Automated Products Will Lead Future Material Handling Growth

Automation and third world development are expected to drive the 5% annual global growth predicted in the material handling industry, according to a new study released by The Freedonia Group, Inc., a Cleveland-based industry research firm (see our previous post). Durable goods will continue to lead demand, but opportunities in nondurable goods are also anticipated.

In 2007, durable good manufacturers led global demand for material handling equipment. Over the next five years, material handling growth will be led by a massive worldwide increase in motor vehicle production followed by increased demand for durable consumer goods, particularly electronics. However, rapid scientific and technological advances in nondurable goods, particularly the chemical and food and beverage industries, are also expected to create new demands for material handling products around the world.  

Rapid industrialization in developing countries in Asia, the Pacific, Eastern Europe, Africa, the Mideast and Latin America will increase demand for conventional material handling products such as industrial carts, tugs, trucks, lifts, conveyors, hoists, production line movers, cranes, etc. However, the Freedonia Group expects automated material handling products, including robots and automated guided vehicles (AGV), to post the best gains as industries in the U.S., Western Europe and Japan move to increase automation. Software, systems design, project management and other high-end services to these markets are also expected to post significant increases. Economic and manpower issues will drive the march toward automation and increased productivity in western markets with an emphasis on automated equipment and systems that can be easily integrated into large-scale automated factory and warehouse environments. 

High fuel prices, environmental concerns and worker health and safety issues will also play an increasing roll in shaping material handling demand, particularly in U.S. markets. The current shift away from fuel-intense gas-powered trucks to more energy-efficient battery-operated material handling movers and tugs that was sparked by high fuel prices is expected to accelerate. Escalating medical, insurance and workers’ compensation costs will likewise drive a move toward ergonomically designed material handling equipment and systems.

It’s Buyer Beware When Buying Used Equipment

Economic woes have everyone pinching pennies and looking for bargains. Buying used material handling equipment can seem like a good way to save money, but while there are good bargains to be had, industry watchers warn that there are a lot of unscrupulous people out there trying to cash in on the potential profits. You know you’re getting a high quality product when you buy new material handling equipment from its manufacturer; but if you’re considering buying used equipment, it’s buyer beware.

Business consolidation, poor sales and bankruptcies have forced more material handling equipment onto the used market than usual, so it pays to do your homework and thoroughly investigate both the product and the seller before putting your money down, caution industry experts. Anyone can sell used equipment. No certification is required to sell used equipment, and authorization by original manufacturers is not required. Used equipment shouldn’t be confused with remanufactured equipment that is rebuilt, often by the original manufacturer, and refinished for resale, usually with a manufacturer’s warranty.

The boon market is attracting legitimate sellers who specialize in used material handling equipment sales; but it’s also attracting brokers, auctioneers and folks looking to make a quick buck. These Johnny-come-latelies generally lack any knowledge about the products they are selling or the maintenance they require. Equipment is sold “as is” or sometimes spruced up for resale; but it’s like buying a used car, you don’t know what you’re getting unless you perform a thorough inspection.

Even used, material handling equipment can represent a serious investment. When you buy used, you may get a great bargain; but it’s equally probable that you’ll get an expensive lemon. Follow these tips from Stafford Sterner for Material Handling Management online to ensure that when you buy used material handling equipment, you get what you’re paying for:

  • Deal with reputable, established businesses. In the competitive used equipment market, longevity is a sign of customer satisfaction, reputable business practices, adherence to industry standards, and fair prices. Beware of internet sales unless you can physically verify the business and inventory. A legitimate dealer will carry inventory in stock, be knowledgeable about his stock, allow inspection of equipment before purchase, and provide delivery assurance.

 More tips on Friday

Predicted Material Handling Slowdown to Be Short Lived

The predicted slowdown in the material handling industry is expected to be short lived, said Material Handling Industry of America (MHIA) executives in a news conference last week. After a strong period of growth, contraction and consolidation are expected for 2008 and 2009 before the industry resumes growth in 2010.

“We have had double-digit growth for the last few years,” said MHIA executive VP of business development Hal Vandiver. “But there is a business cycle.” The slowdown is expected to be felt hardest in logistics sectors of the $156 billion material handling industry.

Overall consumption of material handling equipment is expected to contract by 5% over the next two years with new orders decreasing by 5% to 7% and shipments declining by 2% to 4%. High fuel costs are one factor contributing to declining diesel forklift sales. Industry is switching to more energy-efficient and maneuverable electric and battery-operated motorized carts and tugs.

The poor economy is also having an effect on the material handling industry. Many companies are deferring capital equipment purchases until the economy picks up. Fewer system-wide equipment purchases are expected in the next couple of years in favor of individual item and small order solution-specific purchases.

The graying of the American workforce as Baby Boomers aged, coupled with escalating health and insurance costs focused emphasis on ergonomic design in the material handling industry. As the Boomer generation retires, the importance of ergonomic design is expected to increase as the available workforce shrinks. Equipment that can be used safely and efficiently by workers of varying body type, height and strength will be vital to industry success.

Ergonomics Can Help Decrease OSHA Reporting

One way to keep your company out of OSHA’s crosshairs (see our previous post) is to embrace ergonomics. Using ergonomic principles to design equipment, plan workstations and structure task performance has been proven to significantly decrease worker injuries and fatalities. Businesses reap additional benefits in decreased medical, insurance, disability and worker’s compensation costs. Fewer man-hours are lost to injury where ergonomics are practiced.

Lifting, repetitive motion, overextension and overexertion are common injuries in material handling, warehousing and logistics environments.  Injuries to the back, neck, shoulders, hands and wrists can result in serious, long-term disabilities — and the hefty medical and insurance expenses that go with them. Back injury is the most cited injury in worker’s compensation claims. Many of these injuries are preventable when ergonomic equipment and strategies are employed.

Making an investment in ergonomics is making an investment in your workforce. Demonstrating concern in your employees’ health and welfare has a direct and highly positive effect on worker morale and productivity. DJ Products can help you determine your ergonomic needs. Use our handy Ergonomic Load Calculator to estimate the force needed to move loaded carts, castered equipment and wheeled machinery. Our experienced staff can help evaluate your ergonomic needs and recommend ergonomically designed carts and tugs geared to improve the safety of your facility and protect the health of your employees. Your initial investment in ergonomics will be quickly balanced by savings in medical, insurance and disability expenses. Visit our website today for complete information.

Ergonomic Products Will Lead Material Handling Gains in U.S.

The material handling industry is on the cusp of a major worldwide growth spurt. Increased automation at home and growing industrialization abroad, particularly in automobile production, are expected to increase worldwide sales of material handling products and systems by 5% a year for the next five years (see our Sept. 22 & 24 posts). Products that maximize worker efforts while decreasing the physical strain on workers will enjoy an ever-increasing share of the market. Particularly in the U.S. where a declining workforce coupled with escalating medical, insurance and workers’ compensation costs will drive a move toward more efficient material handling products, ergonomically-designed equipment and systems are expected to capture an increasing part of the material handling market.

DJ Products is well situated to help you meet the material handling challenges of tomorrow. We manufacture ergonomically-designed material handling carts and tugs designed to maximize work effort and safety. Our energy-efficient electric and battery-powered carts and tugs are less costly, smaller and more maneuverable than the traditional equipment used to move carts and equipment such as forklifts which kill 100 U.S. workers a year and result in 20,000 serious injuries.

All of our products are battery-powered walk-behind units that allow maximum operator control, even in tight, difficult spaces. The flexibility of our ergonomic equipment allows it to be used not only in manufacturing settings, logistics centers and  warehouses, but in hospitals, hotels and motels, and in the retail industry.

We make a number of efficient vehicle pushers for the automotive industry, including some for use on production lines. Our vehicle pushers can be used to push vehicles down and assembly line or move them from station to station. Padded to prevent dents, scratches and cracks, our vehicle movers preserve the paint and integrity of vehicles during production and processing. From our handy car/vehicle pusher to our heavy-duty truck pusher which is capable of moving 10,000 pounds, we make versatile automotive material handling products useful in every aspect of the automotive industry.

For complete information, specifications and videos of our ergonomically-designed carts, tugs and movers in action, visit the DJ Products website.

Why More Companies Are Going Forklift Free

Increasingly, companies are moving to forklift-free production floors. Bulky forklifts that used to be a staple in material handling are being replaced by a more maneuverable, ergonomically-designed powered cart and tug. Safety and high forklift operating/maintenance costs are the two main reasons business is changing its approach to material handling.

  • Every year in the U.S., forklift-related accidents kill nearly 100 workers and seriously injure another 20,000. The leading cause of fatalities is forklift overturns which account for 25% of all forklift-related deaths. Compare that to the zero-death record of ergonomically-designed CartCaddies. And the ergonomic design of these walk-behind electric tuggers drastically reduces worker injury and associated medical, insurance, disability and lost man-hour costs.
  • Over the life of a forklift, operating/maintenance expenses chew up 80% of the total costs. Ownership represents only 20% of a forklift’s total cost. A recent study by the Hyster Company, a major player in the forklift industry, indicates that only 6% of forklift owners know their real maintenance costs, and few companies have cost-reduction programs in place. The annual fuel costs alone for a single forklift can run from $15,000 for gas and diesel to $3,000-$8,000 for battery-charged electric trucks. Compare that to the average $300 per year battery/maintenance expense of operating an ergonomic electric CartCaddy.

Other advantages of implementing a forklift-free program in favor of a more maneuverable, ergonomically-designed powered cart and tug include: inventory reduction, improved material flow, reduction of line-side handling equipment and floor space, improved operator ergonomics, improved scheduling flexibility, reduced coordination time and improved cycle efficiency.

More Tips for Buying Used Material Handling Equipment

Buying used material handling equipment is an attractive option in today’s difficult economic climate. While good bargains are available, the used equipment market is full of charlatans, warns Stafford Sterner in an article on Material Handling Management online. Today we continue the used equipment purchasing tips started in our last post. You’ll find they’re pretty good tips for investigating any company you’re considering doing business with

  • Beware the internet. On the internet it’s easy for a seller to project false impressions about the size of his operation, inventory availability and his experience in the industry. Making an onsite visit may not be practical in the early stages of your equipment search. Sterner suggests viewing satellite images of the seller’s business address on Google Earth to determine whether it’s a legitimate business with onsite inventory or someone arranging sales out of his basement.
  • Avoid part-time sellers. Dealing with a one-man band, people who sell used equipment in their spare time, generally means you’re dealing with an unknowledgeable amateur. Such sellers lack the industry experience to guide you and the resources for post-sale support. Sterner recommends asking for a business phone number in addition to an email address or cell phone number. If calls go to voice mail or the seller isn’t available during business hours, beware.
  • Deal with owners. Avoid brokers who flip equipment with a couple of phone calls, warns Sterner. A legitimate dealer will have invested money in the equipment he sells and will carry inventory you can inspect. Beware if sellers only offer photos.
  • Check financials. If making a large purchase, order a Dun & Bradstreet report (about $100) to check the seller’s financial bona fides. Owners and officers should be clearly listed, along with payment record, any lawsuits filed, incorporation date and number of employees.
  • Ask about follow up. Deal with someone who can service what they sell and check out the repair facilities personally. Beware of companies that outsource repair work, Sterner warns. Outsourcing adds one more layer of cost, scheduling headaches and communication problems to repair issues.
  • Check reputation. Beware of voluntarily offered references which may be carefully screened, instead call local customers or competitors.

When buying used material handling equipment, the take home message seems to be “Buyer Beware!” Purchasing used equipment from a reputable dealer may seem like a practical stop-gap during the recession, but when you add in the cost of increased maintenance and major repairs, it may be more cost-effective to buy new. Whether you buy new or used, it pays to thoroughly investigate prices, equipment and the dealers themselves to ensure you’re getting the best material handling equipment at the best price.

Move Delicate Objects Steadily with a Cart Mover

It’s great to have movers and shakers in your organization…but only if you are referring to people. When it comes to material handling solutions, you want movers but you don’t want shakers. Sometimes when companies use makeshift machines to move their products from place to place, these ad hoc solutions can be more harmful than helpful.

For example, if you need to transport panes of glass, mirrors, or large windows, trying to secure them to a cart that is not made for this kind of work can be disastrous. This is the kind of thing that your workers may do successfully several times but just one mistake or one wrong move could result in a costly and maybe even dangerous accident.

For this kind of work, you can use a DJ Products cart mover. Our CartCaddyHD cart mover provides the pushing and pulling power that is necessary for easy turning and smooth maneuvering with the cart mover. It has a mover arm that can be raised and lowered and securely attached to bottom of any cart. And once the arm is securely attached, the cart mover can pivot a full 180 degrees under the arm, making it possible for the CartCaddyHD to be moved without jackknifing the cart.

There is no need for you to be shaking in your boots each time there is a need to transport a large and possibly fragile order. DJ Products offers a wide array of material handling solutions to help you transport items safely and securely. Please call one of our Sales Engineers at 800-686-2651 to learn more.

Material Handling Industry “Gives Back”

The material handling industry is often focused on ways to make the job easier for its members. Thanks to their generosity, they also lighten the load for those who have a greater need. Here’s a look at some of the recent contributions our industry has made to charities and other deserving recipients.

  • Toyota Material Handling U.S.A. Inc. named the winners of its appropriately titled “Lift a Co-Worker, Lift a Community” contest. People nominated co-workers involved in volunteer work by posting a photo and description on the company’s Facebook page. The five winners were Arbor Day Foundation, Amvets National, Feeding America, Best Friends Animal Society and Direct Relief. Each group received either a pallet truck or cash donation.
  • First Advantage launched an initiative to assist future generations with the establishment of “Kids Around the Corner”. This program enables First Advantage to donate a portion of their profits to local children’s charities based on the requests of their clients.
  • BlueGrace Logistics gave a boost to some four-legged friends in need with its annual “Cats vs. Dogs” pet food drive. In conjunction with AAA Cooper, FedEx Freight and ReedTMS Logistics they raised 44,000 pounds of pet food for the Humane Society of Tampa Bay, FL.
  • Bastian Solutions and its employees made a gracious donation of their time to Shriners Hospital for Children in St. Louis, MO. Participants performed valuable tasks such as disinfecting toys and cleaning surgical towels.

DJ Products is proud to be a part of an industry that shows compassion and care for others. Please call us at 800.686.2651 for help with your material handling solutions.

How to Assess Your Ergonomic Material Handling Needs

Poorly designed workstations and task habits can result in serious health and injury problems for your employees. Back injuries, followed by neck and shoulder injuries are the most commonly experienced injuries in material handling settings. Proper ergonomic equipment design and tasking protocols can prevent potential injury.

Ergonomics is the science of fitting the task to the worker, instead of the other way around. Musculoskeletal injuries can result when workers have to pull, push, lift or stretch in the performance of their tasks. Assessing your ergonomic needs can be as simple as having a conversation with your employees.

Begin by closely examining the workplace and tasks. Review error and accident reports to identify potential problems. Observe how employees actually perform their tasks. Talk to the people who actually do the work. They have the best insights into what is and isn’t working effectively. Ask the following questions:

  • Are you in a comfortable position throughout the performance of your job tasks?
  • Do you experience discomfort, aches, pain, fatigue or stress? At what point in your tasks? Specifically what are you doing when you experience discomfort?
  • Is the equipment appropriate, easy to use and well maintained?
  • Are you satisfied with your workspace and tasks?
  • Are there frequent errors? What are you doing when these occur?
  • Do you have any suggestions for improving your workspace or tasks?

Analyze the responses you receive. Small solutions such as repositioning of task elements can often make a significant difference in worker comfort. Even when large-scale solutions are required, such as equipment purchase, the cost will be quickly defrayed in decreased medical, insurance, workers’ compensation, disability and lost man-hour costs.

On our website, DJ Products provides a useful Ergonomic Load Calculator you can use to help determine your ergonomic equipment needs. Our expert staff can recommend ergonomic product solutions for your most difficult material handling tasks. Visit the DJ Products website to view our complete line of electric and battery-powered ergonomic carts and tugs.