Subscribe to our free, weekly email newsletter!


Lift trucks: Solving the financial puzzle

Own, lease, or rent? According to lift truck consultants, the method that businesses pay for lift trucks tends to be a sound economic indicator. Here’s how distributors are working to solve the complex needs of today’s fleet owner.
By Tom Andel, Contributing Editor
August 13, 2010

If an analyst told you that a market was in recovery, you’d probably think that was good news. Not so fast. If you were talking about the lift truck market you’d have to get beyond the complexity first. In fact, some business analysts see recovery being as problematic as the recession when it comes to lift trucks.

George Keen is one of those. Keen’s a senior consultant with Currie Management Consultants, a Worcester, Mass.-based firm that specializes in distributor business enhancement strategies. Keen sees the lift truck market as a remarkably complex puzzle, as challenging to understand for sellers as it is for buyers.

According to Keen, customers’ purchasing philosophy and behaviors evolve over time as a market matures.

The problem with lift trucks is that although they are mature products, they employ some of the most leading-edge technologies around—from computers and sensors to alternative power sources.

This leads to unpredictable buying patterns and competing approaches to selling. Depending on their needs, buyers may make their lift truck selection based on product innovation, price, total value, or total cost of ownership. Keen sees these as phases.

About the Author

Tom Andel
Contributing Editor

Tom Andel is a Contributing Editor to Logistics Management


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Almost all companies today are aware of their labor or material costs... but what about energy consumption? It all comes down to having the energy data needed to determine what actions you must take to improve. The payoff is worth it, as insight into energy data allows you to make more valuable, relevant operating decisions.

With lower energy prices sparking domestic economic gains, coupled with solid manufacturing and industrial production activity, improving jobs numbers, and a GDP number that shows progress, there is, or there should be, much to be enthused about when it comes to the economy and the economic recovery, which has been raised and discussed and dissected from basically every angle possible, it seems. But that enthusiasm regarding the economy needs to be tempered, because big headline themes seldom tell the full story at all really.

The annualized turnover rate for large truckload carriers in the third quarter rose one percentage point to 97 percent, according to the ATA.

The Pacific Maritime Association (PMA), representing employers at 29 ports, and the International Longshore and Warehouse Union (ILWU), which represents 20,000 dockworkers, have come to a tentative agreement on a key issue in ongoing contract negotiations.

Diesel prices continued their ongoing decline, with the average price per gallon falling 6.7 cents to $2.866 per gallon, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).

Comments

Post a comment
Commenting is not available in this channel entry.