A PEST analysis is an acronym for a tool used to identify the macro (external) forces facing an organisation. As all businesses know, before any kind of strategy or tactical plan can be implemented, it is fundamental to conduct a situational analysis. Organisations that successfully monitor and respond to changes in the macro-environment are able to differentiate from the competition and create a competitive advantage.
Prior to switching our attention to Lithium Power, we began to see emerging trends from various aspects of the macro-environment. It became obvious, that fossil fuel powered forklift trucks & material handling equipment would not be welcomed in the not so distance future. Certainly, when we take into account the environmental gains made from the short pause in factory output & work travel as a result of the corona virus lockdown of 2020, with regular scenes on our TV screens & news reports of wildlife returning to previously abandoned areas. Fish begin to return to cleaner rivers, smog lifting from major cities all over the world & vast reduction of emissions globally made us realise, we needed to foster a change in the industry.
We started recognise that all the elements of PEST signified a change developing in society. Triggered primarily when the government turned against fossil fuels altogether. With the announcement of the petrol ban, net zero laws and the abolishment of red diesel on the horizon, It became apparently clear what we needed to do. We began to notice incremental changes in customer attitudes. Discussions began to evolve around sustainable investing & the emergence of environmentally conscious car makers like Tesla motivated us to seek out a new power source that would offer a more sustainable future for our business, our customers and the wider environment.
In this article, we share our PEST analysis since it encompasses the most relevant factors in general business. After conducting in-depth research, we knew Lithium was the ONLY power source that would help us deliever huge environmental benefits & thousands £’s cost savings for our clients at a price point within reach to all forklift users, large or small. Not only that, but it had to be a power source suitable for a site based vehicle with a ready-made infrastructure.
- Red Diesel Ban for Forklift Trucks & Material Handling Equipment: At the Budget 2020, the government announced that it will remove the entitlement to use red diesel from April 2022.
- UK Petrol & Diesel Ban: The ban is being introduced in 2035 - five years earlier than previously planned. The ban is also being expanded to hybrid cars and plug-in hybrids, which had not been included under the original proposals. This ban is set the trigger the move away from fossil fuel powered vehicles in all applications.
- UK First Major Economy to Implement Net Zero Target: This will require the UK to bring all greenhouse gas emissions to net zero by 2050, compared with the previous target of at least 80% reduction from 1990 levels.
- 2008-2009 Recession Triggered Cut Backs: Businesses explored all avenues to cost cut throughout the recession & continued this train of thought in the decade to follow, there are not many cost savings left to be had.
- Initial Cost of Lithium Power (Exclusively at Forktruck Solutions): We can provide Lithium powered forklift trucks & material handling equipment at a similar price to gas, diesel & lead acid alternatives. By using Lithium Power, you will save on fuel & maintenance, making the lifetime cost much lower than traditional counterparts.
- Global Outrage Over Climate Concerns: Most individuals, if not all, are acutely aware that we cannot continue to burn through our resources at the rate we have done over the last 50-70 years. Mass adoption of the internal combustion engine began post war Britain. In this short space of time, we have managed to melt ice caps, raise sea levels, increase global temperatures, wipe out thousands of animals and put several species on the verge of extinction. Awareness is encouraging the acceleration of a low carbon future.
- Sustainable Supply Chain Transparency: Sustainable sourcing is a fast developing requirement, driven by customers.
- Corporate Social Responsibility: 95% of the global population wants to see businesses do more than just make a profit. 89% of consumers want to engage with brands that put a premium on environmental concerns (Research gathered by FTS Surveys).
- Employees Demand Better Health & Safety: A crucial attribute of the work environment is well updated health and safety procedures. Lithium Power now becomes a consideration, reducing the exposure of noxious gases should be a fundamental business tick box to improve workplace air quality.
- Investment in Lithium: The very purpose of Tesla’s existence is to accelerate the world’s transition to sustainable energy. Telsa & other electric vehicle manufacturers are not only shaping new attitudes towards energy consumption, but demonstrating the capabilities of Lithium.
- Social media – Environmental Echo-Chambers & Filter Bubbles: Being environmentally conscious is becoming a part of users ideology. Reaffirmed by virtual cliques & echo chambers, people’s attitudes are consistently reaffirmed by messages of sustainability, which reinforces their beliefs & accelerates environmental concerns.
- Public Concern About The Environment Has Soared To Record Levels In The UK: Now regarded one of the more pressing issue in global history (BBC,2020).
- Global Impact: Worldwide carbon emissions have quadrupled since 1950.
This PEST analysis governed our decision to exclusively offer Lithium Powered forklift trucks & material handling equipment. It is not our personal opinion that gas, diesel & lead-acid is on the verge of extinction, it is a collective evaluation of factors determined through a comprehensive exploration of the macro - environment. The world is telling us, it’s time to change.
Please get in touch if you would like more information on how switching to Lithium forklift trucks & material handling equipment can save you thousands on fuel, maintenance & reduce your carbon footprint.
Call: 0845 555 7770