Nasdaq announced today that Hyster yale are to buy bolzoni attachments. But is really such a good deal or will it add to the pressure on hyster Yale, in the short term it might look like a good deal but in the longer term this will hurt Hyster yale for a couple of reasons. The first it will add the Hyster Yale manufacturing cost base the second many companies now wont buy Bolzoni attachments because it will help increase Hyster yale turnover.
If you look at the worlds top two value companies Google and Apple they don't manufacture products they both design platforms. Apple designs the platform for the iPhone, iPad, iWatch but these are maunfactured by companies like Foxconn in Asia. Google designes plafoms Like the Android and chrome and the search engine with other products. these companies create value by concentrating on core products , when apple produce printers they nearly went bankrupt. Now they just basically design products that fit people life style.
So Hyster Yale increasing its cost base will hurt the company over time, Companies in this market will slowly find out that they can make better products and therefore stronger products by just concentrating on a small number of core products these will be assembled in smaller more local assembly lines not large high cost manufacturing plants like today's manufactures. They will be able to lower costs and be more flexible to customers needs.
Companies like this will be the Googles and Apples of our industry not the old style companies that will struggle with higher cost bases.
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Its all getting exciting but what about Hyster Yale buying Bolzoni?
Thanks Gents, we have strayed far away from the discussion topic. Can we return to that please.
Steve61 new profile to defend Dave/exalt?? For a long time now we have had Dave/exalt bad mouthing Linde and bigging up he's new (invisible??) trucks. Exalt I read your blog on my Capitol is your 2015 hire fleet the size you said it would be?? 1200 units?? Or is the first one still on the drawing board??. I've nothing against new companies starting up competition is great but all you seem to do Dave/exalt is bad mouth Linde
Maybe the net worth change had something to do with NACCO spin off the material handling subsidiary (Hyster-Yale) in 2012 - here you can read all about it. http://www dot nacco.com/ - do that eliminate the xtra space thing and replace dot with a symbol.
Lot of people/companies net worth were good in 2007 but then the hoops came off the barrel (as in whiskey barrels) - aka the Great Recession in the US and around the world., exception oil related.
During my 41 year tenure in the lift truck industry - went thru 5 recessionary period from moderate to three very, very significant ones (71/72, 80/81 and 07/08) and a couple in between. This is my take as far as the US market goes - when things in the general economy start going south - the first two things to get budget reduced or eliminate are advertising and capital expenditures (lift truck are considered capital equipment) and short term rentals start coming home to roost goods. During the up turn things happen slowly as companies have a need but are cautious. But from a operating budget stand point capital expenditures and advertising are some of the last items that are significantly increased budget wise so they start buying used equipment ,generally, dealers short term rental fleet that have been roosting to long, once that after the good units are sold off and the marginal units remain, new equipment acquisition start to increase. Depending on the severity often recession there are less companies around - the Chapter 11/13 and Chapter 7 routine 11 and companies closed some plant or consolidated adn need less stuff & employees.
Where is Long Reach these days....
No. Hyster Yale is not going out of business. Just the opposite. They're stronger than ever. Still number 4 globally. They will only get stronger.
This is a good move for Hyster Yale. Cascade was the best till Toyota bought them. Toyota has a pattern of buying other companies and after a couple years, replacing their execs and engineers with their own. Bolzoni is strong. Now Hyster Yale no longer puts money in Toyota's pocket by selling Cascade. In case you hadn't noticed, Hyster Yale is diversifying and becoming industry leaders with Lithium Ion batteries, now attachments, telemetry. Hyster Yale is an industry leader and always has been, always will be. If they had the monetary backing of a major auto maker Toyota wouldn't stand a chance.
Do you expect the sales numbers in North America to increase with this? Or am I reading right and they are going to go out of business now?
Common sense tells me hyster and Yale will only use bolzoni attachments now. There are many hyster and Yale forklifts sold here....
Bolzoni is/was a public company. Check out their numbers on their website, all public.
Here's what Nacco/HY bought
- based on what I read from 1st half '15, sales around $180 million/yr
- Majority (65%+) sales in Europe
- Losing money in N America and Asia, making money in Europe
- profit of around 6-7% bottom line per year
Effectively Nacco bought an attachment company that is about the size of a mid-sized Hyster/Yale dealer in the USA. With similar profit margins.
Legacy of Nacco: weak management bench, rarely promotes/grooms from within, often looks outside the organization to hire. Rotating door of talent.
NFL analogy. Crown/Toyota = Green Bay Packers, New England Patriots. Promote from within. Groom and develop players. Hyster/Yale = Washington Redskins, or NY Jets.
Past acquisition history: not much, weak at best. A few attempts at company owned stores (Europe, Hyster Mideast, a few others) that ended up failures and being sold.
Current management focus: Nuvera (fuel cells), new class 5 truck, and various attempts at flavor of the month technology (telematics).
My prediction and forklift action appears to be archiving these posts forever. HY holds on to Bolzoni for 10 years tops then spins off the division after realizing synergies never came to fruition.
exhalt,
Toyota bought BT of Sweden & The Raymond Corporation. It is possible through consolidations people can loose their job - jobs have never been guaranteed. But at the same time new jobs can be created - I worked for MCFA taht joint venture with Cat did two things signficantly increase the sales of Mitsubishi built products and saved the jobs of Cat lift ruck employees.
I worked for a company that went out of business - employed 1500 people at one time - name Allis Chalmers. White Mobilift while a small player went out of business too. To pay for my college education I worked summers building Mustangs ('64 thru '67 year models for Ford Motor Company at the Dearborn Assembly Plant part of what is called the "The Rouge Complex". Ford made the complete car there - glass , steel , castings, engines, transmission, forgings, stampings, etc. In the height of employment The Rouge employed 300,000 Ford employees, today only 6000 Ford employees are employed and all they do is assemble the Ford F150- the remaining operations (basically the glass plant was sold off & others were simply closed F150. Don't know how many F150's they make per hour but back when I was there they produced 67 Mustanges/hour and we worked 67 hours/week (11.5 - Mon to Fri) & 10.5 hrs on Sat. on that assembly line. Made big money $2.45 to $2.67/ hour + OT pay at time & a half - I was rich - until I had to pay tuition, room & board buy books & a little play money about $10.00per week.
Totally agree with you Birddog 86. Is not going to really hurt a thing.
In this industry quality sells. Cascade , bolzoni , long reach, etc have a market share because of quality and product support.
Exalt,
Quit with the doom and gloom. It is way to early to even predict what is going to happen.
If you keep up with the material handling industry it has been said that the only way OEM's are going to grow is either be a specialty manufacture or by merger/acquisitions.
If you showed as much interest in your business, as you do with everyone elses, then maybe you would have a truck out by now.
JMHO exhalt equals the FAC version of rona barrett see attached link for details https :
Cascade has operated as a separate entity of TIEM. They are not "hidden" inside Toyota. I highly doubt the Bolzoni acquisition will have the dire effects you are claiming. Hyster/Yale will most likely let them operate how they have been operating only now they will have full access to all Hyster/Yale dealers. I am sure now Cascade will see a little dip because there will be more pressure on Hyster/Yale dealers to add Bolzoni attachments.
I think Yale/ Hyster purchased Bolzoni to stop buying product from their competition. Yale/ Hyster builds their own masts, so they have history building hydraulic systems. Now they can build a complete system without sharing information with a competitor.
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