Industrial Trucks and the US Economy

Industrial trucks and forklifts sales are directly tied to our economy. When our economy does well, more forklifts are required to move the goods ordered by customers and end-users. Conversely, when a downturn occurs, forklift sales drop, sometimes dramatically as they did with the recession of 2009. What few people understood until now, the economic impact these forklifts make on our economy. Recently the Industrial Truck Association in conjunction with Oxford Economics researched the topic, and below are some of the significant findings.

  • Industrial truck manufactures generate 209,600 jobs in the US, directly and indirectly.
  • The economic impact of forklift on the US economy is $25.7 billion dollars. Here in California forklifts generate over $1.9 billion dollars to our state economy.
  • Over $15 billion of that contribution is a result jobs that support forklift sales and service such as service technicians, the parts that are made and sold and installed on forklifts, training centers etc…
  • The Bureau of Labor and Statistic (BLS) estimates that there are about 540,000 industrial truck operators in the US.
  • There are over 200,000 forklifts sold annually in the US.
  • Over 1 million forklifts are sold around the world each year.
  • The industrial truck industry generate about $5.3 billion dollars in state and local taxes.

As you can see, when we sell a forklift we create a lot of work not only here at Cal-Lift, but for our customers, their customers and the impact is felt all throughout our state and national economy.

Report – Industrial Trucks Impact on US Economy

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Forklift Safety Day 2017

The Industrial Truck Association has announced it’s second annual Forklift Safety Day, to be held Tuesday, June 13.

While most of you won’t be able to attend, there are things you can do to take advantage of this day to help create awareness about the dangers that forklifts present and how to minimize the potential for accidents that can result in injury or death, damage to your facility, equipment and financial losses.

We’ve compiled a short list of things you can do on June 13th to improve safety on and around your forklifts.

  1. Make sure all your forklift operators have been trained and that their refresher training is up to date, if applicable or necessary.
  2. Take time to teach your forklift operators the importance of daily inspections of their forklifts. Daily inspections reduce the risk of equipment failure and catch small problems before they blossom into giant ones.
  3. Take some time to gather any staff that operates around forklifts, but not on them, to refresh them about the dangers of this equipment and how to be sure to use safe procedures when they are in an area of your facility where forklifts are being operated.
  4. Make sure all your forklift’s maintenance is up to date. If you have a Planned Maintenance Agreement, this would be a good time to review it with your service provider to ensure all standard checkpoints as well as unique equipment attachments are being inspected and maintained properly.
  5. Review any unique “site specific” features your facility may have and be sure your operators are aware of proper handling of equipment while on or around these features (ramps, areas where floors can be slick, floor substrates that vary etc…)
  6. Make sure that training is part of your company’s orientation for anyone that will or MIGHT operate a forklift. Remember, employees that have not been properly trained aren’t even allowed to sit on and start a forklift, much less move it out of the way of anything.
  7. Make sure you forklifts have proper safety equipment and that it’s operating properly. Lights, horns, back-up alarms, seat belts, fire extinguishers etc…
  8. Make sure you have lock-out kits to ensure that forklifts that do not pass an inspection are locked out immediately until repairs are made.
  9. Review all your forklifts for possible replacement. Old forklifts, or those that are getting “up there” in hours, might be potential threats. Review safety records and maintenance logs for your equipment. You might find this could be a good time to replace some or even all of your forklifts.-

Our goal is to help you operate safe, efficient and productive forklift equipment. Any questions about operating a safe forklift fleet, or to get a quote on new equipment, please Contact Us or give us a call at 800-322-5438.

Cal-Lift Helps Daylight Transport “Go Green” with BYD Forklifts

Daylight FacilityCal-Lift has entered into an agreement with Daylight Transport to provide the first fleet of
BYD forklifts that include revolutionary, maintenance free, Iron-Phosphate (Fe) battery technology.  By using the world’s safest, most environmentally friendly batteries, Daylight Transport will eliminate all the hazards and liabilities associated with toxic lead-acid batteries and increase productivity and operational savings.

Using the BYD forklifts will enable Daylight Transport to meet their goal of having a 100 percent green terminal.  Cal-Lift has provided material handling solutions to Southern California since 1964 and sees BYD forklift as being the future of green technology.

When Daylight opened its new Fontana distribution facility, their goal was to minimize the carbon footprint and they’ve all but eliminated it. The 57,300 sq. ft. derives 85% of its energy requirements from a 600KW solar system mounted to the roof of the building (see photo). Motion sensors and energy efficient lighting help reduce consumption, as does the new fleet of 40 BYD  3, and 4-wheel electric forklifts, supplied by Cal-Lift.

We are proud to be part of Daylight Transport’s efforts to go green, minimize its impact on the Earth and provide them with forklifts that help them achieve these energy goals.

Learn more about BYD forklifts, then contact us at 800-322-5438 for a demo and a quote.

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Mark Maechling, President, Cal-Lift at Daylight Transports Fontana Distribution Facility

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Mike Marrs, Vice President, Cal-Lift at Daylight Transports Fontana Distribution Facility

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.

 

CLARK Announces New Ford Engine for GEN2 Model Forklifts

CLARK introduces the FORD 2.5 Liter LPG Engine for GEN2 Models C20C-C32C and C20-C35 Lift Trucks

Features & Benefits

Balanced Engine

  • Removes vibration from the engine and gives the operator a more comfortable ride, smoother operation

Cast Aluminum Block and Cylinder Heads

  • Lighter engine with better heat dissipation for improved fuel efficiency and longevity

4-Cylinder Dual Overhead Cam Design

  • Four valves per cylinder for optimal fuel and exhaust management

Variable Valve Timing

  • Changes the intake valve timing throughout the RPM range for improved efficiency

Sequential Multi-Port Fuel Injection

  • Even fuel distribution improves throttle response and cold starts

Pent Roof Combustion Chamber

  • Improves volumetric efficiency and fuel mixture, increasing the scavenging efficiency during the exhaust stroke

9.7;1 Compression Ratio

  • Higher compression ration=increased power (HP; 65 @ 2500 RPM, Torque: 135 ft-lbs @ 1800 RPM)

In-Dash Engine Diagnostics

  • Operator can access fault codes directly through on-board dash

Timing Chain-Driven Camshaft

  • No belts to adjust or replace

Automatic Belt Tensioner

  • Less required maintenance

Reverse Flow Cooling

  • Locates thermostat at the front-end of the cooling system and divides the flow evenly over the head and block, maintaining even temperatures and minimizing the thermal shock to the engine

Extended Maintenance Intervals up to 500 Hours (with CLARK-approved engine oil)

  • Lower cost of operation

Visit our CLARK GEN2 Forklift Cushion Tire Line-up Showroom

Visit our CLARK GEN2 Forklift Pneumatic Tire Line-up Showroom

Purchase Price vs. Total Ownership Cost

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.