As I have said previously, I read numerous monthly newsletters covering material handling equipment, construction equipment, pure rental companies, and financial papers to stay current on where we are and where we are going. These take a lot of time to review and follow up on if I have questions about any conclusions presented in the publications.
What was really crazy this year was the consistent comment in each publication that the U.S. is entering a new era that will produce a new industrial revolution comparable to those that have taken place in the past, except this time, there seems to be a feeling that this revolution will take place in a much shorter life span.
To begin, I reviewed the BDO survey of 200 public company directors to understand how they plan to navigate evolving human needs in the age of digitalization and LI. It turns out that 74% of the boards plan to invest strategically in Emerging Technologies. In addition, most of the time is allocated to implementing Emerging Technologies over the next 12 months.
I would say these directors are on the right path, but also recognize that significant work remains to set AI and automation goals in motion. For lift truck dealers, the companies participating in this survey are likely a “large” customer and would appreciate any input the dealer network can provide to support their transition to the new era of manufacturing or warehouse operations.
Smaller customers will also face similar challenges, dealing with fewer technical issues but still aiming to improve margins, bottom-line profits, and free cash flow.
Dealers will need to decide what to do, when to do it, how to fund it, and how to deliver an end product that meets customer needs. THIS WILL REQUIRE A SUBSTANTIAL TIME COMMITMENT AND BUDGET!
Dealers, the question is not how you will get this done, but who will do it. Few will have internal staff with the time to work on this, even if they are technically qualified. And let’s remember that you are still in a competitive market-share environment, so you need to remain competitive as your competitors go through this process. It is easy to conclude that if your systems and procedures are less efficient than your competitors’, customers may look for other solutions. This ties in with our previous PERFORMANCE GAP situation. You adapt, or you lose.
Oracle and NetSuite put out an email titled THE HIDDEN COST OF DOING NOTHING. WHY AI-DRIVEN ERP DECISIONS MATTER NOW. In today’s evolving business environment, CEOs and others face a critical decision: whether to continue with their existing systems and procedures or invest in modern solutions. The point is to avoid the hidden cost of falling behind competitors who have invested in advanced systems, powerful AI, and solutions to drive innovation.
This is not an easy matter to contend with. But it has to be done ASAP. Since manufacturing customers will take longer to make the switch, I suggest you implement the required changes to improve your operations and align your industry solutions with your warehouse and distribution operations. Automation and robot issues can follow.
To help you out, the DISTRIBUTION STRATEGY GROUP has generated a paper that addresses where dealers find themselves now, but also the individual steps to transform operations to meet customer needs, including collaboration with customer automation and system changes.
The report is 73 pages long and outlines a step-by-step process. I have sent a copy to Dean if you would like one. Here is the link to the report.
https://www.mhwmag.com/wp-content/uploads/2026/02/The-AI-2030-Strategic-Framework-Updated.pdf
I believe it would be a good idea to explore these issues and changes with both large and small customers. Find out what they plan to do and who is leading the charge. See if you can assist them in finding a path that works for them.
I also need to highlight the robot’s new-era status, as it is an area lift truck dealers will have to address head-on. Look at what AMAZON is doing. And some of the other large retail operations. After the ELECTRONICS SHOW in Vegas, the robot involvement in business is a GIVEN, and your large customers in both manufacturing and warehouse will be using them. AND THEY WILL NEED MAINTENANCE. Hopefully, dealers will be able to offer this service. The Humanoid and Optimus versions are upon us. It might be a good idea to visit robot manufacturers to explore how lift truck dealers can collaborate with them to meet customer needs. Don’t forget, MODEX will have manufacturers on the floor, so make plans to be in Atlanta, GA, April 13-16. Material Handling Wholesaler will have a MODEX supplement in the April issue
One more thing you must follow up on. EQUIPMENT SHARE went public, and you must obtain a copy of Form S-1 (about 130 pages) and review how they operate their rental business. Pay attention to the different income silo’s they use and the EBITDA % of 40%. Jim Cramer just loves this company. Talked about it for about 15 minutes on his show.
I guarantee you will be surprised at some of the data you see.
Time to find a WHO to drive your company forward.
On the other hand, several predictions included a major increase in M&A activity. Owners who do not wish to deal with these changes may want to convert their investment into cash. I am confident there are public equity funds that would be glad to work with them to achieve that goal.
About the Columnist:
Garry Bartecki is a CPA and MBA with GB Financial Services LLC, and a Wholesaler columnist since August 1993. E-mail [email protected] to contact Garry.
