Unseen Ways Your Forklift Fleet Leaks Money

It’s no secret that forklifts require maintenance, but what often goes unnoticed are the hidden costs that quietly pile up over time. From inefficient fuel usage to overlooked wear and tear, these expenses can snowball into significant losses if not properly managed. Even with routine upkeep, gaps in maintenance or improper use could be silently draining your budget. Read on to uncover the subtle ways your forklift fleet might be costing you more than you realize—and what you can do to stop the leaks.

Underestimating the Cost of Ownership

The total capital investment and operational costs for a forklift are often called the "true cost of ownership." Unfortunately, many forklift buyers don't consider the full cost when investing in a new forklift. Instead, they look only at the capital investment and forget many of the operating costs. 

This leads to cutting corners down the line as owners focus on reducing operational costs to diminish their total cost of ownership. However, cutting corners has the opposite effect and increases the cost per hour of operation. A thorough analysis of your forklift telematics will tell you if your fleet is underperforming because of a penny-wise, pound-foolish approach to forklift operating expenses.

Focusing On Corrective Maintenance

One place where many forklift owners look to cut operational costs is in forklift maintenance. While nearly every forklift owner will tell you that maintenance is important, some mean only the most basic maintenance rather than the recommended preventative maintenance.

The problem with that thinking is that basic maintenance shifts the focus from keeping a forklift running to repairing one already broken down. This is often referred to as the difference between preventative and corrective maintenance, and it presents an enormous expense. 

Preventative maintenance is a recurring fixed cost to maintain your forklift fleet, which is more expensive than basic maintenance. However, corrective maintenance occurs after a forklift has already broken down. That means the actual cost is the total expense of the repair, the lost productivity, wages for idle workers, and perhaps even a rental forklift. Together, that's much more expensive than a simple preventative maintenance service plan.

Using a Mis-Sized Forklift Fleet

Knowing exactly how many forklifts your fleet needs can be challenging. Traditionally, managers have guesstimated whether they have too many or too few forklifts by simply walking around and eye-balling how many look busy. That’s an imprecise metric at best.

To really understand whether or not you have a "right-sized" fleet, you need to measure forklift activity. Forklift telematics are the solution. A telematics-integrated forklift fleet management system collects all the forklift activity data you need to determine whether your team is actually busy or just looks busy. Analyzing this data will reveal if you need to invest in more forklifts, sell some of your existing models, or simply reallocate resources from one task to another.

Using the Wrong Tool for the Job

You might be able to drive a nail with a wrench, but it doesn't do the job as effectively as a hammer. The same concept is true of forklifts. Forklifts can be versatile machines, but that doesn't make them Swiss army knives. They aren't suitable for every job in your facility. For example, if you're using your forklifts to move materials over long distances, you could save money by switching that job to a tow tractor.

If your facility is like most, you use your forklifts for a number of jobs. If you aren't sure if they are the best tool for the task, analyze your forklift management software. Telematics will tell you where forklifts are operating at peak efficiency and where they are struggling. This will help you determine where you might be better served with more specialized equipment. To that end, if you find yourself investing in various machines, consider sticking with the same brand. Sourcing your equipment from a single brand streamlines maintenance and unlocks savings.

Selecting the Wrong Type of Forklift Lease

For a lot of operations, renting forklifts seasonally makes more fiscal sense than purchasing machines to sit idle much of the year. However, carefully understanding the lease terms for any rental is vital if you want to get the most out of your borrowed fleet.

When considering what lease is best for your needs, you must know approximately how many hours you'll use the forklifts. Many operations overestimate this number to avoid paying overages. However, this is not always the best strategy. Often, going with less expensive leases and paying for a little overage is more cost-effective than buying hours that will go unused. 

For example, if you know you'll need ten forklifts, it can be tempting to lease them all for the same 2,000 hours. However, depending on your needs, you might be better served leasing half at 2,000 hours, the other half at 1,000 hours, and planning on spending 200 hours in overages.

To get the closest estimate of how many hours you'll actually need, refer back to your forklift fleet management system. Historical records will give you the best indication of how many additional hours you required in previous years, allowing you to forecast the most accurate projections for your next busy season.

Protect Your Bottom Line

These are some of the most common ways your forklift fleet leaks money, but there are many other small, unnecessary expenses that could be bleeding you dry. That’s where we can help. Our forklift telematics experts can help you find the right telematics system for your enterprise. By tracking real data, you can drive actionable results and protect your bottom line. To learn more about telematics or to request a quote, contact us online or visit one of our locations.

Auburn 253-854-5438
Pasco 509-547-7413
Wenatchee 509-663-9009
Yakima 509-457-5137

Further Reading
When Leasing a Forklift Makes Sense
5 Benefits of Telematics for Fleet Management
3 Ridiculous Reasons You’re Not Using Telematics