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|They say any race is easier when you can see the finish line. So this week’s exclusive survey of business conditions provides a welcome sign of recovery. As Roger Renstrom reports, some North American industry leaders predict a turnaround in the first quarter of 2010. While that’s still half a year away, at least many are seeing positive signs, with sales and orders holding steady or picking up. But more importantly, the glimmers of hope send a strong message to employers not to opt for the “quick fix” and slash costs and reduce headcounts, but rather to hold steady and prepare for the recovery which is already on the horizon. We can but hope …|
|Market improvement may occur in 2010 |
|By Roger Renstrom|
The economy remains sour but three forklift industry players see brighter days ahead, according to a Forkliftaction.com News survey.
“We believe a noticeable turnaround will happen in the first quarter of 2010,” says Ronnie Keene, vice president of sales and marketing with Bolzoni Auramo Inc, which makes forklift attachments in Homewood, Illinois as a business of the Bolzoni Auramo Group of Piacenza, Italy.
“We are not excited about the balance of this year, but we anticipate a turnaround by the end of the first quarter in 2010,” says Jim Hogan, general sales manager of the TCM America Inc distribution division in Swedesboro, New Jersey. TCM America forklift manufacturing occurs in Columbia, South Carolina. TCM Corp of Tokyo is the parent firm.
“We’re seeing signs that the market is slowly coming back,” says Dan Peter, director of marketing with Hoist Liftruck Mfg Inc in Bedford Park, Illinois. “Quoting activity has tripled since the third and fourth quarters of 2008 as companies are gradually becoming more confident to move their business forward. Granted, many are still hesitant and decisions are taking longer to be made, but there’s business to be had out there.” Hoist manufactures heavy-duty forklifts.
The downturn has seen sales in the proverbial tank, required labour and investment reductions and resulted in some market adjustments.
“The North American lift truck market is still weak, but we believe the worst is behind us,” notes Keene. “Our sales closely mirror the North American ITA (Industrial Truck Association) sales which are approximately 45% plus off from 2008.”
Keene says Bolzoni Auramo implemented work force reductions in Illinois early in 2009’s first quarter. “At this time, we are not expecting any future adjustments in 2009,” he observes.
A shift is occurring in US manufacturing of Bolzoni Auramo’s carton clamp attachments. “Plans are now in place to produce 65%-70% of our products in the US”, Keene reports. “In 2008, approximately 50% of our attachments were manufactured in Homewood, and the remaining products were imported from Europe.”
TCM has seen a 50% drop in sales since September 2008, Hogan says. “We were hoping for an upswing” but have not experienced one yet.
TCM has gone through staff reductions and some closures at the South Carolina plant, “typically for a week per month for the past three months,” he notes.
In working with its dealerships, Hogan indicates that TCM has offered some support programs including subsidization plans for financing, extended floor and rental terms.
The climate is daunting. “People before me have gone through (economic) ups and downs, but this is the worst that I have ever seen in my 13 years in the business,” Hogan says.
For the North American market, TCM makes forklifts up to 10,000 pounds (4,500 kg) in the South Carolina factory and obtains larger-sized models starting at 15,500 pounds (6,975 kg) from a TCM plant in the Shiga prefecture in Japan.
At Hoist Liftruck, “orders for 2009 are significantly off from last year’s pace, but, at the same time, we’re exceeding our forecasted numbers for this year”, Peter says. “We’re tremendously pleased with the activity through the first two quarters, including a record month for us in June.”
Hoist reduced its workforce gradually “last year in anticipation of the economic collapse in the fall and by year’s end we were running fairly lean,” Peter notes. “Since February, though, we’ve brought back approximately one-third of our workforce due to increased business.”
At its Illinois plant, Hoist makes port and intermodal forklifts with capacities from 15,000 pounds (6,750 kg) to more than 100,000 pounds (45,000 kg). The equipment includes cushion tyre models, electrics, pneumatics, roll-on/roll-off versions, empty and loaded container handlers, reach stackers and marine forklifts.
|KION not renegotiating covenants |
|Forklift giant KION Group has clarified the English version of a German news report about its credit terms with its banks.|
KION’s communications head, Michael Hauger, tells Forkliftaction.com News that the English summary of a report by German paper Handelsblatt published last week is “misleading in some details”. According to the report, the group is renegotiating its credit terms with its banks to prevent the risk of violating them.
“KION Group is having a very close look at fulfilling its covenants, which in the current economic environment is more demanding than in the past boom of our industry,” Hauger says.
Hauger adds that there is “no need” to renegotiate credit terms with its banks. He explains that KION is continuously updating its financing partners on its business developments as part of its ongoing creditor relations.
“This is a very normal process, which all companies follow with their creditors and has nothing to do with our shareholders KKR and Goldman Sachs,” he says. Linde AG sold its forklift division to financial investors Kohlberg Kravis Roberts & Co and Goldman Sachs Capital Partners for EUR4 billion (USD5.082 billion) in 2006 (Forkliftaction.com News #285). Before the sale, Linde grouped its forklift brands into a new holding company, KION Group (Forkliftaction.com News #276).
Despite the global market downturn, KION claims strong after-sales business allowed its forklift brands to keep their order intake at a better level than the market.
KION has no problems in serving its interest payments, Hauger says. The group will invest about EUR100 million (USD140.9 million) in group-wide R&D efforts, which Hauger says is “second to none” in the industry in number terms and in relation to its sales.
|Manitex broadens line with Badger acquisition |
Bridgeview, IL, United States
|Manitex International Inc has acquired Badger Equipment Co from Avis Industrial Corp for USD3 million, in part to add new rough-terrain cranes under the Badger brand to the growing family of Manitex products.|
Terms of the 10 July acquisition included USD250,000 in Manitex common stock and a USD2.75 million five-year note bearing interest at 6%.
In early 2009, Badger Equipment introduced its line of high-quality rough-terrain cranes, including a model with lifting capacity up to 60,000 pounds (27,000 kg).
Manitex intends to maintain Badger Equipment manufacturing operations at Badger’s leased Winona, Minnesota facility and to operate the business as a Manitex subsidiary, says David Langevin, chairman and chief executive officer of Bridgeview-based Manitex.
“The acquisition of Badger’s specialised product lines will expand our market opportunities through offering new product lines to our current dealers and expanding our dealership network,” Langevin notes. Regarding the new cranes, “we will begin to ship against orders in-hand in this current quarter” ending 30 September.
Badger Equipment employs 50 people, occupies 175,000 square feet (15,750 sqm) and has reported annual sales of USD10 million from manufacturing of specialised earthmoving, railroad and material handling equipment to dig, trench, grade, clear, load and lift objects. A Badger division, Cullen-Friestedt Lifters, began making branded products in 1907. Badger was formed in 1945.
Upland, Indiana-based Avis Industrial is a diversified privately owned women’s business enterprise. Among Avis Industrial’s remaining seven subsidiaries is Sellick Equipment Ltd of Harrow, Ontario, Canada, a manufacturer of rough terrain forklifts and attachments.
Publicly traded Manitex reported a profit of USD61,000 on sales of USD14 million for the first quarter ended March 31. Manufacturing occurs in Bridgeview; Georgetown, Texas; and Woodbridge, Ontario, Canada. Manitex acquired the assets of electric forklift manufacturer Schaeff Lift Truck Inc and equipment distributor Crane & Machinery Inc from GT Distribution LLC on 6 October 2008.
|Palfinger buys AWE to penetrate US market |
Trenton, NJ, United States
|The Palfinger Group has expanded its US operations with the acquisition of container handling systems producer Automated Waste Equipment Inc (AWE).|
AWE, headquartered in New Jersey, has a particularly strong presence in the north east of the United States and has a 70% marketshare in some states. It is the US’s second-largest manufacturer of cable hoists.
Herbert Ortner, Palfinger’s CEO, says the acquisition is a “further step” in the company’s strategy to strengthen local production and gain marketshare.
“It gives us access to a product range that is in line with the needs of the American customers in this segment,” Ortner says.
In the US, cable hoists are more common than hook lifts that are widely used in Europe. The US container handling systems use a cable system to move containers.
AWE produces both systems, making it an “excellent supplement to the technologically more advanced Palfinger Palift portfolio”, Ortner says.
He adds that Palfinger will gain additional customer bases in different industries from the take-over while AWE products benefit from Palfinger’s extensive dealer network.
AWE, which employs about 40 people, generated USD13 million in revenue in 2008. Palfinger, headquartered in Salzburg, Austria, is a multinational lifting, loading and handling solutions provider, whose product offering includes the Crayler truck-mounted forklift and the Ratcliff and MBB tail-lifts.
According to Palfinger, the take-over of AWE makes Palfinger the second-largest container handling systems producer in the US.
|Retailer orders 200 forklift-mounted RFID systems |
Hudson, NH, United States
|A major retailer has ordered 200 forklift-mounted radio frequency identification (RFID) antenna sensor systems from Micronetics Inc. for more than USD750,000. About 7% of the unidentified retailer’s total locations will get the systems, part of a purchase agreement with an option for an eventual roll-out across the entire chain.|
The same customer has used 20 earlier models in trials and now will get the latest version as Micronetics moves toward initial low-rate production of the sensor systems.
The RFID antenna sensor system interfaces with the retailer’s warehouse management system, streamlines material movement and increases throughput.
“Our system is designed to be compatible with some (Crown or Raymond) models,” says Kevin Beals, president of Hudson-based Micronetics.
“We worked with those (forklift) OEMs to customise the load back rest from mechanical and electrical perspectives.”
Development of sensor systems for other forklift models and including other manufacturer brands is contemplated and “will come as needed,” Beals reports.
“We believe that receiving this (retailer) order validates to us the robustness of our forklift antenna sensor system,” notes Dave Robbins, Micronetics chief executive officer.
Micronetics acquired the pedestal- and forklift-mounted RFID product line on 18 March from M/A-COM RFID Inc of Lowell, Massachusetts, an indirect wholly owned subsidiary of Cobham plc of Winborne Minster, England, for USD400,000, according to the purchase agreement.
Development of the forklift-mounted system began in early 2008 under the previous ownership and included applications such as slotting pallets in a rack-configured warehouse, receiving, shipping and cross-docking. At that time, pursuit of a pick-use application was held back (Forkliftaction.com News #385).
Improvements were made. “We had to do more work and refine it slightly to make it ready for prime time,” Beals says. Now, “this system is a notch up.” First-article testing occurred in early 2009.
The RFID Solutions Laboratory of Micronetics in Hudson manages production of the sensor systems using a variety of suppliers for components.
Micronetics makes microwave and radio frequency components and integrated subassemblies for defense, aerospace and commercial applications and also manufactures and designs test equipment and components for use with communications systems. Product lines include noise sources, noise generators, test equipment, attenuators, phase shifters, high power switches, high power limiters and subassemblies.
Publicly traded Micronetics employs 202 and reported a loss of USD9.6 million on sales of USD30.3 million for the fiscal year ended March 31. A non-cash write-down of inventory primarily related to the uncertainty in today’s commercial markets and a mix of revenue related to development contracts impacted Micronetics’ fourth quarter results.
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|Truck-mounted forklifts rebranded under new strategy |
|Cargotec’s Moffett brand will be the first line rebranded as part of the handling specialist’s new corporate-wide strategy.|
Vice president of corporate communications Minna Karhu tells Forkliftaction.com News that Cargotec is “pursuing its goals as a unified company” and aims to be “truly service-oriented”.
She explains that Moffett truck-mounted forklifts will have “Moffett” as a product name, displayed on the products and in marketing materials along with the Cargotec logo and the Hiab logotype.
Other products within the Cargotec company will be branded under the company’s three main brands.
“The strategic market-leading daughter brands Hiab, Kalmar and MacGregor are all part of the Cargotec family and they all have their long track records among their customers in industrial load handling, heavy load handling, container handling and marine cargo and offshore load handling,” Karhu says.
Cargotec has also unveiled a new logo, a black elephant, which will be displayed in materials with its three brands.
“The elephant stands for strength, long life, reliability, trust and lifting, which all fit well with Cargotec and our business. [It also] symbolises our dedication to providing intelligent handling solutions that meet and surpass the toughest environmental standards,” Karhu says.
“We want to build a stronger Cargotec brand for our customers and stakeholders. The new look and the stronger Cargotec brand are built on a sound foundation of shared values we have defined together with our personnel to guide our daily operations,” adds Cargotec president and CEO Mikael Mäkinen.
Besides Moffett, Cargotec’s other on-road load handling brands Loglift, Multilift and Jonsered will be made product names and the products promoted under the Hiab brand.
The new logo will be gradually implemented from 2009 to 2011. Cargotec recorded sales of EUR3.4 billion (USD4.75 billion) in 2008 and it employs about 11,000 people.
|Kaup introduces new attachments |
|Kaup has introduced the B-series forklift attachments, which will be available worldwide in August.|
The T160B and T466B fork positioners, which replace the T160 and T466, have been enhanced to boost the productivity of forklifts.
Using state-of-the-art 3D technology, the fork positioners’ components have been designed to meet current requirements, resulting in “high stability, optimised tare weight and low lost load centre”, Kaup says.
To lower the risk of accidents, Kaup has optimised visibility with the new attachments by allowing the forklift driver a clear view of the fork tips and the load.
Compared to the previous fork positioners, Kaup says the new attachments require little maintenance and the number of wear-and-tear parts have been reduced. Also, the wear-resistant sliding profiles can be replaced quickly on-site without the use of special tools.
|Narrow Aisle delivers to West Africa |
Tipton, United Kingdom
|Narrow Aisle has delivered two of its G4 articulated forklifts to West Africa’s largest independent oil producer’s warehouse in Nigeria. |
Addax Petroleum acquired the forklifts to handle spare parts and consumables used in the oil and gas exploration work undertaken by the company throughout Nigeria.
Space is limited in the warehouse and currently all palletised loads at the site are block–stacked, mainly because Addax faced difficulty in finding a local heavy-duty racking supplier.
Addax spokesperson Colin Mead says that the company finally found a local fabricator to produce the racking but it will cost more than an imported racking system.
“But we know it will fit,” Mead says. “Other local businesses previously quoted for racks constructed from old production tubing but the extensive welding involved makes them costly, so for the moment we have no option but to block stack.”
The Flexi trucks were chosen because they allow pallets to be block-stacked more closely together in the Addax warehouse than the traditional counterbalance forklifts the company was using.
According to Mead, using the articulated forklifts has saved Addax floor space and it will be able to store even more product once its heavy duty racks are installed.
Addax required forklifts that were quick and easy to maintain. The Flexi forklift, powered by a 48-volt battery, is designed to be low maintenance. No chains or slings are needed during battery change-over operations. The battery is removed at low level from the rear using a hand pallet truck, eliminating the risk of the battery being dropped from height.
The Flexi’s rugged construction and rubber tyres make it suitable for the facility’s harsh conditions. Compared to Western facilities, the yard conditions at Addax’s Nigerian facility are particularly difficult and the warehouse floor is “less than perfect”, Mead says.
John Maguire, Narrow Aisle’s marketing director, says the company is promoting the Flexi in the oil services as a viable alternative to counterbalance forklifts and reach trucks.
“The high cost and restricted space available in land- or platform-based storage areas make the Flexi a very attractive option. We have a number of significant installations globally where the Flexi has demonstrated cost savings and handling improvements,” Maguire says.
Flexi articulated forklifts are designed and manufactured at the company’s UK manufacturing plant and distributed through a global distributor network. Narrow Aisle has also outsourced manufacturing to a technology partner in Taiwan for the supply of Flexi trucks to the Asia Pacific and American markets.
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|Accurate Lift rebuts allegations in injury case|
Philadelphia, PA, United States
|An attorney for forklift dealer Accurate Lift Truck Inc believes that the plaintiff allegations in the Thomas Catlett personal injury and product liability case are incorrect.|
Marco Pasquale DiFlorio disputes the Catlett claims against Accurate Lift Truck and says “the full evidence will support this at the appropriate time with more detail that Mr. Catlett used the forklift improperly and caused his own accident”.
The litigation, filed on 22 April in the US District Court in Philadelphia, cites more than a dozen examples of “negligence and carelessness” of Accurate Lift in maintenance, service, safety and standards-compliance matters involving the Mitsubishi FB18NT forklift (Forkliftaction.com News #413).
Accurate Lift Truck rents the forklift to Catlett’s employer, specialty food distributor BK Enterprises Inc, under a long-term agreement.
In the workplace incident on 7 May 2007, Catlett as operator stepped off the three-wheel cushion-tyre counterbalance forklift, found himself pinned and experienced multiple injuries. The operability of a parking brake warning system is an issue in the case.
DiFlorio explains the position of Accurate Lift: “Among so many other things, the forklift in question was still under full warranty at the time of Mr. Catlett’s accident with no reports or claims whatsoever to Accurate Lift or Mitsubishi reported by his employer about problems, or even concerns, having to do with the emergency brake, before or after the accident.” DiFlorio is with the Philadelphia office of the law firm Salmon, Ricchezza, Singer & Turchi LLP.
“During discovery, we will clarify positions and facts,” DiFlorio notes, and “that will take several months. We are quite confident how the case will turn out.”
Mitsubishi Caterpillar Forklift America Inc (MCFA) of Houston, Texas designed and manufactured the forklift, which has a lifting capacity of 3,500 pounds (1,575 kg). On 26 May, MCFA asked to be removed from the case.
Accurate Lift Truck, an authorised MCFA dealer, purchased the forklift from MCFA and made the delivery to BK during September 2006.
“The truck was under full warranty at the time of the accident and through 11 September 2007 and under drive train warranty until 11 September 2008,” DiFlorio says. “Accurate serviced the truck on 18 April 2007 before Mr. Catlett injured himself and then on 14 May 2007 just after the accident. Accurate was never asked to look at, or told there was a problem of any kind with, the parking brake on either date.”
Attorneys for the litigants are scheduled 30 July to appear before Judge Stewart Dalzell for a court conference and possible setting of the timetable for steps leading to a jury trial.
|Dutch mag gives nod to counterbalanced truck|
Fleet, United Kingdom
Dutch magazine Transport en Opslag has praised Hyster’s new three wheeled electric counterbalanced forklift.
According to the test report in the May edition, the new Hyster J1.6XNT has a “compact design [that is] unbelievably clever”. Hyster engineers designed the 1.6 tonne forklift to be compact in tight spaces yet “in spite of the compact dimensions there is plenty of foot space”, the magazine’s test team reported.
The test team also liked the curved overhead guard in the forklift that offered “more shoulder room”, making getting on the truck quicker and easier.
Avery Weigh-Tronix launches new scale
Birmingham, United Kingdom
Avery Weigh-Tronix has introduced a scale system for forklifts that includes Windows CE-based instrumentation.
The FLSC 05 scale system can quickly capture “legal for trade” weight information and display it for a driver on a touch screen display. The scale system includes a front-mounted digital scale carriage and an open centre area that doesn’t obstruct driver vision.
The scale consists of two metal plates coupled together by four 2,500lb (1,134kg) bars and attaches to any Class 2 cleat-type forklift carriage, the company says.
Hoist launched pneumatic redesign
Bedford Park, IL, United States
Hoist Liftruck has unveiled a redesign of its P-series pneumatic forklift line based on the concept behind its new ECH Series empty container handlers.
The redesigned P-Series has a modular chassis similar to the ECH Series, allowing for containerised shipping and saving customers up to 25% on shipping and set-up costs. Hoist says the modular design also provides efficient serviceability. Bolt-on assemblies like fuel and hydraulic tanks can be easily removed and replaced if damaged.
|Firefighters use forklift in rescue|
Rotorua, New Zealand
|New Zealand firefighters used a forklift to rescue an injured man from his home in Rotorua last week.|
The rescue team had to cut a hole in the second storey of a home and use a forklift to remove the man who is estimated to weigh around 400kg, according to a report in the Herald.
Firefighters feared he could have lain injured for days, unable to get up or help himself.
|Multi-million dollar lease signed at Port Botany |
Sydney, New South Wales, Australia
|Marine terminal operator DP World has signed a new multi-million dollar lease for its operations at Port Botany.|
According to NSW premier Nathan Rees, the agreement will see DP World continue to operate at the port until 2024.
“This is not only great news for the company’s 600 on-site workers but for the thousands of indirect jobs supported throughout the supply chain,” says Rees.
He adds that the lease includes incentives to improve truck servicing and rail performance which will ease congestion at the port and reduce truck movements on Sydney roads.
“This is the first time a lessee at Port Botany has contractually undertaken to meet performance standards not only in relation to its ship loading functions, but also in relation to road and rail servicing operations.”
The new lease was signed last week by Sydney Ports Corporation CEO Grant Gilfillan and senior vice president and managing director for DP World’s Australia region, Jack Williams.
Gilfillan says the new lease includes a commitment to capital expenditure over its 15-year life.
|DHL invests in NZ warehouse facility |
Auckland, New Zealand
|Logistics specialist DHL will invest NZD14 million in a new office and warehouse facility adjacent to the Auckland International Airport.|
The 11,600 sqm building will support anticipated business growth and offer enhanced logistics solutions to customers from all industry sectors.
"By combining our Auckland operational sites into one purpose-built facility, our ocean freight service is able to use the site for the unpacking of ocean freight containers, providing delivery improvements to customers of at least half a day," says Tony Boll, CEO, DHL Global Forwarding South Pacific.
A specific area of significant expansion over the past 18 months has been the Door to More service, an assembly service piloted in New Zealand.
The service consolidates multiple vendor shipments to a single shipment for international movement and local customs clearance. This consolidated shipment is then broken down to individual deliveries to multiple customers.
DHL Global Forwarding New Zealand managing director Brian Broom says since the introduction of the Door to More service, the company has seen significant take-up of the service to and from Australia.
“The success of this service has been evident in measurable growth in the pharmaceutical, industrial and FMCG sectors in particular."
|New deputy for SCLAA |
Melbourne, Victoria, Australia
|David Rogers has been elected as national deputy chairman of the Supply Chain and Logistics Association of Australia (SCLAA). |
Rogers, who has been a director of SCLAA for two years and served in executive positions with the Victorian division of the association, currently works for the Fosters Group in Melbourne.
Meanwhile, the association will present the 2009 Australian Supply Chain & Logistics Excellence Awards on 12 November in Melbourne.
|Aus-NZ shipping service rationalised|
Auckland, New Zealand
|The services of Hamburg Süd's Asia - Australia/New Zealand Service (ANZL) and the COSCON/ICS consortium will be combined to create a weekly fixed-day service, providing expanded port coverage in Asia and New Zealand.|
The new service has the following port rotation:
Auckland – New Plymouth – Nelson (fortnightly) – Wellington (fortnightly) – Lyttelton – Napier – Tauranga – Tokyo – Kobe – Busan – Shanghai – Yantian – Hong Kong – Brisbane – Auckland.
Service to and from Brisbane will be offered exclusively by Hamburg Süd.
|Plan to re-establish container terminal |
Tauranga, New Zealand
|Sulphur Point Container Terminal Limited, a subsidiary of NZL Group, has submitted details to the Port of Tauranga of its plan to re-establish a full-service container terminal at Sulphur Point.|
NZL, which operated a terminal at Sulphur Point prior to 2004, believes it can provide competitive options for shipping companies and shippers visiting Tauranga.
According to director Ken Harris, the re-establishment of the terminal will be good for all. “NZL believes that competition creates the best result for the community and exporters in particular. With this in mind, NZL is gearing up to deliver a competitive cost effective service."
Under the plan, the re-established Sulphur Point terminal would be operational by early next year.
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|Jason Whitwell: Productivity is a gas|
Given the current economic climate, the focus on productivity has never been stronger. Calor’s national account manager, Jason Whitwell, looks at the steps that can be taken to maximise forklift fleet efficiency.
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Editorial Calendar 2009
Rough Terrain forklifts
Safety products in MH
Forklift Market in Canada
Forklift Market in the United Kingdom
Fleet & Asset management
Narrow Aisle forklifts
Forklift batteries and power solutions
Forklift Market in India