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But what type of equipment is best for your unique set of circumstances? Buying a forklift

is such an important decision, you are well-advised to answer some key questions first.

Rent, lease or buy? What about fuel alternatives? How are the warranty options?

Customer service is also paramount.

This is a big industry with many players competing for your business. In fact, according

to a study by Pell Research, the U.S. forklift market was nearly $33 billion in 2013, with

the top 20 lift truck manufacturers accounting for worldwide sales of $30.4 billion and

944,405 machines sold.

Whether you need one lift truck for your business or several dozen, you face a key deci-

sion point with many factors to consider. This includes everything from comparing deal-

ers and manufacturers on the availability of forklift parts, repairs and service to making

sure you have fully assessed your overall warehousing and storage needs before deciding

what material handling equipment is right for you.

This eBook will break it all down for you – answering these questions and more – so

you’re prepared to make the most informed decision when you need a forklift.

Whether you’re a small business, a large corporation or somewhere in between, you’ve probably got some heavy lifting to do.

QUESTION ONE

What are my biggest storage challenges right now?When you are considering the lease or purchase of a forklift, start with

this question and challenge yourself to thoroughly assess your

company’s storage needs and challenges.

The process of considering such a significant investment in material handling equipment

is an important opportunity to take a hard look at your company’s warehouse or storage

space layout and the efficiency of your work flow. Any discussion of buying a forklift ought

to be analyzed in the larger context of how it will be used.

Be prepared to answer these questions when contacting your forklift sales rep:

How high is the highest shelf? Does the layout include ramps and gradients?

How big is your warehouse? How heavy are your typical (and heaviest) loads?

How wide are your warehouse aisles?

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You might find ways to improve the orga-

nization of your physical space and your

work flow that help you get the biggest

bang for your lift truck buck.

For example, some forklift companies also

specialize in material handling solutions,

even utilizing high-tech CAD/CAM tools

to analyze warehouse layout and make

recommendations for increased efficiency.

Leading forklift dealers tend to be skilled

at offering solid advice about how your

work space and work flow play into your

decisions about buying, leasing or renting

the right material handling equipment

for your unique set of needs. They can

help you select the forklift or specialized

lift equipment that is best suited to your

needs and your space. Nowadays, there

are reach forks and scissor lifts, vertical

personnel lifts and telescopic boom lifts,

each designed with specific types of tasks

in mind.

Qualified forklift dealers can help match

your unique needs to the right material

handling equipment to get the job done.

A quality materials handling company that sells lift trucks should be skilled at helping customers examine the bigger picture.

Stepping back and thoroughly analyzing your storage space can reveal potential inefficiencies that might play a role in deciding what type of equipment to acquire.

QUESTION TWO

Should I buy new, used or should I rent?

The desire to own the biggest, baddest, shiniest forklift fresh off the assembly line is un-

derstandable. But many factors must be weighed when deciding whether to buy a new or

used forklift or whether to rent.

This always starts with thoroughly assessing the company’s unique circumstances and

material handling equipment needs. Here’s a closer look at three of your options:

Renting a lift truck can mean significantly lower up-front costs and the ability to plan on consistent monthly expenditures. Going with a forklift rental option can also ensure that you

have access to the most up-to-date equipment.

Renting is often the best option when the need for the lift

truck is mostly seasonal. Such a company may require a

forklift only for certain jobs or at certain times of the year,

or to supplement its fleet during a busy period.

In contrast, large corporations are generally more likely to

buy their equipment outright or acquire it through a large

leasing company. (See a more in-depth discussion of the

benefits of purchasing versus leasing on Page 8.)

RENTING

Flexibility is perhaps the greatest benefit to renting a forklift versus buying. Businesses experiencing high growth, rapid change or other factors that might

introduce an element of unpredictability may benefit from a flexible rental plan.

Of course, every lift truck will need maintenance and repairs, so renting under a full-ser-

vice maintenance program can eliminate the risk of unexpected budget-busting repair

bills. Rentals often have service and repair costs built into that monthly payment.

Buying a used forklift can be considerably less expensive than purchasing a brand-new lift. Small companies whose usage is limited are often

advised to first consider buying a used forklift.

Forklift experts suggest that buying used may

work best if the lift truck is utilized no more than

five days a week, is run no more than five hours

a day and is not part of a fast-paced, non-stop

warehouse environment. While certainly cheaper,

buying a used forklift may also mean sacrificing

the latest technological advancements.

RENTING, CONT.

BUYING USED

Buying a new forklift is often the preferred route for customers who value the peace of mind and the reliability and safety that come with purchasing new.

Also, finding a lift truck that meets a company’s unique specifications (height, weight ca-

pacity, etc.) can be more difficult in the rental market. The same is true when factoring in

the unique conditions of the warehouse or work environment in which the equipment will

be operating. In either case, purchasing new tends to offer a broader selection of options.

Generally, acquiring new equipment tends to deliver a long-term cost advantage to com-

panies geared toward the heaviest usage of their fork trucks.

BUYING NEW

QUESTION THREE

Should I lease or purchase my forklift outright? What are the benefits to each?Roll up your sleeves and get ready for a comprehensive cost-benefit analysis. Because

that’s the only sure way to determine whether leasing or buying a forklift is the most

effective way to meet your company’s material handling equipment needs.

Leasing can present an opportunity to use the newest state-of-the-art forklift equipment at a lower cost

while enjoying the benefit of a predetermined replacement cycle, avoiding the

responsibility of ownership and paying only for what you use.

The decision to lease your material handling equipment can make it easier to put in place

a forklift fleet with the latest in safety and technology. It can give you more financial flexi-

bility to adapt or grow your fleet as the needs of your business evolve. And because leases

can be as short as one to two years, you can put the equipment to work without a long-

term commitment.

LEASING

Large companies that are continually expanding tend to lease their material handling

equipment because their cash needs are considerable as they grow. Generally, the month-

ly payment is reduced as you lengthen the duration of the lease. So consider a longer

lease if it is important to keep the payment as low as possible. But take care not to extend

it past the point where the benefits of a smaller payment are canceled out by increased

costs for maintenance.

OWNERSHIP

Of course, there are tangible benefits to ownership as well. For a business that has lighter forklift usage and therefore expects a longer equipment

life, buying may make perfect sense.

One general scenario in which buying might be preferred would be when your company’s

forklift usage is limited (perhaps less than 1,000 hours per year) and you can expect to

operate the equipment for seven to 10-plus years while keeping maintenance expenses

under control.

It is also worth noting that that forklift lease agreements place limits on hours of usage

(for example, 2,000 hours annually, approximately 40 hours per week) and can therefore

end up costing extra. And, of course, many find it difficult to put a price on the peace of

mind and pride of ownership that comes with purchasing new.

It can be helpful to ask your prospective dealer to give quotes for a full maintenance

program with two or more lease term options; this can help you determine when rising

maintenance costs begin to offset the benefit of a longer-term lease. Asking for detailed

quotes can also help you make the call between leasing or buying a forklift.

QUESTION FOUR

What type of warranty does my forklift come with?Forklifts are miraculous pieces of equipment, but like any mechanical device these

brawny workhorses need regular routine maintenance and occasional repairs. So when

leasing or buying a forklift – amid all your questions about the machines’ height and

weight capabilities, fuel requirements and the pros and cons of various acquisition

methods – make sure to spend plenty of time talking with prospective dealers about the

warranty or service contract.

NUMBER OF HOURS

your lift truck will be on the job each week. The more hours

in service, the more vulnerable it is to damage.

WORKING CONDITIONS

are also key. If the used forklift will be counted on to perform

particularly demanding tasks, or to work in challenging

environments (extreme heat or cold, etc.) it often makes

sense to opt for more robust warranty protection.

New forklifts generally come with longer and more comprehensive warranty or service options, along with a range of add-ons to customize your extended warranty protection if desired.And while a couple hundred dollars a month may seem like a steep price to pay for

maintenance during the early life of a lift, that same monthly expenditure may later seem

like a bargain as the equipment begins to age and face more significant repair needs.

Top forklift dealers generally offer lower usage plans, moderate usage plans, multi-shift

or high usage plans, as well as options for high-usage companies with larger fleets and

multiple shifts or multiple locations.

Seeking out additional knowledge about what items on the used lift truck have already been inspected and repaired, and when, is also helpful when evaluating the options.

QUESTION FIVE

Is electric more cost effective than diesel or propane?

OK, time to talk power. Anyone exploring the forklift market will want to fully understand the significant differences between forklifts fueled by electricity, diesel or propane. Just as you might expect, electric or battery-powered forklifts are the quietest, most envi-

ronmentally friendly and easiest to maintain. Rugged diesel lift trucks give their operators

the most torque for strenuous jobs but are mostly restricted to outdoor duty due to their

emissions. Propane fork trucks are versatile indoor/outdoor performers whose features

include easy refueling and more torque than their electric counterparts.

But, of course, there is more to the story. Let’s take a more in-depth look at the pros and

cons of different fuel options for forklifts.

Battery-powered electric forklifts are the most environmentally friendly.

They produce no harmful emissions and are also much

quieter than propane and diesel forklifts.

They tend to be more compact and maneuverable since

they are not powered by a bulky internal-combustion

engine. The cost of recharging the battery overnight is

generally less than replacing gas bottles or filling a tank

with diesel fuel.

Maintenance and service can also be less costly since bat-

tery-powered lift trucks have fewer moving parts. Because

they usually enjoy a longer life span, electric forklifts are

often seen as having a lower overall cost to the owner.

But there are disadvantages. Perhaps most significant,

the price tag for the electric forklift itself is higher than for

propane or diesel options.

ELECTRIC FORKLIFTS

The performance of a diesel fork truck is widely considered superior to an electric model, thanks in part to better acceleration and lift speeds.

Higher torque generally means more power for basic jobs,

more oomph for traversing ramps and gradients, and

smoother handling of any hydraulic attachments.

DIESEL FORKLIFTS

The sticker price of a diesel forklift is usually less than an electric model but slightly more than a propane lift truck.

Expect the cost of maintenance to be higher than for an electric forklift, but less than a

propane-powered machine. Also, the diesel engine tends to enjoy a longer life span than

a propane engine.

The most notable disadvantages are what you would expect: noise and fumes. Diesel

forklifts come highly recommended for heavy lifting and outdoors use. And at the end of

their life cycle, they can maintain a higher residual value than electric or propane-pow-

ered machines.

DIESEL FORKLIFTS, CONT.

Easily identified by the keg-like canister of LPG

(liquefied petroleum gas) attached to the back, propane-powered

forklifts can go, go, go for up to eight hours between refueling. And

when it’s time for a pit stop, this feature also makes them quicker

to refuel.

Propane forklifts do the job with a cleaner carbon footprint than

diesel. And because propane is easier on the engine (less inclined

to produce deposits that gum things up internally), this can mean

lower costs for engine maintenance.

Though LPG-powered forklifts are generally the cheapest to buy

new, fuel costs tend to be higher and maintenance more expen-

sive than for an electric forklift. Finally, the residual value of a pro-

pane fork trucks tends to be lowest when compared with electric

and diesel.

PROPANE FORKLIFTS

QUESTION SIX

Have I looked at all of the fuel options?The forklift industry is also being energized by the emergence of new technologies. Today

there is a great deal of excitement about a clean, sustainable fuel source that is generated

using the single most abundant element in the universe.

Yes, hydrogen fuel helped America put a man on the moon. Now it is rapidly changing the

conversation about fuel options in the forklift industry, with many major players betting

on hydrogen fuel to rapidly expand its currently very small share of the market.

The mega-retailer cited cost effectiveness to justify the investment.

But such corporations increasingly see the benefit of establishing a greener footprint –

both to project a more appealing profile to socially conscious consumers and because it

can be good for the bottom line.

Environmentally friendly hydrogen fuel cells emit only small amounts of heat and water.

But switching to hydrogen is no simple solution since the fuel must either be delivered or

produced on-site.

IN 2014, WALMART ANNOUNCED

the purchase of 1,738 hydrogen-powered units for an estimated

$50 million, adding to 535 hydrogen fuel cell lift trucks already

in its fleet.

However, ingenuity is in the air. Forklift giant Hyster-Yale Materials Handling Inc. has purchased Nuvera, a Billerica, Mass.-

based company that specializes in hydrogen fuel cell technology and “turnkey” systems

that enable companies to produce their own hydrogen fuel on-site.

The deal positions Hyster-Yale to become the first forklift manufacturer to integrate fuel

cell technology across large parts of its material handling equipment portfolio. According

to a statement, Hyster-Yale expects to be able to offer customers “an integrated, factory-

fitted fuel-cell solution as well as associated hydrogen generation and delivery

capability.”

Conventional wisdom has been that it takes a fleet of 25-plus vehicles to justify the ex-

pense of setting up refueling infrastructure for hydrogen-fueled forklifts. One reason is

that hydrogen fuel makes most sense for companies running multi-shift operations that

are slowed down by the time-consuming tasks of constantly changing and charging batter-

ies.

But providers like Nuvera insist that is rapidly changing now that it is increasingly possible

for even modest-sized operations to produce hydrogen fuel, commonly made from natural

gas and water through a process called steam methane reforming.

“We offer an on-site solution that generates hydrogen from natural gas and water, and

what this does is provide an economical source of hydrogen at a smaller scale,” said Gus

Block, Nuvera’s director of marketing, who cited increased usage among mid-sized fleets in

an article on the Modern Materials Handling website.

Most industry insiders believe hydrogen is poised to capture a much larger share of the overall market for material handling equipment.

So when you reach the point of talking with a forklift dealer, you’ll want to be ready with questions designed to give you some peace of mind

that your service needs will be met by qualified professionals.

How experienced are their technicians?

How quickly can they get your equipment serviced and back on the job?

How will any service and maintenance plan that is being discussed help your equipment last longer and increase your uptime?

How many service technicians do they have?

Are service locations convenient?

What types of certification do they possess?

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QUESTION SEVEN

Does the forklift provider offer service?Heavy equipment that is constantly counted on to perform demanding work inevitably

needs occasional repairs. So when considering a major lease or purchase it is vital to

make sure you are dealing with a provider who can connect you with first-rate forklift

service.

What it really comes down to is connecting with a team of service technicians you can

trust to provide the timely, quality repairs and maintenance that are essential to ensuring

that your business is operating as smoothly and efficiently as possible.

Therefore, it makes sense to “kick the tires” and look “under the hood” of not just the vehicles themselves,

but also of the service department to make sure the company you’re considering employs

a strong staff of well-trained, certified mechanics who have been there for many years.

Top lift truck dealers also know that, after the sale, a customer’s closest ongoing contact

may be with the technician or technicians who service the equipment. A top mechanic can

develop an in-depth understanding about how the condition of a client’s fleet affects their

ability to continually function at maximum efficiency.

In fact, if a company needs work performed on a lift truck but their favorite, trusted

mechanic is busy on another project, it is not unusual for them to wait a short time

until he becomes available.

Taking some time to make sure you feel confident about your ability to get needed

repairs and planned maintenance performed by top professionals in a timely fashion

will pay long-term dividends in terms of uptime and productivity gains that benefit your

entire operation.

Some forklift companies believe that providing exceptional service is a significant competitive differentiator.

QUESTION EIGHT

Does the forklift provider have an extensive inventory of parts?

Fast availability of quality forklift parts is

one of the keys to minimizing downtime

in an industry where every hour counts.

So when you are considering leasing or

buying a lift truck, once you are satisfied

that their service department is among

the best in the business, you’ll also want

to know if there are any other factors that

might slow you down.

What you want to avoid, of course, is a

productivity-killing scenario in which you

need a forklift fixed and back on the job

ASAP, and the only thing holding you back

is the availability of some seemingly insig-

nificant but secretly essential $12 part.

Most qualified dealers maintain a com-

prehensive inventory, but you’ll want to

make sure of this and certain other key

considerations. For example, do they offer

a 24-hour guarantee, assuring overnight

delivery of any part or component that

they do not have in stock at the moment

you need it?

Just how big is their inventory? If their answer doesn’t begin with “huge,” it may be time to look elsewhere.

You want quality parts and not cheap

imitations. It also helps to know what

forklift parts are covered under warranty

and, if so, for how long.

As with parts, the benefits of having a big

inventory extend to the machines them-

selves. So in addition to making sure you

are connecting with a dealer who’s capa-

ble of getting any needed parts into the

service technician’s hands as quickly as

possible, look for a dealer who also has an

extensive variety of lift trucks and other

material handling equipment on-site.

QUESTION NINE

Am I using the correct equipment for my needs?Ever had a forklift salesman try to talk you out of buying a forklift? OK, probably

not. But it is certainly not unusual for a lift truck dealer who is truly interested in

what’s best for your business to steer the forklift buying conversation toward the

bigger picture, in this case a larger discussion focused on warehouse solutions

for your specific needs.

This helps both the customer and the dealer better understand the context in

which the equipment is being used. Such information is, of course, vitally import-

ant in figuring out the most effective way to spend limited dollars to get the job

done at maximum efficiency.

Here is just a sampling of hypothetical questions that it makes sense to explore:

Is it running across multiple shifts or dormant for part of each day?

Do narrow aisles create a need for specialized equipment?

Do unnecessarily wide aisles create an opportunity to gain storage space by reorganizing?

Is the current equipment being overutilized or underutilized?

Does the layout or organization of the work space contribute to or detract from efficiency?

Why are two newer lift trucks running constantly while two older ones are gathering dust?

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Thoroughly assessing your warehouse operation – both to better understand how each

piece of equipment helps contribute to

optimal work flow and to red-flag any

warehouse situations or challenges that

may be holding you back – can often re-

veal a need for a more specialized piece

of material handling equipment that is

capable of performing a particular role

more efficiently.

SOLUTIONS

For example, many leading forklift dealers see their mission more as providing comprehensive material handling “solutions” rather than focusing solely on the sales and service of equipment.

Some even offer cutting-edge CAD/CAM imaging technology that can help unlock the

secrets of how to get the most out of your existing space. (Imagine finding a way to create

several thousand new pallet positions without expanding the warehouse!)

So don’t be surprised if the big-picture conversation includes talk of warehouse space

utilization, dock to rack solutions and fleet services. Material handling equipment provid-

ers that offer this comprehensive approach to fully understanding your business tend to

be those that are best equipped to help you drive down the total cost of ownership while

driving up efficiency and productivity.

Many top material handling equipment

dealers now provide in-depth efficien-

cy analyses into both the warehouse

space itself and the role of each piece of

equipment operating within it. Such com-

panies are committed to functioning as

full-service experts in the integration of

a wide range of warehouse products and

equipment designed to deliver the most

efficient possible movement and storage

of materials.

QUESTION TEN

What qualities and services are important to me when choosing a forklift dealer?

One of the most important factors to con-

sider when talking to forklift dealers about

acquiring new equipment is the R-word.

Relationship.

This might not be the case if you planned

to just fork over a pile of cash for a forklift

and then walk off the lot forever. But you

are far more likely to be analyzing any

prospective lease or purchase in the con-

text of your company’s larger immediate

and long-term material handling equip-

ment needs.

Sure, at one level leasing or buying a

forklift is a basic business transaction. But

in most cases you will want to have an on-

going, yes, relationship with your material

handling equipment provider.

And, as in a relationship, you’ll want to look for a partner who puts in some effort to understand your needs.

A company that’s focused on your unique

set of equipment needs and warehouse

work flow challenges will have sales pro-

fessionals capable of offering insight into

more efficient ways of doing business and

service technicians with hands-on knowl-

edge about not only the condition of your

fleet, but each vehicle within it.

Some factors you may wish to consider when choosing a forklift dealer include:

Diversity of products and services offered

Commitment to superlative customer service

Top-notch team of service technicians

Longevity of other key team members (such as knowledgeable sales specialists, staffers and executives)

Company history and reputation

Planned maintenance program options

Fast availability of quality parts

In terms of peace of mind, you may find it most effective to team up with a company that offers a full range of fleet services, as this can eliminate delays, logistical problems and wasted time.

Forklift dealers that specialize not just in equipment sales but also in material handling

solutions make it their mission to become knowledgeable about your business needs

and challenges, because minimizing downtime is absolutely imperative in this industry.

ConclusionWhether you are looking to buy a single used forklift, lease several lift trucks or add new

vehicles to a fleet of material handling equipment, it is helpful to approach this crucial

decision as both a challenge and an opportunity.

The experienced forklift experts at Northland Industrial Truck Co., better known

throughout New England as NITCO, have been working closely with customers to find

the best equipment and storage solutions for nearly half a century.

We’re conveniently located throughout the region with a massive inventory of forklifts and

parts, and we employ some of the best-trained sales and service staffers in the business.

CONTACT US TODAY for friendly, straightforward advice that is customized to your specific needs.

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