How Unexpected Downtime Can Increase Cost
When you’re evaluating a forklift purchase, it’s easy to focus on the number right in front of you: the purchase price. But acquisition cost accounts for very little of a forklift’s total cost of ownership. Even power, parts and service each represent relatively small percentages of the total.
The biggest piece of the equation is operator cost. Research shows the cost of the operator accounts for up to 83% of total cost of ownership over the life of a lift truck.
That makes any downtime during which the operator can’t be productive especially costly.
Think about a gas-powered vehicle sitting with the engine idling. It’s getting zero miles per gallon while still consuming fuel. A forklift that isn’t moving product while its operator is still on the clock creates a similar situation. The work still needs to get done, which can lead to overtime, extended shifts or the need for short-term rental equipment.
So, when you’re evaluating total cost of ownership, it helps to look at the cost of getting the work done reliably over time.
Start by Defining the Work
Purchase price, financing and service rates all deserve consideration. Your analysis should also account for how effectively the fleet supports the operation, including uptime and whether equipment is available when your operation needs it most.
That means connecting equipment costs to measurable outputs such as cost per pallet moved, cost per order shipped or pallet putaways per hour. You’ll also want to account for anything that interrupts expected output, including unplanned downtime and equipment availability during peak periods.
Fleet size matters too. If your operation needs additional lift trucks just to maintain the required throughput or to cover equipment that’s frequently unavailable, those costs should be included in the total cost of ownership calculation.
Put Assumptions to the Test
Application trials and operator feedback can give you a clearer picture of how equipment performs under actual working conditions.
Because operators represent such a large share of lifetime forklift cost, their experience matters. Lift truck performance can affect an operator’s confidence, comfort and ability to maintain the required pace. Structured trials give operators a chance to provide feedback before you make a fleet decision.
Capturing operational data is also important. It can show when and where lift trucks are active, what they produce and how downtime affects availability.
Forklift utilization data can help identify mismatches between equipment and application. Underspecified equipment can reduce productivity and may require additional equipment to complete the required work, while overspecified equipment can increase acquisition cost without providing additional operational value.
For example, a newer, higher-performing lift truck may deliver more value in a high-throughput application. An older lift truck that’s still serviceable could be reassigned to work that requires lower utilization.
Beyond the Forklift
Maintenance cost can be misleading when viewed in isolation. A lower hourly labor rate doesn’t necessarily mean a lower overall service cost. Service frequency, repair duration and the operational effect of downtime should also be considered.
Consider how often service is required, how long repairs take and whether downtime occurs during peak production. Repeat repairs and parts consumption can help show whether maintenance is correcting the underlying issue.
Energy cost extends beyond batteries and electricity. Charging infrastructure, battery-handling labor and time operators spend away from moving material can all affect operating cost.
Think Long-Term
Most equipment looks good on day one. While it may be tempting to make a purchase decision based on today’s information, a total cost of ownership analysis should consider the characteristics of the fleet in five or even ten years. Is the equipment still delivering the required performance? Are the right lift trucks available when needed? Is the fleet operating at an appropriate cost for the business? The answers to these questions can help differentiate between calculating the price of a lift truck and understanding the total cost of getting the work done.