Time to balance out your dealer operations to lessen employee fatigue and low morale
I recently attended the MHEDA’s Annual Convention and Exhibitor Showcase and as always, came home with some great takeaways and new industry connections. The theme of this year’s convention was ‘The Human Factor’, which is the topic at the heart of every organization. One topic specifically addressed employee burnout. As one of the 2023 MHEDA material handling business trends states: ‘Some employees are experiencing worker fatigue and low morale due to current pressures in and out of the workplace. Leaders must be cognizant of this and provide support when and where needed.’ That statement surely resonates, as I find that in many operational instances, positions like Operations Managers or Service Managers at your dealership are asked to wear many ‘hats’. One of these many ‘hats’ sometimes includes the management of their fleet of service vehicles. This could be a daunting responsibility and can take their focus away from your dealership’s core business: selling parts and services along with providing new, used, rental equipment to your customers and prospective customers. It can be a complex and time-consuming process to research and purchase the right fleet vehicle to meet your dealership’s needs, especially since the performance of your service vehicle fleet can be directly related to your service technician’s productivity and profitability. Think about some of the pain points that come along with managing a fleet of service vehicles: Purchase Cycle Management: Sourcing and procuring the vehicles in the fleet and dealing with tax, titling, registration, and certifications. Upfitting: Ensuring the vehicle is equipped with proper storage and tools. Branding: Having the vehicle wrapped or painted with the company logo and design. Maintenance and Repairs: Ensuring regular maintenance and timely repairs of the service vehicles can be a significant challenge. Coordinating service schedules, handling unexpected breakdowns, and minimizing downtime of the vehicle and non-billable time of your service technician. Fleet Tracking and Visibility: Maintaining visibility and tracking the location, utilization, and performance of each service vehicle in the fleet can be complex. Identifying inefficiencies, optimizing routes, and monitoring fuel consumption. Compliance and Safety: Ensuring compliance with regulations and safety standards. Cost Control and Budgeting: Managing costs and optimizing the budget for the fleet can be a challenge. Controlling fuel expenses, minimizing overtime, and identifying cost-saving opportunities while maintaining service quality can pose difficulties. How efficient and profitable are your service routes? Fleet Management/Cost of Ownership Think about the same ‘cost of ownership’ value-added sale you make to your customer for a new lift truck with scheduled maintenance for parts and service that your dealership offers. These same principles hold true to your service vehicle fleet. If your Operation or Service Managers are tasked with the fleet management of your service vehicles, you are asking them to take on a lot of these tasks, you are asking them to do the following: Vehicle Selection: Considering factors such as payload capacity, fuel efficiency, maintenance costs, and reliability of the vehicles. Regular Maintenance: Keeping the service vehicles in optimal condition by having regular inspections, oil changes, tire rotations, and other recommended maintenance tasks. Fuel Management and Fleet Tracking: Monitor and manage service vehicle fuel consumption. Manage fuel cards or telematics systems (if chosen) to track vehicle fuel usage and identify any discrepancies or excessive consumption. Manage fuel-saving activities such as avoiding idling, reducing speeding, and planning efficient routes. Vehicle and Driver Records: Keep detailed logs of which technicians are handling which vehicles, the condition of the vehicle, mileage before and after shifts, tire conditions, fuel costs, maintenance history for each vehicle, etc. Constantly analyze this data and make decisions accordingly. For example, is one vehicle’s fuel costs higher than the rest? Lifecycle Planning: Manage aging fleets and avoid higher maintenance costs. Having to decide the optimal time for vehicle replacements or upgrades while analyzing factors such as maintenance costs and depreciation. This is a lot to ask of your Operation or Service Manager to manage. Think of how much time they will have to devote to this that takes them away from focusing on and managing your core business. Let us explore some other key components of effective service vehicle fleet management. Customer Experience Service vehicles with your company logo act as moving billboards, increasing brand visibility and awareness. As they travel to different locations, they attract attention and help build brand recognition among potential customers. Clean and uniform service vehicles convey a sense of professionalism and credibility. When customers see well-maintained vehicles with a consistent brand image, it enhances their perception of your company’s reliability and quality of service. Having clean and branded service vehicles sets your dealership apart from competitors who may have generic or unbranded vehicles. It gives you a competitive edge by showcasing your commitment to professionalism, attention to detail, and overall brand image. Providing clean and uniform service vehicles with your company logo can also boost employee pride and morale. It gives them a sense of belonging and identification with your company, which can positively impact their performance and customer interactions. Does your service vehicle fleet showcase your overall brand image? Are your service vehicles clean and uniform? Are your technicians proud to drive and work out of your service vehicle fleet? Storage It is important to optimize storage and organization while utilizing bins, drawers, and shelves in your service van to keep parts organized and easily accessible. Additionally, what does your customer see when your service technician opens their van? Consider the vehicle layout and storage solutions; is the layout and storage standardized across your fleet? If a technician has to move out of an old van into a new van, how long does that take? If the layout is standardized across the fleet, then it should be a simple move of tools and parts inventory. This will also reduce the amount of non-billable labor hours to accommodate the move. Parts Inventory Remember to regularly evaluate and adjust your parts stocking strategy based on the specific needs of your material handling and lift truck service business. As former
METTLER TOLEDO to exhibit at IFT annual meeting in Chicago
METTLER TOLEDO will showcase analytical instruments and balances with solutions for the food industry at IFT’s 2023 annual meeting in Chicago, IL on July 17th-19th in Chicago, IL The IFT annual meeting will take place July 17th-19th, 2023 in Chicago, IL. Share and be challenged by the latest research, innovative solutions, and groundbreaking thinking. Take advantage of limitless opportunities to make new connections and expand your professional contacts. As an exhibitor, METTLER TOLEDO will be showcasing highly sensitive and accurate analytical instruments and balances used for in-depth quality control to assure food safety and quality. The food and beverages industry faces many challenges – responding quickly to fast-changing consumer demands, increasing food safety and regulatory compliance requirements, and improving productivity while increasing product quality. At METTLER TOLEDO, we create complete weighing and measuring solutions and services that help enhance your business excellence. Make sure to stop by METTLER TOLEDO’s booth #1812 for a hands-on demonstration of the following products and solutions from the following product lines: Analytical and Precision Balances Moisture Analyzers pH Meters & Sensors UV/VIS Spectrophotometers Density Meters & Refractometers Titrators MyBrix Since 1939, IFT has been advancing the science of food and its application across the global food system by creating a dynamic forum where individuals from more than 90 countries can collaborate, learn, and grow, transforming scientific knowledge into innovative solutions for the benefit of people around the world. Registration and Information This tradeshow will be on July 17th-19th, 2023 at McCormick Place, 2301 S Lake Shore Dr., Chicago, IL. Learn more about our attendance at IFT 2023 IFT First 2022: Annual Event and Digital Expo.
RAVAS offers industry-leading forklift truck scales
Forklifts are an indispensable and versatile means of turning, transporting, storing, or collecting goods. By mounting RAVAS weighing systems on the trucks, you ensure a professional process around your factories and warehouses, regardless of your industry or business sector. RAVAS offers a complete range of forklift weighing systems. These are intelligent attachments that can fit on trucks of all brands. RAVAS’ versatile iForks are the world’s first and most complete wireless set of weighing forks for forklift trucks. The iForks offer a new dimension to cross-docking, weighing incoming and outgoing goods, and safely loading and unloading containers. Our hydraulic weighing systems prevent overloading and can easily complete weight checks. The weighing carriages are highly accurate and can perform in combination with clamps or rotators. The RAVAS Hydraulic Weighing Systems are designed for simple weight checks of pallets and goods. They also avoid overloading your trucks, warehouse racks, and forklift trucks. The advantage of mobile weighing systems is that they are fast, safe, and effective. As a result, they quickly increase the output of the logistics in and around your warehouses. The RAVAS iCP (Carriage Plate Scales), an integrated mobile weighing system, weighs pallet loads while being unloaded or transported with a forklift. The onboard indicator collects critical data and can share it wirelessly via built-in Bluetooth. For more information contact RAVAS at 330 425-3092 or salesoffice-usa@ravas.com
Caldwell expands RUD ACP-Turnado Lifting Point Range
The Caldwell Group Inc. has expanded its series of RUD ACP-Turnado lifting points, with Max and Supermax versions. Caldwell partners with the RUD Group to unite their sales and marketing activities in North America for RUD material handling and lifting devices within a common organization. The RUD portfolio includes slings and lifting points for the most complex tasks for integration into almost any application. A lifting point is the connection between the lifting gear and the load. It connects the load with the lifting gear both during lifting and rotation as well as during the turning and movement of loads. Lifting points include ring lifting lugs, eyebolts, flanges, etc., that the sling is attached by using hooks, shackles, or other connection elements. ACP stands for automatic center point; the RUD ACP-Turnado’s lift shackle immediately turns in the load direction automatically when it is lifted, so it cannot remain in an incorrect position. Dangerous transverse loads and a sudden drop of the load are excluded, thanks to a unique spring mechanism. With the relaunch, RUD has gone one step further in terms of working load limit (WLL). The smart ACP-Turnado lifting point is now available from M8 to M100 as well as ½” to 4″, each with all the well-known advantages of the concept. This means that a suitable solution is now available for an even greater variety of applications, including extreme heavy-duty use. The RUD ACP-Turnado Max (launched in April) brought to market M48, M52, M56 / UNC inch threads in size 2″ and the Supermax, the M64, M72, M80, M90 and M100 / UNC inch threads in sizes 2 ½”, 3″, 3 ½” and 4″. The family is now available with metric threads in diameters M8, M10, M12, M16, M20, M24, M30, M36, M42, M48, M52, M56, M64, M72, M80, M90 and M100 as well as with UNC inch threads in sizes ½”, ⅝”, ¾”, 1″, 1 ¼”, 1 ½”, 1 ¾”, 2″, 2 ½”, 3″, 3 ½” and 4″. A practical feature of Max and Supermax versions is the deflector disc, which makes the user’s work easier. It is equipped with an angle marking and thus enables a quick, simple assessment of the current stop angle. The disc also displays important information for the user such as the WLL specification in “t” and “lbs”, the design factors 4:1 and 5:1, as well as the torque moment. Thanks to this, the ACP-Turnado fulfills the requirements of the American standard ASME B30.26. Furthermore, wear lenses are installed at the critical points of the power transmission, making it easy to assess whether the lifting point has already reached discard maturity. Smart lifting point Robert Allen, outside sales manager for the RUD product line in the U.S. and Canada, said: “Since the ‘smart’ centric lifting point automatically turns into the correct load direction when the load is lifted, the lift bail cannot remain stationary, and a sudden drop of the load is not possible. The innovative spring mechanism is the actual heart of the ACP-Turnado. It provides its unique ‘intelligence’ and makes it a ‘smart’ lifting point.” The RUD catalog covers products from solid chains to diverse screw variants and includes items that are manufactured for use in specific end-user markets. Allen added: “RUD lifting points, like other products, have stood for top quality, ergonomics, and safety in lifting technology and load securing for more than 35 years. More than 700 tested boltable and weldable lifting point variants in load ranges up to 250 tons meet maximum requirements in all areas of application in combination with the unique variety of applications of our ICE and VIP chain systems.” As with smaller RUD ACP-Turnado lifting points, large versions have a universal bolt head with internal and external hexagons, which enables optimum handling. The bolt is captive, but still replaceable, which is useful in many applications. In addition, there is an adapted thread length for each dimension instead of a standard thread length across several sizes. Jürgen Grubmüller, marketing director at RUD, said: “This concept allows us to offer fully customized thread types, thread sizes as well as thread lengths even in smallest batch sizes. Even customized special threads or special lengths up to 300mm are possible; this means that each of the three designs…is optimally matched to a defined [WLL] range and individual requirements.” RUD ACP-Turnado Max and Supermax will be in stock at Caldwell and ready for shipping within the U.S. by the end of July.
Genuine Parts Company announces Executive Officer changes
The company also announced Randy Breaux’s promotion from President, Motion to the newly created role of Group President, GPC North America, effective July 1, 2023. Mr. Herron will serve in an advisory role until his retirement to assist in an orderly and seamless transition. “Kevin has been an invaluable asset to GPC throughout his 34 years of dedicated service to the company, including the last five years as President of USAG,” said Paul Donahue, Chairman and CEO. “He embodies GPC’s values. He is a caring leader who always puts customers and people first, and his work ethic and automotive industry knowledge are unmatched. We extend our deepest gratitude for his commitment and wish him the best in his well-deserved retirement.” Mr. Breaux joined Motion in 2011 as Senior Vice President of Marketing, Distribution, Purchasing and Strategic Planning. He was promoted to Executive Vice President in January 2018 and then President in January 2019. Over the past five years, Mr. Breaux has led the impressive transformation of Motion, including the strategic acquisition of Kaman Distribution Group (KDG). He established a strategic vision, developed a high-performing team and culture, and delivered consistent and exceptional performance each year. In the new role, Mr. Breaux will oversee both the automotive and industrial businesses across North America, while assuming day-to-day responsibility as President of USAG. He will continue to report to Will Stengel, President and Chief Operating Officer. “We are thrilled to announce the promotion of Randy to the new role of Group President, GPC North America,” Mr. Donahue continued. “He has consistently demonstrated an ability to lead high-performing teams and deliver outstanding results. Randy’s leadership and relevant expertise make him the ideal candidate for this role. This transition also represents the depth of our leadership team and our talent initiatives as we continue to foster the power of One GPC.”
Stressing safety and safety related services to your customers is good business
With this month’s issue we are putting the spotlight on safety, it is a good time to discuss some products, accessories, and services that can be a part of a dealership’s aftermarket offering. Additionally, discuss how Customer Service Sales Reps, Parts Professionals, and Service Technicians can all drive the sales of said products and services. In my last article, I talked about dedicated customer service sales reps will allow your dealership to provide focused and professional aftermarket parts support, along with dedication to targeting and obtaining service agreements and the upselling of service repair quotes. Let us explore a few safety items and safety-related services that your customer-facing sales, service, and parts teams can quote and sell to your customers. Safety Lighting Safety lighting such as strobe lights come standard on the forklift from the original equipment manufacturer. Operators and pedestrians in the warehouse can easily become ‘numb’ to these standard-issue strobe lights. This creates an opportunity for your dealership to sell upgraded safety lighting for your customer’s forklifts. Safety lights prevent forklift collisions and accidents and illuminate blind spots. Types of safety lights include rotating and flashing lights that attract attention, along with projection warning lights. These have become very popular in recent years; you may be familiar with the blue spot projection warning light. Projection warning lights create visual warning signals for people around the forklift. It’s easy to see which direction the forklift is moving in, which helps avoid collisions, accidents, and injuries. There are even some projection lights on the market now that project a ‘do not enter zone’ to ensure pedestrians keep a safe distance away from the forklift. All of these aftermarket safety lighting options are products that you can add on during the Pre-Delivery Inspection of a new forklift sold to your customer, up-sell during service maintenance, or demo during a customer service sales visit. Chains, Forks, and Tires OSHA’s daily pre-operation forklift inspections call for the inspection of a variety of items on the forklift prior to starting the forklift. A few of these items are ‘high-wear items’ that can be inspected by a technician that is performing service or scheduled maintenance on the forklift or by a customer service sales rep visiting your customer or potential customer’s facility. First, let’s discuss the forklift chain. Application factors like chemicals, dust, or even weather can certainly shorten the life of a forklift chain. Ensuring the chain can operate safely, look for misalignment, rust, corrosion, cracking, damaged pins, cracks, or any other visible defect on a forklift’s chain. The chain elongates as it wears leading to a significant increase in actual pitch and potential chain failure. At 2% elongation, a service tech or customer service sales rep must advise on how much life is left until a replacement is needed. At 3% elongation means that the strength of the chain has been reduced by 15% and the chain must be replaced immediately. A great device for your technician or customer service sales rep is a forklift chain wear gauge. This device measures chain wear and indicates the percentage of elongation as noted above. This will allow them to show the customer their forklift chain elongation and quote the service labor and parts required to replace the chain. Second, let’s take a look at forklift tires. A forklift’s tires will wear down faster than other parts on a forklift. The weight of the forklift and its load causes a lot of wear and tear on the tires. Worn-out tires can be dangerous for the forklift driver but also for everyone in the surrounding area. Part of the OSHA pre-operation inspection for the operator is to check the tire condition and pressure including looking for cuts and gouges. Sometimes these items get overlooked, so tires are another item that your technicians and CSSR’s can be looking to quote and sell replacements to your customers. Finally, let’s discuss forks. Per OSHA standards, forks should be part of the pre-operation inspection. Forks that are not in good working order must be replaced. Forklifts should not be operated if the forks show any defects such as surface cracks, blades are not straight, the difference in height of fork tips, excessive fork hook wear, etc. Another great device for your technician or customer service sales rep to have is a fork wear caliper. This device allows your tech or CSSR to measure the fork blade wear, the fork hooks, and the fork angle. The fork angle deviation must be within a margin of 3 degrees. That means that the angle between the blade and the shank must be between 87 and 93 degrees. When the fork angle is outside of this degree range, the forks must be replaced. Furthermore, OSHA standards state that forks with 10% or more wear to the blades must be removed from service. Being equipped with this fork wear caliper device will allow them to show the customer the fork wear and quote the service labor and parts required to replace the forks. Operator Training According to OSHA standards, only trained and competent operators shall be permitted to operate a powered industrial truck. All powered industrial truck operators must be trained and certified to operate the equipment legally. Additionally, re-certification is required every three years. Many of the customers you sell to will not have their own in-house trainers and may be looking for a third party to meet these operator training requirements. Many lift truck dealers already have this training as part of their product and service offerings to their customers. If your organization does not currently offer this service, I recommend looking into exploring it. This value-added service will not only drive revenue to your dealership but also drive customer loyalty to your brand and your organization. Celebrate and promote National Forklift Safety Day this month, your customer-facing sales, service, and parts teams can create awareness and shine the light on forklift safety to your customers. The safety of your customers is a
Continental introduces NightViu® LED Working Lights
Robust and durable housings stand up to intense vibration, harsh conditions Uniform illumination improves visibility, reduces shadows The range includes ultra-wide, wide, flood, and spot beam patterns Low power consumption, high energy efficiency Continental, a global supplier of systems, components, and tires to automobile, truck, and agriculture/construction equipment manufacturers, and a trusted provider of OE-engineered aftermarket parts has introduced 16 new, premium working lights as part of the company’s NightViu® Lighting Solutions line. Engineered for use in construction, mining, and off-highway equipment applications, these new NightViu® Working Lights have been designed to help improve job site safety by dramatically increasing nighttime visibility. NightViu® LED Lights are built to withstand the harsh conditions found in construction, mining, and agriculture worksites. They feature rugged aluminum die-cast housings with cataphoretic coating, and resilient shatterproof polycarbonate lenses protect the advanced LED light sources. NightViu® Working Lights feature an integrated electronics driver and thermal management system to allow them to operate safely from -40°F to +190°F. They’re rated IP6K8 / IP6K9K for resistance to impacts, dust, and high-pressure water. The lights’ advanced LED technology delivers exceptional energy efficiency. They produce approximately 100 lumens per watt and have been designed to ensure that they do not create electrical interference that could affect the vehicle’s existing electronics. Working Lights for near and far With a choice of ultra-wide, wide, flood, and spot beam patterns, NightViu® Working Lights enable operators to spot obstacles and hazards around the entire job site. Each of the Working Lights beam patterns is offered in a choice of 1,500, 2,500, 3,500, and 4,500-lumen performance for a total of 16 lights in the NightViu® Working Lights range. “These new NightViu® Working Lights raise the standard for versatility and durability,” notes Edwin Betancourt Jr, Product Manager, Continental. “With three mounting options, integrated connectors, and 16 lighting variants, they can be easily integrated into any vehicle application.”
Robroy Industries® appoints Sean Dyer as East Coast Business Development Manager
Robroy Industries® has introduced Sean Dyer as its East Coast Business Development Manager. Mr. Dyer previously served as the North American Sales Manager for VJ X-ray, a global leader in manufacturing integrated X-ray sources and high-voltage generators. Other prior experience included service as CRM and Regional Sales for Powertech Controls plus more than a decade with Rittal Enclosures. “Sean represents a well-balanced, proven professional history of technical expertise and sales talent,” says Craig Mitchell, President of Robroy Industries, Enclosures Division. “He is exactly the right person to help expand our business to the benefit of the many industry sectors we serve with our diverse non-metallic enclosures.” Through its Stahlin and AttaBox brands, Robroy Industries offers the most extensive selection of non-metallic enclosures available for meeting the needs of diverse industries, delivering time- and labor-saving solutions, non-stop innovation, and superior product performance in interior and exterior applications. The Enclosures Division is a subsidiary of Robroy Industries, serving the electrical products marketplace under one family ownership since 1905.
Motion names new Senior Vice President and CFO
Motion Industries, Inc., a distributor of maintenance, repair, and operation replacement parts, and a premier provider of industrial technology solutions have announced the promotion of Patrick Cummings to Senior Vice President and Chief Financial Officer, effective immediately. Mr. Cummings graduated from the University of Alabama at Birmingham in 2006 with a Bachelor of Science in accounting. He began his career with Ernst & Young in 2006. In 2011, he moved from public accounting to industry, joining Walter Energy as their Internal Audit Manager. He joined Motion in 2012 as AVP of Corporate Compliance. Since then, he held the position of U.S. Controller from 2014-2019, before becoming VP of Financial Planning & Analysis, until he was asked to serve as interim CFO after Greg Cook, Motion’s previous CFO, moved to the U.S. Automotive Group at Genuine Parts Company (GPC). “Patrick will become a vital part of the Motion executive team, leading Motion to achieve our financial goals in the coming years,” said Randy Breaux, Motion’s President. “His promotion is well deserved. It makes me extremely proud and happy that after a nationwide search, the Motion candidates proved to be the ‘best in class,’ which says a lot about Motion, our succession planning/process, and our teammates.” Mr. Cummings will report directly to Mr. Breaux. He will also work closely with Bert Nappier, EVP and Chief Financial Officer of GPC, and the CFOs of the other GPC business units worldwide.
ATC Diversified Electronics introduces MPA2
Upgraded motor protection analyzer measures, analyzes, and reports critical performance information The automation experts at ATC Diversified Electronics, a maker of devices for automation, motor protection, process monitoring, and power quality, have introduced the new MPA2 motor protection analyzer. MPA2 is a micro-controlled three-phase motor protection analyzer specifically designed to protect electric loads and motors from failure and damage due to common current and voltage faults. The new MPA2 has some major upgrades over the original version. New features include a two-line, 16-character LCD display for greater specificity and higher-quality information, four front panel push buttons for operation/protection, standard RS485 Modbus RTU communication protocol, flexible DIN rail or surface mounting options, UL94V0 enclosure material, and access to a wide variety of reports. Plus, all of this is available at a lower cost than the original! Protecting an investment in machinery is critical to all functions of an organization, as maximized uptime impacts profits, quality, and customer satisfaction. A reliable, cost-effective method of monitoring motor health – and deactivating power before a potential problem becomes catastrophic – is a necessity. The MPA2 constantly supervises current and voltage values. When any harmful condition occurs, the output connection is deactivated until the fault disappears, power line conditions return to an acceptable level, and the motor has been totally cooled. The MPA2 measures, analyzes, and reports critical information such as current, voltage, frequency, power factor (PF), reactive power (KVA), real power (KW), and energy consumption (KWH). Charting performance history enables more-informed scheduling of future maintenance.
G-Tek work gloves: Hand protection meets dexterity
Warehouse workers have a demanding job that requires constant material handling and operation of machinery. To ensure their safety, workers need reliable protective gear, including work gloves that offer the necessary protection and dexterity to perform efficiently. G-Tek® work gloves are designed to meet these needs by offering a breathable string knit glove with coated palms and fingers. These features allow protection that is perfect for a warehouse environment but offers more grip and finger dexterity. The G-Tek® GP series is a popular budget-friendly glove for box handlers and light-duty warehouse work. Its seamless knit nylon shell offers increased comfort, breathability, and an ANSI cut rating of 1. Like most G-Tek® gloves, the GP is coated with polyurethane for added grip. If the GP series doesn’t quite fit your needs, G-Tek® offers dozens of options for almost any work environment. Foam-coated, touch screen, impact, and cut resistant (up to ANSI 9) are just a few notable styles.
Taking a page from the video game industry to generate reoccurring revenue
If you play video games or have children that play modern-day video games, without even thinking about it, you are familiar with the video game industry’s revenue model. You are especially familiar if you are the one footing the bill for your or your children’s video game play. The old-fashioned business model for gaming has been the console model. Video game console manufacturers sell their gaming consoles usually at cost or very low margin while making money by selling high-priced games. The rise of online gaming, especially as high-speed internet has become an everyday commodity in households, has further diversified the revenue models for video game companies. One of these revenue streams is the subscription model, where a game requires continuous payments to play the game. Another revenue stream is what is called microtransactions, where there are features or aspects of a game that the player can purchase to upgrade gameplay or attain digital goods or premium features of the game. Again, if you are into gaming or have children into gaming, you are probably all too familiar with these microtransactions if it is your credit card being billed. While companies might not necessarily be making high margins by selling consoles, or even if they provide some free-to-play games, these revenue streams outlined above continue to remain lucrative. Now you are probably wondering what that has to do with the material handling industry and lift trucks. I wanted to draw the parallels between the revenue streams in the video game industry to the revenue streams within a traditional lift truck dealership. Think of the lift truck as being the gaming console for the purposes of this article. The sale of a new lift truck can lead to years of service maintenance and replacement parts business for the dealer. As defined by MHEDA, the material handling aftermarket is the add-on revenue source from industrial truck equipment sales; parts, after-sales service, and rental fleet operations. So compare the subscription and microtransaction revenue models I mentioned at the beginning of this article for the gaming industry to the lift truck dealer’s subscription and microtransactions. They can include but are not limited to field service repair, preventive and/or planned maintenance, annual safety inspections, service shop work, sales of high mortality rate/high-wear parts and accessories, component replacements, rebuilds or remanufactured parts, and service and maintenance contracts. According to the MHEDA data, a typical lift truck dealership revenue mix consists of the following: New Equipment Sales: 29.2% Used Equipment Sales: 7.9% Parts: 18.4% Service: 20.4% Rental Billings: 14.4% Other Revenue (not listed above): 9.7% According to the same MHEDA data, the gross margin from new equipment sales for a typical dealership is 8.7% whereas the gross margin for parts sales is 34.9%, and the gross margin for service is 62.6% Tight margins on the new equipment, similar to the console in the video game industry model I described earlier in the article. As the MHEDA data shows, the sale of parts and services is critical to the profitability of the dealership. This is especially true with the current climate of our industry. Extended lead times from new equipment manufacturers have led to the life of the older equipment within the market being extended past its normal operating life. This has led to an increase in parts and services needed to maintain the equipment that would normally be replaced during the normal equipment life cycles of your end-customer. While new equipment manufacturers and lift truck dealers are aware of the importance of aftermarket/after-sale parts and services as shown in the data above, many dealers sometimes struggle to differentiate the role of an equipment salesperson and the role of a customer service sales rep. Too often I see these roles rolled up into one function, where I believe these roles should always be separate functions and separate salespersons. Where an equipment salesperson’s objectives are the targeting and identifying of new equipment opportunities, along with quoting and selling of new/used equipment, if they are also tasked with providing aftermarket parts and service support that could lead to not having enough focus on one function over the other. I believe having dedicated customer service sales reps will allow your dealership to provide focused and professional aftermarket parts support, along with dedication to targeting and obtaining service agreements and the upselling of service repair quotes. Well-defined customer service sales rep function includes but is not limited to targeting accounts to develop and ensure aftermarket sales, ensure the growth of a dealer’s existing service accounts, and develop new and maintain existing rental equipment customers. This dedicated function aligns with the dealer’s workflow to ensure a steady stream of service, rental, and parts business while working cross-functionally with said departments within the dealership. Having this dedicated customer service sales rep function allows the for the new/used equipment sales rep to focus on the functions of selling equipment. In addition, as with the sale of new/used equipment to your end-customer leading to service maintenance and parts sales for your dealership, you could also see how targeting new customers through a dedicated customer service sales rep can also lead to the future sale of new/used equipment to those end-customers as well. Combining this with a great customer experience as I discussed in last month’s article, will lead to the continued growth of these revenue streams for your dealership. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 16-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.
Monarch Brands joins Hospeco Brands Group
The move creates a multi-market juggernaut; adds whole product lines, expands microfiber and wiping product offering Two powerful market leaders are joining together to form one powerhouse partnership. Hospeco Brands Group, a United States-based, full-line manufacturer of personal care, cleaning, and protection products to serve the janitorial, industrial supply, automotive, foodservice, healthcare, and hospitality markets, is announcing a merger with Monarch Brands, wholesalers and manufacturers of microfiber, commercial laundry linen, institutional textiles, and wiping products. The move dramatically expands Hospeco Brands Group’s offering of wiping solutions and microfiber and adds complementary new lines to an already robust product mix. With roots established in 1947, Monarch Brands is headquartered in Philadelphia, Pennsylvania, and delivers high-quality and value-priced textiles from manufacturers located in 10 nations around the world in Asia, Europe, and Central America. Monarch Brands’ products serve diverse markets, including environmental services, hospitality, institutional, food service, industrial, and janitorial/sanitary, with deep penetration in the whole of North America. Unlike other Hospeco Brands Group brands, Monarch Brands has a solid retail presence with trademarked lines, from opening price points to luxury textiles, in the Americas and around the world. The move adds complementary product lines to Hospeco Brands Group, with some strategic overlap that further deepens the microfiber and wiping product offering. It also creates opportunities for mutual growth as both entities gain new products to offer existing customers. “Joining forces with Monarch Brands exponentially strengthens the position of Hospeco Brands Group in the microfiber and wiper segments — gaining us a near leadership share,” said Bill Hemann, executive vice president of Hospeco Brands Group. “Similarly, Monarch gains the ability to sell Hospeco Brands Group’s complementary products. We are perfect partner brands with aligned goals —providing meaningful product solutions and services through the commercial distribution community that help ensure clean, safe, and productive environments and provide care and comfort to millions around the globe. Our now-shared customer base will immediately recognize the value of our combined resources.” Said Hal Kanefsky, president of Monarch Brands, “This merger is the natural evolution for the growth of Monarch Brands and Hospeco Brands Group. Together, we bring complementing products and talents into a single focus point to benefit all stakeholders. The collective product bundle positions us as an industry leader throughout North America. We are proud to be the newest member of the Hospeco Brands Group and we look forward to growing together in the future.” All key management and sales staff will remain with Monarch Brands. Existing shared distribution in certain key markets is expected to accelerate market penetration. There are no changes to existing customer relationships at this time. To learn more about Hospeco Brands Group’s full line of personal care, cleaning, and protection products to serve the janitorial, industrial supply, food service, healthcare, and hospitality markets—visit www.hospecobrands.com/home.
Bally Ribbon Mills announces 100th Anniversary
Family lead business celebrates a century of textile innovation Bally Ribbon Mills (BRM), an industry provider in the design, development, and manufacture of highly specialized engineered woven fabrics, announces its 100th Anniversary. Since BRM’s founding in 1923 as a custom textile manufacturer in Bally, PA, the company has provided products for aerospace, defense, medical, safety, automotive, commercial, and industrial applications used around the world. A small representation of BRM’s accomplishments over the past century includes the production of goods for the war effort in World War II, maintaining a continuous ISO quality program for close to 30 years, and numerous contracts, including with the U.S. Military, Department of Defense, and NASA. BRM’s work with NASA includes using composite material in the construction of the heat shield used on NASA’s Orion spacecraft. BRM has been praised by NASA for its ability to answer every specification and challenge. “As a family business, Bally Ribbon Mills is extremely proud to be a trusted partner by some of the largest, well-known companies and agencies from around the world,” said Mark Harries, Vice President, at Bally Ribbon Mills. “Our success has been based on a long-term vision of growth, built around our high-quality engineered fabrics manufactured in America, our skilled employees, and our reputation as a trusted advisor to customers. We will continue to stay at the forefront of technology for all of the industries we serve, just as we have over the past 100 years.” BRM continues to expand and innovate at its Bally, PA facility through the addition of new equipment, departments, and employees.
TVH hit by cyber attack
On Sunday, March 19, parts specialist TVH determined that it was the target of an organized cybersecurity attack. The attack allowed hackers to partially encrypt the company’s systems. As a result, TVH experienced problems accepting, processing, and sending orders via its web platform. TVH took immediate action, suspending affected systems, notifying authorities, and activating internal and external experts to resolve the situation. After a TVH investigation of the cyber attack indicated that cybercriminals had access to data. Their investigation is still ongoing, but so far, they have not found any indication that the data is public. In a statement, TVH said they are very serious about the confidentiality of its employees and their business partners’ data and understand that this might be of concern to them. 3rd-party cyber forensic experts continue to thoroughly investigate this attack and TVH will make updates when they have further insight. Secondly, TVH believes there is good news as well. After an extensive investigation by 3rd-party cyber forensic experts, they did not find any indication that other connected networks were affected by this attack. “We continue to work hard on the recovery of our systems to be operational as soon as possible. We’re also taking in the meantime many preventive measures to reinforce our IT environment to the maximum” the statement continued. “We are confident that we will come back stronger than ever.”
New Source Forklift Parts, Inc
TVH promotes new Sales Manager for Latin America
TVH Americas, a global provider of quality replacement parts and accessories for the material handling, industrial, and construction equipment industries, has announced that Adolfo Gutierrez has been promoted to the position of Sales Manager for Latin America. Adolfo began his career at TVH as the Sales Manager for TVH Mexico, where he distinguished himself with his dedication to providing excellent customer service to our customers. His hard work and professionalism have been vital in growing TVH’s presence while maintaining strong customer relationships. In his new position, Adolfo will oversee the Latin America Sales Team. His primary role will be helping to provide quality parts and service to customers located in Central America, the Caribbean, and South America, while also leading TVH’s efforts to drive sales growth and enhance the customer experience in these regions. “Adolfo is an enthusiastic, results-driven professional who is committed to delivering the highest level of customer service and satisfaction. These qualities make him a great fit to take the lead in continuing to ensure TVH remains the one-stop-shop for our customers,” said Jeannette Walker, Vice President of Sales, TVH Americas. “I am delighted to welcome Adolfo to the Latin America Sales Team and look forward to the contributions he will make in this new role.”
OIL EATER® launches award-winning overnight stain remover
KAFKO International, Ltd., manufacturers of Oil Eater® Cleaner/Degreaser announces OIL EATER® OVERNIGHT STAIN REMOVER. With 30+ years of experience marketing cleaning products to heavy-duty users, Kafko has unique insight into the toughest problems these customers face at home and at work. By listening to these customers, we discovered a gap in the market for products that can effectively treat oil & grease stains on porous surfaces like concrete, asphalt, and brick. Traditional cleaners struggle with these types of surfaces, which is why so many driveways and garages are covered with unsightly oil stains from a leaky vehicles. Using Kafko’s expertise in oil cleaning technology, Oil Eater is introducing the first concrete cleaner that uses oil-eating microbes to clean deep beneath the surface and effortlessly restore driveways & garages to a like-new appearance. This product has made an early splash with industry professionals who voted Overnight Stain Removal a winner of the 2022 AAPEX New Product Showcase. Quick Facts: 2022 AAPEX New Product Showcase Winner Oil-eating microbes clean beneath the surface Pulls out oil stains in 3 effortless steps: apply, dry & sweep away Helps restore concrete, brick, asphalt & more Restores fuel pads, parking garages & driveways in 12 hours
Customer experience
When I started writing for Material Handling Wholesaler, I originally assumed the reader audience would be only those that have been in the material handling industry for many years like myself. However, what I did not think about was the new and younger workers entering our industry along with the workers that have recently pivoted to our industry for the first time. A mentor of mine once told me, ‘Be a student of the industry,’ so fittingly this month’s edition will be one that I hope serves both the mix of workers entering our industry for the first time along with those that have been in it for many years. Therefore, with that, I thought a good topic for this month would be The Customer Experience, a topic that everyone can relate to whether it be in the B2B or B2C space. When explaining the customer experience touchpoints of our industry’s service and parts sales to those new or unfamiliar with the material handling space, I often point to parallels in the automotive industry. I ask them, ‘What OEM brand vehicle do you drive? What made you choose where you bought your vehicle? When your vehicle needs service, repair, or parts, how do you choose where to go or who to use for service and parts?’ Knowing they drive OEM brand ‘X’, they know there are multiple OEM dealers of that brand within their town, and they know that there are also many independent service providers and a variety of auto-part stores also to choose from. Understanding this framework makes it easy to translate to our industry when explaining after-sales service and parts for lift trucks and other industrial equipment. So what separates each of the service providers or parts resellers? One of the main differentiators is the customer experience provided by these providers. Customer experience is not just a ‘buzz’ word in a B2B or B2C business strategy. In addition, it is not just a marketing or communications function. Simply defined, the customer experience refers to how your business engages with your customer throughout their journey of purchasing a product or service. The products or services your company sells to your customer and your people that provide the product or service from your business to your customer are the two primary interactions your customer has with your company. So, if the product or service that you are competing to sell in your market with your competitors is similar or the same (lift trucks, maintenance services, replacement parts, etc.) then the differentiating factor between the competitors for the interaction with the target customer are your people. Everyone in your company, no matter the department, will have an effect on your customer experience. These interactions with the customer can be direct or indirect and not limited to only your customer-facing teams (i.e., sales, service, rental, and parts departments). Therefore, it is imperative for all employees within your organization to be engaged with the customer experience vision within the organization. Let us focus on the customer experience regarding a service repair request. The way a customer can request service has evolved over time. Many organizations have deployed an omnichannel approach to the way a customer can request a service repair aside from the traditional phone call request. This omnichannel experience will include the traditional model but also, app-based options and online platforms. For example, the use of the company website to submit a service request continues to be more prevalent in our industry. From the use of online chat, and online service request form submission, to the use of messaging apps that link a customer directly with their contact within a service department. As I described in a previous article regarding digital strategy, this truly does bring the B2C experience that your customer expects in their everyday life to the B2B world. What does this experience look like within your organization? Even if you are not equipped with these various mediums, how you interact with your customer from the time of the service request to the start and completion of the repair to the invoicing and collection of payment are all interactions that you can differentiate from the competition and provide an outstanding customer experience. It is imperative that everyone in your organization values the customer and understands that a positive customer experience will keep your customers loyal to your organization and brand. They must also understand the correlation between the quality of after-sales service your organization provides is a factor in repeat business of service, parts, and equipment sales with your customer. As I wrote in my December edition, I believe the lift truck industry is currently comprised of a few categories: Factory Stores, Independent distributors, Mega Dealers, and Third Party Service Providers. All four of these are competing for the same end-customer, so recognize that the difference in the quality of the service provided after-sale is the differentiating factor of your customer loyalty and future purchases. Nonetheless, it does not matter big or small, 10 employees or 100 employees, providing a great customer experience is important to the continued growth of your business. Although you may or may not have the resources to deploy a dedicated customer experience (CX) team or officer, your organization’s customer experience vision should be part of the fabric of your onboarding and training of new employees and continuing education for existing employees in all departments within your organization. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 16-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.
Myers Industries announces Fourth Quarter and Full Year 2022 Results
Record Top-and-Bottom Line results delivered for four consecutive quarters outlook for sustained revenue growth in fiscal 2023 Myers Industries, Inc., a manufacturer of a wide range of polymer and metal products and distributor for the tire, wheel, and under-vehicle service industry, today announced results for the fourth quarter and full year ended December 31, 2022. Fourth Quarter 2022 Financial Highlights: Net sales of $213 million, up 7% versus the prior year period GAAP EPS of $0.36; Adjusted EPS of $0.32, up 39% versus the prior year period Cash flow provided by operations of $22 million and free cash flow of $15 million The full Year 2022 Financial Highlights: Net sales of $900 million, up 18% versus the prior year period; Organic net sales up 10% GAAP EPS of $1.64; Adjusted EPS of $1.68, up 73% versus the prior year period Cash flow provided by operations of $73 million and free cash flow of $48 million Myers Industries President and CEO Mike McGaugh said, “2022 was a strong year as Myers posted record results in each quarter with robust top-and bottom-line growth, serving as proof that our 3-Horizon strategy is working. We continued to generate healthy margins and strong cash flow from the initiatives we took throughout 2022. In addition to improving the company, we also made two acquisitions during the year, adding scale to our Distribution Segment with Mohawk Rubber and enhancing our Material Handling Segment with the addition of a rotational molding facility in Decatur, Georgia. Our team continues to do a nice job growing and transforming the company.” McGaugh continued, “While recognizing that 2022 was a year of record results, I’m excited about Myers’ future because I continue to believe that the company still has significant unrealized potential. We can see the opportunity and we have the right people in place to capture it. We are now working to institutionalize our improvements into an operating system. In 2023, we will implement the “Myers Operating System” to make sure our improvements are ingrained, lasting, and scalable. The Myers Operating System will drive standard work processes across the company, ensuring that best practices are applied across all of our legacy business units as well as our new acquisitions. I am confident the Myers Operating System will further Myers on its journey to become a world class company. I believe there is still a long runway for our company and significant value creation opportunity for our shareholders.” Fourth Quarter 2022 Financial Summary Quarter Ended December 31, (Dollars in thousands, except per share data) 2022 2021 % Inc (Dec) Net sales $212,840 $199,579 6.6% Gross profit $65,074 $51,816 25.6% Gross margin 30.6% 26.0% Operating income $17,022 $10,750 58.3% Net income: Net income $13,428 $7,255 85.1% Net income per diluted share $0.36 $0.20 80.0% Adjusted operating income $16,485 $12,468 32.2% Adjusted net income: Net income $11,797 $8,369 41.0% Net income per diluted share $0.32 $0.23 39.1% Adjusted EBITDA $22,101 $17,601 25.6% Net sales for the fourth quarter of 2022 were $212.8 million, an increase of $13.3 million, or 6.6%, compared with $199.6 million for the fourth quarter of 2021, primarily driven by incremental sales of $17 million from the Mohawk Rubber acquisition in the Distribution Segment. On an organic basis, higher pricing was offset by lower volume/mix. Gross profit increased $13.3 million, or 25.6% to $65.1 million, primarily due to continued benefits from pricing actions, lower material costs and the Mohawk Rubber acquisition, partially offset by lower volume and a change in sales mix. While we continue to experience cost inflation, we were able to successfully offset it through our self-help initiatives, including cost reductions. Gross margin expanded to 30.6% compared with 26.0% for the fourth quarter of 2021. Selling, general and administrative expenses increased $6.1 million, or 14.8% to $47.4 million due to the Mohawk Rubber acquisition, higher variable selling expenses, salaries, and incentive compensation. SG&A as a percentage of sales increased to 22.3%, compared with 20.7% in the same period last year. Net income per diluted share was $0.36, compared with $0.20 for the fourth quarter of 2021. Adjusted earnings per diluted share were $0.32, compared with $0.23 for the fourth quarter of 2021. Fourth Quarter 2022 Segment Results (Dollar amounts in the segment tables below are reported in millions) Material Handling Net Sales Op Income Adj Op Income Adj Op Income Margin Q4 2022 Results $142.2 $20.9 $21.0 14.7% Q4 2021 Results $147.3 $12.3 $13.2 9.0% Increase (decrease) vs prior year (3.4)% 69.7% 58.4% +570 bps Net sales for the Material Handling Segment during the fourth quarter of 2022 were $142.2 million, a decrease of $5.0 million, or 3.4%, compared with $147.3 million for the fourth quarter of 2021. Net sales increases in the food and beverage and consumer markets were more than offset by decreases in the vehicle and industrial markets. Operating income increased 69.7% to $20.9 million, compared with $12.3 million in 2021. Adjusted operating income increased 58.4% to $21.0 million, compared with $13.2 million in 2021. Contributions from pricing actions and lower material costs more than offset lower sales volume and a change in sales mix. Additionally, SG&A expenses were higher year-over-year. The increase in SG&A expenses was primarily due to increased variable selling expenses and higher incentive compensation costs. The Material Handling Segment’s adjusted operating income margin increased 570 basis points to 14.7%, compared with 9.0% for the fourth quarter of 2021. Distribution Net Sales Op Income Adj Op Income Adj Op Income Margin Q4 2022 Results $70.6 $3.4 $4.1 5.8% Q4 2021 Results $52.3 $5.4 $5.4 10.3% Increase vs prior year 35.0% (37.2)% (24.0)% -450 bps Net sales for the Distribution Segment during the fourth quarter of 2022 were $70.6 million, an increase of $18.3 million, or 35.0%, compared with $52.3 million for the fourth quarter of 2021. Excluding the incremental $17 million of net sales from the Mohawk Rubber acquisition, organic net sales increased 2%. Operating income decreased 37.2% to $3.4 million, compared with $5.4 million in 2021. Adjusted operating income decreased 24.0%