 Dennis Lawrence |
By Roger RenstromClark Material Handling Co is rebounding under the ownership of Young An Hat Company Ltd (YAHC).
Longtime YAHC executive Dennis Lawrence guides the Clark management team in Lexington as president and CEO, and the once-troubled Clark brand appears to be regaining lustre. It now has an annual manufacturing capacity of 25,000 units.
Clark invented the first materials handling truck in 1917, produced its one millionth forklift in 1997 and is observing its ninth decade in the business.
Clark manufactures electric and internal combustion forklifts, narrow aisle forklifts, electric pallet jacks and electric tuggers at factories in Changwon, South Korea; Oingdao, China; and Lexington, USA. Changwon and Qingdao run mixed lines, and each site can make 12,000 units a year. In May 2006, Clark re-established a Lexington manufacturing operation that has annual production capacity of 1,000 units.
Lawrence, and his "cohesive, user-friendly" team of eight managers, focuses on filling uncovered territories, working with underperforming dealers and targeting continuous improvement.
At ProMat 2007, the firm showed its C60 internal combustion pneumatic-tyred forklift. Clark began C60 development in May 2005. Deliveries of the C60 and larger models C70 and C80 started in Asia in November, begin in Europe this month and should reach North America in May or June. Lifting capacities for the three models range from 13,500lbs to 18,000lbs (6,000kg-8,000kg).
Clark is updating its class 3 product line, converting successful HWD and PWD lines to AC technology for a re-launch, probably in June. Clark also expects to release a new electric stand-up counterbalanced (ESX) rider during 2007's third quarter.
Clark is invigorating its dealer of excellence program and making efforts with dealers to demonstrate Clark's flexibility and even-handed approach to doing business. Lawrence said there were indications dealers had noticed the difference.
Clark employs about 1,000 staff globally, including 160 in the US.
More than 265,000 Clark forklifts operate in North America and another 125,000 on other continents.
The business has experienced major changes.
In July 1992, Terex Corp, of Westport, Connecticut, USA, acquired Clark for USD91.1 million, consolidated many facilities and implemented cost reductions. In a November 1996 leveraged buyout, senior Clark managers and Citicorp Venture Capital Ltd bought the business for USD139.5 million.
Clark grew and, in South Korea, acquired Samsung Forklift Co in 1998 and built the 312,000 square foot (28,000 square metre) Changwon factory.
In April 2000, Clark filed for protection from creditors under Chapter 11 of the US Bankruptcy Code, listing USD349 million in assets and USD374 million in debts.
In January 2003, as the successful bidder in a bankruptcy court auction, YAHC, of Buchsan, South Korea, acquired Clark's assets for USD7.5 million and assumed obligations for about USD10 million in debt. Sung Hak Baik established YAHC in 1959 and conducts business under a guiding principle of charitably giving back to society. YAHC managers seek to "build the business for our children's children and not build for today", Lawrence said.
In addition to forklifts, YAHC, a major global headware manufacturer, has other core interests in bus production and telecommunications.
"The bankruptcy is an important critical part of our past and future," Lawrence said. "We need to do things differently now."
YAHC invests in Clark operations, technologies and market visibility. YAHC's Clark Material Handling International unit, in Bucheon, South Korea, oversees Clark operations in North America, Europe, South America and Asia.
"It has been more than 20 years since we have been at the (ProMat) show," Lawrence said. "We were the leader in the industry at one time. It was not good that we disappeared."
In mid-December, Lawrence convened a cross section of dealers as a Clark advisory group. Many also sell competing brands.
In a "firm and fair" discussion, Lawrence shared order rates across the dealer network. The numbers made it clear a segment of dealers was actively selling Clark units, but another was not. "The numbers stunned dealers" at the Lexington meeting, he said. "We must have engaged dealers selling our product. We take a deliberate approach and are not heavy handed" in working with dealers.
Globally, Clark has 520 authorised dealer locations, including more than 213 North American sites, operated by 76 dealers in the US, five in Mexico and four in Canada. "Those numbers can change daily," Lawrence said.
Lawrence grew up in Montreal, Canada, worked in the transport industry for six years and joined YAHC in 1982. He has held a series of progressively more responsible operations, sales and marketing positions with YAHC affiliates. They are AJM International Ltd, in Montreal and Vancouver, Canada; Team Leader Inc, in Dallas, Texas, USA; Drew Pearson International, in Dallas; Outdoor Cap Inc, in Bentonville, Arkansas, USA; and, since June 2005, Clark Material Handling.
Lawrence, 47, and his wife, Ninon, have three daughters, Ashley, Emily and Kayla.
Among his interests, Lawrence collects model aircraft of all sizes and types.
Lawrence says he wants to make a difference for Clark in the materials handling industry.
He plans a party in Lexington in May to celebrate the 90th anniversary of the first forklift- a Clark. "We will invite dealers and select customers," Lawrence said.