Material Handling Management

Determining the Best Time to Replace Your Material Handling Equipment

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Even a well-maintained forklift fleet needs to be replaced at some point in time. Knowing exactly when can be a difficult thing to ascertain. Industry averages reveal that somewhere between 8,000 hours and 10,000 hours of use is when you’re going to reach an optimal point to replace your forklifts. Some questions to ask to help determine if it is time include:

  • What type of operation does each forklift perform each day? Does your forklift face harsh conditions like heat, dust, rough terrain or any other condition that would put undue stress on the engine, transmission or hydraulics?
  • Is your forklift put to the test each and every lift, lower and transport? Does it handle its maximum capacity more than half the time, or less?
  • Does your forklift do a lot of starting, stopping and backing up? Does it frequently conduct long runs in large open areas?
  • Have you adequately maintained the equipment using a regularly scheduled Planned Maintenance Program?
  • How has the cost of repairs for each unit changed over the past two to three years? A dramatic increase in repairs (not normal planned maintenance or normal wear parts) can indicate that you’re spending more than you should on repairs. A cost-per-hour analysis may be in order.

The not-so-obvious costs associated with worn forklifts is downtime, lost productivity and the short-term cost of replacing them with rentals. These costs may not show up on a unit’s cost per hour, but they are costs nonetheless. Keeping count of rentals due to downtime and repairs is essential in determining replacement, as new forklifts will all but eliminate your rentals due to downtime.

There are other reasons that may eliminate the guesswork and actually require you to replace your aging fleet:

  • Safety features are outdated and cannot be updated properly. For example, safety requirements may change and a new safety harness system would replace traditional seatbelts. Also, if safety options have improved fleet safety and the cost to update them would be prohibitive, it would be a good time to consider replacement.
  • If your forklifts are exhibiting signs of unsafe operating conditions like hydraulic failure, equipment shaking or jerking or leaking components, it’s likely time to replace the units.

Another reason to consider updating your forklift fleet are improvements in technology, hardware or performance. For example, now that electric forklifts have become more powerful and reliable outdoors, it could be a great time to consider replacing your IC forklifts.

As you can see, looking at the hour meter is not the sole solution that it used to be to consider replacement. We would be glad to consult with you to assess your fleet condition and help you determine if now is a good time to consider your forklift fleet retirement or replacement. Just give us a call at 800-322-5438. Visit our website to see our new forklift line-up.

The Benefits of Renting Forklifts

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Often times companies find them in a situation where they need to increase their forklift or other material handling and storage equipment fleet, but want to conserve capital for other operational objectives. This is where renting equipment on a short-term or long-term basis can be a great alternative to purchasing or traditional financing. These benefits include:

Cash Conservation – There is no cash outlay to obtain equipment under a Long-Term rental agreement. Save your cash for alternatives that produce profits for your bottom line.

Pay for what you use – Long-Term rental agreements are based upon the expected hours and operating conditions that you will use the equipment. Unlike purchasing equipment where you are paying for 100% of asset (a depreciating asset), you pay based upon the expected usage rate of the equipment.

Rental payments are 100% tax deductible* – Rental payments are an operating expense and are 100% deductible as a business expense. No confusing depreciation schedules or damaging tax ramifications at years-end. *(consult your financial adviser to confirm your tax status)

Fixed payments, no maintenance surprises – Long-Term rental agreements typically include normal maintenance. We own the equipment, so maintaining it is our responsibility. Leave the surprises to us and keep your material handling costs consistent and predictable.

Eliminate your parts and service departments – If you currently own your fleet and maintain it you need mechanics, tools and parts. Improve warehouse and plant space by eliminating the need for stocking parts and providing space to service equipment.

Eliminate obsolescence – Long-Term agreements can provide for upgrades should your business change. Don’t get stuck with equipment you no longer need due to a change in your business plans. We will find a home for the old equipment, and provide you with equipment you need today.

Keep your credit line clear – Unlike financing equipment, Long-Term Rentals have little impact on your ability to borrow money to increase your business.

Flexible terms and equipment – Whether you need new or used equipment for your operation we can provide you with the equipment you need at the terms you need. From one year to eight we can build a Long-Term rental agreement that meets your business needs.

Eliminate stand-by equipment – Do you purchase more than you need to allow for break-downs and cyclical needs? Our forklift rental fleet stands ready to supply you with immediate equipment when a need arises.

Renting hedges against inflation – Reduce the risk of labor and parts prices increases by fixing your monthly payment now for the term of your agreement.

Generate cash now – Trading in your current fleet can generate immediate cash for operations.

Flexibility, reliability and consistency are your results when you rent Long-Term with Cal-Lift Inc. In addition you will have the comfort of knowing that you have a team of professionals with a proven track record as a true partner in your material handling operations. We take all the hassle out of acquiring and maintaining a fleet of forklifts and leave you with more time to manage your business.

We would appreciate the opportunity to discuss rentals options for your company. To schedule an appointment  contact us at (800)-322-5438.

Learn More About Our Rentals

Keeping the Heat IN This Winter

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Winter is upon us, which means increased energy expenses to keep your warehouse warm and productive. While Southern California is not as effected by colder weather as our friends on the east coast, we will still be turning on the heat and anything we can do to minimize the impact of that on our bottom is helpful to a profitable 2020.

The following steps are five of our top recommendations for reducing energy consumption without turning down the thermostat.

Ensure Efficient Heat Generation Processes

Whatever thermal system you use, now is the time to make sure it is up to date with regular maintenance. Keeping your system in good operating order extends its life and ensures that it operates at optimal efficiency. Meanwhile, a poorly maintained system—particularly a gas-fired one—can pose a significant safety risk.

Another area of concern is the quantity, type, and location of your heating units. If you have made any changes to your warehouse configuration since your HVAC system was installed, now would be a good time for consultation. Technology advances quickly, and you want to be sure your HVAC system is up-to-date with current technology to ensure efficiency and effectiveness.

Maintain Proper Air Circulation

We all know that heat rises, and 20-degree temperature variances between the warehouse floor and the typical 40-foot ceiling are not uncommon. Circulating warmth to the floor can save hundreds—if not thousands—of dollars each month during the winter. The best means to accomplish this is through large industrial ceiling fans.

Determining what size, how many, and where to install industrial ceiling fans is our specialty. Fans can save up to 30 percent of your heating costs and deliver positive ROI in less than two years in many applications. Contact us for more information on fans and how many you might need to improve your energy circulation.

Retain as Much Heat as Possible

If you operate a warehouse, you have doors—very large doors. Although it is impossible to eliminate heat exchanges with cold outdoor air, you can take specific steps to significantly reduce it. These steps are more cost-effective than you probably expect.

Insulated dock panel doors can help retain warm air. However, depending on the number of dock positions, investment in them can be prohibitively costly. Instead, consider an insulation kit for each door. Insulation kits are less expensive, provide an R-Value of 6.81, and are easy to install.

Gaps around your dock doors can also cause significant heat loss. Inspect the top, bottom, and both sides of each door. If you see daylight, you are losing energy. Weather stripping kits are available to fill these gaps. The kits include weather stripping for the perimeter of the door as well as a 5-inch double-loop bottom rubber astragal to ensure that doors close tightly at the bottom. In addition to preserving heat, the seals keep bugs and other debris outside your warehouse facility. Caulking and sealants available at your local DIY big box store can help improve retention of heat dramatically over the winter.

Dock seals or shelters are imperative for preventing tremendous heat loss during trailer loading and unloading. If you are running a high-traffic operation without seals or even with worn seals, tens of thousands of expensive BTUs can blow out the door each winter day. If your seals or shelters are in good condition, be sure each tractor trailer is backed up tight against them before the dock doors are opened. Many types of dock seals and shelters are available. We can help you choose the right ones for your doors and budget.

One final area we recommend assessing is your dock leveler. If you use pit-mounted levelers, it makes sense to ensure that the side and rear seals are in good condition. Worn seals on your dock leveler result in air infiltration. We can inspect your levelers and seals, and service or replace any that are worn

Install Windows and/or Skylights

Although it is not always practical depending on the construction of your warehouse (or if you own or lease it), we certainly recommend investigating ways to improve the natural light and heat generated by the sun! Strategically placed windows or skylights can dramatically reduce your warehouse energy costs during the winter not only by using the sun’s energy for heat, but also by improving the natural lighting in your warehouse. This reduces your reliance on lighting fixtures and further reduces your energy costs. Using retractable blinds allows you to close the windows during the summer months, which reduces heat generation when it is not required.

And if you facility has windows, consider replacing them with energy efficient windows that can provide better heat retention and help keep the cold air out. If your windows are more than 10 years old, chances are you can improve energy consumption with new, more efficient windows.

Use Air Curtains or High-Speed Doors to Segment Your Warehouse Energy Needs

Some areas of your warehouse may not be used by employees often, who do most of their work in other areas of your warehouse. These low-use areas can be kept much cooler than the areas that employees use most. Air curtains and high-speed doors are excellent ways to keep the two areas temperature controlled while dramatically decreasing your energy consumption.

Winter can be an expensive time for warehouse operators, but the right steps taken the right way can significantly reduce the negative impact to your bottom line. We can help you find the right products to ensure you’re maximizing the use of energy in your facility during the colder winter months. Contact us at 800-322-5438 to speak to one of our representatives.

Four Traits of Safety Minded Companies

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When companies are safety-minded these are four things that almost all of them do proactively to ensure a safe operation.
As managers and owners, we want a safe work environment for all of our employees. Unfortunately, all too often it escapes us. Time passes quickly, and initiatives that were once important standards become guidelines or even merely suggestions. How can we ensure that when we put safety measures in place, they will stay in place as employees come and go in a business climate that is constantly in flux?While we lack the space to answer this question in full detail here, there are a few major approaches to providing a safe work environment that transcend industries, equipment and facilities. We outline these “hows and whys” of workplace safety below.

Since 1970, OSHA has worked to create a safer workplace for all employees, and their mission has been very successful. However, accidents still happen, and not only at companies willfully violating OSHA standards. Sometimes safety goes beyond meeting standards due to unique circumstances in certain operations.

The following are a few approaches to safety that have helped both large and small companies to achieve better workplace safety, fewer incidents and accidents, lower costs, more productivity and better workplace attitudes.

Safety is integrated with company mission – Safe companies put as much emphasis on doing things safely as on doing them productively. From day one, every employee knows they are working for a company that would rather they do their job safely than quickly. These employees will lockout a piece of equipment when something goes wrong, will replace light bulbs that need it instead of ignoring them and will report unsafe behavior or unsafe conditions.

Training never ends – Employees are involved in ongoing training – how to lift more safely, how to sit properly in a chair, how to operate a certain piece of equipment and so on. Your business is fluid: things change; equipment changes; and equipment, building space and employees are added. As your conditions change, your training must address these changes. Training for the safest work environments is never a one-time event or a two- or three-day training initiation. It is an ongoing pursuit of the safest possible work facility. It should be a goal of all employees to see that their coworkers go home safe every night.

Involvement at all levels – While involvement in a safe work environment must start from the corner office, the mission and strategy it is also important to ensure that every employee knows that they are involved and responsible. It is a good idea to create safety teams for every facet of your business, to revolve people in and out of those teams, and to have them conduct frequent facility or department reviews to identify potential threats. The most successful companies have reward systems for reporting anything that could be a potential threat, even if it is as minor as a sharp corner on a coat rack. This keeps all employees engaged in creating a safe work environment.

Accountability – Once you have established your safety mission and mapped out your strategy, everyone involved must be held accountable. No one can shirk their safety responsibilities. If a sharp corner on a coat rack is missed and someone gets cut, find out why no one noticed. Are they doing regular inspections? If safety standards are not being met, it is the leadership’s job to find out why and fix it. Everyone must know that if an accident happens on their watch, it must be accounted for and a plan must be designed to ensure that it will not happen again.

A truly safe, productive and profitable workplace is attained through ongoing efforts, and these are just a few of the major traits of successful organizations. We encourage you to seek the assistance of OSHA, NIOSH or other private safety consultants to help you organize and strategize your safety plans.

If there is anything we can help you with in regard to your equipment and its operators, please contact us at 800-322-5438. We would be happy to assist you!

Forklift Fleet Optimization

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TLI Forklift Fleet OptimizationPurchasing a new forklift or other material handling equipment can be expensive, but that’s just a fraction of what it costs to operate it efficiently, or inefficiently. Getting the most bang for your forklift buck means understanding the products you move and establishing baseline costs as a start. Here are 10 tips for optimizing your forklift fleet.

  1. Assess your fleet’s total cost. The cost of your forklift or material handling equipment is typically only about 20% of your total long-term cost. Find out what service is costing, parts, labor, break-downs, rentals, additional equipment kept on hand for break-downs, overtime resulting from down time etc… This can be a real eye opener.
  2. Optimize your forklift fleet by material flow. Determining what each piece of equipment is moving, where, when and how often can help you determine productivity and equipment choices. This way you can determine a lift truck’s cost per pallet move, rather than cost per operating hour.
  3. Find an integrated dealer that understands all facets of your business. Work with a company that not only sells equipment but understands all facets of material handling. These types of dealers can provide you with total solutions which encompass all the areas of your material handling operation.
  4. Get out of the service business. Get information and quotes for full maintenance leases from your dealer. You dealer knows your equipment better than you, and can maintain it to be more productive. Full maintenance takes the guess work out of total equipment operational costs by eliminating “surprise” repairs that often occur over time.
  5. If you perform your own service, look into parts programs. Parts availability is key to maintaining uptime, so an effective parts distribution network facilitated through a lift truck manufacturer and its local dealer is essential to keep your fleet running. Some dealers can provide parts for multiple brands and types of trucks. In addition, dealers will sometime consign parts to your facility, further improving your parts availability and uptime.
  6. Stay on top of equipment advancements. Like most facets of business, material handling advancements can improve your operation and productivity. Attend ProMat, stay connected with industry resources and work with a dealer that is on top of providing the latest in material handling products including forklifts, storage and retrieval and material moving equipment.
  7. Look into fleet management. Knowing the cost of operating equipment, where and how it is being utilized is key to allocation efficiency and productivity. Software programs are available that can provide you with this information. Work with a dealer that can provide these solutions to your operation.
  8. Invest in training early and often. Build a robust and active training program. Safety and productivity go hand in hand. Well trained operators and employees are proven to be more productive and safe. Training reduces your product and equipment damage costs, injury, insurance and many other latent costs of fleet and equipment operation.

Optimizing your materials handling operation takes a bit of work. However, working with an integrated materials handling partner will take a lot of the load off your shoulders and help you operate a more efficient and effective materials handling operation.

Give us a call at 800-322-LIFT to speak to one of our material handling professionals.

Four Essentials of a Safe Forklift Fleet

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There are plenty of simple, small things you can do to improve forklift safety in your facility. These include keeping the floor clean, installing mirrors at the ends of your aisles and prominently displaying safety posters. We have identified five best practices within companies that take forklift safety to the next level.  They are:

  1. Operator and Pedestrian Training – When we say training, we mean true training. A one-day class and a 10-minute hands-on review will not suffice if your goal is to make your forklift fleet a truly safe one. In addition to initial training and refresher training, you must be sure you re-train staff any time you introduce a different piece of equipment, if an operator is re-assigned or if your operation or facility undergoes any significant changes.  In addition to operator training, you should ensure the safety of all your employees and guests by providing training to every employee about how lift equipment operates, the inherent dangers of being around them and how to conduct themselves in a facility with this equipment.
  2. Utilize available safety equipment – Ensuring that all your lift equipment and facility is equipped with up-to-date and working safety functions will go a long way in creating awareness of the presence of lift equipment. Back-up alarms, horns, lights (front and rear combo) and strobes are the hallmarks of forklifts that are easily seen and heard. In addition, be sure to ask your forklift provider about available optional safety equipment.
  3. Planned maintenance – A robust planned maintenance program will catch small maintenance issues before they blossom into giant repair headaches. This will also dramatically reduce potential accidents, making your facility a safer place to work. Your planned maintenance program should be developed based on how your forklifts are utilized, your manufacturers recommendations and should be carried out by a professional, trained staff of forklift technicians.
  4. Regular Inspections – We recommend two types of inspections. The first, as required by OSHA, are daily inspections and are a must for any company. Your operators must be trained to perform accurate and thorough inspections of both Internal Combustion (IC) forklifts, electric forklifts, and any other type of lifting equipment you operate. Damage from previous operations can occur without the operator knowing it, and failure of major components can lead to serious injury, product loss and facility damage. In addition, putting your forklift fleet on a regular service cycle or Planned Maintenance Program, performed by lift truck professionals. This is the key to achieving maximum safety, up-time and productivity.

The benefits of a safe forklift fleet go far beyond reducing injuries. They include:

  • Lower Costs – Having safe forklift operators and providing a safe operating environment, like having safe automobile drivers and better roads, will reduce your operating costs. The frequently inspected equipment will operate within normal guidelines and minor service issues won’t blossom into giant repair headaches.
  • Improved Productivity – Safe operators in a safe environment will be more productive, since down time is reduced as a result of sound equipment and reduced operator and pedestrian accidents.
  • Reduced Insurance and Workers Compensation – A safe work environment with well-trained operators will likely result in lower insurance rates and workers’ compensation in injury-related claims.

Forklift safety is no accident. Taking these measures puts you on the path to creating a safe and productive work environment for your employees.  An investment in safety and productivity adds to your company’s long-term bottom line and benefits those who operate on and around forklifts.

Have a question about forklift safety, training, service or planned maintenance? Please contact your local Cal-Lift branch, or give us a call at 800-322-5438.

OSHA Announces Top 10 Violations for 2016

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Every October, the Department of Labor’s Occupational Safety and Health Administration releases a preliminary list of the 10 most frequently cited safety and health violations for the fiscal year, compiled from nearly 32,000 inspections of workplaces by federal OSHA staff.

One remarkable thing about the list is that it rarely changes. Year after year, OSHA inspectors see thousands of the same on-the-job hazards, any one of which could result in a fatality or severe injury.

More than 4,500 workers are killed on the job every year, and approximately 3 million are injured, despite the fact that by law, employers are responsible for providing safe and healthful workplaces for their workers. If all employers simply corrected the top 10 hazards, we are confident the number of deaths, amputations and hospitalizations would drastically decline.

Consider this list a starting point for workplace safety:

  1. Fall protection
  2. Hazard communication
  3. Scaffolds
  4. Respiratory protection
  5. Lockout/tagout
  6. Powered industrial trucks
  7. Ladders
  8. Machine guarding
  9. Electrical wiring
  10. Electrical, general requirements

It’s no coincidence that falls are among the leading causes of worker deaths, particularly in construction, and OSHA’s top 10 list features lack of fall protection as well as ladder and scaffold safety issues. We know how to protect workers from falls, and have an ongoing campaign to inform employers and workers about these measures.

OSHA says far too many workers are killed or gruesomely injured when machinery starts up suddenly while being repaired, or hands and fingers are exposed to moving parts. Lockout/tagout and machine guarding (including lift trucks) violations are often the culprit here. Proper lockout/tagout procedures ensure that machines are powered off and can’t be turned on while someone is working on them. And installing guards to keep hands, feet and other appendages away from moving machinery prevents amputations and worse.

The high number of fatalities associated with forklifts, and high number of violations for powered industrial truck safety, tell us that many workers are not being properly trained to safely drive these kinds of potentially hazardous equipment.

Rounding out the top 10 list are violations related to electrical safety, an area where the dangers are well-known.

Their list of top violations is far from comprehensive. OSHA regulations cover a wide range of hazards, all of which imperil worker health and safety. They urge employers to go beyond the minimal requirements to create a culture of safety at work, which has been shown to reduce costs, raise productivity and improve morale. To help them, OSHA has released new recommendations for creating a safety and health program at their workplaces.

OSHA has many additional resources, including a wealth of information on their website and their free and confidential On-site Consultation Program. But tackling the most common hazards is a good place to start saving workers’ lives and limbs.

Purchase Price vs. Total Ownership Cost

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When you are purchasing a piece of equipment, you obtain competitive quotes, verify specifications and generate a purchase order. For that matter, just about anything we purchase goes through the same process. However, there is much more to purchasing forklifts and other material handling equipment. We have found, over the years, that often there are variables that can greatly affect the total cost of ownership of anything, be it an automobile, forklift or a giant cargo container.

The price you pay for your piece of equipment, by most accounts, reflects about 10% of the total ownership costs of that piece of equipment. This leaves 90% of your total costs up in the air. Depending on many variables, you could pay much more for the equipment than you needed to, or much less. These variables include:

Performance and Reliability of Equipment – Comparing cost per hour to operate can give you a good idea of what competing pieces of equipment will cost you over their useful life. When comparing cost per hour to operate, you should be sure you’re comparing similar models under similar circumstances. A lift truck operating 1500 hours a year for a light weight product manufacturer will cost far less over its lifetime than the same lift truck operating at a recycling facility.  This cost should reflect general maintenance requirements as well as fuel costs.

Fuel Consumption – While this is often a part of performance and cost per hour, knowing the fuel costs for each comparing brand and calculating total costs over the life of the equipment can sometimes be quite an eye-opener. In addition, what are your fuel alternatives? Can you use electric models? Thinking outside the box may result in lower costs to power your forklift and other lift equipment.

Specifications vs. Operations – It is rare that two 5,000-lb-capacity forklifts from competing brands will have similar specifications. Knowing what your facility will accommodate and comparing that with each model will give you insight into how each model will perform, given your operating parameters. Factors include: aisle width vs. turn radius, draw bar pull, suspension and ergonomics compared to your floor condition, indoor/outdoor use and ceiling height/rack height vs. max lift height. You will also want to compare features between brands to ensure that each lift truck model is equipped with the proper components to meet your operational requirements. For example: Can it operate properly inside your ice cream freezer?

Ergonomics – A comfortable and smooth-running piece of equipment will provide you with increased productivity. These are costs hidden in equipment that are quite real in daily operating conditions. How much time and research and development, does each brand put into the comfort and ease of use of their equipment? Happy, comfortable operators are simply more productive.

Safety – Never underestimate the safety features of your equipment. What equipment is being specified and what equipment is optional from each manufacturer is very important to know.  Reducing your accident costs or product/facility damage can make a big difference in your total fleet operational expenses.

Useful Life – Finally, how many hours can you expect from each piece of equipment until the cost to operate becomes cost-prohibitive? This can vary widely depending upon brand and model. But having some qualitative and quantitative information on hand, if possible, will help you make a better decision about the total cost of operating each unit/model.

There are many factors beyond price tag or lease rate that can help you make good decisions about the equipment you purchase. Having a partner that listens, evaluates and fulfills your needs is essential in building a fleet that is most productive and less costly in the long run. Contact us at 800-322-5438 to speak to one of our material handling professionals about the right material handling equipment for your operation.