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LiftTruck celebrates 35 years

As LiftTruck celebrates 35 years, Kara Sotolotto says, its focus is on continuing to grow its many business operations and building on an already-solid foundation.

Kara Sotolotto says she essentially grew up in her family’s business, LiftTruck Parts & Service Inc. in West Springfield.

She remembers doing a little bit of everything for this company — founded by her father, Mario C. Sotolotto, which specializes in forklift and lift-truck sales, maintenance, parts, rentals, and more — but especially the vast amounts of paperwork that have long since been replaced by computer files. This included handling work orders, parts inventory (something that is still done by hand), calling customers, and much more. It seemed there was something new every day, and, collectively, those various assignments have prepared her for her current and somewhat new role, as the company’s vice president, a title she shares with her brother, Mario A. Sotolotto.

She was still waiting for her new business cards when she talked with BusinessWest, but she has already eased into the role, which will see her work with other family members (and there are many of them) and other employees to chart a course for future growth for this venture, which this year celebrates 35 years in business.

It is marking this milestone in a mostly quiet fashion — but also with charitable donations each quarter, including one recently to Baystate Children’s Hospital — and by essentially doing what it has been doing from the start, Kara Sotolotto said — taking care of the many different needs of its clients, mostly manufacturers and distributors located across the Bay State, but also in Connecticut and Rhode Island.

Over the years, the company has expanded well beyond its West Springfield roots, opening an office in Brockton to better serve customers in the eastern part of the state, including Cape Cod and the islands, as well as Rhode Island. Looking forward, she said the company is looking at possible additional expansion in the Worcester area, with a location to house what she called a ‘green division,’ dedicated to sales and service of battery-powered BYD material-handling equipment (more on that later).

Overall, though, the business plan calls for shifting more of the day-to-day responsibilities of managing the company to the second generation, Sotolotto explained, as well as simply building on the solid foundation created over the past 35 years, one that has enabled the company to thrive in a sector with many competitors.

Indeed, when asked how LiftTruck manages to stand out in such a crowded field, she said simply, “our service and our mechanics; these are mechanics that everyone likes and trusts, and they really know their stuff.

“He started from the ground up with a few mechanics, who are actually still with us today, and one person in the office.”

“Also, our lines,” she went on, adding that, while many competitors will sell one or a few brands, LiftTruck handles many labels and many options when it comes to how machines are powered — from propane to electric.

It is this ability to provide clients with choices, but also reliable, quality service, that has both enabled the company to thrive for the past 35 years and positioned it for continued success for the next 35.

 

Getting a Lift

As she offered BusinessWest a tour of the LiftTruck facilities and posed for a few pictures, Sotolotto pointed to a Clark forklift — vintage 1948, by her estimate — that was at the shop for some maintenance. It’s not really used anymore, and she believes it is one of the items on display at a small museum at Barnes Airport in Westfield.

While it is not in active service, the company services many pieces of equipment dating back to the ’60s and even the ’50s that still are, she said, adding that fork trucks, depending on how much they are used, can run for decades, and most clients are determined to get their money’s worth out of their machines.

But there are challenges to servicing such long-lasting pieces of equipment.

“These forklifts were built like tanks because they were used in the military,” she explained, referring to the older Clark machines. “The trouble is, it comes to a point where you can’t find parts for them; there are times when we can have people fabricate the parts for them, but once you get to certain big parts, like cylinders, you have to give in.”

Helping companies keep their machines running as long and as efficiently as possible has become one of the many trademarks of this company, which was started by the elder Mario Sotolotto in 1987.

As Kara explained, her father worked for Northeast Clarklift, joining his father-in-law there, and starting in the parts department and moving up the ladder. He eventually decided to take all that he had learned and start his own venture, one that would focus on all aspects of this competitive business — including sales of new and used machines, service, parts, forklift training, rentals, and more.

“He started from the ground up with a few mechanics, who are actually still with us today, and one person in the office,” she said, adding that the company has enjoyed steady, consistent growth over the years.

This is a family business, she added with conviction in her voice, noting that there are many members of her family who are involved, including her father, the company’s president, who, she said, “likes to keep involved in all aspects of the business,” as well as his uncle, Sales Manager Anthony Sotolotto.

There’s also her brother, Mario, who works mostly out the Brockton facility, and focuses on the sales and everyday operations sides of the business, while Kara is focused more on the back end of the operation — accounting, receiving equipment, managing the West Springfield facility, and talking with the press.

As noted, this is a multi-faceted business, with several components and revenue streams.

On the sales side, the company handles a number of manufacturers, including Clark, Komatsu, Doosan, Heli, and the most recent addition, BYD, which offers machines that run on iron phosphate batteries, Kara said, noting that buyers have a number of options these days in terms of both brands and how machines are powered.

Indeed, while gas-, propane-, and diesel-powered vehicles are still popular, this sector, like the automotive industry, is moving aggressively toward more electric vehicles.

“A lot of people are switching over to electric forklifts,” she explained. “It’s more economical for them, and it’s better for the environment; they’re becoming more and more popular.”

Looking ahead, Sotolotto said the company is strongly considering creation of that aforementioned ‘green division,’ one that will focus on the BYD line and likely be based in the central part of the state so it can effectively serve all corners of the Commonwealth.

“Having a facility to at least store all of our electric lifts and maybe have a few mechanics operate out of there would be great,” she told BusinessWest. “This is definitely something we’ve been talking about and moving toward; it’s a logical next step.”

The sales side of the business has been steady, she added, and it received a somewhat unexpected boost during COVID, when rentals were harder to come by (just as rental cars were) and many customers decided to buy instead — if they could find machines to buy.

And overall sales remain steady as customers seek to replace machines that hit a certain number of hours.

Meanwhile, the machine-rental side of the business remains solid as well, she said, noting that businesses will rent equipment for a day, a few weeks, a quarter, or for much longer stretches depending on need. To mark its 35th anniversary, the company is donating 10% of its rental revenue to various charities, including Baystate Children’s Hospital, each quarter.

The service side of the operation is another key contributor to the company’s overall success, Sotolotto said, noting that clients need their machines to operate successfully, and LiftTruck’s ability to provide reliable service has been another of its hallmarks.

 

Lock and Load

These various parts contribute to the whole, she said, adding that LiftTruck has much to celebrate as it marks its milestone anniversary this year.

Mostly, it is celebrating what has become a family, or a bigger family, to be more precise, one that includes several people related to one another, but also others who have been part of this operation for years — in many cases, 35 years.

Together, they have made this venture an uplifting success story — in every sense of that phrase.

Law

Giving Them the Business

By Gina M. Barry, Esq.

 

More often than not, a family business is doomed by the failure of the owners to plan for its continuation. Currently, only 30% of family-run companies succeed into the second generation, and only 15% percent survive into the third generation. Fortunately, with proper planning, most business owners can ensure the continued operation of their business should they become incapacitated or pass away.

Contemplating one’s mortality is not a pleasant activity. Most believe they have plenty of time to plan. Some business owners identify so closely with their business that they simply cannot comprehend the idea of their business being operated by anyone other than themselves. However, when a business owner becomes incapacitated or passes away without a plan in place, the business always falters and often fails.

Gina Barry

Gina Barry

“Currently, only 30% of family-run companies succeed into the second generation, and only 15% percent survive into the third generation.”

The general recommended time to plan for business succession is between the ages of 55 and 65. This timeframe is recommended because most successful business-succession plans include several steps carried out over time. Some succession consultants recommend a three- to five-year plan, while others advocate a five- to 10-year plan. Adequate planning time allows a business owner to test potential successors in different roles and to evaluate their maturity, commitment, business acumen, and leadership abilities. Further, once a successor is chosen, adequate lead time allows the successor to gain expertise so that the business does not falter when the former business owner leaves the business.

More often than not, the head of a family-owned operation chooses a child as a successor. Commonly, more than one child is competent to step into the parent’s shoes, which makes the selection process even more difficult. When a family member is not available, a key employee often fits the bill. Typically, these employees have already displayed the abilities necessary for operating the business.

The business owner should begin by determining three things: when they want to step away from the business, for how long they want to remain active in the company thereafter, and in what capacity they wish to remain involved. Next, the business owner needs to discuss their ideas about the future with their family, senior management team, and key employees. Thereafter, the business owner should begin working with the successor to revise their business plan, thereby allowing them to include any future new products, plans for expansion, growth, or new investment, as well as a candid assessment of the company’s current environment and competitive positioning.

The business owner will also want to develop a financial strategy for actually stepping fully away from the business. A financial strategy, which is perhaps the most significant activity associated with succession planning, protects the company, the family, and the employees against a monetary burden that could doom the entire process to failure. For example, if a business owner intends to leave the business to their children, they must consider any estate taxes their estate may face upon their passing that may require the liquidation of the business, despite best intentions.

It is also critical to obtain an accurate valuation of the business regardless of who will take over or inherit the enterprise. Such a valuation encompasses tangible assets, such as real estate, buildings, machinery, and equipment, as well as intangible assets, such as employee loyalty, manufacturing processes, customer base, business reputation, patents on products, and new technologies. Employing a professional valuation company is recommended, as there are many different factors that affect the value of a business.

Once the business has been valued, it is necessary to determine the method of transferring the business. Some options for transferring a business include gifting, the use of a trust, buy-sell agreements, and life-insurance-funded plans. The choice of successor will strongly influence this decision. Surely, a plan that gives the business to children or family members would differ greatly from a plan that requires a third party to purchase the business owner’s interest. When transferring to a child or related party, the business owner may gift some of the company’s value, whereas, when transferring to an independent third party, the business owner would most likely want to be paid the full fair market value of the business.

As various plans may be established and the specifics of the business must be considered, each different plan must be reviewed on its own merits. The process of choosing a succession plan involves numerous factors, and there are many pitfalls along the way. Thus, it is best to consult with the necessary professionals, such as attorneys, financial advisors, and accountants, to assist with the transition and to allow as much time as possible to plan and make the transition. By doing so, business owners can ensure the vitality of their business for many years to come.

 

Gina M. Barry is a partner with the law firm of Bacon Wilson, P.C. She is a member of the National Academy of Elder Law Attorneys, the Estate Planning Council, and the Western Massachusetts Elder Care Professionals Assoc., and concentrates her practice in the areas of estate and asset-protection planning, probate and trust administration, guardianships, conservatorships, and residential real estate; (413) 781-0560; [email protected]

Company Milestones Daily News Real Estate The Business of Aging

NORTHAMPTON Richard ‘Rich’ Cooper, whose family built and nurtured the Cooper’s Corner and State Street Fruit Store markets, announced today that he is selling the businesses to a dedicated, longtime employee who is committed to honoring the legacy.

A Florence resident, Cooper, 67, will retire this fall and sell the markets to Michael Natale, 31, a native of Florence who now lives in Easthampton. Natale has worked at State Street and Cooper’s since 2006 in various roles, steadily rising into management and most recently serving as general manager. His father, five siblings and a niece and a nephew have also worked at the popular, hometown convenience stores.

“Mike is a clone of me. He sees what I see. He knows what customer service really means, and he understands the importance of community,” said Cooper. “Mike has a great way with the employees and customers. He is enthusiastic, dedicated and has long-term commitment.”

Cooper will work part-time alongside Natale for a few months after the sale as Natale takes over full ownership.

“Mike is the ideal buyer. This choice feels right to me,” Cooper added. “It meets the obligation I feel toward employees and to the community to keep the stores locally owned and locally committed, the way we’ve been from day one. I didn’t want to sell to a chain or the highest bidder or someone from outside the community.”

Between the two stores, there are 104 employees, most of whom live locally and work part time; roughly 40 work full time.