As we've shown in other blog posts, forklift ownership can have advantages in certain operations over other financing options, such as short-term rental or leasing.
The forklift world is rapidly changing, and manufacturers are constantly releasing new models and products to keep up with the market's demands - whether that means better ergonomics, more stable masts, or innovative attachments made for handling specific products.
With proper service and maintenance, a high-quality forklift truck can put in years of service, even in a busy materials handling operation. And depending on the unique requirements of your operation, an older used machine could potentially do the job just as well as a brand new truck.
So, it's finally here - on 1st January, IFRS 16 Leases came into effect in Europe and beyond. However, in the materials handling industry, where forklift leasing is common, there's still some uncertainty about what the new regulations mean, and how financial reporting will change.
When procuring new forklift trucks, it may be tempting to go for the machine with the lowest purchase price.
However, trying to get the most for your money based on this single cost is the wrong approach. The truck's sticker price is one thing, but a much bigger share of the costs that will come with your forklift during the time you own it, come after the purchase, during its operation.
As anyone who's been responsible for costs in a warehouse knows, order picking is often the most expensive warehouse operation.
Loading and unloading naturally has associated costs, and stacking can be expensive - but neither come close to the cost of order picking.
