The forklift industry has some confidence and optimism for the new year - as well as a firm commitment to safety, environmental responsibility and improved productivity. Allan Leibowitz spoke to a number of industry leaders about market conditions.

While the final tally is not yet in, it looks like 2014 will be another million-unit year, with Jungheinrich recently noting global orders of 818,600 forklifts for the first nine months.

Industry analyst Research and Markets points out that orders first passed the 1 million threshold in 2013 in an upward trend that is tipped to continue in the years ahead.

The report is particularly upbeat about the Chinese market, which is anticipated to account for sales of more than 440,000 units next year - at least 150,000 of those likely to be exported.

China, together with Western Europe, were identified by Jungheinrich's market analysis as primary drivers of year-on-year growth for the global industrial market both in the third quarter and in the first nine months of 2014.

Optimism for the year ahead is widespread.

According to Brian Feehan, president of the US-based Industrial Truck Association, most members are upbeat, "predicting 2 to 4% increase in overall demand".

The UK market is also performing strongly, with the most current figures from the British Industrial Truck Association outperforming the association's forecast.

David Rowell

Sales in the second quarter of 2014 were up 18% from the previous quarter, prompting BITA president David Rowell to predict sales of 30,000 for the year - almost back to the psychologically significant 32,000 figure recorded in 2007 before the economic downturn of 2008.

Chinese manufacturer Lonking, ranked just outside the top 10 in last year's global forklift manufacturer tally, enjoyed substantial export growth in 2014 and expects that to continue in the year ahead, particularly in Europe and the USA, according to spokeswoman Annie Li.

"Developing countries' demand for forklifts increased last year," she says, also noting increased demand for battery-powered forklifts as noise and pollution reduction became important considerations.

Chuck Leone, corporate vice president at Hyundai Forklift, is encouraged by "growth in not only our company, but in the industry as a whole".

"In 2015, we hope to see an 8% projected market growth for Hyundai stemming from new larger, successful dealers and expansion within existing industries due to new products," he says. "We see large-capacity port and lumber applications as being the hot industries for 2015."

China was also important to UK niche supplier Flexi Narrow Aisle, according to Joanne Wilson, sales operations manager. "China has become a major growth market for dedicated warehouse trucks rather than just 'standard forklifts'," she notes.

Wilson predicts an increased volume of electric warehouse trucks and electric forklifts taking over from IC engine units, with China leading the way.

"We are planning to extend our range of order picking truck systems to address the e-commerce market," she says, flagging the relaunch of the Flexi AC range in its fifth generation version in spring 2015 with improved safety features, lower noise levels and increased operator comfort.

Richard Rich, wholesale manager at H&K Equipment, is tipping market growth after a stable 2014, "but I don't think the increase will be as substantial as it was in prior years".

"Part of the reason is the availability of used equipment is tightening up a little bit on the common capacities, though I do think the used equipment market still offers potential for growth simply because of the price increases we're seeing in new equipment. On the other side of that, I think there will be a slight decline in new equipment sales for some manufacturers, but I don't think it will be that dramatic."

Bendi is benefiting from narrower aisle configurations.

Bendi managing director Simon Brown agrees: "One of the major changes appeared to be good quality used equipment drying up and a big swing back to new equipment."

Cees Halling from Holland's BS Forklifts International BV is anticipating growth in the year ahead and notes that even the used equipment market is being affected by the drive toward improved safety and energy efficiency.

These considerations make it increasingly difficult to sell older machines, he says. So, in the used equipment market, the relationship between price and quality will be crucial in the year ahead, he predicts.

For Spanish manufacturer Bomaq, 2014 was just the third year of operation.

"We expect to double our turnover in 2015," says executive Antonio Martinez, "as we have done this year."

"We have already confirmed orders, and we also expect that our new 5 T model will have even a bigger impact in the market than the 3 T."

Martinez sees good prospects for Bomaq's 2 T electric unit which he believes will tap new markets.

Fellow Iberian supplier Up Lifting also experienced "significant growth" in 2014, prompting a major investment in a new factory project, a modern assembly line to accommodate large machinery and plans to expand its international network into North Africa and the Americas markets.

"We have an expectation of 30% growth in 2015 , especially in the sector oriented to a new line of military products," says regional project manager Delio Lorenzana.

The past year was a big one for global driveline and chassis technology developer ZF.

Dirk Bald, head of product line material handling systems and electric drives, says highlights included the introduction of new equipment with double-digit energy savings due to ZF drive and steering technology, the increased adoption of ZF's EPS3 electric power steering and energy savings of up to 20% through the use of the company's dual-motor drives.


The CeMAT effect

2014 was an exhibition year for the biennial global industry showcase, CeMAT, further fostering optimism.

CeMAT 2014: Jungheinrich enjoyed record exposure.

Organisers boasted 1.7 million business leads during the event which attracted 1,025 exhibitors and some 53,000 visitors from 65 nations.

Jan Kaulfuhs-Berger, Jungheinrich trade press spokesman, describes the show as the highlight of the year for the giant German manufacturer.

"With over 130 products and 24 innovations on display, our appearance here offered an impressive demonstration of the way Jungheinrich has become an intralogistics benchmark. And Jungheinrich received an International Forklift Truck of the Year (IFOY) Award for its EFG S40s in the key category of counterbalance trucks from 3.5 T."

Axel Wahle, European marketing director for Toyota Material Handling Europe, is still beaming about his company's two IFOY forklift awards for Toyota I_Site and Toyota Traigo 80 at CeMAT.

"We have launched more new trucks than ever before: Toyota Tonero with hydrostatic drive (Tonero HST), Toyota Tonero high-tonnage diesel range up to 8 T, powered pallet truck with exceptional efficiency (BT Levio P-series), RRE B-Series (entry-level reach truck designed for straight-forward applications0 and (we) introduced the Toyota Service Concept (TSC) for unique, forward-thinking lifetime support and a new edition of Toyota I_Site system for truck and fleet management.

Among the first-time attendees at the event was UK-based Bendi. "CeMAT was a huge success," says managing director Simon Brown. "It was the first time we had exhibited and (we enjoyed) lots of interest from end-users and dealers globally."

CeMAT was also a highlight for Trelleborg Wheel System. Marketing communications director James Pick says the launch of the company's Pit Stop Line feature in its premium range of solid tyres elicited "incredibly positive visitor responses and we are looking forward to the next phase of the project in 2015".

A notable absence from CeMAT was German leader Linde Material Handling.

Christophe Lautray, chief sales officer, says Linde's rival World of Material Handling exhibition in Mainz, Germany, was a huge success.

"Linde MH showcased its comprehensive range of products and services as well as current trends and visions for the future of internal material flow in an exhibition space measuring around 20,000 square metres. Around 6,000 customers, interested parties, journalists and colleagues from over 40 countries accepted the invitation and attended expert presentations, technical exhibitions and product demonstrations, and even had the opportunity to drive a forklift truck or operate a warehouse truck.

"They were also able to glean valuable information from the exhibition of 18 Linde partners, including Volkswagen Drive Systems, Wemag and Continental."

Plenty of new products

While many manufacturers used CeMAT to debut new equipment, this does not mean there will be a development drought in 2015.

Bomaq will begin the production of a 5 T model "which will offer the market performances never offered before by our competitors", according to Martinez. "We will offer the best turning radius in the world for a 5 T rough-terrain forklift truck (3.05 m), and will also offer a compact 5 T unit that (will fit into a standard 20 ft. container)."

The award-winning Hyundai 9 Series forklift.

Hyundai's Leone confirms that an interactive monitoring system for the 9 series diesel forklifts is among the safety enhancements due in 2015. " We will also be incorporating load indication systems into more of our forklift models. Load indication systems have been standard equipment in our electric models in 2014 and we're proceeding to incorporate this system in our diesel models next.

"Additionally, we will be making several improvements to our 7 series internal combustion forklifts including enhanced operator amenities and the addition of LED lights, a rear horn and panoramic mirrors.

China's Lonking will "keep on improving product quality and operational comfort in 2015," says Li, who hints that these will be key features of new products or ranges that will also be more environmentally friendly.

While tight-lipped about the details, Jungheinrich's Kaulfuhs-Berger confirms that the global giant will "push on the development of lithium-ion-technology".

Similarly secretive is Linde's Lautray: "We have a couple of new products and solutions in the pipeline but rather prefer to speak about it when they come on the market."

Rough-terrain specialist Liftking, buoyed by a new assembly line which has boosted quality and capacity, has big plans for 2015, according to spokesman Guido Cameli. "We will introduce a new agriculture rough-terrain forklift that is specifically designed to maximise efficiency and profits (and) add features to our oil and gas industry models that we feel will give our machines an even more competitive advantage."

Besides expansion into new markets with current models and those brought into the fold through its alliance with Hubtex, Bendi anticipates significant growth in the order picker market due to the rise of online sales. Specific plans include the introduction of a Mini Bendi Ride-On version in 2015.

The increasing focus on safety is a boon to specialist suppliers like TruckLOG, which has just ended its "best year yet", according to executive director Ian Roberts.

Alongside several new products introduced in the past year, TruckLOG is preparing to launch more in early 2015. "With expansion overseas, we will continue to develop some of the most advanced forklift truck fleet management systems on the market," he adds.

Similarly, safety device supplier Keytroller saw significant growth in 2014. President Terry Wickman explains that the recently introduced KEYWARNER pedestrian warning device will be augmented in 2015 by an intersecting aisle radar warning system "that picks up a moving pedestrian or vehicle from four directions". This type of device may not be necessary for every application, he points out, but for warehouses with a safety problem at busy intersections, "this is a new technology that will improve safety".


The burning issues

Linde's Lautray sees energy efficiency, productivity, ergonomics, safety and sustainability as the key considerations for customers.

These comments reinforce the view of Rich, who says "energy efficiency is always a big issue, and that will continue to be a major concern next year".

"Areas like safety are in pretty good shape, so I don't believe that's likely to become a defining issue of 2015," he notes, adding that the biggest issues in the marketplace "are going to be driven by international politics, especially with the unrest we're seeing in some countries. That could definitely introduce some volatility to the market."

On the energy front, Lew Manci, vice president of engineering at Crown Equipment, notes two areas of activity in the past year - hydrogen fuel cells and lithium ion batteries.

Still's Fuel Cell model.

"Fuel cells have been piloted in a number of large warehouses over the last several years, and some of those early adopters are now transitioning from government-sponsored trials to full-site conversions. The technology as applied to forklifts has shown some promise in addressing the issues inherent with lead-acid batteries," he points out.

Manci also notes a number of benefits provided by lithium-ion batteries "that make them an option worth considering under certain circumstances".

"They are generally more efficient than lead-acid batteries, can be opportunity charged during operator breaks without adversely affecting battery life, have longer run times, and can be charged more quickly. Additionally, lithium-ion batteries do not emit gas during charging, which means they do not require special battery rooms.

"While this technology still is costly relative to lead-acid batteries, early adopters are starting to conduct trials and pilot studies to better understand the benefits of the technology for their specific applications and needs, and determine whether those benefits outweigh the cost differential."

Jungheinrich's Kaulfuhs-Berger lists the top considerations as "safety, ergonomics, quality, reliability, alternative energy storage, after-sales service ... and total cost of ownership".

Terry Wickman, president of safety products manufacturer Keytroller, identifies safety as "the hot topic especially among large fleet users".

"Industrial applications will always be interested in products that improve safety. They also understand, however, that to improve safety, you must also demand accountability. Accountability inherently forces an operator to operate within the safe parameters that he has been taught in training."

Safety was very much on the radar for ITA in 2014 and it will remain there in 2015, says Feehan, who is already planning the association's National Forklift Safety Day for June 9.

"We are determined to use this day as a continuing opportunity to address critical priorities concerning forklift operator safety through improved education and training," he adds.

Across the pond, safety is also a key focus of the UK's FLTA. Launching its annual Safety Week campaign, a spokesperson pointed out that "it's important to remember that safety should never be viewed as a one-off or even annual event.

"Forklift truck safety is a journey. It is one which has been a way of life for the Fork Lift Truck Association since it was established more than 40 years ago. During this time, we have encouraged and witnessed the UK forklift truck industry making significant strides in health and safety practice, but forklift trucks continue to be involved in more than 800 workplace accidents each year."

The Safety Week campaign and the association's annual safety conference will be held again in 2015.

A number of industry players have noted the rise of electric forklifts, among them
ZF's Bald who has witnessed a further increase in the proportion of electric trucks to IC units, especially in the 1-5 T class.

The trend has not escaped the attention of Robert Lightfoot, vice-president - materials handling at Camoplast Solideal.

"As companies continue to seek ways to become more energy efficient, we will see more businesses turn to electric-driven equipment."

This, of course, has implications for Solideal's customers: "Tyres that offer low rolling resistance and contribute to maximising battery life will become more popular with fleets of electric forklifts."

Crown's Manci expects to see growing adoption of fleet and operator management systems in the coming year. "New, cloud-based solutions provide a software as a service (SaaS) cloud option that makes forklift fleet and operator management systems more affordable for the smallest of fleets without sacrificing any of the benefits. Companies with larger fleets will continue to move beyond the 'low-hanging fruit' benefits of their fleet management systems - which usually revolve around compliance management, licensing issues and impact detection - and utilise their systems to greater potential."

The combination of new technologies, shifting usage patterns and the focus on safety and the environment means that more change is in store in 2015 - and those who buy, manage and use forklifts will have to remain vigilant to stay ahead of the demands.