If you hire a car, you know you'll be expected to return it in the same condition as when you took it away – right down to a full tank of fuel. Why should a forklift truck be any different? That's the question posed to manufacturers by David Ellison, chief exec of the Fork Lift Truck Association (FLTA).
The expectations should be compared with that of leasing a car, he says. "You know it won't be accepted back with a cracked windscreen, bald tyres or a broken mirror. If it is, then you know you will have to pay. Why should a forklift truck be any different?"
Damage to forklift trucks is a costly business, not only in terms of truck downtime, but also cost to the user because repair for anything outside of normal wear and tear will be chargeable on top of the contract hire bill.
But why are forklift trucks subject to so many bumps and scrapes? Ellison explains: "If you do hire or lease a car, you probably don't drive it down narrow alleyways – in reverse – all day long, or carry out multiple three-point turns, each time seeing how close you can get to the side of a lorry all day long. This is where a forklift truck is different."
There is a temptation to think that a forklift is just a lump of steel that is immune to bumps and bangs, he adds. Certainly it's designed as a workhorse and it will take more punishment than the typical family saloon car. "But – and herein lies the rub – if it does get damaged, it can cost a lot more than you would imagine," he warns.
"Because of its strength, damage to a forklift truck tends to result in damage to other components. A truck's exterior normally protects its hydraulic and electronic systems. When this protection is compromised, these vulnerable and more valuable items are exposed to risk." What's more, says Ellison, it's often impossible to repair safety-related features, such as an overhead guard: "The price of a replacement will vary from model to model, but you can expect the total cost to be several thousand pounds."
Seats are amongst the most frequently abused items, says the FLTA. Genuine wear will be accepted at the end of a contract. Holes and rips, however, are not general wear and tear, they are considered chargeable damage. Fitting a replacement seat can easily cost several hundred pounds.
As the FLTA points out, the cost of not looking after a forklift truck on contract hire can be greater than you think. So it is in your best interest to get this right and the association offers some useful tips (see p49).
One careful driver
While it's fair to say that some operating environments are harsher than others – and are therefore more likely to be sites where trucks suffer damage – there is one thing that most of the truck manufacturers and suppliers agree on when it comes to equipment damage: the driver.
As Cesab Material Handling UK's general manager Terry Stephens says: "Nine times out of ten, driving skills, or a lack of them, are the problem. Untrained drivers, who either don't know how to operate a truck properly, drive too fast or are unwittingly careless, can often be the root cause of truck damage.
"Any truck in untrained hands can end up damaged and hitting profits, which is why all Cesab dealers provide operator training." Stephens says it's critical that forklift drivers, whether they are at beginner or advanced level, are given regular training. "If businesses live by the mantra of quality people, quality equipment and quality training, they won't go far wrong."
There are measures you can take, in addition to training, to minimise operator error. Gavin Wickham, operations director at Briggs Equipment – UK distributor of Yale forklift trucks – says that technology can play a key role in reducing damage costs. He highlights Briggs' SpeedShield system: "In the majority of cases, damage is caused by driver error and systems such as SpeedShield can help influence operator behaviour and ensure that the correct safety procedures are followed."
Waste management firm Viridor, for example, was experiencing damage costs of around £5,000 per month but such was the improvement when it trialled the SpeedShield system, that the firm decided to roll it out to other sites around the UK.
"Every workplace is different, but we see a common set of causes for most instances of damage to forklift trucks," comments Wickham. "Such incidents can prove expensive, in terms of repair costs and downtime and, in the most extreme cases, they can also cause injuries to operators or other staff. However, we believe that in the vast majority of cases the damage is preventable and there are a few simple steps that businesses can take to ensure that accidents – and the associated repair costs – are kept to a minimum."
He urges managers to always ensure that:
- the equipment is up to the task and the environment in which it is operating
- regular checks are carried out on safety critical systems and components on the trucks
- operators are suitably trained and supervised
- proper thought is given to the layout of the warehouse/operating area
- a repair/maintenance arrangement is in place that allows for a rapid response should something go wrong.
Another example of where Briggs has helped to reduce repair costs can be seen at battery recycling business, Envirowales.
The company is anticipating saving up to £500,000 in damage and maintenance costs over the course of a contract, thanks to a bespoke fleet of forklift trucks supplied by Briggs.
As part of a new five-year deal, Envirowales has taken delivery of seven Yale 4-tonne diesel trucks and one 12-tonne diesel truck.
The tough environment faced by trucks at Envirowales' South Wales facility had cost the company more than £100,000 in servicing and damage costs every year – expenditure it was keen to reduce.
Craig Williams, yard and materials movement manager at Envirowales, explains: "Our site presents a tough challenge for trucks and other materials handling equipment. As a result we needed robust machines to cope with our site conditions and a service partner to provide optimum uptime.
"Following an extensive tender process, we were impressed by Brigg's special approach to maintenance and innovative machine modifications." The modifications include an open chassis design, vented bonnet and a lint screen in front of the radiator to prevent dust from settling.
Williams adds: "Our machines do 1,000 hours per year which would usually only warrant up to three service visits. Briggs decided to allocate a day each week for preventative maintenance to keep the machines running and dust free. This was a really proactive approach which means our operations will run more efficiently."
The trucks are fitted with the Speedshield system which has been sealed and protected from dust and water. Envirowales and Briggs believe the system could cut operator-related damage costs by at least 30%.
Ownership issues
While most of the leading trucks boast an array of high-tech features, some suppliers have also come up with simple, low-tech, yet highly effective means of helping customers to reduce damage.
One such example is Toyota's Material Handling's Pride in Performance scheme, aimed at supervisors and operators, which uses CDs, posters and certificates to bring home the message that damage costs – and to increase levels of ownership among truck drivers.
Toyota says one of its major customers began to use the Pride in Performance scheme and saw savings of £85,000 in the first year. Damage costs reduced from an average of over £9 per truck per week to £2.30.
Accountability is a point echoed by Roger Massey of Barloworld Handling, UK distributor of Hyster trucks. He urges companies to consider the benefits of fleet management systems, which collect, report and analyse truck performance data. They also log impacts – making drivers more accountable for their actions.
Barloworld offers a telemetry device which is compatible with any type or make of forklift truck, says Massey. It interfaces with the truck's management system and automatically records performance data, which is transmitted to Barloworld daily. "The system integrates with the Canbus nervous system of the latest Hyster forklift trucks and captures equipment fault codes automatically as and when they occur, helping us to identify any problems. The system also records impacts over a set level of severity and sends an email notification to notify the customer of any accidents as they arise. With enhanced management awareness, damage reduction can be targeted, leading to significant cost savings."
Massey also points out that the best driver training schemes can only deliver benefit if the customer knows precisely who is driving which machine: "Employers should ensure systems are in place so that only trained personnel operate specific equipment," he says. "A common cause of accidents is a lack of awareness of the characteristics of a particular type of truck such as rear steering. PIN access systems fitted to lift trucks can prevent temporary staff or visiting lorry drivers for example borrowing equipment they are unauthorised to drive."
Counting the cost
Industry experts reckon that for every £1 spent repairing damage to a forklift truck, up to £10 will be incurred repairing associated equipment such as the product, racking or building infrastructure.
Toyota Material Handling provides a useful calculation which paints a stark picture of the true cost of damage for the largest and smallest truck users:
- A business with 200 trucks on a multi-shift operation could face an annual repair bill for the vehicles of £250,000 or more – with the potential knock-on cost to goods and equipment of £2.5 million
- A business with one truck on a multi-shift operation could incur £850 per annum in truck repair costs, but even this extends to £8,500 per annum when the associated costs are factored in.
Damage limitation exercise
The FLTA offers some tips to businesses hiring forklift trucks:
Do:
- Ensure you have a written hire agreement or contract that you have read and understood.
- Check the truck on delivery and record any damage or deficiencies.
- Make sure you and your supplier have a copy of the same handover certificate.
- Make all of your operators aware of how to operate and look after the truck.
- Establish and maintain a system of recorded daily or pre-shift checks.
- Deal with faults and damage as they occur – do not allow them to deteriorate.
- Ensure that your truck is serviced in accordance with the manufacturer's requirements. (Usually this is part of your contract, but you must allow the truck supplier access to do this work when it is due.)
- Make operators and supervisors aware that damage will have to paid for.
Don't:
- Hire a truck on a verbal agreement.
- Allow untrained personnel to operate or even move the truck.
- Authorise the truck to be used on unsuitable ground or in unsuitable areas.
- Permit the truck to be overloaded.
- Ignore inappropriate use of the truck.
- Neglect unwanted drips of oil and other fluids – these are often symptoms of something more serious developing.
- Overlook minor scratches to bodywork. These are the telltale signs of careless operators and the next scratch or dent may cost you a lot of money.
