The MHEDA Journal - First Quarter, 2016 - (Page 25)

ASK YOUR EXPERT ADVICE BOARD Q "With a trend of consolidations and acquisitions of systems integrators in the industrial truck industry, some companies are seeing their competitive landscape becoming more and more dynamic, presenting their managers with new sets of challenges. Do you believe this trend will continue beyond the short term and can you share a few of the challenges you believe to be critical?" Bill Lowry, Corporate Controller at Tynan Equipment Companies in Indianapolis, Indiana Scott Lee, President, Conveyor Solutions, Inc. Schaumburg, IL A If the economy remains strong, I think you will see this trend continue. However, the "systems" business isn't for everyone. In twenty years of owning a company, I've seen a number of Industrial Truck organizations "dip their toe" into the "systems" arena (many of them more than once). One of the major challenges IT folks have is the long purchasing cycles in the "systems" world along with the number of hours and effort required "pre-sale" to provide a solution. Many of the IT managers have been working in a different environment and find it difficult to adapt to the change in purchasing habits. Another challenge is you'll find much of the asset value of an IT company sitting right there on the balance sheet. However, in a "systems" organization, the asset value is often contained in the intellectual knowledge and experience of the work force, and not on paper. Managing those assets is very different and often more fluid than a larger, established IT organization. For those IT organizations looking to get into that side of the business, they need to be "all in." Half way will not work! Buddy Smith, CEO, CMH Services Columbia, SC A Yes, in my opinion the trend towards consolidations and acquisitions related to systems integrators will continue. This consolidation activity is driven of course by the marketplace. More customers are looking for better and more efficient ways to receive, store and ship product which is leading them to leverage technology for better automated solutions. I believe the real challenge for a distributor is its ability to embrace change. Those companies who understand the changes going on in our industry and position themselves appropriately will be in a position to profit from new opportunities. Change can be difficult for any organization; however, I believe it is necessary in today's business environment. The MHEDA Journal | First Quar ter 2 016 25

Table of Contents for the Digital Edition of The MHEDA Journal - First Quarter, 2016

Chairman's Perspective
From the Desk of Liz Richards
Editor's Note
MHEDA’S 2016 BOARD OF DIRECTORS AND MBOA
Ask Your Board
MHEDA University Calendar
MHEDA MEMBER PROFILE
@ WORK
WOMEN AT WORK
DISTRIBUTORS FORECAST
SUPPLIER FORECAST
MHI FORECAST
ITA FORECAST
CEMA FORECAST
MAPI FORECAST
A POSITIVE 2016 IN STORE FOR MATERIAL HANDLING
New Members
Spotlight on Association News
MHEDA Milestones
Index of Advertisers by Product Category
The Last Word

The MHEDA Journal - First Quarter, 2016

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