Manufacturers and Dealers need to embrace a new set of opportunities in 2025
As another December has arrived and 2024 winds down, you may be reflecting on a year filled with growth, innovation, and evolving challenges that you are facing in the industry and your local market. The close of one year offers a unique opportunity to assess the past and set sights on the future. Looking ahead to 2025, it’s clear that the industry will continue to face rapid changes, from advancements in technology to shifts in customer expectations. With these changes comes a new set of opportunities and challenges, and both OEMs and dealers are poised to navigate them through stronger partnerships, strategic innovations, and a renewed focus on sustainability and digital transformation. As we do each year in the December edition, we explore the critical dynamics of the manufacturer-dealer relationship. Let’s discuss how dealers can leverage their manufacturers’ strengths to drive revenue growth and foster innovation for the year ahead. This partnership, which was once primarily about sales and distribution, has evolved to encompass a broader, more strategic alliance that enables both OEMs and dealers to thrive in an increasingly complex marketplace. At its core, the OEM-dealer relationship is a mutually beneficial arrangement. OEMs depend on their dealer networks not only to sell products but also to provide essential after-sales services like parts, maintenance, and technical support. Dealers, in turn, rely on OEMs for product innovation, training, and support to meet the changing needs of their local customer base. This dynamic ensures that end-users receive the high-quality service and equipment necessary to keep their operations running smoothly. However, the nature of this relationship is changing. Technological advancements, shifts in customer expectations, and evolving market dynamics are pushing both OEMs and dealers to adopt new strategies and approaches. This includes deeper collaboration on everything from financing and warranty processes to addressing safety concerns and driving innovation in product development. Key Trends Shaping the OEM-Dealer Relationship As we look ahead to 2024 and beyond, several key trends are shaping the future of the OEM-dealer relationship. Understanding these trends is critical for both parties to stay competitive and continue providing value to their customers. New Truck Inventory and Rental Utilization Lift truck dealers face a significant cash flow challenge when OEMs demand new truck purchases for their rental fleets amid declining rental demand and rising interest rates on existing inventory. Increased depreciation expenses further aggravate these financial pressures, negatively impacting dealer profitability. As new equipment prices begin to fall, the dealer-OEM relationship becomes delicate. OEMs aim to keep production lines active, but dealers must balance managing high inventory costs with profitability. This highlights the fine line between keeping a strong partnership while facing market challenges and fluctuating demand. Increased Focus on E-Commerce and Digital Platforms I recently presented the importance of offering customers the option to purchase your products online at MHEDA’s Parts & Service Management Conference this past September. I discussed how dealerships can leverage e-commerce to enhance customer satisfaction and streamline the ordering process. Customers today expect a seamless, user-friendly experience when researching, purchasing, and maintaining their equipment. This shift toward digital solutions transforms the traditional OEM-dealer model, forcing both parties to invest in new technologies that enhance the customer experience. Dealers are increasingly adopting e-commerce platforms to streamline parts sales and service scheduling. Meanwhile, OEMs are developing digital tools that allow dealers to offer more personalized support to their customers. The result is a more efficient, customer-centric approach that meets the demands of a digital-first marketplace. The balance between the OEM and the dealer will be for those OEMs who already sell their products online and credit the dealer for the sale. How do those OEMs align with their dealers who already have their own stand-alone e-commerce platform? Data-Driven Decision Making Data is becoming an increasingly critical asset in the material handling industry, but dealers need better access to actionable insights from their OEMs to make informed, data-driven decisions. As the industry evolves, it’s not just about having data about having the right data in the hands of dealers to enhance decision-making and improve customer service. Having access to data on customer preferences and buying trends allows dealers to tailor their products and services more precisely, providing a personalized experience that fosters stronger customer relationships. Collaboration between OEMs and dealers, built on sharing robust, actionable data, is key to unlocking new revenue streams and staying ahead of customer needs. Sustainability and Environmental Responsibility Sustainability is no longer just a buzzword; it’s a driving force in the material handling industry. OEMs and dealers are pressured to reduce their environmental impact and adopt more sustainable practices. This includes everything from developing energy-efficient equipment to implementing eco-friendly service and maintenance practices. OEMs are increasingly designing products with sustainability in mind. Dealers are crucial in promoting these products and educating customers on the environmental and financial benefits of choosing more sustainable options. For example, by helping customers understand how the shift to electric can optimize fleet performance and sustainability, dealers are key drivers in accelerating the adoption of cleaner, more efficient technologies in the marketplace. Aftermarket Support Aftermarket support is becoming a more critical component of the OEM-dealer relationship. As equipment lifecycles lengthen and customers demand more reliable and cost-effective solutions, dealers are being called upon to provide a higher level of service and support throughout the equipment’s life. This trend drives OEMs to invest more in training and support for their dealer networks. By equipping dealers with the tools and knowledge they need to offer comprehensive aftermarket services, OEMs can ensure that their products continue to perform at a high level long after the initial sale. Rise of Direct Consumer Business Strategic partnerships between OEMs and dealers are becoming increasingly important, driven by the rising demand for direct-to-consumer (D2C) business. As consumers expect more direct and personalized interactions with manufacturers, OEMs, and dealers must collaborate closely to meet these demands. Traditionally, OEMs relied on their dealer networks for customer interactions, but the shift to D2C models is changing the landscape. Customers now expect direct engagement
Inaugural PTDA Foundation Employee and Student Scholarship Recipients announced
The PTDA Foundation recognizes the urgent need for skilled professionals in the power transmission and motion control (PT/MC) industry. As such, it is committed to helping PT/MC employers further the education of current and upcoming talent by introducing two new scholarship programs. “We developed the PTDA Foundation scholarships to promote the study of a power transmission or motion control-related field in engineering, technology, or business. The PTDA Foundation was pleased by the reception and the number of employee and student scholarship applications received for our inaugural year of this program,” explained Matt Pavlinsky, PTDA Foundation President. The employee scholarship provides recipients with $2,500 to continue their education for further advancement in their PT/MC career. The 2024 recipients are: Kylie Hester, Regal Rexnord Ohio University, master’s of Business Administration Tom Ley, NORD DRIVESYSTEMS Madison College, professional certification in Project Management Brian Malambwe, Regal Rexnord Purdue University, bachelor’s degree in Engineering Science Emily Soller, Regal Rexnord University of Wisconsin-Madison, master’s of Business Administration “This scholarship will further my career by giving me the tools necessary to best facilitate projects,” says Tom Ley of Regal Rexnord, employee scholarship recipient. “It will help me become a value-added employee and learn how to better interface with professionals. My Project Management Professional certification will also help me provide excellent customer service by providing on time deliverables to our customers.” The student scholarship provides recipients with $3,000 toward their education in a PT/MC-related field. The 2024 recipients are: Josh Bourbeau, Bismark State College Field of Study: Engineering Justin Christensen, University of Nebraska Kearney Field of Study: Supply Chain Management/Technical Sales David Dell, Adrian College/North Dakota University Field of Study: Mechanical Engineering, Physics Caden Palamar, Frostburg State University Field of Study: Mathematics, Engineering Ria Sharma, Texas A&M University Field of Study: Engineering “What interests me about supply chain management and technical sales is the customer engagement and unique perspectives you gain from the people you interact with,” says Justin Christensen, student scholarship recipient. “Power transmission and motion control not only affect communities, but it also affects the world. This scholarship not only helps me financially, as I’m a first-generation college student, but it’s a great confidence booster.” Read more about each recipient online at ptworkforce.org/scholarships. Applications for 2025 scholarships will be available in January. The PTDA Foundation, funded solely by donations, was founded in 1982. Its core purpose is to champion education, outreach, and research initiatives relevant to the PT/MC industry that enhance industry stakeholders’ knowledge and/or professionalism and productivity. The PTDA Foundation is a not-for-profit, tax-exempt 501(c)(3) corporation; contributions are tax-deductible to the full amount allowed by law. For more information, visit ptworkforce.org.
Enhancing Safety in the material handling area with Linde Reverse Assist Radar for Forklifts
Forklifts are essential to the efficiency of warehouse operations, often moving heavy loads and navigating through narrow aisles. However, operating forklifts comes with inherent risks, especially when reversing. Studies have shown that more than half of all industrial truck accidents happen when the vehicle reverses. This is primarily due to the driver’s limited view of the rear and blind spots. The challenge intensifies when forklifts maneuver in busy and cluttered areas, where pedestrians, shelves, and other machinery create a complex environment. Addressing safety concerns about material handling equipment, Linde has introduced the Linde Reverse Assist Radar, a sophisticated assistance system designed to minimize the risk of collisions and ensure safer operations in intralogistics. The system’s high-precision sensors, intelligent detection algorithms, and active braking interventions provide robust protection for drivers, pedestrians, and the infrastructure around them. How Linde Reverse Assist Radar Works The Linde Reverse Assist Radar is a state-of-the-art system that leverages radar technology to monitor the area behind the forklift continuously. This solution detects both stationary and moving obstacles, evaluating the level of risk in real-time based on multiple factors, such as travel speed, steering angle, distance to the obstacle, and lifting height. When the system identifies a potential hazard, it initiates a multi-stage response. First, the driver receives acoustic and visual warnings, prompting them to check the surroundings. If the risk persists or escalates, the system actively intervenes by automatically applying brakes, bringing the forklift to a standstill. This automated braking is highly effective, with a deceleration force of up to 3 m/s², significantly more potent than comparable systems. A unique feature of the Linde Reverse Assist Radar is its ability to distinguish between relevant hazards and harmless objects. For example, the system disregards goods and static fixtures positioned near the path, like in a block warehouse. This precision minimizes unnecessary warnings and prevents unplanned stops that could disrupt workflow. The detection range is customizable to adapt to various warehouse layouts and safety requirements, allowing operators to fine-tune the system for optimal performance. The system can also be tailored to monitor specific areas at different speeds. It detects moving objects, such as pedestrians, when the forklift is traveling at walking speed, while static obstacles can be identified at speeds of up to 15 km/h. The Linde Reverse Assist Radar maintains high reliability across diverse environmental conditions, accurately detecting obstacles even in low-light or foggy settings. Its ability to recognize objects at knee height enhances safety by identifying partially hidden or crouched-down people. A Safer Working Environment with Linde Reverse Assist Radar In fast-paced and often congested warehouse environments, safety should never be compromised. The Linde Reverse Assist Radar is more than just a safety feature; it’s an intelligent system that proactively prevents accidents, protects people, and reduces damage to goods and infrastructure. With this advanced solution, Linde Material Handling sets a new standard for safety in intralogistics, providing operators and business owners with the peace of mind they need to focus on productivity without sacrificing safety. By minimizing the risk of reversing accidents and supporting drivers in challenging situations, this system not only safeguards human life but also ensures operational continuity and efficiency. About the Author: Yauhen Krutsko is the Editor-in-Chief at Truck1, a European marketplace for commercial vehicles and machinery. With extensive experience in the transportation and logistics sector, Yauhen is dedicated to providing expert insights, industry trends, and in-depth analyses to help businesses and professionals stay informed on the latest developments. To reach Yauhen, his email address is eugene_k@truck1.eu. This article was created with support from Truck1.
Mitsubishi Logisnext Americas donates two pallet trucks to Houston Food Bank
Donations set to help Houston Food Bank distribute more than 120 million nutritious meals annually Mitsubishi Logisnext Americas Inc. (Logisnext) has reaffirmed its commitment to “Moving the World Forward” by donating two motorized Mitsubishi Forklift pallet trucks to the Houston Food Bank (HFB). As one of the largest food bank in the nation, HFB plays a vital role in distributing food to those in need across southeast Texas. The donation event, held at the Houston Food Bank warehouse on November 4th, featured Logisnext President Ken Barina and HFB President/CEO Brian Greene. Together, they recognized the importance of this partnership and the critical role both organizations play in supporting hunger relief efforts throughout Greater Houston. These new pallet trucks will aid HFB in distributing more than 150 million nutritious meals annually to 18 counties in southeast Texas. “We are deeply committed to supporting the Houston Food Bank in their mission to combat hunger in our community,” said Ken Barina, President, Mitsubishi Logisnext Americas. “By providing these electric pallet trucks, we aim to enhance their ability to distribute food more efficiently, ensuring that more families in need receive the help they deserve. It’s an honor to contribute to such a vital cause and the Houston Food Bank in their efforts to make a positive impact in Greater Houston.” “Houston Food Bank provides more than 120 million nutritious meals annually to our 18-county coverage area, and all of this food flows in and out of our warehouse, making our equipment the workhorse that makes it possible,” says Brian Greene, president/CEO of Houston Food Bank. “This generous donation from Mitsubishi Logisnext Americas is providing additional equipment to better and more efficiently serve our community. Thank you for helping us to further our mission of providing food for better lives.” Earlier in the day, Logisnext employees actively supported Houston Food Bank by sorting food and packaging boxes. Logisnext employees have a strong tradition of volunteerism, and their hands-on involvement highlights their commitment to actively driving positive change by fostering a culture of service and community engagement within the company.
Seegrid terminates Product and Distribution Agreements with Raymond Corporation
Seegrid Corporation, a manufacturer of autonomous mobile robot (AMR) solutions for palletized material handling, today announced its decision to terminate its product and distribution agreements with Raymond Corporation (a division of Toyota), effective upon the conclusion of a ninety-day notice period. “This move will allow us to sell and service the full Seegrid-branded product line across all market segments rather than serving a large portion of the market through Raymond,” said Joe Pajer, Chief Executive Officer of Seegrid. “We are seeing more customers desire a direct relationship with Seegrid as we roll out our new lift truck products and release innovative technology enhancements across our product line.” The decision emphasizes Seegrid’s commitment to fostering lasting customer relationships throughout their automation journeys. With this change, Seegrid can guide all customers from initial consultation through implementation to operational excellence, ensuring a seamless experience backed by Seegrid’s best practices and experienced post-support teams. “We appreciate Raymond’s partnership in our earlier years,” added Pajer. “At the same time, we have carefully studied our business relationship with Raymond and concluded that we are in a better position to deliver the benefits of our innovative technology to all customers if we do so directly and with Seegrid-branded products only. We are very excited to make our full product line available to all customers. This shift in go-to-market strategy follows a year marked by record-breaking end-user sales, with particularly high demand for our advanced autonomous lift truck solutions” Pajer concluded.
CLARK Material Handling Company announced the New WSTX30 and WSTX35 Pallet Stackers
Built to Last and designed to transport up to 3,000 and 3,500 pounds, the WSTX is a compact alternative to sit-down forklifts CLARK Material Handling Company has announced the launches of the WSTX30 and WSTX35. Built to Last and designed to transport up to 3,000 and 3,500 pounds, the WSTX is a compact alternative to sit-down forklifts. This pallet stacker features power steering, a durable I-beam mast, and constant travel speed regardless of the truckload. Designed for use in logistics, manufacturing, and warehousing, key features of this new product include: 3,000 & 3,500 – pound lift capacity – for moving heavy cargo with ease Regenerative braking and brushless AC motor – minimizes downtime and maintenance Emergency Power Disconnect – shuts off system power to protect operator Ergonomic handle – with convenient access to all controls without lifting your hand Vertically-mounted motor and transmission – reduces downtime and noise while improving efficiency and performance Available for ordering through CLARK dealers, the WSTX30 and WSTX35 represent another “CLARK solution” for end-users to manage all their material handling needs. “The WSTX 30 & 35 pallet stackers are exceptional replacements to sit-down forklifts. These trucks are compact, durable, and can handle substantial loads while focused on operator comfort and reducing downtime,” said Brandon Bullard, Vice President of Sales.
Seegrid’s Lift RS1 AMR is the Future of Autonomous material handling
Seegrid manufactures autonomous mobile robot (AMR) solutions for palletized material handling, highlighting its Lift RS1 AMR. This autonomous lift truck is designed to transform material handling workflows, providing unmatched productivity, efficiency, and safety to manufacturing, warehousing, and logistics operations. Seegrid’s Lift RS1 AMR is capable of a 6-foot lift height, making it ideal for low-lift processes across the most prevalent industrial facility applications. A payload capacity of 3,500 pounds enables facilities to handle heavy loads more efficiently, boosting overall operational productivity. The RS1 demonstrates exceptional reliability, consistently performing tasks with precision and minimal downtime, ensuring seamless material handling operations. The RS1 has been built with the same proven technology stack, enabling Seegrid AMRs to log over 15 million autonomous production miles in customer facilities. With its vision-guided technology, Seegrid’s Lift RS1 can safely and reliably navigate even the most dynamic environments without requiring infrastructure such as magnets or reflectors. Moreover, the RS1 helps simultaneously address staffing shortages and respond to customer demands by providing facilities with a dependable autonomous solution. The RS1 features Seegrid’s pioneering Sliding Scale Autonomy, a unique-to-Seegrid innovation that blends the agility of autonomous mobile robots (AMRs) and the predictability of automated guided vehicles (AGVs). This allows the truck to navigate differently based on what is best suited for the specific customer application. Whether performing long-haul routes or dynamically executing picks and drops, the RS1 excels by providing both the predictability and agility required by modern manufacturing, warehousing, and logistics environments. Equipped with LiDAR-based SLAM technology, the RS1 plans dynamic routes based on real-time perception feedback, ensuring reliable picks and drops without explicit training. Sliding Scale Autonomy offers a capability unmatched by competitors, empowering customers to optimize their material handling workflows in ways traditional AMRs and AGVs cannot. Safety is a top priority for Seegrid, and the Lift RS1 offers 360° safety coverage. The truck has primary and secondary safety sensing capabilities, which is a standout feature in the industry. While many systems rely solely on primary obstruction detection, which can only sense objects within 6 inches of the ground, Seegrid’s secondary obstruction detection technology precisely scans the drop area before payload release. This guarantees an extra layer of safety, ensuring accurate pallet drops and reducing the risk of errors. Seegrid continues to deploy its proven and trusted AMRs in live customer environments—with hundreds of successful deployments and thousands of AMRs—all transforming how customer facilities operate without a single reportable or recordable safety incident. Beyond offering pioneering autonomous solutions, Seegrid prides itself on its ongoing service and support, proven implementations, and industry-leading ROI. Supporting more than 50 global brands, Seegrid continues revolutionizing how facilities operate. As seen in one customer manufacturing facility, more than a hundred Seegrid AMRs are responsible for nearly 80% of their non-conveyed material moves, cutting inventory levels by up to 30% and expected to deliver positive ROI in less than 18 months. With fast deployment times of weeks, not months, the RS1 can be fully integrated into facility operations without disrupting existing workflows, allowing its benefits to be experienced almost instantly. The Lift RSI AMR is designed to meet and exceed the ever-increasing demands of today’s modern manufacturing, warehousing, and logistics industries, which rely heavily on palletized material handling. Seegrid’s pioneering autonomous lift trucks continue to bring real value to customers today. As industry innovators, they will continue developing new technology to enable their customers to automate their material handling workflows more than ever before.
Cyngn completes initial deployment of DriveMod Tugger with a major defense contractor
Cyngn Inc. announced that it successfully deployed its DriveMod Tugger at a defense contractor’s facility. While details are not being disclosed for security reasons, the engagement highlights the applicability of Cyngn’s autonomous vehicle technology to address the rigorous operational needs of defense industry manufacturing applications, which can be particularly stringent work environments with high associated costs. The aerospace and defense industry continues to be a significant economic force in the United States. In 2023, the industry generated an impressive $955 billion in total business output, showcasing its substantial economic impact. The sector employs over 2.2 million people, representing about 1.4% of the nation’s total employment base.
KION Group achieves strong results and increases profitability in the first nine months of FY 2024
KION Group achieves strong results and increases profitability in the first nine months of FY 2024 Revenue up 1.1 percent to € 8.435 billion (2023: € 8.347 billion) Adj. EBIT improves 16.6 percent to € 666.7 million (2023: € 571.9 million) Adj. EBIT margin increases to 7.9 percent (2023: 6.9 percent) Free cash flow rises to € 431.3 million (2023: € 329.3 million) Outlook for 2024 confirmed with further narrowed bandwidths The KION Group significantly improved its profitability in the first nine months of the financial year. The company achieved an adjusted EBIT of € 666.7 million (2023: € 571.9 million) on the back of € 8.435 billion (2023: € 8.347 billion) in revenues. Consequently, the adjusted EBIT margin increased 1.0 percentage point year-on-year to 7.9 percent. “Macroeconomic and political uncertainties continue to affect the business climate in the major economies of Europe, Asia, and the Americas throughout 2024. Against the backdrop of this challenging environment, we are well on track to achieve our targets for the financial year,” said Rob Smith, Chief Executive Officer of KION GROUP AG. ”With the confidence of a strong performance in the first nine months, we are narrowing the target bandwidths further and confirm our outlook for the year.” Total revenue in the Industrial Trucks & Services segment increased by 2.4 percent to € 6.305 billion (2023: € 6.160 billion), mainly driven by higher unit sales and improved prices. The service business grew revenues by 2.2 percent and accounted for 48.0 percent of external segment revenue – which was in line with the previous year (48.1 percent). In the Supply Chain Solutions segment, revenues came in at € 2.161 billion (2023: € 2.216 billion). The project business revenue declined by 12.1 percent, and the higher-margin service business grew significantly by 15.8 percent. The service share of external segment revenue grew to 41.5 percent (2023: 34.9 percent). The adjusted EBIT of the Industrial Trucks & Services segment rose significantly to € 672.9 million (2023: € 613.6 million). Revenue growth and stable material costs led to a significantly increased gross margin and an adjusted EBIT margin of 10.7 percent (2023: 10.0 percent). Adjusted EBIT also improved significantly in the Supply Chain Solutions segment, doubling year-on-year to € 70.5 million (2023: € 30.7 million). Higher earnings contribution from the service business, efficiency measures in project implementation and the progress in completing lower-margin legacy orders were the key drivers of adjusted EBIT improvement. The adjusted EBIT margin improved to 3.3 percent (2023: 1.4 percent). At € 255.6 million, net income was higher year-on-year (€ 228.3 million). This corresponds to undiluted earnings per share of € 1.90 (2023: € 1.70). At € 431.3 million, free cash flow was significantly higher than in the previous year (€ 329.3 million). Outlook confirmed with further narrowed bandwidths In the quarterly statement for the period ended September 30, the Executive Board of KION GROUP AG confirms the outlook. It has further narrowed the ranges for the Group and the two operating segments: A new member of the Supervisory Board appointed Dr. Sun Shaojun has been appointed to the Supervisory Board for the period until the end of the Annual General Meeting in May 2025. He succeeds Tan Xuguang, who retired from the Supervisory Board on September 16, 2024. Dr. Sun is an experienced leader with deep expertise in mechanical engineering and in the intralogistics industry. Since 2007, he is a member of the Board of Directors of Weichai Holding Group Co., Ltd. in Weifang, People’s Republic of China. “I would like to express our sincere thanks to Tan Xuguang. He has contributed his considerable expertise, strategic vision, and industrial foresight to our Supervisory Board during his tenure,” said Hans Peter Ring, Chairman of the Supervisory Board of KION GROUP AG. “At the same time, we are glad that Sun Shaojun and I have found a successor who is familiar with the business and KION’s markets in EMEA thanks to his many years of professional experience in Germany.” Since 2013, Dr. Sun has been a member of the Management Board of Hydraulics Drive Technology Beteiligungs GmbH in Aschaffenburg, Germany. He started his career in 1998 at Weifang Diesel Engine Works in Weifang, People’s Republic of China. Dr. Sun holds a PhD in Engineering from Tianjin University in Tianjin, People’s Republic of China. Continuity in the Executive Board – Ching Pong Quek appointed until 2030 The Supervisory Board of KION GROUP AG has extended the appointment of the incumbent CTO & President, KION ITS Asia Pacific, Ching Pong Quek, by a further five years until June 30, 2030. Quek began his career at the KION Group in 2006 as CEO of Linde (China) Forklift Truck Corp. based in Xiamen. Since 2008, he has been responsible for the Asian business of the Industrial Trucks & Services segment, and from 2021 until the end of 2023, he has been acting as President of ITS Americas as well. In 2024, he took on the role of Chief Technology Officer of the KION Group in addition to the Asian business. Quek has been a member of the Executive Board of KION GROUP AG since 2013. “Ching Pong Quek is the longest-serving member of the KION Group Executive Board and has been shaping the company for 19 years with his in-depth expertise in the material handling industry,” said Hans Peter Ring, Chairman of the Supervisory Board of KION GROUP AG. “CP will continue to play a key role in driving forward both ITS’s Asian business and the further development of the CTO organization.” Key performance indicators for the KION Group and its two operating segments for the first nine months of 2024 and for the third quarter ending September 30, 2024 in € million Q3/2024 Q3/2023 Diff. Q1-Q3/2024 Q1-Q3/2023 Diff. Revenue Industrial Trucks & Services Supply Chain Solutions 2,699 1,999 710 2,730 2,025 719 -1.1% -1.3% -1.3% 8,435 6,305 2,161 8,347 6,160 2,216 1.1% 2.4% -2.5% Adjusted EBIT [1] Industrial Trucks & Services Supply Chain Solutions 219.6 202.3 28.4 223.6 234.7 15.8 -1.8% -13.8% 79.6% 666.7 672.9 70.5 571.9 613.6 30.7 16.6%
Bobcat Company donates $885,000 in equipment to support The Salvation Army’s Disaster Relief Efforts
Donations of forklifts, portable generators, and light towers will enhance The Salvation Army’s disaster response efficiency and capacity The Salvation Army has received a significant equipment donation from Bobcat Company, a global equipment and worksite solutions brand, to support ongoing relief efforts in the aftermath of Hurricanes Helene and Milton and beyond. This donation, valued at $885,000, includes 23 essential pieces of equipment, such as forklifts, portable generators, and light towers, all vital for aiding communities impacted by natural disasters. These assets will be stored at The Salvation Army’s Emergency Disaster Services (EDS) warehouses and deployed across the Southeast, ensuring rapid and effective response to both the current and future disasters. The Salvation Army has often needed to rent much of this equipment in times of disaster, a costly and logistically challenging necessity, particularly during times of high demand following disasters. With Bobcat’s support, The Salvation Army can respond immediately without needing to source critical equipment during emergencies, enhancing its capacity to serve affected communities effectively. “This equipment will not only help with our immediate response efforts to Hurricanes Helene and Milton but will also save valuable time and money responding to future disasters,” said Commissioner Kenneth Hodder, National Commander of The Salvation Army. “Service delivery is severely impacted when critical equipment is unavailable during disaster operations, and this significant addition of operational equipment in our warehouses and the field is essential to ensuring the safety of our workers and in providing crucial services to survivors.” The Salvation Army’s EDS teams have provided emotional and spiritual care to more than 130,000 survivors throughout the Southeast since the hurricanes made landfall, as well as providing the following support: 580,000 meals and 370,000 snacks, 115,000 Ready-to-Eat meals, 88,000 food boxes, 280,000 drinks, 87,000 cases of water, and 86,000 clean-up kits. With Bobcat’s support, these critical services will continue as long as needed. Moreover, as The Salvation Army has a presence in many impacted areas, residents can rely on ongoing support as they rebuild their lives. “Bobcat equipment is often at the forefront of helping communities rebuild after natural disasters,” said Mike Ballweber, president of Doosan Bobcat North America. “Our collaboration with The Salvation Army allows Bobcat and our equipment to make an even greater impact, empowering The Salvation Army to maximize their efforts in doing the most good.” With this generous donation, The Salvation Army is better equipped to serve communities across the Southeast as they recover from the devastation of Hurricanes Helene and Milton and for rapid deployment in future disaster situations to help individuals and families in need. To learn more about how Bobcat is supporting communities, please visit bobcat.com. For more information on The Salvation Army’s hurricane relief efforts, please visit salvationarmyusa.org.
Toyota Material Handling partners with Bastian Solutions on 100th AutoStore installation
Toyota enhances its world-class parts distribution center with advanced AutoStore integration Toyota Material Handling unveiled a significant upgrade to its parts distribution center (PDC) at its Indiana headquarters on October 28 in collaboration with Bastian Solutions, part of Toyota Automated Logistics. This milestone marks Bastian’s 10oth AutoStore system installation, underscoring its automation expertise and enhancing Toyota’s capacity to process and deliver parts efficiently. “At Toyota, we will always be driven by what is best for our customers. This AutoStore integration will allow us to deliver parts to customers across North America faster than ever before, ensuring their forklift fleets are up and running when they need them most,” said Bret Bruin, Toyota Material Handling Vice President of Aftermarket Operations. “It’s amazing to see this project come together, in partnership with the teams at Bastian and AutoStore, to eliminate unnecessary waste and add efficiencies for the benefit of our customers.” The AutoStore integrates cutting-edge robotics, automation, and artificial intelligence into Toyota’s operations. In alignment with Toyota’s 2050 Vision for sustainability, the AutoStore system operates on rechargeable battery-powered robots, consuming energy only when in motion. The innovative system leverages vertical storage, maximizing unused space within the PDC. While the facility typically stocks an average of 55,000 stock-keeping units (SKUs), the new system dramatically increases storage capacity—from 40,000 to more than 128,000 storage locations—allowing Toyota to house more parts. This contributes to operational cost savings and indicates Toyota’s philosophy of Kaizen – or continuous improvement. “Today, we can reach over 80% of our customers with two-day shipping. Our goal is to reach 98% of our customers with next-day ground by 2030,” Bruin said. “This new AutoStore integration and enhanced Parts Distribution Center will play a significant role in helping us achieve that goal.” The AutoStore system minimizes manual labor by utilizing 28 autonomous robots that operate on a grid. These robots retrieve and deliver totes to four picking ports, each capable of processing up to 175 totes per hour. The system can fulfill up to 700 orders per hour, ensuring faster and more accurate order processing. AI-driven software strategically positions high-volume inventory for quicker access and provides real-time visibility to enhance operational efficiency further, ensuring Toyota Genuine Parts are readily available. The natural slotting system places low-volume parts at the bottom of the grid while keeping high-demand parts easily accessible to expedite order processing time. With the AutoStore system, Toyota ensures reliable order fulfillment, faster turnaround times, and improved customer satisfaction from its industry-leading North American dealer network. “Bastian is proud to support Toyota Material Handling in their efforts to deliver even greater customer service through an innovative, sustainable automation system,” said Aaron Jones, President and CEO of Bastian Solutions. “That focus on continuous improvement and quality solutions is at the heart of everything we do as Toyota group companies, and leveraging an incredible partner such as AutoStore is that final connection to ensure success now and into the future.” While robots and AI handle repetitive tasks, Toyota’s commitment to Jidoka—or automation with human touch—ensures associates spend their time on more strategic tasks. This allows Toyota to focus on problem-solving, innovation, and quality control, emphasizing the importance of human insight in driving operational excellence. During Toyota’s ribbon-cutting event at its Indiana headquarters, executives hosted guided tours to give stakeholders an exclusive firsthand look at the cutting-edge innovations and capabilities of the new AutoStore capabilities.
H&E Rentals reports third quarter 2024 results with revenue off by 4%
Today, H&E Equipment Services, Inc. reported financial results for the third quarter, which ended on September 30, 2024. The report includes the Company’s branch expansion achievements, with the addition of eight new locations in the third quarter, expanding the Company’s branch network to 157 locations across 32 states. THIRD QUARTER 2024 SUMMARY WITH A COMPARISON TO THIRD QUARTER 2023 Revenues declined 4.0% to $384.9 million compared to $400.7 million. Net income was $31.1 million compared to $48.9 million. The effective income tax rate was 28.3% compared to 26.1%. Adjusted EBITDA totaled $175.3 million, a decrease of 8.4% compared to $191.4 million. Adjusted EBITDA margins were 45.6% of revenues compared to 47.8%. Total equipment rental revenues were $326.2 million, an increase of $10.4 million, or 3.3%, compared to $315.8 million. Rental revenues were $288.1 million, an increase of $7.8 million, or 2.8%, compared to $280.3 million. Rental equipment sales decreased 47.3% to $27.8 million compared to $52.7 million. Gross margin declined to 44.5% compared to 47.0%. Total equipment rental gross margins were 45.3% compared to 47.4%, and rental gross margins were 51.2% compared to 53.3%. Average time utilization (based on original equipment cost) was 67.6% compared to 70.0%. Based on original equipment cost, the Company’s rental fleet closed the third quarter of 2024 at slightly below $3.0 billion, an increase of $220.1 million, or 8.1%. Average rental rates declined 0.1% compared to the third quarter of 2023 and fell 0.6% compared to the second quarter of 2024. Dollar utilization was 39.4% compared to 41.5% in the third quarter of 2023 and 38.6% in the second quarter of 2024. The average rental fleet age on September 30, 2024, was 40.8 months, compared to an industry average of 47.9 months. Paid regular quarterly cash dividend of $0.275 per share of common stock. “Industry fundamentals in the third quarter continued to trail year-ago measures,” said Brad Barber, chief executive officer of H&E Rentals. “Physical fleet utilization averaged 67.6%, or 240 basis points below the third quarter of 2023, evidence of the lower customer demand and a lingering modest oversupply of equipment. On a sequential quarterly basis, utilization improved 120 basis points. In addition, rental rates declined 0.1% compared to the prior-year quarter and were down 0.6% from the second quarter of 2024. Despite weakness in these key metrics, rental revenues grew 2.8% compared to the year-ago quarter due largely to the steady expansion of our branch count since the close of the third quarter of 2023. Finally, gross fleet expenditures in the quarter were $131.3 million, resulting in gross expenditures through the first nine months of 2024 of $327.8 million. We concluded the third quarter with a fleet original equipment cost of slightly below $3.0 billion.” Mr. Barber acknowledged the Company’s impressive expansion achievements, noting, “A record number of eight branches were added in the third quarter, while a ninth branch was opened in the month of October. The strong outcome reflected the outstanding execution of our accelerated new location program, which has achieved a record 16 additional locations in 2024, exceeding our stated expansion expectation. Through September 30, 2024, our U.S. geographic coverage improved to 157 locations across 32 states. When accounting for both new locations and branches added through acquisition, our branch count is up more than 14% in 2024 and approximately 54% since the close of 2021. Both measures are dominant accomplishments in our industry.” With the final quarter of 2024 underway, Mr. Barber provided updated expectations for the rental equipment industry, stating, “Construction spending in the U.S. continues to demonstrate the slowing rate of growth observed over the first half of 2024. We believe a trend of moderating activity will persist through the remainder of the year, with physical fleet utilization and rental rates below year-ago measures. Beyond the fourth quarter, the developing outlook for our industry is more encouraging into 2025. The Dodge Momentum Index (DMI), a leading indicator of construction spending, has exhibited gains for five of the last six months, while construction employment remains on a steady upward trajectory. Also, a cycle of easing interest rates is expected to have positive implications for local construction activity as projects are reevaluated under more favorable lending conditions. Finally, the strong expansion of mega-projects remains a significant growth driver for our industry, both today and in the future. Our branch expansion has led to greater and more diverse exposure to mega projects, including a growing presence on data centers, solar and wind farms, and LNG export facilities.” FINANCIAL DISCUSSION FOR THIRD QUARTER 2024 Revenue Total revenues were $384.9 million in the third quarter, a decline of 4.0% compared to $400.7 million in the third quarter of 2023. Total equipment rental revenues of $326.2 million improved 3.3% compared to $315.8 million in the third quarter of 2023. Rental revenues of $288.1 million increased 2.8% compared to $280.3 million in the third quarter of 2023. Rental equipment sales totaled $27.8 million, a decrease of 47.3% compared to $52.7 million in the third quarter of 2023. New equipment sales of $14.1 million increased 11.2% compared to $12.6 million in the same quarter of 2023. Gross Profit Gross profit totaled $171.5 million in the third quarter of 2024, a decrease of 9.0% compared to $188.4 million in the third quarter of 2023. Gross margin declined to 44.5% for the third quarter of 2024 compared to 47.0% for the same quarter in 2023. On a segment basis, the gross margin on total equipment rentals was 45.3% in the third quarter of 2024 compared to 47.4% in the third quarter of 2023. Rental margins were 51.2% compared to 53.3% over the same comparison period. Rental rates in the third quarter of 2024 declined 0.1% compared to the third quarter of 2023. Time utilization (based on original equipment cost) was 67.6% in the third quarter of 2024 compared to 70.0% in the third quarter of 2023. Gross margins on rental equipment sales improved to 60.2% in the third quarter of 2024 compared to 58.5% in the third quarter of 2023. Gross margins on new equipment sales were 19.8% in the third quarter of 2024 compared to
Alabama Park wins $100,000 Park Makeover from Bobcat Company
Ivan K. Hill Park in Winfield, Alabama, won the $100,000 Bobcat Park and Rec Makeover Contest hosted by Bobcat Company. The prize package will fund improvements at the park, which will focus on revitalizing a youth recreation space. Ivan K. Hill Park is a multi-use area featuring ballfields, playgrounds, and a senior center. It was nominated because of updates needed to improve user safety and accessibility. The $100,000 prize will go toward replacing the original 1960s fencing and ballfield backstop and enhancing access to the fields and restrooms. “This gift from Bobcat will allow our community to accomplish more by supplementing our funds to renovate a facility that will increase our ability to accommodate persons with disabilities in a safe environment. So many hearts will be touched immediately by offering hope and a promise of better playing facilities and just knowing that they are truly included,” said Gina Bryant, Winfield Park and Recreation director. “This award will help us continue to move forward with our goals and mission. It is proof that dreams can come true!” Bobcat kicked off the contest in July by teaming up with brand ambassador and renovation expert Chip Gaines for a baseball field makeover in Waco, Texas. Together, they aimed to inspire communities to see the potential in their own hometowns. Bobcat also partnered with the National Recreation and Park Association (NRPA) to promote the contest and review the submissions, focusing on the parks’ demonstrated need, sustainability impact, and long-term community benefit. Ivan K. Hill Park was selected as the winner based on NRPA’s criteria, which was coupled with strong public support for the park during the finalist voting period. “Bobcat equipment is best known for building on worksites around the world, but projects like this allow us to build something even greater together. We’re forging a community and helping build a legacy for the city of Winfield that will be treasured for generations to come,” said Laura Ness Owens, Bobcat vice president of global brand and marketing. Park enhancements at Ivan K. Hill Park are expected to be completed by April 2025. To stay updated on the park’s progress, please visit winfieldparkandrec.org or follow updates on the Winfield Park and Recreation Facebook page. In addition to the grand prize, Bobcat will also award the runner-up community with a new zero-turn mower to enhance their park and recreation space. Aaron Perry Park in Pontiac, Michigan, will be presented with a new mower in the next few weeks. Other finalists included Chestnut Street Park in Henderson, North Carolina; City of Purcell in Purcell, Oklahoma; and Jones Park in Galveston, Texas.
Handling Specialty Manufacturing Ltd. announces new president
Handling Specialty Manufacturing Ltd., a provider of custom engineering solutions and specialized manufacturing, has announced the appointment of Ben D’Souza as its new president. With over 20 years of experience in the manufacturing sector, Ben brings a wealth of knowledge and a proven track record of driving innovation and operational excellence. Ben most recently served as Assistant General Manager at Massiv Automated Systems, Magna International, where he successfully led initiatives that increased production efficiency and innovation and enhanced on-time delivery. His leadership has consistently resulted in substantial revenue growth and improved customer satisfaction. “We are thrilled to have Ben join our team,” said Dave Ried, VP of Operations of Handling Specialty. “His deep understanding of the industry and commitment to excellence align perfectly with our mission to deliver top-notch custom solutions to our clients. We believe his vision will be instrumental in taking Handling Specialty to new heights.” Ben is known for his strategic approach to leadership, focusing on building strong teams and fostering a culture of innovation. He holds a Bachelor of Engineering from Toronto Metropolitan University (Formerly Ryerson), a Masters of Business Law from Osgood Hall (York University), and an MBA from the Schulich School of Business (York University). “I am excited to join Handling Specialty and to work alongside such a talented and innovative team,” said Ben. “Together, we will continue to push the boundaries of what is possible in our industry and provide our customers with exceptional value.” Handling Specialty Manufacturing Ltd. looks forward to Ben’s innovative ideas and leadership as the company continues to expand its offerings and strengthen its position in its diverse markets.
Hangcha Canada celebrates five-year milestone
Hangcha Forklift Canada is celebrating a significant milestone—five years since its establishment. Officially launched on October 18, 2019, with an investment of USD 3 million, Hangcha Canada was built to bring a direct distribution model to the Canadian market. Fast-forward to today, and the company has coast-to-coast service capabilities through a network of 17 dealers. By cutting out intermediaries, Hangcha Canada is more agile and responsive in doing business with its dealers, offering personalized support and solutions that fit the unique needs of each Canadian market. In 2023 alone, Hangcha Canada sold 2,463 units across Class 1 to Class 7 forklifts, supplying relatively small operations to Fortune 500 companies in the automotive, warehousing, cosmetics, and food industries. At its recent 4th annual Canadian Dealers’ Conference, which coincided with its 5th anniversary, Hangcha Canada brought together all 17 dealers under the theme “Engage, Empower, and Elevate.” The conference focused on strategies for the future, such as expanding rental fleets and enhancing service capabilities.
FMH Material Handling Solutions joins Towlift family
In 2022, FMH Material Handling Solutions changed ownership and remained under local management in El Paso, Denver, and Albuquerque. FMH officially joined the Towlift family, one of the country’s largest full-service material handling dealerships. It specializes in new and pre-owned equipment, rentals, industrial racking and storage, parts, service, and operator training. With locations across Ohio, Pennsylvania, and California, Towlift operates with the motto, “It’s the dealer that makes the difference!” and has been named a Dealer of Excellence over twenty times. With the addition of El Paso, Denver, and Albuquerque to the Towlift family, FMH Material Handling can offer an expanded portfolio of material handling solutions with a seamless customer experience. Towlift is in its third generation of family ownership, with sales and service locations in multiple states. It is one of the industry’s most experienced material-handling dealers and industrial equipment distributors. This experience gives Towlift the expertise to offer customers a full range of material handling solutions that improve their business operations. Bob Kwieciak currently serves as Towlift president.
H&E opens New Kansas City South Branch
Effective October 21, 2024, H&E Rentals has announced the opening of its Kansas City South branch, the company’s fourth location in the state of Missouri and its second in the Show-Me State in a year. H&E operates in 32 states and opened 16 branches across the country in 2024. The facility is located at 1100 SE Hamblen Road, Lee’s Summit, MO 64081-2938, phone 816-370-8200. It includes a fully fenced yard area, offices, and a repair shop and carries a variety of construction and general industrial equipment. “Our fourth location in the Show-Me State now makes it even more convenient for customers in the areas south of KC and on both sides of the Kansas and Missouri border. We can more quickly reach customers in Lee’s Summit, Independence, Overland Park, Olathe, Warrensburg, Ottawa, Harrisonville, Nevada, and all points in between,” says Branch Manager Kriss Mills. “Our position between our existing Kansas City, Columbia and Springfield facilities gives us the advantage of working together to source the equipment customers need from an expanded local fleet. We’re directly off Hwy 50 near highway 291 and I-470, so we can efficiently move equipment to job sites to better serve the market.” The Kansas City South branch specializes in the rental of aerial lifts, earthmoving equipment, forklifts, telehandlers, compaction equipment, generators, light towers, compressors, and more. The fleet represents the following manufacturers: Allmand, Atlas Copco, Blue Diamond Attachments, BOMAG, Case, Club Car, Connect Work Tools, Cushman, Gehl, Generac Mobile, Genie, Hamm, Haulotte, Husqvarna, JCB, JLG, John Deere, Kobelco, Kubota, LayMor, Ledwell, Lincoln Electric, Link-Belt Excavators, Manitou, MEC, Miller, Multiquip, Okada, Polaris, Sany, Skyjack, SkyTrak, Sullair, Sullivan-Palatek, Tag, Towmaster, UniCarriers, Vacuworx, Virnig, Wacker Neuson, Yanmar, and others.
Big Lift adds CMO and VP of Sales to its management team
Today, Big Lift, LLC announced the appointment of Martin Boyd as Chief Marketing Officer and Jason Dunigan as Vice President of Sales for its Big Joe and EP North America brands. Dunigan started this week, and Boyd will begin in January 2025. These executive positions will support the company in its many objectives, including a strong focus on expanding its leadership in lift truck electrification. “Big Lift has a clear focus on where our products will best serve our customers moving into 2025 and beyond, and the addition of both Martin and Jason to our team will help us be better positioned for success,” said Dan Rosskamm, President of Big Lift. “As the industry shifts to modernize warehouse equipment, these most recent executive appointments will help us continue to provide cleaner, more efficient technology that makes today’s supply chain run smoothly. We welcome them to the Big Lift brands and look forward to working together for the success of our company.” With more than 30 years in the material handling industry, Boyd will lead all marketing functions for both brands. Before Big Lift, he worked with major OEMs such as Hyster-Yale Group, Cascade Corporation, and Toyota Material Handling, holding leadership positions in engineering, technical service, product management, and marketing. As Big Lift’s newest addition to the senior executive team, Boyd will utilize his experience to strengthen the Big Joe and EP brands in the North American market. His customer-centric passion will ensure the company’s resources are focused on delivering the right solutions based on market trends. As Vice President of Sales for Big Lift, Dunigan will lead both brands’ national account and dealer development teams. He comes to Big Lift with more than 25 years of sales management experience, more than 20 of which focused on the industrial forklift industry. Dunigan is a US Army Veteran who most recently worked with KION North America, where he was instrumental in increasing Linde’s market share in North America by transforming the Key Account Department and developing partnerships with distribution channel partners.
NOBLELIFT® opens a new facility in Korea
NOBLELIFT Opens New Facility in Korea and has a Grand Opening Ceremony. On September 25th, NOBLELIFT celebrated the official opening of its Korean subsidiary in Gyeonggi-do, marking a significant milestone in its international expansion. The ceremony was attended by COO Mr. Andy Liu and CEO of the Korean subsidiary, Mr. Kay Kang. In his opening remarks, Mr. Liu acknowledged the invaluable support from partners and customers, announcing the construction of NOBLELIFT’s fifth factory and the Shanghai International Headquarters in China. This investment underscores the company’s commitment to enhancing its brand through collaboration and innovation. Mr. Kay Kang confidently assured attendees that the new subsidiary, backed by NOBLELIFT’s headquarters, is well-positioned to meet and exceed customer expectations with a robust, locally tailored service support system. NOBLELIFT’s entry into Korea introduces MEWPs and forklifts, along with its technology in AGVs and automated warehousing solutions. Dedicated to innovation, quality, and customer service, NOBLELIFT continues to offer advanced material handling solutions aimed at enhancing global logistics efficiency.
Raymond West now selling DriveMod Tuggers
Cyngn announced the expansion of its dealer network to include Raymond West. A leading distributor and integrator of intralogistics solutions, Raymond West will begin selling Cyngn’s autonomous DriveMod Tugger. The autonomous tugger integrates Cyngn’s AV technology with Motrec’s MT-160. Cyngn Inc. has announced the expansion of its dealer network to include Raymond West. Raymond West will begin selling Cyngn’s autonomous DriveMod Tugger. The autonomous tugger integrates Cyngn’s AV technology with Motrec’s MT-160. “With 21 branches across the West Coast, Raymond West is an impressive company. It boasts more than $800 million in annual revenue — and we are excited to be able to add Cyngn’s autonomous vehicles to their catalog,” said Lior Tal, CEO of Cyngn. “Motrec’s industrial vehicles are known for high towing capacity and reliability. We are excited to equip Raymond West with the tools and training needed to offer our self-driving industrial vehicles to their customers. Their success is integral to our success.” Raymond West’s decision to join Cyngn’s Dealer Network came after a successful summit hosted at Cyngn’s Menlo Park headquarters, where key decision-makers experienced the company’s autonomous mobile robots (AMRs) firsthand. “We’ve identified several customers who stand to gain immensely from the DriveMod Tugger,” stated Marc Breton, Vice President of Sales at Motrec. “Autonomous industrial vehicle technology is revolutionizing manufacturing and logistics facilities, and the positive feedback from our sales channels confirms that automating a high-tow capacity vehicle like the MT-160, renowned for its quality, is a game-changer.”