Toyota Material Handling and Raymond Corporation to Merge Operations

In a significant development in the logistics industry, Toyota Material Handling is set to merge with Raymond Corporation, forming a new entity known as Toyota Material Handling North America (TMHNA). The merger will officially take effect on April 1, 2025, 24 years after Toyota's acquisition of Raymond in 2001.

Background and Leadership Changes

The newly formed TMHNA will be led by Brett Wood, who will serve as the President and CEO. Brett Wood, who has been at the forefront of Toyota Material Handling's operations, is expected to bring his experience to the new organization. The merger also comes with a change in leadership positions, as Bill Finerty, a notable figure in the industry, will retire at the end of March. Following this, Michael Field will assume the role of Chief Operating Officer (COO) of TMHNA.

Both companies have emphasized that no layoffs are expected from this integration. This decision aligns with their commitment to maintaining the brand identities of both Toyota Material Handling and Raymond Corporation while leveraging their combined strengths to meet customer needs and drive innovation.

Addressing Industry Challenges

The logistics industry is currently facing numerous challenges, including a human capital crisis and labor shortages, which are impacting operations across the board. As the demand for faster fulfillment and real-time visibility in logistics increases, companies are under pressure to improve warehouse efficiency. This merger is seen as a strategic move to tackle these challenges by pooling resources and expertise.

Additionally, there is a growing trend towards warehouse automation to enhance operational efficiency. This trend is partly driven by the anticipation that cyberattacks on logistics operations will double by 2026, necessitating robust and secure systems. The merger is expected to enable TMHNA to capitalize on these automation trends and enhance its resilience against potential cyber threats.

Market Position and Future Plans

Toyota Material Handling and Raymond Corporation together account for one in three forklifts sold, highlighting their significant presence in the market. The new entity aims to maintain this market position by continuing to focus on innovation and customer satisfaction.

As part of its future plans, TMHNA is set to open a new factory by 2026. The facility, measuring 295,000 square feet, will likely play a crucial role in expanding the company's manufacturing capabilities and meeting the growing demand for efficient material handling solutions.

Commitment to Innovation and Customer Needs

The merger aims to bring together the strengths of both companies to better serve their customers. There is a strong emphasis on innovation, which has been a cornerstone of both Toyota Material Handling and Raymond Corporation's operations. The integration process will focus on ensuring that the new entity can deliver enhanced solutions while maintaining the quality and reliability that both brands are known for.

"Our goal is to leverage the combined strengths of Toyota Material Handling and Raymond Corporation to address the evolving needs of our customers and continue to innovate in the material handling industry," said Brett Wood, President & CEO of TMHNA.

As the logistics industry continues to evolve with new challenges and technological advancements, the merger of Toyota Material Handling and Raymond Corporation marks a significant step towards adapting to these changes and sustaining growth in a competitive market.