Do you want to cut the cost of your materials handling operation?

To make real savings, you need to look beyond the price of your forklifts. That’s only part of its lifetime cost. You should consider its total cost of operation (TCO). Thankfully, most if not all trends in forklift development are reducing TCO.

Cat Lift Trucks has previously outlined key lift truck cost factors. Some are obvious. Others, especially those relating to the driver, may not always be taken into account. 

The priority in all evolution of forklift design, technology and use is to increase profits. You can do that by cutting costs – in other words, lowering TCO. You can also do it by making materials handling faster and hence increasing productivity. That means saving time. And time is money, so in the end it’s all about TCO. 

Cat Lift Trucks regularly reviews and predicts forklift trends in their blog posts and other articles. Similar themes emerge each time.. Here are the major trends and their relevance to TCO.

Forklift electrification

The shift from IC engine to electric is driven largely by demand for lower carbon emissions. At the same time, it reduces energy bills. And as well as being more energy-efficient than IC engine trucks, electric forklifts cost less to maintain. They also hold higher residual values.

Lithium-ion (Li-ion) lift truck batteries

Compared to lead-acid batteries, Li-ion batteries cost you less in terms of operational downtime. That’s thanks to faster charging, opportunity charging, zero maintenance, and little or no need for battery swaps. They also reduce energy bills. What’s more, they have a much longer lifespan, so you don’t need to buy so many.

Sustainability

Reducing carbon emissions is usually the main talking point here. As already mentioned, efficient electric forklifts and Li-ion batteries cut both emissions and energy bills. In addition, the lower maintenance needs of these trucks reduce the number of replacement parts needed. This, in turn, cuts down on material and energy consumption in manufacturing. The same is true for Li-ion batteries, with their longer life. 

Along with these economies come savings on parts, repair and servicing bills and associated downtime costs. Environmentally conscious businesses are also looking at reducing consumption in their operations as a whole. This opens up many other opportunities for cost cutting.

Warehouse automation

Automating the simplest and most repetitive materials handling processes saves on labour costs. It also focuses staff time more cost-effectively on activities that require skills, awareness and decision-making abilities. There’s a related trend toward ‘optimal automation’, which makes good economic sense. In this scenario, automated and operator-driven lift trucks in a mixed fleet each handle the tasks for which they are best suited.

Big Data

Collection, analysis and use of ever-larger amounts of data is making materials handling, warehousing and logistics operations more efficient. Data fuels warehouse management systems (WMS) and similar software solutions. Lift trucks are becoming gatherers and users of data. IoT (internet of things) technology, connected to the trucks, enables telematics for remote monitoring. The data collected is used to optimise forklift fleet management and lower TCO.

Warehouse space

The demand for production, storage and delivery of goods continues to increase. Businesses need bigger and/or more numerous warehouses – and the cost of that space is rising. To save money, they need to make fuller use of their horizontal (floor) and vertical space. Lift trucks are being shaped and equipped to maximise storage density by working in narrower aisles and/or lifting to greater heights.

Materials handling speed

The rise of e-commerce, with its demand for quick deliveries, has increased pressure on businesses to move goods faster. But even outside that sector, every business wants its operations to be faster and more efficient. As they’ve said, time is money. For forklifts, it’s not just a question of increasing power ratings and top speeds. It’s more about optimising speed while avoiding time-consuming and costly accidents. The key design factors here are manoeuvrability, ergonomics, vision, precision, smooth control, safety and protection. 

Advances in the science of user experience are important. Ergonomically poor lift truck design can result in stress, strain and ultimately the expense of sickness absence. It also limits the operator’s motivation and performance.

Lift truck operator safety

There’s been an encouraging increase in safety standards over the years. Safeguarding lift truck operators and other people is the highest priority, but safety saves money too. In the event of an accident, damage to trucks, equipment and facilities can be expensive to repair. Spilled goods may be damaged too. Then there’s the cost of downtime during repairs and clear-ups. Not to mention expenses related to injuries and absences, compensation payments and fines. Forklifts designed to minimise accident risks are a very sensible investment.

Variety of lift truck manufacturer choice

The number of lift truck manufacturers and suppliers is expanding globally. Customers are increasingly attracted to low-priced, entry-level products. For less intensive applications, requiring only occasional or light forklift use, these may be sufficient. For more critical operations, higher specifications are needed. 

It’s important to choose the truck that best matches the task. Overspecifying could be a waste of money. Underspecifying could lead to a higher TCO, for the many reasons summarised in this article. If an entry-level lift truck will do the job, you should ideally go for a forklift that combines low price with dependable qualities.

We’re heading to CONEXPO-CON/AGG 2026!

Join us March 3–7, 2026, in Las Vegas, NV at North America’s largest construction trade show. CONEXPO-CON/AGG brings together the latest equipment, technology, and innovations shaping the construction and aggregates industries.

• Las Vegas Convention Center

• South Hall – 1st Level

• Booth S64618

Stop by to connect, explore new solutions, and see what’s next for the industry.

Learn more: https://www.conexpoconagg.com/