Examining Applications to Settle the Question to Lease vs. Purchase a Lift Truck

As the economy continues to recover, owners and managers of warehouses and distribution centers may be increasingly considering the acquisition of new equipment to replace outdated technologies or meet increased demand. As a result, they also may be considering lift truck leases to obtain this new equipment.

A lease can make sense for many reasons — it offers a fixed equipment cost, helps companies acquire newer technologies and may provide tax advantages. Leasing companies also may offer more flexible credit requirements than banks in a tight credit market. However, companies should take steps to ensure the lease agreement they enter meets their operational requirements.

Considerations

Leases can be varied to meet a company’s specific needs for equipment use — including different lengths of time and lease-to-own. For example, a capital lease offers ownership benefits without large cash flow for new or used equipment. A fair market value (FMV) or true lease, where the tax benefits of ownership are retained by the leasing company, enables companies to return the equipment, extend the lease or buy the equipment at its fair market value at the end of the lease.

Before investigating a lease for lift trucks, facility owners and managers should examine their operations thoroughly and evaluate how their current fleet of lift trucks is being used and how new units would be integrated. Presenting those findings to a trusted lift truck dealer can help determine which type of lease makes the most sense — or whether a lease is even the best option. The dealer also can help companies evaluate their applications and lift truck usage, and may be able to suggest different options for the mix of lift trucks in a fleet to aid cost-efficiency and productivity.

A facility with good information about its equipment utilization can typically forecast the useful life cycle of a lift truck, making it a good lease candidate because it can spread out equipment cost over the lease term. Plus, a lease extension option can provide flexibility if business conditions or utilization changes, and further use of a lift truck is required at the end of its lease; if not, it can be rotated out of service.

But facilities with infrequent utilization, where a lift truck could remain idle for periods of time, may be better-suited for a longer term lease or equipment purchase. Companies with infrequent use typically can extend the life of a lift truck beyond what would be cost-efficient in a heavy-use facility.

Above all, it is important for warehouse or distribution center owners and managers to be as specific as possible about their facilities’ needs prior to meeting with a lift truck dealer about leasing. This should include discussing the applications for which lift trucks are used, as well as how often they are used and for what length of time. Taking the extra step of surveying both the facility and lift truck fleet will help better define equipment needs and avoid vagueness or nebulous requests during lease discussions that won’t result in a lease that meets the company’s needs. By being thorough and determining what is needed, a facility manager is in a better position to obtain the equipment — and the lease or purchase option — that will best suit a company’s applications.

 

 

 

 

PTDA Business Index Reveals A Positive Outlook For 2011

According to the third quarter results of the Quarterly Business Index released by the Power Transmission Distributors Association (PTDA), PTDA members are projecting 10 percent growth on top of the 14 percent average growth expectation for 2010. In the third quarter, respondents experienced expansion, albeit at a slightly reduced rate than the second quarter. The overall reading for the third quarter was 74.6, compared to 77.0 in the second quarter. A reading above 50 indicates expansion. A comparative review of distributor and manufacturer results show that manufacturing expanded at a faster pace than distribution, with a reading of 76.6 for manufacturers vs. 71.2 for distributors.

The PTDA Business Index is available at no charge through the PTDA website at www.ptda.org/Index. The full report includes U.S. and Canadian breakout data. Conducted jointly by PTDA and Cleveland Research Company, the PTDA Quarterly Business Index was modeled after the widely respected Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC market to arrive at an overall index.

 

Gasco Introduces A Precision Gas Cylinder

Gasco Affiliates, LLC, is enhancing calibration gas delivery with the launch of the 44, a standard 34-liter cylinder containing 44 liters of precision calibration gas. The new 44 features 29 percent more gas than the traditional 34-liter unit, reducing the cost per liter while also extending the life cycle of a standard 34-liter cylinder.  

Gasco uses exclusively designed, reinforced, 34-liter aluminum alloy cylinders and applies its proprietary manufacturing process to safely and effectively increase the gas pressure. This process enables the standard 34-liter cylinder to hold 10 additional liters of calibration gas. The 44 holds both pure gases and gas mixtures and is approved for safe transport by the Department of Transportation.

 

Cheetah Software Integrates CoPilot Live v8 GPS Navigation Software

Cheetah Software Systems Inc. announced a plug-in solution utilizing ALK Technologies' CoPilot Live v8 turn-by-turn GPS navigation software. Matching Cheetah's industry-leading dynamic routing and dispatch optimization with CoPilot Live's clear, uncluttered 2D and 3D map guidance displays with detailed spoken directions increases safety and efficiency for today's delivery and freight carriers. For years, Cheetah has helped transportation and logistics companies move more goods with fewer miles driven, less fuel consumed, and reduced overhead. Cheetah customers benefit from the only integrated customer workflow and logistics solution proven to intelligently automate and optimize routing, dispatch, and customer service with dynamic, real-time capabilities. Now, Cheetah can integrate CoPilot Live's superior navigation services, including the following benefits:

• Detailed voice instruction using Text-to-Speech technology to pronounce full street names
• Clear 2D, 3D and Driver Safety views with route highlighted clearly and a turn arrow to indicate which way to go at junctions
• Multi-stop trip planning to enter up to 50 stops or waypoints
• Multiple destination entry options including address, intersection, favorite, recent, POIs and Pick on a Map

 

Ditch Witch Under New Ownership

The Ditch Witch organization announced that the assets of the Ditch Witch of Tennessee dealership have been purchased by RJV Equipment, LLC under the ownership of Ray Romano.

Ditch Witch of Tennessee covers middle and eastern Tennessee, as well as several counties in southwest Virginia. There are two dealership locations (La Vergne and Louisville) that have served this region since the 1960s providing sales, service, and parts for the entire Ditch Witch product line. They also offer rental of new and used equipment. The company provides a complete range of high-quality underground construction equipment. 

Ray Romano became the Ditch Witch dealer effective Sept. 1, 2010, and will serve as owner and CEO. The new owner will be responsible for all aspects of managing and operating the company on a day-to-day basis. Romano is no stranger to the construction equipment business having 35 years of experience via Caterpillar dealers and Caterpillar Inc..

Romano attended the University of Massachusetts and Oregon State University before beginning his experience in the CAT world. He began in the parts department for Milton CAT in New Hampshire from 1975. After 15 years of sales and sales management experience with Milton CAT he took Sales, Rental and Used Equipment responsibility for HO Penn Machinery, the dealer in the southern region of his home state of New York. In 1995 when CAT was looking to establish a worldwide used equipment organization for dealers they called on Romano to start up Caterpillar Redistribution Services Inc., a wholly owned subsidiary in Nashville, Tenn. In 1999 Ray assisted the venture capital start-up of IronPlanet (online equipment auctions) before getting the call in 2000 to CEO WesTrac, the dealer in Sydney Australia. During his time in Sydney, Romano was asked to also manage the development of WesTrac China, their new territory in Beijing and northeast China. In 2008, as part of WesTrac's long-term rental strategy, Ray was asked to be interim CEO of Coates Hire, the largest rental company in Australia, which WesTrac acquired with the Carlyle Group. In March of 2010 Ray returned to the states with his wife, Joanne and Australian born son, Vincent.

 

JLG Wins Gold and Silver Awards

 JLG Industries, Inc. announced that the G12-55A Telehandler won the Gold and the 1350SJP Boom Lift with Skywelder took home Silver in the Contractor's Choice Awards given by Roads & Bridges magazine. Winners were announced in the July 2010 issue of the publication, and awards were presented at the opening reception for Roads & Bridges Live, held on Oct. 12, 2010. The JLG G12-55A Telehandler features a 12,000-pound carrying capacity and up to 55-feet lift height. With a spacious cab that delivers added comfort and reduces operator fatigue, the G12-55A provides all-wheel steering for easier maneuverability. The G12-55A offers a full range of versatile attachments that assist in various jobsite challenges, and features power shift transmission, which provides efficient control. 

The JLG 1350SJP Boom Lift can take operators from the ground to 135-feet in 95 seconds. With strong 100,000-psi steel and dual 1,000 / 500-pound capacity, the 1350SJP delivers the height and capacity workers need to complete jobs quickly and efficiently.

In their fifth year, the annual Contractor's Choice Awards invite the contractor audience to vote and pick the best equipment available on the jobsite. Manufacturers have the opportunity to submit nominations in 34 different product categories. The nominations are routed through an independent group of judges, and then contractors are given the chance to vote for what they view as the best product. The top three winners in each category receive either a gold, silver or bronze award.

 

 

Sunbelt Rentals Enhances New & Used Equipment Purchasing Options

Sunbelt Rentals announced it has added new financing and equipment warranty options. New and used equipment financing will be offered through an exclusive agreement with Star Capital Group.

In addition to retail financing, Sunbelt Rentals offers customers two warranty levels through the SPF Advantage warranty program. SPF 90 provides protection for 90 days or 250 hours and SPF 180 provides protection for 180 days or 500 hours. Each program is offered on select units and covers certain parts on the engine, transmission, differential and drive line.