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.

 

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. 

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.

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.