services, including safe, compliant, and transparent disposal of batteries at the end of their useful life, damaged or defective battery packs,” he said. Firestone noted that lithium battery manufacturing capacity worldwide grew from 150 gigawatt-hours in 2019 to 600 in 2023 and is projected to reach over 4.5 terawatt-hours by 2030. He said Bluewater’s services assist customers with two key challenges related to the rapid development of the lithium segment: supply chain inefficiencies and safety issues. As 2025 proceeds, Firestone said the maturing second-life battery market will continue to grow in volume and complexity. “Companies are looking for ways to preserve the value of their retired batteries that can’t be used in their original applications,” he said. “As safety regulations align with advancements in lithium battery technology, we see a growing demand for customized battery logistic services to help companies navigate the state, federal, and international rules of lithium battery transportation and recycling,” Firestone said. An increasing number of returned batteries ready for recycling creates a need for collecting, packaging, and shipping retired batteries from multiple dealer and user locations,

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TRUMP mandate. How will it affect your dealership?

Fri, 20 Dec 2024 06:00:55 +0000

Many of you probably had your 2025 plan in place before the election. If I had to guess, there is about a 50/50 split between those expecting higher taxes and regulation and those looking for lower taxes and less regulation. It seems like 50% got it right to some extent. Not bad. Either way, it is time to zero in on planning for 25. This will not be easy because your options to improve your business are numerous and complicated, and in most cases, they require a budget line item you have not planned for up until now. Not only do you have to study all of your options to ascertain their pros and cons, but you also have to be able to convey how these options benefit customers. This is not easy because 2025 is upon us, whether you are ready or not. Hopefully, many of you hold frequent management meetings, 20-group meetings, or association meetings to help you define your options for 2025 and beyond. One would also hope that OEMs are taking the lead to assist in making the right decisions compared to your competitive brands. In short, there is much to consider if you hope to produce a profitable year. Let me remind you about that book I mentioned recently, NOT HOW- BUT WHO. If you ever thought you needed additional help navigating this business puzzle, now is the time to invite some experts to discuss your options and provide suggested avenues for success. The point here is YOU DO NOT HAVE TWELVE MONTHS TO MAKE DECISIONS. It would be best if you had a reasonable plan NOW. Here is a list of topics and issues you need to get a handle on: TAX CUTS DEREGULATION TRADE POLICIES INFRASTRUCTURE INVESTMENT ENERGY POLICIES INTEREST RATES NEW LABOR LAWS INFLATION CRYPTO REQUIREMENTS DIGITAL AND AI REQUIREMENTS ENERGY COSTS AND SOURCES NEW MANUFACTURERS, DISTRIBUTORS, STORAGE, AND ASSEMBLY OPERATIONS COMING TO US. If you plan to make profitable moves at a reasonable cost, you could spend a week on each one of these topics. Let us get one thing straight …. INFLATION IS HERE TO STAY! This means interest rates may not go down to the point where customers want to buy and finance more equipment. I was listening to Paul Tudor Jones on Squawk Box on October 22, 2024. After a lengthy investment and economic discussion, his final comment was that ALL ROADS LEAD TO HIGHER INFLATION. Many of the financial newsletters I read take the same position. Let’s dive into these issues further. TAXES Hopefully, the 2017 bill will be extended. That is good regarding rates, deductions, and estate planning. Let’s hope we generate more taxable income if we lower corporate rates. I suggest a review of your state and local tax picture. A lot of states made changes. DEREGULATION There is little doubt deregulation will roll back environmental regulations, including emissions standards for heavy-duty vehicles. Any change they can make could increase flexibility and reduce company operating costs. I recently saw a chart regarding one of Musk’s companies; at least 18 government offices told him what to do. TRADE POLICIES Tariffs are the main issue, and shoring is another. This could affect supply chains, increase the cost of foreign goods, and expand business opportunities. I trust Trump will use the tariff stick only as necessary to make his point. You should spend a good amount of your planning time on this. And I would be careful not to invest in front-loading inventory. INFRASTRUCTURE INVESTMENT Trump promised to prioritize infrastructure improvements, which means more manufacturing and warehouse opportunities. Warehouse systems should be a high priority in any event. ENERGY POLICIES Expect the green regs to be rolled back and oil production to increase. Could this impact on the methods used to propel your lift trucks? You may want to review which key customers may be affected by these changes. INTEREST RATES Expect rates to continue to get cut …until there is a reason not to. The prime rate with a 3% Treasury yield will be about 6%. Mortgage rates are around 6% +/-. Economic conditions, including inflation and GDP growth, will influence interest rates. Right now, interest rates seem to be quite volatile. Contact your banks and equipment financing sources to determine what they will charge for new and used equipment purchases. Do not overleverage if you can avoid it. LABOR LAWS Immigration enforcement raids will return. Agency chairs will be replaced. Expect repeals of some of the Biden regulations. There are the new overtime rules, the noncompete contract change, and the independent contractor rules. I would call your independent payroll service and inquire about the changes as they see them and ask for assurance that they can handle them as part of their service. Also, I expect DEI requirements to be toned down. INFLATION We could spend a week discussing this topic. This is the Elephant in the room. The national debt will require higher rates to finance. There is also the employment rate, considering Boomer retirements and those leaving the workforce. What the government has been doing to tone things down is printing more money, which will generate higher inflation. Hopefully, we can cut the cost of government and, at the same time, put AI and other digital means to make our business activity more efficient and productive, thereby lowering costs passed on to consumers. This will not happen overnight, but we need to get on a path to cutting deficit spending, which will increase the dollar’s value and, in turn, help with the inflation problem. And reshoring, of course, will increase GDP, generating more tax revenue to reduce deficit spending. I do expect Elon Musk and Vivek Ramaswamy to suggest many substantial cuts. They will use an AI process to review every aspect of government. This will be a brutal exercise to reduce unnecessary spending. Hopefully, we will find a way to start the process by producing a balanced budget. CRYPTO REQUIREMENTS Like

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Manufacturers and Dealers need to embrace a new set of opportunities in 2025

Wed, 20 Nov 2024 06:00:18 +0000

As another December has arrived and 2024 winds down, you may be reflecting on a year filled with growth, innovation, and evolving challenges that you are facing in the industry and your local market. The close of one year offers a unique opportunity to assess the past and set sights on the future. Looking ahead to 2025, it’s clear that the industry will continue to face rapid changes, from advancements in technology to shifts in customer expectations. With these changes comes a new set of opportunities and challenges, and both OEMs and dealers are poised to navigate them through stronger partnerships, strategic innovations, and a renewed focus on sustainability and digital transformation. As we do each year in the December edition, we explore the critical dynamics of the manufacturer-dealer relationship. Let’s discuss how dealers can leverage their manufacturers’ strengths to drive revenue growth and foster innovation for the year ahead. This partnership, which was once primarily about sales and distribution, has evolved to encompass a broader, more strategic alliance that enables both OEMs and dealers to thrive in an increasingly complex marketplace. At its core, the OEM-dealer relationship is a mutually beneficial arrangement. OEMs depend on their dealer networks not only to sell products but also to provide essential after-sales services like parts, maintenance, and technical support. Dealers, in turn, rely on OEMs for product innovation, training, and support to meet the changing needs of their local customer base. This dynamic ensures that end-users receive the high-quality service and equipment necessary to keep their operations running smoothly. However, the nature of this relationship is changing. Technological advancements, shifts in customer expectations, and evolving market dynamics are pushing both OEMs and dealers to adopt new strategies and approaches. This includes deeper collaboration on everything from financing and warranty processes to addressing safety concerns and driving innovation in product development. Key Trends Shaping the OEM-Dealer Relationship As we look ahead to 2024 and beyond, several key trends are shaping the future of the OEM-dealer relationship. Understanding these trends is critical for both parties to stay competitive and continue providing value to their customers. New Truck Inventory and Rental Utilization Lift truck dealers face a significant cash flow challenge when OEMs demand new truck purchases for their rental fleets amid declining rental demand and rising interest rates on existing inventory. Increased depreciation expenses further aggravate these financial pressures, negatively impacting dealer profitability. As new equipment prices begin to fall, the dealer-OEM relationship becomes delicate. OEMs aim to keep production lines active, but dealers must balance managing high inventory costs with profitability. This highlights the fine line between keeping a strong partnership while facing market challenges and fluctuating demand. Increased Focus on E-Commerce and Digital Platforms I recently presented the importance of offering customers the option to purchase your products online at MHEDA’s Parts & Service Management Conference this past September. I discussed how dealerships can leverage e-commerce to enhance customer satisfaction and streamline the ordering process. Customers today expect a seamless, user-friendly experience when researching, purchasing, and maintaining their equipment. This shift toward digital solutions transforms the traditional OEM-dealer model, forcing both parties to invest in new technologies that enhance the customer experience. Dealers are increasingly adopting e-commerce platforms to streamline parts sales and service scheduling. Meanwhile, OEMs are developing digital tools that allow dealers to offer more personalized support to their customers. The result is a more efficient, customer-centric approach that meets the demands of a digital-first marketplace. The balance between the OEM and the dealer will be for those OEMs who already sell their products online and credit the dealer for the sale. How do those OEMs align with their dealers who already have their own stand-alone e-commerce platform? Data-Driven Decision Making Data is becoming an increasingly critical asset in the material handling industry, but dealers need better access to actionable insights from their OEMs to make informed, data-driven decisions. As the industry evolves, it’s not just about having data about having the right data in the hands of dealers to enhance decision-making and improve customer service. Having access to data on customer preferences and buying trends allows dealers to tailor their products and services more precisely, providing a personalized experience that fosters stronger customer relationships. Collaboration between OEMs and dealers, built on sharing robust, actionable data, is key to unlocking new revenue streams and staying ahead of customer needs. Sustainability and Environmental Responsibility Sustainability is no longer just a buzzword; it’s a driving force in the material handling industry. OEMs and dealers are pressured to reduce their environmental impact and adopt more sustainable practices. This includes everything from developing energy-efficient equipment to implementing eco-friendly service and maintenance practices. OEMs are increasingly designing products with sustainability in mind. Dealers are crucial in promoting these products and educating customers on the environmental and financial benefits of choosing more sustainable options. For example, by helping customers understand how the shift to electric can optimize fleet performance and sustainability, dealers are key drivers in accelerating the adoption of cleaner, more efficient technologies in the marketplace. Aftermarket Support Aftermarket support is becoming a more critical component of the OEM-dealer relationship. As equipment lifecycles lengthen and customers demand more reliable and cost-effective solutions, dealers are being called upon to provide a higher level of service and support throughout the equipment’s life. This trend drives OEMs to invest more in training and support for their dealer networks. By equipping dealers with the tools and knowledge they need to offer comprehensive aftermarket services, OEMs can ensure that their products continue to perform at a high level long after the initial sale. Rise of Direct Consumer Business Strategic partnerships between OEMs and dealers are becoming increasingly important, driven by the rising demand for direct-to-consumer (D2C) business. As consumers expect more direct and personalized interactions with manufacturers, OEMs, and dealers must collaborate closely to meet these demands. Traditionally, OEMs relied on their dealer networks for customer interactions, but the shift to D2C models is changing the landscape. Customers now expect direct engagement

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Advancing with automation and AI

Sun, 20 Oct 2024 05:00:56 +0000

In today’s material handling environment, warehouses are driven by the need for speed and accuracy. At the same time, finding the right labor force remains challenging for some operations. Some are looking for automation and artificial intelligence (AI) advancements to fill those gaps and meet expectations. Increased demand for automation Brett Webster, director of product management at Dematic, noted that AI has already been transformative in many settings, including automation. “The industry continues to face challenges, such as ongoing labor shortages and disruptions caused by global events,” Webster said. “In an era where supply chain resilience is no longer ‘nice to have’ but a requirement for success, increased visibility and connection are paramount,” Webster said. According to the company website, Dematic is a “global leader in innovative, integrated supply chain automation technologies, software, and services. ” Leaders at Dematic anticipate supply chains will continue to become more autonomous, aided in part by the growth of AI. Webster noted a recent report by MHI and Deloitte finding that 87 percent of companies believe autonomous, connected intelligent supply chains will be standard by 2027. “As a result, companies are increasingly investing in AI technology,” Webster said. Currently, Webster said AI’s largest impact is on enhancing algorithms for decision-making software and optimizing operations. “However, as AI continues to grow over the coming years, access to and proper use of data will become critical. Real-time data analysis allows AI systems to identify inefficiencies, streamline operations, and automate tasks, helping the cost of and need for labor amongst industry-wide shortages,” Webster said. AI can also ensure algorithms reduce travel times and increase output by optimizing inventory placement, and help provide predictions and adjustments for fluctuations in customer demand, according to Webster. “We believe building a holistic ecosystem of solutions, software, and data, powered by AI, will drive the development of autonomous supply chains the industry has long anticipated,” Webster said. Solutions for e-commerce According to Mike Oren, SVP of sales for the Americas for Dematic, the demand for automation has increased in the years following COVID. He said the demand is driven by “evolving consumer expectations, ranging from same or next-day delivery, to sustainable business practices to omnichannel shopping.” “This shift is further fueled by ongoing labor shortages and the rapid growth of e-commerce, putting significant pressure on businesses to improve efficiency,” Oren said. The drive is resulting in a turn to automated solutions like Automated Guided Vehicles, Autonomous Mobile Robots, mixed-case fulfillment, and goods-to-person picking, according to Oren. “Fluctuations in demand have become the norm, and flexible automation can be scaled to help our customers adapt to their shifting needs,” he said, adding that software is the brains behind all of the technological solutions. “Software provides the data and visibility necessary to make insightful decisions while maximizing performance and speeding up fulfillment,” Oren said. He added that the companies best positioned to be competitive in the coming years will be those providing comprehensive hardware, software, and services. According to Kevin Heath, director of global robotics, Dematic provides up-to-date solutions for the world of automation through the work of its Modernizations & Upgrades team. Heath said the team helps customers improve the effectiveness of their operations by identifying and incorporating new automation, controls, and software that optimizes performance. “We also identify the best solutions for our customers to address those changes,” he said, noting that while Autonomous Mobile Robots have been in the market for some time, Bin-to-Picker AMRs in particular are “ideally suited” for the growth of e-commerce. Heath noted that when 3PL provider Radial outgrew its manual distribution center in the Netherlands due to increased e-commerce demand, Dematic helped with the automation of a new facility. “This included adding almost 300 AMRs to their operations, including 10 Bin-to-Picker stations. Since the facility opened in 2023, picking and packing performance has improved significantly, and the error rate is vastly reduced,” Heath said. He added that for companies with scarce resources, Bin-to-Picker AMRs can operate without human intervention and with little to no fixed automation. “Bin-to-Picker AMRs are cost-efficient, easily scalable, and equipped with software to improve efficiency and reduce order fulfillment times,” said Heath, who said Dematic customers utilizing Bin-to-Picker AMRs report more than 99 percent order accuracy and an ROI in as few as 1.5 years. Dematic automated systems can also be adapted to different warehouse environments, which Heath said makes them “an ideal solution” for industries ranging from retail to third-party logistics. “Our automation systems are modular, meaning they can be upgraded and expanded as new technologies emerge or business needs evolve,” Heath added. Meeting automation needs Some companies are building advanced solutions via new collaborations. In September, Kivnon announced the formation of a strategic partnership with Macrovey. According to a press release, Kivnon is a leading producer of mobile robots, including automated guided vehicles and autonomous mobile robots. Kivnon specializes in solutions that optimize logistics and internal transport processes across industries. The statement said Macrovey is an industry leader in industrial equipment, performing electrical installations of complex motor and process controls for a variety of material handling systems. The new collaboration, which is now in effect, will “enhance both companies’ market presence and operational capabilities across North America,” the release said. “With this partnership, Kivnon aims to streamline the sales and installation processes for its mobile robots,” the release said. “At the same time, Macrovey will gain access to Kivnon’s innovative product line, allowing them to expand their offerings.” Jaume Martinez, managing director of Kivnon USA, said the partnership will ensure that customers receive top-tier service and support. “Together, we will set new standards in the automation industry, delivering tailored solutions that meet the specific needs of our clients,” said Martinez in a statement. In an email to Material Handling Wholesaler, Martinez said Kivnon’s automated guided vehicles and autonomous mobile robots help automate material handling tasks and integrate seamlessly with higher-level systems. “One of our key strengths is the ability to connect our robots to external fleet management systems, enabling businesses

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Saluting Women in Material Handling: Champions of Industry Innovation and Excellence

Fri, 20 Sep 2024 05:00:47 +0000

As the material handling industry evolves and grows, so do the ranks of professionals within the business. This month, Material Handling Wholesaler spotlights some women’s work in the material handling industry. Those who participated in the article talked about their history in the business, shared thoughts on where the industry is today, and discussed changes they envision in the near future. Jeannette Walker Walker, currently the CEO of MHEDA got her start in material handling in 2001 thanks to a conveniently located business. Intrupa manufactured parts for forklifts and was just a mile from her home in suburban Chicago. After passing the operation on a longer commute, Walker decided to apply. When she was offered a job as an assistant to the CEO, Walker decided to go for it. “I took it and worked my way up,” she said. TVH acquired the business in 2006, and Walker stepped in to implement marketing during the acquisition and grew into other roles from there. Following her experience in leadership at TVH, Walker took on the role with MHEDA. She worked with former CEO Liz Richards for six months before taking the reins in July. “She did anything and everything she could,” said Walker of Richards’ help with the leadership transition. According to its website, MHEDA is the Material Handling Equipment Distributors Association, a non-profit trade association dedicated to serving all segments of the material handling business community. As to the current economy, Walker said the feeling for 2025 is “cautiously optimistic.” At a recent meeting of MHEDA’s board of directors, Walker identified several impactful trends. “The economy is number one,” she said, adding that the market is normalizing, although situations vary by region. “We talked a lot about consolidation in the market and what that means,” said Walker of the leadership discussion. Automation and AI continue to be among top-of-mind for MHEDA members, particularly with a universal talent gap in the industry, according to Walker, who said technology is helping fill the need in some spaces. She reflected that career paths for women in material handling vary. Still, the industry seems to be filled with professionals who are open to sharing information and through that, helping others succeed. According to Walker, there continues to be a growing number of women taking up leadership roles in the material handling industry. “I think it’s evolving very rapidly,” she said. MHEDA will also host a “Women in Industry” conference this fall. The event will be held November 6 and 7 in Rosemont, Ill., and registration is still open, according to Walker. Walker says the session will include topics important to women in the business. “There is also a leadership focus,” she said. Registration information can be found online at www.mheda.org. Candi N. Powers As a teenager, Candi Powers aspired to become a doctor. In pursuit of that dream, she traveled to Nashville, TN, enrolled in medical courses, and became an intern. In the meantime, her father, Henry M. Powers, and wife, Darlene Powers, were busy building a business. That business, focusing on developing and manufacturing new products for the materials handling industry, led him to develop a vertical lift that would propel his company’s success in the industry. To grow his new business into the innovative powerhouse now known as Custom Industrial Products (CIP), Henry Powers surrounded himself with the people he trusted most…his family. Candi Powers began her career with CIP advancing the materials handling cart division where she managed clients in hospitality, a critical industry that was the first to apply vertical lifts for improving operational efficiency and safety. She worked long and hard, eventually earning the crucial position of Material Control Manager. As Ms. Power’s responsibilities grew, so did her passion for solving unmet needs in materials handling. Besides the hospitality industry, CIP vertical lift systems began to make a difference in warehousing and distribution, government, automotive, retail, education, aerospace, and more. There were so many applications that CIP’s line of vertical lifts expanded to accommodate and adapt to a variety of space requirements, load and weight needs, height restrictions, safety concerns, workflow integrations, and environmental considerations. “I am one of the lucky ones who found a place where I could thrive and help others,” states Ms. Powers. “So instead of helping patients with their health, I’m helping people with the health of their business and with their workers’ safety.” Candi Powers became President of CIP in 2021 after helping the company weather the pandemic. In 2023, Henry Powers passed away, leaving a legacy of innovation and excellence in industrial duty manufacturing as well as a corporate headquarters in Melbourne, FL, with 50 employees and 126,000 square feet of space for fabrication, welding, powder coating, engineering, administrative, and storage. Candi Powers took the reins as CEO to continue and expand her father’s legacy. Henry Powers was a masterful mentor. In addition to the deep work values and ethics he instilled in Candi Powers as a child, he worked side by side with her at CIP, teaching Ms. Powers manufacturing insights, design and engineering, sales and marketing, and managing people. As Ms. Powers sees it, people are the most important part. “Dad really cared for all those around him,” recalls Candi Powers. “He was accessible and everyone’s go-to person for help. His example inspired me to listen and lead.” Today, Candi Powers works side-by-side with CIP President (and brother) Chris Powers to usher in the next generation of CIP products and solutions. In 2024, they launched CIP Lifts as Custom Industrial Products’ flagship product line with new vertical lifts that are expanding the envelope and applications of what a VRC or materials handling lift can do. “We are continuously improving every aspect of our operation from customer service and design to production turnaround and quality superiority,” states Ms. Powers. “The minute a call comes in, our multi-interdisciplinary team is assessing and addressing customer needs before customizing a solution that only CIP can provide…faster…smarter…better.” Megan Brune Brune got her start in material handling

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As the rental, financial and technology markets change, is your dealership?

Tue, 20 Aug 2024 05:00:38 +0000

Much is going on that impacts OEMs, Equipment Dealers, Financing Sources, and Customers. Inflation, supply chain disruptions, and geopolitical tension lead to cautious customer behavior, thus creating new levels of management manipulation to keep the ships upright. In addition to these significant disruptive sources, you add the risk associated with technology decisions, not only for your company but also for a high percentage of your customer base familiar with emerging technologies. Here are just a few concerns dealers have on their minds: Revenue per employee Tariffs Tax opportunities Overtime Regs On-shoring Near-shoring AI and IT for manufacturers AI and IT for warehouse and distribution centers Having products and services to fit the needs of manufacturers and distributors Finding other programs and methods to increase sales. Providing consulting services to customers. Emerging Technology Electrification Hydrogen cells Inventory changes and management. Supply chain disruption Collateral value of equipment Planning for rental income to represent a higher % of sales. Resale value uncertainty Bank and Financial source education Programs to find and keep personnel Cybersecurity threats Supply chain management Need for more dealer consolidation Quarterly cash flow requirements Cap-X for AI, IT, and customer consulting And I am sure you are also trying to hire to fill talent needs throughout your organization. And how about those equipment prices? Used values are falling, leaving you with the problem of having high-priced pandemic units now dropping in price and a collateral problem with the banks. And let us not forget the new elephant in the room….AI. Making an AI decision can be high risk if you do not know what you are doing, so MHW is premiering a new column next month to help with the process. And as far as your sales silo is concerned, you will be adding new accounts to track new types of equipment, including automated guided vehicles, and different types of fuel sources being offered, such as electric trucks using lithium-ion batteries as well as hydrogen fuel cells. We can all agree that customers will look to YOU to provide insight into what type of unit best fits their needs. I have heard hydrogen is growing its market share because it is cheaper and avoids the “green costs” associated with mining and disposing of lithium. All these issues have produced some interesting discussions with bankers. CEO and shareholder anxiety must be the name of the game regarding the balance of 2024. As I have said in the past, if you are not ready or able to roll with the punches and make the investments necessary to stay in the game, it may be time to investigate transitioning out of the industry. Consolidation is taking place in all types of markets, with equipment dealers and rental companies appearing in every business publication I read. One final option before pulling the plug is to find and hire a manager prepared to deal with the issues at hand. On the FINANCING side of the business, banks and finance companies are having their own problems because many customers are experiencing cash flow challenges, resulting in payment delays to either the bank or dealer. Credit risks are also increasing because of economic uncertainty affecting dealers and customers. Having numerous financing sources available is a must for today’s markets. Financing sources are asked to finance unfamiliar new types of equipment for both the dealer and customers. Lenders must contend with the value of what is currently on their balance sheet instead of financing new equipment types with which they have zero history of working. Consequently, dealers should prepare examples of the expected values of the equipment over at least a five-year period. Dealers should prepare an annual equipment appraisal covering used equipment inventory and rental units. I also suggest you track the sales of your used equipment and compare the sales price to what appears in the valuation report. If you can show the bank that you are selling used equipment for more than what appears in the valuation report, the bank will rely more on the report when considering your credit requests. Remember that many buyers are waiting for interest rates to be reduced before purchasing new or used equipment. If so, sales will be deferred, reducing the cash flow to finance the business. I see that rental activity is increasing rather than purchasing units, eventually impacting dealer cash flow and borrowing capacity. Dealers will have little say in how all this works out. Changes in emerging technology and advancements in warehouse automation and shop floors will dictate what lift truck dealers must provide. The trick will be eliminating the old, bringing in the new, and becoming more efficient using the latest technology and AI (if it works for you). Cash flow schedules incorporating these changes should be adjusted and updated quarterly to stay ahead of the game—notice I said cash flow schedules, not budgeting worksheets. In the end, the revenue silos will produce less profits and cash flow, and dealers need to be prepared to deal with this situation. On the other hand, you may be selling more technical equipment and systems that make up for reductions in other sale categories. Change is coming faster than you think. Be prepared to produce a company ready to provide products and services and consulting to the ever-changing manufacturing and distribution world you will be living in. About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993. E-mail editorial@mhwmag.com to contact Garry.

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Post-it note your way to achievement

Sat, 20 Jul 2024 05:00:26 +0000

People are not afraid of achieving success, they just don’t know how. Here’s one element that will put you on the path. You have several goals you want to achieve, but they are not written down. They just pop up in your head every once in a while, only to be buried in a black hole of procrastination, excuses, and guilt. Take heart, I found a way to beat the system. Post-it Notes. Want to achieve your goals? Here’s a tested and proven method. You already have all the tools necessary to achieve success: Post-it Notes Bathroom mirror Bedroom mirror Felt tip pen Write down big onesOn 3×3 yellow Post-it notes write down your three prime goals in short words. (Get funding for business; new car Toyota; New Client Bank in Milwaukee) Write down small onesUse three more notes and write down your three secondary goals in short words. (Read a book from Dale Carnegie; Organize desk; Build new closet) Put them upPost them on your bathroom mirror. Where you can see them twice a dayYou are forced to look at them every morning and evening. Keep looking until you actYou will look at them until you are sick of looking at them and begin to accomplish them. Seeing the note there every day makes you think about acting on it every day.Once you start acting, the note triggers a “What do I have to do today to keep the achievement on target?” The note forces you to act. To achieve your goal. Revisit your success every day.After the goal is achieved post it on the bedroom mirror so you can see your success every time you look in that mirror. The program is simple. The program works. The results will change your attitude. The results will change your life. The results will change your outlook about your capability of success achievement. You will look at those Post-it Notes until you are sick of looking at them and begin to accomplish them. To Achieve Goals You Must Do the Following… Make a decision as to which goals you specifically want to achieve. Make a personal commitment to yourself to do whatever is necessary to achieve your goals. Be relentless. Don’t quit in the pursuit of your achievement. Do a little toward your goal every day. Write down how much (or how little) you must do each day in order to achieve. Harness your personal power. Discipline yourself, and focus on your commitment. Enlist the help of others who will support you. Give up goal (smoke, drink, eat) Share with and seek the support of everyone you know. (Family, friends, coworkers). Go up goal (Better on the job, best salesman) Share only with family and friends to avoid on-the-job jealousies. You must get the support of others to achieve your goals. It’s easy to getsupport all you have to do is give Don’t be vulnerable to the negative influence of other people. Work on two of your goals every day, even if only for a short time. Visualize yourself doing the steps necessary to achieve your goal. Visualize yourself actually achieving your goal. Don’t let other people tell you…”You can’t.” Tell them how you will and ask for their support! By posting the goal in the bathroom you are consciously reminded of your goals several times a day. From there, your subconscious gets into the act – gnawing away at your soul until you are driven to take positive action. Achievement actions. At last, you can say the magic words. Scream them I DID IT! (Screaming positive things always feels wonderful.) Here comes the best part. Take the Post-it Note off the bathroom mirror and triumphantly post it on your bedroom mirror. Now, every day you get to look at your success. WOW. Not only does it feel great, but you can set the tone for a successful day, every day, first thing in the morning by looking at success, remembering how good it felt, and thinking about what it took to do it. Plus, it gets you motivated to keep achieving more. By the time you have your bedroom mirror full of achieved Post-it note goals, you’ll have enough money to go out and buy a bigger mirror and the house to put it in. Post-it. Post haste. About the Author: Jeffrey Gitomer is the author of twelve best-selling books including The Sales Bible, The Little Red Book of Selling, and The Little Gold Book of Yes! Attitude. His real-world ideas and content are also available as online courses at www.GitomerLearningAcademy.com. For information about training and seminars visit www.Gitomer.com or email Jeffrey at salesman@gitomer.com or call him at 704 333-1112.

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Dealers: It’s time to up your Aftermarket strategy, not overlook it

Thu, 20 Jun 2024 05:00:02 +0000

During my recent travels and meetings with industry colleagues, dealers, and OEMs, many discussions took place exploring the dynamics and progress of the first half of this calendar year. A significant takeaway from these discussions is while the intense competition for talented workforce and skilled labor continues to be a trend in our industry, there is also a notable influx of new talent stepping into crucial roles within these organizations. This influx of new talent is a perfect opportunity to delve into the topic of the lift truck dealership selling aftermarket products and services. The importance of efficient aftermarket services in our industry cannot be overstated. Your approach to after-sales operations should be viewed as a crucial strategy to enhance profitability and customer retention in your dealership. While the primary focus is often on equipment sales, dealerships must recognize that after-marketing can significantly boost the bottom line and strengthen customer relationships long after the initial transaction. After-marketing in the dealership is frequently overlooked, largely due to a common hesitation among salespeople to engage customers beyond the primary sale. This reluctance stems from a misconception that customers may perceive additional sales efforts as pushy or unwarranted. However, this approach leaves a significant amount of potential revenue on the table. After-marketing, when done correctly, is not about pressuring customers, but about enhancing their experience and providing them with value that complements their initial purchase. For this month’s edition, let us delve into the current trends, challenges, technological advancements, and sustainable practices that are shaping the future of aftermarket services in our industry. Trends and Challenges The aftermarket sector is seeing a dynamic shift, primarily driven by the growing need for rapid response services and advanced maintenance solutions. Lift truck dealerships are particularly feeling the pressure to meet increased expectations from their customers for quicker turnaround times and higher reliability. The rise of e-commerce has also escalated the demand for material handling equipment to be at peak operational efficiency, thereby increasing the reliance on effective aftermarket services that a dealership can provide. Implementing an effective after-marketing strategy is not without challenges. Training sales and service teams to adopt a customer-centric approach that emphasizes long-term relationship building over immediate sales is crucial. Supplier product availability issues continue to disrupt operations, impacting service timelines and costs. Additionally, there is a burgeoning gap in skilled labor, with many dealerships struggling to find and retain qualified technicians. Moreover, you must continuously evaluate and adapt your offerings to meet changing market conditions and customer expectations. Expanding Service and Parts Offerings Successful dealerships understand the importance of offering a comprehensive range of services and parts not only for forklifts but also for related equipment. By providing parts, service, and service agreements for non-forklift machinery such as Sweeper Scrubbers, Personnel Burden Carriers, and Mobile Elevating Work Platforms, dealerships can become a one-stop shop for their customers’ diverse equipment maintenance needs. This broader service offering allows dealerships to capitalize on their existing relationships, encouraging customers to consolidate their purchasing needs under one trusted provider. Keep in mind, that even if your dealership does not repair or service these types of equipment, your parts and sales teams can still offer and sell these types of replacement parts. Does your sales team know all of the products they have at their disposal from their supplier partners? Here’s how to effectively assess and address replacement parts needs for some of these non-forklift ancillary warehouse equipment types: Sweeper Scrubbers Key Parts: Brushes, filters, squeegees, and motors are crucial for the optimal performance of sweepers/scrubbers. These parts endure constant wear and require periodic replacements to maintain cleaning efficiency and prolong the lifespan of the machinery. Sales Approach: Create tailored maintenance packages that include periodic replacement of these parts. Offer volume discounts or bundled deals on consumables that need frequent replacement, encouraging customers to purchase for stocking on-hand inventory to ensure they always have critical parts on hand. Personnel Burden Carriers Key Parts: Pay attention to batteries, tires, and braking systems, which are essential for the reliable operation of these vehicles. Batteries, in particular, can degrade over time and require regular checks and replacements to maintain optimal performance. Sales Approach: Recommend regular battery tests and maintenance services. Propose tire and brake replacements as part of a comprehensive service check to enhance safety and vehicle responsiveness. Mobile Elevating Work Platforms (MEWPs) Key Parts: Focus on critical components such as hydraulic hoses, control panels, tires, and safety gear like guardrails and harness points. These parts are essential for the safe operation of MEWPs and often require regular inspection and replacement due to wear and tear or compliance with safety regulations. Sales Approach: Focus on emphasizing the benefits of compliance, such as enhanced safety, reduced liability, and improved operational efficiency, by providing tailored assessments, expert guidance, and ongoing support to help clients meet ANSI standards for their MEWPs. By being observant, asking the right questions, and understanding the operations of your customer’s facility, you can uncover numerous opportunities for additional parts and service sales. Be proactive and knowledgeable about the parts and service needs of the various equipment in your customer’s operation to ensure that they experience minimal operational disruption and maintain high levels of productivity and safety. This strategic approach not only enhances customer satisfaction but also positions your dealership as a reliable and essential partner in their operations. Technological Integration in After-Marketing Today, technology plays a pivotal role in optimizing after-marketing strategies. Many dealerships are now utilizing CRM (Customer Relationship Management) systems to track customer interactions across your dealership and tailor marketing efforts accordingly. These systems help dealerships understand customer needs better, predict when they might require additional services, and promptly respond with personalized offers. CRM accompanied by the digital transformation of technologies like Artificial Intelligence (AI), the Internet of Things (IoT) based telematics, and predictive analytics is revolutionizing aftermarket services. For instance, IoT telemetry solutions can enable real-time monitoring of equipment health, allowing dealerships to predict failures before they occur and schedule preemptive maintenance. Similarly, AI

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Safety on the job gets personal

Mon, 20 May 2024 05:00:35 +0000

In-person training, a deliberate hiring process, and ongoing safety conversations are a few of the ways some in the industry suggest maintaining a safe warehouse. To David Hoover, safety is a highly personal issue. Hoover, president of Forklift Training Systems, had a close perspective of about 10 workplace fatalities during his career. “I’ve seen what it does to families. I have seen people so badly injured they don’t live their lives right,” he said. “To me, it’s a personal thing.” Hoover does not think that regulations can be the only measure driving safety forward. He stressed that businesses themselves also need to continue to strive for improvements. And he worries that accidents will be more of a concern as production ramps up post-pandemic. “We’re not seeing a lot of accident trends come down. The more we work, the more people we kill and injure,” Hoover said. But there are steps organizations can take to build a culture of safety, Hoover said. He recently worked with a large Ohio facility where leadership was willing to shut down production lines and pull 300 to 400 people out of its 5,000-person staff at a time for hourly safety training sessions with Hoover. “It was a huge commitment. It was the right thing to do,” Hoover said. “We had tremendous success with that. It really opened the dialogue at the plant.” It is the kind of effort that yields results, according to Hoover, who said safety training during orientation is typically not specific enough to cover ongoing operations. Hoover’s company is now part of Fleet Team Inc., which works with Fortune 500 companies across the country, according to Doug Riddle, president. Fleet Team is a strategic, brand-independent consulting partner focused on empowering businesses to optimize their fleet management practices, according to the business website. This is accomplished through cutting-edge cost-saving initiatives, real-time data analytics, streamlined vendor management, and seamless facility-wide logistics, the site said. Riddle said the perspective at Fleet Team is that safety is driven by decisions at the corporate office, particularly with the leadership of environmental health and safety leaders. And one of the largest concerns driving safety trends lately has been the fluctuating labor force, according to Riddle. “The biggest thing we hear about is turnover in labor. It’s the biggest stumbling block,” he said, noting how turnover can make it a challenge to keep OSHA-certified truck drivers on staff. Riddle said his company advises keeping up-to-date equipment and certification lists to help ensure better safety. Hoover recommends working with Human Resources to make sure workers can safely operate equipment. “I’m finding a disconnect between HR and safety within organizations,” said Hoover, noting that he has looked into some online equipment safety certification programs and found major concerns. In one case, Hoover said he failed all the written tests and yet still was granted certification. “They sent a (certification) card that looked better than my driver’s license,” he said. To prevent workers with not enough training or the correct certifications, Hoover said careful steps should be taken in the hiring process. “What I tell companies is, when you’re hiring the people ask the right questions,” he said. Hoover noted an example of an interviewee who claimed ten years of forklift driving experience but had actually only driven a forklift for a few days ten years earlier. “This guy should not be driving,” said Hoover, who recommended having job candidates show how well they can operate equipment in the interview. “You can save a lot of time,” he said. “Safety ought to be intimately involved in those early (hiring) discussions,” Hoover added. Technological developments will continue to offer safety improvements, both Hoover and Riddle agreed. They noted after-market developments, AI additions, and more occurring within the industry. “Everybody is doing it a little differently. It’s saving lives. It’s going to save more as it becomes mainline and as acquisition costs come down,” said Hoover, drawing comparisons of forklift technology updates to auto improvements that are now standard industry-wide. Combilift recently unveiled the Combi Safe-Lift, an anti-overload device. The lift incorporates a strain sensor on the mast section and a lift cut-out valve on the hydraulic line to disable lifting if the unit is potentially overloaded, according to a press release. “We believe that this simple and cost-effective system should become a standard option on all counterbalance trucks in the future,” said Martin McVicar, managing director of Combilift, in the statement. “Fitting a straightforward device such as the Combi Safe-Lift is an effective way to reduce risks for the operator and other personnel, and also to avoid product damage as well as costly repairs,” he said. At Fleet Team Inc., Riddle said he believes safety is top-of-mind for all of the business’ customers. “We recognize that. That’s why we partnered up with David; brought them into the fold so we can offer safety as a top-of-mind approach,” Riddle said. An event focused on safety Safety will be the focus at the 2024 National Forklift Safety Day on June 11 in Washington, D.C. “It’s also streamed live. You can watch it from anywhere,” said Brian Feehan, president of the Industrial Truck Association. Cesar Jimenez, Toyota, vice president of regulatory affairs, is the chair of this year’s event. “We’ve had some really good chairs and Cesar is right in line,” said Feehan, who said this is the 11th year of the event. This year, there will be a focus at the event on technology and the role it can play, along with emphasizing the importance of training, according to Feehan. “We always like to say that there’s no substitute for in-person training,” he said. And Feehan said the ITA always recommends working with manufacturers to find out what training programs they suggest. “Every forklift performs different roles in different environments,” he said. Another area of focus at National Forklift Safety Day will include safety culture within organizations, OSHA updates, and more. The event has grown considerably in recent years. Feehan said after organizers found a high level of interest in the online option, they decided

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Dynamic forces in action: A look at the challenges and opportunities in warehousing today

Thu, 18 Apr 2024 05:00:25 +0000

As the nerve center for many material handling operations, warehouses provide an essential role. This month, Material Handling Wholesaler asked a few businesses in the industry about the latest trends in the dynamic environment of warehouse operations. Warehouse solutions At LD Systems, a company that helps warehouse operations find solutions, CEO Bob Sutphen said there have been three areas typically addressed recently. Those are space needs, needs to improve productivity, and a desire to cut down on errors. Sutphen said to address those concerns, LD Systems will first work to determine a company’s culture and customer expectations. “Once we’ve identified that, the next thing we want to do is look at their data,” he said. “Every time we do that, we almost always find things that surprise the customer.” While warehouse operators often are busy looking at production numbers, LD Systems can help identify areas of improvement, according to Sutphen, who said the company has worked on over 500 projects within 75 to 80 different industries. “We’ve learned what things to look for and what data we need to collect,” he said. As system integrators, LD Systems works to develop solutions that will address the needs and concerns based on the data. In the current environment, Sutphen said automating is often advisable. “If there’s an opportunity for automation, we definitely recommend that,” he said, noting one of the problems many warehouses are currently facing is attracting and keeping good labor. E-commerce continues to grow, but Sutphen said the associated costs burden some companies. “We have developed many solutions that can make people efficient, including reducing shipping costs,” he said, adding that he believes e-commerce will keep expanding. “It opens up all kinds of options,” said Sutphen, noting opportunities for packaging and other ways of reaching the end user. But while the volume of e-commerce will likely continue on an expansion track, Sutphen added that he expects some moderation in the pace. “People don’t necessarily always insist on next-day delivery,” he said. “There’s been some moderation in that because of the way parcel companies are charging for their services.” In general, Sutphen said the ideal timeframe for a project with LD Systems is six to nine months. As space becomes more expensive, reimagining existing space is a solution for many warehouses. “I rarely walk into a facility that we can’t do more in the same space,” Sutphen said. He encouraged warehouse operators to keep thinking in terms of innovation. “If you don’t do anything, your costs will increase,” he said, adding that each business’ competitors will continue evaluating how to meet the costs and expectations of the environment. “If you want to be one of the leaders, you have to innovate,” Sutphen said. Efficient and sustainable solutions With recent studies showing that 67% of organizations have environmental KPIs for their supply chains*, a key area of focus for warehouses is sustainability. At Enersys, Samuel Shiroff is Senior Director of Global Sustainability. The global battery manufacturer has set and is pursuing its own climate, energy, and water goals, according to Shiroff, who said the business’ energy use per kilowatt hour of storage is down more than 15 percent and water usage is down 2.5 percent versus 2020. “We are walking the walk,” he said. Shiroff noted that when talking about climate goals, there are three areas of focus or scopes. The first is what is burned, like gas or petroleum. The second is utility-related burns and the third is what is burned in the business value chain. “Scope 3 is very difficult to measure. Everybody is somebody else’s scope three,” Shiroff added. At EnerSys, the aim is to reach neutrality on scope 1 by 2040 and on scope 2 by 2050, according to Shiroff. He said the business’s carbon footprint overall has been lowered by over 4 percent year on year with its Scope 1 (direct emissions) down nearly 25% since 2019. Pursuing sustainability objectives adds value to the company and helps meet the expectations and interests of customers, shareholders, employees, and other stakeholders. The best people in the world don’t want to work for a company that harms the planet,” said Shiroff. In addition, such measures meet or exceed emerging regulations. Shiroff noted that expanding on what regulations demand can be beneficial. “If you do it just for the sake of compliance, you are leaving value on the table,” he said. “The distance between risk mitigation and opportunity creation is incremental.” For those starting out in a sustainability action plan, Shiroff recommended prioritizing aspects of each goal. He added that the internal person or staff working on corporate sustainability can help bring along others in the company. However, there is still a need for those involved to understand the details of what is required. Those businesses obligated to report to the European Union, for example, which Shiroff noted is estimated as at least 7,000 American companies, there are certain sustainability requirements. Shiroff noted that despite legal challenges to the new SEC climate disclosure rules, it would be risky to simply assume that they will be overturned. “The SEC was very careful about what they did,” Shiroff said. For Shiroff it is clear that energy efficiency is a key area of focus, but eventually, we will meet a point where that is maxed out. He notes that we will always need energy, but we do not need to get it from fossil fuels. Shiroff added that rooftops and adjacent property can be viewed as a key resource. “And energy sources within warehouses are also key, such as batteries like those offered by Enersys”, Shiroff said. “Our products themselves enable our customers to reduce their own carbon footprint,” said Shiroff, who said thin plate pure lead batteries are approximately 20 percent more efficient and lithium-ion approximately 25 percent more efficient than lead acid. “Add to that a more efficient charger and just by switching battery technology you can gain more than 30 percent efficiency in energy cost as well as reducing carbon,” Shiroff said. Also key in the pursuit of sustainability is knowing

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Powering the warehouse: Battery and Chargers are key to successful operations

Sat, 20 Jan 2024 06:00:12 +0000

Powering equipment is one of the main considerations of any material handling operation. What type of battery power to use and how much of an investment to make. How to match a business’ objectives with evolutions within the industry. All are often top-of-mind when establishing an operation’s power system. This month, Material Handling Wholesaler looks at some of the trends in batteries and chargers, along with how some companies are thinking about energizing equipment. New tech and trends Flight Systems Industrial Products offers battery chargers and modules, controllers, dash displays, joysticks, the Xtender Battery Regenerator and other battery management products to service markets, according to the business website. Dustin Love, business development manager, said the company is preparing to launch a product that will improve lithium-ion battery shipping safety by discharging battery energy. “Right now, there’s not really regulation when it comes to shipping lithium batteries,” said Love, noting that the safest shipping would be for a battery to be at zero volts. The Flight Systems’ machine, called The Battery Terminator, can discharge a battery all the way down to negative 2 volts, according to Love. The Battery Terminator would largely serve the material handling market, although Love foresees it having a lot of use in automotive markets and even scrap yards as well. Love explained that lithium-ion batteries are supposed to last around 15 years. The popularity of the batteries has been growing in recent years, and soon there will be a time when replacements are needed. “At some point, there’s going to be a large bottleneck. We are trying to get ahead of the game,” he said. Also in new technology, Flight Systems has begun selling a wireless charger. The 1-kilowatt charger includes a charging pad on the vehicle that connects wirelessly to a wall charger. Love added that more powerful options are coming from the company this year and that the wireless chargers are mainly for AGVs and AMRs. “You can program robots to drive up to them and start charging,” Love said. While lithium-ion power is “the talk of the town,” Love does not predict a complete shakeup of the market in the near future. “When it comes down to it, lead acid is still king. I don’t think it’s going to go anywhere for some time,” he said. Love noted that while lead acid batteries require certain types of work to maintain, lithium-ion batteries come with their own type of operational maintenance. “Lead acid requires watering and equalized chargers. Lithium has tech programs and troubleshooting. It’s just a different kind of maintenance,” he said. On the lithium side, Love noted that there are developments outside of material handling occurring on CAN signals. “If you look at the automotive market with lithium, there used to be two different CAN signals. “Now it’s pretty much compiling into one,” he said, noting that in material handling, signals differ by various manufacturers. “In order for lithium to really have a hold in the market, there will need to be some kind of compliance on the BMS protocol side, a more uniform approach to charging the batteries,” Love said. A holistic approach At Raymond Corporation, a variety of vehicle integration and power types are offered, including lithium-ion, lead-acid and more, according to the website. Raymond recently expanded its line of advanced energy solutions with the launch of the Energy Essential Distributed by Raymond® 48-volt drop-in lithium-ion battery (48V LIB), which is available in multiple configurations, according to the business. Damon Hosmer, general manager of Raymond’s Energy Storage Solutions, agrees with Love that lithium-ion and hydrogen fuel cell power are “hot topics” currently. “Those are the big trends that we tend to hear about a lot,” he said. Hosmer said customers lately have been taking a more holistic approach to establishing energy in an operation; considering technology, ways to reduce facility demand and more. “Energy and labor are the two most prevalent pain points,” he said, noting interest in the industry in reducing the footprint of banks of chargers in battery rooms, concerns about safety, and pursuit of sustainability. Hosmer said Raymond’s thin plate pure lead batteries have been “a really exciting effort” over the past three years. The TPPL batteries are a solution especially helpful in facilities with cold storage, according to Hosmer. In 2024, Hosmer predicted new technology will emerge domestically and he believes wireless charging will be in demand. “Wireless charging is really coming into place,” Hosmer said. As to types of battery power, lithium-ion technology does present certain advantages, according to Hosmer. “Lithium has really emerged as the superior option from a performance perspective. The standard one-size-fits-all approach with lead acid may not be optimal,” he said. Overall, expectations concerning energy are at a high level in the industry, according to Hosmer. “They expect the highest level of performance,” he said, noting that OEM’s are now working to keep up with the rapid pace of change. “The technology that comes out is changing daily,” he said. Raymond is working to help customers navigate evolving technology and policy, including implementation of the Inflation Reduction Act. Sustainability sourcing is also key within the industry, including end-of-life stages for batteries, Hosmer said. “Another advancement this year is the continued efforts around recycling,” said Hosmer, who said Raymond is helping close the gap around misconceptions related to recycling in the lithium-ion space. “It’s interesting to see the development of the value of those secondary life materials,” Hosmer said. A ‘mainstream’ product Green Cubes Technology, producer of lithium-ion power systems, announced late last year that the company had sold 10,000 of its Lithium SAFEFlex Battery. In terms of watt hours, that totals 297 megawatt hours, according to Robin Schneider, director of marketing. Schneider said the company sees lithium-ion power as being aligned with more mainstream expectations of customers. “Lithium-ion products in general have gone from an early adopter experimental phase to a mainstream product,” she said, adding that now for some customers considerations are focused on commissions of larger installations, as opposed to one or two experimental models. As to reuse, Schneider said that although Green Cubes has

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It’s tax time! Are you prepared for what’s ahead?

Thu, 14 Dec 2023 20:50:41 +0000

Is there never a “TAX TIME” in the U.S.? Don’t think so. And I believe “TAX TIME” is going to increase dramatically. The PROBLEM being that the U.S. continues to spend more than it takes in, which we all know does not work in any way, shape, or form. And how do we fix this? By taking more money from you and your company. THERE IS NOT A CHANCE IN HELL THAT THIS WILL NOT HAPPEN, because in four years U.S. debt will be about $40 Trillion, carrying $1.2 Trillion of interest cost (at 3%) and $1.6 Trillion (at 4%). At the same time the annual debt to GDP ratio we are talking about exceeds 100%. The estimates for 2023 are $4,439 Trillion of tax revenues against outlays of $6,134 Trillion of spending, with the debt balance growing yearly without a game plan to reverse the situation. It will take both higher revenues and spending cuts to reduce the deficit, considering that a large portion of spending is fixed (Social Security, Medicare, Health benefits and interest expense), which all together add up to approximately $4.0 Trillion of outlays. Not a pretty picture. No matter how you look at our situation revenues need to increase, and outlays reduced to lower the total debt. I have suggested on many occasions that management spend time with their tax folks to fully understand what their tax position was for the past year, how it looks for the current year, planning for the current year with enough time to execute “tax” programs and to see what is on the horizon for the following year. I hope you have been doing this. If you followed this suggestion, you should have a pretty good feel for your tax position and the impact on that tax position should Congress take steps to increase all the forms of taxes you pay related to payroll, company taxable income and personal income. We find ourselves currently working with the 2017 TAX CUT and JOBS ACT that will expire in 2025. So, to start with let’s assume this ACT will be repealed. As a reminder of what the TAX CUT act provided here is a brief list of the benefits. Lower tax rates— higher standard deduction—Estate and Gift Tax exemptions —-bonus depreciation—a reduced deduction for mortgage interest and state taxes. Suggestions for raising revenue are as follows: Repeal the 2017 Tax Cut Act Raise the top income rate to 45%. Apply the 12.4% Social Security Tax on incomes over $250,000 Payroll taxes to cover all pass-through income Raise total payroll taxes by 1% Reduce estate tax exemption from $12.9 to $3.9 million Raise Corporate Tax rate from 21% to 28 % Capital gains and dividends taxed at ordinary rates Tax unrealized capital gains at death with a $4 million exemption Wealth Tax of 2% for net worth over $50 million and 3% for over $1 billion Further limiting or eliminating deductions A 5% value added tax Limit Charitable Donation deductions 4% on share buybacks Entitlement Program Reform- later access and higher cost 15 cent gas tax The income tax changes will only apply to those making over some set amount, with lower income tax brackets excluded. Cost reductions are not part of this list. Some of you may be wondering why Bartecki is talking about tax exposure 15-20 months out. I did this because the changes are significant and because it may take you a year+ to get your potential tax situation under control. Maybe the ESOP plan sounds better now? Should you gift your wealth to family members via a trust now instead of waiting for probate to do so? Should you accelerate your technology plan to reduce labor costs? Could a life insurance policy help with lowering tax costs? So many options to consider, so easy to make a mistake. But no matter what, there will be a substantial increase in tax costs for both the company and shareholders. Another situation to consider is the expected company cash flow under current conditions. Could you handle a substantial increase in tax spending? Do you know what your free cash flow position will be for 2024 and 2025. With changes in pricing and interest rates, it may wind up lower than what you are generating now. What would I do? If I am in the “sell” range I would look at selling in 2024 or 2025, understanding that at current interest rates the price may be lower than you like. If I am not in the “sell” range and the company is highly profitable, then the ESOP should be reviewed. If I have a substantial estate, I will investigate how to avoid any increase in the Estate Tax or the Wealth Tax. (With ESOP you do not own the company). I would investigate employment benefit plans to find out options for the Roth or IRA. I would find a tax attorney who knows how to use trusts to accomplish reduction of estate value and potential income taxes. I would investigate how to channel transactions through various entities or states to reduce tax. The bottom line here is all will pay more. How much more is up to you. There is not doubt that rates will increase, deductions eliminated, a VAT Tax added and Wealth Taxes in the form of taxable dividends and capital gains and well as a net-worth tax. I would also assume that deductions for IRA’s and 401K’s will be limited. Every time Congress makes these changes companies and individuals get caught with its guard down and pays a heavy price going forward. But you now have a jump start on the situation, especially where the high-priced changes are involved. What works here is you can plan, but you don’t have to execute until you are ready. Happy New Year! About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC

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Manufacturers and Dealers will have to make hard decisions in 2024

Thu, 16 Nov 2023 06:00:53 +0000

December has arrived and as we close the books on another great year, there is again uncertainty for what is to come in 2024. At the end of last year, I wrote that most likely your business strategies for 2023 might have included contemplating aspects such as consolidation and engaging in merger and acquisition endeavors as this was indeed a noteworthy trend highlighted by MHEDA for 2023. The growing significance of business valuation and succession planning, particularly as business owners weigh retirement options with consolidation remains a prevalent theme. The delicate balance between the manufacturer and dealer relationship remains relevant as our industry experiences a surge in mergers and acquisitions among forklift dealerships. Consolidation of dealers and rental companies purchasing dealers looking to quickly acquire equipment has led to manufacturers on a quest looking for new dealers to grow in different markets or shifting to factory stores. This will continue to be a challenge for leaders of both dealer and manufacturers in the pursuit of growth in the coming year. This is one reason why there is uncertainty for what 2024 will bring. Another dynamic currently going on is that dealers are mostly flush with inventory of new equipment. The manufacturers want to know what the dealer’s plan is for the coming year as it relates to their new equipment orders. The manufacturers want more orders to keep the factory floor busy but the interest rates of the inventory currently on the dealer floor plan are high. Increased depreciation expense of those assets is certainly impacting dealer’s profitability. Dealers must practice careful financial management to optimize profitability while accounting for all of these factors. That fine line between the dealer and manufacturer relationship becomes delicate as noted, especially as new equipment pricing is beginning to come down on new orders and manufacturers are catching up with recent demand. In many cases the price of a new forklift today from the factory is less than the purchase price of the forklift the dealer purchased that is currently sitting in inventory at their dealership. If you keep up with MHEDA’s Material Handling Business Trends, one of the trends that has been noted for 2024 states, “There is a correlation occurring as it relates to forklift inventory. Orders are declining, used equipment pricing and rental utilization are decreasing and there are increased requirements to order new equipment. This is placing pressure on the forklift distributor and cash flow.” New Equipment Dealer truck inventory levels are at an all-time high with more on order. This combined with the drop in the market is a ‘perfect storm’ leading to the end result of the manufacturer (factory) not receiving many new orders. Simultaneously, the factory inventory levels continue to rise as well, albeit varying based on specific models, as the supply chain has normalized, and the manufacturers are catching up with previous demand. The factory is finally shipping the new truck orders that have been previously sitting on extended lead times. Therefore, dealers are placing less ‘fill the pipeline’ orders’, until they have clear visibility of what they will sell from the inventory they have now and into 2024. The dealer discounting has already begun. New truck inventory at a factory store (manufacturer owned dealer) is also interesting to note. The factory controls the distribution and the orders placed for inventory are kept on the floor of the factory store. The rise of the factory store model has been a result of independent dealer owners not having a succession plan in place, coupled with the manufacturer not able to find a suitable buyer to buy said dealership, so the manufacturer buys the dealer and converts it to a factory store. This leads to the question of what will it look like 5-10 years from now as the manufacturer continues to consolidate and buy up independent dealers and continues to have increased new truck inventory levels at their factory owned stores while there is a lessened end-customer demand? Do the factory stores have the proper controls in place to manage these inventory fluctuations? Interesting indeed. The recent decline of consumer spending certainly has an impact on the demand for new truck orders. Consumer spending makes up about 70% of the U.S. GDP according to the National Retail Federation. In one of their recent economic reviews, it was noted by NRF Chief Economist, Jack Kelinhenz, “There are ongoing economic challenges and questions, and the pace of consumer spending growth is becoming incrementally slower.” He goes on to state, “Consumers are still spending but are under financial pressure and have been adjusting how much they buy while also shifting from goods to services, while job and wage gains have counterbalanced inflation, the stockpile of savings accumulated during the pandemic is dwindling and is no longer providing as much spending power as previously available.” Less retail goods being purchased by consumers certainly creates a domino effect on our industry as it impacts the demand for new lift truck orders. Some of the same economic challenges and inventory gluts that the dealer and manufacturer are facing are also true to the end-customer. Wages are high, their customers are reaching their threshold for cost increases, and capital is expensive. Consequently, the end-customers are resorting to traditional cost management tools. Such cost management tactics they are practicing include delaying capital expenditures (i.e., new forklifts) and renegotiating prices with their suppliers (dealers) all which impact the demand for new lift trucks. Used Equipment The pricing on the used equipment market is beginning to soften and more used equipment will hit the market for sale. As noted, the manufacturers have caught up with recent demand, new truck shipments are up significantly. The shipment of these new trucks replacing older trucks or trucks coming off lease, causes an increase in used equipment inventory for the dealer. When a dealer has excess used equipment inventory of a specific type of truck, this leads to a reduced market sale price. Parts When lead times on new trucks

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Boosting efficiencies in the warehouse in a tough labor market

Thu, 19 Oct 2023 15:00:32 +0000

Ken Ramoutar sees productivity as a multi-dimensional concept. Ramoutar, chief marketing officer at Lucas Systems, said when he started in the industry over two decades ago, few would have anticipated the coming labor force challenges. “I’m not sure warehouse workers were viewed as a huge value and asset, and now they are,” said Ramoutar, who said the pandemic has accelerated this view. Now, the focus is on how to compete for the workforce, he said. “It’s more than productivity,” said Ramoutar, who said the traditional concept of more work for lower expenses has expanded. “There’s a whole notion of what can I do, not to make everybody work faster, but how do I make the jobs easier. If I make the job easier, I am more likely to have a workforce that wants to be here and stay here,” he said, adding that this calculation includes labor competition from other warehouses. Lucas Systems offers warehouse optimization solutions using AI, smart software and voice, according to the business website. The company’s tools are in over 400 warehouses worldwide, Ramoutar said. “We talk to customers all day long. The number one issue is the workforce,” he said. Working smarter Lucas Systems’ Jennifer™ software is the heart of the company’s software system, according to Ramoutar. “It’s the Alexus or Siri of the Lucas Systems,” he said, adding that the AI-based system incorporates a real voice and is somewhat like a hand-free system for a personal phone. “A distribution center is a busy place. Instead of looking down at screens or paper, workers can do their work and feel liberated,” Ramoutar said. He said the system helps avoid errors and bolsters efficiency. “There are a couple of things Jennifer does really well. One is around travel pass optimization,” said Ramoutar, who said the system is constantly computing the most efficient travel path inside the warehouse to get the work done, sometimes coordinating pathways for 100 to 200 workers at a time. Ramoutar said running smarter instead of faster using a system like Jennifer can help boost productivity in the range of 20 to 40 percent. Lucas Systems tends to work with mid-size to larger companies, and the sizes of warehouses are increasing, Ramoutar said. “The warehouses are getting bigger. And everybody loves e-commerce. Where’s that all going? That’s accelerating,” he said. Meanwhile, the labor needs are not going away. “All of the data around the labor issue suggest it’s not going to get better,” said Ramoutar, noting that the retiring Boomer generation is 4 million greater than Generation Z. Added to those numbers is the need to appear to younger workers. “Tech plays a pretty big role,” said Ramoutar, who said handing a new employee a clipboard and sending them into the warehouse is not going to appeal to many younger workers. “Companies are going to have to get better at attracting and keeping the labor,” he said. Software and tools like those provided by Lucas help check multiple boxes of need, Ramoutar said. “Software is the fastest thing you can do to get returns,” he said. “As soon as you start running, you’ll get returns right away.” Jennifer was designed to be user-friendly, and Ramoutar said workers typically find that after a few hours that they are comfortable with the technology. The system includes automatic speech recognition and includes over 30 language options. “This is a big deal for some operators. They may have a fairly multicultural workforce. With Jennifer, they can speak their native language and still work in the warehouse,” said Ramoutar, adding that this is appealing for workers. “It’s also attractive for the workforce. We’re going to give you stuff easy for you to use,” he said. The next wave of worker engagement will be using more video game mechanics in the tools, Ramoutar said. “There’s a lot of things that have come out of the gaming industry that can be applied in a service environment,” he said, naming features like competing against oneself or other workers, getting feedback and earning incentives. “It’s kind of making work fun. We think there’s a big opportunity for that,” he said. It all adds up to making the warehouse more dynamic, especially as warehouses handle ever-larger volumes of orders, according to Ramoutar, who said Lucas Systems’ will continually recalculate while operating. “We are constantly making sure everything is optimized,” he said. Productivity at the end of the line At SupplyOne, productivity is also a key area of focus. The company, a distributor of end-of-line packaging equipment, operates in both manufacturing and distribution centers. Chip Reavley, senior vice president of packaging automation, handles oversight and responsibility for the packing equipment and automation team, which includes equipment engineers and factory certified technicians. End-of-line packaging can also be referred to as secondary packaging, according to Reavley. “They’re really synonymous,” he said, noting the wide array of automation points covered by secondary packaging. The company bills itself as the largest independent supplier of custom corrugated and other value-added packaging products, equipment, and services in the U.S. SupplyOne offers a full gamut of automatic and semi-automatic case erecting and case sealing systems, strappers, banders, palletizing and wrapping equipment, as well as associated consumable including custom or stock corrugated films, tapes, strapping, and other materials, according to a SupplyOne press release. The company provides mid-sized manufacturers, food processors, and medical and e-commerce companies “leading packaging programs and complete packaging solutions,” the statement said. SupplyOne’s approach is to offer best-in-class solutions to customers, according to Reavley. “It allows SupplyOne to offer state-of-the-art proven solutions,” he said. The pressure of the labor market continues to influence industry developments, Reavley said. “The labor market has, and continues to be, challenging,” he said, referencing both finding and retaining skilled workers. While labor eliminations were originally a concern with automation, Reavley said the current trend for many is to implement automation to allow for labor reallocation. “It’s so hard to find good labor. They’re redeploying into other areas and automating,” he said. The interest in automation, overall, has been on the rise, according to Reavley. For those unsure about pricing on solutions, he will sometimes ask

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A Bright Future- MHEDA CEO Liz Richards retires after 28 years

Wed, 20 Sep 2023 13:05:11 +0000

As MHEDA CEO Liz Richards prepares to retire, a look at her 28 years of experience and what comes next for the association. In nearly three decades leading the Material Handling Equipment Dealers Association, (MHEDA), Liz Richards has helped the organization run smoothly and also steered it in new directions. The non-profit association is dedicated to serving all segments of the material handling business community, according to its website. “For over 65 years, MHEDA has provided material handling companies and their employees with business resources, leadership training, networking opportunities, benchmarking data, career development tools and insights on the latest industry trends,” the site said. Now, as Richards plans for retirement from her role as CEO of the association at the end of the calendar year, she took a few moments to reflect on her tenure with Material Handling Wholesaler. Below are some of her thoughts, which have been edited for a print format: Wholesaler – What is the timeline for the MHEDA leadership transition? Richards – “I’m working until the end of the year, Dec. 31,” she said, adding that MHEDA Interim CEO Jeannette Walker will then be taking over. “She started on July 10th and she’s amazing. She came from the industry, she’s been in it for over 20 years, and she’s familiar with the association. She hit the ground running.”Richards said a wealth of plans are in place for the association going forward. “I’m feeling great about it,” she said, of Walker’s future leadership and the association’s future. Wholesaler – How did you learn about MHEDA and end up in the role of CEO? Richards – “MHEDA used to be led by an executive vice president before the title changed to CEO,” she said, noting that in 1994 she received a call from then Executive Vice President Tony Colletti about taking a job as the association’s director of marketing. Richards, who at that time had just had a baby, was unfamiliar with the material handling industry, including the association. “I said that I didn’t even know what this is and so thanks but no thanks,” she said, who added that she also loved her current job. A few months later, Colletti called again. He was leaving the post as executive vice president and thought Richards had the perfect skill set. “He said, ‘Please meet with the search committee,’ which I did, and they offered me the position,” Richards said. She had to jump in and learn quickly, starting the job Jan. 3 of 1995 and her first ProMat following on Feb. 10. “I was walking around, thinking ‘Oh my gosh, what did I do?” she said. “In retrospect, the board of directors and the past presidents could not have been more gracious or more welcoming. Together, we all made it work.” Wholesaler – During your time at MHEDA, what were the organization’s greatest achievements? Richards – “Tony got the board much more engaged than they were previously. He did some organizational restructuring,” she said. And during Richards’ first year, Tim Hilton of Carolina Handling was in his first year on the board and introduced his strategic planning process. “We modified it and implemented it at MHEDA. Having that process in place helps us plan everything we do in the organization. It’s been our greatest success,” she said. Richards said the process includes identifying, through an annual in-depth environmental analysis, what MHEDA members are facing. This includes challenges, opportunities and trends and topics include everything from wages to labor to automation. The research then becomes “the basis for everything we do as an organization,” she said. “I call it our organizational engine.” It took a while to build out the strategic plan, according to Richards, who said each year the executive committee reviews the surveys, feedback and more to create a road map. “We put the process in place in the late 90s and continue to tweak it,” she said, of the strategic planning process. In addition, Richards is also pleased with how the organization interacts with board members to continually improve. This includes an involved nominee orientation meeting, including flying members to Chicago, all the way through exit interviews. “These are all little pieces of the process,” she said. Wholesaler – During your tenure you brought a lot of new programs like Women In Industry, MHEDA-NET and Networking Events. How has MHEDA programming changed during your years with the association? Richards – She pointed again to how the impact trends researched by the association have helped formulate the programming. “I realized that we need to dig into our organization, hence the Emerging Leaders Conference. We are also forming an Emerging Leaders Advisory Group,” Richards said. Women In Industry began as a breakfast at the convention and has grown and expanded from there. And the Automation Solutions Conference has also grown out of trends. The association’s networking events are of particular value, Richards added, offering the chance to “network with others, learn from mistakes and avoid failures.” MHEDA organizes peer groups, which set their own agendas, to talk about current challenges, as well. “That’s something that has been very popular,” Richards said. “And we have regional networking programs that we host at member locations.” Wholesaler – What are some areas that you did not have as much time to address during your tenure in need of attention that you would like to see focused on in the future? Richards – “One particular thing that we always struggle with is it’s really hard to come up with a stump speech about why MHEDA is so important,” she said. “There are so many different areas that somebody in the industry can develop from” through the association, she said. “I think sometimes non-members think, ‘Why would I get involved and share my secret sauce?” But Richards said when people join the association, they quickly appreciate the benefits. “When you join and find others are tackling the same issues that you are and people in the industry are so gracious and they’re willing to share,” she said. “It’s a relationship that’s hard to sometimes put into words. “I’ve heard from so many different members who come to

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