In an environment of cautious optimism, the key to capturing a bigger slice of the pie is the ability to communicate the value of one’s product (especially new products) and the ability to provide customized solutions. Many suppliers are still not seeing signs of a softening, yet they remain mindful of the pundits’ forecasts. Truck manufacturers have seen a softening in the 4th Quarter of 2007, which underscores the need to be more aggressive when pursuing the end-user. All in our industry point to the continual construction and expansion of distribution centers and the still-abundant amount of cash that is available. Software providers are predicting technology upgrades as users streamline their communications between employees working in the field and those in the office. Overall, everyone cites the need for increased communications in order to deliver more value. Everyone cites the importance of feet on the street and creating more opportunities for face time with distributors and their salespeople.

The devalued dollar is impacting U.S.-owned companies as virtually all imported products realize immediate cost increases. For domestic manufacturers, the playing field will be leveled for perhaps the first time in many years. Quality measurements will, as a result of the lower U.S. dollar, grow in importance.

As 2008 progresses, time will tell if election-year fever causes a few sneezes or an all-out flu. Regardless of our industry’s economic health, 2008 is likely to be the year of communication as we all strive to be ready for opportunities to best meet the needs of our customers, while heeding the need to increase efficiencies and better manage (say the word “lean”) our operations.

New Products Provide New Solutions
2008 is likely to be a very competitive year as manufacturers rely on new product introductions that bring new solutions to the table. In order to capture market share in a fiercely competitive environment, manufacturers will be more aggressive in the face of what is said to be a softening environment. Translation: Look for more pressures on profit margins.

Don Chance, president, Yale Materials Handling Corporation (Greenville, NC), has projected a flat year but admits that the poor performance of the 4th Quarter of 2007 is creating concern. Hopeful for a slight recovery by 4th Quarter 2008, plans call for an expanded national account program and growth of Yale’s fleet management program. Chance says, “We will see more direct management of fleets from our corporate headquarters, in partnership with our dealers functioning as service agents.” A new electric rider line will be introduced during the 2nd Quarter, supplemented by additions to that family of products throughout the year and the 1st Quarter 2009. Chance says, “We will focus on doing more with less and expect to make better use of technology as we handle more volume.”

Expecting a good, albeit flat, year, Paul Laroia, president of the Americas, Hyster Company (Greenville, NC), plans to increase market penetration by introducing new products throughout the second half of the year. With increased competition, market share is captured with increasingly narrow margins, forcing senior management to look more closely at cost compression manifested by a desire to reduce operational costs. Laroia says, “We are taking a more proactive role in helping our dealers maintain an efficient inventory of parts. Rather than waiting for a dealer to place the conventional weekly parts order, an order replenishment initiative requires that the part is shipped as it comes off the dealers’ shelves. As we strengthen our retail capabilities, we can move equipment into service more rapidly, thus providing more uptime.”

New product introductions are expected to help Ilidio Alves, director of marketing and product development, Nissan Forklift Corporation of North America (Marengo, IL), to increase market share. Expecting sales to remain flat or possibly net a 1% increase in sales, Alves believes competition for market share will remain fierce throughout the year.

The launch of seven new products in 2007, supplemented by one or two 2008 new product introductions, will drive a 5% growth in sales, says Bo Maslanyk, national sales director, Clark Material Handling Company (Lexington, KY). Maslanyk adds, “A close relationship with our dealer advisory group is a true partnership. We are seeking their ideas and advice and then we act on it. Amongst our existing and new representation, there is a resurgence in commitment to the Clark brand, which will also drive growth in what promises to be a competitive marketplace. When it comes to national account performance,” Maslanyk says, “our approach will be measured. We will seek quality as opposed to volume.”

A Class I product expansion during the 1st Quarter and the introduction of a new Class III product during the 2nd Quarter, together with a newly opened distribution center, will help to support a growth in sales of 5-8%, says Bruce Pelynio, president, Heli Americas (Memphis, TN). Pelynio says, “With additional aftermarket support personnel, we will expand our service capabilities. As margins narrow, going forward, the pressure is on the dealers. We are positioning ourselves with a proprietary product, providing our dealers with exclusivity in their markets.”

Continuing to develop his dealer channel, Eric Kobori, vice president of sales and marketing, Komatsu Forklift USA (Covington, GA), will gain market share and an overall 10% growth in sales. New products introduced in late 2007 will be supported by an expanded marketing and national account sales effort.

Building upon its 11% sales increase growth of 2007, a growing distribution channel will contribute to 2008 growth of 10-15%, believes Vic Moore, national sales manager, Hyundai Construction Equipment USA (Elk Grove Village, IL). The late 2007 introduction of a new series of forklifts will be supplemented with additional products throughout the year. Moore says, “Internally, we stress our ability to be dealer-friendly and continually look for ways to work better with the dealer channel. As an example, we are making better use of electronic communications, making it easier to do business with us while shortening our response time and exchanging more information with our dealers.”

If new truck sales are softening, it stands to reason that demand for used equipment will increase. Not content to rely solely on curveballs tossed by hiccups in the overall economy, Mike Sibulkin, vice president, Continental Lift Truck (Jordan, MN), says, “Sometimes you just have to work a little harder for the business.” Expecting sales to be at least level to possibly up by 5%, Sibulkin is doing more sales offshore. He says, “We are doing more specialized work, including an emphasis on large rentals, that others may not necessarily do.” An additional salesperson will also support more of the company’s sales efforts.

As a smaller OEM, Scott McGonigle, vice president of sales, Superior Engineering (Anderson, SC), says that he must control and pace his growth. “Not enough orders will put you out of business, while too many, if you aren’t prepared to handle it, will do the same.” McGonigle’s mission is to manage his company’s continual growth. As a core part of his business, AGV product manufacturing is experiencing rapid expansion. Looking ahead, McGonigle notes that the cost of AGV ownership and the technology itself is continuing to come down.

“The greatest challenge is to provide the customer with the right product,” says Mark Woody, president, Palfinger North America (Niagara Falls, ON, Canada). Pointing to less backlog at the start of 2008, Woody expects business to remain level at least for the 1st Quarter. 2008 may well be a building year in preparation for future growth as the company invests time and resources in the development of an entirely new product to be launched during the 1st Quarter of 2009. Relationships and maintaining them are vital. Woody explains, “As the economy softens, it’s more important that we meet with the distributor and strengthen those relationships. As the marketplace is challenged, more end-users are investing in products that can do more, and they are more willing to invest more dollars if it means that they are more productive.”

As end-users stretch the use of their equipment longer, Mel Griffin, president, Lift-Rite (Brampton, ON, Canada), still expects sales to be up by 5-10% as his company increases its market share. Griffin discusses new products, “New products, unique to the industry, scheduled for introduction during the first half of the year will have fewer moving parts. If there are fewer parts, there is less down time and longer run time.”

Customized solutions are enhancing Autoquip’s (Guthrie, OK) ability to capture larger and larger sales, increased market share and a sales increase of 5-10%. Louis Coleman, national sales and marketing manager, says, “As we sell more custom builds, the challenge is to get to the customer and develop good information, working together with the distributor to the extent that the distributor wants. The sales cycle is typically long and managing roles and involvement is typically a challenge. Who wants to be responsible for what?”

By producing more customized products and remaining price competitive, Ric Schlesinger, president, Econolift (Mississauga, ON, Canada), is hoping for a 10% increase in sales which will match the sales volume the company enjoyed in 2006. Schlesinger says, “We have to become more efficient in North America. We are tightening our belts and getting leaner.” By sourcing some materials from offshore companies and practicing a more lean philosophy, Schlesinger is able to be more price-competitive without compromising quality. Schlesinger notes, “It is more competitive. The amount of time lapsing between an initial quote and the actual purchase is lengthening, often delaying capital expenditures until the following year.”

As awareness of product capabilities increases, the market for Narrow Aisle (Dallas, TX) grows, says Warren Cornil, president. Cornil says, “I will be disappointed if sales are not up by at least 20%. A combination of retaining the best industry talent and hard work is proving successful. Hard work and a good plan can always overcome adversity.”

Steve Guagliano, president, Mobile Industries (Mississauga, ON, Canada), says, “With the acceptance of marketing programs introduced during the past year, we are realistically optimistic, expecting growth of 10-12% of existing products and a 20-25% growth of newer products. As a manufacturer, it’s my responsibility to generate new business by helping dealer partners find ways to grow their businesses.” Guagliano is expecting to see increased activity resulting from the hiring of a Spanish-speaking sales representative responsible for working with U.S and Canadian companies’ operations in Mexico and South America.

New Technologies Provide Increased Market Share
Technology is the ticket when it comes to growth in 2008. Communications between the distributor and the factory are vital in order to clarify the end-user’s need and the technology that is tapped to create solutions that lead to increased market share.

In the face of his distributors’ forecasts of a softening year, Karl Scholz, president, Pacline Conveyors (Buffalo, NY), remains upbeat with plans to maintain 2007 numbers. An expanded distributor network and new products introduced late last year will help to drive sales. A 1st Quarter move to a larger facility will ease his company’s congestion of the past few years and will help to efficiently expand capacity. While looking ahead, Scholz notes, “The number of companies that are automating seems to outpace the general economy annually. That number will protect our sales volume even in a declining market.”

The revamping of his entire product line will help Alex Herman, director of integrator sales, FKI Logistex (Cincinnati, OH), to hold sales level, even in an environment of fewer projects. Herman says, “Technology is key. Our strength is in the integration of multiple products.” Herman predicts that the ability to look at a system and help the customer with an overall design concept will win business in the future.

Pointing to new product introductions launched during the last quarter of 2007 as an example of what happens when an OEM listens to the distribution channel, Bill Hawthorne, vice president of marketing, Hytrol Conveyor Company (Jonesboro, AR), expects a 2-3% increase in sales. “We listen to our distributors,” says Hawthorne. “Continuous product and application training is vital as we tap into new products which provide new solutions.” The company will continue to expand on its lean philosophy, applying measurable improvements that have succeeded in the manufacturing arena to the administrative areas of the company.

Most of a projected growth of 8-10% will be driven by new product introductions in 2007 and 2008, according to Tre Lapeyre, product manager, Intralox (Harahan, LA). He adds, “We are concentrating on products that offer favorable price performance characteristics, primarily when doing some sort of manipulation of product, sorting, singulating or descrambling of product.” The company is also in the process of constructing an additional facility to both create additional capacity and to avoid the potential for the ramifications of Katrina-like disasters. Lapeyre says, “It’s a business continuity facility, in order to continue operations if disaster strikes. It will give us a fallback.”

Phil Miller, president, AmbaFlex (Grand Prairie, TX), has seen no letup in the last 18 months and expects his sales to grow in 2008 by 10-15%. He says, “We will be stressing new applications of existing technology which will open additional doors for us.” In addition to new product introductions during the 1st Quarter, the company is considering a new manufacturing facility. One or two additional salespeople are likely to be added in order to target new industry niches.

Gordon Hellberg, vice president, TGW-ERMANCO (Spring Lake, MI), is expecting sales to grow by 10%-15%. Hellberg says, “When we look at distribution centers, it can be somewhat of a snowball factor.”

Kevin Risch, president, Mallard Manufacturing (Sterling, IL), will provide distributors with new solutions in the form of new products to be introduced during the first half of the year, and drive his company’s sales upwards by 15-20%. Risch’s attention will be on management of existing and new processes to make the best use of the latest technologies to keep up with growth.

Bigger Projects Mean Bigger Sales
For many, 2007 was a very good year. Hesitating to project large growth, many suppliers are hoping to maintain 2007 numbers. Growth will come from highlighting customized solutions and developing the partnership that allows both distributor and supplier to shine. Growth will come to those who develop new applications.

“Distributor loyalty is everything,” says Keith Pignolet, executive vice president, Wildeck (Waukesha, WI). The possible introduction of new product and an ability to support distributor sales efforts will help to maintain Wildeck’s 2007 sales levels. Pignolet says, “We will concentrate on maintaining dealer loyalty. Our dealers play a major role in our success. We need to communicate effectively in order to understand their needs.”

Kevin Minkhorst, vice president of sales and marketing, 3D Storage Systems (Newmarket, ON, Canada), was extremely busy during the 4th Quarter of 2007 and looks for that activity to continue through the 1st Quarter. He says, “Manufacturing in North America is hurting, but products are still being manufactured offshore, and those products require North American distribution centers.” The company plans to expand all departments, and will soon add a second shift. As a Canadian company, Minkhorst points to the decline of the U.S. dollar and the importance of cutting costs in order to offset the devalued dollar in order to remain competitive. Looking ahead, Minkhorst anticipates increased usage of plastic pallets as opposed to more costly hardwoods. This move from hardwoods to plastics could be problematic. He says, “Customers are changing to plastic pallets and in some cases not considering the fact that the plastic may not meet the specifications of a storage system purchased five or ten years ago.”

Dave Olsen, national sales manager, Ridg-U-Rak (North East, PA), has been polling his distributor network with regard to their expectations for 2008 and the response has been mixed. Olsen, planning to maintain 2007 sales numbers says, “There’s no shortage of money. It is just a matter of end-user confidence in the economy.” The company will continue to focus its attention on a seismic base isolation system introduced in 2007.

Craig Chamberlin, president and CEO, AWP Industries (Frankfort, KY), offers proof that selling product through a distributor network makes sense and cents. He notes, “Distributor-generated sales for American Wire Products have increased annually for the past three years by an average of 18%.” Chamberlin confidently expects sales to be up again in 2008, as his company makes even better use of electron-ic marketing, expands its remote quick ship program and provides additional function for distributors on its Web site. Chamberlin adds, “We are placing significant emphasis on direct contact and face time with our customers, and we continue to be aggressive with regards to price while maintaining and raising quality standards.”

Alex Fuentes, general manager, Mecalux USA (Melrose Park, IL), is expecting continued growth. Fuentes adds, “The biggest challenge is to understand the market. It is constantly changing and it’s our role to always support it and to change with it.”

Brian Boals, director of distributor sales, UNARCO Material Handling (Springfield, TN), expects 2008 to begin somewhat slowly or steady, picking up as the year progresses, resulting in overall growth. Boals says, “Strengthened relationships with distributor partners will result in an increase in volume. The 2007 acquisition of Kingway-Inca-Clymer Material Handling will also provide more distributors with more options.”

“As more operational people participate in the buying decision, more emphasis is being placed on quality as opposed to price, and this trend will support a growth in sales,” says Bob Lawless, CEO, Creative Storage Systems (Kennesaw, GA). Product introduced in 2007 which helps to reduce freight costs by eliminating the use of pallets will also help to support growth. The company plans to add two new salespeople in 2008.

An expanded sales force and a more innovative partnering approach will mean a sales increase of 2-3% for Steve Johnson, national sales manager, Nashville Wire Products (Nashville, TN). Johnson says, “Our biggest challenge is to convey the message of value, when being compared to imported products.” To overcome that challenge, a recently expanded sales department will spend more time educating the distributor channel on the value of their products.

The 2nd Quarter introduction of two new shelving products, additional sales personnel and an increased number of larger, integrated projects will contribute to 6% or more growth, says Joe Cascio, vice president of sales, Borroughs Corporation (Kalamazoo, MI). He adds, “A new challenge facing our industry is the design of products that are acceptable to fire marshals or local codes for various municipalities, as well as the challenges associated with manufacturing more perforated shelving, both pushing us harder to meeting end-user needs.”

With the mid-year introduction of two new families of products and delving deeper into already established market niches, Bruce Meredith, vice president of sales and marketing, Rapid Rack Industries (City of Industry, CA), expects overall growth of 7% to 10%. Meredith says, “My biggest challenge is the recruitment of several key salespeople with some very specialized skill sets.”

As companies consolidate warehouses, distribution centers are becoming larger. A 10% growth in sales, according to Jim Mierke, vice president of sales, Western Pacific Storage Solutions (San Dimas, CA) will be generated by an emphasis on growing his company’s participation in integrated systems and larger projects. The company will move its Frankfort, Kentucky, manufacturing operations into a new, more efficient space in nearby Paris, Kentucky, during the 1st Quarter. Mierke says, “We are putting a new focus on the systems end of the business, doing higher-rise multi-level shelving systems, integrating our products together into more of a systems approach than a catalog item.”

A strong partnership between the distributor and the supplier can offset a softer market, says Brian Neuwirth, president, Unex Manufacturing (Jackson, NJ). Neuwirth is expecting sales growth of close to double digits, and explains, “A plan to provide more factory-based training and to share more information and participation in joint marketing programs is helping to support sales.”

Jim Wooley, president, Rack medX (Olive Branch, MS), says that the 1st Quarter 2008 is already up by 17% and that 2008 growth is the result of increased awareness of the benefits associated with rack repair when compared to dismantling and installing new rack. He says, “We are expanding our manufacturing capacity by 30% to accommodate growth. The cost of new rack and its dismantling and replacement is just sky high, and it’s not likely to change.”

Dave Johnstone, national sales manager, W.C. Cardinal Co., (Cadiz, OH), is expecting a 10-20% growth in sales. Senior management is currently discussing the possible 1st Quarter expansion of the company’s cantilever division by as much as 20,000 sq. ft.

Customized Solutions Will Bring Home the Bacon
Growth in 2008 is all about the distributor and helping that distributor to be in a position to offer the end-user customized solutions. The distributor helps the manufacturer to have more feet on the ground talking about his product. The key to growth in 2008 is for the distributor to understand the product’s application and what it could mean to his local customer.

Pointing to a potential roller-coaster ride for 2008, David Butwid, vice president of sales and marketing, Gorbel (Fishers, NY), expects sales to be down by 5%. The 1st Quarter introduction of new product will help to even out the ride. Butwid says, “The biggest challenge continues to be the shift of manufacturing to offshore locations.”

Seeing a change in his product mix with the 3rd Quarter introduction of a new product line that makes optimal use of new technology, Steve Spires, president, Wesley International (Scottdale, GA), expects to maintain 2007 numbers. The company will focus on improved internal processes and will continue hiring efforts to expand the sales and engineering departments. Spires says, “The key is to not get too comfortable with what we have done in the past. My job is to prepare, educate and motivate salespeople to be solution providers instead of sellers of a product. It’s easy to forget what distributors do in local markets. Material handling dealers know their local market, the buyers and what’s happening long before the needs make it back to us. Our responsibility is to create the answers that the distributors’ customers require.”

A product mix which includes customized solutions will drive a single-digit growth, believes Bob Andrews, president and CEO, Morse Mfg. Co. (East Syracuse, NY). Andrews, commenting on the influx of lower-cost copycat imports says, “It’s taken 15 years or more for people to open their eyes and see the differences. We are in a very good position because we have not sacrificed our quality for price. We have established the fact that we are a quality organization and we will not compromise that.”

Taking market share from others with a broadened product line, Michael Thorne, vice president of sales, Albion Industries (Albion, MI), is forecasting a growth in sales. He says, “We add about 20 new products annually and will introduce several which will target specific niche markets, including the medical, food service and hospitality sectors.” The plan for Thorne’s team in 2008 is to continue investments in training and new product development.

Expecting the strength of the second half of 2007 to continue, Steve Lippert, executive vice president, Hamilton Caster Mfg. (Hamilton, OH), expects an increase of low single digits. He says, “Our success depends largely on the success of our distributor partners. Quality still sells, service still sells.” The company continues to rely on the strength of its warranty programs and its custom work in response to competitive pressure form offshore manufacturers.

Expecting a challenging market in 2008, Chuck Bub, president, Colson Caster (Jonesboro, AR), is forecasting a sales growth of 4%, supported by the introduction of new products that will help the company enter into new markets. He says, “All manufacturers are challenged by the ease of entry into this industry. As some distributors purchase product from offshore manufacturers and market those products with their own brand, we are looking for ways to add more value to the distributor-supplier relationship.”

With new prototypes on the back burner, Bonny DesJardin, president, Jesco Industries (Litchfield, MI), is re-engineering her manufacturing facility to further streamline operations. In order to accommodate an additional 5-7% in sales, DesJardin may add another production line. She says, “If we do not have stock that is readily available, which is somewhat against lean thinking, I can’t sell it. Even if the customer realizes that there may be a three-to-four week lead time, there is an ‘I-want-it-shipped-yesterday-mentality’ that is fairly common regardless of the type of product ordered.”

Burt Hovis, industrial sales manager, Molded Fiber Glass Tray Company (Linesville, PA), expects his company’s reputation to drive a 5-10% growth in sales. He says, “We just had an extremely positive sales meeting. New individuals on board are enthusiastic and will communicate the message of quality.”

With an increased concentration on the branding of its products and a growing Web presence, John Costello, vice president of marketing, Cherry’s Industrial Equipment (Elk Grove Village, IL), expects sales to increase by 7% or 8%. Costello adds, “We are also refocusing our attention on the distribution channel to reach more potential buyers.”

Paying more attention to the distributor is the ticket to almost double-digit growth, says Patrick Bicanic, director of sales, Jarke Products/Div of Leggett & Platt (Freeport, IL). According to Bicanic, “The distributor’s strength is the ability to find solutions that are custom tailored to his customer’s application. Those solutions are not purchased from a catalog.” The company plans a hybrid form of marketing relying on both manufactures representatives, master distributors and factory sales personnel to better support the independent distributor. In addition to a focus on the industrial sector, Bicanic will stress developing additional sales from within the health care, scientific and laboratory markets.

New products and new technology will push sales up by 8-10%, believes Brad Grindstaff, director of channel development, Fairbanks Scales (Kansas City, MO). He says, “More important is the fact that our channel partners are viewing us as a resource when growing their businesses.”

Bob Bushong, president, AccuLoad Scales (Oxnard, CA), expects sales to be up by 10-15%, driven by the need for efficiency in the forklift operations. New product introductions scheduled for the 2nd Quarter, which will enhance management’s ability to generate reports, will improve efficiencies. The company will continue to focus on a seismic isolation system.

Cost reductions in manufacturing processes and capital expenditures are helping John Bennetsen, president, Folding Guard Company (Bedford Park, IL), hold the line on pricing and ultimately capture market share. Expecting a 14% increase in sales, Bennetsen will introduce at least one new product in each quarter. Preparation for growth may be Bennetsen’s strongest suit, adding, “With a potential greater acceptance of welded wire partitions and lockers, we are positioned to absorb 300% more business and not have any extended deliveries.”

With a nod to his company’s 30-year history and a relatively low-profile marketing effort, Mike Vollmar, CEO, Superior Handling Equipment (Ormond Beach, FL), is forecasting growth of 50%. Vollmar explains, “As a small company, if we are more visible and have more face-to-face contact with our distributors, we can experience substantial growth.” Plans for 2008 call for adding several strategic partnerships with distributors in markets that are currently underserved.

New Products Are Key in Market Share Acquisition
As new truck sales appear to soften, aftermarket suppliers are placing more emphasis on the introduction of new products and more “feet on the street” to either maintain sales numbers or even grow them. In order to sell more product to more end-users, there is an increased push to help distributors demonstrate the cost savings value associated with their products and to work more closely with channel personnel in order to communicate the value of newly introduced technologies.

Bill Jones, president and CEO, Materials Transportation Company (Temple, TX), anticipates 2008 sales to equal 2007 sales. Continuing his focus on automation, Jones will increase efficiencies. He says, “The challenge is to continually position ourselves to help customers utilize their assets optimally. Our never-ending challenge is to educate the market in order for them to understand our products and their value.”

The introduction of new products and an expanded sales force will drive market share gains and help Jim Keyser, business manager, AMETEK Prestolite Power (Troy, OH), to maintain 2007’s sales numbers at least for the first half of 2008. New products to be introduced during the 1st Quarter will address the market’s demand for high-frequency chargers. Two or three additional products to be introduced during the year will continually address the buyer’s need for efficient reductions in energy costs.

Dan Dwyer, vice president/general manager, Sackett Systems (Bensonville, IL), expects sales to be level, supported by several new products to be introduced during the 1st Quarter. He says, “It’s all about creating value, increasing the end-users’ efficiencies, creating longer-lasting products and improved serviceability of the product.”

New products, including a series of high-frequency chargers and fast chargers, will support sales equal to 2007 numbers, according to Mark Jesko, vice president of marketing, GNB Industrial Power Div. of Exide Technologies (Aurora, IL). Jesko says, “Our success is the result of working with truck dealers. Our future growth will continue to come from the truck dealer, supported by an expanded sales department.”

As new truck sales soften, Frank Altenhofen, vice president of the Americas, Cascade Corporation (Fairview, OR), expects to see a slight growth supported by the end-users’ planned capital expenditures which require replacement of existing equipment. He adds, “We have more feet on the ground, which allows us to support the distributors’ salespeople. In a soft market, it’s even more critical that we are available when the distributor needs us.”

Expecting continued growth, Jack Martin, product line manager, Superior Tire & Rubber Corp. (Warren, PA), will focus on specialty compounds that have the ability to perform in harsh atmospheres. The lower U.S. dollar will also support sales efforts in Canada and elsewhere. Senior management is currently looking for additional square footage in order to support its future plans.

Terry Orf, vice president of global sales and marketing, Battery Handling Systems (St. Louis, MO), expects sales to increase through extensive marketing efforts. Orf says, “Our manufacturing square footage is the largest in the industry, yet we are the best-kept secret in the industry. Our challenge is to further awareness of our capabilities through our dealer network by doing more product training.”

“Once the marketplace settles, at some point you have to invest in getting your fleet up and running correctly,” says Eric Lane, president, Basiloid Products (Elnora, IN). An additional two to four manufacturing employees will help his team keep up with a potential growth of 2%. Lane adds, “We are teaming up with the corrugated box people, and together will provide more information to the distributor regarding the benefits of corrugated packaging when comparing it to the costs.”

With the introduction of a new cold storage power system and a push on maintenance-free products, Geoff Davies, industrial marketing manager, Douglas Battery Mfg. Co. (Winston-Salem NC), expects a 5-6% increase in sales.

A shipping and pricing program based on the weight and quantity of product will contribute to growth of 5-10%, says Thom Hronis, vice president of sales, Solideal USA, Wholesale Div. (Charlotte, NC). Several new products will be introduced during the 1st Quarter. To further enhance efficiencies, the company will consolidate three Midwestern locations, moving into a single 135,000 sq. ft. location in Joliet, Illinois.

Believing that the industry may have one or two soft quarters, Jim Meikrantz, vice president of sales and marketing, Hawker Powersource (Ooltewah, TN), is expecting a sales increase of 10%. He says, “We will continue to introduce new products. With the late 2007 introduction of a high-frequency smart charger, we are still in a take-off mode for that family of products.” The goal for Meikrantz is to introduce products that enhance his company’s capability to collect data that help the user to reduce costs.

Ydo Doornbos, managing director, Trelleborg Wheel Systems Americas (Hartville, OH), always aims for double-digit growth and continues to aim for significant growth in 2008. He says, “Our core strength is the production of products that incorporate state-of-the-art, new compounds.” A new solid resilient tire to be introduced during the 1st Quarter and a new Monarch resilient tire within the first half of the year will further Doornbos’ goal for growth in a soft market. 

With a broadened product offering in 2008, aftermarket sales are likely to continue to grow at the rate of 10-15%, says Dirk von Holt, vice president sales and marketing, Systems Material Handling (Olathe, KS). Says von Holt, “We will capture additional market share and enhance delivery times with the 1st Quarter openings of distribution centers in Pennsylvania and in South Carolina.”

A joint venture with General Electric will help Barry Bowman, president, Flight Systems Industrial Products (Carlisle, PA), to increase his sales by 10-15%. Capital investments will help the company to expedite the manufacturing of more aftermarket products for GE originals, turning the product around faster. Bowman says, “As we strive to reach the next level in sales, we are reinventing ourselves. We have made an investment in additional personnel to put a bigger emphasis on sales, calling on more OEMs and distributors to capture more business.”

The 1st Quarter introduction of a lower profile plug which will open previously closed doors for George Miller, director of sales, Battery Filling Systems (Clemmons, NC), will help to drive a 15% growth in sales. Miller adds, “The majority of battery users still do not take advantage of the watering systems that are on the market. There’s a substantial market out there that is not being served by anyone.” An additional regional manager will help to educate the marketplace on the benefits of watering systems.

Expecting 2008 to be what he refers to as a moderate year, John Shannon, president, Quick Cable (Franskville, WI), will invest in his sales and marketing efforts, enlisting more employees to spend more time educating and training the distributors’ sales personnel to achieve a 15% growth in sales. Increased use of e-commerce and an expanded distributor channel is increasing the average size of sale.

A combination of three new products introduced last year and increased penetration of a more diversified OEM market will contribute to a 15-20% growth in sales for Greg Krantz, president, Stellana U.S. (Lake Geneva, WI). With three additional products to debut this year, the company plans to expand its sales department. Krantz says, “Seventy-five percent of the products that will be sold five years from now are not even on the market today. The industry will continue to experience rapid change in order to meet customer needs.”

Newly developed and soon-to-be patented battery handling products, together with an additional salesperson, will help sales to jump 20%, believes John Pratt, president, Multi-Shifter (Charlotte, NC). Pratt says, “2007 has been a building year for us.”           

“The introduction of a new layer of software, providing ease-of-use benefits and the ability to access data which optimizes fast charging, will drive sales upward by 20% in 2008,” says Bret Aker, CEO, Aker Wade (Charlottesville, VA). The new software products to be introduced during the first six months of the year require an additional focus on product education and training, which will be made possible by the additional three to five sales and application engineers the company plans to hire. Aker says, “The end-user needs better information to run his fleet, not just more spreadsheets. In a sense, we are making the dealer’s customer lean.”

Tom Doty, general manager, warehouse1 (Kansas City, MO), expects a combination of increased government contract business and an increased number of resellers to drive an annual sales growth of 20-25% each year for the next ten years. To start off 2008, the company invested in a fully integrated software program which will help to provide better financial, inventory and warehouse management. Doty adds, “The key driver in the next five years will be technological advancements and the speed with which we react to those changes.” To react more quickly to changes in the marketplace, the company will add three key technical people this year.

With a recent track record of 50-100% growth annually, Terry Wickman, president, Keytroller (Tampa, FL), expects sales to increase by 30%. He explains, “The 4th Quarter 2007 introduction of an electrical, noiseless backup alarm in addition to 2008 new product rollouts will support the need for a heightened emphasis on safety.”

Show Us the Money
When the going gets tough, the tough just get more aggressive. In order to grow sales in an admittedly challenging economy, some organizations will sharpen their pencils in an effort to capture more market share.

Forecasting double-digit growth, Jim Gagne, general manager/executive vice president, US Bank (Danbury, CT), is in an aggressive mode and says, “There is still plenty of opportunity to grow our wholesale business. There are also lines of credit that can be increased. As the market softens, stronger dealers are in a position to take advantage of those market conditions, and those dealers tend to acquire equipment more aggressively at better prices.”

Pointing to product innovations as a growth stimulus, George Schmid, vice president of specialty programs, Calco Liftguard, Div. of Edgewood Partners Insurance Center (Orange, CA), is expecting sales to increase by 35%. One such example is a possible service warranty product for the material handling industry. Schmid says, “As distributors work harder to serve their customers, we must continue to be flexible in providing online product demonstrations, whether on the weekend, at night or at 6:00 a.m.”

Mobile Solutions Said to Top Distributor Wish Lists
The need for state-of-the-art technology will never go away. Communications between the office and the field continue to dominate the latest advances in software introductions. In 2008, growth in sales will come as providers of increased solutions deliver products that further streamline distributor efficiencies.

According to Jed Cavadas, COO, Edgerton Corporation, (Strongsville, OH), years ago it was enough to have software or a Windows package. Today the driving force for growth is to improve the dealers’ operations. He says, “We are working in 2008 to enhance the productivity of field technicians. The driving force is to listen constantly to our customers, work closely with them, and work hard to get our software to echo their needs.”

“There is no magic to growth. It’s a lot of hard work, a lot of sales work, and it’s a consistent focus on meeting the customer’s future needs. A base of 3,000 customers utilizing a variety of different products will contribute to a 5-6% growth in sales,” says Rick Bearden, vice president, DIS (Bellingham, WA). As the market matures, Bearden also notes that it’s very painful and very expensive to change systems. The biggest challenge will always be to meet everyone’s technology needs.

Mauricio Jurin, product manager, Equipment Data Associates (Charlotte, NC), will continue to convert existing customers to an upgraded product, providing them with more data, resulting in a sales increase of 10-12%. New enhancements to existing products will be introduced throughout the year. Jurin says, “As the industry softens, the allocation of marketing dollars will be more challenging for the dealer. Our mission is to provide the dealer with a product that makes best use of those marketing dollars.”

Pointing to 2007 growth of between 22-24%, Jim Wenninger, CEO, WennSoft (New Berlin, WI), anticipates the same rate of growth for 2008. New products introduced late last year, a continued emphasis on providing a mobile solution, and a doubling of capacity as a result of a facility expansion in Fargo, North Dakota, will support the same pace of growth. Wenninger says, “Dealers are starting to look at how they can benefit from technology without having to manage the integration themselves. For many, in the past their money has been spent, not productively, on integration while spending very little on improving the application. Older technology on its last legs is being priced substantially below market price because it’s not current technology. Our hurdle is to prove to the customer that the additional premium associated with new technology is worth the cost.”

CHECKPOINT How did you measure up? Find out by revisiting the 2007 Industry Forecast.

Looking ahead at 2008, all suppliers are capitalizing on the positive strengths of the past few years. Many describe the past few years as “building years,” and those companies are well-positioned for sales growth or at least a level year. Heightened profitability has left our industry in good stead. Suppliers are undertaking facility improvements and will continue to invest in the capital equipment and in the training of qualified personnel to carry their companies forward. The companies interviewed remain upbeat when addressing potential challenges and more important, to overcoming potential challenges in order to continue their battle for increased market share.

   Current Issue   |   Past Issues   |   Search   |   Contact Us   |   Advertising   |   MHEDA Home Page

The MHEDA Journal • First Quarter 2008 • Volume 37, No. 1 • Contents are Copyright © Data Key Communications, Inc.
All rights reserved. • Nothing may be reproduced in whole or part without written permission of the publisher.