Material Handling Wholesaler - May 2016 by Material Handling Wholesaler

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May 2016 • Vol. 37 No. 5

Dean Millius General Manager/Publisher

Human Element Caliper Corporation

Why should we think about succession planning?

20 34 Photo courtesy MHEDA

Cover Story 61st Annual MHEDA Convention & Exhibitors’ Showcase

Aftermarket

John Walker

Would you like to increase your market share?

Bottom Line

Beware of the bad sales advice you see online

Your Business

Eileen Schmidt

Thombert moves into 7th decade of operation

14 Nuts & Bolts 24 Shifting Gears

32 Industry Insight

Garry Bartecki

One good one

Kathy Regan Editor

acoffman@MHWmag.com editorial@MHWmag.com

Valerie Vorwald Eric Faramus Graphic Designers

art@MHWmag.com

Material Handling Wholesaler: (ISSN # 2155-3467) is published monthly for new and used equipment dealers, equipment manufacturers, manufacturer’s reps, parts suppliers, and service facilities serving the material handling industry. Editorial opinions expressed herein are the author’s and do not necessarily reflect the opinions of Material Handling Wholesaler. All material contained herein is protected by copyright laws and owned by Specialty Publications International Inc.

ADVERTISING CALL 877.638.6190 Email: dmillius@MHWmag.com • acoffman@MHWmag.com Material Handling Wholesaler reserves the right to reject or cancel any advertising for any reason, at any time. Advertisements that simulate Material Handling Wholesaler editorial matter in appearance or style or that are not immediately identifiable as advertisements are not acceptable.

SUBSCRIPTIONS: Third class subscriptions are free to qualified firms. First class: $89.95 per year. Foreign First Class: $415 Surface: $310 per year. Mexico and Canada Surface $145 Airmail $175. Single copies: $10.00 each.

Reader Resources

Columns 8

Art Sobzcak

Industry News

Passion with Purpose

Sales Trends

Alva Coffman Account Executive

dmillius@MHWmag.com

30 Classified

36 New Products

46 Source Directory

50 Advertiser’s Index

In the next issue ...

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May 2016

Cover Story

61st Annual MHEDA Convention & Exhibitors’ Showcase April 30 - May 4, 2016 Gaylord National Resort National Harbor, Maryland Doing business in 2016 is not just about transactions with customers. It’s about interactions with the world around you. MHEDA’s convention theme, “Passion with Purpose” was born by tapping into the notion that companies making a conscious effort to connect with their community will financially outperform their peers by a significant margin. Passion is defined as a powerful or compelling emotion or feeling. Passion with Purpose defines those companies that are reaching a different level of success by creating strong partnership bonds with their five stakeholders customers, employees, suppliers, owners and community. These companies have been examined in several books and are referred to as Firms of Endearment, Companies with a Soul, and Conscious Companies. Organizations are finding that creating connections with their communities (and their other stakeholders) resonates with their workforce…especially millennials. It gives them a cause that is greater than themselves or the

company they work for. This is creating better morale, higher productivity and increased employee engagement. To help our members create passion within their organizations, MHEDA has designed a Convention agenda of forward looking speakers who can help you inspire you team, maximize technology, engage customers and understand industry trends. Beyond the presentations, this event includes an Exhibitors’ Showcase featuring over 90 companies who have the products and services you have been looking for. Most essential of all is the crucial networking you will achieve with over 500 of your peers in just a few short days away from the office. Make plans today to be part of this powerful industry event…we promise you will leave feeing inspired and refreshed! Outlined here is a list of convention presentations. For more event details, read reviews from your peers about last year’s convention, and see who is already registered visit www.mheda.org/convention or call 847-680-3500.

Photo courtesy MHEDA

www.MHWmag.com

May 2016

Keynote Presentation A Patriot’s Calling: Leadership, Teamwork and Sacrifice Presented by Major Dan Rooney, USAF

From the outside, flying an F-16 jet looks like a very independent act, one pilot maneuvering one plane. But when you go into combat, fighter pilots in a squadron must form one unit that has a common mission working toward a common objective. As a pilot who served three tours of combat in Iraq, Major Dan Rooney knows the importance of working as a team when the stakes could not be higher. In his powerful presentations, Rooney highlights the importance of personal

Prosperity in the Age of Decline Presented by Brian Beaulieu, ITR Economics.

The global economy is experiencing asynchronous business cycle pressures. Knowing who is gaining, and who is not, makes a difference in understanding future pricing and competitive pressures. One facet seems “good-to-go” for now and that is the ability of the US consumer to drive this economy forward. But how long can that continue in the face of mounting government fiscal pressures? We will take a look at these issues, and others, at the MHEDA Convention.

Global Citizenship – A Guide to Unleashing your Potential & Contributing to Humanity

accountability, working together and ultimately having the backs of your team when you are on the line. Having dedicated his life’s mission to founding and running Folds of Honor—a non-profit organization that provides scholarships to the spouses and children of military service members disabled or killed in action—Rooney speaks with authority as someone who lives his life in service of those who have served.

The Six Biggest Trends, Techniques and Tools for Finding and Motivating the Very Best Presented by Gene Marks, Columnist and Business Owner

Learn where to go to find the best people; retention tools; technologies for managing your remote employees and more.

How to Use Mobile, Social, and Digital Tools to Improve Your Marketing Efforts Presented by Jamie Turner, 60-Second Marketer

The secret to success in B2B marketing isn't to jump on the latest platform. Instead, it's to understand the secrets of B2B consumer behavior and to apply those secrets to your existing campaigns.

Presented by Chris Bashinelli, Actor, Activist, TV Host.

Women Mean Business

How can a kid from Brooklyn attract major sponsorships from companies like Ben & Jerry’s Ice Cream and create an International TV show for PBS and the National Geographic Channel? Join this expedition from the slums of Haiti to the peak of Mt. Kilimanjaro to push your boundaries of what’s possible in business and in life. Colored with engaging audience participation and jaw-dropping footage, discover how we can unleash our potential by adopting an unwavering commitment to serve others.

Presented by Judy Hoberman, Sales Expert and Author

The Cyber Blacklist: Top Threats & Countermeasures for Data Security Presented by John Sileo, President and CEO, Sileo Group, Identity Theft and Cyber Security Expert.

Technology evolves so quickly that people fall behind the digital curve and feel overwhelmed by the prospect of protecting the very data that underlies their wealth. This crash course forges a high-level, non-technical path through the sometimes confusing web of computer security, mobile technology, Internet connectivity, online privacy and cloud computing. When it comes to cyber security, you don’t have to do everything, just the right things. Gain an actionable list of next steps necessary to protect your data, your devices and yourself.

Roundtable Discussions Discuss the challenges and opportunities that matter most to you and learn how others in the industry are handling the same issues.

Don’t be fooled by the name, as this is not a woman only presentation. Having a good representation of women on your team will have a positive impact on your bottom line.

Industry Consolidation and Your Exit Strategy: Opportunities & Threats Presented by Michael Marks, Indian River Consulting Group

The pace of consolidation is increasing and it affects both dealers and OEMs. Review what is driving this trend and how it will play out in our industry.

Member Panel: Community Minded Organizations Learn what fellow members are doing to help their communities and inspire their employees.

Maximize Your Mobile Device: The Five Things Every Material Handling Professional Should Be Able to Do from a Mobile Device Presented by Beth Ziesenis, Your Nerdy Best Friend

Discover tech tools you can use from your mobile device to make you more efficient and organized.

Data Mining & Predictive Analytics Presented by Michael Marks, Indian River Consulting Group

Gain a practical understanding of tools available for data mining and predictive analytics.

Cyber Security Presented by John Sileo, Identity Theft and Cyber Security Expert

Learn actionable, non-technical steps to protect your company. www.MHWmag.com

May 2016

Cover Story

Reel Rotator Avoid Strain on Arms and Back l

From DC to Silicon Valley: 3 Hot Power Trends That Will Impact Your Company Through 2018 Presented by Gene Marks, Columnist and Business Owner

Review trends that will impact your business and also discuss areas of growth.

For safety reasons gripping arms cannot open by mistake Manual and electric rotation

Net Promoter Score: Using Net Promoter Score (NPS) to Measure, Manage and Improve Your Service Presented by MHEDA Member Lynn Daniel, The Daniel Group

Learn how NPS is calculated, why better service is more important than ever, how to establish a program in your dealership and more.

Engaging Customers: Tech Tools to Be a Connection, Not a Commodity Presented by Beth Zielenis , Your Nerdy Best Friend

Discover the best tech tools to help your customers feel appreciated, communicate your company’s personality and discover insights about your clients. l

Available in fork over and straddle design

To learn more about MHEDA’s convention, visit www.mheda.org/convention. MHEDA grows material handling distributors into industry leaders through exclusive networking, educational and business development opportunities. See how at www.mheda.org or call 847-680-3500 today!

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May 2016

Aftermarket John R. Walker

Would you like to increase your market share? If you are an equipment dealer, you are probably thinking that this has to be the most stupid question you have ever been asked. Hey, it’s an election year; the media is allowed to ask dumb questions. As an equipment dealer you are accustomed to being told (in sometimes impolite terms) that you had better figure out how to (quickly) increase your dealership’s market share. Dealers in every industry are being pressured on a regular basis to improve their market share. It has become the nature of the beast. We became familiar with the term market share well over 50 years ago. Its usage has grown to the point where it has become the number one issue between manufacturers and equipment dealers today. Who benefits from increased market share? Is it equipment dealers? If so, how do they benefit? Dealers are constantly being asked (or told) to reduce their equipment margins. Margins on equipment sales today in most industries have dropped to the low single digits, with no end in sight. If a dealer’s market share drops, then he is given a warning and a time limit for reaching the manufacturers’ arbitrary goal. In some cases, the dealer is given an option: To be either a buyer or seller of the manufacturer’s line of products. If a dealer chooses to become a seller, he will be told to whom he can sell his dealership.

Does the supplier/manufacturer benefit from increased market share? This question is impossible to answer, as the availability of hard number is very limited. I’ve been told it makes stockholders very happy. In many instances, corporate officers and management personnel received bonuses based upon market share. That is one of the reasons market share pressure builds at the end of the manufacturer’s fiscal year. Herb Kelleher, who successfully started and grew Southwest Airlines, made this comment: “Market share has nothing to do with profitability. Market share says we just want to be big and we don’t care whether we make money doing it!” On November 29, 2011, American Airlines, one of our country’s largest airlines, filed Chapter 11 bankruptcy. I have a soft spot in my heart for American Airlines. My first airplane flight was with American in August of 1948, on a DC-3 out of Mexico City. It was my beginning of a long relationship with the airlines. Unfortunately I had the opportunity of seeing many, many airlines over my years suffer the same fate as American. I am only glad to see, however that the name American Airlines still flies the skies. The ultimate goal of not only American but of so many other airlines was to be the leader in market share, even if that goal meant the destruction of their profit margins.

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May 2016

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Aftermarket Did all these failures have anything to do with a sagging economy, high fuel prices or unemployment? This is quite likely, but in many experts’ opinions it goes deeper than that. It stems from an overall attitude of indifference from the top down in corporate offices. As reported by numerous news agencies, this indifference results in deteriorating and then destroying customer satisfaction. Let’s carry this over to the equipment industry. The dealer’s basic function as a customer (a definition we’ve always disputed) of the manufacturer and/or supplier is to both sell and service the products produced by the manufacturer/supplier. These two functions, plus the handling of used equipment, are functions the manufacturer/supplier cannot perform. Equipment manufactured today is extremely sophisticated and becoming more and more complicated and difficult to service. One thing that has never changed in the market place is the customer’s concern about service after the sale. Customers cannot afford any unscheduled down time. They want to know that after the sale there will be someone there to take care of their service needs and requirements. They continue to want high parts availability and quick service response time. As mentioned in so many of our articles, most equipment dealers have a low service contribution to sales percentage. In all too many cases, this contribution is below 10 percent, and 10% is mediocre at best. As we mentioned in so many of our articles over the years, it is the dealer’s service department that carries the dealership’s highest margins.

This is why we constantly point out to dealers that if they are going to continue to reduce their margins on high priced equipment, they had better develop a solid marketing plan for selling customers the dealership’s services after the sale. If this does not happen, even the 5-6 percent service contribution will begin to erode as customers: 1) try to do the work themselves, 2) seek out independent shops, 3) give the shade tree technicians an opportunity, or 4) seek out those fleet management companies that are beginning to develop throughout the country. Dealers can ill afford to lose even that meager five percent service contribution. If they lose that, their cash flow will begin to dry up while their absorption rate will drop dramatically. Most dealers will tell you the one problem or hesitation in increasing service contribution is their inability to find qualified technicians. This is a topic we talked and wrote about more than 25 years ago. The pool of technicians is drying up and the aging workforce is removing many of those in that labor pool. Training technicians is yet another expensive and long-term process. The new tools and computers for working on new and sophisticated equipment is also an enormous expense. It’s a vicious cycle. If the desire for market share continually drains the profitability of selling equipment, how do dealers afford an experienced, quality crew in their service shop with the necessary tools for working on the new equipment? These problems are becoming more and more profound each year, with little light at the end of the tunnel. You can also add to this scenario the fact for manufacturers all warranty problems start in the field and not on the production line

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Aftermarket in their plants. This is yet another drain on the equipment dealers’ cash flow. So what is the answer? Maybe, just maybe, manufacturers/ suppliers need to give dealers a bit of leeway on market share. Maybe they should look at helping equipment dealers develop strong customer satisfaction with all the services they have to offer their customers. Customer satisfaction builds something equipment dealers have not had in a long time – customer loyalty. Product lines are basically the same, and there the buying issue becomes little more than price. Customer loyalty brings the customer back the second, third, fourth and even the fifth time to purchase equipment from the dealership. Most equipment dealers have not had this earned luxury in years and it is customer loyalty that drives customer retention. According to statistics from customer polls, customer retention means that the customer is more than willing to pay a bit more for the product, if the selling dealer markets and provides the after service they expect. As the customer returns more and more often to the dealership to purchase equipment and service, the dealer’s financial strength increases and sales improve dramatically, satisfying both the dealer and the manufacturer/supplier with increased market

share. This is what we describe as the equipment dealer’s selffeeding-product spiral. Those equipment dealers who have achieved worldclass service status have recognized that customer service is not a department. It is everyone from top to bottom within the dealership working together to create a culture that defines true customer satisfaction. Maybe it is time for manufacturers/suppliers to become involved once again in increasing their dealers’ customer satisfaction indexes. We have been associated with an equipment dealer who has practiced these basics for more than 50 years and has been extremely successful in achieving both the areas of profitability and highly acceptable market share, with, by the way, an excellent absorption rate. This dealer has for years successfully marketed the dealership’s service to his customers: before the sale of the equipment, during the sale of the equipment and yes, after the sale of the equipment. Focus upon truly servicing the customer and you will be successful beyond your expectations. Next month’s article will cover the topic of Buyer’s Remorse. John R. Walker is president of Aftermarket Services Consulting Co. Inc. E-mail editorial@mhwmag.com to contact John.

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May 2016

Bottom Line Garry Bartecki

One good one One good employee is worth three average employees. And I am absolutely sure you immediately know who that is in your organization. I would also guess you can name the three marginal members of your staff as well. How nice it would be to have an entire staff of "good" employees. Very nice indeed, but tough to do in this environment when all you hear out in the marketplace is that "qualified" people are not available. So it is probably just about impossible to find both qualified and good folks to bring into the fold. To give yourself a fighting chance to attract the "keepers" you will need a system to attract, engage, hire and keep people once you identify the one's you are interested in talking to. I would relate this system to something similar to what your best sales folks have in terms of a system to engage potential customers as well as close the deal. For some reason there are a lot of people out of work either because they lost their job or because they are not interested in looking for work. Included in this group are folks marginally attached to work who could be swayed to come join your program if the pay is better than the marginal work they are doing. They could be swayed your way, but only if they know the opportunity is there and is presented in a way to show your place of business is an attractive place to work. When I think of the multiple generations that make up our workforce the one conclusion I come to is you need to be flexible and able to deal with the needs associated with each group. We have the boomers. We have the Gen X and we have our new friends the millennials. I believe boomers are still interested in working but maybe not a full week or a full day. I also believe many boomers are tech savvy and at least able to perform those pesky PM's you always fall behind on. Boomers could also work from home and perform clerical tasks. Some do collection work, track insurance certificates and make calls reminding customers about service appointments In this day and age there are many ways to work around a full 40 hr schedule and still get the job done for less cost. There are three major employment categories we need help with: â&#x153;&#x201C; Techs â&#x153;&#x201C; Sales â&#x153;&#x201C; Clerical

As far as sales folks go it is best to try and find other organizations that you know do an exceptional job of training their sales staff. If you can find them and pick off a few of their folks you will find it will take less time for those folks to get into selling lift trucks, parts, service and rental, because they understand a process is necessary to find, cultivate and harvest business from new and existing customers. On the other hand, if you can find hard working sales professionals who need some help to move them up the ladder to success, I would suggest providing sales tests along with sales training to improve their sales skills. I have been hearing some good things about certain training facilities and have personally been involved with the sales process and found the results quite impressive. I would be glad to pass on a name and number if you need it, but don't want to spell it out in this column. And let's keep in mind that the sales skills of old take a lot more time than a process built around today's technology. Mobile apps, tablets and customer contact systems have a way to keep you in front of your customers at a fraction of the cost if you had people doing this work internally. Want some ideas, let me know. So once you engage these folks what is it exactly they are looking for? Well, let me tell you. Comp and bonus structure. Overall company culture. Health Insurance. Current technology (all three groups). Financial planning. I have one more to add to the list but in all honesty thought it is a bit far-fetched. You will love this one...and it is...HAVE FOOD AVAILABLE ALL DAY LONG! And guess what...IT IS A BIG DEAL! Especially for the younger crowd. As it turns out a group of dealers I talked to confirmed this to be true. It turns out this is an internal networking thing that brings people closer to the company they work for. I guess the point of this column is to make you aware that there are people out there willing to earn a buck for themselves and their employer. All you have to do is spend some time making your "culture" more friendly and progressive. In the end, if employees like what they are doing and where they work they will stay and bring other good employees with them. Now get out there and buy some donuts.

From what I read it appears that current employee referrals provide the best source for techs. If this is so I suggest you make it profitable for the referral source to do so. And I am not talking $500... I am suggesting a lot more maybe paid over a 3-5 year period if the employee stays. Once the word gets around that there is some "real" money to be made there will be techs lined up at your door leaving you with the problem of weeding out the unqualified candidates. Nice problem to have...right?

Garry Bartecki is a CPA MBA with GB Financial Services LLC. E-mail editorial@mhwmag.com to contact Garry.

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May 2016

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May 2016

Nuts & Bolts

Acquisitions, expansions & other business news

Concept Laser GmbH wins 2016 International Additive Manufacturing Award

Freight Rail Industry challenges need for rule mandating two-person crew

The Association for Manufacturing Technology is pleased to announce that Concept Laser GmbH is the winner of the 2016 International Additive Manufacturing Award (IAMA). The award was presented at the Inside 3D Printing conference as part of METAV 2016 in Düsseldorf, Germany. Founded in 2000 and located in Lichtenfels, Germany, Concept Laser came out on top of 16 innovations from the United States and Europe competing for the prize. “The IAMA is welcome recognition for our hard work, but also evidence that we’re on the right track,” said Frank Herzog, Managing Partner and Founder of Concept Laser. “We are extremely proud to win this prestigious award. It is a great motivation to our company and others around the world to continue exploring the possibilities of additive manufacturing. ”Concept Laser’s winning innovation involves the first in-situ realtime process monitoring system in powder-bed-based additive manufacturing. It measures properties like size and intensity of the melting path's thermal radiation in ultra-high resolution, and displays the data in correlation to the position of the melting bath on the workpiece’s surface and thus to the component’s geometry. This will make it easy for the user to localize and evaluate process anomalies during production. www.amtonline.org

"Safety is this industry's number one concern, but there is simply no safety case to be made for a regulation that requires two-person crews, especially where Positive Train Control is fully operational," said Edward R. Hamberger, AAR president and CEO. "Worldwide, trains safely operate with one person in the cab, including here in the United States with passenger and commuter trains and some short line freight railroads. Major European railway systems running many mixed freight and passenger trains per day have safely implemented single-person train crews. "Coming from an administration that champions smart, data-driven regulations, it is inexplicable how this proposal was approved by the President's Office of Management and Budget," said Hamberger. "Even the FRA concedes they have no 'reliable or conclusive statistical data' to suggest that two-person crews are safer. I encourage the FRA to reexamine the facts and exercise sound regulatory judgment before finalizing a rule that lacks empirical support." Hamberger pointed out Class 1 freight railroads remain committed to two people in the cab for trains operating on mainline track that is not equipped with Positive Train Control (PTC). PTC will be in operation for 60,000 out of the nation's 140,000-mile freight rail system. "Notwithstanding an extensive body of evidence showing that two-person crews are no safer than one-person crews, the nation's Class 1 freight railroads currently operate with two-person crews, and have committed to continuing that practice for trains without PTC systems in place," Hamberger stated. "PTC is designed to provide continuous monitoring of train operations to protect against human error in controlling train speeds and movements. This is exactly the kind of safety redundancy through technology for which the FRA has long advocated." www.aar.org

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Hy-Tek Material Handling acquires two Ohio companies

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Hy-Tek Material Handling, Inc. has acquired Gems Conveyor Installation, Inc. (GEMS) and Applied Handling Equipment Co. (AHECO). The acquisitions are expected to boost 2016 sales to $125 million. Columbus, Ohio-based Hy-Tek is the premier single-source provider of material handling solutions for industries including manufacturing, distribution, retail, pharmaceutical, food, electronics and automotive. The acquisitions were announced by Hy-Tek CEO Sam Grooms. GEMS is an installer of welded construction conveyors for the parcel handling industry. Customers include FedEx Ground, UPS and Amazon. GEMS also provides conveyor system installation services to distribution centers nationwide. Located in Greater Cincinnati, GEMS is overseen by principals Scott Meiman and Don McDonald, reporting to Hy-Tek Integrated Systems President Tom Mann. Dayton, Ohio-based AHECO provides products and services for ergonomic material handling. AHECO serves the automotive, aerospace, food equipment and general manufacturing industries. Customers include Honda of America Manufacturing, UTC Aerospace Systems and Whirlpool Corp. Principal Tim Colston oversees the division. www.hy-tek.net

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May 2016

Nuts & Bolts

PackSafe to Congress: Inconsistent fire safety regulations put workers and public at risk Representatives of the Industrial Packaging Safety Alliance, or PackSafe, met with Congressional members and staff to raise awareness of dangerous inconsistencies in fire safety regulations. PackSafe is reaching out to Congress to explain the need for the Occupational and Health Administration (OSHA) to update its regulations to reflect more recent codes governing the transportation and warehousing of hazardous and flammable liquids published by the National Fire Protection Association (NFPA). “We’re reaching out to members of Congress because of OSHA’s unwillingness to act on something we see as reasonable enforcement and upkeep of existing regulations,” said PackSafe Senior Advisor John McQuaid. “Why focus on OSHA? When a

product is shipped, rules from the Department of Transportation (DOT) govern the type of container selected. But when that same product arrives on the warehouse floor, it’s under OSHA’s jurisdiction. That’s the source of the confusion – where the regulations don’t align – that creates conditions that threaten workers, the public and the environment.” Current DOT regulations do not subject packaging for flammable liquids to any fire testing, putting workers and citizens at great risk. OSHA regulations (29 C.F.R. § 1910.106) are still based on the 1969 edition of NFPA 30, which has had several important updates added in subsequent editions. Furthermore, regulations between DOT and OSHA are inconsistent, causing confusion and risk for workers transporting and storing flammable liquids. www.PackSafeAlliance.org

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May 2016

Human Element Caliper Corp.

Why should we think about succession planning? With so many pressing business issues in the mix each day, developing tomorrow’s leaders might take a backseat in your mind. While it’s tempting to simply focus on the present, it’s critical to plan for success in the future as well. That’s where succession planning comes in. Not sure where to start? Ask yourself these questions: • Do we have the leadership bench strength to achieve our projected growth? • What does it cost to fill a leadership vacancy with someone from the outside? • Do we risk compromising leadership qualities just to fill openings? • How has our business environment changed over the last few years? • How many of our current executives say they felt prepared for their first leadership role? The current labor force in America is polarizing – there are lots of older workers (aging quickly), lots of younger ones, and fewer people in the middle. That’s a legitimate managerial challenge. With so many fast-paced changes occurring in today’s world of work, companies are experiencing skill shortages and managers are discovering that they have no one ready to fill

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May 2016

vacancies. And the representation of women and minorities at senior levels is still insufficient. When a key position is left unfilled, important decisions cannot be reached and critical activities are delayed. It’s often difficult to meet or exceed customer expectations, to confront competition successfully, or to follow through on crucial longterm initiatives. Moreover, companies tend to see reduced loyalty among employees, increased turnover of identified successors and high performers, increased attrition in executive-level positions, and a shortfall in the number of future leaders. And no business wants that. Retaining leadership talent is both a strategic and economic necessity. You cannot implement your strategy without the right leadership, so there is a heightened sense of urgency around succession planning. No matter how certain your future appears, now is the time to start taking measures to close the gaps. Creating a succession plan can help you drive competitive strategy, reinforce values, and successfully secure your company’s future. Now let’s talk about the specific benefits of succession planning. There are many. We’ll start with business results. Future viability and performance requires having the right people in the right place at the right time. This means that you must continually develop qualified pools of candidates who are ready to fill critical positions or step in if there are unplanned losses of key leaders. Filling leadership positions internally cuts down on hiring costs, ramp-up time and lost productivity. On the flip side, costs and organizational risks continue to go up for external searches. Plus, even if you identify someone with the right credentials, you may find out down the line that the person does not fit the company culture. Effective succession planning results in enhanced and targeted employee development, which leads to improved employee morale and engagement, increased workforce productivity and expedited goal achievement. With so many leaders planning for retirement, proactive knowledge transfer is critical. If your organization can pinpoint the skills and competencies of retiring employees, you can use that information to develop qualified successors and facilitate smooth transitions when the time comes. What does all this lead to? Significant return on investment and better business results. Your people are helping your business succeed now; succession planning can help you ensure that your company continues to succeed in the future. About Caliper - For nearly half a century, Caliper has been helping companies achieve peak performance by advising them on hiring the right people, managing individuals most effectively and developing productive teams. The accuracy, objectivity and depth of our consulting approach enable us to provide solutions that work for over 25,000 companies. To find out more about how Caliper can help you identify and develop people who can lead your organization to peak performance, please visit us at www.calipercorp.com or call us at 609-5241200. Email editorial@mhwmag.com to contact Caliper. Jo Moore is Senior Vice President, Organizational Development Services with Caliper.

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8:55 AM

Sales Trends Art Sobzcak

Beware of the bad sales advice you see online I was doing some research for a client training program and got a bit side-tracked when Googling. (Who doesn’t?) I did a couple of searches for “prospecting tips” and “telephone sales tips.” I shouldn’t be surprised and saddened at what I find, but it still bugs me that there is so much bad advice out there. Which results in, I’m sure, people who actually try to use these things and get their teeth kicked in, suffering “rejection,” contributing to the negative image of salespeople. I could fill an entire year’s worth of newsletters with what I read. Here are just a few pieces of bad advice, and my suggestions. Yes, you DO need “scripts” Several posts stated adamantly that you should not work from a script. You want to sound natural, not “canned.” I agree with the last sentence. And the best way to sound natural is knowing exactly what you will say, so you can say it confidently and naturally, and get the desired result. That’s what a script does, when it is written well, practiced and delivered in the right way. Just like an actor uses a script. I’ve done many exercises in training sessions where I call on a sales rep and say, “Quick, give me your value statement.” If they have not scripted out and prepared variations of them, and used them, of course they bumble and stumble their way through it when they try to wing it.

We of course can’t script out our entire call, but we can script and prepare openings, voice mail messages, questions, value/result descriptions, closes, responses to resistance and answers to tough questions. All of the best salespeople do. Are you satisfied with yours? It is not about you Here’s a suggestion straight from a “cold calling template.” In the opening it says to start with something like, “Hi, my name is ___. I’m calling some startups in the area to find out if they are a good fit for our product/service.” Think about the logical reaction to that. I have received that call, and mine is, “I don’t care what you want. I care about what I want.” I feel sorry for the people who try using this template and get shot down over and over. In our openings we need to hint at what we might be able to do for them, and mention it quickly. Does yours do that? Don’t ask for the meeting in the opening One article from a major magazine suggests using the alternate choice close for asking for a meeting in the opening. Please. No. Sure, your objective might be to set up the meeting, but do not mention it in the opening. They don’t even see a reason to stay on the phone with you yet. And using the old, “...would

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Sales Trends Tuesday or Wednesday be better?” simply screams out that the caller is inexperienced and just read an old sales book. “Say you’ll be in the area.” One article suggests that mentioning you’ll be in their area is a good reason to call and set an appointment. Really? There are tens of thousands of people in my immediate area and I don’t have a reason to meet with them. Unless of course they have something I want. Or can help me avoid something I don’t want. Pretty simple: You must have a valid, results – oriented reason they might have some interest in. Do you have yours defined in a crystal-clear way? It is NOT a numbers game Here’s a direct quote I pulled from an article: “Sales is a numbers game pure and simple. As a professional baseball player, if you can average four hits out of ten times at bat, you are heading for the Hall of Fame. Research indicates that in sales you can expect your prospect to say NO five times before he or she buys. With this in mind, realize that with every sales rejection you receive, you are one step closer to making the sale!” I get exasperated when I hear and read stuff like this. There are several fallacies here. First, activity for the sake of activity does not directly correlate to success. A single golfer joined our group the other day. He was horrible. Several times he said, “Well, if I would just get a chance to play more I’d be better.” No he wouldn’t. He had an awkward flailing swing that gave him no chance of making solid contact or resulting in straight direction. More activity will just ingrain the bad habits. We must be putting in QUALITY activity. With that said, you DO need to be picking up the phone to have a chance of success. A high level of quality phone activity is not an oxymoron. (Feel free to tweet that out. @ArtSobczak.)

And what is this “research” about someone saying NO five times before buying? That’s nonsensical and demoralizing. When I buy something I usually don’t say NO at all. And if I have to say NO to someone more than once, there won’t be a third or fourth time... the discussion will have ended. With that said, of course there are many instances where there is initial resistance— especially at the beginning of prospecting calls--and we certainly don’t want to give up. In fact, resistance is a huge part of sales. But, the better outlook, instead of expecting five “no’s” is to first know how to prevent them and not cause them. And, we must understand the difference between resistance, hesitation and real concerns and roadblocks, and then the process for addressing them. It’s done with questions, not “rebuttals.” Finally, you are not one step closer to making the sale with each rejection you receive. You know the old saying about the definition of insanity, right? It’s doing the same thing over and over and expecting a different result. To get one step closer to a sale after not succeeding, we need to examine why we are not succeeding, and adjust our process, continually striving to get better to get the result we want. There is more sales information instantly available to us than at any point in history. And it's being added to constantly, even as you read this. But, a lot of it is bad. Be relentless in your learning and searching for ideas, for sure. However, if it sounds hokey, you should question it and not accept it as gospel. Art Sobczak helps sales pros prospect, sell and service accounts more effectively by using conversationally, non-sales messaging, and without “rejection.” Get a free ebook of 501 telephone sales tips at businessbyphone.com/501-tips-ebook. Email editorial @mhwmag.com to contact Art.

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May 2016

Shifting Gears

Industry personnel and organization news

CLARK honors top forklift dealers

The 2016 Dealer of Excellence and Special Recognition Award Recipients: Dealer of the Year Valley Industrial Trucks, Inc. – Youngstown, Ohio New Dealer of the Year Buffalo Lift Trucks, Inc. – Buffalo, New York Dealer of Excellence Burke Handling Systems, Inc. – Jackson, Mississippi Cal-Lift, Inc. – City of Industry, California Fraza Forklifts – Canton, Michigan Lift Parts Service, LLC – Wichita, Kansas Valley Industrial Trucks, Inc. – Youngstown, Ohio

CLARK Material Handling Company recently announced the 2016 recipients of its prestigious “Dealer of Excellence” awards. Each year, CLARK selects its top dealers who excel in new equipment and aftermarket parts sales, service achievement, general customer satisfaction and overall dealership operations, and awards them with CLARK’s highest honors. The awardees were hosted at a special event held at CLARK’s North American headquarters in Lexington, Kentucky on February 10-12, 2016. President and C.E.O., Dennis Lawrence, commented on the importance of the awards recognition as to not only demonstrate the company’s appreciation for a job well done, but also as a validation of the strong viability of CLARK’s product in the marketplace and the continued surge of the CLARK brand in North America. CLARK’s 2016 Dealer of the Year is Valley Industrial Trucks, Inc. Celebrating their 60th year as a CLARK dealer, Valley is a two-time winner of this distinguished award. At their recent anniversary celebration, held in Youngstown, Ohio, the award was presented to Valley’s employees. Mr. Jim Hammond, President, commented, “Valley Industrial Trucks and CLARK share a common growth strategy. Our businesses have been aligned since our inception 60 years ago and our futures remain strong together.” Buffalo Lift Trucks, Inc. was recognized as CLARK’s 2016 New Dealer of the Year, an award presented to Paul Notaro, Sales Department Manager, at the ceremony in Lexington. In business for more than 30 years, Buffalo Lift Trucks became a CLARK dealer in November, 2014. “We are off to a great start with CLARK and are excited to have this opportunity and partnership,” said Mr. Notaro. www.clarkmhc.com

Special Recognition Awards All World Lift Truck Co., LLC – Tampa, Florida Delta Materials Handling, Inc. – Memphis, Tennessee Equipment Depot Texas – Houston, Texas Forklifts of Minnesota, Inc. – Minneapolis, Minnesota Louisiana Lift and Equipment, Inc. – Saint Rose, Louisiana

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May 2016

Shifting Gears

LEGACY Supply Chain Services unveils "Vets to WERC"

AMT presents 2016 Albert W. Moore AMT Leadership Award

LEGACY Supply Chain Services has signed on at the Champion Sponsor level of the Warehousing Education and Research Council’s (WERC) 39th Annual Conference for Logistics Professionals. At this year’s WERC Conference, LEGACY will be unveiling a new program—"Vets to WERC"- that promotes hiring veterans into the supply chain industry. The Conference will be held in Providence, Rhode Island at the Rhode Island Convention Center on May 15-18, 2016 and includes three days packed with educational sessions. The annual event routinely draws nearly 1,100 senior-level warehousing, logistics and supply chain professionals. LEGACY, a top-ranked, full-service third party logistics (3PL) provider that manages more than 6 million square feet of warehouse space in 50 locations throughout the United States and Canada, has been involved with WERC since 2000. The company regularly sponsors the WERC Conference, as well as has key members of its leadership team serve on the WERC Board of Directors (currently LEGACY Senior Vice President Andy Dishner is a WERC Director at Large). "LEGACY has long been a supporter of the WERC Conference due to the recognized thought leadership value WERC brings to the supply chain industry," explains Kyle Krug, LEGACY’s Director of Marketing Communications.

AMT – The Association For Manufacturing Technology presented the Albert W. Moore AMT Leadership Award to industry icon Marcus B. Crotts at its Annual Business Meeting, March 5, 2016, in Palm Desert, Calif. Marcus Crotts, founder of Crotts & Saunders Engineering, Inc., of Winston-Salem, was recognized for his outstanding support of the manufacturing technology industry. “The Albert W. Moore AMT Leadership Award honors those individuals from our industry who have gone above and beyond by carrying out the mission of the association, and who have had a dramatic impact on our industry,” said Douglas Woods, AMT President. “Marcus has distinguished himself as an outstanding innovator, leader and advocate for the manufacturing technology and engineering industry.” For 57 years Mr. Crotts led Crotts & Saunders Engineering, Inc., a full-service machine tool distributor. Through his leadership, the company has become nationally recognized for its impact on manufacturing processes through improved basic design methodologies. As Board Chair of the American Machine Tool Distributors Association in the 1980s, Mr. Crotts skillfully guided the association during the introduction of CNC technology. www.amtonline.org

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Type: IC Big Cushion Make: Rico Model: PG-350 Year: 2011 Capacity: 35,000 lbs. Mast: 133/144S Details: LPG, side shift, Ind. fork position, 60” forks, 4,963 hrs

Type: IC Big Pneumatic Make: Caterpillar Model: DP150 Year: 2006 Capacity: 33,000 lbs. Mast: 163/177S Details: Diesel, side shift, Ind. fork position, 75” forks

Web ID: BW9N

Type: IC Big Cushion Make: Hyster Model: S155FT Year: 2013 Capacity: 15,500 lbs Mast: 122/244T Details: LPG, 4Way

Web ID: 3WD9

Web ID: MDO7

Web ID: 3WOF

Type: IC Pneumatic Make: Mitsubishi Model: FG30N Year: 2013 Capacity: 6,000 lbs. Mast: 85/186T Details: Nissan engine, 3way, low hours Type: IC Cushion Make: Mitsubishi Model: FGC33N Year: 2011 Capacity: 6,500 lbs Mast: 87/185T Details: Nissan engine, 48” forks, 5,445 hrs

Type: IC Big Cushion Make: Toyota Model: 7FGCU70 Year: 2011 Capacity: 15,500 lbs Mast: 118/219T Details: 4Way, side shift, fork position, forks Type: IC Pneumatic Make: Hyster Model: H80FT Year: 2011 Capacity: 8,000 lbs. Mast: 86/121 full free lift Details: diesel, 6172 hrs

Type: IC Pneumatic Make: Yale Model: GLP050VX Year: 2011 Capacity: 5,000 lbs. Mast: 84/189T Details: Side shift, 42” forks

Type: IC Cushion Make: Mitsubishi Model: FGC25N Year: 2012 Capacity: 5,000 lbs Mast: 83/188T Details: Nissan engine, 36” forks, bin dumper

Forkliftsavailable! available! OverOver 800500 Forklifts WE’RE NOT BROKERS, WE OWN OURINVENTORY! INVENTORY! WE’RE NOT BROKERS, WE OWN ALLALLOUR

www.MHWmag.com

May 2016

Shifting Gears

Performance-optimizing design lands Yale® GOOD DESIGN™ award

RISKIPEDIA: New Wiki just for SCRM professionals

Yale Materials Handling Corporation announces its MPR100VG enclosed end rider has received a 2015 GOOD DESIGN™ award. The enclosed end rider was selected for its stateof-the-art technology, enhanced ergonomic design and class-leading lifting capacity. The GOOD DESIGN awards are presented by the Chicago Athenaeum Museum of Architecture and Design, and honor the best industrial designers and world manufacturers for their pursuit of extraordinary design excellence. “This recognition validates the continued commitment Yale has to delivering lift trucks with unparalleled performance and operator comfort,” said Clay Taylor, Product Manager for Yale. “The enclosed end rider embodies what we strive to provide customers with when creating a new product – a design that helps increase throughput, boosts operational efficiency and reduces costs.” Engineered for demanding multi-shift applications, the MPR100VG enclosed end rider is equipped with Yale® iSi Technology™, a common control system with consistent functionality across the Yale® warehouse product line. The system also offers programmable performance modes which allow operators to customize truck performance to their individual skill level. www.yale.com

The Global Supply Chain Resiliency Council, in collaboration with principal technical sponsor Resilinc, invites you to check out the RISKIPEDIA. RISKIPEDIA is an open-source project to capture and chronicle the most important Supply Chain Risk Management (SCRM) and Resiliency terms and concepts, people and organizations, and tools and technologies. The resource is a living document that serves as both a glossary and an encyclopedia. It is therefore open to submissions from those of you in the SCRM professional and academic community in order to foster improvement and to help it grow. It is available online and as a downloadable PDF. As such, it is intended to serve as both a quick online reference and as support material for education and training purposes. www.resilinc.com

New & Used Forklifts • Coil Tractors • Railcar Movers Yard Tractors • Container Handlers & More

To see a complete list of our inventory, visit our new online showroom at www.HKEQUIPMENT.com

Atlas Copco expands dealer network with Crusher Works Atlas Copco added Crusher Works — of Birmingham, Alabama — to its growing dealer network. The new dealer will offer Atlas Copco heavy compaction equipment at its Alabama location and plans to carry Atlas Copco pavers by mid-2016. It will add milling machines in the future. “Crusher Works is a great addition to our dealer network because of its commitment to customer service and focus on minimizing customer downtime,” said Ricardo Perez, Atlas Copco’s regional sales manager. “The team at Crusher Works is reliable and responds quickly to customer needs by having a large parts inventory and fleet service trucks for onsite maintenance and repairs, which aligns well with our goals to serve our customers’ needs to a maximum.” Crusher Works has a combined experience of over 30 years renting, selling and servicing aggregate machinery products for a wide range of industries, including recycling, sand and gravel, limestone quarries, coal mines, asphalt, concrete, demolition, top soil, mulch and compost. Its equipment offering includes mobile screens, crushers and scalpers as well as hammers, drills, trommels, conveyors, truck unloaders, horizontal grinders, shredders and roll-sizers. www.atlascopco.com/us

700 FOR 28 DAYS

For $700 a material handling equipment dealer can rent a 36’ long 20,000 lb. capacity aluminum yard ramp. Provide a much needed service to your customers. Ramps in stock for immediate delivery.

www.MHWmag.com

May 2016

We Buy Used Dock Levelers Trades Considered Bay Equipment Co., Holland, Mich., 616-392-1811 or fax 616-392-6238 www.bayequipmentco.com • bay.eq.co@gmail.com

Shifting Gears

J.C. Renfroe opens new product training center at Jacksonville plant

Forklift manufacturer expands its business in Brazil

With industrial working environments becoming more dangerous, specifically where lifting is involved, J. C. Renfroe, manufacturer of industrial lifting products, has opened a new training center onsite at its Jacksonville plant to help educate customer operators and employees on the safe use of the company’s products. The newly converted facility offers two sets of classrooms, one for textbook and video instruction and another for hands-on instruction with tool stations and in-room lifting apparatus. The center is stocked with the various lines of Renfroe products and even has a kitchen to serve meals during the instructional courses. Renfroe provides a curriculum that prepares personnel to return to their plant to help instruct other employees. The course is called “Train the Trainer.” Courses include instruction on clamp use, lift scenarios, interactive applications, clamp definitions, maintenance, inspections and industry safety standards. Upon completion of the two-day course, each person receives a detailed reference manual to use for training other employees. www.jcrenfroe.com

UniCarriers Americas Corporation (UCA) grows its business in Brazil by appointing Anderson Silva to logistics coordinator and Rafael Nishino to coordinator of planning and purchases for its South American subsidiary, UniCarriers Corporation South America (UCSA). As the logistics coordinator, Silva is responsible for coordinating all of UCSA’s truck orders and logistic jobs, including trucks and parts importation, inbound processing and Anderson Silva working with brokers and freight forwarders. As the planning and purchases coordinator, Rafael Nishino is responsible for coordinating and planning spare parts orders of the complementary supplies for the office and warehouses, as well as developing local suppliers to provide better customer service for dealers and end users.

IB R C S

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Cover Story

More Shifting Gears available on www.MHWmag.com Remanufactured Transmissions, Engines, Torque Converters, Steer Axles, Overhaul Kits and Aftermarket Parts for:

Keynote Presentation

• Material Handling • Construction • Agricultural Equipment

A Patriot’s Calling: Leadership, Teamwork and Sacrifice Presented by Major Dan Rooney, USAF

Prosperity in the Age of Decline Presented by Brian Beaulieu, ITR Economics.

www.unicarriersamericas.com