The Total Cost of Ownership For Forklifts

by Scott McLeod

Increase profits by reducing all direct and related forklift costs.

Reducing your fleet size by only ( 1 ) truck can significantly improve your bottom line.

Direct Costs

  • Depreciation
  • Interest
  • Planned maintenance
  • Breakdown maintenance
  • Tire maintenance
  • Operator damage to forklift

Related Expenses

  • Fuel
  • Operator wages
  • Operator WorkSafeBC premiums
  • Operator benefits
  • Operator tools and supplies
  • Operator supervision
  • Operator hiring costs
  • Operator administration, ie payroll, filing etc.
  • Operator damage to products
  • Operator damage to facility
  • Operator training
  • Exposure to legal costs due to liability risk
  • Insurance for forklift
  • Liability insurance
  • Downtime due to repairs
  • Downtime due to poor asset utilization
  • Rentals, during major repairs
  • Freight to dealer’s shop for major repairs
  • Unproductive forklift aisle space ( real estate )
  • Unproductive product storage design ( real estate )
  • Unproductive product flow
  • Management time, ie approving repair bills etc.
  • Clerical time, ie coding, filing etc.
  • File space ( real estate )
  • Cheque processing
  • On-site shop ( real estate ), if applicable
  • Tools for on-site shop, if applicable
  • Parts inventory for on-site shop, if applicable
  • Utilities for on-site shop, if applicable
  • Unproductive time for resident technician, if applicable
  • Emissions – effect on health, productivity and environment
  • Ventilation systems for WorkSafeBC acceptable emissions
  • Facility electrical capacity for battery charging, if applicable
  • Preshift forklift inspections required by WorkSafeBC
  • Opportunity cost of placing your capital elsewhere
  • Utilization tracking and reporting
  • Maintenance cost tracking and reporting

Posted in: Forklift Fleet Management