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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 1219 LPG Counterbalanced Truck

Exceptional performance – Undeniable excellence

Superior capacity retention, ample performance, and impressive ergonomics are the backbone of the Linde Series 1219. An exceptional truck, designed with extreme versatility, offering the ability to be used in many different applications. The Linde Series 1219 is the truck you want and the truck your supply chain needs.

Power and Performance

With lift capacities of 5,000-6,500 lbs, there is no limit to what the Series 1219 can do for your operation.  Available in four different models and four capacity ranges, this truck offers generous power and traction, highlighting high flotation tires, with outstanding maneuverability and establishes the ability to operate over a multitude of terrains.  In addition, the Series 1219 has excellent cornering stability, allowing the operator to maneuver easily across the yard in many outdoor applications. The advanced engine technology and durable driveline provides the operator the capacity for maximum productivity, including an exclusive Linde mast design with nested channels, reduced cylinder cross-section and protected internal hose reeving, creating a 20,000 hour chassis design. 

Efficiency

The one-piece solid steel cast steer axle is made up of the strongest axle construction preventing welds to fail which equates to less downtime.  The ergonomic layout of all hydraulic functions allows for a high level of precision, control, and working performance. Extended maintenance intervals are achieved by using high-quality parts with assemblies and low fuel consumption as well as low exhaust emissions, offering decreased downtime for the truck and operator.

Operator Ease

The Linde Series 1219 has an operator focused compartment offering a spacious interior and accessibility from both sides of the truck.  The ergonomically designed workplace produces a low-stress environment with a smoother ride, introducing less fatigue, low noise, and simple operation. In addition, there are several speed control settings allowing flexibility and controlled movement. The functional positioning of deck-mounted hydraulic controls along with clearview mast, increasing all-around visibility, creates a truly effective truck.

The Linde Series 1219 embodies every feature your warehouse operation demands to be effective, efficient, and with an emphasis on the operator.

We Keep the World Moving

Have you ever thought about how you receive products and supplies?  I’m not talking about going to the store and picking up an item or ordering something online where it later appears by the hands of your preferred delivery service.  No, what I’m asking is a little deeper than that.  For instance, have you ever wondered how those products reach your hands?

In this ever-evolving world, we can virtually receive products from anywhere on the planet.  That fact alone is amazing and often incredible to grasp or realize.  But how does one get a product from point A, to B or C and so-on? 

Today’s economy has created consumers who expect a quick turnaround on receiving goods.  From order to delivery, each step within the supply chain must work seamlessly to complete the result of delivering the product from warehouse to recipient.  The key piece of equipment that connects each sequence and stop along the way is the forklift.  To ensure productivity and expedited service, forklifts provide the delivery of bulk items efficiently, effectively and are the crucial piece to the supply chain puzzle.  Forklifts are the chosen vehicle, keeping America’s inventory moving.  From supplying, storing and picking to transferring goods and docking, forklifts are the heartbeat of any logistics network, keeping the global economy moving. 

How do we readily and easily receive goods and products?  How do we keep America’s economy thriving? 

With forklifts.  We Keep the World Moving.

How to Modernize Your Warehouse

Do you want to stay ahead of the competition in 2020? If so, it’s important to modernize your warehouse. This includes technology, efficient equipment, and implementing sustainable efforts. Look below to see where your warehouse should improve upon.

Technology

A key component of modernization for any business is technology. Technology will give you the tools to be more productive and efficient in the warehouse. One way to incorporate this is by going paperless. This will allow for improvement in inventory management. All tasks and progress in the warehouse should be documented on computers/I-pads. By doing this you can instantly access all of the important documents used in your warehouse. 

Efficient Equipment 

Is your operating equipment up to date? Stay ahead of the competition by investing in new equipment. Some machines can do double the work that 2 or 3 older machines are able to do. This will cut costs for maintenance on all of the machines as well as saving your business time. 

Sustainable efforts 

Modern efforts in anything today means being sustainable. A part of upgrading your equipment is equipment that is beneficial to the environment. Electric equipment is better for the environment in reducing emissions and also saves money on fuel costs. A recycling program should also be implemented. Cardboard boxes make up a vast majority of most warehouses. Employees should be trained and informed on how to recycle. 
In 2020, more businesses will be modernizing their warehouses. By staying ahead of the competition and creating a plan for your warehouse to incorporate these efforts, will ensure your company sees a big return on this investment in the future. KION North America wants to see your company grow. If you find you need help with the latest, modern equipment our team would be happy to assist.