MHD sits down with Steve Takacs, President and CEO; Cameron Paxton, Vice President and Chief Operating Officer; and Rob Watkins, Director and Chief Financial Officer of Toyota Material Handling Australia to find out about how the business put its people and customers first during COVID-19, the new products set to launch in Australia later this year and why they see strong growth ahead.
Since the start of the coronavirus pandemic, there has been a spotlight on logistics and materials handling. Demand for quality service, experienced engineers and the highest standard of forklift trucks is more critical than ever for an industry that is dealing with unprecedented volumes.
With more than 800 team members, Toyota Material Handling Australia operates in a number of sectors that have seen significant growth since COVID-19, including grocery, logistics, pharmaceutical and retail.
The grocery retail sector has ramped up its operations to meet record levels of consumer demand, and online shopping has put pressure on logistics providers and retailers to move goods around the warehouse in a fast, safe and efficient manner. Forklift trucks are at the very core of being able to deliver on increasingly demanding consumer expectations.
Deemed as an essential service during the pandemic, Toyota Material Handling Australia (TMHA) has been working tirelessly to service its customer base in Australia during this challenging time.
Steve Takacs, President and CEO at TMHA says when COVID-19 first hit Australia, the management team got together and established two priorities for the business.
“Our two priorities during this time have been to service our customers and to ensure that we keep every team member in their job,” Steve says.
Steve is proud to report that TMHA hasn’t let one employee go during the economic challenges of COVID-19. He recognises the ongoing COVID challenges that are faced daily and says TMHA’s ability to serve its customers hasn’t been compromised at all during this time. He proudly states that the management team asked everyone to get on, stand tall and continue do their best.
“People have taken great pride in knowing that they are an essential service and that they have helped keep the economy moving in their communities,” Steve says.
Communication has also been strong across the entire business during COVID-19 and Cameron Paxton, Vice President and Chief Operating Officer at the company recalls that when the border closed between Victoria and New South Wales, within 45 minutes the executive team had organised meetings with the branches that would be most impacted by this decision.
“At our Albury branch, we have customers on both sides of the border. We have ten technicians working out there so we were very agile and worked out how we would continue to serve our customers on both sides of the border while the Government worked out issues around permits,” he says.
For Cameron, TMHA’s commitment to keeping the team operational, servicing its customers and practicing agility has been the secret to the leading forklift provider’s success.
Steve reiterates this and says that one of the main ingredients of success for TMHA was that it has a long-established successful business model.
“We didn’t have to make significant changes. We have fundamental business practices that we do on a daily, weekly, monthly and annual basis that keep us strong and leaders in our field,” Steve says.
For the last ten years, TMHA has been growing its market share and positioning itself as a corporate player in some of Australia’s largest growth industries including grocery, logistics food manufacturing and pharmaceuticals.
“We are heavily entrenched in these industries so if anything, our workload has increased during COVID-19,” he says.
While some customers have introduced additional rental equipment, Steve says the extra support really came from the service team.
“Many of our customers started using the equipment they already had on site nearly twice as much as before COVID-19 as they ramped up their operations. Therefore, our servicing increased and we needed to be on site to ensure that the equipment was performing at its very best to support these customers in high-growth industries,” Steve says.
Long-term loyalty
It is not uncommon for team members at TMHA to have served in the company for more than ten years. “We have a saying around here ‘it’s harder to get out of the place than it is to get in’, which gives you an idea of how long team members stay with us,” Steve says.
This can also be seen in the executive team, with Cameron working at Toyota for 24 years. “From a personal perspective I still feel like I can make a difference. We never rest on our laurels at TMHA and we are continuously looking for ways to improve the business and move forward. This business has invested heavily in me and I’m very grateful for that,” he says.
At TMHA it’s about making sure the person is the right fit rather than searching for candidates with a long list of qualifications. “A qualified person does not always make a great employee. First and foremost, we look for the right person. From there we develop them, invest in them and provide ongoing training to help them throughout their career,” Steve says.
The support doesn’t stop at professional development, at TMHA there is a focus on wellbeing outside of the job and Steve says that the business is committed to helping with all facets of an employee’s life.
“We offer initiatives like help line and counselling. We invest heavily in our people to make sure they are stable in all aspects of their life,” he says.
This can be seen during COVID-19 when TMHA sent all employees to their home a parcel consisting of puzzles, toys and snacks for the family.
“We recognised that during lockdown people couldn’t do the normal activities that made them happy, so we wanted to keep people positive and engaged and that was really well received,” Cameron says.
Furthermore, TMHA ran onsite childcare but when COVID-19 hit they quickly moved this online which was also well received by team members.
“Even though we are a very large organisation, it’s like being part of a family and there is a real undercurrent of caring for our people,” Rob Watkins, Chief Financial Officer at TMHA says.
Minimising risk with diversification
Recognising the need to diversify and an opportunity to offer the well-known service, performance and reliability in the materials handling sector to other industries, Steve says TMHA is excited to move into new territories.
“We have had a couple of products in our range that were orphans, they were really out there on their one. But we’ve taken these products and put a family around them so as to strengthen the business,” Steve explains.
Referring to the new Huski Construction Equipment and Taylor Dunn ranges, Steve says TMHA can use its expertise to move into new areas of business.
The Huski range features skid steers, scissor lifts and mini excavator products and is set to fully launch in Australia in September this year.
Additionally, TMHA is the authorised dealer of all Taylor-Dunn transport and materials handling equipment with the exception of Victoria. “We had a tow tug that operated in the airports, but again this was an orphan product, so we decided to introduce more of these products into this range,” Steve says.
This has been a strategic move for TMHA, moving into different segments ensures that if one industry is to face recession then the other might be stronger so it minimises financial risk.
An added benefit is that TMHA’s engineering expertise lends itself very well to these industries.
“Our engineers are all electro-mechanical experts, so if they can fix a forklift they can also fix an excavator,” Steve says.
TMHA is committed to growing these new segments of the business and is currently training up engineers and product managers on the products.
Engineering excellence
A major priority for TMHA is research and development. The business invests heavily in new products and new ways of improving existing products.
One area where this is evident is in TMHA’s major shift from Internal Combustion (IC) to electric trucks.
“Hydrogen fuel cell is a focus for Toyota Material Handling globally. As a business we have invested time and revenue into producing equipment for the future. Our factories are producing new and better ways to work, and we are an absolute leader in this exciting sustainable option,” Steve says.
Electric forklift usage has grown exponentially in Australia over the past ten years. According to Steve, ten years ago 60 per cent of forklift trucks were IC, but now more than 50 per cent are electric.
“In Europe, it’s closer to 80 per cent and in the forthcoming years Australia will reach 70 to 80 per cent,” Steve says.
According to Steve, TMHA is the only forklift provider in Australia to have two hydrogen fuel forklifts currently in operation in Australia and is committed to growing this area of the business.
Sustainability is another area of importance for TMHA, with both the manufacture and running of the forklifts important.
“We use primarily lead acid batteries which are 100 per cent recyclable. Our forklifts are also completely recyclable, and we can boast a run time of two shifts with one battery,” Steve says.
Committed to the Australian market
TMHA sees significant growth across the country and has made investments to mirror this sentiment. “Over the past five years we have ingrained ourselves in the Australian market. We have made significant investments and commitments to position ourselves here as a leader for the materials handling industry,” Steve says.
The company has moved away from renting facilities, and has built a purpose-built facility in Adelaide, with Melbourne set to follow.
“Our Adelaide branch is an absolute showstopper. We purchased the land and built it up from nothing. We had the site specifically designed to accommodate our growth for the next 20 years,” Steve says.
The South Australian site comprises of 12,600 sqm, a roofed area of 4,546 sqm and a dedicated training facility and demonstration area. Sixty-eight team members are employed at the site and it retails the entire TMHA range as well as the Huski Construction Equipment range.
“We will be doing the same thing in Melbourne and Sydney and feel that this is a sign of confidence to our customers. They know that we are here for the long-term and we have committed to the infrastructure in Australia,” Steve says.
Added to these new sites, TMHA has also built a Customer Experience Centre in Sydney. “We can bring a customer in and within an hour they will know everything about the company, from our work health and safety record through to our social contributions to charities to our total package of products. We want them to walk out and understand our capabilities and our depth.”
Looking to the future, Rob says that TMHA is committed to sustainability. “A long time ago we implemented a long-term sustainability plan for our business and our people. We have never sacrificed long-term sustainability for short-term profit, and we will continue along those guidelines,” he says.
For Steve, there is a huge upcoming opportunity with the new Huski Construction Equipment products. “We have reached a point where we are already doing over 1,000 units a year. We have now recruited sales managers in every region and look forward to continuing to grow these fantastic products,” he says.
He also sees opportunity for growth in regional Australia. “Some of the regions are suffering at the moment but they will bounce back and as ever we will be there to support our customers,” he concludes.