Signs Your Forklift Needs to Be Replaced

Do you need to replace your old forklift? Most companies try to stretch out the working life of their equipment, including vital forklifts, as long as possible to keep costs down. But this strategy may actually backfire if not managed carefully. There is a cost to continuing to operate any piece of equipment, and that cost might actually be higher than buying a new machine at some point.

Has your forklift reached this point in its life, when the wiser move — economically and practically — is to replace it? Here are five signs that it has.

1. Maintenance Costs Continue to Rise

A good project for any equipment owner is to track what you spend maintaining each piece of large equipment. This includes both routine service or maintenance tasks as well as more serious repairs — both capital replacements and normal expenses. This should be done through accounting, but you can also assign an employee to do a look-back if nothing has been tracked in an ongoing manner.

Look for trends in annual maintenance costs. If this number has risen noticeably each year, you can expect it to continue to do so — often at an increasing pace. Why? As the vehicle ages, its costs will rise higher and faster than when it was younger. Consider these annual expenditures compared to the allocated annual cost of a replacement and its maintenance.

2. It Experiences Harsher Conditions

Most forklifts have an estimated lifespan of about 10,000 to 12,000 hours of operation. But this average number can be significantly shortened by the conditions and manner in which the forklift is used.

If it's subjected to corrosive chemicals or abrasives, the machine will deteriorate faster. Similarly, a forklift that is operated in extreme heat or cold can be affected prematurely. And if it's used for multiple shifts, these hours of operation will add up much faster. It may also not have received proper maintenance downtime.

3. Dangerous Malfunctions Occur

The amount of breakdowns isn't the only part of the repair cost equation. Don't overlook the types of breakdowns. Electrical shorts, for instance, are not only damaging to the unit but can also injure employees. This type of accident is a liability risk, putting your company at risk of being held financially responsible for injuries, being deemed negligent, or even penalized by government oversight agencies like OSHA.

4. Technology Has Improved

What's changed in the equipment industry since you bought your equipment? If you're still using an internal combustion engine for your fleet, you may be overspending on fuel. An upgrade to forklifts that utilize fuel cell technology or are all-electric could save a fortune in gas or diesel costs. And forklifts that can easily adapt to different needs within the warehouse may increase staff productivity all around.

Not sure if advances in forklift technology are worth the upgrade? If you haven't been keeping up with the industry, take the time to check out the latest options so you can make an assessment if they would provide cost-savings in your particular situation.

5. The Forklift Is Depreciated

Depreciation — deducting a portion of the upfront cost of the equipment — provides a tax deduction for the owner each year. But once the machine is fully depreciated, this tax advantage goes away. Most forklifts are fully depreciated after 5 years. At this point, you may get a bigger tax break from purchasing a new model — perhaps with accelerated depreciation — than by continuing to pour money into the old.

Is your forklift exhibiting any of these signs that it may be time for a replacement? If so, start by meeting with the forklift experts at Lift Solutions, Inc., today. Our equipment pros will help you find the solution that's best for your profit margin and the company's continued success.