Gas vs. Electric - What Equipment is Right for Your Business?

1st Quarter 2015
Customer Newsletter
In This Issue:
Gas vs. Electric - Which is Right for Your Business?
Improving Workplace Safety with Blue Lights
Introducing an Industry Leading Two Year Factory Warranty
CMH Services Again Recognized as an MVP
Community Involvement
Gas vs. Electric - What Equipment is Right for Your Business?
Twenty years ago the decision to go with an LP gas or electric forklift often depended
on the application. There were real performance and emission differences between LP
gas and electric trucks. Today, for most uses, LP gas and electric trucks are
functionally equivalent. So why choose one over the other? There are trade offs that
have to be considered. Purchase costs are higher for electric trucks, but on-going
operating costs are more expensive for LP gas.
Sometimes we are asked to help customers calculate the financial value of the trade
offs. To perform the analysis, there is some data required. At a high level, the actual
equipment alternatives must be identified and their costs determined. This includes
batteries, chargers and wiring, or layout modifications to the building. If batteries will
need replacement within the useful life of the truck, that must be factored in. Fuel costs
are next. For LP trucks, assumptions must me made about cost per gallon and fuel use
per hour of operation. On the electric side, cost per kilowatt hour (KWH) and KWH use
per hour of truck operation are calculated. Finally, maintenance cost per hour
assumptions are made. In the end, everything is expressed in annual costs. Purchase
costs are captured as depreciation. Operating costs are captured under fuel and
maintenance based on the number of annual hours the equipment is used. The
outcome is an all inclusive annual cost that can be compared for both types of truck.
The last time we performed an analysis, the electric truck, battery/charger, and wiring,
were fourteen thousand dollars more expensive up front than the LP lift. LP fuel was
$2.00 per gallon. The facility paid $.09 per KWH. However, when the math was
completed, the electric truck was six thousand dollars cheaper to operate per
year. Most of this difference was fuel cost. With an assumed seven year useful life, the
difference was paid back in a little over two years. For the final five years, the annual
benefit all hits the bottom line. There are a number of variables that can change this
result, and there are application differences and preferences to consider, but up front
costs alone as a basis for deciding “gas or electric” can be deceptive. If you are
interested in analyzing your fleet, we would like to help you.
John Gorman, CFO/COO
For Safety Consider the BLUE LIGHT SPECIAL
Walking near the end of an aisle in a warehouse can present the same type of danger
as crossing a busy street. The main difference is that in a warehouse, the view of the
oncoming traffic may be obscured by the product in the racks.
In order to give notice of approaching lift truck traffic, a Bright Blue Safety Spot Light
can be installed on your lift trucks that will shine ten feet in front of the lift truck reflecting
a bright blue spot on the warehouse floor. This blue spot signals to any oncoming
traffic, both pedestrian along with other lift trucks, that a lift truck is approaching.
We have installed these Safety Blue Lights at several large customer locations as part
of their Accident Reduction and Safety Initiatives. The feedback from both the
operators and the managers has been very positive. Giving warning of an approaching
lift truck with a visible blue spot, along with the traditional sounding of the horn, has
elevated everyone’s sense of awareness and has reduced accidents in both
manufacturing and warehouse environments.
These lights can be installed on any lift truck or moving vehicle in your operation. For a
FREE EVALUATION and demonstration, please contact your local aftermarket
representative.
Frank Tyler, Aftermarket Sales Representative
The Best Warranty in the Forklift Business
Nissan Forklift by Unicarriers has announced a two year, unlimited hours warranty. It is
now the industry's best standard limited warranty, and it's included on every Class I, IV,
and V forklift that UCA sells. It's a distinct and quantifiable advantage we want to give to
our customers.
Unlike some competitive warranties, this warranty is not a limited time offer or a
gimmick to boost sales. This new standard limited warranty is a reflection of the uptime,
performance, and reliability that is built into each and every forklift that has the
UniCarriers name on it. It's a promise that UCA can only make by manufacturing forklifts
designed, engineered, and built to the strictest specifications and exacting standards.
Now it's time you discover this promise for yourself. Contact us
today.
Mark Brown, Vice President of Sales and Marketing
CMH Services Again Recognized as an Industry Leader
CMH Services has been awarded the prestigious MVP (Most Valuable Partner) Status
for 2015 in a program from the industry's trade association, MHEDA (Material Handling
Equipment Distributors Association). To be among the less than 5% of the association's
membership earning the award, CMH Services successfully demonstrated a
commitment to business excellence, professionalism, and good stewardship.
This is the fourth consecutive year that CMH Services has been awarded MVP status.
To qualify, CMH Services was required to provide evidence of our commitment to our
partners in business including our customers, employees, and suppliers. In winning this
award, CMH Services had to satisfy criteria in the areas of industry advocacy, customer
service, safety practices, business networking, continuing education, and business best
practices.
To quote Scott Hennie, the president of our industry's trade association, MHEDA,
"Working with a MHEDA MVP means that you are working with the 'Best of the Best'!"
Kevin Kazimir, IT Manager
Community Corner
The Christmas season is known for selfless acts of giving to those less fortunate.
However, it is equally important to continue those acts of kindness throughout the year.
Below are a few of the volunteer activities that are appreciated at any time throughout
the year:
• Donate to food banks
• Tutor or mentor children
• Visit the elderly in nursing homes
• Deliver meals on wheels
Once again CMH Services participated in different volunteering venues throughout the
holiday season; these included:
• The Charleston location collected items for Doc Williams SPCA in Berkeley
County
• The Columbia and Duncan locations showed their appreciation of our armed
forces by donating items and money to Operation Gratitude
• The Duncan location cooked and served lasagna for families staying at the
Ronald McDonald House of Greenville
"Volunteers are the only human beings on the face of the earth who reflect this nation's
compassion, unselfish caring, patience, and just plain loving one another."
- Erma Bombeck
Brenda Reese, Human Resources Manager