The worst of times? The best of times!

Tony Emtage, managing director
of Centra Forklifts, puts his finance hat on to explain why commercial directors and Managers should take time to assess the true cost of forklifts, rather than simply compare initial suppliers’ quotes to search for the lowest price.

Tony Emtage, who assumed the managerial reins at Centra in 2007 following a successful role as CEO of an international manufacturing, wholesale and distribution group, says it has been a fascinating learning curve working for a company which lives and breathes the finer points of materials handling equipment.
“Materials handling efficiency is actually the glue which enables many of our clients to function,” he says, “but the only reason it can work is when a materials handling provider sees itself as a consultant – a partner which is a valued part of the business, taking the trouble to understand the client’s requirements.”
Tony says this is certainly the approach that Centra takes. “We try not to think like forklift salesmen, but instead we focus on thinking like our customers. This means that two key issues must work hand in hand: firstly, the site problem must be fully addressed and understood before any particular machine is offered as a solution; and secondly, the materials handling provider must be dedicated to having the best service backup.”

A unique machine
As reported in the Oct/Nov‘08 FTD, Centra Forklifts signed a franchise agreement with JCB last year to distribute the JCB Teletruk, and Tony spent some time in the UK where he was delighted to find that JCB’s values were very similar to his own. “The founder of JCB used to say: ‘The salesman sells the first machine, but it is service that sells the next.’ I was very impressed – it suggests a responsible approach to the commercial relationship.”
Tony says the JCB Teletruk is unique in that it uses a telescopic arm, and feels that the current difficult economic times are the best of times in which to launch something new. “Because it tackles problems in a new way, it focuses the mind on scrutinising site functionality in great detail.”
Tony is confident the JCB Teletruk will quickly find a niche here in New Zealand. Indeed, the first three units have already found homes on the Auckland wharves, loading passenger cruise ships. “In the past, that’s been a difficult job because of the gap between the ship and the wharf, plus the tide means the ship’s side doors rise and fall. The Teletruk’s ability to reach across the gap and down below the wharf means the job has become a lot easier and safer.”

Looking at the total cost
Tony says forklift buyers shouldn’t get too hung up on the initial costs, ignoring the far more crucial aspect of running costs. “It will surprise some people that typically over a truck’s lifetime, labour will cost between 70-75 percent of total costs. Labour may seem a separate cost, but should be looked at in terms of cost per goods moved. Changes to truck operating methods which improve movements per hour/day will inevitably improve profitability – hence, the JCB Teletruk factor.”
It is a known fact that forklifts may look similar, but their performance rates can vary by up to 30 percent, he adds. “Even one extra pallet moved an hour can be significant over a seven-year lifespan and would more than compensate for truck price differential.
“In today’s business climate we will encourage customers to consider business overhead costs in addition to the costs directly associated with materials handling equipment. These can all be reduced by virtue of a truck’s versatility.”

Exciting times ahead
Centra Forklifts has been in the forklift and materials handling industry for many years, and Tony says that when they looked at the opportunity to become the NZ distributor for the JCB Teletruk, they evaluated the machine thoroughly. “There is no shortage of fork truck brands currently available, and our Mitsubishi brand is a very strong contender in the market, so adding another brand was not going to make sense unless it could offer something unique,” he says.
“We quickly became very excited though. This is a product which can offer advantages to the market not available with conventional masted forklifts. In many situations it will increase efficiency, improve the handling processes with its reach capability, and save clients money by replacing multiple machines in some roles, along with the additional labour/operator costs.”

Centra Forklifts will be demonstrating the JCB Teletruk at the MHL show in July; for further information, visit www.centraforklifts.co.nz