Can the Right Forklifts Give Your Business a Lift? An update on technology advances and ideas about whether to buy new or used?or to lease.

Full disclosure, I first stepped into the path of an oncoming autonomous forklift about three years ago, and I did it on purpose.

I was visiting a production plant in Sweden, and my host urged me onto the facility floor to start my tour. But then I froze. I was looking for the painted path—the designated pedestrian pathway, but there was none to be seen. Several forklifts were crossing back and forth, moving skids of crates and stacking them. There were no operators. “Come on,” she said. “They’ll work around us.” I took a breath and followed.

Sure enough, the driverless lift trucks heading in our direction gradually slowed to a stop, top lights blinking, and then plotted a deliberate course around us. She explained that these machines work slowly, but never take a break, and never call in sick. That was my sobering introduction to the brave new world of forklift technology.

 

Technology Advances

While the driverless forklift might be the most sensational technology advance, it could be awhile before you see them on a pallet plant tour. To date, most commercial activity has been for indoor forklift usage in manufacturing environments. Regardless of the application, vendors are continually striving to make lift trucks safer, more ergonomically friendly, more efficient and greener. Let’s explore these advances and other issues in forklift technology.

 

Safer Design

Today’s forklifts are much safer than in the past, offering improved visibility, providing a quieter ride, onboard camera systems, as well as other safety features. For example, Toyota offers its Auto Turn-speed control, which automatically controls the optimum turning speed according to the lift height, load weight and turning radius. When necessary, it will slow the truck to a safe turning speed. Other features include sensors for safe driving on slopes, anti-rollback, as well as blue LED backup lights that shine on the floor to warn pedestrians.

 

More Ergonomic

Ergonomic improvements can help eliminate strain for an aging workforce, make operators happier and more focused at work. Some basic ergonomic features include a forklift being designed for easier three-point mount and dismount, adjustable steering wheels and comfortable seats. 

Vendors have worked to reduce vibration as well as provide smoother operation. Pallet Service Corporation, for example, has chosen to go with Linde H-30T 6,000-lb. capacity machines at its Maple Grove operation. The hydrostatic drive on the propane powered machines ensures gentle acceleration and braking. Given the heavy snowfall in Minnesota, the smooth acceleration also helps provide better traction in the snow.

 

Greener and More Efficient 

Forklift suppliers are increasingly looking to make machines more efficient in terms of fuel economy, power sources, running hours between servicing and overall productivity. One way that pallet companies have increased forklift productivity, especially in the West, is through the use of multiple load handlers—multiple sets of forks that can allow a truck to handle up to six stacks of pallets at a time—think three sets of double deep forks.

Forklift suppliers are also seeing a trend toward more electric forklifts to cash in on reduced operating costs and greener operations. Electric forklifts help companies eliminate their fuel bill and emissions. While the wood products industry hasn’t yet experienced much of a swing to electric, Capital Materials, Inc., an Atlanta-based, construction supplies distributor, recently switched to electric Linde forklifts at one of its Atlanta locations. 

“We decided to use electric forklifts because of the reduced fuel cost, the reduced maintenance and less emissions,” said Jamie Walker, assistant manager. Capitol Materials chose the Linde Series 387 – an electric counterbalanced forklift powered by an 80V battery with a capacity range of 4,500-7,000 lbs.

“The specific features we like in our Linde products is the ease of use, the comfortability, and the ergonomic design of the hand controls,” said Walker. “They’re just durable products that we can count on.”

The forklift industry is also experiencing a shift from traditional lead acid batteries to fuel cells and lithium-ion alternatives. The latter technologies enjoy longer running times between charges, and much faster charging times. Additionally, getting rid of lead-acid batteries eliminates the need for a dedicated battery room, the need for spare batteries, and the danger of battery acid spills as well as flammable hydrogen sulfide gas. Lithium-ion (Li-ion) batteries also last three to five times longer than lead-acid units.

Lithium-ion is still just in the early stages of adoption for the wood product sector even though these products are offered by a number of vendors. One forklift supplier, Kalmar, recently concluded a deal with a leading Polish manufacturer of chipboard products for nine electric forklift trucks powered by lithium-ion batteries.                  

“This deal is significant as it is the first major order for our new eco-efficient electric forklifts,” stated Peter Ivarsson, Kalmar’s director of sales and marketing for forklift trucks. “We want to develop industry shaping solutions that minimize the environmental impact of our customer’s operations. Li-ion technology and electric drivelines in general benefit forklift customers in a huge variety of ways, from improving the eco-efficiency of their operations to boosting productivity and cutting maintenance and operating costs.”

Telematics—the use of onboard sensors, wireless communications and other technologies, has received a spike in interest over the last two years. It is being adopted by business operators looking to enhance their forklift fleet management. Telematics is available from major forklift suppliers as well as third party providers. These systems can provide a range of features, including maintenance management, operator access control, safety inspection checklists, as well as automated alerts and reporting.

 

New or Used?

Many small and medium size businesses still instinctively look to the used forklift market when adding to their fleet. “Everyone drops into the showroom asking for used,” one forklift sales executive told me under condition of anonymity. “I would say that on average, for counterbalance lift trucks, just one inquiry in 50 might be for new.”

Aside from past practice, there are a few compelling reasons to look for used trucks. To start, the price is going to be lower—perhaps 60% of 70% of new for a decent condition machine, according to our forklift insider. One online article suggests savings of 30-50% versus new. Another bonus of acquiring pre-owned equipment is that the purchase cycle is typically much shorter than it would be for ordering a new machine.

The bad news, he noted, is that companies tend to hang onto forklifts for too long. By the time they reach the used equipment market, they may have seen decades of hard service. They will need ongoing maintenance. To make matters worse, the industry is facing an increasing shortage of service technicians that can mean delays in servicing equipment breakdowns.

“There are huge repair bills, and they are growing because there are not enough mechanics to fix them,” he said, noting that too many companies come to accept a lack of forklift reliability as a fact of life. This may be a reality that they would not tolerate from other production equipment.

Given high ongoing maintenance costs and higher downtime, the total cost of ownership for used forklifts can be much higher than buying new ones. “I have a very frank conversation with people,” he said. “I tell them if they have the capital or the credit available, to buy new.” This is especially true for operations where the business is very reliant on uptime, and where machines will be driven for more than 15 hours per week.

Given the lack of availability for good quality used lift trucks, he recommended to plan early when looking to acquire a suitable machine. “If you find something that fits your needs and the price looks good, don’t hesitate and don’t drag your feet (in purchasing it), he cautioned.

 

Buy or Lease?

Leasing has become increasingly popular for several reasons. Leasing comes with lower initial cost, the productivity benefits of running new equipment after each lease term, and the opportunity to move onto a different forklift model after the three- to five-year lease period ends. By turning over machines, leasing provides access to the latest technology, as well as potential tax advantages, and the opportunity to build a maintenance service agreement into the lease.

On the other hand, the financing costs ultimately end up being higher for a lease than for a purchase. Other things to watch for in a lease agreement are penalties for overuse, and the dealer’s track record for service provision. If you have concerns, it may be prudent to negotiate a spare machine or loaner equipment in the contract to cover unintended downtime.

The bottom line is that whether your forklifts boast the latest and greatest technology, or battle scars from decades of faithful service, they will continue to carry the load of material handling for your operation. This is an area that many pallet companies frankly ignore even though it is critical for material flow. If forklifts are critical to your operation, it is worthwhile to consider your total cost of ownership and whether a new forklift strategy would give your company a lift.

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Rick LeBlanc

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Pallet Enterprise November 2024