The total cost of forklift ownership: What you need to know
If you regularly use forklifts in your business’s operations, understanding the total cost of forklift ownership is crucial for making informed decisions. While the initial purchase price is the main focus for most buyers, it’s just the beginning of your investment.
Calculating the total cost of ownership helps with long-term planning and means you can budget effectively for the whole lifetime of your equipment, not just the initial investment.
Today, we’re guiding you through everything you need to consider when it comes to the total cost of forklift ownership.
Breaking down the costs
The forklift cost of ownership extends beyond just the purchase price. First, consider your initial investment. After buying the machine itself, you should also factor in delivery, installation/set-up and essential driver training. Whether you’re looking at a brand-new forklift or considering a quality used model, making the right choice from the start is key.
Day-to-day running forms a significant part of your ongoing costs. When customers ask us “how much does it cost to run a forklift?”, we tell them that it varies depending on usage and choice of forklift. Fuel or electricity consumption, operator wages, insurance and regular maintenance all contribute to running costs. While they might seem like small expenses individually, they add up over time and should always be factored into your purchasing decision.
Choosing the right forklift for your needs
When choosing a forklift, the type you choose can impact your total cost of ownership. Each option comes with its own costs that need consideration:
LPG forklifts are great for flexibility with their indoor/outdoor capabilities and fast refuelling, though fuel costs can vary. They usually have moderate maintenance requirements and good resale value, making them a popular choice.
Diesel forklifts, while often more expensive to buy, can prove cost-effective for heavy-duty outdoor use. Their robust performance and durability can often offset the higher purchase price. However, they also generally have slightly higher maintenance requirements and fuel costs that should be factored into your decision.
Electric forklifts might require a larger upfront investment, but their lower running costs and reduced maintenance needs can lead to significant savings over time. They’re particularly great for indoor settings and regular use, though you’ll need to consider the costs of charging and battery maintenance.
Before making a decision, it’s worth arranging a site survey with your chosen supplier to decide which option best suits your needs and budget. Consider factors like:
- Your environment (indoor, outdoor or mixed)
- Average daily usage hours
- Maximum load requirements
- Local fuel costs and availability
- Storage and maintenance facilities
Key components and ongoing maintenance
A lot of businesses want to know “what is the most expensive part of a forklift?” For traditional forklifts, the engine and transmission often need the most investment when it comes to maintenance and replacements. Electric forklifts generally require less maintenance overall, but their battery is usually the most expensive component to replace.
Regular maintenance is essential regardless of your forklift type or model. A well-maintained forklift lasts longer and operates more efficiently, helping reduce your total cost of ownership over time. Good practices for maintenance include regular routine checks, timely repairs and keeping detailed maintenance records.
Buying vs hiring
Your decision to buy or hire a forklift should come down to your specific business needs. If you’re using forklifts daily and are able to regularly maintain your trucks, ownership could be the best option for you. Ownership gives you complete control over your fleet and can be more cost-effective in the long run.
Hiring can be a smart choice in many situations, however. For seasonal businesses or those with varying workloads, the flexibility of hiring a forklift can be a huge benefit. It’s also worth considering hiring when you’re working on specific short-term projects or if your business needs often change.
Considering electric forklifts
Will electric forklifts reduce the total cost of ownership? The answer depends on your specific operations. Electric forklift cost of ownership often does work out lower in the long run due to reduced maintenance and lower energy costs. However, there are some key things that you still need to consider:
- Higher initial purchase cost
- Battery charging stations
- Staff training for correct maintenance
- Potential battery replacement costs
- Power supply and higher electricity rates
Savings on fuel and maintenance often helps offset these costs over time, especially if you’re operating indoors with regular usage patterns. Many businesses do find that electric forklifts offer a great return on investment due to their lower daily running costs and reduced downtime for maintenance.
Making your decision
The total cost of ownership can vary significantly depending on your choices and day-to-day operations. Whether you choose to buy or hire, electric or traditional, it’s important to understand all the costs involved. Always take the time to assess your specific needs and consider both the upfront and long-term expenses before making a final decision.
To make the right decision, think about these key points:
- Your expected usage hours
- Local fuel or power costs
- Your maintenance capabilities
- Operator training
- Long-term business plans
Many businesses find it helpful to speak to experienced forklift suppliers who can provide more detailed cost comparisons based on your real usage. Their expertise can help you understand the true total cost of ownership for your business.
Understanding the total cost of forklift ownership is key to making a solid business investment. By carefully considering all aspects – from initial purchase or hire costs to daily running and maintenance – you can make an informed decision that benefits your business, both now and in the future.
Need help understanding your forklift costs? Whether you want to discuss your options or would like to arrange a free site survey, our friendly team is here to help. Get in touch through our web form, call us on 0113 393 2881 or email enquiries@moorgateltd.co.uk for honest, practical advice.
