Just trying to get some feedback about economic conditions across the country. I know the media is playing up the "recession" but I wanted some feedback from people that actually beat the streets and managers, etc.
My area: PA. It's been slowing a little. I can still get 40 hours no problem and have a backlog myself of about 1 to 1 1/2 weeks compared to about 2 to 3 week backlog just a couple months ago. My customers have been admitting that they are slowing, some more than others. I'm not really sure if it's the election year slowing things, the indecision of the Democratic Party to name a candidate, the fuel prices, commodity prices or just weather.
What has everyone else been noticing? Thanks in advance.
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For us I would say that electric truck sales are down a little - about 25 - 30% of our total sales. In a down economy electric trucks are the 1st to suffer from a resale stand point & the rising costs of batteries right now is probably playing a big factor as well. I think late model low hour electrics will still re-sell but typically at a lower price & demand then comparable IC trucks.
Cory H: I was wondering if you have noticed an change in sales for IC vs. Electric trucks in the last year?
Florida has been one of the worst hit states by the economy. Really bad in Central Florida where there are only two types of customers. Building trade and distribution to the tourists. Well with no houses getting built and less tourists because gas is so expensive and unemployment so high, it's killing us.
I personally have been laid off twice since last September and I am at the management level. I had 23 techs at one dealership who is now down to 9, I had 18 at the next and they are at 6 and the dealership I am currently the service manager at had 18 and now has 7. (my previous two employers do not even have service managers currently) Service business is off 50 to 55 percent and parts 35 to 40 percent, which indicates a few customers have taken on the challenge of trying to do repairs on their own.
Road work right now for 6 guys is barely enough for them to get 35-40 hours and the shop is very hit and miss. I have friends at almost every major dealer in town and we are all suffering the same fate right now.
Other areas in the state where there are shipping ports have it a little better but not much. It's been very ugly in Central Florida now for a little over two years. Hopefully it breaks soon.
I work for the countries largest forklift wholesaler, Atlas International in Chicago, so I have the unique experience of dealing nationwide with the different markets. Before August we where having a record year and since our business has been off about 15 to 20%. It could be better but it is certainly could be a lot worse. I think we are finding the farming markets are booming this year as well as anything to do with fuel (oil, natural gas, etc) but certainly not exclusive to those areas. The automotive states, Indiana, Michigan & Ohio have been off for a couple of years and seem to be struggling more so now and the East does seem to be down a little as well. As far as we are concerned activity is fine & quotes are not dramatically down but is just a little harder and takes a little more effort to get the order. The beauty of this business is that we are not dealing with a luxury item - if you need to move something you don't have much of a choice & if it breaks...........you either fix it or you replace it.
Hope this helps to relieve a little of the fear the media pushes on us everyday - at least for our industry. If any one has any specific questions I would be glad to share what I know.
Cory Hadaway - Atlas International Lift Trucks
economy here in DC area is rebounding some. House prices are still falling which if you are buying here is good (prices were insane to start with) If you own a home of course value is dropping. New job growth is strong now. Hopefully this is an indicator for the rest of the country.
Well it finaly made it sevral not getting but 30 to 35 hrs wekly.So far Im still getting my 40.And they hured a new guy Whats up with that?well election is close ride it out and see.
I am from Central PA and have noticed since my first post that the economy seems to have leveled off to a steady pace. Not super busy like last year but steady. I think that has a lot to do with the fact that oil has seemed to finally find a peak and has started a slide backward into more reasonable territory. It's hard to budget for new equipment when you have no idea what fuel will cost tomorrow.
Batman, What part of PA are you from and have you seen a diffrence in the economy since your first post?
In our sector, sideloaders and specialized equipment, things have slowed only slightly in new equipment sales but rebuild work has gone up. I guess when you need the equipment it comes down to 125k for new or 80k to rebuild what you have. All in all we are holding steady across the US.
The work has been clustered around hubs or in similar work areas (Hi tech corridors, distribution areas, automotive areas). The only new work is 'swiped' from other service companies. Very few new businesses opening/starting, with more shutting down and moving to Mexico.
I get all the overtime I want,But I dont want much.I see 40 to 45 hr weekly.Not counting checking on stuff.Customers here are downsizeing but they still want trucks running.Make them run but thats to high,what you going to do?People are griping about gas prices but driving suvs and saying it get as good a mile as a honda yea right.Ive owned both cant fool me.I think after the election itll start to pick up like normal.We do have to do something about climbing fuel use.If we all drive 10 mile to the galon trucks fuel prices will rise.
reply to JonG;
And to think we in the North East were under the impression that things were booming in the south. I've lost quite a few major customers who moved to the Carolina's. Although most talk was to North Carolina. Is there that much difference between the 2 states?
I decided to get out of the forklift business working for a dealer in November here in SC. I saw the customers already switching in the repair ideals (fix it to quote), plants going into slow down or shutting, coupled with the decisions (at the customers) going from business sound to only the cheapest. Our work week was shrinking rapidly from wide open, work what you want (typically 50+ hrs a week) too trying to find 40. Couple this with the upper managements decision to keep adding techs, bill them out - even if they are not trained (so they get the gravy work), made me decide that it was time to change companies (though still in the repair world.
Just for the record, I don't like working only 40 hours per week. My normal week is between 50 and 60 hours but I can see the slow down so I don't want to work myself out of work, if you know what I mean.
As far as the fuel surcharge, eventually you HAVE to add a surcharge to cover the rising fuel costs. No way around it. I average about $150 to $180 per week in my van. It's crazy now and it will only get worse as the year progresses.
Something I didn't know: Summer gas costs more to refine than winter gas because there are stricter regulations on the refineries to "clean up" summer gas because more people drive during the summer. The refineries are now in change over mode, switching everything over to summer gas production from winter gas production. I thought the prices went up in the summer because we use more gas. (you know, supply and demand) Amazing what you can learn with a little research and without listening to the tripe the media spews at you.
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