How important is a brand name in the warehouse forklift market? Millions of dollars in advertising, marketing, and brand awareness are spent each year by major OEMs in this space, and they’re mostly geared towards the sale of new equipment. On the secondary market, the impact of the manufacturer on the fair market value can be harder to determine. At EquipmentWatch, we have developed a metric, known as the brand premium, to better understand this topic.
In this article, our brand premiums are based off the past 13 months of average asking prices on the resale channel for warehouse forklifts within each brand. Average asking prices across all 12 brands are used as our baseline. The graphs within this article were created by isolating the impact of brand name by holding remaining factors such as region and age constant across more than 132,000 warehouse forklift observations. The brand premium is the variance percentage from the average asking price for all warehouse forklift brands in our market data. We chose these 12 brands because they make up over 94% of the used market for warehouse forklifts. Brand premiums are important to understand because they provide insight as to which brands have the highest perceived value.
As can be seen in the first brand premium graph, Doosan had the highest average brand premium during the 13-month period, with Toyota being the second highest. The remaining four brands, in order from highest to lowest average brand premium over the 13-month period, are Caterpillar, Komatsu, Crown, and Linde. Only two of the six brands, Caterpillar and Komatsu, had an overall decrease in brand premium over the past 13 months, with Komatsu having the greater of the two. The largest increases in brand premium since April of 2017 were Crown (10.06%) and Linde (6.20%).
Among the six brands of warehouse forklifts with higher brand premiums, Doosan had the highest overall brand premium at the end of April, while Komatsu had the lowest brand premium of the six brands in this graph.
In the second brand premium graph, Yale had the highest average brand premium over the 13-month period, with Clark being the second highest. All six of these brands had average brand premiums less than the overall average for all 12 brands. Nissan had the lowest average brand premium over the time frame, but has come on strong over the past few months and had the highest brand premium among these six brands, as of the end of April. Nissan’s brand premium increased by 7.56% over the 13-month period, while Yale had the highest decrease (-5.17%).
Among the six brands of warehouse forklifts with lower brand premiums, Nissan had the highest overall brand premium at the end of April, while Hyundai had the lowest brand premium of any brand.
In terms of popularity among the five brands, Toyota is the most popular with 23.8% of the overall market share, while Hyster is in second at 18.7% of the market. The rest of the brands, in order of market popularity, are Caterpillar, Yale, Doosan, Clark, Mitsubishi, Komatsu, Linde, Crown, Nissan, and Hyundai. In terms of average prices, Hyundai had the highest average asking price with Hyster being the second highest; Crown had the lowest average asking price. There is a lot of variability in the average asking prices due to the type of forklifts that each brand manufactures. Crown makes mostly smaller forklifts, while Hyundai and Hyster make many larger forklifts. There was a large influx of warehouse forklifts into the resale market in September of 2017, this is likely what caused the variability in brand premiums around that time.
These pieces of equipment are used in a very specific setting, while some forklifts are used outdoors to lift shipping containers, most of them are used in warehouses to lift pallets of materials. The lifting capacity can range from 1,500 lbs all the way up to about 100,000 lbs and the lift heights range from six inches all the way up to almost 40 feet. They also come in different applications, such as walkie stackers and stand up rider lift trucks, where you walk behind the forklift or stand up straight while riding in the forklift. Whatever your needs are, there is sure to be a forklift that will fill them.
Average age is important to understand because it details which brands are staying on the market the longest. When looking at the first age graph, we can see that the six brands have average age ranges between 7.4 and 12.3 years as of April of 2018. Crown has the highest average age throughout the 13-month period with Caterpillar close behind, while Doosan has the lowest in that same time frame. Linde, Toyota, and Komatsu all are within 0.5 years of each other.
The brand with the highest overall average age in the graph above is Crown and the brand with the lowest overall average age is Doosan.
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Looking at the second age graph, Hyundai had the lowest average age and lowest of any of the 12 brands in this article, while Clark had the highest average age as of April of 2018. Nissan had the second lowest average age throughout the 13-month period. Hyster, Mitsubishi, and Yale had average ages within 0.28 years of each other as of the end of April of this year.
The brand with the highest overall average age in the graph above is Clark and the brand with the lowest overall average age is Hyundai.