The global forklift industry is seeing some impressive growth lately. But why are forklift sales seeing this boost?
Forklifts remain one of the most crucial heavy equipment items for many businesses. As e-commerce pushes the global retail market to grow, it’s no surprise that more forklifts are needed to ship wares around the world. But that’s not the only reason forklift sales keep going up.
What else could explain this trend? Let’s take a look at some of the top reasons for today’s superior forklift sales.
First, as mentioned above, the growing world of e-commerce plays a significant role in the growth of forklift sales. Let’s take a closer look.
Ecommerce certainly isn’t new. But it’s only relatively recently become so widely popular. Shopping online is no longer the exception: it’s the norm.
This has led to massive growth in the worldwide shipping and logistics industries. The more people buy goods, the more goods need to be stored and shipped on their way to the buyer. Forklifts play an important role in getting products from company to consumer in this new age of shopping.
Warehouses that may once have only needed one forklift are also now more likely to buy more. Modern online shoppers expect super-fast turnaround times, and more forklifts are often necessary to meet those demands.
Today’s warehouses also tend to use smaller aisles and higher shelves to maximize space. This makes forklifts even more essential, particularly smaller ones with higher reaches.
Section 179 Tax Deduction
In addition to growing globally, this tax deduction is also helping the forklift market grow in the U.S.
According to Section 179, businesses can deduct the full price of qualifying equipment from their tax bills. This helps small businesses afford new equipment that they need, such as forklifts.
Previously, companies could gradually write off their equipment purchases as they depreciated. But now, the same companies get an up-front write-off that makes good financial sense.
In addition to the above reasons, forklift sales continue to grow simply because the investment often makes good business sense.
A well-performing new forklift can pay for itself in the long run by helping a brand get more done in less time. This increase in productivity can mean more orders fulfilled and more happy customers.
Old Equipment Replacement
Established companies may also find that now is the time to replace worn-out forklifts, adding to the overall industry growth.
While the economy was at a low point, many companies hesitated to replace failing equipment. But now that the economy has bounced back, there’s no longer any reason to put off buying a newer, more efficient forklift when necessary.
The Future of Forklift Sales
Will forklift sales keep going up as they have been? Right now, the answer seems to be yes.
Ecommerce growth is likely to continue for the foreseeable future. And as more companies add faster shipping to stay competitive, they’ll need to find ways to send out more products in less time.
If you want to keep your company on the cutting edge in this new business world, a forklift is likely the answer. Looking for forklift dealers? Check out our equipment here!