Switch to electrics reduces energy costs 80%

Setco's move also reduces maintenance and financing costs.

Modern Materials Handling - October 2, 2006

Plastic container manufacturer Setco's lift truck fleet is literally humming now that the company has switched from propane to electric-powered vehicles in its Monroe Township, N.J., facilities.

Since Setco replaced its 18 propane trucks with a fleet of 48-volt sit-down counterbalanced lift trucks, managers estimate that the cost of powering each vehicle has been reduced to one fifth of what it had been before the change.

Because the company must move finished products between its manufacturing facility, an adjacent staging area and a larger warehouse, lift truck performance has a significant effect on efficiency. And efficiency is increasingly critical at Setco.

In 20 years, the company has grown from a small operation with just one molding machine to a much larger company with 48 machines and 250,000 square feet of warehouse space. But two things held the company back: high fuel costs and the overall cost of its lift truck fleet.

"The amount of money we were going to save just kept adding up," says Setco purchasing manager Linda Lugo. "When we took into account more than just the fuel savings and included the effects of fewer repairs and our financing arrangement, we wound up saving far more than we originally planned."

Lugo says operators used to exchange propane tanks after every shift, discarding what was left in each tank and wasting substantial amounts of fuel. With electric-powered trucks, that's no longer an issue.

The fuel savings allowed Setco to pay for improvements in the plant's electrical system necessary to accommodate battery charging. The company also enjoys residual benefits such as the cleaner warehouse that came from the elimination of exhaust fumes.

Lift truck operators have also expressed their preference for the electric trucks. While providing the same travel speeds and lift power, the new trucks feature an advanced ergonomic design that places travel and hydraulic controls easily within the operator's reach.

"Every single one of our operators has said they are happy with the lift trucks," says Ralph Capizzi, Setco's warehouse supervisor. "They love the seat. It absorbs the shock when they're going over dock boards. The mirrors are also much better."

According to Lugo, the trucks have resulted in not only better performance, but a sense of ownership among operators, who now treat vehicles as if they were their own.