Over the past two years, South Africa’s industrial equipment and material handling industry recorded its largest markets in history, with 10, 724 units into the country in 2021 and 9,828 units in 2022. This is in a market that historically averaged about 7,000 units a year. This growth is largely due to an increased demand for forklifts in industries such as manufacturing, FMCG and distribution as well as in response to a rise in e-commerce, which grew significantly during the pandemic.
National sales manager for Toyota Material Handling, Vuyokazi Bangazi, says in addition to increased demand from the e-commerce and industrial sectors, an increase in infrastructure development and urbanisation in the country have propelled growth in the market. Post the pandemic, Toyota Material Handling experienced double-digit growth in market share from 2021 to 2022.
“While this growth is expected to remain relatively strong this year, I do foresee a slowdown by 2024, given the cyclical nature of the business,” she adds.
Bangazi says greater demand for electric, counterbalance and electric low- and high-level warehouse equipment has shown the country is moving towards electric, warehousing and high stacking, most likely due to the increased cost of space.
“Between 2021 and 2022, we noted steady growth from 45% to 57% in electric versus IC orders. This increase in the market shows that businesses are utilising and maximising their operational space to the fullest. Understandably, this has resulted in an increased demand for electric equipment trucks.”
Greater focus on fuel efficiency and a reduction of carbon footprints (ahead of carbon tax being implemented) means the majority of manufacturers are interested in battery operated equipment as opposed to diesel.
“Notably, the use of electric forklifts is a standard requirement for the agricultural, food production, distribution and wine export industries, even as South Africa continues to grapple with loadshedding,” adds Bangazi.
“In 2021, our strategy was to pursue the markets we didn’t have. Since then, we have grown new business significantly. This strategy was underpinned by our commitment to improving our customer interactions and service support infrastructure and empowering and developing our employees.”
In fact, the business did so well that it was awarded the 2022 Toyota Material Handling International (TMHI) President’s Award (Silver) at the TMHI conference held in Japan this year. “This distinguished recognition by our distributor in Japan underscores the remarkable contributions made by our entire team and its dedication to excellence across all facets of our operations,” notes Bangazi.
Toyota Material Handling also received a Crystal Award, which recognises businesses that have held a significant part of the market for three consecutive years, including the most recent year.
In addition, the business was recognised by Toyota Industries Corporation Organisation (TICO) and Toyota Tsusho Corporation (TTC), its OEM in Japan, for the highest number of factory orders for material handling equipment placed in South Africa since its inception.
Bangazi says this would not have been possible without the support of the business’s customers, suppliers and employees. “In addition, our culture has shifted over the past two years towards an improved understanding of the market and a concerted effort to enhance all areas of operation.”
Going forward, the industry – like so many others in the country – has several challenges to deal with, including loadshedding, interest rate adjustments, the exchange rate, a lack of skilled labour, inadequate infrastructure, the and limited access to financing, amongst others.
Bangazi says loadshedding is a massive issue for Toyota Material Handling customers. “Loadshedding diminishes our customers’ ability to achieve their goals, which means they have to make cost-saving decisions such as whether to invest in new material handling equipment or rent it – to stay afloat.”
The challenges customers face mean they take longer to make decisions, sometimes deliberating on tenders for a long time before they are awarded. “It is important to be able to read the market and act accordingly. Being agile is critical, because waiting for things to change does not come with any guarantees,” adds Bangazi.
In addition to agility, Bangazi says the business understands how important it is for executives to support its sales force and understand their challenges. “It is just as important as having open conversations with our customers, because this can open the doors to negotiate different options.
“Imperative too is offering our customers innovations that help improve safety and efficiencies for their businesses, as well as the value adds we can deliver, such as telematics and after-market support.
“Today, our business is more consultative and less transactional. The relationships we nurture, the conversations we have and the value we add are paramount to succeeding in the current marketplace,” she concludes.
National sales manager for Toyota Material Handling, Vuyokazi Bangazi.
