Dive Brief:
- Forklift and tow tractor maker Toyota Material Handling broke ground on a $100 million expansion project at its headquarters campus in Columbus, Indiana, the company said in a May 30 press release.
- The project will include the construction of a 295,000-square-foot building for electric forklift production and integrate new process technologies to expedite manufacturing.
- The Toyota U.S. subsidiary will hire 85 additional employees before production begins in June 2026.
Dive Insight:
Toyota Material Handling’s expansion is in response to the growing demand for electric forklifts.
“Electric forklifts make up 65% of the North American market and this trend towards electrification in the material handling industry will continue to grow,” Brett Wood, president and CEO of Toyota Material Handling North America, said in a statement.
The subsidiary launched its new electric pneumatic forklift line in September. The 48V and 80V models are built to withstand outdoor terrain and work in various weather conditions, meant for use in lumber yards, home centers and landscaping.
The demand for higher capacity electric forklifts in warehouses and manufacturing plants has grown as facilities look to run multiple shifts using the equipment without having to change batteries. Companies are also exploring other sustainable forklift options — Home Depot and Carrefour have been using hydrogen-powered forklifts for several years.
Toyota Material Handling’s sales are growing as it continues to lead the North America market. The manufacturer saw 626.4 billion yen ($4.1 billion) in Q2 2024 fiscal revenue, up from 567.6 yen ($3.64 billion) the year before, according to a Q2 2024 earnings report.
Once the new expansion is complete, Toyota’s Columbus, Indiana, footprint will cover nearly 1.8 million square feet.
Toyota Material Handling opened its headquarters in the city in 1990. With the newest project, the forklift maker has invested over $400 million toward more than 15 total expansions in 34 years.
The subsidiary has three other manufacturing plants in East Chicago, Indiana; Greene, New York; and Muscatine, Iowa, according to its website. Together, they produce an average of over 1,500 forklifts a week with different functions and load capacities.
