OpenUp - Case Studies

Key Messages
How-To Guides
Case Studies
Assessment Tools
Solutions Providers
Library

Combilift

2 . Background

2.1 Company Background

Based in Clontibret, Co. Monaghan Combilift Ltd was the first company in the world to develop an enginepowered all wheel drive four-way forklift that is now being successfully exported to 32 countries around the globe. The Combilift is a unique type of forklift used for lifting long loads and has the advantage of requiring less operating space than previous models of forklifts on the market.

Combilift Managing Director Martin McVicar and Technical director Robert Moffett set up the company in Clontibret in March 1998. “We opted to make a specialised forklift aimed at the long load material market. With this in mind, we developed a machine that is a combined 4-directional forklift that can operate as a counterbalance front forklift and side loader. This is more effective at moving long loads than existing models which just move backwards and forwards,” said Mr McVicar.

Combilift's innovative multi-directional forklift is the result of two years of intensive research and prototype development work by Martin McVicar and Robert Moffett. Both had previously worked in the forklift manufacturing industry and saw a gap in the market for a four directional forklift that could operate both indoors and outdoors. The Combilift is a combined forklift that can be operated forwards and backwards like a normal forklift or to the left and right like a sideloader. The Combilift forklift remains the only one of its type on the market and has now found a ready market among timber companies, PVC extrusion companies, aluminium extrusion plants, steel stockists, DIY stores and timber frame manufacturers.

In 1998 the company embarked on an extensive R& D programme and before the end of the year it had shipped its first consignment of new Combilift forklifts to Norway, Benelux and France. The company started out with a staff of just three but now occupies a 60,000 sq ft manufacturing plant and has a staff of 60. As a result of continued growth, the staff number is expected to be over 70 by the end of the year.

Combilift produces 10 units a week, which are sold in Europe, North America, South America, South Africa and Australia. Exports account for 93% and the main markets at present are Britain, Benelux and France. The company has now set up a network of 52 dealers around the world and also sells its forklifts directly to customers in Ireland. Since going into production in 1998, it has delivered in the region of 1200 units including around 120 in Ireland. Growth has been impressive as the following production figures show:

YEAR	PRODUCTION
1998	18 units
1999	130 units
2000	320 units
2001	450 units

Turnover has increased by 98% in the last year, a solid achievement in a highly competitive marketplace. According to Martin McVicar, the market for the Combilift forklift is continuing to grow, “For most companies space is at a premium - using this type of forklift can help companies to reduce their warehouse space by 50% or to double the amount of stock within existing warehouses”.

The saving of space is achieved because the Combilift can carry long loads sideways rather than front- ways. “A conventional forklift carrying a six metre long load requires a six metre aisle but on our machine it only needs an aisle width of 2.5 metres”, explained Mr McVicar. The exponential growth rates over the last three years culminated in a turnover of IR£14.3 million for last year.

“We are planning for growth of at least 20% over the next 12 months”, said Martin McVicar.

The long-term aim is to develop Britain, the US and Germany as the company’s main markets. It began exporting to the US a year ago and this now accounts for 15% of sales. As part of its plans to expand sales in Europe, Combilift has now appointed product managers in both Britain and Germany.

Reflecting the technical background of its founders the company is continuing its programme of R&D and has recently developed a forklift with a smaller lifting capacity of 2,500kg. Combilift now offer a range of models with capacities from 2,500kg up to 8,000kg. Combilift has employed a lean production set-up to ensure a high return on investment. All materials assembled on site are pre-cut and supplied by subcontractors. This means the capital investment required for their on-site production capability is limited.

Consequently, their ROI is very high. They order all the materials for their subcontractors and supply them with the jigs and fixtures for their production process. Combilift have invested in their MRP systems in order to enable this lean production model. All workers on the main assembly line are paid a piece rate, which enables Combilift to understand their costs very exactly at the product level. Any customisation occurs at the end of the line. For example, if different forks or masts are required by customers. This has the effect of simplifying the main production process and enabling speed and efficiency gains.

Combilift has achieved recognition of its success and growth. In 2001 they were named the DHL Exporter of the Year. Peter Lomax, Managing Director, DHL Worldwide Express commented as follows at the presentation of the award; "Combilift Ltd was awarded the title of DHL Exporter of the Year 2001 in recognition of strong focused growth built on a clearly defined strategy, which combines marketing flair and truly innovative products." Also in 2001 Martin was named as the Ernst & Young Entrepreneur of the Year. Mr Enda Kelly, partner-in-charge of entrepreneurial services at Ernst & Young, made the following comments when asked what led to Martin winning: "What set Martin apart was the sheer tenacity he showed in bringing a hugely innovative product to an international marketplace, where he managed to take on some of the largest engineering companies in the world and beat them at their own game."

2.2. Business strategy

Combilift ’s ongoing business strategy is composed of the following elements:

1. Manage national and/or regional dealers in key markets: UK, France, Germany, Benelux, Norway, Spain/Portugal, Italy, US and Canada.

2. Provide full technical and marketing support to these dealers, including:

Applications engineering, customer evaluations, warranty and spare parts.
Technical training including operator’s manuals, spare parts manuals, driver training and dealer staff training (text manuals moving to Internet training)
Marketing support including brochures, videos, demo machines, trade shows, inward visits, dealer meetings, PR.
Sales support including visits to existing/potential customers, co-exhibiting at shows.

3. Creation of a dedicated sales team within each key market to co-ordinate/ evaluate dealer actions and to manage key accounts directly, with large material handling customers. Combilift is already in the process of setting up these teams within the UK and US markets.

4. Open up new applications by identifying new opportunities through feedback from customers/dealers and through close co-operation between the R&D department and technical sales support. The five-year goal is to sell the Combilift product in over fifty countries worldwide.

2.3. Market Background

The forklift truck manufacturing market is extremely competitive. There are over two hundred manufacturers worldwide. However, the majority of these compete in the market for the traditional counterbalance truck. Combilift compete in a sub-market focused on long loads. There are around forty competitors in this marketplace, manufacturing sideway and/or four way electric forklifts. Long loads account for around 10% of all materials handled today.

Within the long load market there are a number of significant competitors including:

Baumann – the biggest sideloader producer in the world with a 15-20% market share.
Hubtex
Boss

Combilift created a niche within the market for itself by creating the Combilift truck, the first engine-powered, fourway, all-wheel hydrostatically driven industrial forklift capable of operating both indoors and outdoors. By competing within this niche Combilift have developed a significant head start on the rest of the market. However, there are competitors who have, and are developing, the technical capability to become an effective competitor. That is why it is critical that Combilift use its four year head start to optimise its competitive position. They are attempting to do this by focusing management time on developing a strong and worldwide dealer network to enable them to efficiently serve all their geographic markets.

The eBusiness project is a critical component of the supporting infrastructure required to effectively run and manage this worldwide dealer network.

2.4. Customer case-studies

Martin underlined the company’s marketing approach by saying "We’re in the business of selling solutions here, the forklift is secondary."

The products are sold on the basis of the following three key benefits:

The ability to use the Combilift in an indoor and outdoor environment
The ability to save space and increase storage capacity as a result of using the Combi-lift
The ability to handle long product more safely by travelling sidewards.

The following two customer case studies provide an example of how the Combilift has been used to create value for customers.

Boise Cascade

The potential problem of handling 15 – 20 metre lengths of engineered wood at Boise Cascade’s main UK distribution centre has been solved by the use of a multi-directional Combilift fork lift truck to offload and manoeuvre these exceptionally long loads in and around the premises.

A major global supplier of LVL (laminated veneer lumber) and BCI® joists for flooring and framing systems, Boise Cascade import the uncut products from manufacturing facilities in the USA to their new Upper Heyford plant in Oxfordshire. Managing director Mark Rees realised from the outset of operations that it would take a special machine to cope with the demands of handling such a product, and found the answer in the form of an engine powered 4.5 tonne capacity Combilift multi-directional forklift, designed primarily for handling long loads in confined spaces. Essentially three machines in one, it can efficiently unload the packed lengths, manoeuvre them sideways through the warehouse doors and stack them in narrow aisles before they are cut to exact customer requirements.

Manoeuvrable and versatile, even on semi-rough terrain and in harsh weather conditions, the Combi-lift’s 4-way travel capability enables Boise Cascade to utilise their storage area to maximum capacity, both inside and out. According to Mark Rees “the Combilift was a great solution and I reckon we have saved a good 40% on storage space.”

Due to the nature of Boise Cascade’s products, certain individual requirements were addressed by Combilift, such as the supply of a fork attachment to increase fork spread and minimise flexing of the veneer when conveyed around the plant. As Mark Rees points out: “You need very specific equipment to successfully work with a product of such extreme length, and thanks to the specialist nature of the Combilift, it is perfect for the job.”

Timber Store plc
The acquisition of a Combilift multi-directional forklift truck has enabled Timber Store plc to increase the amount of panelled materials and timber they can store at their Crawley outlet, and has considerably speeded up loading and stacking procedures in restricted areas of the premises.

Selling a wide range of timber and building products from four depots around the South East of England, Timber Store need to run a streamlined operation to ensure quick and safe offloading of materials in areas of public access and alongside customers parked vehicles, as well as being able to carry as much stock as possible to satisfy client demand. The sheet storage area and cutting facility at the Crawley depot is particularly restricted, and was proving difficult to access using Timber Store’s previous combination of side and front loaders.

The Irish built Combilift, with fully synchronised four-way steering, was designed specifically for moving long loads in confined spaces, and is smaller and more versatile than bulky sideloaders. Managing Director Simon Fox explains: “Neither of the old machines were manoeuvrable enough for the narrow space available, which caused a great deal of time consuming double handling of materials. After consulting Mexmast, our local forklift truck dealership, we had a short trial with the Combilift and realised it was the answer to our problems – it does the job of both.”

A further benefit of using the diesel powered 4 tonne capacity truck is the extra storage space that has been created in the timber store, where packs of timber and roof joists measuring up to 5.4m in length are stored. An extra metre of stacking space in the lower racks has been gained due to the Combi-lift’s extremely low platform height. As the Combilift operates in aisles as narrow as 2 metres, racking can be placed closer together for more efficient storage.

<<<Previous

Start of case study

Next>>>