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Training and Technology for TRUCK Manufacturers
SMART BUSINESS: “It's a matter of doing as the customer wants, not necessarily what we want,” as Yale Materials Handling President Don Chance says. “Everyone puts out a good product. We differentiate ourselves by the level of service we provide and by our ability to provide the total solution.”

Competition is fierce. Manufacturers are arming the distribution channel with increased training in order to sell more products. The spirit of partnership is evidenced by making better use of technology and a commitment to understanding the needs of the dealer channel. In response to an onslaught of lower-priced competitors, manufacturers are investing in their R&D efforts and examining resources which can reduce production costs. Manufacturers are committed to building a better mousetrap while maintaining a watchful eye on costs.

“My mission is to grow market share. There are several key players doing battle and Hyster is one of them,” says Paul Laroia, president, Hyster Company (Greenville, NC). While Laroia indicates that 2006 will be only marginally better than 2005, he will place an emphasis on a rollout of new products designed specifically for new market niches. He explains, “Productivity and costs are paramount in the customer's mind. We continually will seek the customer's input, and all of our new products will be designed to meet those objectives. That is where the game will be played in the future.”

Toyota Material Handling, U.S.A., Inc. (Irvine, CA) is utilizing Kaizen activities to remove costs from their operations, counting on the fact that by reducing costs in several little areas, the cumulative effect will be noteworthy. Dr. Shankar Basu, president/CEO, expects sales to increase by 3-5%. A new Customer Relationship Management system will create more efficiencies for both TMHU and its dealers. Basu says that he will emphasize the aftermarket area to support profit improvements, creating programs to enhance the dealers' efficiency. “By better understanding the end-users' needs before the end-user does, we can reduce their cost of the transaction. The key to succeeding in 2006 is to develop a proper balance of growth at the distributor level with the need to grow market share.”

“A new product strategy introducing various enhancements throughout the year will help to support a 5-6% growth in 2006,” says Eric Kobori, vice president of sales and marketing, Komatsu Forklift USA (Covington, GA). Kobori says, “A $3 million investment in a facility expansion and new equipment will accommodate growth, increase efficiencies and support a more aggressive marketing plan.” The facility should be completed in early 2006.

As companies from China heighten their presence in North America, Yale Materials Handling Corporation's (Greenville, NC) challenge is to continually enhance manufacturing processes while maintaining and sustaining market share, and still grow sales by 5-8%. Don Chance, president, says, “Over the next five years, we will see all end-users taking fleet management programs for granted. The real key to growth is continually to grow our fleet and national sales programs and to focus on distributor share growth. It is a coverage issue.” Chance will concentrate on identifying revenue growth opportunities while providing his dealer network with the tools they need to grow their market share through a formalized training program for sales managers at the dealer level. He continues, “The dealer's sales management team is the true coach of the sales force. If we have the best coaches in the field, we will have the best performance.”

“A pick up in dealer aftermarket activity indicates increased usage. A reduced supply of used equipment on the street,” says Brian Butler, president, Linde Lift Truck (Summerville, SC), “will contribute to an increase of 10%.” Linde's R&D department remains busy and is scheduled to launch new products specifically designed for the North American marketplace in 2007, 2008 and 2009. Butler adds, “In order to meet our objective of increased productivity and reduced downtime, we must be identified as the provider of world-class aftermarket products and service. To further support those objectives, we are modernizing our South Carolina facility and adding two or three people to our national sales group.” Butler will spend the bulk of his time interacting with dealers in an effort to focus their attention on Linde products. Butler continues, “By improving parts availability, by maximizing our visibility with the dealer, and by enhancing our understanding of the dealer's business, we can better help that dealer with the customer service side of his business.”

If the economy slows, Mike Sibulkin, vice president, Continental Lift Truck (Jordan, MN), says that his company's used equipment sales will remain level or even show growth over 2005 sales. “We expect sales in 2006 to equal 2005 sales,” he says. “We're adding one or two salespeople during the 1st Quarter, but the real key is locating used equipment. We will hire a person just to do buying.” His plan for 2006 is simple: to stay in contact with his dealer customers via telephone and face-to-face visits.

“An expanded staff, a 10,000-square-foot addition that will facilitate an expanded inventory of used forklifts, new battery chargers, pallet jacks and forks and, new in the 2nd quarter, a line of forklift tires, is setting the stage for a projected growth of 30-40%,” says Ali Jamal, general manager, Jamco International (Cambridge, ON, Canada). Still, remaining competitive is the primary challenge in 2006. Jamal will respond to that challenge by depending on the loyal relationships he has with his customers. He explains, “We are constantly educating our customers about the value that they receive from us. They understand our pricing and the quality that we guarantee.”

“While 2007-09 will be a boom period, 2006 sales are likely to remain even with 2005 sales volume,” says Mel Griffin, president, Lift-Rite (Brampton, ON, Canada). Griffin says that end-users are getting bombarded with low-cost commodity products. In response to that increased pressure brought to bear by the lower-cost provider, Lift-Rite will focus sales efforts on Power Start Technology, an industry first. To be more competitive, Griffin says, “We are focusing on new products. We're also utilizing a redesigned manufacturing process, which will facilitate more competitive pricing. We are also driving home the message that we can offer 24 hours or less distributor delivery anywhere in North America.”

“Some of a projected 3-4% growth in sales will be generated by the big box stores,” says Steve Guagliano, president, Mobile Industries (Batavia, IL). The company plans to introduce new powered products, as well as an assortment of warehouse products. Guagliano says, “We are an alternative source at a lower cost for smaller warehouse products. Yet, increases in raw materials and fuel costs are causing constant pricing hiccups. Suddenly, our vendors have become a part of the transaction with our dealers.” Mobile has recently announced a joint venture alliance with Ningbo Ruyi, located in China, and is building a worldwide alliance with an international freight company. Guagliano continues, “Every day we hear about an obscure trading house that offers dealers a less expensive copycat product. I will be communicating more in face-to-face meetings with the dealer channel in an effort to teach them more about product details, acting as their partner. To succeed, we must be the dealers' number one ally.”

According to Jaap van der Werff, managing director, Frog Navigation Systems (Charlotte, NC), an increased need for automation will support a 5-10% growth in sales for 2006. The company is moving into a new, larger facility during the 1st Quarter in order to create additional inventory space. He says, “We will also add two or three new sales and engineering positions. The uncertainty of the economy is a challenge. We are relatively small in the U.S., so the only way we can grow is to be a little smarter than everyone else as we create smarter solutions.”

Andy Cameron, CEO, Big Joe Mfg (Des Plaines, IL), is cautious when budgeting his sales numbers for 2006. “All indicators point to a 10-15% growth from just core business, subject to change if we see some rather large projects come into fruition.” Cameron will continue to invest in management talent in the sales, marketing and engineering areas. The company is focusing its efforts on enhancing the performance of its products while utilizing moderately cutting-edge technologies. One or two new product introductions are possible by the end of the year. “The distributor channel is evolving,” says Cameron. “We hope to capitalize on an environment of change in which the dealer is less beholding to established flagship manufacturers.”

When it comes to managing a projected growth of 10-15%, Ric Schlesinger, president, Econolift (Mississauga, ON, Canada), has two challenges: first, to continually maintain the quality of his product while keeping pace with his company's sales growth; and second, to continually build a better mousetrap, while maintaining cost efficiencies. He says, “We're moving into a new 35,000- square-foot facility in March. By consolidating our operations, currently located in two buildings, we can be more efficient and eliminate duplicated costs. An additional four support people will further enhance our customer service capabilities.”

Warren Cornil, president, Narrow Aisle (Dallas, TX), says, “Sales are fantastic!” Anticipating growth of 50%, his team is working hard to continue the market awareness that has been established over the last few years. Cornil continues, “There is more market awareness for this type of product. The very narrow aisle concept is taking off. It works. Its cost efficiencies are what the dealer channel is clamoring for, in order to help their customers reduce their operating costs.” Cornil will spend 2006 adding capable salespeople, in order to provide more coverage in specific geographical regions. The company also plans to introduce smaller and larger-capacity trucks to better align itself with market needs.

Internet marketing will drive a 5% growth in sales for Tilt-or-Lift Incorporated (Maumee, OH). Dennis Rober, president, anticipates more government sales in 2006. He says, “I am paying more attention to the bottom line. Our best customers are the people who have done business with us in the past.”

New product launches by Lift Technologies (Guelph, ON, Canada) are slated for the 2nd Quarter. Russ Johnson, director of sales for the Americas, anticipates 2006 sales to be level with 2005. A capital equipment investment campaign together with a facility expansion should be complete during the first half of the year. Johnson says, “My biggest concern this year is to get our costs in line, in order to be more competitive. We are engineering improvements across the board. We are creating value, and we're working with our vendors to generate cost improvements. We are selling our mast expertise to the OEM. Unfortunately, it doesn't make any difference how good your product is, if it's not cost competitive for them.”

Suppliers like Cascade Corporation (Portland, OR) are being asked to focus their efforts on producing profitably in order to protect distributor profitability. Mike Kern, vice president of marketing and sales, expects sales to soften in 2006 by a modest 3%, when compared to 2005. He explains, “When we see pressures on profits, there is more interest in productivity improvements and damage reduction. We must take care of the customer that we have. We're fortunate to have a strong market position, but we cannot afford to act complacent and slow our efforts in support of our customers.” Rather than being the lowest cost provider, Kern will evaluate technological movements in the industry and utilize the latest and best technology to demonstrate performance and cost savings opportunities for the end-user. Kern adds, “We all want to make a profit. It's every bit as important for us to prove how our customers can make a profit as well.”

Superior Engineering (Anderson, SC) is beginning to gain a foothold amongst the OEMs and hopes that OEM sales growth will contribute to a 10-15% increase in sales. Scott McGonigle, vice president of sales, indicates that his number one charge is to make his customers aware of the breadth of his product line. The company will expand its current location by almost half, adding 8,400 square feet. The increased square footage will be utilized for production of an attachment product and will include an expanded warehouse and storage facility, in addition to a new shipping and receiving area. As Superior ramps up its growth, the company will add five or six employees. McGonigle says, “We are constantly looking at pricing and how we compete with our competitors. We keep that in the back of our mind when we're trying to sell our products.” McGonigle will spend more time visiting dealers, performing sales presentations and presenting his products, heightening his company's visibility amongst the dealer channel.

“2006 is a much more difficult year to forecast than each of the past two or three years,” says Evan Wescoe, senior vice president, East Penn Manufacturing Co., Inc. (Lyon Station, PA). Wescoe indicates, “I will be pleased and even mildly surprised if 2006 sales are level with 2005 sales volume. Growth will come from the infrastructure expansion of a North American distribution-based economy. Our economy's base is changing from manufacturing to more distribution of foreign-made goods.” East Penn will continue to develop new technologies in 2006 and 2007 which will produce a commercially viable product in '08 and beyond. Wescoe adds, “Consistency and commitment are the secrets to success in 2006, not necessarily reinventing the wheel.”

Jeff Long, vice president of sales and service, EnerSys (Reading, PA), believes that the market for fast charging technology is experiencing growth in general. He explains, “The traditional battery market of products for the electric truck is being hurt by overall environmental concerns. Those objections are being overcome with the introduction of fast charging technology.” His biggest challenge is just keeping up with demand. He adds, “As long as we can remain focused on delivering a broad product offering and stay strong on service, we will remain competitive.”

An expanded warehouse and distribution-based economy is driving a 4% growth in sales for AMETEK/Prestolite Power & Switch (Troy, OH). Jim Keyser, business manager, says, “We will add sales talent as well as engineering personnel, and focus on operational excellence in order to create more efficiencies.” The company also is working with its suppliers to establish consignment inventory programs. Keyser adds, “We are evaluating lower cost suppliers and the quality associated with their products.”

“Pent-up demand and the need to replace aging equipment is driving a 4-5% growth,” says Bob Grace, vice president of sales and marketing, Douglas Battery Mfg. Co. (Winston-Salem, NC). He adds, “We are concentrating on the fast and opportunity charging batteries and tweaking some of our low-maintenance products.” Douglas Battery will expand its industrial manufacturing facility to make better use of an existing plant formerly used for automotive products. Grace will spend the bulk of his time communicating with customers and focusing on his company's growth in the motive power arena.

La Marche Manufacturing (Des Plaines, IL) is planning on four or five new product introductions with specific applications for several niche markets. Product introductions will begin late in the first quarter and will continue throughout the year. John Pawula, director of sales, anticipates a 4-5% increase. Pawula comments, “We cannot take our relationships with our distributor customers for granted. They are presenting our product to their customers, and it is our number one responsibility to provide them with the support they need in order to succeed in their businesses.”

“An expanded marketing campaign, as well as a new, broader portfolio of products will drive a 10-12% growth in sales,” says Jeff Kilpatrick, vice president of marketing, Shockwatch (Dallas, TX). The company is expanding its sales force by 25% and will hit the streets more aggressively than in years past. Kilpatrick says, “We're introducing several new products within the first half of the year.”

According to Dick Davidson, president, Thombert (Newton, IA), “The overall industry is likely to be level, yet we are hoping to do better than that working for market share gains. But all of our competitors are also claiming to achieve market share gains. At least one of us won't.” Davidson's team will work to improve the level of everything that they bring to the market, including service, delivery and field support. Thombert will ramp up the execution of internal operations and will continue a campaign to institute greater efficiencies which will reduce operational costs. Davidson adds, “We must also develop strategies which will help us to be more competitive in the long-term.”

A stronger focus on new products, a dedicated sales force and a streamlined supply chain will support a 5-10% growth in sales for Trelleborg Wheel Systems (Hartville, OH) sales. Ydo Doornbos, director of marketing and OEM sales, says, “We are redefining how we go to market. We will introduce new compounds, sizes and some line extensions. In an effort to offset the universal cost increases impacting our entire industry, we will fine tune our relationships with our suppliers by maximizing capacity.”

Thom Hronis, vice president of marketing and sales, Solideal Tire (Charlotte, NC), says, “An expanded lift truck population will support a 10-12% growth in 2006 sales.” Hronis expects to expand his personnel roster by 15% over the course of the year. He also says, “The increased costs of raw materials are impacting all of us. No one ever wants to increase their prices. I can look back and note that prior to 2004, we had not experienced a price increase in five years. Now, no matter how we try to hold prices, we have raised them as often as twice a year since 2004.” Hronis and his team are spending time determining processes which allow them to work smarter and reduce costs, in order to offset the increased costs of raw materials which are not necessarily as controllable.

Bill LeMeur, executive vice president, Superior Tire & Rubber Corp. (Warren, PA), is expecting a growth in sales of slightly more than 20%, driven by OEM sales. According to LeMeur, the company is investing in capital equipment, facilities and personnel. “We're considering the development of a new polyurethane production line. We also will explore a building expansion in a new location.” His energies in 2006 will be devoted to managing a lean sales force and helping them to better serve their customers.

Customized Solutions for CONVEYOR Companies
SMART BUSINESS: “We must all read the signals our customers provide,” says TGW-Ermanco's Gordon Hellberg. It has never been more important for manufacturers to listen to the distribution channel and for distributors and manufacturers to hear what their customers are saying. It's not all about price. It's about solutions and the utilization of the systems products that will result in the end-users' greater long-term profitability.

Training will command everyone's attention in 2006. Distributor and employee training is accepted as a matter of course to increased efficiencies and better sales. We will make greater use of the Internet and Webcasts and company personnel will be hitting the pavement in an effort to communicate with more distributors and distributors' employees.

Lean manufacturing strategies are, for many companies, a prerequisite for waste reduction. Bill Hawthorne, vice president of marketing, Hytrol Conveyor Company (Jonesboro, AR), is budgeting for a 6-7% increase over what he describes as the second best year in his company's history. He says, “We are adding 100 people to our workforce in 2006 in order to increase throughput and to meet the increased demand generated by our distributors. We'll work very diligently to improve on-time delivery, quality and profitability, in that order.” The company is focusing its efforts on training both manufacturing personnel as well as the distributor channel. Hawthorne explains, “Our distributors are in the same boat that we are in. We must all grasp a greater understanding of the use of various tools that are available to us via the Internet.”

TGW-ERMANCO (Spring Lake, MI) is in an expansion mode as it introduces new technologies and a new line of pallet conveyor beginning in the 1st Quarter. Gordon Hellberg, vice president, expects growth of a minimum of 15%. He says, “We are providing increased distributor training in new technologies, focusing on automatic storage and retrieval systems and new high-speed sortation technologies. We will also explore a possible future facility expansion in an effort to increase manufacturing capacity.” In an effort to keep up with increased demand, the company will add to its team of manufacturing, product and design engineers, as well as sales personnel. Hellberg is approaching growth with a measure of caution, “We do not want to increase sales to the point of outpacing our ability to support it. Competition in our industry is fierce. Our goal is to out-engineer our competitors, leveraging the strengths of our new, expanded talent. We must all read the signals our customers provide.”

Back-ordered projects, some several years old, are finally being acted on and will contribute to FKI Logistex Warehouse & Distribution's (Cincinnati, OH) 20-25% gain in sales revenue for 2006. Alex Herman, director of integrator sales, says, “The emphasis on distribution itself and the increased value perceived by our customers is spurring them to action. The paybacks are improving and are being realized faster after building a new distribution facility.” The company will introduce a new, faster, quieter, all-electric conveyor product in the 1st Quarter. Herman explains, “Our growth will come as a result of growing our existing distributors' volume, not by adding to their ranks. We will make more pick-to-light products available to our distributor business partners.”

Bill Pugh, president, Ralphs-Pugh (Benicia, CA), says, “There will be continual pressure on margins. I will stress productivity enhancements as we do more retooling. It's necessary to do more with less. We will be generating all-around efficiencies throughout our operations.” Pugh expects his 2006 sales revenue to be level with 2005 and will emphasize product and company awareness in the coming year.

“We need to hustle to become more efficient. We also cannot underestimate the importance of remaining aware of the fact that customer service is what we are about,” says Phil Miller, president, AmbaFlex (Grand Prairie, TX). Miller anticipates growth of 15%, driven by an increased awareness of his product as a viable solution in an active market. The company will complete a facility expansion by the end of the 1st Quarter and will add several positions in sales and engineering.

Matt Delac, vice president of sales and customer support, Ashland Conveyor Products (Ashland, OH), expects his company's sales to increase by 15%. He says, “We are seeing increased activity from larger companies. We're more flexible, and we are capable of completing more unique, larger jobs.” Delac is spending more time listening to his customers to find more opportunities to provide the customized service that his customers need. He says, “I need to make sure that our distributors know that we are going to be there for them in the long-term.”

Mallard Manufacturing (Sterling, IL) is building off the growth it has experienced during the last few years to achieve 20% growth in 2006, which is slightly less than 2005's jump in sales. Mike Gunderson, general manager, explains, “Existing customers are expanding their systems. We are looking for other products to acquire, whether we acquire another company or develop the new products ourselves.”

A healthy backlog and customers who have money to spend will help to support Prime Conveyor's (Merrillville, IN) projected growth of 20-25%. To accommodate this growth, the company is adding 25,000 square feet to its plant, to be completed by the end of the 1st Quarter. Jim Robinson, president, says, “Educating the distributor and his customers is a continuous process.” The company is also teaching communications skills in-house.

Systems Automated Controls (Sylmar, CA) is responding to an improved economy with increased sales efforts, which will generate a growth of 30% in 2006. Jay Easley, president, says, “We have fewer competitors in the field. The last few years were rough. We've always been a very financially conservative company and, fortunately, were able to weather the storm.” Easley will spend the bulk of this coming year recruiting qualified personnel and interacting with his customers.

New Markets and New STORAGE & HANDLING Products
SMART BUSINESS: “Sometimes it just doesn't make sense to compete for an order. Competitors are stealing jobs from each other with little regard for margins,” says Joe Cascio of Borroughs Corporation. Weak margins are causing manufacturers to step back and review their processes, remove whatever fat they can still find (after several years of lean manufacturing) and streamline their operations in order to protect their profits.

When one door closes, the proactive among us tend to open another door. Many manufacturers are finding established markets less active and are entering new markets with new products which have new applications. These new markets will assure manufacturers and their distribution channel of increased sales opportunities.

When industries that were formerly a supplier's bread and butter soften, it's that much more important to develop new business and to provide solutions to new market niches. Barry Templeton, vice president of sales, Engineered Products (Greenville, SC), expects that sales could soften by 5%. In order to drive his company's sales, he will focus more on distributor business supported by a maturing flow product. He explains, “We will sell our capabilities as a custom fabricator. We can function as a consultant, as opposed to a provider of a hunk of steel.”

Expecting a softened economy precipitated by a potential recession in the 2nd Quarter is Fred DeMaio, president, Tri-Boro Shelving & Partition Corp. (Farmville, VA). He says, “Freight cost increases are prohibitive and will push end-users to do business regionally.” In response to pricing pressures brought on by companies located in India and China, DeMaio will upgrade capital equipment to reduce production costs.

Weak margins are placing suppliers in the position of fighting for every order. Joe Cascio, vice president of sales and marketing, Borroughs Corporation (Kalamazoo, MI), expects that his company will maintain the growth it enjoyed in 2005. He explains, “Sometimes it just doesn't make sense to compete for an order. Competitors are stealing jobs from each other with little regard for margins. We are maintaining growth by diversifying our product within non-traditional markets.” Cascio also points to the importance of how storage and handling products fit with RFID technology and how we can capitalize on it to create value-added benefits.

In order to be more of a single source provider, Lyon Workspace Products (Aurora, IL) is introducing new products throughout the year. Pete Webb, vice president of sales and marketing, expects sales to be level with 2005 as he focuses his efforts on his sales personnel and his delivery programs. He says, “We must understand our customers' needs and emphasize the value in our $12 million inventory. We'll spend more time training in order to enhance profitability while maintaining market share.”

“Fewer competitors in the field will drive InCord's (East Haddam, CT) growth,” says Bob Martin, president. Still, in order to at least match 2005's growth in sales, the company must maintain its current customer base and add new business. Martin says, “Just because we have the customer doesn't mean we can take him for granted. Shipping on very short notice keeps our customer base close. It's a full-time job to maintain that relationship.” To insure its ability to deliver on increasingly short notice, Martin is looking for a new building in order to consolidate its operations currently located in two different facilities.

When it comes to forecasting, James Van Loon Jr., president, Sterling Net & Twine Co. (Montclair, NJ), says, “We're going on the basis of 'let's hold our own,' and anything more is a plus.” The company is exploring the possibility of consolidating its facilities and relocating in two or three years. In an effort to reduce costs, Van Loon continues to invest in capital equipment, generating more volume with existing personnel.

Pent-up demand is contributing to Tennsco's (Dickson, TN) sales increase of 5-6%. Hal McCalla, vice president of sales and marketing, says, “The real key is going to be cost control, and we are a very well-tooled manufacturer.” McCalla explains that his company's sales will grow by providing more realistic quotes and concentrating on the objectives that his team has established for the year.

By initiating small improvements, Brian Neuwirth, president, UNEX Manufacturing (Jackson, NJ), will increase market share and grow his sales by 5-10%. He explains, “We are a business that is knowledge-based and looks for ways to provide more solutions in specific niche markets. The challenge is to improve margins.” Neuwirth will spend more wisely and invest his company's time more efficiently. His objective in 2006 is to accomplish as much as he did last year, if not a little bit more, and to be a lot more efficient in spending.

New product introductions will help Nashville Wire Products (Nashville, TN) to sell complete systems as opposed to just wire decking, believes Steve Johnson, national sales manager. He says, “I am hoping for a 10% increase in sales. It's all about relationships with suppliers and better communication. But my number one concern is to develop some sort of handle on projecting the costs of raw materials beyond 10 days out.”

As we move from a manufacturing-based economy to more of a distribution-based economy, there is an increasing number of build-outs of warehouse and distribution facilities. Bill Vain, vice president, business development, Penco Products (Oaks, PA), is looking for a 10% growth in sales. An improved line of shelving to be introduced during the 1st Quarter will support entry into new markets. Vain explains, “We will be focusing more on large system integrators and providing service, service, service and more service. Everyone has relatively similar costs. We must add value in the form of services.”

Based on the activity his company enjoyed during the second half of 2005, Jim Mierke, vice president of sales, Western Pacific Storage Systems (San Dimas, CA), anticipates sales to be up by 10%. He is focused on lean manufacturing techniques in order to remove costs from his operations. Still, he says, “We are adding to our administrative team, primarily because we have been too lean during the last three or four years. Our goal is to deliver product faster than any of our competitors. We're performing a computer system upgrade which will make order entry and shipping more efficient for both us and our distributor customers.”

“A committed and dedicated distributor/dealer base, combined with 2nd and 3rd Quarter new product introductions, will produce a growth in sales of 10%,” says Keith Pignolet, executive vice president, Wildeck (Waukesha, WI). Pignolet explains the foundation his company has laid, in order to grow sales. “In 2005 we eliminated approximately 15% of our dealer base in order to provide increased opportunities for performing dealers to capture more market share in specific regions. We are devoting more time and resources to those performing dealers in order to reduce the cost of the sale.” Pignolet will focus on quality and service in order to sell his product at a reasonable price, not necessarily the lowest price.

Locating qualified installation labor is a challenge. Ed George, president, Professional Material Handling Installation (Odenville, AL), has turned down projects in the past. Still, he expects his company's sales to increase by 10-15%. He says, “We spend $500 to $800 a month on help wanted ads alone. We are exhausting all resources to find people.”

John Gillard, president, Action Installation (San Antonio, TX), believes his sales will be up 20-25%. He says, “It's the best it's been since 1999, driven by increases in a rebuilding of distribution businesses in general and food distribution, in particular. High energy costs are leading distribution companies to relocate in order to shorten travel distances.” Hiring and training qualified personnel remains the number one challenge. Gillard adds, “While distributors continue to look to cut costs on the installation, they are also now, more frequently, evaluating performance.”

The ability to penetrate new markets with five new products that will be introduced throughout the year will support a growth of 10-15% in Rehrig Pacific Company's (Los Angeles, CA) sales. “The key,” says Bill Mashy, general manager, “is to prove to the customer that you can drive their efforts to increase their efficiencies by driving the cost out of their systems.” He adds, “We will round out our relatively young sales organization with two additional positions, and we will push harder to introduce new product offerings in a timely fashion.”

Capital equipment investments of more than $250,000 and a 10% increase in personnel will support the pent-up demand expected by Rich Torbeck, president, Torbeck Industries (Harrison, OH). Anticipating a 10-15% growth in sales, he cautions that the rising costs of doing business will have the greatest impact on the distributor. He explains, “The distributor is caught in the middle between his customer and his manufacturer, when generating a quote that used to be in effect for 30-60 days and is now limited to 30 days. The better distributors and manufacturers are moving into more of a partnering relationship to try to work past market shortages.”

When lead times are extended, business is very good for Pete Foley, vice president, Storage Masters (Binghamton, NY). In 2006, Foley expects sales to be up by 10-15%. He says, “As long as I maintain an adequate inventory and remain service-oriented, we will continue to see growth. It's a matter of anticipating my customers' needs.”

“Increased third-party logistics activity, combined with 2005's year-end quoting activity and reconfigured manufacturing processes, will easily generate a 10% increase in sales,” says Jeff Woroniecki, vice president of sales, Unarco Material Handling (Springfield, TN). Woroniecki, though, is challenging his employees by budgeting for a 15% growth in sales. He says, “I am seeing more larger distributors working on large scale projects. While at one time a distributor did a $30,000 to $50,000 project, he is now working on a multi-million dollar project generating added value for his customer.”

“A more narrow focus and a concentration on premier distributors who are armed with the ability to sell product that is otherwise unavailable, together with new product introductions, will support a 15% growth in sales,” says Bob Lawless, CEO, Creative Storage Systems (Kennesaw, GA). New product introductions scheduled for the 1st and 2nd Quarters of 2006 and the 1st Quarter of 2007 will include new concepts in warehousing that Lawless believes will revolutionize the picking process. Lawless plans to expand manufacturing capacity after adding 40,000 square feet in a new facility. A move to a new location is scheduled for the 3rd Quarter. He says, “With the addition of four salespeople and two engineers, we are getting closer to the distributor as we focus on product quality.”

Craig Chamberlin, president, American Wire Products (Frankfort, KY), points to an environment of continued consolidations among larger distributors and shakeouts in the bottom tier. To maintain a sales growth of 15-20%, he says, “We will continue to do what we do every year, differentiating ourselves from competitors by being more responsive with sales and technical support.”

“A 50% growth in market share will result in a 20% increase in overall sales,” says Thom Champa, marketing manager, Hallowell, div. List Industries (Deerfield Beach, FL). Champa explains, “As a small division of our parent company, our growth has been in triple digits for two of the past three years.” Hallowell will begin moving into a new facility at mid-year and complete the 50,000-square-foot expansion by mid-2007. A new distribution center will be opened in Los Angeles, California, in the spring, and a distribution center in Dallas, Texas, in the fall. Additional salespeople to support each center will be hired. Champa's biggest challenge is to maintain the company's historic high levels of service and quality while experiencing rapid growth. He adds, “We will maintain volume of our stock to provide more choices, more quickly, to more distributors.”

In order to achieve an increase in sales which is projected to be 27%, Dave Weaver, vice president of sales/engineering, SpaceRak, div of EWCO (Marysville, MI), has a checklist which includes an increased sales effort that will be driven by additional salespeople and additional distributors. Weaver says, “We are making more personal visits and improving on our customer service efforts and delivery cycles.”

New products will support Mecalux USA's (Melrose Park, IL) entry into new niche markets. Angel De Arriba, president of the Americas, anticipates a 50% increase in sales. De Arriba explains, “Service is the key to our growth. We will continue to offer aggressive lead times in order to better serve our customer.”

Across-the-Board Increase for GENERAL LINES
SMART BUSINESS: “The distributor channel is driving our activity,” says Hamilton Caster's Steve Lippert. Suppliers are developing closer relationships with the distributors of their products and are not underestimating the distributors' role when selling to the end-user. All manufacturers are spending more time in dialog with their distribution network and asking for more of the distributor's input. More important, when distributors talk, suppliers are listening.

Gary Frette, president, Basiloid Products Corporation (Elnora, IN), expects his sales to continue increasing at the rate of 5-10%. He says, “We've improved our reaction time to market demands. We also have begun offering a new freight initiative in response to our customers' freight budgets.” Frette will spend time reviewing incentive and benefit packages offered to his employees. He explains, “In the midst of continued growth, it's easy to overlook the incentives and benefits offered to long-term employees who are consistently meeting the company's objectives.”

“Pent-up demand will support a growth of 7%,” says Bonny DesJardin, president, Jesco Industries (Litchfield, MI). DesJardin explains, “Recyclers are making greater use of hoppers as steel prices increase. More tightly controlled inventories have never been more important. If the product is not available on a just-in-time basis, customers will look elsewhere. The time element is critical.” DesJardin will spend more time working with her distributors as they work to ask more questions in order to provide optimal solutions.

A new sales director will help to drive Besco Sales & Rental's (Mechanicsburg, PA) sales up by 30%. The company anticipates an expansion of an existing facility, doubling its space during the 1st Quarter 2007. Bob Rhoades, president, says, “We'll spend more time working with the distributor to help their customer to correctly apply the baler product in order to create better utilization of the products. Our approach isn't to market the product. Our approach is to educate our distributors and their customers as to how to use the product.”

“We are hitting on all cylinders,” says Steve Lippert, executive vice president, Hamilton Caster & Mfg (Hamilton, OH), who anticipates sales to increase by 10%. “The distributor channel is driving our activity.” The company will introduce new trucks with ergonomic features in the 1st Quarter. To increase capacity, a second shift will be added. Lippert also plans a mid six-figure capital equipment investment which includes a major acquisition of robots and CNC equipment. “My greatest challenge,” says Lippert, “will be to keep costs under control in the midst of adding capacity. We will keep an eye on productivity numbers and performance measures, closely examining the costs of labor as a percent of sales. In this environment, the fundamental key to success is reacting faster to ship the customer's order quickly.”

“A rollout of eight new products introduced throughout the year, beginning with the 1st Quarter, will help to spur an 8% growth in sales,” says Dennis Jones, president, Shepherd Caster (St. Joseph, MI). Jones has embarked on an organized program implementing lean manufacturing practices throughout Shepherd Caster's facilities. The initiative, which includes a three-year training program, began a year ago. Jones adds, “Our challenge in 2006 is to continue to eliminate waste while targeting sales growth in new markets like the medical sector.”

To compete with lower-priced copycat products, Bob Andrews, president, Morse Manufacturing Company (East Syracuse, NY), will communicate with the distribution channel more proactively. Andrews says, “I am expecting sales to increase by 3-5% due to our increased marketing efforts and new product development. We are asking more questions of the distributors that we work with and heeding what they tell us.”

A new product to be introduced during the 1st Quarter will open new markets and drive Mid-States Manufacturing & Engineering's (Milton, IA) 5% growth in sales. Kevin Early, president, says, “We've established a strong network and will spend more time visiting and catering to them.”

Joe Landsverk, marketing director, Wood's Powr-Grip Co., Inc. (Laurel, MT), does not see any reason to project anything other than the 5-10% growth his company has enjoyed for the past several years. The company is anticipating a plant expansion of 5,000 to 10,000 square feet in order to support a new product and streamline its processes. Landsverk says, “As we move more work that was previously outsourced in-house, we will add personnel in technical sales, marketing and engineering.”

An increase in capital spending combined with profitable alliances with the insurance industry are supporting an increase of 20-30%, which Claus Lendal, president, Ergomat (Westlake, OH), says is typical of his company's annual growth. He explains, “The insurance industry is looking closely at products which enhance worker safety. As insurance companies note the history of reduced Workers' Compensation claims, they are creating cost savings benefits for the end-user.” Lendal anticipates adding three additional insurance companies to his roster of allies in the Workers' Compensation arena. As his company grows, adding 6 to 10 new sales and evaluation employees, his number one focus is to assimilate those new employees into his company's existing culture.

TECHNOLOGY Alliances Spike Increases
SMART BUSINESS: “All of us need to reinvent ourselves and look outside of the box,” says Products For Industry's Mike Smith. New alliances with manufacturers are stimulating technology providers' sales activity with the distribution channel. As technology enhances shared information, everyone benefits. It has never been more important to convey information more quickly or in a more efficient manner. And the providers of technology are there with the product, the training and continued support required by both manufacturers and distributors.

“An expanded sales force is proactively building relationships with the distributor channel and will generate a 20% increase in sales,” says Mike Smith, sales/marketing manager, Products For Industry (Milwaukee, WI). Additionally, the company has been just as proactive in its effort to reactivate companies that have been less active. Smith indicates that his company is moving into new markets in which there is room for growth. He says, “I think all of us need to reinvent ourselves and look outside of the box sometimes. We are creating a solution that will lower the cost that we provide to our dealer network for products. We are all working toward the same goal.”

Bill Ault, general manager, Equipment Data Associates (Charlotte, NC), expects to increase his company's sales by 15%, driven by a new product introduction during the 1st Quarter. He explains, “The Web-based technology allows the end-user to manipulate data and access previously unavailable data.” The company will move into a new 12,000-square-foot facility in 2006 providing additional sales offices. Ault is also installing and rolling out a Microsoft CRM software package which will better manage the distributors' customer and prospects database.

“It's important to balance the opportunity for growth with near-term revenue,” says Bob Brim, CEO, DIS (Bellingham, WA). Brim anticipates a moderate increase in sales, citing the significant technological changes that have taken place during the last few years as being perceived more practical by the dealer channel. He says, “In 2006, we will do more missionary work, which will result in significant growth in 2008. Dealers can take advantage of new technology which allows for a higher degree of customer service, providing personnel more access to more information.” DIS will add seven or eight developers in 2006, as it focuses on new products utilizing RFID technology for inventory control and rental management to be introduced at mid-year. Additionally, new technologies specific to Web application will be introduced throughout the year.

A very busy, long sales cycle is cause for Terry Eutsler, president, Softbase Development, Inc. (Houston, TX), to project a sales increase of 20%. A new office to be built in 2006 will provide room for an end-user training center. Eutsler says, “We have succeeded through word-of-mouth from day one and it is snowballing. Our reputation is working for us.”

According to Bob Walters, president, Edgerton Corporation (Strongsville, OH), “The acquisition of the Irium product has caused our sales to skyrocket.” Projecting a sales increase of 50%, the company is busy hiring 20 employees at the Ohio headquarters and an additional four at its Tampa, Florida, office. Walters says, “We are practically booked through August 2006. We are controlling anticipated growth by being selective in who we accept as customers. This is the first time in our history that we have been in the position to say no to a prospect. We have to be very careful to ensure our growth.”

“A broader acceptance of the product we bring to the market, together with increased activity from Yale Materials Handling dealers, will support a projected increase in sales of over 50%,” says Jim Wenninger, president, WennSoft (New Berlin, WI). A dealer portal for OEMs to warranty service claims electronically, to be introduced in the 2nd Quarter, will enhance the exchange of information between dealers and manufacturers. WennSoft will add 8-10 new employees to work in product development, product installation and sales. The biggest challenge in 2006 will be to add personnel who fit the WennSoft team. Wenninger explains, “We're finding that it isn't just the case that we place an ad to fill a position. We are actively recruiting all year long and when we find the right candidate, we hire.”

“A first release of a Windows-based software is helping to drive a 60% increase in sales,” says Glenn Viney, president, Silk Systems (Port Coquitlam, BC, Canada). Viney adds, “A new project with Yale Materials Handling as a preferred vendor, together with an EDI system for Yale and Yale dealers, will also contribute to our growth. Our intent is that at some point we will move into the U.S. Our preference would be to buy an existing company. If opportunity comes, we are financially prepared to act on it. It's just a matter of finding the right opportunity.” The company plans to add three or four new developers in an effort to support its planned introduction of new handheld devices. Similar to other companies, the recruitment and retention of qualified personnel is the company's biggest challenge. Viney explains, “I don't think that will ever change in a software company. When you display your product to the end-user, they're always wowed about what it can do, but you have to understand that behind that “wow factor” is a person who actually wrote the program, a person who designed the program, someone who will train the end-user on the program, and someone who will answer the end-user's questions on a help line. It's all about people. In a software company, that will never change.”

When it comes to challenges, 2006 will bring its share. However, 2006 also will be a year of new opportunities to show what we as an industry are made of. Be assured, the manufacturers of material handling products and the distribution channel that markets their products are made of the right stuff.