NACCO Industries Competition
Now Viewing NACCO Industries's competition in: Material Handling Equipment Distribution (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How large a geographical area does the company service? - The size of a dealer’s territory is limited by the need to have a central service facility.
Does the company have an exclusive territory? -
Do customers buy off the lot or order through the company? -
How does the used material handling equipment market impact company sales? - A rash of warehouse and distribution center closings over the last year has resulted in a glut of material handling equipment. Warehouse closings have haunted e-commerce firms like e-toys and Amazon as well as old economy firms.
What proportion of sales is sold to existing customers? -
Does the company offer service contracts? - Service contracts with guaranteed uptime can appeal to customers who want to minimize expensive labor positions and maximize output.
How does the distributor respond to increased numbers of special customer requests for individualized equipment? - Customers are demanding more personalized specialization in material handling equipment. Many special request trends could eventually become standard as customers continue to demand them.
How does the company find sales leads? - A material handling equipment distributor has a better chance at making a sale if the distributor learns about new warehouse or manufacturing construction before specifying has taken place and competition moves in; however, most distributors lack the staffing abilities to hunt down these sales leads.
How does the company avoid spending time and money developing proposals that are unlikely to lead to work? - One way to avoid this is by doing a better job of qualifying customers and screening projects.
Does the company serve both manufacturers and distributors? - Wholesalers are major purchasers of material handling equipment.
Competitive Landscape
Demand depends on the quantity of goods moving through the US economy. The profitability of individual distributors depends on good marketing. Small distributors can compete by specializing in a specific industry or type of equipment, or by offering excellent service programs. Large distributors can negotiate favorable agreements with manufacturers. Average annual revenue per employee is over $250,000.
Full Industry Overview For Material Handling Equipment Distribution
Business Challenges
CRITICAL ISSUES
Highly Dependent on Flow of Goods - Demand for material handling equipment depends on the level of goods moving through the US economy from domestic production, imports, and sales. US manufacturer shipments of goods fell 6 percent during the last recession; imports of durable goods fell 5. In a stagnant economy, customers defer purchases of new equipment.
Competition from Rental Companies - Equipment rental companies provide an alternative to buying forklifts or other equipment from a distributor. Big companies, like United Rentals and NationsRent, rent a limited line of popular forklifts along with other types of industrial and construction equipment. Smaller rental companies may specialize in specific types of material handling equipment.
Industries Where NACCO Industries Competes
- Industrial Manufacturing
- Material Handling Equipment Manufacturing(primary)
- Consumer Products Manufacturers
- Appliances
- Metals & Mining
- Coal Mining & Processing
