The Mheda Journal

Earlier this week, I posted a query on LinkedIn and Twitter which said: “Let me know if you have any insight: The Rules Have Changed for Material Handling Distributors. What does this mean to you?” I was hoping to generate some content for the next issue of The MHEDA Journal, which will be coming out in April and then distributed at MHEDA’s annual convention in Marco Island, FL, May 1-5. This year’s Convention theme is “The Rules Have Changed,” meaning that the recession forced material handling distributors to look at business differently and implement a host of new procedures and policies.

In reply to my LinkedIn question, George Keen of Currie Management Consultants posted, “The rules have not changed. They are still the same! Take care of your customers, employees and make money. What has changed is volume.”

What say you?

While talking to MHEDA members for our annual industry forecast, I heard from several people how sales of used and rental equipment, forklifts in particular, will be tools to lead the material handling industry out of the recession. The reasoning is, many end-users can’t afford a large expenditure on new material handling equipment, but may be able to afford the cost of used equipment or the small monthly outlay for a rental unit. This is a good way for dealers to maintain their cash flow now and retain a customer who may buy new equipment once the market rebounds.

It’s sound logic. That’s why it was interesting to talk to one distributor member, a forklift dealer (I’m going to keep the name out of this because they didn’t realize they would be quoted in this platform), this week who shed some more light on the used material handling equipment industry. One of the more interesting insights this person gave was that prices on used equipment will be rising because of the dearth of new equipment being sold. Before long, this distributor says, the cost savings won’t be all that much. With no new equipment that will become used equipment in a few years, the supply of used equipment will be small, and prices will need to rise.

Another point on that topic came up in a discussion with a colleague subsequent to that call. What new equipment was sold over the last few years will have less wear-and-tear on it than same-aged used equipment from a few years ago, because end-users aren’t as busy. Trucks may be running fewer shifts than normal. This will also affect used equipment pricing because the used equipment that is being resold will be in better condition than a used truck has been traditionally.

It’s an interesting trend to follow over the next 18-24 months. I’d love to hear your thoughts on this issue.

As part of The MHEDA Journal’s Annual Industry Forecast, we heard from multiple members, both distributors and suppliers, that new products would help them get through the still-sluggish economy and drive new sales.

One such company is Nashville Wire Products, who is introducing Protect-it rack column guards. The press release reads, in part, “Protect-it strengthens Nashville Wire’s position by adding an additional rack accessory layer. Now Nashville Wire can provide an accessory for both its clients rack beams and uprights.”

This is just one example. As we get deeper into the first quarter, more new products will be unveiled. I can’t wait to see what else is out there!

Earlier this week, I had the pleasure to sit in on a conversation between David Rizzo, president of A. J. Jersey (South Plainfield, NJ), and Sam Grooms, president of Hy-Tek Material Handling (Columbus, OH). Rizzo is a Crown dealer in central New Jersey and Grooms is a Yale and Hytrol distributor in the Midwest.

The conversation was centered around the Member Profile article for the 2nd Quarter issue of The MHEDA Journal, in which A. J. Jersey will be featured. As part of a new style of article, another member, Grooms in this case, is contributing to the normal profile interview by asking questions. The members provide insight that those of us who don’t do material handling for a living don’t have.  

The bulk of this interview will be appearing in the April issue of the magazine, but you can get a preview of the style in the current issue, when new MHEDA President Greg Morrison, vice president of Morrison Industrial Equipment Company (Grand Rapids, MI), was interviewed by Howard Bernstein, chairman of The Atlas Companies (Schiller Park, IL). Bernstein, who has been in the material handling business for more than 50 years, did business with Greg’s grandfather and had a lot of interesting questions for Greg.  Watch an audio slideshow about Greg’s company here.

These new features will be in each new issue of the magazine going forward, so don’t miss out! If you’d like to be the subject of the interview or the one asking the questions, let me know!

The mass destruction in Haiti following last Tuesday’s earthquake there has mobilized people from around the world to provide relief to affected citizens. (Visit www.redcross.org or click here for more information about how you can help.)

The material handling industry is playing a central role, according to an article in Monday’s USA Today. 

“By Sunday, the Air Force had landed some 300 planes, most of them laden with relief supplies. Four large forklifts unloaded the pallets as they landed and the aid was shipped out on trucks and helicopters. Incoming planes were required to file flight plans with landing times to ensure an orderly flow. The Haitian government has signed an agreement granting the U.S. formal control of the airport.”

Originally, only one forklift was being used. “With only one forklift at first, the Air Force couldn’t quickly unload the planes coming in Thursday and Friday, McMullen said. Because of that, and because the airport lacked ground refueling, many planes were turned away,” the article states.

Luckily, some of the original logistical headaches at the airport have been reduced, and aid is beginning to flow more quickly (though not yet at the optimum rate). Throughout the city of Port-au-Prince, there is still much work to be done.

Any help you can give is appreciated. Visit www.alanaid.org to lend a helping hand.

(photo courtesy of haitifeed.com)

The First Quarter issue of The MHEDA Journal is now available online at www.TheMhedaJournal.org. It is being mailed out to subscribers today. As I’ve been telling you for a while, this issue is our annual industry forecast issue, featuring commentary from distributors, suppliers and other industry associations about their expectations for 2010. This special “10 issue” for 2010 features a series of Top 10 Lists to bring in the new year.

Check it out today!

To anyone in the material handling industry (and others, too) interested in contributing to the relief effort in Haiti, take note:

In the wake of Tuesday’s tragic earthquake in Haiti, MHEDA is working with the American Logistics Aid Network (ALAN) and major humanitarian relief agencies to identify the most critical relief needs.

 As needs are identified that can be met through the expertise and resources of ALAN’s member base, MHEDA Members will be notified, and the needs will be posted on the ALAN web portal: www.ALANaid.org.  

 “While ALAN’s focus has been primarily domestic, our mission is to engage the supply chain community to support humanitarian relief efforts wherever the need arises,” says Jock Menzies, ALAN president. “Our hearts go out to the people of Haiti, and we’re eager to support their needs through our network of supply chain professionals.”

In my post titled, “More Forklift Distribution Mergers” from January 8, I may have misled some readers by saying that Alta Lift will be representing Yale in the Chicago market. That is incorrect. Yale will continue to be represented in Chicago by YES LIFTS. Alta will be representing both Hyster and Yale in certain markets, however, and the posting has been corrected to reflect that.

Here’s the full language of the original press release:

GREENVILLE, N.C., Jan. 7, 2010 – NACCO Materials Handling Group, Inc. (NMHG) has appointed Alta Equipment Company (Alta) as the Hyster dealer in the Western Michigan and Chicago markets, effective January 1, 2010, with the acquisitions of Mid-State Industrial Services, Inc. in Michigan and the Aurora Lift business in Illinois.

 On December 30, 2009, Alta completed the stock purchase of the Hyster dealer, Mid-State Industrial Services, Inc., based in Eaton Rapids, Mich.  Mid-State, a Hyster dealer since 2005, covered 12 counties in Indiana and 37 counties in Western Michigan. Mark Drummond, the dealer principal of Mid-State will remain with the business and will be part of the leadership team at Alta.

 Alta also acquired the Aurora Lift business in Montgomery, Ill., as its first Chicago-area location, with several more locations expected to follow. Alta will not represent competitive brands previously represented by Aurora. Alta has been the Yale dealer in Michigan since 1984 and has been recognized eight times as a Yale Dealer of Excellence.

 “We are delighted to expand our forklift footprint to represent the Hyster^® brand in Western Michigan and Chicago,” said Steve Greenawalt, owner and dealer principal of Alta. “The acquisition of Mid-State Industrial brings a committed workforce and a customer service culture consistent with what we provide at Alta. The acquisition of Mid-State provides us with a contiguous corridor into Chicago. We are excited about the opportunity from Hyster^® to become the exclusive dealer for the Chicago market and aim to bring our unique approach to customer satisfaction to that market as well.”

 “We are very pleased to see the merger of Alta and Mid-State to create a strong dealer representing both Hyster^® and Yale^® brands in Western Michigan, said Colin Wilson, chief operating officer and president, Americas for NACCO Materials Handling Group, Inc. “We are equally pleased to have Alta move into Chicago as the Hyster brand representative and feel that the dealership will do a great job serving the needs of current and future Hyster customers in that market. Yale will continue to be represented in the Chicago market place by YES LIFTS, LLC, Voss Equipment Inc and Fitzgerald Equipment Company, Inc.”

Sorry for the confusion, and thanks to Chris at YES LIFTS for bringing this to my attention.

The theme for the MHEDA Convention (being held May 1-5, 2010, in Marco Island, Florida) is “The Rules Have Changed.” Basically what that means is, the recession that has impacted the industry over the last two-plus years has made certain “rules” of business obsolete and created a “new normal.” For example, a new rule of business might include “embracing social media because it’s an inexpensive form of marketing your company.”

For the second quarter issue of the magazine, I am looking for examples like this from distributors. What traditional rules of business are you breaking at your company to survive the recession? What new “rules” are you implementing? Leave a comment to let me know what you come up with!

photo from blog.cc-efi.com

In speaking with MHEDA Member Jeff Stohr of Conveyer & Caster – Equipment for Industry (Cleveland, OH) today, he relayed the story of something his company recently did to give back locally. It’s always nice to hear such uplifting stories.

Last night, CC-EFI employees presented specially made and embroidered gym bags to a local high school basketball team whose coach had unexpectedly passed away at the beginning of the season. The details can be found in more complete and first-hand accounts at the company’s blog at blog.cc-efi.com.

Congrats to Jeff and his team for raising $1,500 to get this done! In times of economic strife, to step up so generously says a lot about the character of this company. And I hear stories like this from MHEDA Members on a regular basis. It’s a tribute to the industry and the association in particular. Kudos!