Ask the Expert

July 19, 2010

Signs of economic recovery are all around us.  Even though times are changing, the majority of BC companies are still recovering from what was certainly the most difficult economic time since the Great Depression.  A bigger focus has been placed on conserving capital resources while maximizing employee productivity.  Although economic conditions have improved, many companies are still conducting a critical review of their expenses, with a considerable focus on how to minimize operating costs while supporting employee morale.

If you’re considering replacing or upgrading your current fleet of lift trucks, you should definitely consider a long term rental solution.  Here are just a few of the benefits of fleet management:

Conserves cash: One flat monthly fee covers equipment and maintenance.  You can simply treat the monthly cost as an expense with no capital investment required.  This also eliminates the risk of price increases and unexpected repair bills, reducing the cost of using a lift truck considerably!

Better “People” Solution: A long term rental solution saves valuable administrative time in issuing P.O.’s and processing invoices every month.  Also, employee productivity can be maximized by using newer equipment and eliminating the need to have back-up units on site.    

Flexibility:  The equipment rental program can be tailored specifically to your needs.  The solution will allow you to consolidate your fleet and eliminate unnecessary infrastructure, considerably reducing your expenses.  Also, long-term rental solutions provide favourable tax benefits!

Long term rental solutions help you evaluate and manage the total cost of ownership for your fleet of lift trucks.  Learn more about our fleet management solutions here.

Jun 8, 2010

By Don Pollard
Parts Control and Inventory Specialist

The need of a major repair often leaves us in a difficult situation. For many people, making the choice between a rebuilt or a remanufactured part is really confusing. Here are some basic differences:

Rebuilt

A rebuilt is a product where a previously failed unit is used to create a rebuilt version. While the unit is most often completely disassembled and cleaned, in many cases only the parts that fail testing may be replaced, or common wear items. Most items included in the rebuild are not new, yet often the product is re-painted to appear “like” a new or remanufactured starter, which can be quite deceiving. Quality of rebuilds can vary between rebuilders as many are done in smaller shop environments instead of a standardized factory setting.  Ultimately a rebuilder is seeking only to replace the minimum required parts to pass their own quality control testing which may or may not be the same as the OEM specifications. Generally you are asked to return your old core so they can rebuild your part for another person, and you are charged for this core until you return it. This is a common, cost effective way of getting a starter that has been rebuilt in and that passes only minimum testing. Also, the product you receive may not be identical to the one you require. You may be trading in a heavy duty sealed starter and wind up with a can-use automotive, unsealed standard duty item. It will most likely work and fit alright, but rate of failure is higher than NEW or OEM products. In order to get max application coverage with as few items on the shelf as possible, the supplier will only carry the “can use” or “may fit” parts. Usually these will come with an attractive “no hassle” parts warranty to help backup and sell the product, which by nature is going to be more prone to failure. There is a higher chance you may wind up having to replace the same item again, if one of the components that “passed” minimal testing during rebuilding later fails.

Remanufactured

This is an entirely different process in which worn products are restored to like-new condition. This is done in a factory environment where a core, used, or discarded product is completely disassembled. All useable parts are cleaned, refurbished, and put into an inventory. A new product is then assembled from these parts using new, and even updated parts for all wearing components. Often only the basic frame-type items or shell are reused. This produces a unit equivalent and sometimes superior in performance and expected lifetime to the original OEM product. Someone not wanting to sacrifice quality in a more cost effective solution to the OEM or new version should consider this. Cost savings will not be enormous, but quality is not compromised. These products are unlikely to fail again within their expected lifetime, and will be backed with a reasonable parts warranty. Again care should be taken to ensure you are receiving the identical product, especially if yours is a heavy duty or contaminated type environment.

It is clear that the situation depends upon your requirement and what money you can spend on your equipment. The bottom line is that these options are cost-effective alternatives to buying new parts, but keep in mind that every situation is different. Sometimes better options are costly but can be well worth it.

May 26, 2010

By Doug Westlake
Manager – Rentals & Operator Training

During these trying economic times certain cost cutting measures need to be evaluated to ensure a positive bottom line. One measure that seems to come up is whether or not to train forklift operators. Although training can be time consuming and costly, there are many benefits that help not only individual employees, but also the company as a whole.

When trying to decide whether to train, forget the fact that it is the law in British Columbia. If there is an injury or, even worse a fatality, and the operator is not properly trained, WorkSafeBC can hold the company to full liability with costs so high it would devastate many businesses. 70% of all compensable injury claims are directly or indirectly related to the absence of training or improper training. The cost to train your operators today is very small compared to the possible hidden costs that come with not training them.

A good training program produces knowledgeable, confident operators, reduces workplace accidents and leads to more productivity on the job. In addition, more efficient operators can lower your operating costs. That’s because skilled operators are less prone to accidents that cause injuries and damage property. Without proper instruction your assets can be depreciated from untrained operators.

Properly trained, safe and productive forklift operators can lift a company’s credibility and good name. Training shows your operators that their safety and longevity is extremely important which increases employee morale.

So, to train or not to train? It’s easy to see! The small upfront cost of proper training far outweighs the highly variable cost that is associated with not training.