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Lencrow Forklifts Blog

The latest tips and advice on forklifts, materials handling and industry efficiency.

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Ross GrassickGeneral

Six Considerations For Choosing the Right Forklift

Every business has different materials handling needs, so it’s important you choose the right forklift for your business to ensure you get maximum efficiency and value for money.

At Lencrow Forklifts we supply a range of forklifts for different applications, so we’ve put together this simple guide alongside a quiz to help you determine which type of forklift is right for your business. If you’re not quite there yet, these key considerations will get the right gears motion and put you on the path to your ideal forklift solution.

Indoor vs outdoor use

One of the most important factors that will influence what forklift you should choose for your business is whether you’ll be using your forklift inside a building or outdoors. This will determine which type of power or fuel supply is most suitable, being either diesel, LPG/petrol or electric.

As a general rule of thumb, if your forklift will be operating mainly indoors, electricity would be the power supply of choice due to its quiet operation and zero emissions.

Indoor or outdoor use will also determine the size and type of wheels and tyres that your forklift requires. You’ll need small, solid tyres for indoor use and larger, heavy-duty ones for outdoor operations.

Type of terrain

A second consideration is the type of terrain your forklift will be operating on, which is closely tied to whether you’ll be using it indoors or outdoors. Indoor terrain will normally be a smooth cement surface that’s found in most warehouses and loading bays, and this surface is ideally suited to the small, solid wheels of an electric forklift.

Outdoor terrain, which can be asphalt, gravel or even raw ground, is usually much less uniform than indoor surfaces, and this will influence the wheel type and power supply your forklift needs. How often your forklift will be operating outdoors and the degree of roughness of the terrain will also determine how rugged your forklift will need to be.

Desired application

The type of work you’ll be doing with your forklift and the location of the work are also important considerations. Will you be using your forklift in a hostile environment such as a cool room or freezer? Will it will be performing specialised tasks at above average heights? Will the forklift be handling heavy or difficult loads? These are all factors that will determine the type of forklift you’ll need.

These days forklifts are built for a variety of applications, so if your forklift will be used for only one type of task, it may well be worth purchasing specialised equipment. But if you only need specific tasks performed infrequently and need a regular forklift the rest of the time, there are a range of attachments available that allow a standard forklift to perform a variety of different operations.

Type of load

As well as application, it’s also important you think about the type of load your forklift will be carrying. Depending on the kind of business you’re running, your forklift could be required to carry pallets, timber, steel, or heavy machinery, all of which can be non-standard sizes and weights and require a special forklift or attachment.

If you’re operating a business that handles palletised goods, you’ll have a range of suitable forklifts to choose from as most are designed for standard pallet handling. The main differentiating factor when choosing which forklift is best will then be how much or how little weight it needs to carry.

Capacity

The next logical consideration is then how much capacity you’ll need your forklift to have. Forklift capacity is the amount the forklift is able to safely lift and carry, and this can range from 1.5 tonne up to 10 tonne and beyond.

Capacity is closely related to power, as a forklift that can lift 10 tonne will need to have a powerful engine to be able to lift and move that much weight from point A to point B. As a general rule of thumb, most Australian CHEP palletised goods weigh less than two tonne, meaning a forklift with a lower capacity is usually all you’ll need to get the job done.

Special height requirements

Finally, if you need your forklift to reach higher than a standard forklift to deposit and retrieve certain items, you may require a different type of materials handling equipment. Instead of a vertical mast, you’ll probably need a boom-style mast, which is a feature in machines such as telehandlers and container handlers or maybe a high lift reach truck.

telehandler is a highly versatile machine that can perform all the functions of a forklift, plus a variety of other tasks, including reaching high storage bays. Telehandlers are popular on construction sites, shipping depots, and in the agricultural industry, where their rugged construction and ability to do more than one job makes them very useful and cost-effective.

Get your results

This guide provides you with a general idea of the considerations involved in selecting a forklift, but if you want to find out exactly which type of forklift is right for your business, take our quiz now.

The quiz is free and takes less than a minute to complete. Simply answer the six questions, add your contact details, and we’ll send you the results via email.

You can also talk to one of our friendly consultants about your forklift sales or rental needs by calling Lencrow Forklifts on 1300 516 431.

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Ross GrassickGeneral

Machines4u Award of Excellence – Buyers Choice for 2014

Thank you to all of our customers for your on going support. Our commitment to provide you with quality equipment at the best value will continue in 2015 and beyond.

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Ross GrassickGeneral

How do forklifts impact climate change?

In light of the recent climate change summit in Paris we wanted to bring to light the steps you can take to reduce your forklift’s carbon emissions. Forklifts are essential to our economy, industry and the country. Businesses today are being more conscious of global warming and have implemented strategies to reduce the way their operation harm the environment. We explore in this article some strategies to consider for your operation and how critical it is that we take action.

Well known economist, Will Nordhaus, suggested in the 1970’s that if the world’s average climate continued to increase “outside the range of observations which have been made over the last several hundred years” the damage from global warming would be irreversible. This is now accepted as the critical 2 degree limit that encompasses global climate change policy. The most recent Climate Change conference confirmed the world has breached the limit by 50% and we’re careering toward imminent and irreversible effects of global warming. If we do not make conscious changes in the way we impact the climate today – our future in Australia is likely to become dryer and hotter leading to a continued state of drought and bushfire prone lands – what decisions can you make today to make a positive contribution with your materials handling equipment?

  • Go electric! The most obvious choice is choose electric powered forklifts and warehouse equipment because they don’t create any harmful emissions from burning fossil fuels. Batteries are deep cycle and last a full day’s work but are limited to the types of loads and surface areas they can operate in and manage.
  • Buying new? Make a decision to go green! Choose a dual fuel forklift with a Fuel Injection (EFI) engine. Depending on the manufacturer this type of engine will reduce your carbon emissions by 90% compared to a carburettor Fuel efficient engines are less harmful to the environment and save you money in fuel costs. What is EFI? Electronic fuel injection engines utilise 3 way catalyst converters that measure the performance of your forklift in real time based on how it is being used and the environment it is operating in and calculates the right amount fuel to deliver to engine components to reduce emissions. How clever is that? The future is already here!
  • Own a forklift already? Be responsible and have it serviced regularly, especially with fossil fuel powered materials handling equipment. Leaks and faults create more emissions when engine components are operating with faults or are in need of repair. Maintaining your forklifts fuel delivery system is far more beneficial to you financially and is an environmentally conscious decision.
  • Many new model forklifts have green options.

    The 2 degree limit that encompasses global warming policies is based on pre-industrial climate average records. Materials handling equipment has become essential to keeping up with rate of supply and demand in the modern world and is integral to industry. There is no slowing down the demands of industry or human consumption in the near future without increased awareness, education and action. We can all make individual industrial decisions that will assist us in reducing the carbon footprints our businesses have with in the real scope of climate change.

    Forklifts are designed to operate 30 hour per week and many long term rental contracts calculate rates based on hours used per week. Now think about how many hours a week you use your car – yet, we are more socially aware of how green our vehicles are and how they contribute to global warming. Forklifts come with ratings and information about emissions and environmental impact. Be sure to ask your local forklift supplier for more information about your materials handling equipment’s rating.

    What does your materials handling equipment say about your carbon footprint? Lencrow Materials Handling are offering free on site assessments to help you assess how green your workplace’s materials handling equipment is. Industry can work together to reduce the impact that forklifts contribute to global warming. Think local, act global! Call us on 1300 516 431 or visit us at www.lencrowforklifts.com.au and speak to the online service team today about taking affirmative action. It pays to take a closer look!

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    Ross GrassickGeneral

    Lencrow’s Exhibition at Farm World Lardner Park

    Over the weekend Lencrow Materials Handling featured a telehandler exhibition exclusively displaying Dieci. The Farm World expo hosted annually is Victoria’s largest regional agricultural show allowing visitors to interact and trial machinery. Here are some photograph’s of Lencrow’s display during the event. Well done to the Melbourne team on a great display!

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    Ross GrassickGeneral

    Short-term vs Long Term Hiring: Understanding the Pros & Cons

    A forklift can make most businesses more productive. Whether it’s transporting stock or supplies, there’s a forklift for you. But if you only need one for a certain period, or if there’s extra work during seasonal peaks, this is where forklift hire comes in.

    Choosing the right hiring option can be determined based on duration and whether an operator is required.

    In terms of duration, there is short-term hire or long-term hire.

    A short term hire period can start at a day, and go for a period of days, week or months. As an example, a business that has one container can hire a forklift for just 1 day to unload the container.

    A long term hire period can span from one to several years. As an example, a warehousing business might choose to hire a forklift for a fixed term of 5 years.

    Dry hire is the option most people are familiar with – this involves only hiring the forklift. Wet hire – on the other hand – includes a licenced operator who handles the machine for the duration of the hire period.

    Each option has a variety of factors that you need to consider, along with choosing a reputable forklift dealer to help you make the right decision. Whichever decision you make, forklift hire is 100% tax-deductible, and will usually come fully maintained, meaning repairs and maintenance cost are factored into the rental rate.

    Short Term Hire: Pros

    There’s nothing like the fear that operations will come to a halt due to a broken down machine or an insufficient number of machines but thankfully, the benefits of short term hire are plentiful – including:

  • Alleviate extra workload – you can quickly mobilise one, two or ten additional machines during your business’ peak periods, eliminating any potential risk of downtime.
  • Available at short notice – you can hire a forklift without much wait so you are covered for even the most unexpected peak periods or increased workloads.
  • Hire by the week, month or day – having the flexibility to choose your period is a good solution if you have a broken down forklift and have an expected turnaround date on your machine’s repairs.
  • Replacements available within 24 hours – some providers will be able to turn around a replacement in a day or less, reducing downtime in your business.
  • All forklift maintenance is included with short term hire. A trusted dealer will provide well trained technicians to attend to maintenance issues. Most forklift dealers will provide a breakdown service – 24 hours a day, seven days a week including support on public holidays. With the maintenance cost included in the hire, you will be able to control expenses and cash flow for your business.

    Short Term Hire: Cons

    There are two important things to bear in mind when it comes to short-term hire – it can be more expensive than a long-term hire, generally, the weekly rental rate will be at a premium, and you may not get the exact type of forklift you want.

    That’s why as part of researching the best hire term for your business, you need to find the right forklift provider that can confidently assess your business’ needs and give you a solution which works, despite any limitations on the forklifts available at the time.

    This said, there are many forklifts which perform well for multiple applications, so there will always be a forklift available to help you complete the job.

    Long Term Hire: Pros

    A long-term hire is a tailored solution, designed to give you the perfect machines to suit your requirements. Many long-term hires are brand new machines but the good news doesn’t stop there – businesses have the following pros to look forward to;

  • Better rates – you can gain access to more affordable rates with a long-term hire which is a bonus for any business.
  • Off your balance sheet – all forklift hire is 100% tax deductible and while this also applies to short-term hire, your accounting team will be glad that admin is minimal.
  • Greater control of expenses – you can enjoy greater predictability in your cash flow with a set long-term hire.
  • Hire terms can be made to suit your business by tailoring the term to the lease of your building.

    A good forklift provider will offer this option to ensure that you are never paying for a machine that you do not need. Should your hire forklift breakdown at any time, you are generally entitled to a replacement forklift within 24 hours to avoid downtime in your business. All you have to do is get in contact and notify your forklift dealer to arrange for a replacement at no extra cost.

    Long Term Hire: Cons

    The major cons for long-term hire are simple – it’s a much longer commitment, and not as flexible as short term hire. The reality is that you may not need the forklift for a long as you think, resulting in a break-in-contract fee.

    Once you obtain a quote from a reputable provider, it is important to consider the following before signing on the dotted line:

  • The costs agreed upon
  • The term of the hire
  • Maintenance plan inclusions and exclusions
  • Hidden costs i.e. Excess hour charges
  • Always address your forklift provider if you have any questions or concerns so you have a clear understanding of your agreement. We strongly suggest taking it to a solicitor and let them go over the terms and conditions as well.

    Hiring Solutions That Work For You

    No matter what way you need to hire a forklift, Lencrow Forklifts will offer a solution to best suit your business needs. Lencrow Forklifts has been an Australian owned business for more than 40 years, we don’t just hire fork trucks, we partner with your business to provide solutions. For a free onsite inspection with one of our consultants, call us on 1300 516 436 or click on the link below.

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    Ross GrassickGeneral

    Lencrow Backs the Australia Bakel’s Biker’s Bucket List

    5 men at Australian Bakels participated in a Charity Ride on motorbikes raising money for the The Westmead Children’s Hospital! What legends!

    What an incredible effort to cross the Nullabor on bikes over 9 days! Big shout out to your league of champions and congratulations on the money you raised and personal goals you achieved. Thank you for your letter of support and the photo’s.

    Letter of Support:

    “On behalf of Australian Bakels, we would like to thank-you for the generous support that LENCROW had provided with the Charity Ride. The donations totalled $32,577 and without the support that LENCROW had provided, this could not have been possible.

    Again, very much appreciated and we look forward to continuing the great business relationship into the future.”

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    Ross GrassickGeneral

    Forklift Finance Options

    When it comes to sourcing the right forklift for your business, there are some many different things to consider such as : load capacity, lift height, fuel preference, tyres options, ergonomics and this is just to name a few. But what is often one of the most neglected things that people overlook, is forklift finance.

    Capital Purchase
    The most obvious way is to pay for your forklift up front, with your own capital. Depending on what type of forklift you need to finance; new or used, small or big. This means either meeting with your bank and financing the full amount with a loan or taking the money out of your own account and paying for it.

    When you buy a forklift outright, you are then responsible for the scheduled maintenances and repairs.

    Fully Maintained Rental
    Fully maintained lease is one of the most common forms of forklift ownership because it is affordable and assists businesses with ongoing costs of maintenance. The leasing periods can range from 12 months up to 7 years depending on the materials handling needs forecasted for your business.

    The rental payments are usually charged every month and will include scheduled maintenance, spare part support and break down assistance when needed. The great thing about a fully maintained rental is that you get to give the forklift back at the end of term. Essentially you have the same experience of owning the forklift without the responsibility of the costs involved with maintenance because the leasing company covers these charges in the monthly rental fee.

    Lease Finance
    Forklift Finance with leasing, means going to a finance institution and entering into a leasing agreement with a third party financier over an agreed up timeframe.

    This usually involves a monthly lease payment, which might have a residual payment at the end of term, and any maintenance costs on the forklift are your responsibility.

    There are two main different types of leasing an operating lease and a finance lease.

    Rent Then Buy
    One particular popular method of Forklift Finance is “rent to buy”, or what is better known as a Commercial Hire Purchase (CHP). Generally these include balloon payments at the beginning or at the end of the loan. Very similar to a leasing arrangement, the terms are generally anywhere from 1 to 5 years. The servicing and maintenance of the forklift is treated separately in these circumstances.

    Financing is a decision to make that will suit the businesses short and long term goals as well as your budget. Discussing these options with your accountant will help you make the right decision considering all your options. You may also consider buying second hand if that option covers your materials handling needs.

    Lencrow Materials Handling is a holistic materials handling solution service provider with nearly 40 years’ experience across a range of brands and models. We have consultants at all of our branches who would be happy to discuss anything you would like prefer more information about or even just to provide a helpful step in the right direction to materials handling equipment.

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    Ross GrassickGeneral

    Why Buying a Quality Forklift Will Reduce its Whole Of Life Costs

    Buying a new forklift for your company’s materials handling needs can be a significant capital outlay, so you will obviously want to get value for money with your purchase.

    But value doesn’t begin and end with the purchase price, as this is only roughly 10% of the total ownership costs. The other 90% are costs that are not immediately apparent, but which can add up to a substantial amount over the lifetime of the equipment.

    So while getting your forklift for a good price is obviously important, your primary goal should be to minimise its ‘whole of life’ costs and the best way to achieve this is by purchasing a quality forklift in the first place.

    Choosing equipment with cost saving features will not only help you to keep whole of life costs to a minimum, but can also help increase your overall productivity levels as well.

    What are the whole of life costs?


    So what are the whole of life costs that make up the other 90% of your cost of ownership? Here are some of the major costs you may incur as a forklift owner.

    Fuel

    Fuel prices are always rising, so if you are buying a petrol or diesel forklift, you can expect your running costs to increase over time. Cheaper alternatives are gas powered or electric forklifts, so if you don’t need a combustion driven forklift, perhaps look at one of these models instead.

    It will depend on whether your forklift will spend the majority of its time indoors (in which case, electric would be necessary anyway due to carbon monoxide emissions) and the weight of materials it will be handling (combustion forklifts are available in higher capacities than electric).

    Tyres

    The type of tyres your forklift uses will depend on its capacity and operating conditions. The three main types of forklift tyres are cushion tyres (indoor tyres for electric forklifts), pneumatic tyres (compressed air tyres for outdoor use) and solid pneumatic tyres (solid rubber tyres for all-terrain use). Regardless of which kind you use, tyres are expensive to buy and can, therefore, be a substantial operating cost over time. Be sure to purchase your tyres from a reputable seller, and seek expert advice so you know your tyres are perfectly suited to your forklift and its application.

    Maintenance

    Ongoing maintenance is by far the biggest whole of life cost of your forklift. It will need to be serviced regularly according to the manufacturer’s specifications and how often this needs to be done is a primary consideration when comparing two similar forklifts from different suppliers.

    The time it takes to perform the actual maintenance is another important consideration and this is where one type of forklift can be superior to another in terms of accessible design features.

    When purchasing a forklift, warranty periods and maintenance support are crucial whole of life cost factors. At Lencrow Forklifts we offer 5 year total care warranty across many of our forklifts, protecting you from any hefty repair costs down the line.

    Operator comfort

    Operator comfort is also a cost to be considered, like a badly designed forklift can lead to bad driving practices which can affect other costs such as fuel usage, engine wear, tyre wear and safety.

    An operator can spend long hours every day on a forklift, so correct ergonomics and comfortable features are must-haves that need to be factored into the cost of your forklift to counter this potential whole of life cost.

    What are the cost savings to be made with a quality forklift?


    While materials handling equipment is a relatively mature industry, new innovations continue to appear every couple of years, so it’s important to ensure when buying your forklift that you are purchasing the best technology available.

    This will allow you to compare apples with apples when choosing your forklift, knowing that the features you need are present in all models to varying degrees.

    A quality forklift will contain a range of features, which when combined should significantly reduce your overall cost of ownership. These might include;

    Fuel-saving technology

    Some forklift brands feature fuel saving innovations such as load sensing variable displacement hydraulics, which can help to reduce fuel consumption. Others have developed fuel monitoring features which also save fuel by measuring and fine-tuning driver performance.

    Long-life tyres

    Some forklifts are fitted with longer life tyres designed to travel longer distances and at higher speeds. Tyre manufacturers have also developed special purpose tyres for various applications, such as anti-static tyres for flammable environments and non-marking tyres for clean storage areas such as food handling operations.

    Less maintenance

    As well as having longer maintenance intervals than other models, some forklifts are also designed to be easier to maintain. Providing easy access to vital maintenance points ensures servicing will be more likely to be regularly performed by operators and the time taken to do it will also be less, meaning higher productivity.

    Greater safety

    Look for forklifts where safety features are standard rather than optional extras. These might include mast cylinder velocity fuses (prevent the mast from falling if a hose is ruptured), hydrostatic power steering (prevents steering wheel ‘kick back’) and catalytic converters (prevent engine exhaust sparks near LPG units).

    Greater comfort

    Operator comfort is also directly related to safety and job satisfaction, so comfort and ergonomics should be considered a necessity, particularly if your forklift is operated for long hours or in consecutive shifts. Operator features to look for include a comfortable seat, ergonomic placement of controls, and good all-around visibility.

    Things to keep in mind

    There are obviously going to be some mandatory requirements which you will not be able to compromise on in order to reduce your overall costs of ownership. These will include;

  • Capacity – this is the most crucial factor when choosing a forklift. You will need to select a model that can safely lift the goods in your materials handling operation, which in some cases may necessitate a larger, more expensive unit.
  • Work environment – the size of your warehouse or operations centre, the way it is laid out (i.e. vertically or horizontally, indoor or outdoor) and the amount of available workspace will determine the type of forklift you need to be able to operate efficiently.
  • Budget – buying a new forklift can be a significant financial outlay, and with the added whole of life costs involved, it may not be financially viable for a new or growing business. In this case, you may want to look at hiring a forklift or purchasing a second hand model.
  • Keep whole of life costs down with Lencrow

    Whether you buy or lease, you’ll find what you need at Lencrow Forklifts. We are Australia’s largest independent supplier of high quality materials handling equipment, and we know how to keep your forklift’s whole of life costs to a minimum.

    Indoor or outdoor, 1 tonne to 50 tonnes, electric, fuel or LPG, we carry a huge range of pallet jacks, tow tractors, forklifts, telehandlers and reach stackers.

    Many include features designed to minimise your long-term operating costs and at Lencrow, we can reduce your costs even further with our Planned Preventative Maintenance Program, a tailored program that ensures your forklift fleet is properly serviced on a regular basis.

    To find out more about the whole of life benefits we offer, visit us at Lencrow Forklifts.

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    Ross GrassickGeneral

    A Complete Guide to Forklift Renting and Buying

    Deciding whether to rent or buy materials handling equipment can save or cost you a lot of money, and will be different for every business.

    When looking at purchasing large and expensive warehouse equipment such as a forklift, you need to consider whether owning it will have greater long-term benefits than simply hiring it from a third-party provider.

    In this guide we look at the advantages of renting rather than buying warehouse equipment, as well as some scenarios where purchasing outright can make more sense. We also provide recommendations on what to look for in supplier and important questions you should cover with your supplier before choosing either option.

    A world of choice

    Equipment hire firms today have a lot more to offer than they used to. Rather than only providing dry hire equipment, they offer a comprehensive range of services included in the rental package. This is part of the reason more businesses are choosing to rent these days.

    Why do many businesses choose to rent?

    Businesses with seasonal busy periods often prefer to hire their equipment rather than buy, as they can be busy for one portion of the year and then have little or no need for a forklift in their quiet months. These can include agribusinesses, businesses which focus on special holidays such as Christmas, Easter or Valentines Day or any business whose production peaks at a certain time.

    Other businesses that may rent rather than buy include small businesses and startups. They often do not have the capital to purchase large items such as forklifts, even if they need them. These businesses often hire their equipment from a rental company.

    Businesses who are considering a new type of warehouse equipment also hire, as this is a cost-effective way of seeing if it suits their purposes before purchasing. Renting can also help businesses with broken equipment out of a tight spot, while they wait for their own equipment to be repaired.

    And it’s not only SMEs that prefer hiring to buying. Many large organisations are renting. They crunched the numbers and realised hiring was more advantageous in the long term.

    Advantages of renting

    So what are the advantages of renting rather than buying your materials handling equipment? There are several including the following:

  • No large upfront capital outlay – you are not purchasing the equipment, so you don’t need to dip into your precious operating capital. You only need to pay a small monthly hire charge instead.
  • Tax advantages – renting is a tax-deductible operational expense, where you receive an immediate financial benefit without the need for the complex depreciation calculations and asset valuations involved with plant and equipment purchases.
  • Technology upgrades – renting allows for the regular upgrade of equipment to the latest models at no additional charge, allowing a business to stay abreast of current technology and steadily improve its overall productivity.
  • Maintenance included – the cost of maintenance is normally included in the rental price, so with servicing taken care of, a business can budget ahead knowing exactly how much it will cost each month.
  • Guaranteed reliability – a good hire firm will guarantee the reliability of its equipment by providing free on-site repair or replacement if your equipment breaks down, keeping downtime to an absolute minimum.
  • Improved workplace safety – because your hire equipment is regularly upgraded and properly maintained, your business will always meet its OHS compliance requirements and will likely have a lower accident record as a result.
  • So with such an impressive list of advantages, it’s easy to see why renting materials handling equipment is an attractive proposition for many businesses. But purchasing warehouse equipment can also make sense.

    The long haul

    Materials handling equipment such as a modern forklift is an expensive piece of machinery. Part of the reason for this is that today’s models feature a wide range of state-of-the-art technology and are designed to withstand punishing use in a variety of indoor and outdoor conditions.

    So despite the cost, buying such a machine outright is viewed by many businesses as an investment in years of highly-productive and trouble-free service to come.

    Why buy?

    Businesses who prefer to buy rather than rent can include those with a policy of owning their own capital equipment. It can also include those with the finances to do so, such as a competitive line of credit or the spare cash to take advantage of a good deal.

    Large companies with many branches also often prefer to buy rather than hire, as significant savings can be made when purchasing a fleet rather than a single unit.

    Advantages of buying

    A return-on-investment analysis will show that buying new can be a good decision for a business, particularly over the long haul, as advantages that come with buying over renting can include:

  • Less overall cost – over time, your outlay will be less than with renting, where you are paying a premium per month for the security of built-in maintenance and support.
  • Unlimited use – you can use your own forklift as and when you see fit, while some equipment rental companies charge penalty rates for equipment usage over and above their specified allowable hours per month.
  • Valuable assets – owning your own plant and equipment gives your company assets against which you can borrow to further expand your business in the future.
  • Taxation benefits – a business can depreciate its assets over time, which will provide more income on your profit and loss statement and increase your assets on the balance sheet.
  • Drawbacks to renting and buying

    The choice of whether to rent or buy your equipment hinges to a large extent on who you plan to rent or buy from. Renting only has the advantages it does if your chosen rental company provides the additional services that make renting a good choice.

    It’s fair to assume that operations managers and logistic teams expect a reliable forklift to seamlessly integrate with their workflow so if your forklift rental doesn’t come with a comprehensive preventative maintenance plan or doesn’t help achieve the desired task, you could face additional costs not to mention, lost time.

    The main risks of buying a forklift outright are ending up with a machine that isn’t cost effective and ends being more effort to manage than it was to buy. This is a common scenario for business owners who panic to buy a new machine and find themselves in a whole new realm of problems.

    Renting pitfalls

    When renting through an equipment hire company, it’s very important to clarify the details before signing the contract. Potential pitfalls if you don’t could include;

  • Inferior equipment – forklifts that have been misused or are not the latest model can lead to frequent breakdowns and lost productivity.
  • Poor maintenance – irregular or sub-standard servicing can also lead to equipment breakdown.
  • Poor workmanship – inferior servicing carried out by inexperienced or unqualified technicians can damage machinery.
  • Poor service – if you have a problem and your provider doesn’t show up when you need them, the outcome will be lost productivity.
  • For these reasons, it always pays to take the time to investigate a rental company’s reputation, capabilities and references before entering into an agreement with them. And if they are found to be lacking, shop around for a better provider.

    Buying pitfalls

    Given the large financial outlay, it is even more important to vet a supplier before purchasing warehouse equipment from them. If not, potential pitfalls could include;

  • Purchasing a lemon – if you buy through an auction, you could end up with an unknown inferior brand imported for a quick profit.
  • Not buying the latest technology – buying equipment featuring old technology will add to your whole of life costs.
  • Buying second hand – being talked into buying a second hand unit could see you inherit someone else’s problems.
  • Paying too much – entering into the wrong forklift finance agreement could see you paying too much for your equipment.
  • Whether you’re renting or buying, it’s important to choose a supplier with a comprehensive range, competitive pricing, a sound reputation and the backup service and support that you need.

    And in the case of warehouse equipment, the one name that stands out in Australia is Lencrow Forklifts, the company with more than 40 years experience in materials handling dry hire, wet hire and new and used sales.

    How to pick the right rental provider

    Choosing a provider with a solid reputation who offers a range of quality equipment at genuine prices and with a strong service promise should be your primary priority.

    Depending on your location and needs, you will want to check if your provider offers customer service and technical support in your local area. Generally, most providers have branches in Sydney, Melbourne, Brisbane, Adelaide with a growing number of regional bases popping up across Australia.

    Important things to look out for when choosing your provider

    There is no doubt you will be flooded with choice when shopping around. Important benefits to look out for include;

  • Flexible hire options – your hire period could be subject to change so it helps if your chosen provider has your covered whether you need it for one day or 3 months.
  • Wet & dry hire solutions – this can come in handy if you require an experienced operator at a per hour rate.
  • Long-term hire – good providers can assess a workplace, make recommendations on the best equipment for your operational needs and provide long-term contractual arrangements from 6 months up to 5 years.
  • Maintenance included – all servicing, maintenance and repairs should be included in the price of your rental forklift during the period of hire.
  • Fleet management – ask if your provider offers fleet management services for set terms and prices for 3, 5 or 7 years. This could help your business gain new operational efficiencies, as comprehensive fleet management agreement includes management of maintenance and the option to add extra units for the same price if required to meet unexpected demands.
  • 24/7 breakdown service – if your rental forklift breaks down and needs repairs or replacement, an ideal provider should be able to be onsite within 2 – 3 hours (subject to location).
  • Purchase rebate – a great bonus if you decide to purchase your rental forklift.
  • Quality brands & high capacity – whether you need a walk-behind pallet stacker or a 45 tonne rough-terrain forklift, you want to be sure your provider offers both quality and quantity.
  • How to choose the right place to buy your forklift

    Buying your materials handling equipment from a provider should give you the confidence that you have made a wise business decision. Reading customer reviews and researching quality products is a good way to shortlist a group of providers.

    Beyond the scope of the advantages of buying new that were highlighted earlier in this guide, it is likely that your provider will have something unique which peaked your interest. Keep an eye out for;

  • Exclusive service offerings or warranty schemes – these are key when considering your equipment’s whole of life costs
  • Superior in-house technology – some providers are opting for automated & integrated platforms designed to minimise lifetime running costs.
  • Ready to rent or buy

    The choice between renting or buying comes down to your particular operational requirements and is a choice best made with the help of a trusted supplier such as Lencrow Forklifts.

    We carry a wide range of materials handling equipment and have no brand loyalties to influence our advice. And with more than 40 years in the industry, there’s not much we don’t know about warehouse equipment.

    So feel free to call us on 1300 516 436 and talk to one of our expert team about your requirements. With more than 60 staff at five branches Australia-wide, we have the resources and expertise to provide a solution to your materials handling problems … whether that turns out to be renting, or buying.

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    Ross GrassickGeneral

    Lest we forget…

    Australians are united by pride and passion. Our passion is born of the people who truly value ‘that we are one, but we are many’. We are blessed to be free, equal and be heard. This ANZAC Day the Lencrow team will be celebrating our nations strength and the brave men and women who protected our country and its people. How can one ever truly express absolute gratitude for the ultimate sacrifice? What can one person do to truly console the families who lost loved ones? One person can not! Australians will be brought together this ANZAC day and we will remember.

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