The world market for forklift and materials handling spare parts has grown exponentially in recent years.
Giants have emerged, small players have broken in, and the growth of the internet as a business tool has broken down international borders and created a truly global business.
Forkliftaction.com News chief reporter
Damien Tomlinson spoke to TVH Group, the Belgian family company that is the world leader in the forklift parts industry with an annual turnover of USD200 million. A second feature on June 17 will include market developments and interviews with the other truly global company, IMC Holdings, or Intrupa, another family business based in the USA.
TVH is a diversified family company with interests in forklift parts, handling equipment, wholesale used forklifts, rentals, service and repairs. The company was founded in 1971 by Paul Thermote and Paul Vanhalst, and is still very much a family business. Four of the five board members are related to the founders. They are Pascal Vanhalst, Bernard De Meester (Mr Thermote's son-in-law), and Ann and Els Thermote. The fifth director is Paul Thermote.
Dominiek Valcke, who works in TVH's corporate development & controlling department, said exact figures for the size of the world market for spare parts did not exist, as there was no industry body to collate statistics.
"However, according to internal calculations, we dare to estimate the total annual market for forklift spare parts to be between EUR3.5 billion (USD4.3 billion) and EUR4 billion (USD4.9 billion)," he said.
"This number is roughly calculated; making assumptions on parameters like the number of new trucks sold every year (between 550,000 and 600,000), the market in second-hand trucks and the expected sales of forklift parts per truck."
Mr Valcke said TVH did not use those numbers as a reference, as some sectors of the market were difficult to quantify. "For example, there are still a lot of Balcancar trucks in Eastern Europe and Russia (and) there are practical limitations on whether a product is marketable in a country (due to distance, market presence of manufacturers, competition, etc)."
TVH began as a wholesale forklift dealer, but its parts division has grown to be the most important and global division, selling into more than 180 countries through its printed master catalogue and online ordering system.
The company employs 1,100 people across its two parts divisions: TVH and Systems Material Handling Company (SMH), in Olathe, Kansas, USA, which TVH acquired in 2003. Geographically, SMH handles the Americas, while Europe, Africa and Asia-Pacific are served by TVH and its Australian subsidiary, TVH Australasia.
TVH has branches in the UK, France, South Africa, Malaysia, Australia, the former Soviet Union and Italy, and salespeople and partners throughout Europe. SMH has branches in Olathe and Cucamonga, California, and two affiliates, SMH Canada and SMH Mexico.
Recent years have seen solid growth and expansion for TVH, and 2004 is looking positive, Mr Valcke said.
"The economy is, to some extent, picking up again, resulting in increased sales in all divisions, but especially in the rental and forklift parts division. The forklift parts division will, if everything continues like today, deliver substantial growth figures," he said.
This year the company began moving to new premises in Waregem, centralising all TVH's Belgian warehouses. It is also a year of integration: several affiliates have changed their branding to reflect TVH's involvement, such as TVH South Africa, TVH Far East and TVH Australasia.