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WELCOME TO FORKLIFTACTION.COM, MATERIALS HANDLING ONLINE.
This is issue #185 - 25 November 2004 of the weekly newsletter for industry professionals.


IN THE SPOTLIGHT
“Forklift distributor Lilly Co has won a legal round in its litigation with forklift maker Yale.”

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IN THIS ISSUE WELCOME

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INSIDE FORKLIFTACTION.COMBack To Top

 
Forkliftaction.com launches online trading room for used equipment
Forkliftaction.com is launching an online marketplace for used equipment.
The sales team is busy populating the database with used equipment covering all machine categories: narrow aisle trucks through to full container handlers.
The Marketplace will ensure interest and solid enquiries for all advertisers. The website currently receives more than 70,000 visits per month, and is responsible for 2,000,000 hits.
Users will be able to search by geographical location, the type, brand, model, age, hours, price, lift capacity and lift height. Purchased equipment prices can be converted to a choice of currencies: USD($), CAD($), GBP(£), Euro(€) and AUD($).
For more information see: www.forkliftaction.com/news/marketplace.asp or email info@forkliftaction.com.
 


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SPECIAL REPORTBack To Top


Machinery Storage & Transportation: Part 2

The forklift business is an increasingly competitive, global industry and, like most other industrial businesses, it lives and dies by its ability to be flexible and respond to the needs of the market quickly and efficiently. As companies seek to broaden their reach further from head office, transport by sea is now, more than ever, a major part of the machinery supply chain. DAMIEN TOMLINSON reports.  Read more
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NEWS STORIESBack To Top


Steel-troubled JLG boosts pricing, reduces discounts
McCONNELLSBURG, United States


Order patterns remained strong but higher steel prices and supplier constraints bedevilled JLG Industries Inc in the fiscal first quarter ended October 31.

Pre-tax unrecovered steel costs, estimated at USD26.8 million, contributed to JLG reporting a loss of USD8.7 million for the period. JLG had a profit of USD533,000 in the comparable year-earlier quarter.

“Even synergies from the OmniQuip integration were not enough to offset the steel increases,” Chairman Bill Lasky said.

JLG bought Textron Inc’s OmniQuip unit in August 2003. OmniQuip integration expenses for the quarter were USD1.9 million and for fiscal 2004, USD16.0 million.

The access equipment maker aims to obtain an effective 6 per cent price increase in January through increases in a steel surcharge and base prices and reductions in consumer discounts.

“Every shipment after December 31 will be subject to the new pricing, including orders currently in the backlog,” the company said.

The surcharge goes to 3.5 per cent from the 2.75 per cent imposed in March.

An initial base price increase averaging 3 per cent was effective in mid-September, but “most comes in January as we get our backlog repriced as of that date,” said chief financial officer Jim Woodward.

Steel poses a headache. JLG needs more costly high-grade plate steel for its military products and requires harder-to-source steel in metric measurements for SkyTrak telehandlers and the Pro-Fit series of electric scissors.

Steel was selling on a weighted average at USD290 per metric ton and JLG was expecting the price to go to USD510, Woodward said.

“Now, it looks like USD600-USD700 (per metric) ton on a weighted average”, or more than 100 per cent higher than the previous year.

JLG was experiencing “a lot of shortage of critical components from suppliers we share with others in the industry”, Lasky said. JLG estimated that related manufacturing inefficiencies cost USD6.0 million during the quarter.

One analyst asked about JLG prices versus competitors.

“We are higher than anyone in the market on normal prices,” Lasky said. Noting JLG’s price increases this year, “we led (the industry in raising prices). We found it surprising some did not follow, but, the bottom line, we will continue to lead.”

JLG hinted at more price rises if steel pressures continue. “If we need to make increases in February or March, we will,” Lasky said.

For the quarter, JLG recorded sales of USD124.5 million for aerial work platforms, USD119.7 million for telehandlers and USD8.3 million for excavators.

JLG reported total first quarter sales of USD306.7 million, up 44 per cent from the previous year period’s sales of USD213.6 million. The OmniQuip transition makes it difficult to directly compare those sales results.
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Kalmar opens Shanghai plant
SHANGHAI, China


Construction work on Kalmar Industries’ USD10 million assembly plant in Shanghai’s Lingang Industrial Park is set to begin after a signing ceremony in Shanghai on November 17.

On hand to mark the occasion were the Shanghai vice mayor Yang Xiong, Shanghai Municipal Government vice secretary-general Zhang Hui Min and Finland’s Trade & Development minister Paula Lehtomaki. Other guests joining the ceremony included KONE Corporation CEO Antti Herlin, Kalmar president Christer Granskog and a Finnish business delegation.

The Lingang economical industrial zone is next to Yang Shan Port – a 20 million twenty foot equivalent unit container terminal development in which the first berths will commence operations in 2005.

Kalmar has operated in China since 1989 and is currently the biggest supplier of reach stackers, terminal tractors and heavy container stackers to the country’s ports and terminals.

The new assembly plant will primarily serve the Asian container handling market, the fastest growing area for Kalmar. Shanghai is an optimal location for this purpose as it has become the most important port in China.

The new 7000 square metre factory and office building are located on a 50,000 square metre property. Here Kalmar Industries (Shanghai) Co Ltd will begin assembling terminal tractors by the end of 2005. Kalmar’s Wai Gao Qiao facility will continue to be the base for the company’s service and support operations in Northern China.
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Judge supports Lilly in legal tangle with Yale
MEMPHIS, TN, United States


Forklift distributor Lilly Co of Memphis has won a legal round in its litigation with equipment manufacturer Yale Materials Handling Corp (YMHC).

Judge JG Breen granted Lilly a temporary injunction on November 23 that halted YMHC’s efforts to terminate Lilly as a Yale dealer in the mid-south.

Greenville, North Carolina-based YMHC can appeal all, or parts of the ruling, or it can prepare for a trial that is set to begin in August 2005 in the US District Court in Memphis.

The judge issued the ruling slightly more than a year after he took testimony involving plaintiff YMHC and defendants Lilly and Toyota Material Handling USA (TMHU) of Irvine, California (Forkliftaction.com News #135).

In its July 2003 suit, Yale claimed Toyota interfered in Yale’s long-time dealer relationship with Lilly (Forkliftaction.com News #121).

“We are pleased with the court’s decision, and we will continue to go forward,” said Craig Avery, chief operating officer for Lilly.

Avery said Lilly sites in Memphis; Jackson, Tennessee; Jonesboro, Arkansas; and Tupelo, Mississippi, represent both Yale and Toyota. Also, Lilly has a Toyota-only site in Jackson, Mississippi, and a Yale-only site in Nashville, Tennessee. The opinion mentioned Lilly’s sales growth to USD22 million from USD7 million over nine years prior to the TMHU link.

But the case was not over, noted Jeffrey Smith, a Memphis attorney representing Lilly.

“This does not end it. We have a long way to go. Lilly Co thought the attempted termination was wrong under the law, and we are gratified to see we will be a Yale dealer through the end of this procedure,” Smith said.

TMHU was also pleased.

“Toyota did nothing wrong as far as signing up Lilly as a dealer,” said Ronald Harris, a Nashville attorney representing TMHU.

YMHC President Don Chance notified Yale dealers in a memorandum.

“This decision was not unexpected, given the more than a year that it has taken to render a decision,” Chance said. “We are proceeding with this case and remain fully convinced that we will prevail on the merits.”

Judge Breen’s thorough 25-page opinion confirmed most Lilly positions and discounted most Yale arguments.

“The court finds that a preliminary injunction is appropriate due to Lilly’s strong probability of suffering irreparable harm,” the ruling said. “Yale does not appear likely to suffer any irreparable harm if it is enjoined from terminating the Memphis agreement.”

As noted in the opinion, Lilly would expect to discharge 40 per cent of its employees if the Memphis dealership was ended. Under that scenario, Lilly said it would be unable to fulfill price-constrained maintenance contracts with customers and “a large part of the customer base would be lost”, according to testimony of Lilly President Thomas J Clark III.

The supplier relationship between Yale and Lilly goes back 50 years. Their latest contract and two now-disputed dealer-marketing agreements were dated July 2, 2002.

One agreement grants Lilly exclusive rights to sell and service Yale products in Memphis, northern Mississippi and western Arkansas, and the other grants Lilly similar rights in middle Tennessee including Nashville. Both agreements are for three years and include a section prohibiting dealer Lilly from selling equipment that competes directly with Yale products.

Relations between Lilly and Yale deteriorated during the spring and summer of 2003, and Toyota began talking to Lilly about becoming a dealer in Memphis, according to Mr Clark’s testimony. Toyota needed a replacement for former dealer CTK Inc of Memphis (Forkliftaction.com News #124).

During 2003, Lilly entered into a non-binding letter of intent with Toyota on July 9, and Toyota agreed on July 24 to indemnify Lilly for litigation expenses if Yale sued. The matter was soon in a Tennessee state court and then in the federal setting before Judge Breen.
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Airtrax closes long-term distribution agreement
HAMMONTON, NJ, United States


Airtrax has entered into a five-year international distribution agreement with EMCON General Trading LLC in Dubai, United Arab Emirates, for the purchase of three Sidewinder Omni-Directional Lift Trucks.

The agreement is effective until 2009, at which time it can be automatically renewed for three more years. The yearly sales requirement for EMCON’s elected area of primary responsibility is the countries of United Arab Emirates, Qatar and Bahrain. According to the agreement, EMCON will use Airtrax’s Sidewinders for demonstration purposes and to promote the sale of Sidewinders throughout the area.

Airtrax president Peter Amico said the agreement was “a testament” to the Airtrax product.

“Deemed a ‘disruptive technology,’ our omni-directional vehicles offer one of the world’s most innovative alternatives to existing forklift options,” he said. “Through demonstrating our product, potential users and purchasers can experience unprecedented manoeuvrability and increased usage of warehouse space.”

The EMCON agreement would see immediate sales of about USD120,000 and potential recurring sales of USD2 million or more beginning in 2005.
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Nagatsu Kogyo to build Komatsu transmissions?
KOMATSU, Japan


Kyoto-based equipment maker Nagatsu Kogyo will invest JPY500 million (USD4.86 million) in a factory in Komatsu, Ishikawa prefecture, in a deal likely to see the Japanese company manufacturing forklift transmissions for Komatsu Ltd.

The factory, according to a Japanese News Digest report, will have a floor space of 4800 square metres and will be commissioned in March 2005.

“Nagatsu Kogyo will produce transmissions for forklift trucks at the factory and will sell the output to … Komatsu Ltd,” the report said.

Nagatsu Kogyo currently has two factories in Komatsu. When the new factory opens, the company expects JPY8 billion ($77.8 million) in annual sales from its three factories.
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Movers & Shakers

Rocla Oyj managing director Kari Blomberg has resigned to assume a new position outside the Rocla Group. Rocla has appointed deputy managing director Jussi Muikku to become acting managing director, effective November 18.

Finning (UK) managing director Stephen Mallett has been appointed president of power systems at Finning International in Vancouver, Canada, replacing Paul Jarvis. Neil Dickinson will replace Mallett. Nicholas Lloyd has added the role of Finning Group UK managing director to his current position as Hewden Stuart managing director.

Retired Caterpillar chairman and CEO Glen Barton has been presented a Lifetime Achievement Award by the Washington Coal Club at a special presentation in Washington, DC, USA this month.
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The dos and don’ts of forklift storage and transport

The following is a basic guide to safe transport and storage of materials handling equipment, as supplied to Forkliftaction.com News by forklift company TASK Australia’s Nick Ramage.

DON’T take your forklifts onto the road. The forklift is designed for materials handling only. It is an on-site machine and inappropriate for long-distance road travel.

DON’T lift a forklift by its overhead guard.

DON’T snatch the towing device as this may damage the tow pin or towing device.

DON’T use wooden blocks which are higher than 300 millimetres when supporting a forklift. Place equal-sized wooden blocks under both sides of the body. Lift the forklift and place it carefully on the wooden blocks – checking to ensure it is stable.

DO use solid wooden blocks. Ensure they are firm enough to support the forklift’s weight.

DO transport forklifts that are more than five tonnes capacity by ship, train or by truck.

DO use steel slings and shackles to lift truck. They should have holes in the two sides of the outside mast’s beam and the hook in the counter balance, then use a lifting device of the right lifting capacity to lift the truck.

DO use a correctly-rated lifting sling and lifting device to lift the forklift.

DO stand clear when lifting a forklift.

DO recharge forklift batteries. Remember that any forklift battery that will be in-situ longer than two months will require a recharge - consult fork service specialists for specifics.

DO secure the forklift for storage. For any storage of more than 12 months always place wooden blocks under the forklift and the counter balance to reduce the weight on the wheels.

DO use the towing pin in the bottom of the counter balance when towing forklift.

DO remove the towing pin and install the towing device to tow the forklift. Refit the tow pin. Place transmission in neutral, release park brake lever, tow forklift.
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Officials investigate Charleston accidents
CHARLESTON, SC, United States


State and federal workplace safety officials are investigating the fourth major accident since July at South Carolina’s port facilities.

Michael Clarkin, a 34-year-old dockworker, was critically injured last week at the State Ports Authority’s North Charleston terminal container storage yard when an empty shipping container fell on his vehicle.

International Longshoremen’s Association Local 1771 president David Hogan told AP that Clarkin was an experienced dockworker and was parked 35-40 feet away from where containers were being loaded onto a truck for transport.

The container broke away from loading equipment and flew 40 feet through the air, Hogan said. The state Department of Labor and the federal Occupational Safety & Health Administration began their investigations last week.

Since July, four workers had been seriously injured or killed at state port facilities, the AP report said.

• On July 5, William Edward Holst Jr died at the Wando Welch Terminal in Mount Pleasant when a crane operator mistakenly lowered a container on top of him. Universal Maritime Services was cited because Holst was not wearing a reflective vest.
• The same day, union dockworker William Rouse was hurt at the same terminal when a crane operator lowered a container onto a ship and pinned him between two containers.
• On July 13, longshoreman Roson Simmons was killed at the Ports Authority’s Georgetown terminal when three 1,000-pound rolls of paper fell off a forklift and crushed him.

OSHA planned to call in a team of regional investigators and maritime experts to examine all of the accidents and determine whether a correlation exists, or whether any safety procedures need to be changed.

Ports Authority spokesman Byron Miller said the port would conduct its own investigation of the latest incident. The ports have had good safety records, Miller said. In the 11 previous years, there had been just two fatalities, he said.
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Goscor adds big companies to its “stable”
DURBAN, South Africa


Goscor Lift Truck Co (GLTC), a Daewoo and Crown dealer in South Africa, has recently closed important sales in the Kwazulu Natal region.

Digistics, a logistics company responsible for KFC’s and Macdonald’s distribution, has taken delivery of a Crown ESR reach truck, a Daewoo G18 LP gas forklift and three Crown WPS-powered pallet trucks.

Goscor has also supplied a Daewoo D25 2.5 tonne diesel forklift to Denny Mushrooms of Shongweni.

Goscor Durban branch manager Micheal Keats said Goscor was delighted that the two important companies were now “in the stable”.

“These are two companies where lifting equipment is a critical item, and I regard it as a feather in our cap that they have chosen our company,” he said.
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Texas awarding grants for propane trucks
AUSTIN, TX, United States


The Texas Railroad Commission (TRC) has supplied the first grant in a new USD1 million program to help companies upgrade forklifts to reduce nitrogen oxides.

Under the Texas Emissions Reduction Plan (TERP), forklift owners receive an incentive to retire their old forklifts and replace them with new machines that meet emissions standards.

The TRC’s first grant, for USD8,510, was presented to Sarabia’s of El Paso, Texas, to go towards the purchase of a new, low-emission propane forklift.

“We’re very pleased to have been able to streamline the process for forklift operators to help clean up Texas air,” said TRC chairman Victor Carrillo. “Our program works for large and small operators, whether they have one forklift, like Sarabia’s, or many more.”

Commissioner Charles Matthews said the program’s potential air quality benefits were substantial.

“About 70 to 80 per cent of Texas’ estimated 36,000-45,000 propane forklifts operate in counties with air quality challenges,” he said. “If just 15 per cent of these forklifts were fitted with new fuel systems, new engines, retired early or replaced with new propane forklifts, Texas could lower smog-forming emissions by a total of 7,000-12,000 tons.”

To be eligible for the grants, awarded on a first-come, first-served basis, a forklift must operate in one of more than 40 Texas air-quality “non-attainment” or “near-non-attainment” counties.

See www.propane.tx.gov for more information.
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Obese forklift driver in fight for life
STRATHFOYLE, United Kingdom


Former forklift driver Patrick Broadbent, at 39 stone (250 kilograms), is battling for his life as he awaits vital surgery to save his life.

According to a report in the Mirror newspaper, Broadbent knew he needed help when experts used a truck weighbridge to find out how heavy he was.

He weighed 13 stone (83 kilograms) until he was 20, but gained seven stone in less than two years following an accident at work that left him with epilepsy.

“I was hit on the back of the head by a pile of pallets that fell over. I don’t remember much about the accident. I was in hospital for 10 days. When I returned to work I started having blackouts and had to stop work,” he said.

He was placed on a drug called Tegratol to curb the effects of his illness but he was devastated by the news and slumped into a depression. Broadbent blames the drug for his weight gain.

“I suppose if I lived in America I’d hardly get a second glance - but I live in Derry and it’s a very different matter,” he said.

Patrick has been assessed by a world authority on obesity and gastric bypasses, and now awaits life-saving bypass surgery next year.
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MEDIA RELEASESBack To Top


1. New!!! Durashield *Outdoor Storage* Covers For Lift Trucks With Rust Intercept Inhibitor

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Click here for the full text of this release, including pictures.
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YOUR EXTRAS
IN THE DISCUSSION FORUMS

UPCOMING EVENTS

JOB VACANCIES

RESUMES

FAST FACTS



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In the Discussion Forums
Can you offer any help?
"European Standards are EN- 1726-1 and 1726-2. The lift truck training in Suisse is porposeful by "arrêt U 2003 from TFA Tribunal Federal des Assurances - 24 juny 1994 . In The Association Suisse de Logistique ASL knows more: www.suva.ch/waswo"
ripoll, Spain

What do you think?
"No one has the answer to reduce injuries or fatalities, but I believe in one fundamental key - hands-on supervisors, lead hands or foremen (women). They must be able to recognize an unsafe use of a lift truck and if they are aware, they must take immediate action to stop this unsafe use."
garry_p, Canada

Rearview mirrors...
"As a forklift instructor, my advice to novice operators is not to rely on your mirrors because one day they may be removed. Novice drivers quickly develop habits and I usually twist the mirrors or remove them during training to encourage them to turn in the seat and look in the direction of travel."
Mark, Ireland

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Upcoming Events
1. ProMat 2005
Chicago, IL, United States
10th to 13th January 2005

2. Smart 2005 Conference
Darling Harbour, Sydney, Australia
1st & 2nd June 2005

3. TOC 2005 Europe
Antwerp, Belgium
14th to 16th June 2004

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Jobs
1. Outside Sales Representative - Full time
Los Angeles, United States

2. Aftermarket Sales - Full time
Chicago, United States

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Resumes
1. Manager - Full time
Anywhere, United States

2. Sales/Marketing/Product Manager - Full time
Asia-Pacific/US, Malaysia

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Fast Facts
1. New!!! Durashield *Outdoor Storage* Covers For Lift Trucks With Rust Intercept Inhibitor

2. Combilift Ltd recently introduced the C6000 GT lift truck to its US product line, a 6,000 lb capacity truck with an LP gas engine.

3. Gehl Co has made significant improvements to its 6,000 and 8,000 lb. “RS Series” rough terrain telescopic handlers. The machines have increased lift heights, up to 44’ on the RS8.

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