Acquiring lift trucks or forklifts is a significant financial undertaking. Designed to simplify heavy lifting and enhance productivity, these machines play a crucial role in ensuring efficient operations across industries like manufacturing and logistics, and their cost reflects that.
It’s a must, then, for businesses that plan to grow their fleet of lift trucks to prepare for this endeavour in a thoughtful manner. With a well-planned budget, you can secure the right equipment for your facility without straining your resources, allowing you to make a sound investment that benefits your operations in the long run. Here’s a guide on how you can plan your finances for building or adding to your forklift fleet.
Assess Your Operational Needs to Determine Exactly What You Need
Your choice of lift truck should align with the specific demands of your business. It’s a good idea to start by evaluating the type and volume of materials your facility handles. Will the lift truck primarily transport lightweight goods, or does your operation involve heavier loads requiring a higher capacity?
Additionally, consider the environment in which the machinery will be used. Indoor warehouses, for instance, might require compact, electric-powered models, whereas outdoor applications may need robust diesel forklifts. By knowing exactly what your business requires, you can zero in on the lift truck capabilities and features that matter most to you and have an easier time balancing your operational needs with your budget.
Consider the Initial Cost of the Unit as Well as Its Add-Ons
The base price of a lift truck is only part of the financial picture. Many models require additional attachments or modifications to meet specific operational requirements. For instance, a paper roll clamp or side shifter may be essential for your tasks but will add to the cost.
Furthermore, consider whether extended warranties or service packages are worth including in your purchase. While these might increase the upfront expense, they can reduce maintenance costs and downtime later. To avoid surprises, request a detailed quote that includes all potential add-ons and optional features of the models you are interested in.
Set Aside Funds for the Unit’s Maintenance and Repair Needs
Just like other types of machinery, lift trucks require routine maintenance to stay reliable and efficient. Your budget, consequently, should account for regular servicing costs, including oil changes, tyre replacements, and brake inspections. These expenses vary depending on whether the equipment is new or used, with older models typically requiring more frequent repairs.
You should also factor in costs for emergency breakdowns, which, if not prepared for, could disrupt operations and inflate your expenditure. In order to assess how much you need to set aside for upkeep and repairs, research the maintenance costs for the brand and model you’re thinking of purchasing.
Evaluate the Financing Options That Your Business Can Access
Paying outright for a lift truck is an impractical option for many businesses. The good news is that there are leasing or financing options that will allow you to spread the cost of the purchase over time and preserve cash flow for your facility’s other operational needs.
Leasing often provides lower monthly payments, making it suitable for businesses that prioritise short-term affordability. On the other hand, financing through a loan enables you to eventually own the equipment. To determine the choice that best matches your operation’s needs, compare options from various lenders and pay close attention to interest rates, repayment terms, and flexibility.
Account for Operator Training and Set Aside Funds for It
Investing in a lift truck goes beyond the machine itself, as you’ll also need to ensure it’s operated safely and efficiently. More than just a legal requirement, properly training your operators is a measure that will allow you to save on costs in the long run. This is because trained operators are less likely to cause accidents or to misuse equipment, which reduces repair costs and liability.
Aside from this, well-trained staff can maximise the productivity of the lift truck, ensuring you get the most value from your investment. You can check out certification courses and refresher training for your lift truck operators and add the cost of those classes to your budget.
Research Energy and Fuel Costs
Energy and fuel expenses can significantly impact the total cost of owning a lift truck. Electric forklifts, for example, are becoming more popular as of late due to their lower operating costs and environmental benefits. However, they often require an upfront investment in charging infrastructure, which can strain your initial budget.
The other options are diesel and LPG models. These might be more affordable initially, but they are also expected to incur higher fuel costs over time. To determine which option is more financially sound and within your budget, evaluate the cost of energy or fuel in your region and calculate the long-term expenses associated with each power source. This will help you make an informed choice that aligns with your financial plan.
Include Insurance and Compliance Costs in the Budget
Insurance is a crucial consideration when purchasing a lift truck. Having one can offer you a buffer against the losses due to damage, theft, and liability. It’s a practical way of protecting your investment against unforeseen events.
Additionally, lift trucks must meet specific safety and compliance standards, which may involve inspections and certifications. Failing to account for these costs can lead to non-compliance penalties or increased risks. Research compliance requirements for your area and incorporate these expenses into your budget to avoid unplanned expenses later.
Acquiring a lift truck is a significant financial commitment, but with careful planning, it can become a valuable asset for your business. By addressing factors such as operational needs, financing, maintenance, and compliance, you ensure that your purchase is well-suited to your budget and long-term goals.
