The MHEDA Journal - Third Quarter, 2012 - (Page 45)

DISC REPORT MONEY MATTERS Analyzing the DiSC Results BY ROBERT CURRIE A s with most surveys, you can always find the positives as well as the negatives when reviewing the results. The 2011 DiSC Reports for both industrial truck and engineered systems/storage and handling (ES/ SH) are no different. Generally speaking, the economic climate continues to show positive results, as evidenced by revenue growth in both segments. The liquidity of both is also a strength, and it shows the need for continued consolidation. Employee productivity, mainly gross profit per sales representative, labor revenue per technician and asset utilization, are areas of opportunity. The average industrial truck dealer grew their revenues in 2011 by 22.7 percent, while the high performing dealer averaged 32.0 percent. The average ES/SH dealer grew their revenues 17.7 percent, while the average high performing dealer grew their revenues by 22.8 percent. These are strong figures when compared to the target of 15 percent. The growth came in all segments of the business, with product sales and short term rental leading the charge. Another area of strength for both segments is the liquidity of the dealerships, namely strong capitalization and debt to equity. In our experience, industrial truck dealerships are properly capitalized with a debt to equity ratio of 3:1. The industrial truck segment average dealer came in at 2.1:1 and the high performing dealer came in at 1.4:1. When dealers approach 2:1, start thinking about acquisition and/or expansion opportunities. When dealers approach 1:1, an acquisition is almost a necessity. As for the ES/SH segment, a properly capitalized dealer is 1.5:1. The average ES/SH dealer came in at 1.6:1 as did the high performing ES/SH dealer. Similar to industrial truck The MHEDA Journal | Third Quar ter 2 012 45

Table of Contents for the Digital Edition of The MHEDA Journal - Third Quarter, 2012

President’s Perspective
From the Desk of Liz Richards
Ask Your Board
MHEDA Member Profile
At Work
Best of the Best Distributors
Training and Engaging Technical Talent
For a Successful Onboarding Experience… Be Prepared and Make Time for New Hires
Analyzing the DiSC Results
Help Stamp Out Budgeting
Distributor Salespeople Reveal Their Greatest Challenges
When Sales People Become Bread Men
The Why and How of Twitter
Managing Interruptions: Be Polite, Be Honest and Get to It
MHEDA Convention 2012
New Members
Spotlight on Association News
MHEDA University Calendar
MHEDA Milestones
New Products
Index of Advertisers by Product Category

The MHEDA Journal - Third Quarter, 2012