Terex AWP opens new parts, logistic center

Terex Aerial Work Platforms (AWP) opened its new parts and logistics center today in North Bend, WA. The new facility is made up of two buildings, a 42,000-square-foot logistics building and a 150,000-square-foot parts facility. The new warehouse is double in size of Terex AWP's previous Redmond, WA warehouse.

Speaking at the event, Tim Ford, Terex AWP president, didn't shy away from the obvious elephant in the room - the down economy. Ford said the downturn is unlike anything he's ever witnessed before and that it has touched all types of industries, but that he believes it has leveled out.

"There were times when we wondered if the phones were working," Ford said. "But we've reached a point where we've stabilized. We're not getting worse. We're consistent now."

Fleet service parts

Terex's new parts warehouse supplies parts not only for its customers, but also stocks competitor's as well. Ford said the company started with about 300 competing OEM parts and now has anywhere between 400 and 500. He said the decision behind offering customers other OEM's components was that customers typically own more than one type of lift or piece of equipment.

"If they like our service, we will provide basic parts for them," he said.

Dave Schille, director of parts and warranty, Terex AWP, echoed Ford's sentiments and said the fleet service parts provides customers with the convenience of one location to fulfill all of their fleet part needs. "Competitive parts coupled with a mid-ninety percent fill rate, and our experienced, dedicated staff, provide our dealers with a full-service parts solution."

The facility is run on a philosophy gleaned from the Toyota Production System, or lean manufacturing. Absent from the warehouse are conveyers and automation systems, and instead, picking and shipment is run by around 100 team members and what Terex refers to as the ConBon card system.

The system basically is a card order notice/bring out notice system which alerts team members when certain parts are low and need to be manufactured or supplied.

Logistics

Terex AWP's 40,000-square-foot logistics center is yet to be integrated, but, the company says, it will be up-and-running by January 2010. One of the main advantages will be asset utilization and how quickly the product can be moved once it is built.

Terex AWP will use the logistics center as a small inventory holding tank, as well, which will alleviate space at its Redmond manufacturing facility, where no inventory will be held come 2010.

Kenneth Hearing, North Bend's mayor, told American Lift & Handlers he was very pleased with Terex's new facility. "It's great to have in town," he said. "It could add to our job force if manufacturing happens."

Economic outlook

Speaking to ALH about the economy and industry, Ford noted there could be positive bounces for the market around the second quarter of 2010. "We know where the bottom is (now)," he said. "A few months ago, we didn't know where it was."

But when asked about the equipment sales boom years a few years ago, Ford was unsure if equipment levels will ever reach the 2006/2007 levels. "Those were the two best economic years since World War II," he said. Sales might hit those historic levels again, he said, but not anytime soon.