We thought nothing could be worse than a Global Pandemic – panic and then sudden shut downs caused havoc and concern worldwide. But then things started to improve – people were taking necessary precautions and vaccines were coming out and the world wanted to “get back to normal”. People started buying things again but by the time the summer of 2021 hit it became quite clear that things would NOT start up again as smoothly as we had hoped. As the Vaccines acceptance became more widespread and the COVID deaths began to decrease around the globe the world started to wake up and demand for items skyrocketed. In the Lift Truck Industry 2021 started stronger than anyone planned – and it didn’t let up. Some thought it was a catch up Blip – orders simply making up for the drop a year earlier – but we have more than eclipsed that drop now. All Time Record order intake in the first and second quarter of the year by virtually ALL forklift manufacturers put intense strain on the Supply Chain and some parts manufacturers simply could not meet the growing demand.
Lead times started to move out in the 2nd quarter – and they moved out even more in the 3rd quarter – and then pricing started to rise. Multiple factors across the global economy such as low production in the factories, shortage in inventory, increased freight and part costs resulted in price increases that were announced from virtually every Fork Lift Manufacturer. Logistic / freight surcharges were also introduced as a response for the first time in over a decade to help cover the increasing global supply chains cost. Container pricing tripled or quadrupled in some routes.
New Lift truck lead times before the pandemic averaged 10-16 weeks – while I write this in October 2021 those same trucks are now 32-45 weeks before delivery and some are over a year. Virtually ALL Lift truck manufacturers are in the same lead time range – no one appears to have been spared. And this is not limited to just Lift truck Manufacturers – Aerial Lift Companies such as Skyjack, Genie and JLG are also feeling the pain of a broken supply chain with lead times uncertain and in some cases over a Year!
With all this pressure on the pricing and lead times for New Equipment, Used truck pricing is at an all-time high. In Ontario Canada we are seeing record results at the largest public auctions for used trucks – even old ones with high hours are selling VERY strongly at Auction. Rental fleets are at decade high rental utilization and customers that have not planned ahead well are finding it difficult to find the equipment they need – and if they are able to find it they have to pay more or wait longer than they would like.
With Lead times so long and pricing so high some dealers have sourced alternate brands to fill the gaps. New Entrants to the market that CAN deliver quickly have a huge advantage to help bridge the gap until this situation normalizes with the “normal” manufacturers. Some say things should begin to normalize in April 2022 – others say it won’t be until 2023 when things settle back to “normal” lead times. 54 weeks to wait for equipment to be manufactured is simply too long for most buyers to accept. Yes, you read that correctly! Some equipment is taking over a year to get to our valued customers. Unfortunately, there is no vaccine for the “Lead time Pandemic”.
Ri-Go Lift Truck is continuously trying to enhance our customer’s experience. We know that some companies can’t wait this long for new equipment. Their operations need equipment to keep running – NOW. Fortunately, we did plan for the “Lead time Pandemic”. We call it our “First Dose Rental Fleet”, along with our “First Dose Stock Fleet”. While Rentals are in high demand our fleet is more ready than it’s ever been to help your operation keep moving. With over 1200 pieces of equipment in our fleet we can keep you moving in the short term until new equipment arrives or until things normalize in the long term. Our Rental Team is ready to help you – call and see if we have the truck or Scissor lift you need today!
Lead times do not seem to be improving anytime soon but to help this situation Ri-Go has made some strides to have equipment available to clients sooner. As soon as we noticed this Lead time pandemic could happen we started ordering stock for you! We have purchased over 100 new and unsold Linde and Komatsu and Mariotti Lift trucks as well as Zoomlion Scissor lifts to help our customers. Our “First Doses” won’t last forever though!
If you are looking for equipment. Consider our excellent Rental/ Stock Fleet before it’s gone!
Please Contact Steve Hensman for any rental inquires: email@example.com
Please Contact Chris DiBerto for any sales inquiries: firstname.lastname@example.org
416-213-7277 ext 236