60 seconds with Brian Butler, ITA and Linde NA

Brian Butler
Title: Chairman, Industrial Truck Association; President & CEO, Linde Material Handling North America
Location: Washington, D.C. (ITA)
Experience: Butler is a 33-year industry veteran and been involved with ITA for the past nine years
Duties: As ITA chairman, Butler works with the executive board to determine the strategic direction of the industry 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 2013, and do you have any insight into sales through the first half of 2014?
Butler: Last year was another strong year. Based on reporting from our members from this past May, we believe we will be more than 200,000 units and could see an approximate 5% increase for 2014 if everything stays constant. Part of that growth is coming from some residual pent-up demand from the slowdown, although that is diminishing. I think customers are also looking at different ways to operate their facilities. We could see the sale of 60,000 units of Class 3 product. Customers are looking for more cost-effective ways to move materials.

Modern: Our cover story this month looks at how CN, one of North America’s largest railroads, is partnering with its OEM to manage an inventory of parts that are critical to uptime. Are you finding that the maintenance side of the lift truck industry, such as parts management, is becoming more important to end users?
Butler: It’s all about productivity. Every customer has a specific need. CN may need parts available in specific places. For another company, their need could be access to technicians. For another, it could be the availability of rental trucks during their peak season. Those all fall under fleet management, which is becoming more important. Again, its all about productivity and uptime.

Modern: Related to above, are users today still maintaining their own fleets, or are they turning fleet management duties over to distributors and third parties?
Butler: The trend over the last few years is that more customers are turning to their OEM and the OEM’s distributor network to support their operations. Whether a company turns all or just some of its requirements over to an OEM or distributor depends on its expectations and business needs.

Modern: One of the biggest issues facing the automation side of the materials handling industry is the availability of skilled technicians to maintain increasingly complex systems. We know that lift trucks are also becoming more technologically sophisticated and complex. Is the industry grappling with a shortage of skilled technicians? 
Butler: Yes, and that’s one of the reasons our customers are leaning on their OEMs. Our members have qualified technicians, and they have an inventory of parts because they understand the demand for parts out in the field. That’s becoming more difficult for customers, even if they’re operating a fleet of 100 trucks. And yes, the lift truck has become more technologically advanced, which makes it more difficult to troubleshoot and repair. The upside is that as OEMs focus on providing service and parts management, there’s a better total cost of ownership for the customer.

Modern: As you look to the future developments coming in the industrial truck industry, what excites you the most? 
Butler: I think the industry has entered the phase where we’re not just about what’s on the lift truck, but what’s around it. For instance, I think you’ll see more software integration around the lift truck, whether it’s fleet management, truck tracking or improved productivity in the warehouse. What the industry does with the data around the forklift truck is what will be exciting.