KION North America

Receive Huge Savings with the Section 179 Tax Benefit

For manufacturers, distribution centers, fulfillment centers, and the like, using forklifts are what keeps the world and their businesses moving.  However, equipping operations with the proper tools to be successful can be expensive.  From purchasing heavy machinery to maintaining multiple pieces of equipment, costs can begin to add up.  To stay ahead of the competition, businesses must keep operating. And to continue to grow, one must take advantage of every savings opportunity available.  This includes tax write-offs that businesses should be aware of before the end of the year that can aide in substantial savings.  Below we review a specific tax advantage for companies who purchase forklifts for their operation that can ultimately save owners thousands of dollars. 

Section 179 Tax Benefit 

The Section 179 tax benefit was created to help and incentivize smaller business owners to invest in themselves by purchasing equipment for their business.  However, the benefit is also available to all businesses that can qualify.  Section 179 Tax Benefit enables businesses to write-off the full amount of the purchase price for qualifying equipment from your gross income for the current tax year.  For 2020, this means any qualifying equipment that has been purchased or financed and put into use between January 1, 2020 – December 31, 2020. 

Caps to the 179 Tax Benefit

There are a few stipulations to the tax benefit.  For 2020, the cap for the total amount written off is $1,040,000 if the total amount of purchased equipment does not surpass $2,590,000.  For small businesses, this means the whole qualifying purchase up to $1,040,000 can be written off for 2020!  As soon as the total purchase amount is exceeded ($2,590,000) the Section 179 tax benefit will phase out and the whole deduction will go away once $3,630,000 in equipment purchases is attained.

Additional Bonus Depreciation may be Available

Bonus Depreciation is not available every year but IS AVAILABLE for 2020.  If you are a larger business and you have met or exceeded the tax liability threshold ($2,590,000) the Bonus Depreciation can be very beneficial.  This bonus depreciation is at 100% and applies to NEW and USED equipment purchased or financed during the 2020 calendar year. 

For a quick recap of potential Tax Benefits:

Deduction Limit on new/used equipment in 2020

  • $1,040,000

Spending Cap on equipment purchased/financed in 2020

  • $2,590,000

Bonus Depreciation

  • 100% for 2020

Businesses can see huge savings on their bottom line by taking advantage of the Section 179 Tax Benefit.  This tool can help businesses, especially smaller corporations, grow their organization.  See the example below for potential savings:

Example of Section 179 Tax Benefits for 2020
Purchase Price:  $70,000
Write-off for Year 1 $1,040,000
Section 179 Deduction $35,000
Total 1st Year Deduction $35,000
Cash Savings on your purchase (based on 35% tax bracket) $24,500

Cost of Equipment with Tax Benefits $45,500
That’s $24,500 in equipment savings!

To calculate your estimated savings, click the Calculator.  For guidance on your specific tax benefits, please contact your tax advisor.

 

Preventative Measures for operating a forklift in cold weather

Depending on where you live, you may still be experiencing pops of warm weather – that occasional day that makes you yearn for spring.  But for many of us, we are now seeing jolts of colder weather as a preview of consistent days ahead of us.  If your operation is dependent on a forklift to move goods from point A to B, you may have noticed a difference in functionality in your equipment on those cooler days.  Below we review a checklist of considerations and details to be aware of when operating a forklift in cold temperatures.

Slow Down

You may have read slow down and assumed we are only talking about keeping speeds at a safe limit.  That is true – when operating a forklift in cold temperatures where precipitation is present, it is extremely important to maneuver the truck carefully just as you would your vehicle, but there are further items to be aware of as well.  Slowing down also means to prevent yourself from personally working hurriedly.  Beyond slowing down when operating the truck, you must also use caution when mounting and dismounting the forklift truck.  This is particularly noted when trucks are transporting goods indoors to outdoors and vice versa.  Traveling from warm, indoor temperatures to the cold creates condensation which can make steps and handles on the forklift truck slippery and can ultimately create an unsafe work environment.  Also, if there is snow/ice present, make sure to salt the pavement to create traction for the forklift and to also prevent unnecessary falls.

Ensure your forklift truck has been properly maintained

There are potential problems that can ensue if attempting to operate a forklift truck during extremely cold temperatures.  Side effects include a multitude of fuel issues that include stalling, hard/false starts, unreliable power output, and ultimately excessive downtime.  For gas and diesel forklifts, having a gas tank that is low on fuel can also cause condensation to form inside, forcing the truck to sputter or stop.  Extreme cold temperatures also causes oil to thicken to the consistency of honey.  This is a concern with both engine and operating hydraulics.  The engine will have a hard time to start, as the thick oil will make the starter work hard.  With electric-powered trucks, amp draw will increase for all trucks, hydraulic-powered functions will slow down. There are some effects from the cold that cannot be prevented, however, ensuring your truck is well maintained will safeguard it from additionalunnecessary issues.

Be aware that for LPG and diesel forklifts, cold weather requires more fuel to operate.  Keeping this in mind will help you better plan stops and refueling.

Preventative personal safety measures

While being aware of ways to operate a forklift truck during cold temperatures, it is just as important to listen to your own body’s needs.  When operating a forklift in cold temperatures, the inclination is to wear multiple layers of clothing to keep warm.  However, to prevent accidents, it is recommended to avoid wearing bulky clothing to prevent getting caught or snagged on unintended areas in the workspace.  Also, wearing bulky clothing for multiple hours can cause the individual to overheat, creating an unsafe operating experience.  It is suggested to wear tight fit clothing when operating a forklift truck and to avoid wearing bulky clothing and scarves. 

The Linde Series 1191 Electric Tow Tractor: The best kept secret your Warehouse needs

Looking at warehouse operations and supply chains, one immediately gravitates to the obvious forklift truck when considering ways to transport products, and the versatility of Linde trucks offers continuous availability and uses in varying applications.  But what if your operation isn’t transporting goods on pallets?  What if your business moves products in different ways?  If that describes your distribution process or at least a portion of it, the Linde Series 1191 Electric Tow Tractor is the truck you need in your operation.  Offering reliable performance, flexibility and stability in an ergonomically packaged truck.

Reliable Performance

The Series 1191 is exceptionally energy efficient with the Linde digital controller (LAC) and a powerful 4.5kW sealed AC drive motor that promotes impressive pulling power. With remarkable pulling capacity of 13,000lbs., and a 270 lb. drawbar pull, the Series 1191 (P60) is always at the ready to tow a multitude of goods and is ideal for internal and external applications.  The heavy-duty steel chassis and impact resistant upper structures allow for maximum structural integrity, delivering a truly stable and rugged vehicle.

Flexibility

Tow tractors can transport and deliver multiple loads with the addition of a variety of trailers.  These trailers ensure the ability to transfer many loads to various locations across short and long distances, including in-house transports and supplying assembly lines.  Sorting orders is fast and efficient and last-minute loose items can be added to the trailer seamlessly.  In addition, loading products can be accomplished from either side of the trailer attachments, allowing quick loading stops. 

If the goal of your operation is to have limited stock on the floor, The Series 1191 Electric Tow Tractor can be supplied and ready to replenish depleted materials at a moment’s notice.  Transporting goods with the Series 1191 is a stress-free process and allows the need for fewer operators on the floor while moving the same amount of product.  Fewer operators equals less congestion on the warehouse floor and a lower risk for accidents.

Ergonomically Designed

The Series 1191 is not only constructed for dependable performance and flexibility but is also ergonomically designed and fabricated to ensure many comfortable hours of use.  Non-slip steps with wide access openings on either side ensures stable and convenient access to the truck, as well as a spacious workspace featuring an angled foot well with ample legroom.  The adjustable seat allows flexibility to customize comfort for the individual operator and the intuitive automotive style control levers with adjustable steering wheel, enforce an unparalleled working environment.   All around visibility and unobstructed views eliminate the need for constant twisting and turning to gain field of view.  Independent suspension on all wheels ensures a better ride, enhanced handling, and ensures smooth traveling on various surfaces.

A New Lease on Quality – The Future has Arrived

The Linde Material Handling leasing program ensures competitive leasing options for the Linde Series 1202 Hydrostatic drive truck.  Compromising on quality is now a thing of the past.  You now have the opportunity to add high-end trucks to your fleet for the price of a lesser competitor. 

The Series 1202 offers the only true 100% hydrostatic drive system that powers the wheels with hydraulic fluid instead of a mechanical powertrain.  This technology brings a better and more effective truck including automatic acceleration and deceleration, preventing wear on the brakes and tires, and delivering smoother transitions with speed.  These advancements, along with optimized energy consumption, increased handling capacity, and virtually maintenance-free engine, create a cost-efficient and robust, productive truck.

For many warehouse operations, the thought of a truck that encompasses such advanced and precise qualities would have been unrealistic in the past and an option that most couldn’t afford. However, those are beliefs from the past and now the future has arrived with affordability that has never been seen before.

The Linde Series 1202 is now an affordable option for your supply chain solutions

With extreme versatility including superior functionality in the following applications:

  • Factory
  • Grocery
  • Beverage
  • Food
  • Logistics
  • Electronics
  • Automotive
  • Chemical
  • Recycling
  • Lumber

You now have the ability to be in the drivers seat with affordable options for your operation.

By leasing the Series 1202, there are little or no upfront costs with lower monthly rates which keeps more money in your pocket.  In addition, productivity is increased with less downtime due to the improved fuel consumption, decreased maintenance intervals, and the hydrostatic drive system.

Let’s take a look at how leasing versus buying is the better solution to get the trucks you want at the price you need.

  • No (or little) upfront costs
  • New equipment on a regular basis – high productivity and less downtime
  • Lower monthly rates – more working capital
  • Tied in with maintenance agreements – decreased downtime and heightened productivity
  • Flexibility – adaptable to your needs
  • Frees up working capital – enabling funds for other purchases
  • Lease payments are tax-deductible

Top considerations in choosing a forklift in the world of pallet manufacturing and recycling

What might seem obvious in choosing a truck for delivery and removal of products, are often items that are overlooked for selecting the best equipment for the job.  For the handling and moving of new and used pallets, one must dig a little deeper in determining uses as well as environmental concerns.

Width, height and weight of loads

Determining the number of pallets, on average, to transfer as well as the maximum delivery height will help determine the type of truck needed.  With the average pallet weighing 33-48 lbs. each, calculations must be made to determine travel capacity.

Tire choice

Choosing between pneumatic, solid and cushion wheels, based on your operating environment, will enable the most practical use of the truck as well as extending longevity in your equipment.

Electric vs. fuel

Establishing time needed to transport pallets will dictate the economical choice of the best use of power.  Electric systems allow continued use with little downtime.  Trucks can be easily charged at any power point via wall socket versus fuel systems that may require increased maintenance.

Determining environmental space

Looking at the space the forklift will be transporting the pallets will have a big impact on your truck decision.  Will you be transporting down ailes?  Are those areas narrow or wide?  Will you be transporting across a large area?  Deciding those answers will help conclude the best truck for use.

Increasing your Productivity

Getting the Right Product to the Right Place at the Right Time

Communication

Communication is key in supply chains.  Although any mode of communication is helpful, face-to-face proves to be most effective to decrease the likelihood of confusion and miscommunication.  It also allows for opportunities for team members to identify processes that are not working or are not being implemented correctly, enabling the possibility for new ideas and procedures.  Considering social distancing practices, communication can still be effectively accomplished.  Businesses are now using technology in different ways i.e. through Teams and other platforms to emulate person-to-person contact versus emails and memos.  Finding ways to keep communication ongoing across team members also allows the opportunity to address upcoming events, ahead of time, to discuss and prevent potential issues.

Strengthening Partnerships

The adages, “there is strength in numbers” and “it takes a village” is true.  To be effective in business and life, lines of communication are vital and connect us to make a bigger impact.  By keeping lines of communication fluid and building those relationships with our supply chain lines, effectiveness, and efficiency flourish.  Connecting each link in the supply chain allows a better understanding of processes and empowers everyone to increase and improve productivity. 

Review Growth and Update Processes

Improving and increasing productivity takes constant monitoring and reviewing in pursuit of developing the best production processes.  The Percent Order Index is often used to measure supply chain performance.  This tool looks at the timing of delivery of goods as well as reviewing the item arriving undamaged and with its appropriate paperwork.  To continue to grow and streamline procedures, companies must constantly be in the pursuit of improving workplace practices.   By reviewing these processes, businesses can specifically locate opportunities to be more successful and productive.

The Linde Series 5215 Order Picker 

If you’re seeking the newest, cutting-edge, Order Picker for your warehouse operations, look no further than the Linde Model V15 Series 5215 Order Picker.  With attention to operator comfort, ergonomics, performance, and reliability, the V15 delivers exceptional performance for your warehouse supply chain solutions. 

Performance Driven

The Linde Model V15 Series 5215 Order Picker is the answer to your most challenging environments and demanding applications.  Reaching heights up to 360” and a capacity of 3,000lbs, this truck also has the ability to maintain capacity with very little mast deflection, resulting in operator confidence.  In addition to its ability to accommodate any warehouse application, the Series 5215 utilizes 100% AC motor technology along with the latest controls, allowing the operator to smoothly operate the truck.  While operating the truck, Linde’s curve control automatically reduces driving speed based on steering angle and lifting height of the load, giving the operator added assurance. Accurate execution is realized with the unique clamp design that automatically clamps and centers pallets with any stringer ranging from 1” to 5”.  This added benefit eliminates the need for standardization of pallets or the use of workarounds.

Controlled Operation

While focusing on operator comfort and productivity, the Series 5215 offers a premium foot mat with spacious foot and brake area allowing continuous change of foot position throughout the day. Within the operator platform, the multifunction control handle remains stationary, allowing a solid, secure four-point stance for the operator.  By using a thumb tiller to travel, the control handle limits wrist movement, while keeping the operator in contact with the truck at all times. 

Reliabilty

A one piece low profile cover provides greater operator visibility and full access to key components for service access. The low maintenance AC traction motor with built in thermal protection is enclosed for protection against damage, debris or moisture. The CANbus design and diagnostics can be controlled through a single point plug and fault codes can be easily displayed. These Linde features increase productivity, efficiency and extended maintenance intervals.  

The Linde Series 346, Series 1346, and Series 1347 | A New Age of Productivity

The Pursuit of Excellence

The advancement of technology for industrial trucks is ever changing and vital as companies are increasingly looking for ways to excel in efficiency.  The continued pursuit to do things better and faster is the driving force for many.  Companies must consider not only cost but must also look at the big picture of maintaining and increasing efficiency and productivity, as well as employee safety.

Increased Efficiency

The traditional lead-acid battery has allowed us to perform many tasks, and at the time it was introduced to market, allowed companies to be more efficient and effective in production.  However, the battery comes with many negative factors that make its use counterintuitive. Lithium-Ion batteries are forging a new path for companies, requiring little down time and increased proficiency in material handling of supply chains.  The battery itself, whether it be lead-acid or lithium-ion, does not stand alone as the champion for industrial trucks, but the performance difference comes from the combined system of battery and truck. The combination of the Linde truck with lithium-ion batteries compliment the many progressive features Linde trucks hold, making these batteries the new standard in industrial trucks – focusing less on which lithium-ion battery you put in the truck, but how the truck uses that energy.

Unrivaled Energy Efficiency

Companies can decide which capacity sized battery to choose based on their intensity needs.  For example, a forklift could run for a 3-shift operation with the large battery, offering extreme increases in productivity and keeping processes moving. A perfect marriage of truck and battery comes from the exclusive Linde compact drive axle, which eliminates wasteful electrical losses.  Lithium-ion batteries are different in that you can more easily adjust the electric charge capacity to suit the truck application.  Looking at the highly efficient Series 346 for example, the Linde truck would use less energy than a competitor truck while moving the same loads.  The lower energy usage allows you to select a smaller capacity battery, which can save a significant amount of money with lithium-ion technology.  Using lithium-ion batteries in conjunction with an energy-efficient Linde truck proves to be the most cost-effective method because a lower capacity battery can support the same productivity.

Decreased Downtime

Upgrading trucks from manual use to battery supported has increased timing and efficiency, but requires frequent battery changes, taking away from employee productivity. For three shift operations, companies could end up changing lead-acid batteries at least five times.   In addition, changing a battery requires its 1.5-ton weight to be removed with the aid of another forklift or an overhead crane.  For a typical lead-acid battery, regular maintenance includes replenishment of water, overnight equalization charging, and occasional exposure to battery acid.  While these activities are important, they represent downtime for the truck.  Charging a Linde Series 346, Series 1346 or Series 1347 truck, with lithium-ion battery, has never been easier and can be completed at different stopping points or near a break area for example, allowing the truck to complete a quick re-charge during scheduled employee downtime.  Another constructive use is that these trucks do not require a full charge cycle.  Although the battery may be charged completely within an hour, short charges are also encouraged. 

The New Linde Series 1202 Hydrostat Truck: The Breakthrough of Intuitive Design

The Linde Series 1202 is unlike any truck on the market, offering unwavering capabilities you won’t find on any other truck.  Painstakingly constructed to deliver a superior ergonomic truck, encompassing every feature coveted by the world of material handling withfocuses on operating experience, design-to-service, efficiency, versatility and safety. A steadfast design with advanced precision, the Series 1202 is the perfect marriage between man and machine, setting a new industry standard in the world of forklift trucks.

Ergonomically Designed

The Series 1202 is truly operator centered with its straightforward use, focus on drivability as well as features that increase driver protection and decrease fatigue.  The panoramic armored glass roof, slim A-pillars, and low front plate provides outstanding visibility in all directions.  The ergonomic workstation includes a steering column with control levers that are easily in reach along the multi-function armrest. Increased headroom with 12 seat options offer the driver a customized driving experience. The axles, mast, and tilt cylinder are decoupled from the chassis which safeguards the operator from vibrations and shocks, protecting against postural injuries and fatigue.  In addition,reduced noise levels promote an exceptional driving experience.

Efficiency and Performance

The Series 1202 offers the only true 100% hydrostatic drive system that powers the wheels with hydraulic fluid instead of a mechanical powertrain.  This technology brings a better and more effective truck including automatic acceleration and deceleration, preventing wear on the brakes and tires and delivering smoother transitions with speed.  Dual pedal travel control increases efficiency and functionality in conjunction with the hydrostat drive.  In addition, the Series 1202 offers the lowest average automatic engine rpm that is demand controlled, including a hydrostatic drive system with axial piston technology. 

Versatility

With all 1202 trucks, asset management monitoring is a standard feature. Hour meter reading, fault codes and geo location can be monitored from any computer or smart device that has access to internet and cloud service.

Reliability

The Linde Series 1202 is a consistent dependable truck for any of your applications.  Highlighting a maximum residual capacity including, lowest center of gravity, best weight distribution, and overhead tilt cylinders.  These supportive features ensure the operator is working effectively as well as safely, reducing the risk of tipping and loading accidents.  In addition, the robust construction and maintenance-free components of the Series 1202 reinforces truck availability throughout the day, preventing prolonged downtimes. 

Forklift Capacities: How To Choose The Right Truck For The Job

With so many truck options out there, choosing the correct truck for the application can seem like a daunting task.  To enhance productivity, as well as promoting safety, selecting the appropriate truck for your operation can affect multiple layers of your supply chain.  Below we discuss tips to consider in choosing the right truck for the job.

Understanding Lift Capacity

When considering a forklift for your application, you must first look at lift capacity.  Trucks can range anywhere from 3,000 to 70,000 lbs. and offer a multitude of designs to aide in efficiency.  Each forklift has its own data plate where you can find the rated capacity.  Depending on the way the load is carried, and the weight is distributed, will change the amount of weight the forklift can safely carry. 

Knowing a trucks lift capacity does not necessarily equate to matching product in pounds. For instance, if a forklift’s data plate specifies a lift capacity of 5,000 lbs. that does not necessarily mean the truck can carry any load of 5,000 lbs. Understanding the weight, size, and position of the load will better determine the type of truck needed. 

Some questions to consider when deciding on specific truck capacity needs:

  • Where will my forklift be used (indoors or outdoors)?
  • How heavy is my typical load?
  • What is the shape of my typical load?
  • What aisle clearance do I have in the warehouse?
  • How high do my loads need to be lifted?
  • How often will my forklift be used?

Factors that affect Lift Capacity

Center of Gravity

Most counterbalanced trucks have what is called a stability triangle.  The stability triangle is a three- point suspension system that incorporates two front wheels and the center of the steer axle that supports the truck.  When the truck is at rest, the center of gravity is within the stability triangle, however, when the truck is in motion (braking, accelerating and making turns) the center of gravity shifts. It is also important to understand that an unloaded truck can tip with the counterbalance weight as well as a truck transporting a load.  According to OSHA, “the load center is the distance from the face of the forks to the load’s center of gravityMany forklifts are rated using a 24-inch load center, which means that the load’s center of gravity must be 24 inches or less from the face of the forks.”  Additional issues that can affect the center of gravity is damaged product or loads un-securely mounted, loads that are off-center, and loads that are exceeding capacity. OSHA:  Load Handling

Attachments

Warehouse operations will often add forklift attachments to aid the needs of their operation.  However, before adding any attachment, operators must consider the affect adding an attachment will have on the trucks center of gravity.  The additional weight is not the only concern, as considering the horizontal and vertical center of gravities can also affect the overall lifting.  To ensure trucks are transporting loads safely, locating the forklift attachment’s data plate will assist in determining proper lift capacity.

Tires

Choosing a forklift, based on lift capacities, involves many more factors than what the data plate states.  Each part of the truck offers their own lift capacities and can directly affect the load you intend to carry.  For example, the type of tires on the truck will help determine lift abilities.  If the truck has small or larger tires, those details will come into play on calculating load size and may require a recalculation of center of gravity. 

There are plenty of other areas to consider and address when determining the appropriate truck options for your supply chain. Calculating lift capacities and considering additional attachments, can negatively affect center of gravity, and can be overwhelming for the operator to navigate.  That’s why our dealer partners are ready to help you find the right truck for the job. Contact any of our dealer partners today at a location near you!  KION NA Dealer Network