Subcategory: Repair Services

Isn’t it time to differentiate equipment and parts sales?

In one of my past editions, I shared that dealers sometimes struggle to differentiate the role of an equipment sales rep and the role of a customer service sales representative. Too often, I see these positions rolled up into one function, and 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 selling service agreements, aftermarket parts, and providing service support, that could lead to not having enough focus on one function over the other. I believe having dedicated customer service sales representatives will allow your dealership to provide focused and professional aftermarket parts support, along with dedication to targeting and obtaining service agreements and upselling service repair quotes. Success as a customer service sales representative hinges on a blend of interpersonal skills, strategic sales acumen, and knowing your product and service offerings while staying abreast of industry trends.  Let’s explore some of these skills and areas of focus.  Develop and Nurture Customer Relationships First and foremost, building and maintaining strong relationships with customers is the foundation of success in this role.  This is accomplished most effectively through frequent on-site visits to customers’ locations. These interactions foster trust and loyalty, setting a foundation for long-term partnerships. Listening actively and responding empathetically to customer needs and complaints is essential in efficiently resolving product or service issues, ensuring your customers are satisfied and expectations are met. Whether promoting service agreements or safety programs, delivering products, or handling follow-up visits on PM services, the customer service sales rep should strive to exceed customers’ expectations by providing exceptional service and support at all of your dealership’s customer experience touchpoints. When targeting new business, the initial contact with a prospective customer should be personable and professional while demonstrating genuine interest in their company. They should follow up consistently with valuable information or assistance rather than just sales pitches or spamming them with sales and product literature in their email inbox. This approach will help establish trust and demonstrate their commitment to the success of the prospective customer’s business.  CRM Systems and Communication Effective communication is another cornerstone of success in this role.  The ability to effectively communicate through various channels, including phone, email, and face-to-face meetings, will help them stay connected and responsive to your customer’s needs.  Your customer service sales representatives must be adept in verbal and written communication as they will be tasked with preparing and presenting proposals, quote recommendations, and presenting and promoting new products and service offerings. Additionally, these customer service sales reps should display confidence and persistence in their communications, especially when it comes to new business development in cold calling prospects.  This effort is vital for promoting your dealership’s services, parts, aftermarket and allied products, and rental offerings.  Ask your customer service sales representatives if they know your dealership’s value proposition and if they can articulate it clearly and persuasively to convert prospects into loyal customers. CRM systems are essential for managing itineraries, call reports, prospecting activities, and maintaining accurate customer records. Keeping detailed records of customer interactions and follow-ups ensures no opportunity is missed and each customer receives proper attention.  Accurate CRM management keeps customer information current and accessible, facilitating better service and follow-up.  In my opinion, the effectiveness and use of your CRM systems will determine the success of your customer service sales representatives.  Furthermore, working closely with your dealership’s equipment sales representatives and other departments is essential to covering the territory effectively as a customer service sales representative. This collaboration is made possible if all departments within the dealership are on the CRM and will help you provide a seamless experience for your customers, demonstrating that your dealership is a valued partner to your customers.  Product and Industry knowledge Your customer service sales representatives should know or be provided the training to understand forklift maintenance and repair.  This is crucial for building credibility and trust with customers and prospects.  They must be prepared to answer technical questions and provide informed advice to your customers. You should provide continuous professional development for your customer service sales representatives by having them participate in OEM product training, other personal development programs, and industry training. Keeping abreast of industry trends and advancements will ensure they remain a valuable resource to your customers. Be a ‘student of the industry!’ Understanding what your competitors offer and identifying their strengths and weaknesses allows your customer service sales representative to position your dealership more effectively.  As stated earlier, clearly articulating what sets your dealership apart, whether it’s superior service, competitive pricing, or comprehensive support, is essential for your customer service sales representatives, especially regarding attracting new business. To excel at your dealership, your customer service sales representatives must take a strategic approach to customer relationships, effectively use CRM systems, and collaborate seamlessly with team members and other departments. By prioritizing customer satisfaction, staying updated with industry trends, and continuously improving through professional development, you can significantly grow sales volume and establish your dealership as an indispensable partner for your customers. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co.  He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team that sells replacement parts and accessories in various equipment markets, such as material handling, equipment rental, and construction/earthmoving dealerships.

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

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

Is your dealership too busy selling hats to each other?

In April’s edition, I wrote about the topic of data-driven decision-making.  In one instance, I discussed how most dealerships I visit live with silos of data that do not integrate with each other.  The topic of data silos and departmental silos resonated with some of my industry colleagues, so I felt compelled to make it a topic for this month’s article. For your business, success hinges not only on the quality of products and services you sell but also on the seamless collaboration between the different departments within your dealership. The traditional model of siloed departments can impede efficiency, communication, and ultimately, customer satisfaction; breaking down these silos is essential for thriving in today’s landscape within our industry. I recently spoke to an industry colleague that referenced the phrase, “We’re too busy selling hats to each other” when explaining the struggles with departmental silos within their dealership.  They noted this phrase came from the book, ‘Results Rule! How to Build a Culture That Blows the Competition Away,” authored by Randy G. Pennington. In the book, it is highlighted that the phrase is often used metaphorically to describe a situation where your employees are preoccupied with trivial or inconsequential matters rather than focusing on more important issues or opportunities, i.e. delivering best-in-class customer service. In essence, it suggests that instead of focusing on meaningful endeavors or addressing critical challenges, your employees are caught up in relatively unimportant tasks or pursuits, akin to metaphorically selling hats to each other, which might seem busy or active but ultimately lack substance or value. Is your business too internally focused?  Are your employees and departments “too busy selling hats to each other?” When your business becomes too internally focused, it risks losing touch with the external factors that drive your relevance and innovation. This inward focus can manifest in various ways, each posing significant challenges to your dealership’s growth and competitiveness. One of the most glaring issues when your employees are too internally focused, and your various departments act independently within silos is the lack of customer-centricity. When your employees become too preoccupied with its internal operations and processes, they may lose sight of the evolving needs and preferences of your customers. This disconnect can lead to your services or once competitive advantages no longer resonating in the market, ultimately resulting in declining sales and customer dissatisfaction. Moreover, an internal focus often breeds complacency and resistance to change within the organization. When losing focus externally on things such as feedback from customers or insights from industry peers, your dealership will risk falling into a state of stagnation.  This stagnation can quickly lead to obsolescence, as your competitors seize opportunities and innovate ahead. Furthermore, an internally focused dealership is likely to miss out on valuable opportunities for innovation. Innovations often arise from understanding market gaps and anticipating future needs, both of which require a keen awareness of external dynamics. By neglecting to engage with the market and monitor industry trends, you limit your ability to innovate and stay ahead of the curve. Siloed departments are usually a result of these internally focused habits in your dealership which present several challenges. Firstly, communication breakdowns frequently occur, leading to misunderstandings, service delays, and dissatisfied customers. Secondly, these departments often operate with disparate processes that do not align with your dealership’s overarching goals, resulting in redundancy, resource wastage, and decreased productivity. Additionally, the lack of cross-departmental collaboration can lead to missed opportunities for upselling, cross-selling, and delivering comprehensive solutions tailored to your customers’ needs. What are some strategies you can implement to start to break down silos within your dealership? First, look at forming cross-functional teams comprised of individuals from various departments within your dealership.  This can promote collaboration and facilitate a comprehensive approach to problem-solving.  Secondly, establish shared customer-centric key performance indicators and goals.  This ensures alignment across all of your departments, guiding them towards common objectives. Furthermore, implement regular communication channels through formal and informal meetings, such as quick-standing hurdles. This fosters dialogue and strengthens interdepartmental relationships.  Lastly, invest in training programs that emphasize cross-departmental understanding and skill development.  This is crucial for breaking down barriers and cultivating more cohesiveness amongst departments across your dealership.  A cohesive approach to sales, service, and support ensures a smoother experience for your customers, from initial inquiries to after-sales service. Remember to prioritize customer service!  Exceptional customer service doesn’t end when the sale is made. Ensure your dealership has a dedicated customer service team equipped to handle inquiries, technical support, and service requests promptly and professionally. Also, look to foster a culture of feedback.  Actively seek feedback from your customers regarding their experiences with your dealership and the aftermarket services provided. Whether through surveys, reviews, or direct communication, encourage customers to share their thoughts and suggestions for improvement. Use this feedback to identify areas of strength and areas for enhancement, demonstrating your commitment to continuous improvement and customer-centricity. I’m not saying internal processes, optimization, and employee engagement aren’t important, but they need to be balanced with an outward focus on customers, market trends, competition, and innovation. To excel against competitors, your dealership must balance internal optimization with customer service. While internal processes are crucial for efficiency, they shouldn’t overshadow the main goal:  providing exceptional service to customers.  Adopting an outward mindset positions your business for long-term success and ensures you remain relevant and competitive in this ever-changing industry. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co.  He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.

Is your dealership embracing technology?

I recently attended MODEX 2024, and this year’s show was highly anticipated by professionals across our industry.  Automation, robotics, software solutions, artificial intelligence, and more were all on display providing a glimpse into the future of our industry.  With connected smart automation solutions aimed at streaming supply chain operations it made me think of different areas where a lift truck dealership could streamline their operations to gain efficiencies and improve their customer experience. This led me to the topic of ERP (Enterprise Resource Planning) integrations.  ERP is your business system software where business activities such as procurement, work orders, accounting, operations, etc. are performed.  There is a numerous amount of ERP providers that provide their version of a dealer management platform.  Additionally, there are many legacy systems out there, however, these days, many dealers are migrating to a modern dealer management platform that allows for integrations. By definition, an ERP integration allows your operation to streamline business processes, improve efficiency, and facilitate seamless communication and data exchange between different systems, ultimately leading to enhanced decision-making and the ability to adapt to external and internal changes.  In last month’s edition, I wrote about the importance of ‘data-driven decision making’ where I noted that in our ever-changing industry, the ability to make informed decisions swiftly and accurately can be the difference maker in running a successful dealership and remaining competitive in the market.  A modern ERP system that allows for integrations will assist your management team in decision-making about productivity and profitability. Non-integrated systems result in manual data updates, meaning that information isn’t promptly integrated into the ERP system as it arises in ‘real-time.’ Consequently, you will have to have someone within your company dedicate time to manual data transfer and uploads, resulting in wasted time.  As labor resources are at a premium these days, that wasted time could be better spent on sales growth activities. There are various methods to achieve ERP integration between your platform and other systems.  One of these methods is an API, or Application Programming Interface, which is a set of rules, protocols, and tools that allows different software applications to communicate with each other.  In addition to API, other methods include middleware, file transfer, web services, and EDI, or Electronic Data Interchange.  While this is not a programming and technical monthly column, you should be aware of these methods of integration and discuss them with your current and/or prospective ERP providers.  You will also want to make sure your ERP system can integrate with your various business systems (such as CRM software) and your various suppliers. Let’s explore the benefits of ERP integrations as they relate to your parts and service departments. Parts Department Does your current platform allow for direct communication between your suppliers and your ERP system?  Having the ability to connect to integrate with your suppliers will help streamline your order and procurement process with real-time, instantaneous feedback on product, pricing, and availability. Other benefits for your parts department operation include: Eliminating pricing and stock count discrepancies No need to request or manually upload new price files, tapes, etc. Ability to work on one system (your ERP system) and not have to go back and forth to the supplier portal to check product information, price, availability, etc. The ability to provide end-to-end visibility into the supply chain, from suppliers to customers, is key to your parts department being competitive in your market.  Your parts department managers can track the movement of parts, monitor lead times, and identify bottlenecks or breakdowns in the supply chain.  They can then proactively address any issues because they will have better visibility of supply chain performance. Another great benefit of having your ERP system integrated with your suppliers is the ability to sell products online.  If you currently have an e-commerce platform or are thinking about creating an e-commerce platform to sell your products online and grow your parts counter sales, this integration will be vital to the success of setting up or updating your e-commerce site. Service Department ERP integrations can equip your service managers with real-time data that allows them to manage service technician productivity and profitability more effectively.  It will also allow you to streamline processes and enable data-driven decision-making. Other benefits for your service department operation include: Many modern ERP systems offer mobile applications that allow technicians to access work orders, customer information, and inventory data from their phones or tablets while in the field. If your ERP system does not have built-in mobile applications, there are mobile applications that can integrate with many legacy ERP systems as well. Mobile accessibility will empower technicians to work more efficiently, without needing to return to the office for information or updates. Integrations can also provide your technicians with access to detailed information about customer history, equipment specifications or manuals, and equipment service history. This allows your technicians to diagnose issues more accurately, order the right parts, and complete repairs right the first time, reducing rework. If your sales department and/or other departments operate on a CRM (Customer Relationship Management) platform, an ERP integration with the CRM can lead to enhanced communications with your customers. This facilitates more personalized and effective communication, which leads to improved customer relationships and loyalty because each customer experience touchpoint that your customer has with your business is uniform. Integrating your ERP systems with other software solutions and your supplier’s systems, will eliminate data silos, reduce manual data entry and errors, streamline processes, enhance visibility into your business operations, and ultimately improve productivity for all departments within your business.  You will also foster collaboration amongst your various departments, which is crucial because it promotes cross-functional communication, teamwork, and employee engagement. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co.  He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets

Service and part departments need to track their KPIs to achieve growth

As we are well into the first quarter of 2024, the subject of labor shortages continues to be a trend across our industry.  Dealers that I talk to stress that the growth of their service and parts departments’ revenue continues to be impacted by the shortage of skilled forklift technicians.  The topic of attracting, hiring, and retaining technicians continues to be a hot topic, however, in this month’s column, I will focus on another topic as it relates to service technicians, technician productivity, and efficiency. The key to your dealership’s service department’s success goes beyond the number of technicians you have and how busy they are. The question to ask is how productive and efficient they are in their work. Long hours on the clock may not be the key metric; rather, it’s their productivity that impacts your dealership’s profitability.  Today, many dealerships have adopted business system software that will track and compute these metrics as they pertain to technician productivity for you, yet sometimes this this Key Performance Indicator (KPI) is neglected. Service Department Efficiency Before measuring technician productivity and setting up KPIs, your service department operations and processes must first be efficient.    Running an efficient service department within your dealership requires a combination of effective management, skilled personnel, and streamlined processes. The efficiency of your service department is critical in meeting your customer demands and driving the success and revenue of the department. A crucial factor is the proficiency of the service technicians on your staff, who should be well-trained and certified to handle the diverse range of equipment they are being asked to diagnose and service. Investing in ongoing and continuing training programs will ensure your technicians are up to speed on the latest technological advancements in equipment and diagnostic tools. Additionally, having a well-organized and stocked spare parts department or service van parts inventory is an important factor for efficiency.  You want to ensure that the necessary spare parts are readily available to your service technician when your customer’s equipment goes down.  Be sure your parts department staff have the necessary resources to look up, procure, inventory, and deliver the right parts as needed to positively impact technician efficiency and customer satisfaction. Establish clear communication channels with your customers so your service department and technicians understand their needs and expectations.  Providing regular updates on the status of repairs and offering estimated completion times helps build trust and satisfaction with your customers.  Additionally, if everyone at your dealership (service dispatcher, service writer, technician, customer service sales rep, etc.) is on the same page with the customer, it will show the customer that your dealership is running a customer-centric service department. Having efficient workflow processes and effective management of work-in-process is another critical element to the efficiency of your service department.  There are many business systems and field service mobile solutions today that allow for the efficient documentation of service records and collaborations between your service, sales, and parts departments that further enhance the overall performance and customer satisfaction of your dealership.  If you are still asking your technicians to use paperwork orders to document their service work orders and billable hours and turn them in manually to the office, it may be time to look to invest in a modern field service mobile solution.  This will also streamline your processes of converting a completed service work order to a customer invoice more efficiently.  An additional benefit, as you look to attract, hire, and retain technicians, is that state-of-the-art technology is more attractive to workers for their everyday job tasks. Technician Productivity Now that you’ve streamlined processes and demonstrated your service department can run efficiently, it’s also crucial to stress the importance of productivity. Simply computed, technician productivity can be calculated by dividing their working hours by the available hours and their efficiency by how long they take to complete a service job versus the standard time estimated to complete that job. For many dealers, a normal paid working day consists of eight hours for your service technicians, which you compensate them for even if they are unable to bill out all that time to retail customer service jobs.  While not all their time will always be 100% billable to your customers, your processes should maintain accountability for every paid hour to be billed out to a customer invoice, internal invoice, or general ledger (GL).  These three types of hours to be billed are commonly referred to as retail hours, internal hours, and expense hours. Retail hours are hours you can bill your customer for a service job.  Internal hours billed include repairs to your rental fleet, pre-delivery inspection of new equipment sales, and equipment serviced under full maintenance lease agreements.  Expense hours include training hours, team meetings, and other non-billable tasks.   The key here is to invest in technology and systems that can effectively account for every retail, internal, and expense hour of your technician. The forklift service industry landscape is evolving, and strategic adaptation is key to the future profitability of your dealership. Embracing change, staying up to date with technological advancements, and consistently innovating your service offerings can position your dealership as a leader in your market, while also attracting and retaining customers with opportunities for revenue growth. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co.  He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team selling replacement parts and accessories in various equipment markets such as material handling, equipment rental, and construction/earthmoving dealerships.  

Motion names new SVP Strategy and Markets

Motion Industries, Inc., a distributor of maintenance, repair and operation replacement parts, and a premier provider of industrial technology solutions, named Chris Cleland to Senior Vice President of Strategy & Markets, effective immediately. Mr. Cleland’s career spans over 25 years in consulting, strategy, marketing, branding, e-commerce, business development, and transformation. In his previous role as Principal Consultant at Cummings Creative Group (CCG), for the past 20 years, he led multiple successful initiatives across several industry verticals, driving growth and innovation for clients—including 12+ years consulting with Motion on marketing and strategy projects. Prior to his time with CCG, Mr. Cleland gained valuable experience as President/Owner of LithoSigns and as a Sales Manager with Citadel Broadcasting. In his new role, Mr. Cleland will lead the Company’s strategy development for its business groups, plus the e-commerce and digital teams. He will report to James Howe, Motion’s Executive Vice President – Chief Commercial Officer/Chief Technology Officer. “Chris brings a wealth of experience and expertise to our team,” said Mr. Howe. “His impressive track record in innovation and transformation makes him a perfect fit for guiding our companywide strategic planning process and shaping our future growth and success. We look forward to an exciting journey ahead.” Mr. Cleland graduated from The University of Alabama at Birmingham (UAB), earning a Bachelor of Science in Business.

Percentage of female technicians shows substantial increase

According to new data from the 2023 WIT Index, which was released recently by the Women In Trucking Association (WIT), the percentage of female equipment technicians in corporations with for-hire or private fleets in the commercial freight transportation industry has shown a substantial increase. The WIT Index is the industry barometer to benchmark and measure each year the percentage of women who make up critical roles in transportation. The 2023 WIT Index shows that more than 7% of technicians in companies in transportation are women. This number reflects an increase of nearly 4% from the reported 3.7% of women in technician roles in the 2022 WIT Index. “A major concern of the trucking industry is the widely reported shortage of professional truck drivers, who play a vital role in the U.S. economy by safely transporting the nation’s freight,” said Jennifer Hedrick, president and chief executive officer of WIT. “But drivers cannot complete that mission when their trucks are in the shop or broken down on the side of the road – whether it’s caused by a problem with the engine aftertreatment system, an electrical issue, or a problem with the truck’s brakes. That’s when it becomes abundantly clear that skilled truck maintenance technicians are indispensable in keeping professional drivers productive, on the road, and delivering on-time.” Initiated in 2016, the WIT Index is based upon reported statistics by companies in transportation, including for-hire trucking companies, private fleets, transportation intermediaries, railroads, ocean carriers, equipment manufacturers, and technology companies. Data involving the 2023 WIT Index was confidentially gathered from January through April of 2023 from 350 participating companies of various sizes operating in the trucking industry. Percentages are reported only as aggregate totals of respondents rather than by individual company. In 2022, WIT expanded its collection of the percentage of women to include not only technicians but also operations, human resources and talent management. The WIT Index historically also has identified the percentage of women who are in leadership roles and professional drivers with the commercial freight transportation industry. For more information on the WIT Index and to download a full executive summary of the 2023 WIT Index findings, visit https://www.womenintrucking.org/index. Click here for Technicians – Percentage of Women

Concentric LLC acquires critical DC power provider Retech

Concentric, LLC  announced the acquisition of Retech. An established market leader across the US, with headquarters on the west coast, Retech specializes in designing, integrating, and managing critical DC power systems and critical infrastructure construction with a particular focus on the telecom and cable industry. This acquisition expands Concentric’s service footprint in critical power to the west coast, while adding new construction capabilities for critical power from telecom to energy storage to utilities and data centers. A full-service EF&I specialist, Retech’s in-house team of experienced engineers and technicians will be joining Concentric, bringing a proven track record of supporting world-class companies as they navigate the dynamic and challenging telecommunications landscape. Their expertise ranges from network infrastructure support services to network audits, staging, rack and stack, installation, de-commissioning/de-installation, resale and recycling, and as a general contractor, full site builds, upgrades or decoms. Retech is led by Co-Founders, Julie and Dennis Pulos, veterans of the critical power industry who will remain in leadership positions after the acquisition. “Retech is a well-respected team across the west coast and we’re thrilled to incorporate their expertise at Concentric as we expand our capabilities for engineering, design and installation services across the US. The Retech team share our values and mission to deliver superior, engineered power systems and we look forward to supporting them in their future growth from coast to coast,” said Concentric Chief Operating Officer, John Winter. “We are excited to join the Concentric team to accelerate our customers’ success by expanding our nationwide footprint. Joining forces with Concentric will enable us to add the resources we need to be able to quickly scale and meet our customers’ growing needs,” said Retech Co-Founder and President, Julie Pulos.

Increase service department sales by training topics

I recently met with a customer discussing their service technician opportunities and while we were talking about this, we also touched on service technician training topics to help drive additional parts and service revenue.  They were specifically looking into ways for their service technicians to quote and upsell additional service and parts opportunities when on a service call or routine PM service.  Since it was June and National Forklift Safety Day had just passed, they specifically discussed quoting and selling more tires on these service calls.  With this, let’s talk about forklift tires for this month’s article. 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 operator.    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 certainly a service and parts sale that your technicians can be looking to quote to your customers. As with a pre-operation inspection performed by a forklift operator, technicians can look for the following in regard to forklift tires: Visible damage such as chunking, tearing, splitting, and cracking of the rubber.  Chunking is usually a result of running a forklift in an outside application, or running over objects, or on rough terrain. As you are familiar with checking the wear on your car tires, solid rubber tires can be checked similarly.  If tread distance from the manufacturer’s nameplate on the tire falls below an inch or reaches the band on the wall of the tire, or tread is no longer visible, it’s time for replacement. If a tire is flat and patching the leak or hole does not fix the tire, it will need to be replaced.  Additionally, tires with visible flat spots, due to uneven alignment or sudden stops by the operator, should also be replaced. With any of these conditions found on your customer’s forklift tires, it is important to convey to them that the condition of their forklift’s tires is critical to safety and regulatory compliance.  They will not want to wait until an accident occurs when tires should have been replaced.  Additionally, worn tires also put stress on the rest of the lift truck’s parts and fuel efficiency.  For example, as forklift tires wear down so does their ability to absorb shock.  Excessive shock on a lift truck can loosen parts, cause leaks in fluid lines, and even damage electrical components. Many dealerships will offer mobile tire service with a dedicated tire service department, sometimes with specially equipped mobile units for on-site tire pressing.  While other dealerships may sub-out this service to a dedicated tire service company.  The process is similar to when you have your tires on your car replaced, except with the pressing and mounting of the forklift tires.  Nonetheless, if your service department is servicing the truck for regular repairs and maintenance, your service technicians should not be overlooking the opportunity for a tire replacement service and parts opportunity.   Forklift Tire Basics Considering how the truck will be used and the environment it operates in will go a long way to helping you quote and sell the correct tire for your customer. Rubber or Polyurethane? In general, rubber tires are used on internal combustion trucks while polyurethane (poly) tires are more common on electric lift trucks. Here are some additional factors to consider when quoting tires for your customer’s forklift: Rolling Resistance – Poly tires offer less resistance than rubber. Because they are battery-powered, electrics trucks should use poly tires to conserve energy during operation and reduce downtime for recharging. Cushioning – The higher a tire’s durometer number, the harder the tire. A softer tire absorbs more impact and provides more cushioning. Because rubber tires have a lower durometer, they should be used if a softer ride is desired. Traction – Rubber tires offer a broader footprint over poly, thus giving them better traction. If you are still inclined to use a poly tire, modern versions now offer siping, or an engraved tread pattern, that lends them greater traction. Load Capacity – Because of their higher tensile strength, poly tires are more resistant to splitting, tearing, or chunking out under load than rubber tires are. Resistance to Cutting, Tearing, and Abrasions – As a general rule, poly tires will outlast a rubber tire by about four times. This is because poly tires are harder and less susceptible to cuts, tearing, and abrasions from sharp objects. Items that might cut a rubber tire will be deflected or become embedded in the much harder poly tire. High-Speed Operation – Polyurethane tires are more likely to fail due to heat buildup than rubber tires. This is because rubber tires can dissipate the heat better. For faster-moving trucks (propane and internal combustion) that see a higher buildup of heat, rubber tires are the way to go. Floor Marking – If marks on the floor (or a lack of) are a concern to you, then selecting a non-marking tire is an important consideration. While poly tires are naturally non-marking, black rubber tires will leave marks on the floor. You can get around this with special non-marking rubber tires. Response on Wet Floors – A smooth poly tire will have significantly less traction on wet floors than a rubber tire. If your operating environment requires a poly tire, consider one that has been siped to provide better traction. Chemical Resistance – Both poly and rubber tires are susceptible to chemicals in their environment. Knowing what type of chemicals your tires will come in contact with can help you choose between rubber and poly. It is best to use the right tire to match your needs to prevent costly failures. To sum up, rubber tires are often used indoors or outdoors where a softer ride or better traction is desired. Poly

Bar Code Depot

TVH

KMC Forklift Service, Inc.

Getting closer

I am sitting at my computer on May 14 wondering if my T Bills will be worth anything two weeks from now. I must tell you, on a financial front, we are in deep Dudu if we default on our debts. WHAT A MESS. And if I get bored, I run to YouTube to see what I can find out about where the EV (Electric Vehicle) vs ICE (Internal Combustible Engine) debate stands. Came across one program that was pretty good where they compared EV total cost against an ICE total cost over 125,000 miles. As it turns out the EV purchase cost is well in excess of a similar ICE model, but not as much if you take into account the $7,500 credit available on new EV’s. But let’s remember you must be able to “pay” for the EV and will not get the benefit of the if you don’t have at least $7,500 tax to pay. And it is probably safe to say that you need at least a $100,000 annual income to wind up with that type of tax. The bottom line is that the total cost (cost to purchase plus operating costs) over $125,000 was about the same at $65,000. The higher purchase price of the EV plus fueling was the same as the lower-priced ICE unit with the cost of gasoline and repairs. Thinking further ahead you would expect the EV cost to decrease as demand climbs, which could reduce total cost to the point where EV wins the cost game (if the demand for electricity does not get so high that cost increases get to the point where we once again wind up with a tie). Could happen. For me, I am thinking there are other alternatives that could provide similar climate benefits for less cost. Hydrogen in some form is that option. During my visit to ProMat I had a chance to spend some time with Plug Power while they were showing off how one of their units could be used with lift trucks. Less operating hassle compared to both acid and lithium batteries but similar overall run times per charge. And having H20 as the exhaust is not bad either. Toyota has developed an engine that operates along this line and concludes that EV is not necessary if buyers use the Toyota as an alternative to EV. Dealers, as far as lift trucks go, this is an option you have to keep in mind because customers are going to ask about it. As far as our financial picture is concerned, I believe it will be tougher than expected, mainly because of the banking crunch taking place. With BK’s increasing banks take steps to review their outstanding loan portfolio to see if they have any substantial risk to consider. Being in this frame of mind banks are cutting back on new financing requests or asking for tighter coverage on existing bank loans. We discussed this topic and reaction before, and I really cannot blame the banks if they decide they must cover their butts to stay solvent. But let’s not forget that these issues also concern your customers, especially those who constantly pay late or have known cash flow problems. In the end, the banking situation will slow the economy down to where we can prepare for a hard landing. To assist with your planning for any type of downfall that may appear, last month we went through a Balance Sheet (BS) exercise where I suggested you investigate cleaning up the BS with a goal to convert as many assets as possible into CASH because you are going to need it. The alternative is a balance sheet with assets decreasing in value once the recession goes into full swing, which, of course, are part of your bank collateral which the bank will be reviewing on an annual basis. Now, let’s discuss the Income Statement (IS) which, of course, represents how we did profit-wise over a segment of time. You all have an idea of how the IS works and understand that it is entirely possible, with all the changes taking place in BUSINESS these days, that Income Statement results could put a strain on the BS, your cash position, and the overall value of the company. Consequently, knowing what is likely around the bend I do not believe you can sit back and say there are no changes required in your business. You can, of course, come to that conclusion, but please do so after you have examined all your risk factors and find nothing out of order. And heck, I haven’t even mentioned AI yet! I expect a reduction in overall revenues (net of inflation) to soften up to the point where you will be glad that you have that extra cash available because of converting assets into cash. In other words, covering your fixed and variable costs will require both a more profitable business as well as cost reduction. I also do not see the negative impacts on your business reversing itself post-recession. Some items are just too sticky to do that. So, let’s go through an IS statement review this month using typical MHEDA numbers, and see what potential changes to anticipate and plan for. To help us focus I put together a brief review of a dealer’s potential sales mix and gross profit percentages and provide my thoughts on what to expect going forward. For comparison purposes, I also added similar data from the construction dealer side. My overall comments will be addressed to lift truck dealers and not so much to the construction side. I listed the dealer’s revenue and gross profit line items and then in the far-right column indicate what I expect each line item to do (net of inflation) based on my crystal ball to date. > representing an increase in the line item. < a decrease. New Sales I expect sales levels to fall as a result of both less demand and lower

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

Rusch Rack Inspections

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

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.

Whose customer is it anyway

Electrification in the material handling industry, electrified equipment, and fleets, are not just ‘buzz’ words anymore as much as they are business trends within our industry.  As we continue to see this increasing trend of electrification of forklift fleets across our industry, many dealers and independent service providers are embracing this as part of their business strategy.  They must also understand and be educated on environmental regulatory changes that will affect our industry and adjacent industries in the years to come. If you recall what I wrote in last month’s edition, many businesses now have dedicated departments and positions for Environmental, Social, and Governance (ESG).  Some may be instituting corporate policies around environmental issues such as air pollution, greenhouse gas emissions, and compliance with government environmental regulations.  For example, The California Air Resources Board wants to “accelerate the transition to zero-emission to meet the state’s air quality and greenhouse gas reduction goals. They are currently developing a measure that would drive the greater deployment of zero-emission forklifts within fleets throughout the state; one of several near-term actions intended to facilitate further zero-emission equipment penetration in the off-road sector.  This measure is scheduled for Board consideration in 2023.”  Keep in mind; they already passed legislation requiring all new cars sold in the state by 2035 to be free of greenhouse gas emissions such as carbon dioxide. Just this past December, the Material Handling Industry (MHI) launched a new Industry Group, the Advanced Energy Council (AEC), focused on advanced energy solutions including lithium-ion batteries, hydrogen fuel cells, and other technologies and accessories.  As stated on the MHI website, “The group’s mission is to uplift and promote the safe use and adoption of advanced energy technologies in motive material handling applications by advancing sustainable motive material handling energy solutions.” The rental equipment industry is also embracing these regulatory impacts as they look to provide customers with higher efficiency, lower emission, and alternatively fueled rental equipment. In particular, with their MEWP rental fleets, many of the MEWP OEMs have introduced fully electric models, as well as incorporating lithium-ion battery technology too.  The end-customer they rent to, particularly on job sites, must adhere to stricter emission and noise standards. So what does this all mean to the sales of aftermarket parts and service for forklifts? Well, in general, electric forklifts tend to last longer than internal combustion trucks because they have fewer parts.  Having fewer replaceable parts, means fewer service and maintenance requirements, translating to fewer service and parts dollars available to capture for the lift truck service provider.  Enter the additional ‘solution’ to the full-solutions provider lift truck dealership.  Optimizing forklift battery management is a value-added service to the end customer that dealerships are recognizing as another revenue stream. In the traditional model, the dealership sells the truck to the end customer and the battery agent sells the battery through the dealership.  This raises the question, who owns the customer relationship and the customer experience?  Furthermore, who owns the forklift battery management after the sale of the new or used forklift?  As I have stated previously, modern lift truck dealership and independent service provider has evolved as they look to be a full solutions provider for all of the needs of their customers.  Adding sales and service of everything in the warehouse, including forklifts, personnel burden carriers, sweeper scrubber equipment, racking, dock and door, warehouse management systems, etc. Promoting the ‘one-stop shop’ full-service offering and delivering outstanding customer service, the forklift battery management is now being considered an addition to that same ‘one-stop shop’ offering. Today, battery manufacturers are sometimes more than just a manufacturer; they also provide after-sales support to their dealers for the forklift batteries, chargers, and accessories that they produce.  Many of these battery manufacturers have existing strategic partnerships with OEMs.  The rise of lithium-ion battery manufacturers has also led to an increase in strategic partnerships with said manufacturers and OEMs. Over the past few years, many dealerships have started to acquire forklift battery agent businesses or ventured on their own to provide full forklift battery solutions for their customers.  Solutions include industrial chargers, battery maintenance, used and reconditioned batteries, battery and charger rentals, and battery parts and accessories.  This is a trend that I feel will continue to be on the rise.  This trend will put the battery agents and the OEM dealers in an interesting situation.  As with the sale of a lift truck, the recurring revenue is in the parts and service after the sale of the lift truck as is the same for the sale of a forklift battery, there is more money in the service. The threat to the traditional OEM-Dealership model is the third-party service provider as they have already shifted their business strategies to attempt to capture a competitive advantage in the market.  As with dealerships, the third-party service providers have also started racking up acquisitions in the full-service forklift battery management space. If the trend in automotive does mirror itself into the off-road equipment sector such as the forklift industry, what will the impact be on your business and your market?  Everything from the diagnostics to the parts consumption are factors that will have an impact on your service departments.  The revenue in the sale and service of forklift batteries while maintaining and monitoring them for consistent, reliable performance and long service life is the value to the end customer regardless of who provides the battery service as it is a crucial part of the uptime of their electric forklift fleet.  The question is who owns this customer and the customer experience? 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.

Cheers to a New Year!

I hope that everyone reading this is coming off a great 2022 and is ready to come out of the gate firing on all cylinders in 2023.   As I write this article, topics such as inflation, interest rates, economic outlook, supply chain, automation, technology, competition for talent, and electrification of the North American forklift fleet remain at the top of mind for many lift truck dealers.  These topics and their impact on our industry could be a column each on its own.  However, to kick off this New Year edition, I wanted to briefly touch on some of these topics. Supply Chain The hidden cost of variability in the supply chain was the topic of my column in the October edition.  There I posed a few questions: What is your dealership doing to diversify your offerings?  Are the various departments within your dealership working together to optimize purchases of inventory and products from your suppliers? A few trends continue to prevail on the supply chain topic.  Labor shortages and disruptions are still a factor throughout the supply chain.  China is sticking to the zero-tolerance COVID-19 policy, which has the potential for disruptions when their ports shut down for COVID reasons.  Ocean freight rates are trending down; however, some are stating that this trend could be due to the early shipment of Christmas retail goods.  There is likely to be continued pressure on certain products, especially those with electronics as there have yet to be signs of improvement in chips or electronic components availability. Variability in the supply chain will continue to be a thing in 2023 and your procurement teams will continue to have to determine which products and commodities it makes sense to apply just-in-time inventory practices to vs just in case.  Businesses must continue to remain vigilant in anticipating supply chain disruptions and have alternative options ready in advance to avoid not only a negative impact on their revenue stream but also prevent negative customer experience. Automation It was great to see in-person trade shows thriving and back to pre-pandemic or higher attendance in 2022.  I attended last year’s MODEX show in person and it was evident that automation was one of the top themes.  Labor shortages continue to be a trend with our industry’s target customers such as warehouses, fulfillment centers, big box stores, etc.  These warehousing companies are implementing automation, robotics, and artificial intelligence to not only attract and retain a younger generation but also to fill the voids of shortage of labor in warehousing facilities. Many lift truck dealers in our industry have added systems and automation solutions to meet the needs of their customers over the past years, especially as they needed to have additional products to sell.  Smart warehousing and automation will continue to advance in our industry and there will be plenty of opportunities to sell parts and service this type of equipment as well.  The need for additional technicians on your service team will certainly play into the ability to provide aftermarket service on these systems. Competition for Talent The labor shortage and competition for talent, especially for your service technician workforce has been a hot topic for many years now and remains as such.  As I mentioned in my previous paragraph, if you are looking to add the service opportunities that come with the boom in smart warehousing and automation, then you will either look to add additional service technicians or invest in training your existing technician force.  As a growing number of service technicians are retiring or nearing retirement, dealers and independent service providers continue to face a shortage of technicians. The competition for talent is certainly not limited to your service technician staff.  The competition for parts professionals, sales staff, office personnel, and management will continue to be fierce.  You will want to be sure to keep your finger on the pulse of the retaining, recruiting, and development of your workforce.  Be mindful of what businesses are doing in not only this industry or adjacent industries; keep up with what businesses are doing across various types of industries. Electrification Many businesses now have dedicated departments and positions for Environmental, Social, and Governance.  Some may be instituting corporate policies around environmental issues such as air pollution, greenhouse gas emissions, and compliance with government environmental regulations.  For example, according to a recent article on the Rental Equipment Register website, “Sunbelt Rentals will be expanding its electric on-road fleet with an order of 700 Ford F-150 Lightning trucks. The purchase of the trucks will contribute to the goal Sunbelt Rentals set to reduce greenhouse gas (GHG) emission intensity by 35 percent by 2030.” Just this past year, the California Air Resources Board, passed legislation that will require all new cars sold in the state by 2035 to be free of greenhouse gas emissions such as carbon dioxide. If you visit the California Air Resources Board website, you will read there they are trying to “accelerate the transition to zero-emission to meet the state’s air quality and greenhouse gas reduction goals. They are currently developing a measure that would drive the greater deployment of zero-emission forklifts within fleets throughout the state; one of several near-term actions intended to facilitate further zero-emission equipment penetration in the off-road sector.  This measure is scheduled for Board consideration in 2023.” If the trend in automotive does mirror itself into the off-road equipment sector such as the forklift industry, what will the impact be on your business and your market?  Manufacturers and new equipment sales aside, the service of electric forklifts is different than the service of internal combustion or gas-powered forklifts.  Everything from the diagnostics to the parts consumption are factors that will have an impact on your service departments. Electrification in the forklift industry electrified equipment and fleets, will be hot topics in 2023. Technology As I wrote in my November column, B2C customer experience and shift of buying behavior to the ease of online transactions is now an expectation of your customers and

Vacuum Interrupters introduces RVI-WL34854A replacement vacuum interrupter

Vacuum Interrupters, a manufacturer of replacement vacuum interrupters, pole assemblies, parts, and components for medium-voltage vacuum circuit breakers and contactors, introduces the RVI-WL34854A replacement vacuum interrupter. This direct fit-and-function replacement unit meets original equipment ratings and is intended for use in Westinghouse VCP-W vacuum circuit breakers. The WL-34854A is a component in Westinghouse/Cutler-Hammer vacuum bottle pole assembly numbers 691C334G03, 692C794G01, 8297A02H01, 8297A02H21, and 8297A05H01. The RVI-WL34854A is built to provide excellent high-voltage insulation, high cumulative and breaking capacity, exclusive internal torsion control, and an excellent vacuum seal thanks to its fine alumina ceramic. The replacement vacuum interrupter offers 1200 A RMS-rated current, 15 kV RMS maximum voltage, 95 kV peak impulse withstand, and 31.5 KA RMS-rated short-circuit breaking current. No modification is required for the proper installation and operation of the existing electrical equipment. Vacuum Interrupters can also provide assembly components and mounting hardware to aid in installation and shorten downtime.