Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
If you think of a forklift dealership as simply a place to buy, lease, or rent a lift truck—and maybe get it fixed when something isn’t working right—then you are missing out. Today’s dealers also sell, lease, rent, and service other types of material handling equipment, from conveyors and chargers to racking and robots, to name just a few.
But as the forklift dealers we spoke with for this article took pains to emphasize, they don’t think of their business as being solely about equipment. Instead, they take a more holistic approach. Chris Cella, president of Heubel Shaw, an authorized Raymond Solutions and Support Center, for example, describes his company as “business partners who can provide everything a customer needs to not only keep a facility running smoothly, but also to ensure that [its] facility and operations are optimized for efficiency.”
Or, as Jerry Weidmann, president of Wolter Inc., puts it: “What we really sell are solutions to meet the productivity needs of our customers.” Indeed, Wolter refers to its array of material handling, automation, fleet management, financing, and power products and services as its “productivity toolbox.”
Forklift dealers believe they have a responsibility to work in their customers’ best interests. “What we bring to the customer is a sense of stewardship,” says John Wieland, CEO and principal owner of MH Equipment, a Hyster and Yale dealer. That means helping customers improve efficiency and reduce their total cost of ownership—even if it proves costly for the dealer in the short term. He cites the example of one customer who had been renting over 100 pieces of equipment on a monthly basis. After a lengthy effort, account managers convinced the customer that leasing with full maintenance services would greatly reduce costs and inefficiencies. The switch cost the local service branch over $200,000 in net income annually, but it was the right thing to do, Wieland says. That’s because the company’s objective is to protect its long-term health, which aligns with doing the right thing for its customers, suppliers, and employees. And that fleet operator, he adds, will be a loyal customer for years to come.
No matter how dedicated to service they may be, though, forklift dealers can’t deliver optimal results without the customer’s active support and participation. Here are 10 practical steps they recommend that will help you achieve a mutually beneficial, long-term partnership that produces great results.
1. Invite them in early. Including the dealer at the planning stage of a material handling project can help ensure a “best fit” solution. “The earlier we can be involved, the better we can understand the customer’s challenges,” says John Ventre, vice president of product support at Equipment Depot, which represents parent company Mitsubishi Logisnext America’s Cat lift trucks, Mitsubishi forklift trucks, and Jungheinrich and UniCarriers forklift brands. “If we are involved at the concept and approval phase, we understand more about the application and may adjust [what] equipment we suggest.” That additional leadtime also helps the dealer meet expectations under tight timelines.
2. Define your operational goals. With a clear, detailed picture of your operational goals, the dealer can be certain the solution offered will achieve the improvements you’re looking for, Cella says. The dealer can then help you develop a set of metrics to “measure what success would look like”—for example, moving so many pallets per hour, per operator. Articulating your objectives also gives you a “common language” as you work together, he explains.
Another benefit of defining your goals is that it allows the dealer to bring in the right expertise early on. “We have a plethora of services and solutions, so it’s very difficult for any one account manager to have a full understanding of every type of application and product or solution,” Weidmann notes. With complete information about what you want to achieve and why, an account manager can bring in specialists in areas like high-velocity warehouse applications and automation, an approach Weidmann compares with a medical internist/specialist model.
3. Make sure the dealer knows who the “go tos” are. A walk-through of your facility and “meet and greet” with important contacts facilitates decisions and makes for efficient on-site work. Toyota Forklift dealer Southern States Toyotalift, for one, has a formal “onboarding” process for new customers, according to David Bailey, the company’s president. One part of the onboarding process is to identify decision-makers in various areas of responsibility, so technicians know, for instance, who can quickly authorize repairs. A walk-through shows them where they should park their truck and where they are expected to work, eliminating uncertainty and wasted time.
4. Commit to a culture of safety. When the customer creates and maintains a culture of safety, backed up with ongoing training and education, it is beneficial for everyone, Cella says. Assuring proper equipment use and adhering to a “rigorous and regular” maintenance schedule enhances the safety of both the end-users and the dealers’ technicians, he observes.
In Ventre’s experience, providing “an out-of-the-way area for our technicians to work while at the customer’s site, so they can be safely out of the flow of traffic” is one of the most important ways customers can be helpful. And don’t ask them to compromise when it comes to safety. “The safety of my employees is my responsibility,” Wieland says. “If one of our technicians does not feel that they are working in a safe environment, they are told to stop working and leave the customer’s premises.”
5. Share information openly and regularly. To design the best solution for you, the dealer needs comprehensive information about the scope of your requirements as well as your material flows, the products being moved, and operational constraints, among other topics. Even when there isn’t a big project in the works, regular, frequent communication is beneficial.
Wieland is an advocate for regular meetings with larger customers. Without “meaningful conversations on a regular basis, little things can become big things,” he says. Making the time for honest and open discussions leads to better service for fleet owners because “little things stay little things, and we’re all rowing in the same direction.”
6. Provide accurate, up-to-date information. Before any forklift project can proceed, it’s essential to conduct a fleet study as well as map out how and when goods move. The aim, Wolter’s Weidmann says, is “to look at the equipment and the material flow in totality, including how it all fits together.” At many companies, though, the data required for that analysis is not easily available, making things more difficult and time-consuming for the dealer. In such cases, Wolter uses techniques like heuristic models to supplement the information that is available to develop flow studies. While not pinpoint-precise, those studies “provide insight and the ability to have a conversation about the overall flow” while providing a baseline for gathering data in the future, he says.
Accurate, up-to-date information also helps dealers make repairs more efficiently and cost-effectively. Customers of Southern States Toyotalift, for example, can use a cellphone app to scan a QR code and send emails and photos to immediately report a problem. “That helps us make sure we have the right parts before we show up, or get an order for a part moving right away,” Bailey says. Telematics systems that collect data and create performance and maintenance reports are enormously helpful; what’s more, they have come down in price and are now affordable for mid-sized fleets.
7. Think beyond the forklift. Customers often rely heavily on equipment RFPs (requests for proposals) that “commoditize or marginalize material handling decision-making,” says Bailey of Southern States Toyotalift, but that can be counterproductive if safety, overall productivity, process efficiency, and long-term goals are not considered. “You can get all the equipment in the world, but if your processes are not optimal, then you won’t see the benefits,” he observes.
He recommends an on-site analysis that considers all of those factors in addition to the price of equipment and labor. Bailey tells customers to think of material handling decisions as an iceberg. “Can we go underwater with you to look at all the other elements that should factor into your decision?” Looking at all the variables will also allow the dealer to uncover what he calls “hidden profitability leaks.”
8. Be open-minded. Customers who do some research online and then assume they’ve covered all the possibilities could be leaving a lot of money on the table, the dealers agree. One reason is that they may not be fully aware of new equipment options, material handling methods, or technology. Furthermore, dealers have experience with a wide range of customers and applications, so they may know of a cost-effective solution that the customer hasn’t considered or read about, Ventre points out.
Similarly, making decisions based on “the way we’ve always done it” is not helpful to either party. For example, rather than replace existing equipment with the same products, consider whether your business parameters have changed and whether the lift trucks you needed 10 years ago are still the same ones you need today, Wieland suggests.
Cella of Heubel Shaw agrees. “It’s ideal when a customer is open-minded and understands that, in some cases, there may be more than one way to solve a problem.”
9. Recognize that when a dealer says no, it’s for a good reason. There are times when dealers feel they must turn down a customer’s request, such as when that request—for example, to use a piece of equipment in a manner it’s not designed for—would compromise safety. Another is when a dealer is asked to quote products or services that are not appropriate for the application, or when the solution requested would not deliver the outcome the customer wants. In such cases, Equipment Depot’s Ventre says, “we present an alternate solution that will deliver the desired outcome.” While that’s successful most of the time, he says, “sometimes we have had to walk away.” It’s the same with a customer who asks for unrealistic leadtimes the dealer cannot meet. “Our business is built on integrity; we can’t accept a request we know we can’t honor,” Bailey says.
On rare occasions, a dealer will feel compelled to “fire the customer.” This can happen when their demands are consistently unrealistic, MH Equipment’s Wieland says. While there’s nothing wrong with having high expectations, he adds, it may not be a reasonable use of a dealer’s limited resources to spend a lot of time on a customer with a forklift or two who “doesn’t pay the bills, argues over every little thing, and tries to nickel and dime you on everything.”
10. Provide constructive feedback. Whether the feedback is positive or negative, forklift dealers want to hear it. “If there’s something of concern, please share it and let us know how we can help,” Cella says. And be specific about what your desired outcome is: “Our goal is to help customers achieve their own goals, so the more information they can provide, the better the outcome will be.” Saying “we’re just not happy with the way things are going” is not the kind of feedback that will allow the dealer and customer to work together toward a mutually agreeable solution.
Dealers hope you will complete those “How did we do?” surveys. Ventre notes that his company’s general managers and executive team use those survey responses to guide decisions on how to better serve customers. And it doesn’t have to be constructive criticism: Surveys are also a great way to let the dealer know about an employee’s exceptional service.
GO FOR THE GOLD
The key to achieving and maintaining a mutually beneficial, long-term partnership is candid communication and the open sharing of information, with regular meetings to review fleet performance data and project milestones. “That has been a tremendous relationship-builder for some of our most loyal customers,” Ventre says.
Weidmann believes that if relationships are based on trust and disclosure, the result will be a solution that’s fair to both parties. “The best relationship between a customer and a solutions provider looks more like a partnership than a customer/supplier relationship,” he observes. “As Michael Jordan said, ‘Talent wins games, but teamwork and intelligence win championships.’”
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”
That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.
Drilling into specific categories, linehaul less-than-truckload (LTL) drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. The median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. And leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
The results also showed how the demographics of the industry are changing, as carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.
"While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers' earnings are still rising—even in a weaker freight economy," ATA Chief Economist Bob Costello said in a release. "By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention."