60 seconds with Jim Moran, ITA

Jim Moran
Industrial Truck Association (ITA)

Title: Chairman, ITA; Board of Directors, Crown Equipment
Location: Washington, DC (ITA)
Experience: Moran is a 45-year industry veteran who has held several industry leadership positions and presented at numerous materials handling and supply chain conferences. He is a 20-year member of the ITA Executive Committee and a three-time president of the association.
Duties: As ITA Chairman, Moran works with the executive board to determine the strategic direction of the association. He is also responsible for building a consensus behind that strategic direction and providing a voice to the association’s position on industry issues.

Modern: How did the industry fare in 2012, and do you have any insight into sales through the first half of 2013?
Moran: Industry demand for 2012 in North America ended up at 9% over 2011. This year (January to May), we’re growing at that same 9% rate. Our industry forecasted growth for 2013 at 4% to 5% given the uncertainty that is in the economy. Obviously, we are tracking at a better growth rate than our forecast. As an industry, we are beginning to believe that we are getting back to sustainable growth through the next couple of years, even if the growth
is slow.

Modern: During the recession, many lift truck users parked their fleets. Does that mean the age of the fleets is getting older? Or, have we worked through that issue?
Moran: We do have fleets that are older than we would have seen in the past, but with fewer operating hours. Part of that may be because users parked their fleets during the recession. But, it is also a result of the fact that the products in general are better than they used to be. One of the things we’ve noticed is that users are confident enough to extend some of their leases because the equipment holds up. They’re getting more life out of their trucks. Going forward, technology will allow us to do more predictive rather than reactive maintenance. We’re going to have more understanding of how a truck is performing right down to the part level than we did in the past. That’s going to change how we manage fleets and replacement.

Modern: Are users today still maintaining their own fleets, or are they turning fleet management duties over to distributors and third parties?
Moran: We see more people using the lift truck manufacturer’s distributor channel for service or to maintain their fleets. The exceptions tend to be DCs or manufacturing plants that have other sophisticated equipment that requires maintenance expertise. If they have refrigeration on site, for example, or sophisticated materials handling systems, they have technically qualified people on staff anyway. One of the big drivers is the availability of technicians. Most truck manufacturers and distributors are working in concert with the tech schools to deal with the technology in today’s trucks. Not many end users can justify making that level of investment.

Modern: How about the technology side of fleet management? Is the user community adopting fleet management software?
Moran: The user community is adopting fleet management software, and we think there’s still opportunity for expansion. Fleet management software isn’t just for maintenance record retention, and it’s not just for large users. A small user still has to comply with OSHA pre-operation daily check lists, which is part of the software. The ability to store that information electronically is a key feature of fleet management software. It also allows you to track the impacts that lead to product, rack and merchandise damage. What’s more, it’s not that expensive. Increasingly, you can access the software on a weekly or monthly basis and only pay for what you use, like a phone subscription.