Concentric, LLC acquires Texas Motive Solutions

Concentric logo image

Concentric, LLC, the national provider of DC power management for the material handling and critical power industries, announced the acquisition of Texas Motive Solutions, a top provider of service solutions to forklift dealers across Texas. This acquisition expands Concentric’s footprint and capabilities for customers in two of the top 10 US logistics markets, Dallas and Houston. An exclusive provider of Hawker Powersource, Inc., Texas Motive Solutions has a well-established reputation for delivering efficient service in the battery sales and solutions niche alongside a strong team of expert, service-minded technicians. The company is led by Evin Sisemore, a veteran of the battery industry.  She founded Texas Motive alongside her husband, attorney Justin Sisemore in 2018. “Evin Sisemore has built one of the most dynamic sales and service teams in the forklift power industry, a sector that has historically lacked female figures in key leadership positions. We are humbled to add one of the industry’s best to our team at Concentric. Evin’s focus on the customer and forklift dealer aligns directly with our own mission to bring consistency, safety, and cost savings to our partners. We will be merging all Texas operations under Evin’s leadership and look forward to continuing to support our customers’ future success,” said Concentric Chief Operating Officer, John Winter. “We are excited to support Concentric’s success in the Texas market while expanding the services and capabilities we provide to our current customer base. High-velocity facilities are historically underserved in the forklift power industry and we look forward to helping them meet the challenges they’re facing while delivering results in an increasingly complex supply chain” said Evin Sisemore.

Digital Strategy and E-commerce

Chris Aiello headshot

Over the last six years, I have spoken with many people in our industry about their company’s digital strategy, more specifically e-commerce and selling their products online.  With November being the start of the holiday shopping season, especially online shopping, I thought it would be fitting to write about this topic as e-commerce and digital strategies continue to gain momentum in our industry. Digital Strategy There are many elements you must consider when developing a digital strategy for your business.  These elements include digital marketing and advertising, customer communication channels, search engine optimization (SEO), and e-commerce.  As I noted in last month’s article, the material handling industry is primarily B2B and these customers increasingly expect B2C convenience and customer experience.   Therefore, creating such an experience should be the foundation of your digital strategy.  Also, be sure to take note of what your competitors are doing.  In addition, be mindful of what your suppliers and manufacturers are doing. As you consider these elements of your strategy, you need to determine what the goals of your strategy are.  Are you looking to increase sales?  Are you looking to target new audiences?  Are you looking to improve how you appear on search engines?  Determine what is most important and tailor your strategy accordingly. For example, if one of the goals of your digital strategy includes growing the sales of your product portfolio, then your focus and efforts would need to be on the development of an e-commerce site or platform for your customers to purchase your products from you online.   If one of the goals of your digital strategy is to increase your brand awareness and customer engagement, then your focus would be on digital marketing through various channels such as social media and email.  If you are looking to target new audiences and increase customer leads, your focus should then be on search engine optimization and targeted content marketing.  These various elements of your company’s digital strategy need to be considered during the analysis stage of your digital strategy plan. Ecommerce Ecommerce was on an accelerated growth pace, even before the COVID-19 pandemic.  As you know, store closures and fear of getting COVID-19 during the pandemic created a major shift in consumer buying behavior, which further accelerated this growth pace.  This growth was not just exclusive to things we became accustomed to ordering online like shoes, apparel, and electronics; things like groceries and fast food were now being purchased online by consumers that may not otherwise have purchased online prior to the pandemic.  As with everything else, that B2C customer experience and shift of buying behavior to the ease of online transactions is now an expectation of your customers and prospective customers in the B2B world. It is important, now more than ever, to provide customers with the option to purchase your products online.  However, you need to be strategic about what you are setting out to accomplish with your e-commerce site.  Let us say, for example, that the goal of your e-commerce site is to increase the sales of your products through your parts department.  Awesome!  Turn on the e-commerce switch and watch the parts department sales grow, sounds simple, right?   Not so fast, there are a few things to consider and missteps to avoid as you look to deploy an e-commerce site as part of your digital strategy. One misstep I see that dealerships make when developing their e-commerce site is the lack of automation.  Your site should not only be an intuitive and seamless experience for your customers but should also be a seamless transaction for your business.  What I mean is that you do not want the transaction to be ‘clunky’ for your staff which creates additional manual steps to process an e-commerce order.  Talk with your suppliers, many offer web services integration that allows for real-time pricing, availability, and order submission. Another misstep along those lines is the service level that accompanies the e-commerce experience.  Make sure your e-commerce site allows for easy contact with your customer service staff as needed. Therefore, be sure to implement features like chat, a dedicated phone line, and a dedicated email address or online contact submission form.  You still need to keep in mind that your service level will set you apart from the competition.  Furthermore, a great user experience in this regard may lead to other opportunities for your other products and services such as new equipment, rentals, or service work. Another consideration, which I feel is one of the most important, will your e-commerce site interface with your ERP business system?  If you are operating on an older business system, this could potentially create limitations for those looking to interface their site with their system.  Talk with your ERP provider; see what resources they have available to assist with integrating your business system and your e-commerce platform. Additionally, consider how you will price your products online.  I would recommend exploring a ‘Login’ model.  This allows your current and loyal customers to have another avenue to purchase your products but also allows for special, discounted, and volume-based pricing for those customers with a unique login as needed.  In addition, will your pricing model be static or dynamic?  This is a topic we can explore in future articles. Finally, seek feedback from your existing customers.   Identify any potential “pain points” that exist for customers that purchase your products today.  You want your e-commerce site to provide them with the ability to self-service and the ability to order your products at their convenience. Having a good e-commerce site will not only help you retain and grow existing loyal customers, but it will also attract new customers and help build your brand. Search Engine Optimization (SEO) Simply stated, search engine optimization, or SEO, is the battle for the top listing on a given search engine page.  More importantly, since Google is the market share leader in the search engine space, let us call it the battle on Google search.  You can develop

Hidden Cost of Variability

Chris Aiello headshot

It is an honor to be the newest Aftermarket columnist for Material Handling Wholesaler.  When Dave reached out to inform me that I was among those he was endorsing for this opportunity, I was anxious and a bit sorrowful at the same time.  Sorrowful because I looked forward to reading Dave’s article every month as the knowledge he shared has always been an invaluable source of information for me.  Anxious because I looked forward to the opportunity to talk with Dean Millius to discuss my experience and current role in this industry and how it would be a great fit for me to follow in Dave’s footsteps. I have been in the material handling industry for 15-plus years, having held various roles such as service manager, quality assurance manager, and business development manager.    I got my start at a lift truck dealership that represented multiple OEM lines; starting out as a management trainee, I was fortunate to learn the various facets of the many departments within a dealership.  Operational processes such as damage and overtime billing in the rental department, service dispatch, billable hours and lost time, PM programs, to even looking at parts diagrams the ‘old school’ way on microfiche machines.  I have seen first-hand the evolution of the modern lift truck dealership and independent service provider as they look to be a full solutions provider for all of the needs of their customers.  In my current role, I get the opportunity to visit and meet with many of these dealers and manufacturers in the material handling market and other equipment markets such as rental companies and construction/earthmoving dealerships.  I hope to deliver valuable and current content each month as it relates to the aftermarket.  I also would welcome comments about topics, challenges, etc. that you are facing. Enough about me let us dive into this article.  Each year I look forward to reading the latest material handling business trends that MHEDA publishes.  When their 2023 trends were published, to nobody’s surprise, the topic of supply chain challenges continues to be at the forefront of discussion as an obstacle to growth even as we approach three years from the start of the COVID pandemic and the start of chaos in the supply chain. I think we have all become experts on the current state of the supply chain and its impact on not only your business but its impact on everyday life consumer goods.  There have been countless articles and industry publications on this topic over the past few years, so although the topic is not a new one, I wanted to touch on a few points from my perspective of where we are at in the current chaos of the supply chain. Inventory Lead Times When lead times for your replacement parts inventory are unpredictable, you either have to take on the cost of carrying extra inventory or the cost of failure to meet customer expectations. The current variability creates challenges in scheduling your technician’s time.  Some of your suppliers used to be able to provide next-day shipping or local same-day pickup.  Weekly stock orders used to arrive on the same day as clockwork.  All of these conveniences we used to take for granted have become unknown variables. If you lose that service job or counter sale of that one customer to your competitor, have you now lost that customer to your competitor for good?  Unfortunately, this scenario is a question that dealers face now more than ever.  While the material handling industry is primarily B2B, those customers increasingly expect B2C convenience and customer experience.  The ability to complete a same-day fix has become not a differentiator but rather an expectation of customers. One option is to invest more cash into your parts inventory or you risk losing those service jobs, or parts counter sales to your competitors.   While you cannot control the ports, railyards, truck drivers, or carriers, you can control the amount of inventory you choose to keep on hand, the amount of inventory you keep on your service van, and the visibility of your service scheduling to when and whether your service technician can complete a service job. Departmental Synergies I am always amazed when I am at a dealership and see rental, sales, and parts departments operate independently of each other when it comes to ordering products, parts, accessories, equipment, etc.  All of these departments are struggling with the same supply chain chaos, yet seem to go at it on their own. The new equipment sales department is battling long lead times for new equipment from their OEMs.  Some dealerships had already begun to sell conveyors, warehouse storage, sortation systems, and other integrated automation systems before the supply chain became a challenge.  Therefore, some dealerships already have a dedicated department and sales staff to sell this type of product.  If not, this is definitely a category of products to explore if your dealer has not already shifted to being a full solutions provider.  If your dealership already has its own division for this type of product, what else can the new equipment salespeople sell? One solution is if there is no dedicated parts and service sales team, they can shift their focus to selling parts and service.  Do they know all of the offerings that their parts department’s suppliers offer?  Depending on how your commission structures are set up, it may be a good idea to introduce the sales coordinators and new equipment sales staff to some of these suppliers.  Commodities and specialty products like pallet trucks, attachments, safety items, PPE, etc. are common items that new equipment sales departments are not aware that parts departments have sources for too.  Without a product to sell, you may run the risk of losing your salespeople. Many dealerships I visit tend to have a dedicated rental department and rental manager that make the parts and service decisions for their fleet of rental equipment.  In my experience, many rental departments operate with their own dedicated service

Bison Gear and Engineering adds Automated Gear Tooth Grinder

Bison Gear Auto Gear Tooth grinder image

The new machine improves product quality and increases production capacity Bison Gear & Engineering Corp., a provider in the power transmission industry, has added an Automated Gear Tooth Grinder to their gear hobbing department. This new equipment offers a range of benefits that improve product quality and increase production capacity. This unique machine frees up capacity on four other machines, improves the quality of gear geometry, improves the cycle time, and effectively grinds spur and helical gears. At a time when product demand outpaces production capacity, adding this single piece of equipment will help make available nearly 40% more production time on four separate hobbing machines. In this way, the Automated Gear Tooth Grinder significantly increases total gear-cutting capabilities. This new machine is also capable of grinding the gear tooth profile, leading to an exacting, .00005-inch precision. This means that the teeth will continually mesh at the same point, appreciably reducing wear and noise. This aspect of the grinder proves of great benefit to customers who have noise-sensitive applications. Customers can also obtain increased gear motor efficiency from the fact that lower-weight lubricant oils are needed when using grind-finished gear. The Automated Gear Tooth Grinder produces a better-finished product in ¼ of the time of a standard hobbing machine, significantly expediting the grinding process and improving the quality of the gear.

Farewell

Dave Baiocchi headshot

For the past six years, I have had the distinct honor of writing for Material Handling Wholesaler.  When I left my dealership to enter the consulting world in late 2016, I had no idea what to expect.  I was well aware of many of the challenges that lie under the surface of the day-to-day operations in a dealership.  My own company tackled some of these things head-on, and along the way, found innovative solutions that we never expected. As a consultant, I was able to tie these victories to key “best practices”.  I believed then (as I do now), that any dealer, in any marketplace, can be successful if they commit themselves to a “best practice” methodology.  Not every dealer faces the same dragons.  The challenges are many: OEM relationships Undercapitalization Debt Ratio Expense control Personnel issues Regulatory agencies Taxes No need to fill up the page.  We all get it. The best practices that I focus on in my business are the low-hanging fruit.  We many times miss harvesting that fruit because the noise and confusion of the current marketplace tend to drive us toward “problem-focused” activity instead of “process-focused” activity. Please make no mistake, I am not advocating ignoring or discounting existential threats to the health of your dealership.  It’s important to always create and deploy countermeasures for known and perceived threats.  This is why I advise that dealers utilize a regular SWOT analysis.  The issue I see too often however is when the leadership gets so focused on solving individual issues, they lose focus on their core best practice regimen.  The processes and accountability measures that undergird profitable day-to-day, operations, cannot be abandoned for any reason.    Problems are actually more easily and sustainably solved when solutions are achieved through the enhancement of best practices….not by subverting them or putting them on hiatus. During my time with RDS, I have assisted many dealers in creating and refining processes that continue to pay handsome dividends today.  I have developed programs from the ground up, and have also helped dealers refine and focus existing programs for improved results.  RDS has addressed almost every internal and external area of the dealership’s aftermarket departments. Expansion of customer maintenance programs Improving the field service customer experience Refining field service van inventory policies Service and parts teambuilding and motivation Compensation programs that engender a unified team SOP creation (or refinement) Effective, repeatable industry onboarding Even the best-performing dealerships were not ready for what was waiting for us in Spring 2020.   Here we sit over two years later, still trying to cope with the aftermath of the single largest disruption to American business we may ever encounter.  Even some of my most trusted metrics and ratios regarding rental assets, sales coverage, and marketing had to be adjusted for this unprecedented interruption to the status quo. While internal metrics (in extreme circumstances) should be adjusted based on market conditions, the “client-facing” processes that govern customer contact, pricing, documentation, internal expenses, and invoicing should be exempt from attenuation, especially when the headwinds blow. My consulting efforts during this COVID interlude were understandably affected.  Visiting dealerships, and helping dealers establish new initiatives were really not on the menu during 2020.  The madness only continued in 2021 as we could not seem to escape the continuing ramifications of our collective COVID nemesis. At the end of last year, I was constrained to reassess my own future in light of the changes that COVID had made to the industry.  I had a growing desire to be more productive, and continue to grow and innovate in a more meaningful fashion than COVID allowed. Thankfully, I found an opportunity to partner with an organization that is devoted to growing not only its revenues but also its influence as they seek to widen its appeal and extend its reach more deeply into the supply chain.   This new venture offers me the opportunity to stay much closer to home, yet still affords me a platform for sharing many of the same ideas I have had the privilege to share with all of you during my 6-year tenure. No doubt, I will miss the forklift business.  It’s not an easy task to walk away from an industry after investing over 40 years of your life.  Fortunately, I get to keep the memories, the friendships, and the things I’ve learned along the way.  I appreciate all of the kind and thoughtful comments I have received over the years.  They kept me writing when I felt like I might just be repeating myself.   My heartfelt thanks to Dean Millius, my editor, publisher, and valued friend. This industry, although evolving, will always require bright minds and new ideas.  Thank you for letting me be a part of that mix.   I have no doubt you all will be eager for the challenges that lie ahead.   You can always find me on LinkedIn if you want to share new ideas or just chat. Godspeed to you all.  Dave About the Author: Dave Baiocchi is the president of Resonant Dealer Services LLC.  He has spent 40 years in the equipment business as a sales manager, aftermarket director, and dealer principal.  Dave now consults with dealerships nationwide to establish and enhance best practices, especially in the area of aftermarket development and performance.  E-mail editorial@mhwmag.com to contact Dave.

Motion promotes Solomon to Senior VP-Corporate Accounts

Lisa Solomon Headshot

Motion Industries, Inc., a distributor of maintenance, repair, and operation replacement parts, and a premier provider of industrial technology solutions, is pleased to announce that Lisa Solomon has been promoted to Senior Vice President – Corporate Accounts. Ms. Solomon joined the Company in 2015 as a Business Development Manager focused on an automotive industry account, before transitioning the same year into an Automotive Specialist role concentrating on a different automotive account. In 2016, she expanded her role to a Corporate Accounts Manager overseeing the entire automotive segment. In 2021, Ms. Solomon was promoted to Area Vice President – Corporate Accounts, leading a team of 16 sales professionals in the Central Group. In her new role, Ms. Solomon will lead all of Motion’s Corporate Accounts in North America, plus other Company teams, including the Corporate Accounts Support group, Corporate Accounts Development, P2 MRO, Onsite Solutions, Energy Services, and International Sales. She will report directly to James Howe, Executive Vice President – eCommerce, Sales Excellence, Strategic Pricing, and Corporate Accounts. “Lisa has been very successful in the Area Vice President role and has emerged as a peer leader for our AVPs across North America,” said Mr. Howe. “Her leadership and significant experience will further strengthen Corporate Accounts and maximize growth potential. She is well-deserving of her new and expanded position.” Motion’s President, Randy Breaux, said, “Lisa is a talented executive with a wealth of experience and drive. We’re excited to see her lead Motion’s Corporate Accounts to new heights.” Originally from Michigan, Ms. Solomon graduated from Central Michigan University with a Bachelor of Liberal Arts in Broadcasting, Communications and Marketing.

Inflation Strategy – Part 4

Dave Baiocchi headshot

The summer of 2022 is not really looking better than the Spring.  the business climate is still tenuous as labor issues, COVID variants, and geopolitical uncertainties create continue material and labor shortages.  Our biggest obstacle is the meteoric rise in inflation.  Over the past three articles, I have laid out a series of strategies that could be employed to realign the policies and practices inside your dealership.  We must be pragmatic in making intelligent decisions in response to a very different distribution landscape. My prior articles have touched on different approaches to assessing progress and setting goals using a SWOT analysis.  I have also suggested strategies for maintaining your revenue stream in sales, by reexamining dealership policies governing rental retirements, and long-term rental contract extensions. I offered ideas about maintaining your sales department profitability by keeping pricing policy “ahead” of the inevitable OEM price adjustments, even for units currently on order. I also touched on ways we could adjust parts policies regarding inventory decisions, vendor selection, and expense recovery. Leveraging the rise in inventory value, that is automatically created during an inflationary cycle is a key factor in maintaining profitability during these times. In this article, I want to turn my attention to the service department, and how the changes in the marketplace give rise to both opportunities and risks that we must prepare for. Labor Rate Methodology Inflation is dangerous because it feeds a vortex of two market forces.  Prices rise…. but so do wages.  It’s a simple cause-and-effect construct.  To remain competitive and maintain your position as an “employer of choice”, you must increase your wages.  As wages rise, the amount of dollars entering the economy grows ever larger, thereby forcing prices even higher.  This price-wage vortex is difficult to control, and once again, we need to stay “ahead” of the curve. Inflation and wage growth do not change the long-standing “best-practice” ratios that serve as guideposts for setting (and adjusting) retail labor rates.  The proven ratio is 3.2 to 3.6 times journeyman wages paid. If you are paying your journeyman technicians $35 an hour, your effective retail rate should be between $112 and $126 an hour.  If you are constrained to pay $42 an hour due to inflationary wage growth, your rates need to follow suit at between $135 and $151. This will be uncomfortable, and awkward, especially if you have to enact multiple rate increases during the same calendar year.  As disquieting as this can be, we must be committed to our ratio. The math does not change because the costs are rising.  We must keep pace. You may want to exempt the selected customers from the increase.  I get it.  I’ve been there.  May I suggest however that instead of exempting them completely, you instead attempt to ramp them into a higher rate over time?  If they are already enjoying a discount from your effective rate, calculate the percentage increase represented by the retail rate hike, and cut it into three to six segments, enacted over a period of months. Instead of a $15 jump in rate all at once, you make an agreement to step up smaller increases every 60 or 90 days.  Once your train your customers that they can expect to be insulated from rate increases, you will find it hard to unwind that expectation.  If your methodology however rewards their loyalty with gradual increases over time, you may find it easier to manage this process. Callout Fees As hard as it will be for customers to stomach rate increases, it will be even more difficult for them to accept paying those rates for travel time.  This is a recurring theme in dealerships all over the country.  Customers can see the value when the tech is actually onsite making repairs, but not so much when they are sitting in traffic logging windshield time. I have long been a proponent (especially for customers within a 60-mile radius) of establishing a flat rate call-out fee for field repairs.  Charging a different amount every time a customer contacts our dispatch desk is already infuriating your customers.  Raising the bar on that price only heightens the level of frustration. Some dealers charge travel time based on “zones”.  Travel charges are flat rated based on how far the customer is from our dealership.  Most of the time, however, we dispatch a technician directly from his remote location to the customer’s place of business.  The only time we might dispatch them directly from the dealership is for the first call of the day.  So, is your zone charge accurately representing the cost of travel?  Maybe…or maybe not. You may want to consider a flat-rate fee for all dispatched field calls in your service area (60 miles).  Whether the technician is across the street, or across the county…. it’s the same price every time.  Customers will know what to expect, and there will be much less frustration connected with service invoicing.  Rural customers outside the 60-mile zone can still be charged hourly, but truth be told, they expect it, and are generally less sensitive to travel time than their in-town counterparts. Setting this callout fee is not really that difficult.  If your dealership uses a GPS service provider (which most do) you can use the GPS reporting data to separate transit time from on-site time.  Use the fleet average on travel to extrapolate the average total transit time per tech, per day.  Apply your effective hourly rate and set your callout fee.  Remember to account for things like lunches, commute time, and other anomalies. Surcharges – Fuel Our current inflationary cycle is driven by fuel prices.  These prices are unpredictable.  It’s not a good idea to try and recover a spike in fuel prices, with a rate increase.  Wages should drive hourly rate increases…not expenses. This highlights another area of frustration for customers.  During times like this, when fuel prices are running well in excess of historical norms, you have to have a way to recover the expense

Patent issued for DoAll Robotics Light, Star of Automate 2022

Smart Vision Lights DoAll Light image

Smart Vision Lights (SVL), a global provider in the design and manufacture of innovative LED illumination solutions, has received patent number US 11,328,380 B2 for its latest machine vision light innovation and standout at the recent Automate 2022 conference and exhibit: the DoAll Light. The patent is the latest addition to the Smart Vision Lights portfolio of patented machine vision-related illumination technology. “Not being able to gather together the last two years made this year’s Automate 2022 conference in Detroit something special,” noted Matt Pinter, CTO, Smart Vision Lights. “But the icing on the cake for us was the incredible reception we received from early showings of our DoAll Light for robotic inspection and complex assembly applications. The DoAll doesn’t just combine six different types of machine vision lights with 32 control channels. It gives users the flexibility and advanced control they need for solving complex assembly and inspection tasks, including deep learning solutions.” The DoAll Light is an all-in-one solution that is unprecedented in its flexibility for machine vision illumination applications. A dome light, two angles of dark field illumination, NIR and RGBW ring lights, and four-quadrant multispectral ring light are all combined in a single unit. The DoAll Light is particularly useful for robotic and other flexible automation systems. The ring lights can be independently controlled and have red, green, blue, white, and 850 nm NIR channels that can be mixed for any color or for VIS + NIR inspections. The dome light provides diffuse illumination for electronics inspection and other final feature inspections, where hot spots and shadows can pose challenges. The two angles of dark field ring lights provide versatility and can illuminate a wide range of scenes, from fine surface textures to larger features such as screws. Finally, the four-quadrant ring light enables 3D photometric stereo inspection. All these functions and features are packaged in a single light enclosure. Initially designed to be mounted at the end of a robotic arm, the DoAll Light includes multiple ports for connecting auxiliary lights, such as spots or linear lights. The DoAll Light is part of an advanced illumination system that includes the light, a sequencing controller, a 4ZMD (four-zone multi-drive) LED driver, and cables. The DoAll Light comes with many options, including LED colors and optics. The DoAll Light is now available in limited release for key customers in robotics and automotive manufacturing. The DoAll is expected to be commercially available by the end of the year. For more information about the DoAll and other industrial and machine vision LED light products from Smart Vision Lights, visit SmartVisionLights.com.

Under-promise and over-deliver

Dave Baiocchi headshot

The title of my column is the mantra of many aftermarket professionals in our industry. Nobody ever wants to get a reputation for not living up to their commitments. But as easy as this guidepost is to talk about, it remains elusive and difficult to master.  The reasons for not achieving this on an ongoing basis are wide and varied.  No, it’s not always “Murphy’s Law”.  My friend Murphy gets the blame all too often. I think that to achieve this goal we must understand that this process, is less about actual “promises” and “deliverables”, and more about managing customer expectations.  That is the real goal here.  It’s not simply our ability to deliver on time and under budget.  It’s really about the strength of our connection to the customer, our understanding of his priorities, and the efficacy of our communication. Do we interface with our customers in a way that they feel is authentic, trustworthy, and reliable?   I have found over the years that customer dissatisfaction normally starts with our inability or unwillingness to communicate, especially in situations where the customer is constrained to wait longer than they expected, or pay more than they anticipated. Assessment first In the service industry, many customers are already emotionally compromised from the first encounter.  They know they have a problem.  What they don’t know is HOW MUCH and HOW LONG.  This frustration is evident even as we try to assess what steps need to be taken to understand the scope of the project.  These customers many times want you to adopt their urgency and sense of panic.  They press you to make verbal commitments very early in the process about both the repair diagnosis, the estimated costs, and the expected timeline. In these moments, service professionals need some backbone.  ABSOLUTELY REFUSE to make (or even make allusions to) estimated costs and timelines for repairs until the assessment process is complete. Diagnosis and troubleshooting are a part of the repair process.  We cannot manage the customer’s expectations BEFORE we are fully aware of the requirements.  One of the best practices I have seen involves providing the customer with a written statement.  It can be emailed, texted, handed to customers onsite, or distributed by road technicians. “We understand your urgency and your concerns about affordable equipment repairs. Please understand that we cannot and will not provide any estimated costs or timelines for any repair until a complete assessment of the machinery has been completed.   This is a process that may require multiple approvals from you for disassembly and inspection PRIOR to starting repairs.  We will communicate with you at regular intervals as to our progress in diagnosis.” The last sentence is the key to success.  The more frequent the updates, the more control you will have in the process. Get the facts. Do we understand the entire scope of the repair? What parts are needed? Are the parts available? How will parts availability affect the timeline? Do we have the right tools (including software)? Do we have qualified technicians? Only after we have these answers should we approach the customer with a repair estimate and timeline.  We cannot afford to let the customer’s urgency set the pace or accelerate our decision-making.  I am fond of telling stressed-out customers that I understand their anxiety, but in the end, they will be glad we took the time to get it right the first time. Bad news on the doorstep Nobody wants to deliver bad news.  Bad news sucks. So, we avoid engaging it until the last possible minute.  This is a recipe for disaster.  The news won’t change during our wait for the inevitable.  So, put on your big boy pants, “embrace the suck”, and communicate confidently.  Below, I have listed some “go-to” phrasing that may help you navigate these waters. “We discovered some difficulties with your machine, and wanted to make you aware of what your available options are”.   I use the word “difficulties” because it’s the only word that doesn’t cast blame.  Using words like “problem”, “issue”, or “failure” tend to leave the blame on the customer’s shoulders.  “Difficulty” however is a word that simply calls everyone to action.  It isn’t impossible, catastrophic, or unsolvable, it’s just difficult. I use the word “options” because it calls everyone “forward”.  “Options” generally follow the same pattern in any emergency repair operation. Option 1: Order new parts now, and complete the repair ASAP Option 2: Investigate alternative options (aftermarket parts, sublet, or partial repairs). Option 3: Button it up and bill the customer for inspection and diagnosis. If possible, it helps to have estimates of the costs of all 3 options in your pocket.  That should be easy to calculate on option 3.  The other two options may take more time to assemble, but even without estimated pricing, our communication with the customer is about OPTIONS.  When our discussion with a customer revolves around an unforeseen circumstance, the worst thing we can do is simply throw it in their lap. “Your transmission is toast”.  “Your battery is completely shorted out”.  “Your frame is cracked”.   OK…now anticipate what the NEXT QUESTION will be. It’s not hard.  They’re the same questions every time. How much? How long? What are my options? When you use the OPTIONS method, you present the bad news ALONG with at least SOME of the answers to the questions that you know are coming next.  Even if you may not know the exact costs, or the timelines yet…. anticipating and laying out the framework for what comes next, let the customer know that YOU are already thinking ahead on their behalf.  That gives them a degree of comfort even in the face of really bad news. Speak…then memorialize in writing So many ruined customer relationships die on the altar of “but, you said”.  The verification platform for “verbal agreements” is limited to the memory of the parties involved in the conversation.  It’s just my observation, but I find that memory tends to be

Don’t wait until 2023 for equipment you need

Dennis Sanacore headshot

Loading dock doors and all related equipment are part of the backbone of our country’s supply chain. It’s easy to forget the role they play in the success or failure of our facility operations – most of the time the equipment we rely on just fades into the background as we turn our focus toward uptime, productivity, and moving product. It’s only when that equipment suddenly fails or falls apart that we realize our operations are literally dependent on the functional status of our equipment. This may sound obvious, but for so many of our clients – this realization comes too late, and the regrets (of lackluster maintenance processes and lack of attention paid to the equipment) are many. Many facilities are facing extremely extended wait times for replacement parts and equipment. Pre-pandemic, typical wait times for new door panels or dock levelers may have been around four to six weeks. Now, we’re looking at four to six months. I recently spoke with a client who waited 32 weeks for new doors and even then only received pieces of what he needed – not the full order. It’s a challenge to even find the parts right now, let alone keep operations running smoothly as you wait months for them to arrive. For facility managers looking to take control back into their own hands, I have three tips. This guidance will help better position your operation and may mitigate the likelihood of having to wait six or more months for new equipment. Double or triple your investment in equipment maintenance – While there’s not much to be done about dock and door equipment that’s already failed, there’s still significant opportunity for cost- and time savings when it comes to the currently functional equipment in your facility. Even if some of your dock and door equipment is only passably functional, you still have that opportunity to protect your investment and avoid having to replace the part. The key is upleveling your focus and investment on maintenance and ongoing assessment. While your facility certainly has a maintenance strategy and process in place, given the current supply chain disruptions I’d recommend doubling or tripling the time and manpower you invest into this process. The more focused attention you provide to your still-functional equipment now, the more likely you are to catch small glitches that could soon turn into big problems, and the more likely you are to avoid having to replace that equipment. So whatever your past strategy has been for maintenance, it’s time to double down. Save every potentially-functional equipment part – Take a lesson from the book of our grandparents, who preferred to save and mend their belongings instead of just discarding them. The practice of salvaging pieces that still have potential value and use, and then pairing that with an open mind and creative thinking, can help you to create some of your own workaround solutions for keeping things running in your facility. If a piece of your loading dock door or other equipment is not completely structurally shot, reserve it for possible later use. With your team’s ingenuity, you may be able to identify a new home for that piece and prevent having to replace more equipment later. Assign a section of your facility’s storage area to these parts and pieces, and make the whole team aware that the new practice is to save everything, waste nothing, and get creative about finding our own solutions. Begin working on a specialized, custom equipment stocking program now – This tip won’t do much to help a facility currently struggling under the burden of equipment failures and long wait times, but it will go a long way to ensuring smooth operations in the future. The unfortunate reality is that many more supply chain disruptions will likely occur in our lifetimes – possibly due to other pandemics, crises, and conflicts – or due to unforeseen causes. It’s better to be prepared well in advance before these situations arise so that you’re equipped and ready to handle them in the best possible way. And one of the best ways to be prepared is to develop a bespoke, custom program and process – potentially in concert with a well-connected vendor partner – to develop custom equipment specs, asset tagging, and tracking. Don’t just continue to rely on the equipment inherited from the previous facility operator – begin to build out a standardization process for specializing your equipment, your process, and your partner for replacing that equipment. When you have that in place, you won’t be dependent on the same equipment and the same replacement process used by everyone else. With so many competing priorities, a disrupted supply chain, and a stressed manufacturing and distribution industry, it’s no wonder that so many facility leaders aren’t keeping their equipment maintenance top of mind. We all have a lot to think about right now, and it’s easy to see why equipment can fall by the wayside. But it’s the kind of problem that only gets worse over time. Take action now to begin to change your process for dock and door equipment upkeep – you’ll thank me later. About the Author: Dennis Sanacore is vice president of strategic sales at Miner, the docks and doors special division of OnPoint Group. He has more than two decades of experience within the facility services, warehousing, and logistics sectors.

Inflation Strategy—Part Three

Dave Baiocchi headshot

As 2022 grinds toward the midway point conditions have not really been improving. The climate continues to be driven by high demand, dwindling supply, rising prices, and an uninspired workforce.  The Federal Reserve has been slow to take its medicine and tighten credit to try to halt what some would categorize as “runaway” inflation.  Add to that, the disruption to the energy sector caused in great part by Russia doubling down on war, that by the day is looking more and more like a stalemate.  In my last two columns (April and May), I laid out a series of strategies that could be employed in order to reshape and align dealership goals moving forward in light of a post-pandemic, but the sluggish and unbalanced economy. This month I want to turn my attention to how these factors affect our efforts in parts.   Inflationary pressures, as well as shortages from suppliers, will force us all to think differently about our vendor choices, our stock order time frames, our cost calculations, and our pricing policies. Parts Vendor Decisions I’ve been in this business for 40 years and I have never seen a time when so many consumable parts were on backorder.  The word “delay” doesn’t even begin to cover what we are facing.  Many of you have long-standing relationships with your current parts suppliers.  These suppliers can no longer deliver the parts you need, and in many cases cannot even provide you with an estimated delivery date.  These are not 1-off esoteric parts.  I’m talking about oil, coolant, filters, hoses, and belts.  Inventory that we have counted on for years; inventory that will immediately affect our ability to service our customers. In these conditions, many are quick to abandon their current supplier and find another alternative.  I understand the “any port in a storm” logic.  There should however be some considerations given to qualifying a vendor before starting a new relationship.  Throwing a PO at a new vendor just because they can deliver parts tomorrow morning, may not be a smart idea.  It pays to ask WHY they have stock on hand when your current supplier doesn’t. What is THEIR source for these materials? What assurances do they provide that the quality of their parts will meet our customer’s needs? Does their oil have the proper API rating for the equipment you are caring for? What is the micron rating of the filters? Is their coolant the correct type for the equipment (IAT, OAT, Hybrid)? Just because it’s the right color doesn’t mean it meets the standards. Suffice it to say that quality matters.  I’d rather try to explain why I have to reschedule the customer’s service than I would try to explain why my new oil is making their units overheat. As an aftermarket organization, your reputation is riding on the quality of the parts you choose, and the capability of your suppliers to stand behind their products if they fail. Price increases – current price or average price Right now, you are most likely seeing price increases affecting every stock order you place.  One dealer reported to me that the last four oil deliveries all came in with different net costs.  How do you manage the pricing policy when the costs are changing every 10 days? Usually, there is an ebb and flow to the way price increases are effectuated in the industrial marketplace.  The regulating factors are easy to identify.  In short, prices increase because costs become unmanageable.  Your supplier raises their price. Your employees demand higher wages. Increases in health care, interest rates, insurance, taxes, and regulations give you no choice but to feed the inflationary monster. In the last 30 years, price increases have moderated year over year.  Increases in efficiency and healthy competition at the wholesale level have provided price stability in the marketplace.  Annual price increases have ranged between 2%-5% per year, and are mostly on the lower end of that scale. What we are facing now however is more than anomalous, it’s downright frightening.  Labor shortages, supply chain interruptions, and geopolitical circumstances are affecting every market, not just ours.  Retail prices can’t seem to find a resting place, as consumer products from fast food to used cars quickly become unaffordable. My point here is that if we are going to survive this disruption, we need to understand that as a supplier, there can actually be an UPSIDE to inflation. That upside is called INVENTORY.  When wholesale prices increase, all the stock on your shelf becomes more valuable.  There are dealers who manage their retail prices based on “average cost”.  Prices are marked up based on the median “per unit” cost of the item.   If I own 10 at a cost of $1.00 each, and this month I buy 10 more at a cost of $2.00 each, I now own 20 at an average cost of $1.50.  If my markup is 1.55 (35% GP), then my retail price would be $ 2.33. This is a dangerous pricing strategy in an inflationary environment.  It blunts the effect of rising prices by using existing inventory to dilute the net inventory value.  If this is the way your ERP system is calculating parts pricing, you may want to rethink your practices.  Our existing inventory value actually needs to be adjusted every time prices increase!  To do this we need to design our markups based on LIST PRICE, or LAST COST ENTERED.  Using this practice, a price increase automatically affects the net value of every item we currently own. My example above would now calculate differently.  If the system uses the “last cost entered” as the basis for a markup my retail pricing on the item would go from $2.33 to $3.10.  Extending price increases to your entire inventory is imperative in times like these.  Your ability to pay your own rising expenses will be predicated on your willingness to leverage existing inventory to your advantage. Collect ALL your freight costs – by weight or by item Another

Motion’s 2021 Supplier of the Year award winner: Gates

Motion Industries, Inc., a distributor of maintenance, repair, and operation replacement parts, and a premier provider of industrial technology solutions, named Gates Corporation “2021 Supplier of the Year.” The award recognizes companies that have shown exceptional commitment to Motion through quality products and services, as well as earning the highest score in the multi-faceted Supplier Stratification rating system. The presentation took place May 3rd at Motion’s headquarters in Birmingham. “We value and appreciate the relationship that we have with the Gates team,” stated Motion’s President, Randy Breaux. “Over the past couple of years, we all have faced challenges like never before—with a pandemic, supply chain shortages, workforce issues, and now inflation. Together, Motion and Gates continue to exemplify that relationships truly matter.” Kevin Storer, Motion’s Executive Vice President of U.S. Branch Operations, added, “As the Motion team works to deliver value to our customers and continually earn our place as the premier industrial solutions provider, we are proud to have innovative and dedicated suppliers such as Gates.” “On behalf of all Gates employees, we are truly honored and humbled to receive the 2021 Supplier of the Year Award from Motion,” said Grant Gawronski, Chief Commercial Officer of Gates Corporation. “For over 75 years, Gates and Motion have worked closely together to serve industrial customers with the highest levels of service, quality, and innovation. Working through the challenges of the past few years further highlights the strength of this relationship, as well as our optimism for our future, combined success.” Joe Limbaugh, Motion’s Executive Vice President of Supply Chain, Operations Support, Marketing, and Enterprise Excellence, said, “Suppliers who finished in our Top 50 are the ‘best of the best’ in our industry, and to rank first in this elite group is extremely impressive—especially with our rigorous rating system. We look forward to mutual success with Gates in 2022 and beyond.” Motion’s Supplier Stratification formula is a rating system that evaluates each supplier’s performance in a number of Supply Chain, Marketing, and Field Support categories.

Westminster Hydraulics is now a Merlo dealer

Westminster Hydraulics in Taneytown, Maryland is now a Merlo dealer. Mid-Atlantic area businesses needing truck-mounted equipment, liftgates, cranes, and attachments know to call upon Westminster Hydraulics. Now, Westminster supplies Merlo telehandlers and Rotos to the Mid Atlantic market. “Bringing on the Merlo product line further expands our ability to adapt to customer needs,” said Michele L. Cooney, Westminster Hydraulics Vice President. “We did our research to find a line that complements our existing offerings. The Merlo Roto is a strong, quality-driven option for material handling equipment, in both the arbor and construction sectors, that will help us serve our expanding market.” “Westminster is a stellar company that understands its market and the customers within that market,” said Brian Hatch, AMS-Merlo Territory Manager. “The Merlo Roto fits well with their market plan.” Over the years, Westminster’s small and nimble team of highly skilled individuals has grown the company to expand its offerings to include everything from fabricating & upfitting, to service, parts, and sales. “Our Team”, Cooney said “is our work family.  We aim to create an environment and provide meaningful benefits that show how much we value their dedication.” This caring for the employee carries over to caring for the customer. “We take great pride in providing a level of customization, craftsmanship, and commitment to quality that is distinct in our builds.  Cooney added. “Merlo Rotos fit this commitment. We provide honest guidance and reliable support to all our customers.” “With the Merlo Roto, tree care businesses can create a complete package of rotating telehandlers with grapple saw. Hatch said. “And, their construction and utility customers now have another option for safe, material handling at height.”

Force Control presents Made in America Industrial Clutches and Brakes

Force Control Products Made in America image

Force Control Industries designs, manufactures, inventories, and services industrial clutches and brakes from their Fairfield, Ohio factory.  This family-owned company has been manufacturing domestically for over 50 years, supplying cost-effective Buy American Act compliant industrial products.  Among the benefits of building products in the USA are shorter lead times, with easier and faster shipping.  Communication is often vital, especially on engineered or modified products; a common language saves time, reduces mistakes, and generally makes the process more cost-effective. Since 1969 the company has innovated with Oil Shear Technology, producing long-lasting clutch and brake products that require virtually no maintenance or adjustment.  Many Force Control products from the early years are still in service.  Posidyne® clutch brakes are available in many varieties including foot mounted double shaft extension, foot mounted C face, double C face, and the X Class cost-effective OEM clutch brake.  The Posistop line of air or hydraulically actuated industrial brakes are manufactured in foot mounted, C face for mounting on the back of a motor, double C face-mounted between the motor and gear reducer, and flange mounted brake configurations. The X Class Posistop is an economical C face brake for packaging and food processing OEMs. Positorq® brakes are designed to provide tension or absorb energy. They are used to tension diverse products such as paper unwind stands to steel processing lines. The same units can be used as load absorbers for such applications as dynamometers for tractors, hydraulic motors, low-speed electric motors, or off-road equipment. MagnaShear™ motor brakes typically mount to the back of a motor and are used as a stopping brake, not just a holding brake.  Totally enclosed designs are impervious to dust, dirt, moisture, grease, oil, and other contaminants, making them ideal for harsh environments.  MagnaShear™ models fit NEMA frame 56C to 440 motor frames and produce torque from 6 to 1250 lb-ft., so they are suitable for a wide range of industries and applications. How Oil Shear Works All Force Control products feature Oil Shear Technology.  Unlike dry brakes, oil shear technology includes a layer of automatic transmission fluid between the disc and the drive plate.  As the fluid is compressed, the fluid molecules shear – thus imparting torque to the other side.  This torque transmission causes the rotating discs to decelerate against the stationary plates bringing them down to stop.  Since most of the work is done by the fluid particles in shear, wear is virtually eliminated.  Elimination of wear also eliminates the need for adjustments which are common for dry braking systems. In addition to transmitting torque, a patented fluid recirculation system helps to dissipate heat which is the major problem with traditional dry brakes.  Along with heat removal and torque transmission, the fluid serves to continually lubricate all components of the oil shear brake, elongating their service life.  MagnaShear™ brakes with oil shear technology provide significantly longer service life, characterized by virtually maintenance-free operations.

Inflation Strategy—Part Two

Dave Baiocchi headshot

As we traverse the road forward in 2022, the business climate is becoming clear.  High demand, dwindling supply, rising prices, and an uninspired workforce.  What a combination!  In my March 2020 column (Inflation OMG!), I laid out a series of strategies that could be employed in order to reshape and align the sales department in this new and different distribution landscape.  At the end of the March article, I promised some ideas on similar strategies for the rental, parts, and service departments. This month I am going to make good on that promise.  My first intention was to provide these strategies in my April column.  I rethought that course of action.  Because the disruption to our businesses is so acute, I thought it better to do “first things first”. The first step in the creation of an effective plan is to take stock of your resources and use your collected data as a basis for a SWOT analysis (Strengths – Weaknesses – Opportunities – Threats).  In times where resources are running low but customer expectations are high, we tend to panic and naturally react by “shooting” before we “aim”.   This consumes resources even more quickly. Although you can re-read the April issue, in short, a properly executed SWOT analysis does the following five things: SWOT Slows everyone down. As customer urgency rises, our response is to “speed up” and answer quickly.  SWOT counteracts this by preplanning responses and understanding the ramifications of a kneejerk reaction. SWOT tells the TRUTH about existing and future resources. It is, what it is. We are not magicians.  We can’t simply wish more resources into existence. SWOT defines how resources will be distributed. No shortcuts, no workarounds, no rogue ideas SWOT defines what we are best at doing. When supplies are short…. they MUST be pointed at the CENTER of your target. SWOT warns us about what we struggle with. Don’t throw shrinking resources at a black hole. With a well-defined SWOT analysis behind us, we can now talk about rental, parts, and service strategy.  The reason I wanted to talk about a SWOT analysis BEFORE I present strategies is because not every idea presented here will square with your SWOT findings.   So, use what fits.  Discard what doesn’t. Rental Department Strategies Make no mistake.  Rising prices and the absolute lack of new inventory in 2022 will mean that the OTHER departments in the dealership have to produce more profitability for the dealership to meet its obligations.  The rental department is critical to producing these profits. Rental asset decisions One of the natural tendencies that dealer principals have, when inventory is in short supply, is to reallocate new equipment (ordered for the rental fleet) to the sales department to fill waiting customer orders.  I understand the temptation to do this, and on its surface, it might seem like the right decision to make.  The downside to doing so however must be recognized. The benefit to the dealership as a whole is served by rental assets adhering to a cycle of replacement that is proven in our industry.  Extending the rental life of units in rental service increases maintenance costs affects depreciation allowances, and most importantly, precludes the rental department from raising their rates in an inflationary environment (see next section). As attractive as these rental assets may be to the sales department, the fact remains that the sales department’s long-term appetite for inventory will likely not be satiated.  The needs of the DEALERSHIP will be better served by putting that new unit in service at an existing rental customer.  This will allow the unit currently in service, to be retired, refurbished, and made available to sales.  It also may allow the rental department to RAISE THE RATE on the new replacement.  Additionally, it provides a depreciation benefit to the dealership and reduces service expense and exposure.   Surrendering rental assets to the sales department may placate a nervous customer, but it gives the dealership no hard financial benefit.  In fact, the sales department will still get a unit to sell in the end, it’s just used, instead of new. Price increases – Base Rates As the acquisition price of rental assets rises, the rates must follow suit.  For the last 20 years or so, short-term rental rates have been stuck in neutral for a myriad of reasons.  Low inflation, low-interest rates, and better technology leading to decreased maintenance costs are all factors that held retail rental rates in check. The newest inflation spike however will serve to force all of us out of that rut.  As supply dwindles, so will the available units for rent on your lot.  There is no reason not to raise basic published rates now.  Do some math here.  Historically, best practice suggests that monthly rental rates should represent 4% to 5% of the net acquisition cost of the equipment.  In most dealerships, we have not kept that ratio.  Even “preferred customers” are going to have to stomach an increase, and quite frankly, I don’t think they will be surprised.  After all, every other cost is increasing at the same time. Hourly Usage Charges Another unexploited area is the over-use of short-term rental assets by customers.  Your rental document probably specifies that the rental rates quoted, allow for eight hours of equipment usage per day, 40 hours per week, and 160 hours per month.  It should also specify the “per hour” penalty for exceeding these thresholds. My observations are that these charges are seldom levied on customers and the entire issue of short-term overtime billing is routinely ignored.  For long-term rentals (mostly full maintenance units), we don’t hesitate to explain these penalties, because we are constrained by the finance company to do so. Not collecting for over-use of equipment is especially damaging in seasonal and agricultural applications where units are literally run around the clock. My advice is to use the shortage of available rental inventory at this juncture, to shift your policy towards enforcing the hourly stipulations.  If you EXPLAIN

How to prevent Bench Grinder accidents

Rockford System grinder image

Statistics indicate more than half of grinder accidents result from operator error Because bench grinders are everyday machinery in workplaces nationwide, many operators become complacent about their hazards. However, bench grinders are very dangerous when used improperly. Statistics show that more than half of grinder injuries, such as fingers caught in the machine, or eye and face lacerations, are the result of operator error. Rockford Systems, LLC, a provider of machine safeguarding products and services, offers this primer on grinder safety regulations to help prevent accidents. First off, it is important to be fully versed in the regulations that outline safe grinder installation, maintenance, and operation. The workplace regulations that apply to grinders are OSHA 29 CFR SubPart O 1910.215, a “machine specific” (vertical) regulation with a number of requirements, which if left unchecked, are often cited by OSHA as violations. ANSI B11.9-2010 (Grinders) and ANSI B7.1 2000 (Abrasive Wheels) also apply. Carefully review these sets of regulations before operating any grinding machinery. Work-Rests and Tongue-Guards  OSHA specifies that work rests be kept adjusted to within 1/8-inch of the wheel to prevent the workpiece from being jammed between the wheel and the rest, resulting in potential wheel breakage. Because grinders run at such high RPM, wheels actually explode when they break, causing very serious injuries, blindness, and even death. In addition, the distance between the grinding wheel and the adjustable tongue guard — also known as a “spark arrestor” — must never exceed 1/4-inch. Because the wheel wears down during use, both these dimensions must be regularly checked and adjusted. Grinder safety gauges can be used during the installation, maintenance, and inspection of bench/pedestal grinders to ensure work-rests and tongue-guards comply with OSHA’s 1910.215 regulation and ANSI standards. To do so, wait until the wheel has completely stopped and the grinder is properly locked out before using a grinder safety gauge. Grinder coast-down time takes several minutes, which may tempt an impatient employee to use the gauge while the wheel is still rotating. This practice is very dangerous because it can cause wheel breakage. Other advice: where grinders are concerned, personal protective equipment (PPE) usually means a full face shield, not just safety glasses. The fact is, an employee cannot be too careful with a machine that operates at several thousand RPM. Remember to document any safety requirements set forth by OSHA as that is the best evidence that safety procedures are being followed. Ring-Testing OSHA requires that grinding wheels be ring tested before mounting them. This simple step prevents the inadvertent mounting of a cracked grinding wheel. Ring-Testing involves suspending the grinding wheel by its center hole, then tapping the side of the wheel with a non-metallic object. This should produce a bell tone if the wheel is intact. A thud, or a cracked-plate sound, indicates a cracked wheel. For larger grinders, grinding wheels are laid flat on a vibration table with sand evenly spread over the wheel. If the wheel is cracked, the sand moves away from the crack. To prevent cracking a wheel during the mounting procedure, employees must be very carefully trained in those procedures. This starts with making sure the wheel is properly matched to that particular grinder, using proper blotters and spacers, and knowing exactly how much pressure to exert with a torque-wrench, just to mention a few things. Wheel Covers  This OSHA-compliant Wheel-Cover allows no more than a total of 90 degrees of the wheel left exposed. (65 degrees from the horizontal plane to the top of the wheel cover). Never exceed these wheel-cover maximum opening dimensions. Larger wheel-cover openings create a wider pattern of flying debris should the wheel explode. A well-recognized safety precaution on bench/pedestal grinders is to stand well off to the side of the wheel for the first full minute before using the machine. Accidents have shown that grinding wheels are most likely to shatter/explode during that first minute. OSHA Instruction Standard #STD 1-12.8 October 30, 1978, addresses the conditional and temporary removal of the “Work Rest” for use only with larger piece parts based on the condition that “Side Guards” are provided. Grinder Do’s Always handle and store wheels in a careful manner Visually inspect all the wheels before mounting for possible damage Make sure the operating speed of the machine does not exceed the speed marked on the wheel, its blotter, or container Check mounting flanges for equal size, relieved as required, and correct diameter Use mounting blotters when supplied with wheels Be sure work rest is properly adjusted on the bench pedestal and floor stand grinders Always use a safety guard that covers a minimum of one-half the grinding wheel Allow newly mounted wheels to run at operating speed, with the guard in place, for at least one minute before grinding Always wear safety glasses or some type of approved eye protection while grinding Turn off the coolant before stopping the wheel to avoid creating an out-of-balance condition Grinder Don’ts Don’t use a wheel that has been dropped or appears to have been abused Don’t force a wheel onto a machine or alter the size of the mounting hole – If a wheel won’t fit the machine, get one that will Don’t ever exceed the maximum operating speed established for the wheel Don’t use mounting flanges on which the bearing surfaces are not clean, flat, and smooth Don’t tighten the mounting nut excessively Don’t grind on the side of conventional, straight, or Type 1 wheels Don’t start the machine until the safety guard is properly and securely In place Don’t jam work into the wheel Don’t stand directly In front of a grinding wheel whenever a grinder is started Don’t grind material for which the wheel Is not designed Rockford Systems offers a wide variety of safeguarding products for grinders including motor starters, disconnect switches, and shields.

Dr. Shrink, Inc. celebrates 30 years as a global provider in Shrink Wrap

Dr Shrink 30 year logo

Dedication to its customers, world-class customer service, premium product offerings, and willingness to provide experienced advice on the proper way to shrink wrap are just a few of the reasons Dr. Shrink, Inc. has been in business so long. The company celebrates 30 years of success in April 2022.  Starting in 1985, before the birth of Dr. Shrink, Inc., Mike Stenberg worked as a shrink wrap installer wrapping boats, machinery, airplanes, buildings, etc. for about seven years, where he perfected the trade and acquired skills to make shrink wrapping easier and more efficient. As shrink wrapping became more prevalent and widespread, Mike saw a more pressing need for the distribution of premium shrink wrap and installation supplies; thus his focus shifted from being a shrink wrap installer to a distributor. In 1992, Mike retreated from the actual shrink wrap installation work to focus on the selling and distributorship of shrink wrap materials—and this is when Dr. Shrink, Inc. was born. Dr. Shrink, Inc. was founded in 1992, by Mike & Jill Stenberg in Manistee, Michigan, as a two-person operation in their home. It has since grown into a 20+ employee international corporation that distributes its products across the world. “Taking a step back and thinking about the last 30 years, it’s humbling,” says Mike Stenberg, President & Founder of Dr. Shrink, Inc. “Jill and I started Dr. Shrink, Inc. in our home and distributed products out of our garage. Our initial vision for the company was to offer expert shrink wrap installation advice, technical support, and provide excellent customer service—all while selling the highest quality, premium shrink wrap and accessories as a “one-stop-shop” for all things shrink wrap. Today we couldn’t be more proud of this company, and the people we have on our team. There is no way Dr. Shrink, Inc. could have reached this milestone without the loyalty of our amazing customers, distributors, and our team of fantastic employees.” Dr. Shrink, Inc. has not only supplied its premium 100% virgin resin shrink wrap, but it has also been a leader and innovator in the shrink wrap industry for the past 30 years. The company is responsible for many of the accessories and practices that are implemented by installers and distributors across the globe. “When we realized the potential of the industry, we had to get more involved on the ground floor,” says Ryan Polcyn, VP of Sales & Marketing of Dr. Shrink, Inc. “The people that we have met, and the businesses and distributorships we have seen grow and expand, not just locally, but internationally have been extremely rewarding. Knowing that our products, training techniques, and resources have contributed towards their success is just incredible.” Throughout the years, Dr. Shrink, Inc. has also found ways to get involved within the communities it serves. From their promotion of breast cancer awareness and their “Think Pink” Shrink Wrap fundraising efforts to their multi-state shrink-wrap recycling drives, it’s about much more than just selling shrink wrap and supplies. “I appreciate each and every one of the people we work with on a daily basis in many countries around the world.  The excellent service and products that Dr. Shrink, Inc. offers wouldn’t happen without our tremendous team of customer service representatives, distributors and vendors, warehouse employees, and salespeople who work very hard to make us a world-class business,” says Bart Stenberg, General Manager of Dr. Shrink, Inc. As Dr. Shrink, Inc. looks toward the next 30 years, their commitment to its team, community, and industry has served them well and they are excited about what the future holds. “Every day I get up and look forward to who we can make a connection with,” says Mike Stenberg. “If it’s someone in my hometown of Manistee, or somewhere in Europe or the Far East, it’s the people, connections, and relationships that have and will always keep me motivated. A warm and heartfelt “thank you” to all our distributors and customers for trusting Dr. Shrink, Inc. to be your shrink wrap supplier over the years.”

Ideal Warehouse Innovations launches new Ground Mounted Trailer support

Ground Mounted Trailer Support image

Ideal Warehouse Innovations launches its new, No Boots on the Ground™ trailer support system for busy loading docks The product innovation team at Ideal Warehouse Innovations, a provider in loading dock and warehouse safety, has developed a new, hands-free, trailer support system – The Ground Mounted Trailer Support (GMTS). With the future of dock safety heading towards automation, the GMTS can be deployed/retracted with the push of a button. The new support is permanently positioned in the trailer docking area in its retracted state. When a trailer has been docked and secured, the GMTS can be activated from inside the loading dock area, rising to support the trailer from below, during loading/offloading. An Ideal Warehouse Innovations No Boots on the Ground™ solution, the GMTS is built for the busy dock environment where a worker in the yard would be at risk from dock traffic. Unlike most trailer support options, the GMTS is not manually deployed by a dockworker but is operated safely from inside the dock area, eliminating risk and saving time. Background: When a truck is positioned in a loading dock for shipping and receiving, the weight of the loaded forklift working within can create an imbalance or cause aging landing gear to fail. A trailer collapse can be a devastating outcome that puts forklift drivers, dockworkers, cargo, equipment, and facilities all at risk. Positioned at the trailer’s nose, the Ground Mounted Trailer Support prevents trailer collapse and protects your people, loading docks, and workflow! The trailer support/trailer stand product family includes options for virtually every type of dock environment.  Solutions will be demonstrated at MODEX – Booth B6419, Atlanta GA, March 28-31, 2022

Inflation – OMG!

Dave Baiocchi headshot

In December of 1980, I left college and got my first full-time job.  We had just elected Ronald Reagan in a landslide election, but Jimmy Carter was still the President.  The hostages in Iran had been held captive for over 400 days. The unemployment rate was eight percent.  Our economy was facing runaway inflation.  Nobody knew quite what to do, or what to expect next. In 1976, the inflation rate was 4.6%.  Four years later it had skyrocketed to 12.5%.  The Federal Reserve uses interest rates as their primary tool to stem the tide of dollars flowing into the marketplace and bring inflation back under control.  In the six-month period from June to December of 1980, the federal funds rate was raised six consecutive times, starting at 8.5% and topping out at 20%.  The prime rate in December was an astronomical 21.5%.   It was a portentous moment to start a career.  The standing joke of the day was: “I dozed off for a moment…. did the prime rate go up while I was asleep?”  We only laughed to keep ourselves from crying. Only people born before 1960 were affected by (or even remember) this near-catastrophic economic upheaval.  Ronald Reagan re-ignited the economy using tax cuts, deregulation, and incentives.  Life went on…prosperity returned. That was 40 years ago.  40 years is a long time.  How quickly we forget the tenuous economic legs on which we stand. For the rest of the ’80s and most of the 1990s, we were able to enjoy a robust economy, while maintaining control over the money supply.  Rates were moderated with the FOMC occasionally adjusting federal funds rates which averaged between 3.0 – 5.0% through the mid-2000s. Then in 2008, an unprecedented banking crisis nearly took the country into a deep depression.  Credit tightened, as banks had to adjust to new regulatory parameters.  The Federal Reserve, in an effort to soften the severity of the economic impact, started printing money (using the bond market and a new euphemism called “quantitative easing”).  They also lowered the fed funds rate to spur borrowing of those printed dollars, in an effort to get the economy moving again. All of this phantom liquidity caused some concern.  Rewind to 1980.  Too many dollars, chasing too few goods equals inflation.  Surprisingly…inflation did not materialize.  So, the Fed lowered rates again…and again…and again.  From a high of 5.25% in June of 2006 to a low of 0.25% in December of 2008. For the next 13 years (with a few notable exceptions), the government has kept printing money and making it available to banks at nearly zero net cost. This left many (myself included) scratching their heads about the mathematics connected to economic inflation.  The banks, the investment firms, the government bailouts, the low-cost loans, and even a worldwide pandemic could not seem to stir the inflationary beast. Funny thing about inflation; by the time you figure out it’s started… it’s already out of control.  Well, it seems the wildfire has been started…on a very windy day.  The supply chain crisis has finally kicked us over the edge of the inflationary cliff.  All of the printed dollars circulating in the economy have fewer and fewer places to go.  Cars, machinery, real estate, clothing, food staples, gasoline, building materials, and nearly every other consumer and commercial category are facing rising prices as demand increases, and supply shrinks. In January of 2021, the CPI inflation index was at 1.4%.  It DOUBLED two months later (Mar 21 -2.6%).  Then it doubled AGAIN on May 21 (5.0%).  At this writing, the numbers for November were just published at a staggering rate of 7%.   Ships are still waiting to unload at the ports, shortages are becoming commonplace, and makers of microchips are still reporting lead times that extend well into 2023. Yes…. we need microchips to build forklift trucks. Inflation is not “on the horizon”.  It’s not “transitory”.  It’s here…it’s real and as dealers, we are directly affected by it.  For the past 40 years, we have not really had to deal with spiking prices.  Our SOP’s, our pricing policies, our workforce, and our customer service processes will all need to be reviewed.  Our success in 2022 and beyond will in great measure, be predicated on the decisions we make NOW regarding inflationary pressure.  In this article, I want to suggest a few key areas where we need to prepare the management team ahead of this expanding price wave.  Doing so will ensure that we maintain adequate profitability as well as long-term customer retention. New Equipment Sales My wife and I just purchased a new vehicle a couple of months ago.  Have you been to a car lot lately?  What did you see?  New cars?  No, you didn’t.  You saw USED cars.  That’s because every dealership in the country is waiting on their inventory from the factory…. just like we are.  Of the model we were interested in… they had a total of two in inventory.  We were quoted a full sticker price PLUS $4,000 if we wanted to drive it off the lot.  No deals. No discounts.  They knew exactly how many new cars they were apportioned, and exactly what they had to sell them for in order to remain in business.  They didn’t really care if we bought it or not, because someone would….and quickly.  We wanted it, so we paid for it. We also knew that to find another one, we would have to drive over 100 miles, and pay the same price.  So, our options were limited because the INVENTORY was limited. Can you sell your new lift truck inventory on the yard for the list price?  Perhaps not…. But you need to understand the power that scarcity gives us.  As a sales manager, I can’t ignore the fact that we may be out of stock by the time the trees are in bloom.  Every dealer has a minimum profit percentage for a new forklift deal.  Raise the floor on that expectation NOW.  Announce