Electrifying powered industrial trucks is an overlooked emission reduction strategy

Photo Credit: Hyster

Photo Credit: Hyster

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Has your organization gone all-in on an electric fleet?

While a relatively small share have taken advantage of fleet electrification, it is a clear, powerful lever that operations can pull today to initiate progress towards a more sustainable future.

Sustainability is a nearly universal concern for today’s supply chain managers. In fact, the data from a survey we commissioned to better understand how organizations are approaching the issue shows that 93% of supply chain operations see emissions reduction as an important objective. Additionally, 77% of respondents report that they personally are extremely or somewhat motivated to be more sustainable.

Where does that motivation stem from? Government regulations to reduce greenhouse gas (GHG) emissions are putting real pressure on organizations to move away from fossil fuel consumption and towards greener alternatives, including the electrification of powered industrial trucks (PITs) like forklifts and container handling equipment. And for some investors and consumers, minimizing carbon footprint doesn’t just reflect well on the business – it may actually be a condition for doing business.

But mandates aside, reducing emissions makes business sense in many cases. The use of electric material handling equipment can help create a cleaner and quieter environment not only for the public, but for employees as well. The operator compartment of a forklift or the cabin of a container handler is essentially the operator’s office, and a work environment with less vibration and noise compared to equipment powered by internal combustion engines (ICE) can help increase employee satisfaction, a key concern in the struggle to retain workers amidst a highly transient labor force.

And the financial benefits are there, too. As with electric vehicles, electric materials handling equipment has fewer moving parts, which means no oil changes, exhaust system repairs or maintenance on engine systems that can drive up service costs through its useful life. Electricity tends to be cheaper than fossil fuels, adding to the potential cost savings. And converting a fleet from ICE to electric may also qualify for various federal, state and local grant programs that can help offset the acquisition costs of trucks, chargers and charging infrastructure.

Despite the draws, PIT electrification is underutilized

It’s clear that there are powerful reasons to consider PIT fleet electrification. But despite their interest, many companies are lagging. In surveying supply chain operations, we found only 17% have completely electrified their PIT fleets, and 28% do not expect to start buying and leasing electric PITs for at least another three years.

The survey results also point to significant potential for ongoing education in this area. Sixty-six percent of respondents only somewhat understand their PIT fleet electrification options, while 9% report having no understanding at all. That, of course, suggests supply chain operations could benefit from some help.

Fleet electrification, step by step

1. Find a partner who can help assess your needs, make a plan and implement it. Equipment alone is not enough. The key to a successful electrification transition is having a clear understanding of requirements and properly planning to meet them. That’s why a partner with deep experience in electrification will be your strongest ally throughout the process. As you evaluate potential equipment providers, look for a manufacturer that has the solutions that deliver on both sustainability and performance, and a host of customer electrification success stories under its belt.
2. Thoroughly assess how you are using PITs in your operation. It’s important to first identify the motivating factors behind the transition, and the main issues with your current fleet. Clarify what your PIT application looks like, including runtime hours, operating conditions, load types and weights, and try to anticipate what your application might look like in five to 10 years. With that information in hand, it is possible to determine which truck and power source configurations could possibly fit your operation’s needs, but can be narrowed down further by additional considerations such as ROI targets and electrical grid constraints to find the most efficient and cost-effective solution.
3. Determine your fleet’s charging or refueling strategy. A common question for operations considering a conversion is whether electric is robust enough for heavy-duty tasks. And the answer is yes, in most cases. While there are some applications that may be better suited to ICE trucks, advances in electric motive power have made electrified fleets a truly practical, climate-friendly alternative for a growing number of operations. What is important, is configuring a charging or refueling strategy to meet the demands your fleet faces. How long and how hard will the trucks be used, and what timing makes sense for them to be on a charger? Will they opportunity charge during the day, or rely on overnight or quiet hours? A comprehensive understanding of this information guides the creation of a blueprint for the electrical infrastructure. This determines where chargers will be placed, how much power is needed from the grid or through hydrogen sourcing and how will it be introduced.
4. Plan for implementation and ongoing support. Have your provider walk you through the implementation plans before you begin the process of converting your existing ICE fleet to electric. Arrange a phased transition if needed, since it is relatively rare that every PIT in your fleet will have the same lease term end date or replacement timeline. And as the electric trucks go into operation, a strong partner will provide recommendations for ongoing improvements well beyond the initial testing and acceptance.

Clean power that means business

While a relatively small share have taken advantage of fleet electrification, it is a clear, powerful lever that operations can pull today to initiate progress towards a more sustainable future. The framework laid out here is a start, but the best way to find out how electrification will work for you is to engage with a trusted provider. Learn more about choosing the best electric-powered equipment for your operation and building a comprehensive electrification strategy to meet both current needs and future goals.

Hyster Company has been manufacturing powered industrial trucks (PITs) for nearly a century and leads the way in the heavy-duty segment for a wide variety of industries, offering forklifts and container handlers with lifting capacities between 2,000 and 105,000 pounds. Hyster PITs offer a range of power options, from gasoline, propane, diesel and compressed natural gas to lead-acid batteries and more advanced electric clean power options like lithium-ion and hydrogen fuel cells.