A Past, Present and Future Look at the Material Handling Equipment
Industry in North America

A Past, Present and Future Look at the Material Handling Equipment Industry in North America

By Mark Rossler, Corporate General Product Manager, Linde Material Handling - NA

The North American material handling equipment industry has chalked up many milestones since the early days of adapting rail-terminal baggage carts to transport duties.  Following the introduction of electric powered mobile cranes, first specified by the War Department in 1915, the industry evolved rapidly during the 1920’s.  Initially pioneering the use of counter-balanced electric fork-lift-trucks, these were soon followed by internal combustion engine powered models.  Starting in the 1930’s the growing popularity of I.C. trucks firmly established them as a strategically vital component in our defense logistics chain.  During the 1950’s and 1960’s fork-lift-trucks became practically indispensable, taking over the bulk of material handling duties in countless factories, mills, storage yards, transportation centers and warehouses from coast-to-coast.  The last 10-15 years have seen truck designs refined further in terms of cleaner more reliable and certainly more comfortable and energy efficient end products entering the marketplace. 

At the present time we are experiencing increasing customer interest in fleet conversions.  Especially the application of electric counter-balanced lift trucks is rapidly gaining momentum.  Last summer’s fuel cost spikes played a big role in reminding everyone about how vulnerable we are to volatility in the oil markets.  This new reality will most likely remain a permanent fact of everyday life.  At the same time new technology has been applied.  A number of manufacturers now offer high voltage (80V) counterbalanced electric truck designs.  The higher voltage machines are not just designed to boost productivity by replacing existing 36/48V models.  They are also much more suited to replacing I.C. engine powered equipment, both indoors as well as outside.  Modern high-voltage electric trucks incorporate proven technology and yield the following primary advantages:

1. Reduced energy consumption and maintenance requirements
2. High energy efficiency and performance
3. Extremely clean operation

These days we are also hearing a lot about hybrid drive.  Hybrid industrial trucks are nothing new even though auto industry marketing would have you believe that this technology is both modern and revolutionary.  Most recently hybrid drive has been resurrected by a number of automobile manufacturers, primarily in an effort to reinvent them-selves yet again.  Here in North America hybrid drive dates back to 1952 in our industry, as those who remember the Baker Gas-O-Matic series will document, and back in time even further on the automotive side, all the way back to the Owen Magnetic Automobiles built right here in the USA from 1913 to 1922.  Hybrid drive technology increases vehicle control and operating efficiency substantially when compared to the use of conventional automatic/torque-converter type transmissions.  It also adds additional components and assemblies, increasing costs and requiring specialized electronic as well as mechanical service capabilities in the after-market. 

Hydrogen power offers additional major benefits.  Especially for low-lift type trucks operating in warehouse environments, this zero emissions propulsion technology, save pure water vapor, shows much promise.  The current cost and life expectancy of hardware plus a refueling infrastructure not yet developed on a broad basis make it a possible longer-term option on a larger scale, especially if it continues to gain momentum on the automotive front.  There is an educational process involved in getting people at the end-user level to fully understand the benefits associated with hydrogen propulsion.

From a practical perspective the material handling equipment user-base in North America will continue to utilize sizeable quantities of Liquid Propane Gas (LPG) powered trucks as well as diesel and some gasoline engine models well into the future.  A high degree of versatility as well as work capability and an existing refueling infrastructure continue to make I.C. engine powered lift-trucks a preferred choice for many, especially those end-users requiring high load and high lifting capacity machines.

What major challenges will test our industry during the next decade?

1. Dwindling resources (natural/economic)
2. The rising cost of energy
3. Increasing competitive pressure

We should heed an old proverb, originally attributed to St. Bernard of Clarvaux, (1091-1153) that the road to hell is paved with good intentions.  Everybody wants to be the first to guarantee the lowest energy consumption, lowest levels of equipment maintenance, smartest accident avoidance technology, longest warranties and fail-safe support.  Of course you get all of the above at the lowest price, resulting in totally ecstatic customers.  The well-known science fiction writer Isaac Asimov once observed “The saddest aspect of life right now is that science gathers knowledge faster than society gathers wisdom”.  We must remain open to change and innovation but should never forget that it is better to promise less and to deliver more. 

The material handling equipment business is changing rapidly.  Less and less of the original nuts and bolts philosophy practiced by the old-timers who dominated the vocation back in the 1960’s and 1970’s is still in evidence today.  The automotive rub-off on this business has been extensive and the future will no doubt be dictated by global economic strategies and ever more restrictive financial realities.  Yet the industry still inspires professionals to excel every single day.  The people are genuine, the rewards are real and colleagues may switch brands but remain friends.  The most critical need now is for new blood.  Employers must figure out more effective ways to attract and most importantly retain quality people.  This will ultimately determine whether the material handling equipment industry will represent a viable career path as it enters its second century.

About the Author:

Mark Rossler is Corporate General Product Manager for Linde Material Handling North America Corporation.

Mark received his BA from Lake Forest College, Lake Forest, Illinois and his MBA from American Graduate School (Thunderbird), Glendale, Arizona. Mark’s primary responsibilities with Linde in Europe and North America since 1977 include Sales/Marketing/Product Management.

Linde Material Handling North America Corporation (LMH-NA) is a subsidiary of Linde Material Handling and part of the KION Group. Linde Material Handling manufactures a full range of mobile equipment including electric and engine powered counterbalanced fork-lift trucks, laden and empty container handlers as well as low and high-lift warehouse trucks and tractors. Linde equipment is available on a global basis.