Ads
News service and business centre for materials handlingHOME
DISCUSSION FORUMS : Forkliftaction.communicate
Hyster & Yale Dealers
  • EasyM
  • South Carolina, United States
This should certainly shake things up.



Newsletter #420 (View other news stories)
Arnold, H&E weigh deal involving NMHG brand
Salt Lake City, UT, United States
Wednesday, 22 Jul 2009


While nothing is final yet, Arnold Machinery Co may add Yale product at its Hyster dealerships in five states, linking Nacco Materials Handling Group (NMHG) brands.

"We will sell both (Hyster and Yale) brands in our Rocky Mountain territory," says Rex Mecham, president of the materials handling division of Salt Lake City-based Arnold Machinery. "What we announced was based on a change in NMHG policy now allowing single owners of a brand" to acquire and market NMHG’s other brand in North America.

Arnold has agreed in principle to purchase the Yale business in Nevada, Arizona, Colorado, Utah and Idaho from H&E Equipment Services Inc of Baton Rouge, Louisiana and may complete the transaction by 31 July.

If concluded, the Arnold-H&E transfer might become the first of several geographic NMHG dealership consolidations.

Senior executives of NMHG and parent company Nacco Industries Inc met in June in Chicago to discuss possible distribution-consolidation avenues with certain Yale and Hyster dealers. Each attendee was required to sign a non-disclosure form.

"We have been looking at improved organisation designs for some time as a growth strategy and to better support our dealers and customers, and our ultimate goal is strong Hyster and Yale representation in every market," says Colin Wilson, vice president and chief operating officer for NMHG in Greenville, North Carolina. "NMHG has not changed its view with regard to consolidation of brands. There is a Yale brand, and there is a Hyster brand. The two brands will not be combined."

NMHG managers and dealers are aware of an effort at joint venture Mitsubishi Caterpillar Forklift America Inc (MCFA) of Houston, Texas. Beginning in 2006, MCFA established a two-brand, one-channel distribution strategy ([url removed] News #217) for its Caterpillar and Mitsubishi forklift brands. Wilson says the NMHG approach is not the same as MCFA because NMHG will continue to offer a full product line through both the Hyster and Yale dealer channels.

Arnold Machinery and H&E reached an agreement in 45 days. Al Richer, chairman of Arnold, called John Engquist, H&E president and chief executive officer, on 1 June, according to Mecham. Top executives of each firm met on 6 and 7 July, and, internally, Arnold disclosed the agreement 15 July.

"It is the goal of both H&E Equipment Services Inc and Arnold Machinery Co to make this transition as smooth as possible to both the company’s employees and our valued customer base," the announcement says.

Eight branches slated to add Yale include Arnold locations in Las Vegas, Nevada; Tucson and, for the Phoenix market, Laveen, Arizona; Colorado Springs and Denver, Colorado; Salt Lake City and St George, Utah; and Meridian, Idaho for the Boise market.

A senior H&E executive acknowledges, "We are in discussions (with Arnold). Nacco has a desire to consolidate where they can," but, as of 20 July, NMHG had not officially approved any deal.

Arnold Machinery started working with the Hyster brand initially via a verbal agreement in October 1944. On that basis, "we claim to be oldest independent Hyster dealer in the country," reports Mecham, who started with Arnold in 1974.

Prior to factoring in the H&E assets, the material handling division accounted for 40% of Arnold business, according to Mecham. Other Arnold divisions focus on mining, construction and farm implements.

Mecham identifies upcoming goals: "Increase marketshare for Hyster and Yale, not diminish either brand" and organise service, parts and inventory resources "to take care of these two products."
"Over the years, we have tried to expand and grow," Mecham adds. On 1 October 2008, Arnold purchased the Hyster rights for North Dakota, Minnesota and western Wisconsin from RDO Equipment Co of Fargo, North Dakota, a major John Deere equipment dealer. In April 2006, Arnold acquired the Hyster market for Colorado and most of Wyoming from Materials Handling Co of Denver.

In addition to Hyster and soon Yale, most Arnold locations represent the Sellick, Bendi, Drexel and Combilift brands, and some branches carry the Manitou, Shuttlelift, Hoist Liftruck and Taylor Dunn lines. Also, Arnold sites stock forklift attachments from Cascade, Brudi and Bolzoni Auramo.

In existing locations in the Rocky Mountain region, H&E is expected to retain its aerial work platform business involving Genie, JLG, National Crane, Manitex, Elliott, Tadano and Lift-A-Loft brands. Other core H&E categories involve cranes and earthmoving equipment. H&E also represents Komatsu, Skyjack, SkyTrak, Bobcat, Taylor and Blue Giant brands.

Publicly traded H&E has 63 full-service facilities in various US regions and reported a profit of USD43.3 million on 2008 sales of USD1.07 billion.

H&E acquired the assets of JW Burress Inc of Roanoke, Virginia with 12 locations in four middle Atlantic states for about USD144.1 million on 1 September 2007 and the assets and some liabilities of Eagle High Reach Equipment Inc of La Mirada, California with four locations in southern California for about USD66.3 million on 28 February 2006.

NMHG Holding Co is a subsidiary of publicly traded Nacco Industries of Mayfield Heights, Ohio and, through NMHG, designs, engineers, manufactures, sells, services and leases forklifts and aftermarket parts under the Hyster and Yale brand names. Two reportable business segments are wholesale manufacturing, known as NMHG Wholesale with 2008 sales of USD2.74 billion, and retail distribution, known as NMHG Retail with 2008 sales of USD84.2 million.
  • Posted 25 Jul 2009 02:51 AM
  • • Modified 25 Jul 2009 02:52 AM by poster
Total replies: 68. Showing items 1 - 20 of 68 results.
1234
Replies
  • chublil
  • California, United States
So where does this leave Johnson machinery and Yale/Chase in So. Cal?
  • Posted 28 Jul 2009 10:58 AM
  • EasyM
  • South Carolina, United States
I have also heard that the Yale dealer in the Detroit area is going to buy out the Hyster dealer.
  • Posted 31 Jul 2009 10:32 PM
  • chublil
  • California, United States
Here goes the rumor mill, I heard from some reliable sources that our local Yale dealership is going to make a bid on the Hyster business. I guess NACCO has to do it to survive these tough times. Pretty crazy.

Fix it right!!!
  • Posted 31 Jul 2009 10:38 PM
  • EasyM
  • South Carolina, United States
So far, it seems as though the Yale dealers are looking to gobble up the Hyster dealers. If someone would have told me 10 years ago that this was going to happen, I would have thought that they were out of their ever loving mind. I always thought that NACCO was going to hurt Hyster, I just never knew that it get to this point.
  • Posted 31 Jul 2009 10:44 PM
  • chublil
  • California, United States
I agree, I thought it would have gone the other way around. The Hyster dealership out here has a pretty decent big truck division, so I believe they will be okay. Im just not so sure the local Yale dealership will be able to assimilate the pre-existing Hyster accounts.

Fix it right!!!
  • Posted 31 Jul 2009 11:12 PM
Why would you say that? Didn't the current owner of Yale in [url removed] buy it out of bankruptcy over 10 years ago? They kill Hyster on market share, maybe even double. Yale doesn't have the big trucks that Hyster does in the lineup, so there is a reason why Yale doesn't sell big trucks. I think they will be able to handle it.

Just speculation, but I think NACCO is going with the stronger dealer in every market to sell both lines. Eventually I think one line will go away. Will it be Yale? Will it be Hyster? My money is on Yale going away.
  • Posted 3 Aug 2009 01:14 PM
  • chublil
  • California, United States
Now wait a minute, if the Yale dealership is going to be able to handle the influx of Hysters accounts, why would you put your money on them failing? Also Yale does sell the big trucks locally, (GDP250-GDP200). Theres a lot of businesses locally that I know of that have Yale units over 25000lbs. I believe Hyster has better name recognition nationally, but Yale is known for "giving away" its trucks on new sales orders just to get the buisness. Also NACCO has invested alot of money in R+D for the new Yale AC units, (Reach and OP). Granted Nacco also invested heavily in the new Hyster AC 3-wheeler as well. I guess we will just have to wait and see which dealership has the biggest "war chest" and wins out. I want to agree with you on Yale going away, but I think locally Yale is in a better position finacially to flex its muscle.

Fix it right!!!
  • Posted 3 Aug 2009 09:27 PM
1. Today Yale has a market share equal to if no grater than Hyster. Hyster is better know in the big truck market than Yale brand, especailly in the Northwest.

2. Yale has pretty much the same model line up offerings as Hyster. Primarily, there is only paint & decal differences between the two brands. Yep, they play with some optional features available on one but not on the other but it is "eye wash differences."

3. The Hyster 3 wheel w/ AC stuff is available in the Yale line-up, too.

4. At one tiem Hyster had a significant sahre of the market but things changed kinda' liek Clark used to be #1. AS they say when your #1 you only can in one direction as evry oen is "shooting" at you.

"Have An Exceptional Day!"
  • Posted 3 Aug 2009 09:51 PM
  • EasyM
  • South Carolina, United States
From Class I-V, up to 36,000 lbs., there is no difference between the Hyster and Yale.

Looks like only the strong dealers will survive. There is now a real battle for market share amongst the Hyster and Yale dealers. They know what is going on. Yale dealers gave the trucks away even when times were good. No telling what they will do now.
  • Posted 3 Aug 2009 10:32 PM
chublil. Let me clarify, I believe Yale/Chase will eventually become the Nacco dealer for both lines, and Nacco will eventually kill the Yale line. Just an educated guess on my part.
  • Posted 3 Aug 2009 11:40 PM
  • EasyM
  • South Carolina, United States
NACCO execs lean heavy toward the Yale side. I'd be shocked to see them do away with Yale.
  • Posted 3 Aug 2009 11:43 PM
  • chublil
  • California, United States
Okay arminius, that I would put my money on. If that did occur, the only question left to answer would be whether or not Yale/Chase would be able to handle becoming too big for their britches.

Fix it right!!!
  • Posted 3 Aug 2009 11:49 PM
Yale/Chase has a pretty good track record with growth, going from 0 to where they are today. They absorbed a bunch of Clark techs when Clark closed the doors recently. So in that respect, I think they can handle more business.

But I agree with you in a way, getting big does not always mean getting better when it comes to taking care of customers. It seems like every forklift dealer hits a 'critical mass' in terms of size.
  • Posted 4 Aug 2009 12:02 AM
Worked for Briggs Equipment, Yale dealer and never found them to be the "low priced" leader, even after factory subisidies etc. On occassions, the dealership had a "war chest" to help develop new accounts or keep the other guys out of good accounts. But you had to have facts & supporting docs to justify the "extra" assistance.

"Have An Exceptional Day!"
  • Posted 4 Aug 2009 02:50 AM
  • chublil
  • California, United States
johnr, I am assuming Briggs is or was an independant dealership, and if so, its all how willing they are to screw the competition. Also all the sales guys I know from a few companies I know out here in California are almost or have already gone into different lines of work. Everybody's starving out here due to the economy. So for the few companies that can still budget for new equipment, they are getting them even cheaper. Yale/Chase had alot of electric accounts out here back in 2003 to 2006, but lost some pretty big ones to Raymond and Crown on Full Maint: Thats gotta hurt!!

Fix it right!!!
  • Posted 4 Aug 2009 04:36 AM
  • Maven
  • Massachusetts, United States
The rumor I heard is Nacco will use Yale for class I thru III and Hyster for IV and V and big trucks. They will then take the stronger dealer in the territory ( either hyster or Yale) and give hem both lines. Rumors in the Northeast Have Hyster New England Losing the line and NITCO getting both. HNE has been struggling (from what I hear) with Nacco for the past few years and Nitco has always been a strong dealer.

If this is what Nacco has planned, I can only IMAGINE the lawsuits that will follow. Anyone remember the MCFA mess it had with its Mitsu Dealers??????

Just my 2 cents
  • Posted 4 Aug 2009 07:09 AM
chubhill,

Briggs E is the largest Yale dealer in the Western hemisphere and independent for sure. Operations from Texas to Georgia.

Let me assure you California isn't aloen with trucks sales in the tank. Things can be worse if you lived in Michigan.

"Have An Exceptional Day!"
  • Posted 4 Aug 2009 11:52 AM
  • chublil
  • California, United States
johnr Your probably right about that, the only buisnesses still moving forward out here are either defense and military contractors, food and beverage distributors or independant trucking companies. Everybody else is either in a holding pattern or laying people off. I did live in Troy for a split second. Nice state, just no work!!!

Fix it right!!!
  • Posted 4 Aug 2009 12:51 PM
chublil,
Thinks ain't good anywhere. During my career I made it thru two big recessions, one in the 1973/74 recession period ITA numbers dropped from 130K (all 5 classes & a record year then ) to 36K the next) and the 1981/82 recession, 10% unemployment nationally. I was a an economic termination casualty at that time. Things will work out, just need to have lot of PMA (positive mental attitude) & work smarter and harder to keep the "hoops from coming off the barrel."

By the way I grew up in Michigan, Taylor and went to WMU. Still have family in the Detroit area. It is sad to see what has happened to the Big "3". I built Ford Mustangs at the Dearborn Assembly Plant, in the summers of 1964 -1967 while going to college (that's how I paid for it)

"Have An Exceptional Day!"
  • Posted 4 Aug 2009 09:07 PM
chublil,
Thinks ain't good anywhere. During my career I made it thru two big recessions, one in the 1973/74 recession period ITA numbers dropped from 130K (all 5 classes & a record year then ) to 36K the next) and the 1981/82 recession, 10% unemployment nationally. I was a an economic termination casualty at that time. Things will work out, just need to have lot of PMA (positive mental attitude) & work smarter and harder to keep the "hoops from coming off the barrel."

By the way I grew up in Michigan, Taylor and went to WMU. Still have family in the Detroit area. It is sad to see what has happened to the Big "3". I built Ford Mustangs at the Dearborn Assembly Plant, in the summers of 1964 -1967 while going to college (that's how I paid for it)

"Have An Exceptional Day!"
  • Posted 4 Aug 2009 09:07 PM
Total replies: 68. Showing items 1 - 20 of 68 results.
1234

Having trouble using the Discussion Forums? Contact us for help!

Forkliftaction.com accepts no responsibility for forum content and requires forum participants to adhere to the rules. Click here for more information.

Ads


©Forkliftaction.com
Forkliftaction Media Pty Ltd
PO Box 1439
Milton QLD 4064
Australia
Contact Forkliftaction.com
About Forkliftaction
The Forkliftaction Team
Privacy Policy
Site Map
Help
Business Directory
Discussion Forums
Industry News
Events Calendar
Jobs & Resumes
Photo Galleries
Blog articles
Our Bloggers

Industry Brands
Company Index
Regions & Countries
Machinery-onQ.com

Advertise on Forkliftaction
Editorial Features / Calendar
Featured Businesses
Past News Editions
Industry Associations
Storing your login information automatically.

When you select the 'Remember me' option, your login information will be stored on your computer in the form of a cookie. When you visit Forkliftaction.com again, the stored login information will be retrieved automatically and you will not have to submit your login parameters (email address and password) each time you want to visit our members-only pages.

A cookie is a small piece of data that is sent to your browser from a web server and stored on your computer's hard drive. A cookie can't read data off your hard disk or read cookie files created by other sites. Cookies do not damage your system.

x