New Forklifts in Southern California

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  • Safety features are outdated and cannot be updated properly.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

Section 179 Renewed for 2017

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Jan 1, 2017 –   Section 179 is still affected by the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) that was signed into law on 12/18/2015. This bill expanded the Section 179 deduction limit to $500,000, where it will remain for all of 2017. For those interested, you may read the summary from the Ways and Means committee here.

Section 179 Deduction: Until further notice, Section 179 will be permanent at the $500,000 level. Businesses exceeding a total of $2 million of purchases in qualifying equipment have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years.

50% Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.

IMPORTANT THIS YEAR: Section 179 for Current 2017 Tax Year
Section 179 can provide you with significant tax relief for this 2017 tax year, but equipment and software must be financed and in place by midnight December 31, 2017. Use this 2017 Section 179 Calculator to see how much the Section 179 tax deduction can save your company.

2016 Section 179 Tax Information (Last Year)

The PATH ACT passed in December of 2015 affected 2016 and beyond, making the Section 179 deduction for 2016 $500,000. In addition, the 50% Bonus Depreciation was reinstated.
Click Here for the fully updated Section 179 Calculator for tax year 2016 (Last Year).

Answers to the Three Most Common Section 179 Questions

How Much Can I Save on My Taxes in 2017?
It depends on the amount of qualifying equipment and software that you purchase and put into use. See the handy Section 179 Calculator that’s fully updated for 2017, and includes any/all increases from any future legislation.

What Sort of Equipment Qualifies in 2017?
Most tangible business equipment qualifies. Click here for qualifying property.

When Do I Have to Do This By?
Section 179 for 2017 expires midnight, 12/31/2017. If you wish to deduct the full price of your equipment from your 2017 taxes and take advantage of the new higher deduction limits, it must be purchased and put into service by then.

Many businesses are finding Section 179 Qualified Financing to be an attractive option in 2017, especially since the expected Federal Discount Rate increases don’t leave much time for action. Please apply today.

More Section 179 Deduction Questions Answered

Welcome to Section179.Org, your definitive resource for all things Section 179. We’ve brought together a large amount of information regarding Section 179, and clearly and honestly discuss the various aspects of IRS §179 in plain language. This will allow you to make the best possible financial decisions for your company.

Section 179 can be extremely profitable to you, so it is to your benefit to learn as much as possible. To begin, you may have a lot of questions regarding Section 179 such as:

We’ll answer all of these questions, and make certain that you come away with all of the knowledge you need to make smart business decisions in this 2017 tax year regarding equipment and/or software purchasing and Section 179.

Why? Because if you’ve been thinking about buying or leasing new equipment and/or software, it’s definitely to your advantage to use this excellent tax break.

Successful businesses take advantage of legal tax incentives to help lower their operating costs. The Section 179 Deduction is a tax incentive that is easy to use, and gives businesses an incentive to invest in themselves by adding capital equipment. In short, taking advantage of the Section 179 Deduction will help your business keep more capital, while also getting needed equipment, vehicles, and software.

Free Tools that Make Calculating Section 179 Deductions Simple

Section 179 is really very simple. You buy, finance or lease qualifying equipment and/or software, and then take a full tax deduction on it this year (also, there are a few other things, which we’ll go over, but in a nutshell, that’s the idea). To give you an estimate of how much money you can save, here’s a Section 179 Deduction Calculator to make computing Section 179 deductions simple.

If you use the calculator, take note of the savings on your tax obligation. Many people find that, if they lease or finance their Section 179 qualified equipment, the tax savings actually exceed the first year’s payments on the equipment (making buying equipment profitable for the current tax year). This is perfectly legal, and a good example of the incentive that Section 179 provides small and medium businesses.

Visit our website to learn more about our line-up of new material handling equipment, including:

Cal-Lift is your source in Southern California for quality material handling equipment, service, parts and rentals. Visit our website to learn more. Then contact us for a quote at 800-322-5438.

 

Four Reasons to Consider Electric Forklifts

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Slowly but surely, electric forklifts are carrying more of the daily material handling load. Some of the reasons are obvious, but it is clear to most that eventually we must do more than continue to burn fossil fuels in the transportation of our products.

We still have a ways to go before electric forklifts can perform all the tasks as well as their LP forklift counterparts. However, most forklift manufacturers are improving performance and outdoor durability with each passing year. It is only a matter of time before they catch up.  There a good reasons for this transfer of power, a few major reasons are:

  1. Reduced maintenance costs – Electric forklifts have fewer moving parts than their internal combustion counterparts. Fewer parts, means reduced maintenance, which results in a considerable reduction in maintenance.
  2. Greatly reduced environmental impact – Electric forklift do not burn fossil fuels, reducing carbon footprint. They also require no disposal of motor oils. The units stay cleaner as a result and so does your operation!
  3. Improved ergonomics and working environment – Electric forklifts are quieter with nearly no vibrations to deal with. This provides a more comfortable operating atmosphere for your forklift operators as well as the rest of the personnel that work around your lift trucks. Noise in your facility is reduced to almost zero when it comes to your lift trucks, making communications between employees easier.
  4. Supply chain trends to go green – Every year, more and more companies are encouraging if not outright requiring their suppliers to improve their impact on the environment and electric forklifts are one of the major steps that companies are taking to do so.

While we have some work to do, it’s pretty clear that electric forklifts are making great strides to become a mainstay in materials handling equipment. And right now with the introduction of Lithium Ion Batteries in our BYD Forklift line-up and Section 179 tax deductions, there has never been a better time to consider trading in your internal combustion forklifts for a smooth running, cost saving electric powered lift truck.

To learn more about electric lift trucks and what they can mean to your operation, please contact us at 800-322-LIFT.