George Weimer has been covering business and industry for almost four decades, beginning with Penton Publishing's Steel Magazine in 1968 where his first "beat" was the material handling industry. He remained with Steel for two years and stayed for two more when it became Industry Week in 1970. He subsequently joined Iron Age, where he spent a dozen years as its regional and international machine tool editor. He then re-joined Penton Publishing as chief editor of Automation Magazine and in 1993 returned to Industry Week as executive editor. He has been a contributing editor for several publications, including Material Handling Management, where his columns and feature articles regularly generated lively discussion in the industry. He has won various awards from major journalism organizations. He has covered numerous trade shows here and abroad and has spoken to various industrial and trade groups on the current issues and events of the day as they impinge on business. He remains convinced that material handling technology and logistics are two of the major sources of productivity improvement today and in the future for all industries.
They'll probably always be known as the workhorses of the warehouse, but today's lift trucks would be more accurately termed thoroughbreds. Using input from customers, lift truck makers are designing machines that are cleaner, safer and faster than their predecessors. The new trucks are smarter as well: Many models have advanced communications technology on board. And they're noticeably more comfortable, with added leg room and generally better ergonomics than older models.
Take the operator compartment, for instance. These days, it's not unusual for trucks to come with "mini levers" or joystick controls, says Brett Wood, vice president, marketing and product planning and dealer development at Toyota Material Handling, U.S.A. As you might expect, the idea is to appeal to younger drivers. As Wood puts it, "The Nintendo Generation is the new lift truck operator."
If the new trucks' driver compartments look cushier than in the past, that's no accident either. "Today's operators arrive in state-of-the-art cars. They expect similar comforts in the trucks they drive. That's why we are selling more and more full cabs in our lines," says Mark Roessler, general product manager of Linde Material Handling North America Corp. "That means air conditioning, comfortable seating and ergonomically designed controls."
And it appears there's more to come. Wood says Toyota will be demonstrating a new model in November that will offer even more operator comfort and flexibility than earlier models. They may sound like luxuries, he says, but features like fingertip controls, adjustable hand rests and swivel seats enhance operator comfort. And increased operator comfort translates into increased operator productivity.
Another productivity-boosting feature found in more and more of today's lift trucks is the built-in scale. "As warehouse and distribution center management moves toward a more automated work flow process, the use of lift truck scales has provided a significant increase in efficiency," says Andre Marshall, marketing programs manager for Cat Lift Trucks. For one thing, he says, incorporating a scale into a forklift truck minimizes the need for floor scales, freeing up valuable warehouse space. For another, he adds, they allow operators to weigh loads faster and more easily, eliminating several labor-intensive processes.
Cat has taken the integrated scale a step further, introducing what it calls the Integral Wireless Communication Scale. The scale communicates via radio frequency with an on-board printer that creates measurement readouts for each load. Innovations like these from Cat and others "create a more seamless work flow process and contribute to maximizing labor efficiencies within warehousing and distribution," says Marshall.
It's automatic!
In fact,the entire industry seems to be at work incorporating more mobile computing capabilities into the lift truck. Some trucks, for example, now come equipped with automatic datacollection devices that have revolutionized asset management. One such system is Crown Equipment Corp.'s InfoLink, which the company describes as a wireless fleet management system that is made up of a "user-friendly, on-board operator interface that communicates with a central server." Using the wireless communications structure that most warehouses already have in place, InfoLink automatically provides DC managers with vehicle operating data that once had to be collected manually. With a system like InfoLink, says Jim Moran, Crown's senior vice president, managers have an easy way to "gather data on how each truck is being used in their operation; control who is allowed to operate any given truck; ensure that each operator conducts safety inspections; manage planned maintenance programs; and be alerted and track when and where trucks have been in collisions."
Today's sophisticated fleet management systems can do more than simply enhance individual lift truck performance, adds Cat's Marshall. "[T]he data can also be used in order to track truck usage in relationship to overall productivity." For example, with access to data on any given unit on the floor, a manager can easily shift idle units to busy areas, thereby optimizing fleet usage.
Meanwhile, the RFID revolution that has swept through DCs in recent years has influenced forklift design as well. A number of manufacturers have been experimenting with lift truck-mounted RFID readers that eliminate the need for operators to dismount in order to record the receipt, movement or placement of loads. Raymond Corp., for one, has been testing RFID-enabled trucks in a working RFID warehouse in Alberta, Canada.
Today's "thoroughbred" trucks also offer new safety features. Toyota's Wood, for example, says much work has been done to incorporate automobile safety technology into forklift design in recent years. He points to his company's development of "SAS" for forklifts. That stands for "System of Active Stability" and is a way of using embedded sensors in the truck that, in effect, tell the truck when it is becoming unstable and help to prevent rollovers.
And like the automakers, lift truck designers continue to look for ways to make their vehicles easier to operate. For example, Doosan Infracore America Lift Trucks now offers AC-powered trucks with ITC or Intelligent Torque Control, which maintains equivalent operating speeds whether the truck is empty or fully loaded. Toyota has introduced a new feature that, at the push of a button, levels the forks so they're parallel with the floor, stopping the tilt at 90 degrees. For generations, operators have had to "eyeball" it.
Lift truck manufacturers haven't forgotten about the technicians either. Several have added features to make mechanics' lives easier. "We design our trucks today around the operator and the mechanic," says Wood. "Readouts, for example, these days are more and more digital. This means diagnostics are done in minutes from the digital displays on the truck."
Power plays
With fuel costs spiking and states cracking down on vehicle emissions, it should come as no surprise that lift truck makers are focusing much of their creativity on power plants. Some are experimenting with alternative fuels. Toyota, for example, offers a forklift option that uses CNG (compressed natural gas), which is perhaps a "niche market" item but does demonstrate what can be done to reduce emissions to nearly zero even in gas-powered trucks.
Toyota isn't alone. Nissan Forklift Corp. tells DC VELOCITY that it will soon showcase a system that promotes the use of alternative energy "at one of the logistics exhibitions overseas." Other manufacturers are moving quickly as well to find ways to take advantage of emerging technologies.
Even makers of gas-powered lift trucks have gotten into the game. For example, Clark Simpson, who is Clark Material Handling Co.'s internal combustion (IC) truck product manager, notes that manufacturers now offer catalytic converters for gas-powered vehicles that clean up their emissions. He also points to innovations designed to increase fuel efficiency, such as regenerative braking and the use of ultra capacitors, which don't wear out.
When it comes to electric trucks, the news these days is all about AC in the DC. Over the past few years, practically the entire market for electrics (with the exception of walkies) has moved toward AC power, reports Toyota's Wood. AC has the advantage of simplicity, explains Al Grywalski, Doosan's marketing manager. "AC technology eliminates a number of motor and control panel components, which translates into significant reductions in maintenance requirements." That reduction in maintenance requirements, in turn, translates to lower maintenance costs and less downtime.
"This technology is moving pretty fast; with the higher-voltage electrics in particular," says Roessler of Linde Material Handling. "Higher-voltage AC trucks have been common in Europe for years," he says. "Over here they are becoming more and more attractive."
For evidence of that, you need look no farther than Germany-based Jungheinrich Lift Truck Corp. Jungheinrich's latest entry into the U.S. market is an AC model. Called the ETR 320, it is "a pantographic reach truck in which all three motors—steering, hydraulic and driving—are based on three-phase AC technology," according to the company. Jungheinrich says the truck also "recycles" energy when braking, just as hybrid cars do.
Fill 'er up ... with hydrogen
But even bigger changes appear to be on the horizon. "A technology to look out for that could directly benefit distribution centers and warehousing is fuel cell technology," says Cat Lift Trucks' Marshall. "There are many benefits associated with hydrogen fuel cells that could make this technology practical for multi-shift and high-throughput distribution centers. For one, fuel cells deliver a steady level of power throughout the shift and eliminate the need to replace or charge a battery because the refueling process on a fuel cell takes just minutes."
"Hydrogen fuel cells offer higher productivity simply because they can be rapidly refueled—in several minutes versus several hours—eliminating the need to change a battery," adds Steve Medwin, Raymond Corp.'s manager of advanced research. "Also the voltage delivered by a fuel cell remains constant until the fuel is depleted. And hydrogen is environmentally clean: The only by-products from a fuel cell are water and heat," he says.
Introducing the hydrogen fuel cell to the DC would be much easier than adapting it to the auto industry, notes Mark Dyster, electric truck product manager for Clark Material Handling Co. "That is, to successfully use hydrogen fuel cells on the roads in cars means major change to the country's fueling infrastructure," he says. "The fueling issue in a plant or warehouse is much simpler."
The Canadians are already experimenting with fuel cells on lift trucks provided by NACCO Materials Handling Group (which markets trucks under the Yale and Hyster brand names) at a General Motors of Canada car plant in Oshawa, Ontario. The tests are part of the Canadian government's clean air initiative.
For all the interest and hype, it doesn't appear that fuel cells will be hitting the market anytime soon. Linde's Roessler believes it could take another five to 10 years before fuel cells become a practical alternative or addition to industrial truck technology. The reason is simple, he says: "It is simply not a perfected technology now."
When planning routes for their delivery trucks, fleet managers—or more likely, their route planning software systems—consider factors like mileage, road height and weight restrictions, traffic conditions, and weather. They can now add another variable to the mix, thanks to a new tool that calculates the chances that a load might be stolen along the way.
Developed by New Jersey-based risk assessment firm Verisk Analytics, CargoNet RouteScore API generates a cargo theft "risk score" that provides a relative measure of probability that crime and loss will occur along any given route in the U.S. and Canada. Using a proprietary algorithm, the tool rates routes on a scale from 1 to 100—with 1 representing the lowest likelihood of theft—based on risk factors such as cargo type, value, length of haul, origin, destination, day of the week, and the theft history of specific truck stops.
Companies can also use the tool to protect their cargo proactively, Verisk says. For example, before sending a truck out on a high-risk route, a carrier could implement additional security measures like tracking devices, driver teams, and escorts or even secure parking spots in advance.
Verisk adds that the tool's API format allows for easy integration with both proprietary systems and the third-party transportation management systems (TMS) that many companies use to manage their trucking operations.
Drivers typically choose a specific blend of gasoline based on their car's engine, picking high-octane fuel for a sports car and regular gas for the family sedan. Now a company has launched a similar range of products for diesel fuel, saying the offerings are calibrated for vehicles like commercial trucks.
That company, Nevada-based Advanced Refining Concepts LLC (ARC), will launch two new products, GDiesel Lightning and GDiesel Thunder, by mid-year, the company said in January.
According to the firm, GDiesel Lightning is a lighter, faster-igniting diesel fuel than the classic mix and is designed specifically for urban start-stop operations—think delivery vehicles, light trucks, city buses, and passenger vehicles. GDiesel Thunder is a heavier, higher energy-content fuel made for steadier and more continuous engine operating modes, making it suitable for long-haul trucking or rail and marine applications.
According to the company, choosing the right fuel for a particular application can reduce visible smoke and other regulated emissions, maximize efficiency, and minimize engine wear. And both fuels meet current diesel regulatory standards, it says, obviating the need for modifications to engines, fueling infrastructures, or warranties.
The new fuels' potential is not just limited to petroleum diesel. ARC says the process to make GDiesel Lightning and GDiesel Thunder has been successfully applied to renewable diesel, and both petroleum and bio-based versions of these fuels can be used as next-generation blend stock or to vastly increase biodiesel blend ratios and efficiency.
"Engine manufacturers are at their limits trying to improve efficiency and emissions from standard diesel. It is long past due time to redesign the fuel side," ARC Managing Partner Peter Gunnerman said in a release. "It has never made sense to assume that one diesel fuel option can be efficient for all diesel engine types and operating cycles."
Know someone who is making a difference in the world of logistics? Then consider nominating that person as one of DC Velocity’s “Rainmakers”—professionals from all facets of the business whose achievements set them apart from the crowd. In the past, they have included practitioners, consultants, academics, vendors, and even military commanders.
To identify these achievers, DC Velocity’s editorial directors work with members of the magazine’s Editorial Advisory Board. The nomination process begins in January and concludes in April with a vote to determine which nominees will be invited to become Rainmakers.
It’s getting a little easier to find warehouse space in the U.S., as the frantic construction pace of recent years declined to pre-pandemic levels in the fourth quarter of 2024, in line with rising vacancies, according to a report from real estate firm Colliers.
Those trends played out as the gap between new building supply and tenants’ demand narrowed during 2024, the firm said in its “U.S. Industrial Market Outlook Report / Q4 2024.” By the numbers, developers delivered 400 million square feet for the year, 34% below the record 607 million square feet completed in 2023. And net absorption, a key measure of demand, declined by 27%, to 168 million square feet.
Consequently, the U.S. industrial vacancy rate rose by 126 basis points, to 6.8%, as construction activity normalized at year-end to pre-pandemic levels of below 300 million square feet. With supply and demand nearing equilibrium in 2025, the vacancy rate is expected to peak at around 7% before starting to fall again.
Thanks to those market conditions, renters of warehouse space should begin to see some relief from the steep rent hikes they’re seen in recent years. According to Colliers, rent growth decelerated in 2024 after nine consecutive quarters of year-over-year increases surpassing 10%. Average warehouse and distribution rents rose by 5% to $10.12/SF triple net, and rents in some markets actually declined following a period of unprecedented growth when increases often exceeded 25% year-over-year. As the market adjusts, rents are projected to stabilize in 2025, rising between 2% and 5%, in line with historical averages.
In 2024, there were 125 new occupancies of 500,000 square feet or more, led by third-party logistics (3PL) providers, followed by manufacturing companies. Demand peaked in the fourth quarter at 53 million square feet, while the first quarter had the lowest activity at 28 million square feet — the lowest quarterly tally since 2012.
In its economic outlook for the future, Colliers said the U.S. economy remains strong by most measures; with low unemployment, consumer spending surpassing expectations, positive GDP growth, and signs of improvement in manufacturing. However businesses still face challenges including persistent inflation, the lowest hiring rate since 2010, and uncertainties surrounding tariffs, migration, and policies introduced by the new Trump Administration.
Both shippers and carriers feel growing urgency for the logistics industry to agree on a common standard for key performance indicators (KPIs), as the sector’s benchmarks have continued to evolve since the COVID-19 pandemic, according to research from freight brokerage RXO.
The feeling is nearly universal, with 87% of shippers and 90% of carriers agreeing that there should be set KPI industry standards, up from 78% and 74% respectively in 2022, according to results from “The Logistics Professional’s Guide to KPIs,” an RXO research study conducted in collaboration with third-party research firm Qualtrics.
"Managing supply chain data is incredibly important, but it’s not easy. What technology to use, which metrics to track, where to set benchmarks, how to leverage data to drive action – modern logistics professionals grapple with all these challenges,” Ben Steffes, VP of Solutions & Strategy at RXO, said in a release.
Additional results from the survey showed that shippers are more data-driven than they were in the past; 86% of shippers reference their logistics KPIs at least weekly (up from 79% in 2022), and 45% of shippers reference them daily (up from 32% in 2022).
Despite that sharpened focus, performance benchmarks have become slightly more lenient, the survey showed. Industry performance standards for core transportation KPIs—such as on-time performance, payables, and tender acceptance—are generally consistent with 2022, but the underlying data shows a tendency to be a bit more forgiving, RXO said.
One solution is to be a shipper-of-choice for your chosen carriers. That strategy can enable better rates and more capacity, as RXO found 95% of carriers said inefficient shipping practices impact the rates they give to shippers, and 99% of carriers take a shipper’s KPI expectations into account before agreeing to move a shipment.
“KPIs are essential for effective supply chain management and continuous improvement, and they’re always evolving,” Steffes said. “Shifts in consumer demand and an influx of technology are driving this change, in combination with the dynamic and fragmented nature of the freight market. To optimize performance, businesses need consistent measurement and reporting. We released this study to help shippers and carriers benchmark their standards against how their peers approach KPIs today.”