Jungheinrich says it is likely to double its tow tractor sales this year.

Jungheinrich predicts that its tow tractor sales will double this year as a result of changing trends in the manufacturing industry.

Oliver Rosenthal, the group's product manager for tow tractors, says that many manufacturing companies are reconfiguring their internal logistics systems to maximise efficiency of parts delivery processes.

"In a lot of cases, manufacturers are adopting the 'milk run' principle as the most efficient way of getting parts to the production line. This involves delivery of parts on a defined route around the factory, often to a set timetable," Rosenthal explains.

This means that tow tractors leave the warehouse with a full load of parts. They drop off parts at the production line and take away an empty SKU for replenishment. The system, first used in the automotive sector, is being adopted by smaller companies in different industries.

Rosenthal says manufacturers have realised that tow tractors can work in narrow aisles and allow several loads to be transported by one vehicle. "This means saving in personnel. Also, when it comes to changing the layout of the factory, stationary conveyors, which have traditionally been used to deliver parts to the production line, are very inflexible."

Jungheinrich claims its one to 25 tonne electric-powered tow tractors built at it its Lueneburg factory in Germany are the widest range of tow tractors on offer. The tow tractors feature fourth-generation AC motors that are built with the same components used in its forklifts.

Separately, Jungheinrich has reported increases in incoming orders, sales and earnings for the first half of 2010. Incoming orders increased by about 12% from EUR819 million (USD1.054 billion) to EUR915 million (USD1.177 billion), while net sales jumped 7% from EUR417 million (USD536 million) to EUR446 million (USD574 million). The group produced 27,400 trucks, nearly 14% more than the previous year's 24,100 units.

Hans-Georg Frey, chairman of the board, credits a strong performance in June, efficiency programs, expanding after-sales services business and savings initiated last year for the group's positive result.

The group's cumulative earnings for the first half of 2010 was EUR37.7 million (USD48.5 million) compared to a loss of EUR14.8 million (USD19 million) the year before.

Forkliftaction.com News asked Jungheinrich how much money it saved through its cost-cutting measures last year but the group declined to disclose the figure. Jungheinrich cut about 300 manufacturing jobs during the global recession (Forkliftaction.com News #421).