I am preparing this column around the end of June 26. Very interesting times, especially regarding AI, Power Needs, Employment Stats, and, in general, how the market is holding up for material handling equipment of all types.

Let’s take these topics one at a time.

AI…..It appears that larger firms are making significant headway in acquiring valuable AI data to increase sales, margins, and operating efficiency, thereby increasing free cash flow. Medium and smaller manufacturing and warehouse/logistics operations are attempting to do the same, but the stats you see reflect increasing monthly AI budgets, with 35-40% of companies reporting positive results so far as they move forward.

POWER NEEDS….  International needs are off the charts. BloombergNef (BNEF), New Energy Outlook set the 2030 total at 150 gigawatts (GW). In 2025, that was revised to 650 GW, more than four times the projection from five years ago. And you can guess why I assume? You are right if you said DATA CENTERS ET AL.

This is a worldwide estimate because each country wants Power Independence going forward.

What is interesting is that the cheapest way to increase power storage is solar and windmill solutions. It appears that the cost of both methods has fallen well below that of any other method available. I expect the USA to get back on board with solar and wind programs where possible, to keep costs down.

Once you create power, you need to store it. And once again, storage prices have fallen to a level that makes them attractive as well, thus making batteries a cheaper option than natural gas and diesel generators.

EMPLOYMENT STATS…. These numbers keep jumping around, but there will be an ongoing need for construction workers, as well as for all forms of the TRADES, if we are to make the necessary adjustments to our economy to build and operate the data and energy storage facilities we require. It also appears that there is a need to get the AI transition under control in a timely fashion. There appears to be a lack of adequate narratives to drive AI to a successful conclusion that results in more sales per employee and additional free cash flow.

I have seen many comments suggesting that accounting departments for many operating companies taking on AI are not adequate to complete the task. In fact, there are examples of CFOs becoming COOs and, in some cases, even CEOs if they have the financial acumen to manage operations and management duties. I have seen examples where department heads consistently provide bad data without any retribution from management because management is unaware of these costly habits.

By now, you are probably asking yourself what any of this has to do with your lift truck business. GOOD QUESTION!

That is exactly the point. How will this impact the truck business?  In many ways, unfortunately. To me, these activities use dollar capital and time capital to the point were taking the time to consider other business activities falls to the end of the list.

Manufacturers will be engaged in the AI track, reviewing new automation opportunities, robotic opportunities, joint ventures, and perhaps company sales opportunities. As part of this process, they will review their material-handling equipment at some point to determine whether any changes are needed. I would think that, under the circumstances, management would want to keep what they have until they have a clearer picture of the future capital available to turn over some of the fleet.

Warehouse and logistics companies are in the same boat. But they are lucky because robots can now access and pick objects they have never seen before. With robots able to make judgment calls that once required human involvement.

Then you have Warehouse-as-a-Service, a pay-per-use model for storage, fulfillment, and distribution. This option comes without a lease or ownership requirement. Want to reduce warehouse costs? This is a way to do it.  In today’s environment, this option makes sense. In fact, WasS is outpacing 3PL.

I think we can all agree that your markets are changing, which in turn changes how potential customers think about capital expenditure. From what I can tell, rental is the way to go. Or refurb units if you can supply those types. Last would be clean used units if available.

Is there an opportunity with the storage batteries? It could be if you have access to the storage units.

And how about the data centers themselves? Do we have any input on how those are constructed and how the power storage works? Any need for a lift truck?

Based on what I see, your actual and potential customers are tied up investing in AI and looking for other ways to increase profits and cash flow.

I also see many companies making this three-step process. Simple AI to get things going, automation to improve gross profit results. Final AI process to adopt systems and procedures to increase margins, lower operating costs, and increase free cash flow, and thus increase the value of their company while also supplying a competitive advantage compared to other dealers or rental companies.

If I were meeting with the dealer salesperson who handles my account, I would ask you how I could make my fleet more efficient. And what systems I could use to automate my workflow. I would also like to inquire about my owned units, and their potential value should I upgrade into a more technical process that uses robots where applicable.

Sales personnel today need a grasp of what is going on in the economy and how companies that use lift trucks use AI to improve operating results. It is always best to compare one operating already converted into an AI environment, because it will give you valuable insights about your customer.

If you care to educate yourself about AI and how it works to improve operating results, I suggest spending some time on SERVICENOW, or RAMP, IF YOU WANT TO CHECK OUT HOW THE ACCOUNTING DEPARTMENT SHOULD BE CONTRIBUTING.

I probably review at least 20 articles per day, selected from about 100 emails. These include several financial reports that cover our economic situation, which appear to be improving over the rest of the year.

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.