Dealers: It’s time to up your Aftermarket strategy, not overlook it
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
IFOY Award 2024 winners announced
Jungheinrich, RAVAS EUROPE, SAFELOG with Mercedes, SSI Schäfer, and STILL have been announced as winners of the IFOY Award 2024. The International Intralogistics and Forklift Truck of the Year (IFOY) Award recognizes the year’s best intralogistics products and solutions. The international jury of the 2024 global intralogistics competition nominated a total of 16 products and solutions from 15 companies in seven categories and voted on the winners following a three-stage audit. Brightpick, Brightpick Autopicker – Start-up of the Year The IFOY Spin-off Award “Start-up of the Year” goes to Brightpick for the autonomous, mobile picking robot Brightpick Autopicker. The international jury selected the AI-based 2-in-1 robot as the best new development in this market segment. The Autopicker from Brightpick, a start-up founded in Bratislava in 2021, is the world’s first autonomous mobile picking robot. Brightpick worked closely with its sister company Photoneo on its development. Same founders, similar technology: 3D vision, robotics, AI, and software for a functioning warehouse execution system. Autopicker installations with a total of 70 devices can now be found in the USA (headquarters), Germany, Slovakia, and the Czech Republic. What’s new about this type of picking: the Autopicker pulls the source tote from the standard rack, which does not require rollers or rails. As the robot moves to the next storage location, it picks the target tote like a human picker, taking the picked tote to the next storage location. There must therefore always be an empty space available in which the bin can be placed. The autopicker works with a trolley that independently picks and consolidates orders–without human intervention. In technical terms, Autopicker uses a patented design with two bins for this process to pull storage bins (storage tote) from the shelf, pick the items using a robotic gripper arm and place them in an order tote. The big difference to other fulfillment robots is that the autopicker does not have to go to central picking stations. Another advantage is its versatility, as it can be used not only for picking in the rack aisle, but also for other tasks such as pallet picking, warehouse replenishment, dynamic storage, order consolidation, temporary storage and shipping. And if human dexterity is required for picking, for example, the autopicker can also be used for normal goods-to-person picking. The robots can also reliably pick a wide range of products, including chilled and non-chilled food, pharmaceuticals, medical devices, packaged goods, cosmetics, electronics and textiles in plastic packaging. The entire autopicker fleet and the fulfilment process in the warehouse are orchestrated and optimised by the Brightpick intuition software. IFOY Verdict The fact that picking takes place while a robot is moving from one location to another without the robot having to return to a “base station” is new and revolutionary. Although an exact measurement during the live assessment at Test Days was not possible, a higher throughput rate and thus a considerable time saving could be confirmed. This leads to a reduction in the number of robots required, which has a positive effect on the return on investment and noticeably reduces picking costs. According to Brightpick, the savings in labour costs are significantly higher than with traditional goods-to-person stations, with higher throughput, easier installation and lower costs. The company claims that picking costs have been halved. Click here for the original test report, IFOY Innovation Check and pictures Jungheinrich, EJC 112i – Warehouse Truck Highlifter of the Year The IFOY Award 2024 in the “Warehouse Truck Highlifter” category goes to the EJC 112i from Jungheinrich. The international jury voted the compact highlifter the best new product in this category. With its compact design and outstanding performance, the EJC 112i sets a new standard in the entry-level segment and clearly stands out from the competition. Especially in small warehouses with narrow aisles, the high residual capacity enables optimum space utilisation. Together with the small turning radius and user-friendly operation, it is clear why the EJC 112i makes day-to-day work easier for every operator. The EJC 112i is more than just a further development of its predecessor, but offers an even more compact and manoeuvrable solution thanks to the integrated lithium-ion battery. When designing the truck, Jungheinrich paid particular attention to the high energy density of lithium-ion technology, which stores the same amount of energy in significantly smaller modules. This not only saves space, but also opens up new possibilities in terms of truck size. The result is immediately apparent: the EJC 112i has a smaller L2 size, offers a good view of the fork and has a low overall height. The impressively small turning circle makes manoeuvring effortless, even in tight spaces. To compensate for the shorter length and lower weight of the lithium-ion battery, the truck has been completely redesigned. The mast profiles have been widened in the side view and the steering arms have been reinforced. The entire chassis is balanced to ensure optimum force equalisation. The result is immediately noticeable when the load is lifted. At the maximum 1,200 kg, the EJC 112i does not move and effortlessly lifts up to 2,900 mm. Up to 3,800 mm, the truck picks up 830 kg and at the maximum lift height of 4,700 mm, 650 kg still remains, all with a load distance of 600 mm. The increased residual capacity of the EJC 112i optimises space utilisation and minimises floor space requirements, as heavier loads can be stored in higher racks. The IFOY test confirms that the EJC 112i offers the best performance in its class, with exceptionally high lifting and lowering speeds and efficient performance. Thanks to the more powerful pump motor and a better balance between pump power and lift cylinder, the new truck lifts significantly faster than its predecessor and well above the average in this class. The driving and acceleration speeds have remained almost the same. In the most powerful setting, P3, the EJC 112i achieves a comfortable, even speed of 6.05 km/h with and without a load. The battery capacity and the power of the charger
US Cutting Tool Orders totaled $214.7 Million in April 2024, Raising Year-to-Date total nearly 5% over 2023
Shipments of cutting tools, measured by the Cutting Tool Market Report compiled in a collaboration between AMT – The Association For Manufacturing Technology and the U.S. Cutting Tool Institute (USCTI), reached $214.7 million in April 2024. Orders increased by 1.1% over March 2024 and grew by 13% over April 2023. Year-to-date shipments totaled $846.1 million, nearly 5% above shipments made in the first four months of 2023. “While April 2024 shipping numbers do show an increase from those of 2023, caution continues due to many uncertainties ahead for the remainder of 2024,” said Steve Boyer, president of USCTI. “Uneven growth and turbulence have continued to impact cutting tool orders through the first quarter of 2024, and there have been some downgrades in expected needs from the aerospace sector, leading to stagnation in new orders.” Costikyan Jarvis, president of Jarvis Cutting Tools, expanded on Boyer’s analysis, saying, “The industrial sector of the economy continues to move sideways. While the value of cutting tool shipments is up about 5% over last year, the flatter growth rate in units shows that inflationary pressures are still present.” Looking forward, Jarvis said: “There are two big ‘ifs’ that could result in improved demand during the second half of the year. The first is that the overall production remains consistent. The second is if Boeing can start ramping up production of the 737 to the FAA limit of 38 per month. If those two things can happen, the cutting tool industry might be positioned for growth in both revenue and volumes.” The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production, and distribution of cutting tool technology and products. It provides a monthly statement on U.S. manufacturers’ consumption of the primary consumable in manufacturing – the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in U.S. manufacturing activity, as it is a true measure of actual production levels. Historical data for the Cutting Tool Market Report is available dating back to January 2012. This collaboration of AMT and USCTI is the first step in the two associations working together to promote and support U.S.-based manufacturers of cutting tool technology. The graph below includes the 12-month moving average for the durable goods shipments and cutting tool orders. These values are calculated by taking the average of the most recent 12 months and plotting them over time. AMT – The Association For Manufacturing Technology represents and promotes U.S.-based manufacturing technology and its members – those who design, build, sell, and service the continuously evolving technology that lies at the heart of manufacturing. Founded in 1902 and based in Virginia, the association specializes in providing targeted business assistance, extensive global support, and business intelligence systems and analysis. AMT is the voice that communicates the importance of policies and programs that encourage research and innovation, and the development of educational initiatives to create tomorrow’s Smartforce. AMT owns and manages IMTS – The International Manufacturing Technology Show, which is the premier manufacturing technology event in North America. The United States Cutting Tool Institute (USCTI) was formed in 1988 and resulted from a merger of the two national associations representing the cutting tool manufacturing industry. USCTI works to represent, promote, and expand the U.S. cutting tool industry and to promote the benefits of buying American-made cutting tools manufactured by its members. The Institute recently expanded its by-laws to include any North American manufacturer and/or remanufacturer of cutting tools, as well as post-fabrication tool surface treatment providers. Members, which number over 80, belong to seven product divisions: Carbide Tooling, Drill & Reamer, Milling Cutter, PCD & PCBN, Tap & Die, Tool Holder and All Other Tooling. A wide range of activities includes a comprehensive statistics program, human resources surveys and forums, development of product specifications and standards, and semi-annual meetings to share ideas and receive information on key industry trends.
Is your dealership too busy selling hats to each other?
In April’s edition, I wrote about the topic of data-driven decision-making. In one instance, I discussed how most dealerships I visit live with silos of data that do not integrate with each other. The topic of data silos and departmental silos resonated with some of my industry colleagues, so I felt compelled to make it a topic for this month’s article. For your business, success hinges not only on the quality of products and services you sell but also on the seamless collaboration between the different departments within your dealership. The traditional model of siloed departments can impede efficiency, communication, and ultimately, customer satisfaction; breaking down these silos is essential for thriving in today’s landscape within our industry. I recently spoke to an industry colleague that referenced the phrase, “We’re too busy selling hats to each other” when explaining the struggles with departmental silos within their dealership. They noted this phrase came from the book, ‘Results Rule! How to Build a Culture That Blows the Competition Away,” authored by Randy G. Pennington. In the book, it is highlighted that the phrase is often used metaphorically to describe a situation where your employees are preoccupied with trivial or inconsequential matters rather than focusing on more important issues or opportunities, i.e. delivering best-in-class customer service. In essence, it suggests that instead of focusing on meaningful endeavors or addressing critical challenges, your employees are caught up in relatively unimportant tasks or pursuits, akin to metaphorically selling hats to each other, which might seem busy or active but ultimately lack substance or value. Is your business too internally focused? Are your employees and departments “too busy selling hats to each other?” When your business becomes too internally focused, it risks losing touch with the external factors that drive your relevance and innovation. This inward focus can manifest in various ways, each posing significant challenges to your dealership’s growth and competitiveness. One of the most glaring issues when your employees are too internally focused, and your various departments act independently within silos is the lack of customer-centricity. When your employees become too preoccupied with its internal operations and processes, they may lose sight of the evolving needs and preferences of your customers. This disconnect can lead to your services or once competitive advantages no longer resonating in the market, ultimately resulting in declining sales and customer dissatisfaction. Moreover, an internal focus often breeds complacency and resistance to change within the organization. When losing focus externally on things such as feedback from customers or insights from industry peers, your dealership will risk falling into a state of stagnation. This stagnation can quickly lead to obsolescence, as your competitors seize opportunities and innovate ahead. Furthermore, an internally focused dealership is likely to miss out on valuable opportunities for innovation. Innovations often arise from understanding market gaps and anticipating future needs, both of which require a keen awareness of external dynamics. By neglecting to engage with the market and monitor industry trends, you limit your ability to innovate and stay ahead of the curve. Siloed departments are usually a result of these internally focused habits in your dealership which present several challenges. Firstly, communication breakdowns frequently occur, leading to misunderstandings, service delays, and dissatisfied customers. Secondly, these departments often operate with disparate processes that do not align with your dealership’s overarching goals, resulting in redundancy, resource wastage, and decreased productivity. Additionally, the lack of cross-departmental collaboration can lead to missed opportunities for upselling, cross-selling, and delivering comprehensive solutions tailored to your customers’ needs. What are some strategies you can implement to start to break down silos within your dealership? First, look at forming cross-functional teams comprised of individuals from various departments within your dealership. This can promote collaboration and facilitate a comprehensive approach to problem-solving. Secondly, establish shared customer-centric key performance indicators and goals. This ensures alignment across all of your departments, guiding them towards common objectives. Furthermore, implement regular communication channels through formal and informal meetings, such as quick-standing hurdles. This fosters dialogue and strengthens interdepartmental relationships. Lastly, invest in training programs that emphasize cross-departmental understanding and skill development. This is crucial for breaking down barriers and cultivating more cohesiveness amongst departments across your dealership. A cohesive approach to sales, service, and support ensures a smoother experience for your customers, from initial inquiries to after-sales service. Remember to prioritize customer service! Exceptional customer service doesn’t end when the sale is made. Ensure your dealership has a dedicated customer service team equipped to handle inquiries, technical support, and service requests promptly and professionally. Also, look to foster a culture of feedback. Actively seek feedback from your customers regarding their experiences with your dealership and the aftermarket services provided. Whether through surveys, reviews, or direct communication, encourage customers to share their thoughts and suggestions for improvement. Use this feedback to identify areas of strength and areas for enhancement, demonstrating your commitment to continuous improvement and customer-centricity. I’m not saying internal processes, optimization, and employee engagement aren’t important, but they need to be balanced with an outward focus on customers, market trends, competition, and innovation. To excel against competitors, your dealership must balance internal optimization with customer service. While internal processes are crucial for efficiency, they shouldn’t overshadow the main goal: providing exceptional service to customers. Adopting an outward mindset positions your business for long-term success and ensures you remain relevant and competitive in this ever-changing industry. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.
NORD introduced gear motor QR codes
NORD’s new gear motor QR codes link to convenient digital services for unit documentation, service and sales contact requests, and order information. If you’ve recently purchased a NORD DRIVESYSTEMS gear motor, you may have noticed a new sticker with a QR code located on the unit. Quick Response (QR) codes can store a wide range of data and enable the user to access information almost instantly. These stickers are a new development in NORD’s expansive digital services and provide users quick access to product specifications, documentation, and service requests on-the-spot via their mobile device. The codes can be scanned using a photo app or QR code app and will bring the user to NORD’s digital service webpage with their respective country’s language and contacts. NORD’s existing digital services include the Documentation Center, a resource for product-specific manuals and literature, the Spare Parts Shop for fast online ordering of stock components and replacement parts, and the myNORD Customer Portal, a comprehensive tool that allows users to select and configure their NORD drive systems online. The QR codes extend these services with a defined service request contact form, as well as the ability to easily contact local sales and service departments. When a unit’s code is scanned, the form will automatically populate with the specified unit’s equipment/serial number and the proper documentation including spare parts list, manuals, Declaration of Conformity (DoC), 2D/3D drawings. Order details can also be accessed, saving time and ensuring the correct unit information is being referenced. QR code stickers are now in use at NORD USA’s four facilities in Waunakee, Wisconsin, Corona, California, Charlotte, North Carolina, and McKinney, Texas. On all gear motors and solo motors, the sticker is located on the motor cooling fin near the nameplate or on the terminal box if the motor is smaller than case Size 80. For gear units only, the sticker is located under the nameplate and for units with variable frequency drives, the sticker is located underneath the nameplate.
COVAL launches the new generation of Multi-stage Mini Vacuum Pumps: The CMS M Series
The mini pump with max performance! The CMS M series, the latest addition to COVAL‘s range of multistage vacuum pumps has been designed and developed with two guiding objectives: compactness and performance. It offers an optimum solution for industrial applications which require high suction flow rates. Enhanced performance and robustness CMS M multi-stage mini vacuum pumps are the product of COVAL’s advanced research, seeking to provide a powerful, durable solution for handling porous parts, emptying tanks, or random gripping in harsh industrial environments. Thanks to their ultra-compact design and optimized multi-stage Venturi system, these pumps guarantee powerful suction flows of up to 19.42 SCFM, while reducing compressed air consumption in a compact footprint. Modularity and ease of maintenance An outstanding feature of the CMS M series is its modularity, making it easy to adapt to a variety of applications and simple to maintain. These mini pumps also offer two exhaust configurations to perfectly match each specific need, available in two suction capacities (10.59 SCFM to 19.42 SCFM) and with or without vacuum and blow-off control. Advanced multi-stage technology for maximum efficiency COVAL’s multi-stage technology maximizes the energy input of compressed air by cascading several stages of Venturi profiles and combining their respective suction flows. Intermediate valves progressively isolate each stage to achieve maximum vacuum level. This technology makes it possible to generate high suction flow at low vacuum levels. This innovation reflects COVAL’s commitment to providing efficient, energy-saving solutions for the industry. A trusted technology partner An ISO 9001:V2015 certified company, based in the South of France, COVAL continuously innovates in vacuum handling. The company is recognized worldwide for its expertise in developing customized, reliable, and efficient solutions that improve the safety and productivity of industrial processes.
Is your dealership embracing technology?
I recently attended MODEX 2024, and this year’s show was highly anticipated by professionals across our industry. Automation, robotics, software solutions, artificial intelligence, and more were all on display providing a glimpse into the future of our industry. With connected smart automation solutions aimed at streaming supply chain operations it made me think of different areas where a lift truck dealership could streamline their operations to gain efficiencies and improve their customer experience. This led me to the topic of ERP (Enterprise Resource Planning) integrations. ERP is your business system software where business activities such as procurement, work orders, accounting, operations, etc. are performed. There is a numerous amount of ERP providers that provide their version of a dealer management platform. Additionally, there are many legacy systems out there, however, these days, many dealers are migrating to a modern dealer management platform that allows for integrations. By definition, an ERP integration allows your operation to streamline business processes, improve efficiency, and facilitate seamless communication and data exchange between different systems, ultimately leading to enhanced decision-making and the ability to adapt to external and internal changes. In last month’s edition, I wrote about the importance of ‘data-driven decision making’ where I noted that in our ever-changing industry, the ability to make informed decisions swiftly and accurately can be the difference maker in running a successful dealership and remaining competitive in the market. A modern ERP system that allows for integrations will assist your management team in decision-making about productivity and profitability. Non-integrated systems result in manual data updates, meaning that information isn’t promptly integrated into the ERP system as it arises in ‘real-time.’ Consequently, you will have to have someone within your company dedicate time to manual data transfer and uploads, resulting in wasted time. As labor resources are at a premium these days, that wasted time could be better spent on sales growth activities. There are various methods to achieve ERP integration between your platform and other systems. One of these methods is an API, or Application Programming Interface, which is a set of rules, protocols, and tools that allows different software applications to communicate with each other. In addition to API, other methods include middleware, file transfer, web services, and EDI, or Electronic Data Interchange. While this is not a programming and technical monthly column, you should be aware of these methods of integration and discuss them with your current and/or prospective ERP providers. You will also want to make sure your ERP system can integrate with your various business systems (such as CRM software) and your various suppliers. Let’s explore the benefits of ERP integrations as they relate to your parts and service departments. Parts Department Does your current platform allow for direct communication between your suppliers and your ERP system? Having the ability to connect to integrate with your suppliers will help streamline your order and procurement process with real-time, instantaneous feedback on product, pricing, and availability. Other benefits for your parts department operation include: Eliminating pricing and stock count discrepancies No need to request or manually upload new price files, tapes, etc. Ability to work on one system (your ERP system) and not have to go back and forth to the supplier portal to check product information, price, availability, etc. The ability to provide end-to-end visibility into the supply chain, from suppliers to customers, is key to your parts department being competitive in your market. Your parts department managers can track the movement of parts, monitor lead times, and identify bottlenecks or breakdowns in the supply chain. They can then proactively address any issues because they will have better visibility of supply chain performance. Another great benefit of having your ERP system integrated with your suppliers is the ability to sell products online. If you currently have an e-commerce platform or are thinking about creating an e-commerce platform to sell your products online and grow your parts counter sales, this integration will be vital to the success of setting up or updating your e-commerce site. Service Department ERP integrations can equip your service managers with real-time data that allows them to manage service technician productivity and profitability more effectively. It will also allow you to streamline processes and enable data-driven decision-making. Other benefits for your service department operation include: Many modern ERP systems offer mobile applications that allow technicians to access work orders, customer information, and inventory data from their phones or tablets while in the field. If your ERP system does not have built-in mobile applications, there are mobile applications that can integrate with many legacy ERP systems as well. Mobile accessibility will empower technicians to work more efficiently, without needing to return to the office for information or updates. Integrations can also provide your technicians with access to detailed information about customer history, equipment specifications or manuals, and equipment service history. This allows your technicians to diagnose issues more accurately, order the right parts, and complete repairs right the first time, reducing rework. If your sales department and/or other departments operate on a CRM (Customer Relationship Management) platform, an ERP integration with the CRM can lead to enhanced communications with your customers. This facilitates more personalized and effective communication, which leads to improved customer relationships and loyalty because each customer experience touchpoint that your customer has with your business is uniform. Integrating your ERP systems with other software solutions and your supplier’s systems, will eliminate data silos, reduce manual data entry and errors, streamline processes, enhance visibility into your business operations, and ultimately improve productivity for all departments within your business. You will also foster collaboration amongst your various departments, which is crucial because it promotes cross-functional communication, teamwork, and employee engagement. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets
Forklift Cities – USA – Where forklifts are built in America
Where are forklifts made? Contrary to the prevailing notion that little is manufactured in the USA nowadays, the majority of forklifts sold in the country are, in fact, domestically produced by diverse manufacturers. While some forklift OEMs have shuttered factories in past decades, numerous others have established new manufacturing plants in places like Berea, Kentucky, New Bremen, Ohio, and other small towns throughout the industrial heartland and the south. Consequently, as of 2024, the USA hosts a flourishing forklift manufacturing sector. These manufacturing facilities are primarily situated in rural areas, with Logisnext/Mitsubishi’s site in Houston, Texas, being the notable exception. Caterpillar / Mitsubishi / Logisnext Mentor OH: Caterpillar operated a forklift manufacturing facility in Mentor, Ohio, from 1969 until 1985. Mentor, Ohio, is located about 25 miles northeast of Cleveland. However, in 1985, Caterpillar decided to shutter the factory as part of a larger move to outsource most of its forklift production to Daewoo in Korea. Dallas OR Closed in 1987. Built straddle stackers here. Houston TX: Caterpillar entered a joint venture with Mitsubishi Heavy Industries in 1992. At that time, Caterpillar-branded forklifts began being manufactured in Houston. It continues to this day. Clark Equipment / Clark Material Handling Asheville NC: Clark built large-capacity forklifts here in the 1960s and 1970s. After it was closed it moved to Danville, KY. Battle Creek, MI: During World War II, Battle Creek became the global production hub for Clark’s forklifts; however, production ceased in 1982 when operations were relocated to Georgetown, KY, and South Korea. Danville KY: Large capacity lift truck production. Closed during Terex’s ownership of Clark sometime between 1995 and 1996. Georgetown, Ky: Clark commenced production in in 1974, choosing the location for its cost-effective, non-union labor force. Georgetown, Kentucky, home to around 34,000 residents, is about 15 miles north of Lexington, the state’s second-largest city. Production ceased here in 1987. Lexington KY. Home of Clark’s USA headquarters, light manufacturing started here in 2019 and continues to this day. Crown Equipment Corporation / Crown Lift Truck New Bremen OH: Established in 1945, Crown’s headquarters are located in New Bremen, Ohio, a quintessential “company” town in the state’s west-central region. New Bremen has a population of around 2900 residents and is about 70 miles northwest of Dayton, OH. Troy, New Knoxville, Minster OH: Crown operates approximately 1.5 million square feet of manufacturing facilities across Ohio, including locations in Troy, New Knoxville, and Minster. Greencastle IN: Greencastle, Indiana, with a population of around 10,000 residents, is about 40 miles west of Indianapolis, the capital and largest city of Indiana. New Castle IN: New Castle, Indiana, home to approximately 18,000 residents, is situated about 45 miles east of Indianapolis. Kinston NC: Crown recently expanded this facility in 2021. Kinston, NC, is approximately 80 miles southeast of Raleigh. Hyster-Yale Group Berea, KY: Operations started in 1973 at this facility. HYG produces class I, IV and V forklifts here as of 2024. Crawfordsville IN: Closed May 1986. Not entirely clear what they built here. Danville, IL: Hyster Company opened this facility in 1946. At that time, it was the only factory 100% dedicated to building forklifts. It closed in 2001, a nearby parts distribution center remains open. Greenville, NC: Yale opened this factory in 1974. As of 2024, HYG builds class II and III forklifts here. Sulligent, AL: Hyster built transmissions at this Alabama site. Today it continues to house transmission manufacturing for Hyster and Yale forklifts as well as HYG’s Bolzoni operations. Portland OR: Portland was where it all began for the Hyster company back in 1929. Production of forklifts ended here in January 1984. Jungheinrich Houston TX: Jungheinrich equipment has been manufactured in Houston TX since 2017. Where the company has a joint venture with MItsubishi Logisnext. Kalmar San Antonio TX: Kalmar started building a rough terrain version of its popular reach stacker here from 1996 until it sold the operation to investors in 2018. The factory continues to this day under the name IRTC. Ottawa KS: Kalmar started building large capacity (36,000 pound capacity and higher) at a facility in Ottawa KS. The factory is mainly a production plant for Ottawa switcher trucks. Komatsu Forklift Newberry SC: Komatsu builds forklifts in South Carolina, plant was opened in 2001. Newberry, South Carolina, lies approximately 40 miles northwest of Columbia. Linde / KION Material Handling Summerville SC: Linde entered the USA market when it purchased the remnants of the old Baker Forklift company in 1977. Linde started building forklifts in 1985 in Summerville, South Carolina. Summerville is a suburb of Charleston SC. Nissan Marengo IL: During the late 1980s, the company acquired Barrett Industrial Trucks, headquartered in Marengo, Illinois. Nissan merged Barrett with Nissan and began production of the rest of Nissan product line in Marengo. Marengo has a population of about 7,500 residents and is about 60 miles northwest of Chicago. Raymond Corporation / Raymond Lift Truck Greene NY: Raymond has deep roots in upstate New York. Its production continues to this day in Greene NY which is located south of Syracuse NY. Muscatine, IA: Muscatine, Iowa, was originally the corporate headquarters for Prime Mover, a forklift manufacturer established in 1950, which was later acquired by BT Industries in 1997. Today, the plant operates under the name Raymond and remains in operation. Muscatine, Iowa, is situated approximately 30 miles southwest of Davenport. Taylor Machine Works Louisville MS: Taylor builds its units in Louisville MS. The company started in 1927 and continues to this day. Louisville, Mississippi, is situated roughly 90 miles northeast of Jackson, the capital and largest city of Mississippi. TCM West Columbia SC: TCM operated a factory here from 1989 until its closure in 2010. It mostly built heart of the line forklifts under 12,000 pound capacity. Toyota Forklift/Toyota Material Handling Columbus IN: Toyota started producing forklifts in Indiana in 1990. As of 2024 the company boasts that it has built over 750,000 at this facility. Irvine CA: Toyota set up a sales operations office and USA headquarters in at this city in Southern California in 1967. This facility was closed in 2012 when operations were consolidated at the manufacturing site in Columbus, IN. Yale Materials Handling
Genuine Parts Company announces officer promotion
Genuine Parts Company has announced its board of directors has appointed James F. Howe to the position of President, Motion, the company’s industrial business, effective April 1, 2024. With nearly three decades of dedicated service to the company, Howe brings a wealth of experience and expertise to his new role. Most recently, Howe served as the Executive Vice President and Chief Commercial and Technology Officer, where he played a pivotal role in shaping the corporate trajectory of Motion. His leadership in overseeing eCommerce, strategic pricing, sales excellence, corporate accounts, and human resources has been instrumental in driving the company’s success. In his new capacity, Mr. Howe will continue to report to Randy Breaux, Group President, GPC North America. “James has an impressive history, having served in numerous executive roles during his long career at Motion,” said Paul Donahue, Chairman and CEO. “His extensive experience makes him an excellent choice to lead Motion. We feel confident that under James’s leadership, our talented and experienced Motion team will continue to achieve great results.”
Iowa and Iowa State Basketball Dancing in March Bobbleheads unveiled
To celebrate the Iowa Hawkeyes and Iowa State Cyclones runs to the Sweet 16, the National Bobblehead Hall of Fame and Museum unveiled officially licensed Iowa Hawkeyes and Iowa State Cyclones Basketball Dancing in March Bobbleheads. On Saturday, Iowa’s Women’s team will face Colorado in the Sweet 16 of the NCAA Tournament. The officially licensed bobbleheads are being produced by the National Bobblehead Hall of Fame and Museum, an official licensee of Iowa and Iowa State. The bobbleheads are now available in the National Bobblehead Hall of Fame and Museum’s Online Store at this link for Iowa and this link for Iowa State. The bobbleheads, which are expected to ship in September, are $40 each plus a flat-rate shipping charge of $8 per order. Each bobblehead will be individually numbered to 2,024. Standing on a basketball court base with each school’s colors, the bobbleheads feature Iowa State’s mascot, Cy the Cardinal, and Iowa’s mascot, Herky the Hawk, dancing and wearing a basketball jersey. The backing behind the bobblehead features a basketball texture with “MARCH” across the top, a bracket, and each school’s logo. Iowa will take on the 5th-seeded Colorado Buffaloes in the Sweet 16 on Saturday in Albany, New York. The 1st-seeded Hawkeyes knocked off 16th-seeded Holy Cross in the First Round and the 8th-seeded West Virginia Mountaineers in the Second Round to keep dancing and advance to the Sweet 16. Iowa State will take on the 3rd-seeded Illinois Fighting Illini in the Sweet 16 on Thursday in Boston, Massachusetts. The 2nd-seeded Cyclones knocked off the 15th-seeded South Dakota State Jackrabbits in the First Round and the 7th-seeded Washington State Cougars in the Second Round to keep dancing and advance to the Sweet 16. The Iowa and Iowa State Bobbleheads join over a dozen other schools in the Dancing in March Bobblehead series includes schools that reached the Sweet 16 in the Men’s and Women’s NCAA Tournaments. “We’re excited to unveil these Iowa Hawkeyes and Iowa State Cyclones Bobbleheads celebrating both teams run to the Sweet 16 this March as both schools are dancing again,” National Bobblehead Hall of Fame and Museum co-founder and CEO Phil Sklar said. “These bobbleheads are the perfect way for Iowa and Iowa State fans, alumni, students, faculty, and staff to celebrate March Madness each year and show off their school pride year-round!”
Data-driven decision making
One of the MHEDA’s 2024 Material Handling Business Trends states, ‘Technology is profoundly impacting the material handling industry including artificial intelligence, digital automation, data-driven decision-making, and the integration of advanced systems that optimize efficiency, productivity, and safety. Members must have a clear understanding of emerging technologies.’ Let’s dissect that statement, in particular explore the topic of ‘data-driven decision making.’ In our ever-evolving industry, the ability to make informed decisions swiftly and accurately can be the difference maker in running a successful dealership and remaining competitive in the market. Nowhere is this more apparent than in the operations of your service department. The service department is tasked with maintaining, repairing, and optimizing the end customer’s equipment to ensure the customer’s warehouses and logistics operations run smoothly. The service manager is responsible for managing the department’s productivity and profitability. Therefore, the importance of data-driven decision-making cannot be overstated. Gone are the days when service departments relied solely on intuition or past experience to address maintenance issues or plan repairs. Today, the availability of data and advanced analytics tools empowers service managers and technicians to leverage valuable insights in real-time, leading to increased efficiency, reduced downtime, and ultimately, improved customer satisfaction. However, most dealerships I visit live with silos of data that do not integrate. The cost and difficulty of properly connecting all these data sets becomes a struggle for even the largest dealerships. If you must deal with orderly silos of data, it is important to identify the purpose of each data set. Then inside of those data sets identify what things need to be managed the most. Often service managers are tasked with manually running their own data reports to analyze. In today’s fast-paced environment, waiting for managers to manually run reports can result in missed opportunities and delayed actions, meaning by the time the manager has time to run or review the report, oftentimes it is too late. Also, if the output is long lists of data or actionable items, this can be overwhelming to the service staff that already have a full day of work fielding inbound calls and everyday tasks and projects that get longer by the week. Let’s look at Work-in-Process (WIP) reports from your business system as an example. Instead of running a report that generates the entire list of current WIP, look to generate a ‘subscription’ type report model that can provide the 10 oldest work orders by open date and have it auto generated each Monday to start the week. Additionally, you could set up another subscription report to show the 10 oldest work orders by the last day of labor date posted to the work order. Essentially, your Service Manager should get this data ‘pushed’ to them automatically in subscription form and then the data-informed decision-making process makes it obvious the next 10 things to address and work on. As my industry colleague, John L. Gelsimino (President, All Lift Service, and MHEDA’s Immediate Past Chairman), says, “Call it actionable data – easy-to-digest information that allows the manager to quickly identify problems to jump in on.” He will tell you that this type of strategy can be used for any type of dealership management data. Furthermore, data-driven decision-making fosters continuous improvement and innovation within your service department. By regularly monitoring key performance indicators (KPIs) and benchmarking against industry standards, your service manager can identify areas for improvement and implement strategies to enhance efficiency and productivity. For example, if data analysis reveals that the average time taken to complete a repair is higher than industry norms, your managers can investigate the root causes of delays and implement process improvements to streamline workflows. By charting out revenue per technician in a rolling 12 format you can better determine the technician’s performances and how they are trending. Here are some other tips to optimize data-driven decision-making in your service department: Dashboard Visualization: Develop user-friendly dashboards that provide at-a-glance insights into critical performance indicators. These dashboards should be accessible to all relevant parties at your dealership, allowing them to quickly assess the status of operations and identify areas requiring attention. Predictive Analytics: Leverage advanced predictive analytics algorithms to forecast customer equipment failures and maintenance needs. By analyzing historical data and identifying patterns, these algorithms can anticipate potential issues before they arise, empowering your service department to proactively address them. Additionally, this will give you an advantage over your competition and help maintain customer loyalty. Mobile Applications: Provide service technicians with mobile applications that enable them to access relevant data and documentation on the go. This allows technicians to quickly retrieve information, input data, and communicate with your service department from the field, minimizing delays and improving responsiveness. In conclusion, data-driven decision-making is paramount in today’s landscape for forklift service departments seeking to remain competitive and efficient. By leveraging data and analytics tools, Service Managers and technicians can proactively address maintenance issues, optimize resource allocation, enhance safety, and drive continuous improvement. Ultimately, embracing a data-driven approach not only ensures the smooth operation of your customer’s equipment but also contributes to the overall success and profitability of your dealership. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.
TVH announces new VP of Sales-Americas
TVH Americas, a global provider of quality replacement parts and accessories for the material handling, industrial, and construction equipment industries, announced that Carnelius Cruz will be the new Vice President of Sales – Americas. Cruz will be responsible for the USA, Canada, and Mexico as well as the Latin America markets. The overall customer experience remains the top priority during Cruz’s integration along with continuing to execute the company’s commercial strategy and market growth. Cruz steps into this role with an extensive background in the automotive industry. In his most recent role as Vice President of Part Sales North America at Navistar Inc., he demonstrated exceptional leadership qualities overseeing Part Sales, National Accounts, and the Commercial Acceleration Program. With over a decade of experience managing sales portfolios exceeding a billion dollars, Cruz has consistently delivered exceptional results and valuable contributions to the applicable industry. TVH looks forward to adding another strong leader to its management team after the recent retirement of Cathy Diaz, former Director of USA Sales. Diaz began her career in the industry with System Material Handling Inc. (SMH) in 1984. Her wealth of experience and knowledge about parts and accessories proved vital during the SMH acquisition in 2003. A few years later in 2006, Diaz played an integral role in co-managing the IMC Holdings (Intrupa and LPM) acquisition. After a successful 40-year career, Diaz retired at the end of 2023 leaving the TVH USA customer base in the trusted hands of Ryan Walker, Director of USA Sales and Services.
Service and part departments need to track their KPIs to achieve growth
As we are well into the first quarter of 2024, the subject of labor shortages continues to be a trend across our industry. Dealers that I talk to stress that the growth of their service and parts departments’ revenue continues to be impacted by the shortage of skilled forklift technicians. The topic of attracting, hiring, and retaining technicians continues to be a hot topic, however, in this month’s column, I will focus on another topic as it relates to service technicians, technician productivity, and efficiency. The key to your dealership’s service department’s success goes beyond the number of technicians you have and how busy they are. The question to ask is how productive and efficient they are in their work. Long hours on the clock may not be the key metric; rather, it’s their productivity that impacts your dealership’s profitability. Today, many dealerships have adopted business system software that will track and compute these metrics as they pertain to technician productivity for you, yet sometimes this this Key Performance Indicator (KPI) is neglected. Service Department Efficiency Before measuring technician productivity and setting up KPIs, your service department operations and processes must first be efficient. Running an efficient service department within your dealership requires a combination of effective management, skilled personnel, and streamlined processes. The efficiency of your service department is critical in meeting your customer demands and driving the success and revenue of the department. A crucial factor is the proficiency of the service technicians on your staff, who should be well-trained and certified to handle the diverse range of equipment they are being asked to diagnose and service. Investing in ongoing and continuing training programs will ensure your technicians are up to speed on the latest technological advancements in equipment and diagnostic tools. Additionally, having a well-organized and stocked spare parts department or service van parts inventory is an important factor for efficiency. You want to ensure that the necessary spare parts are readily available to your service technician when your customer’s equipment goes down. Be sure your parts department staff have the necessary resources to look up, procure, inventory, and deliver the right parts as needed to positively impact technician efficiency and customer satisfaction. Establish clear communication channels with your customers so your service department and technicians understand their needs and expectations. Providing regular updates on the status of repairs and offering estimated completion times helps build trust and satisfaction with your customers. Additionally, if everyone at your dealership (service dispatcher, service writer, technician, customer service sales rep, etc.) is on the same page with the customer, it will show the customer that your dealership is running a customer-centric service department. Having efficient workflow processes and effective management of work-in-process is another critical element to the efficiency of your service department. There are many business systems and field service mobile solutions today that allow for the efficient documentation of service records and collaborations between your service, sales, and parts departments that further enhance the overall performance and customer satisfaction of your dealership. If you are still asking your technicians to use paperwork orders to document their service work orders and billable hours and turn them in manually to the office, it may be time to look to invest in a modern field service mobile solution. This will also streamline your processes of converting a completed service work order to a customer invoice more efficiently. An additional benefit, as you look to attract, hire, and retain technicians, is that state-of-the-art technology is more attractive to workers for their everyday job tasks. Technician Productivity Now that you’ve streamlined processes and demonstrated your service department can run efficiently, it’s also crucial to stress the importance of productivity. Simply computed, technician productivity can be calculated by dividing their working hours by the available hours and their efficiency by how long they take to complete a service job versus the standard time estimated to complete that job. For many dealers, a normal paid working day consists of eight hours for your service technicians, which you compensate them for even if they are unable to bill out all that time to retail customer service jobs. While not all their time will always be 100% billable to your customers, your processes should maintain accountability for every paid hour to be billed out to a customer invoice, internal invoice, or general ledger (GL). These three types of hours to be billed are commonly referred to as retail hours, internal hours, and expense hours. Retail hours are hours you can bill your customer for a service job. Internal hours billed include repairs to your rental fleet, pre-delivery inspection of new equipment sales, and equipment serviced under full maintenance lease agreements. Expense hours include training hours, team meetings, and other non-billable tasks. The key here is to invest in technology and systems that can effectively account for every retail, internal, and expense hour of your technician. The forklift service industry landscape is evolving, and strategic adaptation is key to the future profitability of your dealership. Embracing change, staying up to date with technological advancements, and consistently innovating your service offerings can position your dealership as a leader in your market, while also attracting and retaining customers with opportunities for revenue growth. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.
Motion names new SVP Strategy and Markets
Motion Industries, Inc., a distributor of maintenance, repair and operation replacement parts, and a premier provider of industrial technology solutions, named Chris Cleland to Senior Vice President of Strategy & Markets, effective immediately. Mr. Cleland’s career spans over 25 years in consulting, strategy, marketing, branding, e-commerce, business development, and transformation. In his previous role as Principal Consultant at Cummings Creative Group (CCG), for the past 20 years, he led multiple successful initiatives across several industry verticals, driving growth and innovation for clients—including 12+ years consulting with Motion on marketing and strategy projects. Prior to his time with CCG, Mr. Cleland gained valuable experience as President/Owner of LithoSigns and as a Sales Manager with Citadel Broadcasting. In his new role, Mr. Cleland will lead the Company’s strategy development for its business groups, plus the e-commerce and digital teams. He will report to James Howe, Motion’s Executive Vice President – Chief Commercial Officer/Chief Technology Officer. “Chris brings a wealth of experience and expertise to our team,” said Mr. Howe. “His impressive track record in innovation and transformation makes him a perfect fit for guiding our companywide strategic planning process and shaping our future growth and success. We look forward to an exciting journey ahead.” Mr. Cleland graduated from The University of Alabama at Birmingham (UAB), earning a Bachelor of Science in Business.
Elevate customer service in the parts department
Can you believe we’re already in January? Cheers to the New Year! I hope as you read this, your business and personal successes were prosperous in 2023 and you are entering the new year with enthusiasm for everything 2024 has in store. With that, let’s delve into the topic of customer service at the dealership—a subject consistently at the forefront of discussions among industry professionals. Customer service training and the overall customer experience should be paramount on your priority list as you look for ways to grow your business. Successful dealers I speak with always point to how their success in after-sales service is because they recognized and implemented a good customer service training and customer experience program. As I’ve written in the past, the competition for talent is certainly not limited to your service technician staff. The competition for parts professionals, sales staff, office personnel, and management continues to be fierce. That is why you want to be sure to stay informed about the retention, recruitment, and development of these positions. In my current role, I certainly have a focused interest on the training and development of your parts professionals. A well-functioning parts department is critical to the success of your service department and dealership overall. Whether it’s supplying replacement parts, providing technical look-up and research, or offering expert advice, the parts department plays a pivotal role in ensuring customer satisfaction. Here are some key principles to revisit, implement, and/or adopt to elevate the customer service in your parts department: Product Knowledge Exceptional customer service begins with a deep understanding of the products being offered. In the parts department, it’s a necessity. Your parts professionals should be well-versed in the intricacies of the equipment and machinery sold by your dealership, knowing the specifications and compatibility of various parts. They should also be equipped to look up, source, and procure parts from competitive equipment that you may be servicing or selling parts over the counter for. A parts professional that enhances their product knowledge can contribute more effectively to the success of the department and the organization as a whole. Training How to build this product knowledge, you ask? If you are an OEM dealer, look to take advantage of any parts training they provide to your dealership. Additionally, the Parts Professional training program put on by TVH University is a valuable training resource. Training to establish knowledge on the most common parts on truck classes I-V, training to provide an understanding of model and serial numbers for major OEMs and how to utilize parts look-up research tools are just some of the topics covered in this course. In addition, the quality customer service training portion that is intended to strengthen the sales and customer service skills of your parts professionals to deliver better customer service over the phone, email, and in person. A well-informed parts department staff is better equipped to provide excellent customer service, answer inquiries accurately, and guide customers to getting the right part. Communication Communication is key in any customer service setting. Establish clear and accessible communication channels for your customers to inquire about parts availability, pricing, and specifications. Responsive communication not only builds trust but also contributes to a positive customer experience. Whether it’s through phone lines, email, or an online portal, make it easy for customers to get the information they need. As an industry colleague once told me, “Customers are willing to wait for a part, however they cannot wait for an answer.” In our world of instant communication, availability and responsiveness are non-negotiable components of exceptional customer service. Customers expect timely responses to inquiries and concerns, whether communicated through phone calls, emails, or in-person interactions. Being accessible builds trust and demonstrates a commitment to customer satisfaction. Relationships This may sound obvious as we all know in our industry that people buy from people. However, building off of the importance of communication as a key customer service principle in the previous paragraph, you also want to make sure that your parts professionals understand that building relationships is paramount to the growth and success of the department. Build relationships beyond the transactions; get to know your customers and their unique needs. Personalizing interactions fosters a sense of loyalty and customer satisfaction. Remembering a customer’s preferences, previous purchases, or equipment specifications adds a personal touch that goes a long way in creating lasting connections. Also remember, in the world of email, text, and digital chat communications, the in-person interaction and over the phone voice interactions help build a foundation of trust and familiarity with your customer and your business. Conclusion Exceptional customer service is the linchpin that can differentiate your dealership, fostering customer loyalty, repeat business, and positive word-of-mouth referrals within the industry. Every successful interaction in the parts department not only fulfills an immediate need but contributes to the long-term success and reputation of your dealership. Elevate your customer service in the parts department, and watch it become a driving force for customer loyalty and business growth. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 18-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.
Smart Vision Lights launches JWL225-DO Lightgistics Machine Vision Light with hidden strobe technology
Smart Vision Lights (SVL) launched the JWL225-DO Lightgistics series light, which combines a linear light footprint with ring light functionality to deliver brighter, fast lighting at working distances of up to 2,000 mm. The light features Hidden Strobe technology, which enables the use of powerful LED strobing without annoying and potentially hazardous flashes. With Hidden Strobe technology, LEDs internally self-trigger thousands of times per second, pulsing faster than the human eye can perceive, creating the illusion of continuous light. The technology allows machine vision systems to benefit from powerful overdrive modes of LEDs while ensuring a safer and more comfortable environment for nearby employees. “As speed and throughput requirements in the logistics industry grow and evolve, systems integrators need LEDs capable of delivering bright light pulses to freeze images of fast-moving objects, but these strobing lights can create uncomfortable and potentially dangerous working environments,” says Steve Kinney, director of training, compliance, and technical solutions at Smart Vision Lights. “Hidden Strobe technology mitigates this issue, allowing high-speed machine vision systems to capture the optimal image without unintentional environmental hazards and without shielding.” Brighter, Faster LED Lights for Logistics Lightgistics LEDs were designed specifically to overcome the challenges of performing accurate barcode reading and optical character recognition at high speeds with highly reflective plastic wraps or shipping bags. The lights feature Dual OverDrive technology — which combines SVL’s Deca OverDrive and standard OverDriveTM engines and allows end users to attach polarizers that retain exceptional light output at any speed. “Achieving the level of speed and accuracy required in today’s automation applications in the logistics industry becomes difficult when trying to capture images through polybags and plastic wraps,” says Kinney. “Lightgistics lights are designed specifically for this issue, delivering light pulses that are 10 times brighter than standard continuous mode to help improve overall track-and-trace capabilities.” Equipped with an onboard charging capacitor designed to ensure powerful bursts of energy with a low consistent electrical draw, the JWL225-DO also features 10-, 14-, and 30-degree lens options. In addition, the IP65-rated bright field light’s integrated camera mount is compatible with most common machine vision cameras and can be directly connected and controlled through a camera’s trigger output.
CLARK Material Handling Company announces appointment of Jerry Dolan as Aftermarket Regional Sales Manager
CLARK Material Handling Company has announced the appointment of Jerry Dolan as Aftermarket Regional Sales Manager for CLARK North America. Mr. Dolan will report to Charlie Chwasz, North American Aftermarket Sales Manager. In this role, Mr. Dolan will support the CLARK dealer network on the aftermarket side, assisting dealers as they grow their parts and service departments. Mr. Dolan has over 25 years of experience in the material handling industry, both on the OEM and dealer level. Mr. Dolan served in many roles, including Truck Sales, Aftermarket Sales, Branch Manager, Operations Manager, and General Manager for long-time CLARK dealer Mid-Columbia Forklift in Washington state. Mr. Dolan has a strong background in growing parts and sales business and building lasting relationships with customers built on trust and transparency. “We are pleased to welcome Jerry to the CLARK team, with his extensive industry experience and proven track record of building strong relationships with dealerships and with customers,” commented Charlie Chwasz, North American Aftermarket Sales Manager. “Jerry’s commitment to excellence will be of great benefit to the CLARK team as we collaborate with our dealer network to increase parts and service sales.” “The ability to work for one of the legacy forklift brands, with a strong culture of supporting our dealer network, and one of the broadest product lines in the industry is exciting to me,” added Jerry Dolan, Aftermarket Regional Sales Manager. “I’ve worked with the CLARK brand for many years, and I am thrilled to be working directly with the CLARK team now. CLARK parts maintain the same durability and quality the brand is known for, and I look forward to working with the CLARK dealer network to grow their business in the parts and service departments.” Mr. Dolan resides in Washington state and will be responsible for supporting all northern US and Canadian CLARK dealers.
Manufacturers and Dealers will have to make hard decisions in 2024
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
What happens in the auto industry…..
OEM’s and Lift Truck dealers have always been paying close attention to what is happening in the auto industry, thinking that these large major industrial players that also sell via dealer networks are a step ahead of the equipment industry, and that most of the current as well as any expected financial and economic changes incurred by the car industry will eventually wind up on the equipment dealer’s doorstep. And you know what, that is probably truer than you think. For example, let’s consider the latest auto industry adventure called the latest UAW contract renewal terms. They are asking for some substantial pay increases as well as benefit adjustments. The Ford contract asked for 25% increases over the term of the contract which will put the top rate up to $40 an hour, with a 68% increase for starting wages to over $28 an hour. That makes the top wage salary alone $83000, plus health and retirement benefits. All in, you are probably pushing $140,000 to $150,000 a year. This will not take place upon the agreement by the workers to accept the plan, but over the term of the new contract. So how will this new contract impact the auto industry? The PRICE of cars will increase, as if they haven’t already. The cost of REPAIRS will increase, as if they didn’t already. PARTS costs will increase for parts generated by the OEM. And my best guess is they will sell fewer cars annually compared to the past. OEM’s will reduce the number of employees by automating the build process along the lines of Tesla. Their stock prices will feel the negative impact of all the above. So, if what happens in the auto industry eventually winds up in your office, what can you expect and what can you do about it. I will bet you a cigar (Dean will provide them for you) that every manager reading this column will hear about the UAW deal from employees expecting to receive a comp adjustment starting January 1, 2024. Most of you have probably received these requests already. And since your techs, parts and rental folks drive your absorption factor, you probably will have to do something to keep them on board since we all know there is demand for experienced techs and parts personnel. So where does this leave you, the material handling dealer? Let’s compare the list above to your operation. If you increase your any fixed or variable costs (like payroll and benefits) you will have to sell more or INCREASE PRICING, thus increasing margin dollars to cover the new cost levels. The cost of your REPAIRS will have to be increased to maintain service margins, including work performed on maintenance contracts. Any PARTS department cost increases will also have to be covered via pricing upgrades. Seeing how all these factors impact new unit sales, I suspect customers will shop for the units and in the end your new unit sales will be lower than expected. Used sales and pure rental transactions should increase. Probably the biggest issue a dealer will have to investigate is how his/her competitors are doing regarding the same issues. If they hold to their current pricing, you have a problem. You will have to predict your competitor’s next move. You will need to find ways to improve productivity which will improve profit margins on a high percentage of your sales. To add to your problems, you will need to assist manufacturers and warehouse customers to improve productivity (this may come with a substantial cost component). Your CFO will need to play around with these various budget and cash flow implications. You could wind up with two or three versions to track, depending on how the sales numbers work out. Monthly and quarterly budgets are required along with the related cash flow analysis. We are talking about quite a bit of work here which may need to be outsourced. When you ponder your options long enough you come to realize that no matter what happens you need to take steps to improve productivity. Improve productivity and all the other problems become manageable because you have the flexibility to adjust as necessary without putting yourself in a bind financially. I also wanted to comment on last month’s column. In the Material Handling Wholesaler reader survey conducted in July you asked for more current info regarding ESOP’s. Consequently, I asked Nathan Perkins to provide some comments on the current state of the ESOP market and he produced a small book doing it. In any event it is a readable overview of the current ESOP market. If enough of you have questions, we can have a ZOOM meeting to discuss any questions you may have. So let us know if such a meeting would be beneficial and we will put it together. And, as mentioned before, there would be no disclosure of who is asking the questions. Next month, we will provide our annual tax report, current taxes as well as potential changes to the code. If you have any tax questions you would like addressed, please contact me and we will follow up and report next month. 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.
Emerson debuts LED Wall Pack Luminaires for Commercial and Industrial Buildings
Appleton LED luminaires are ideal for retrofitting legacy HID wall packs to achieve lower energy consumption and reduced maintenance costs Emerson has introduced Appleton™ IWL weatherproof luminaires, a new line of energy-efficient LED wall packs that meet the security, sustainability, and lighting output requirements of modern commercial and industrial facilities. Appleton IWL luminaires ensure safety for people and property by providing up to 15,000 lumens of optimally distributed light when mounted on building exteriors and at outdoor entrances. With the fixture’s nine field-selectable settings, installers can precisely match color temperatures and brightness levels to large or small outdoor areas. When compared to conventional wall pack lighting, Appleton IWL luminaires offer notably better performance and dependability, particularly in applications where condensation and humidity are present. Appleton IWL luminaires are housed in a tough cast aluminum enclosure lined with silicone rubber gasketing and secured by stainless-steel bolts and pins, in contrast to standard wall pack lighting, which is enclosed in plastic. An IP65 ingress certification qualifies IWL luminaires for harsh outdoor areas in power generation plants, steel makers, cement, stone, and sand production sites, shipbuilding and marinas, pulp and paper plants, and foundries. Dependability is further strengthened by a broad temperature range of -40°C to +40°C (-40°F to 104°F). “Wall packs are routinely damaged by outdoor environments, requiring frequent repairs and total fixture replacements. Also, the safety of employees is compromised when a wall pack is non-operational,” explained Frank Cunningham, senior product marketing manager at Emerson. “Appleton IWL weatherproof luminaires are hardened to withstand outdoor environments without needing maintenance, and the housing design keeps water from damaging internal components. Plus, by harnessing LED as a light source, relamping is all but eliminated, reducing labor hours and lowering costs.” Upgrading HID Fixtures to LED Technology Facilities can decrease their energy consumption by up to 75% by replacing outdated HID wall pack fixtures with Appleton IWL luminaires incorporating LED technology. Depending on the model, the new luminaires deliver 5,000, 10,000 or 15,000 nominal lumens with 121 to 165 lumens per Watt (lm/W), equivalent in lighting output to 100-watt to 400-watt HID wall packs. In addition, wall packs are typically mounted several floors high in hard-to-reach areas, therefore requiring electricians to climb into bucket trucks or lifts to perform maintenance. Appleton IWL wall packs offer greater reliability and a much longer lifespan than HID — 130,000 hours versus 20,000 hours on average — translating into virtually zero maintenance, lower labor costs, minimal downtime, and less risk to plant electricians. Appleton IWL Series LED wall packs offer three field selectable color temperatures (CCT): 5000K Cool White, 4000K Neutral White, or 3000K Warm White along with wattage levels of low (5000W), mid (10,000W) and high (15,000W), covering nine possible lumen and color temperature combinations.