Ebbe Christensen, president of ReachMaster Inc., reacted to the news that Falcon Lifts A/S in Denmark has appointed USM ReRents as its new North American distributor and explained the sequence of events.
“We regret it was not possible to reach an agreement for a new contract with Falcon Lifts A/S that would have allowed ReachMaster to continue 20 years of successful representation in North America where we took the company from zero market presence to a market leading position,” Christensen said. “While the split might be a surprise to the market, it is the result of several factors. It started late 2018 where we saw an influx to the market of both many new manufacturers in the compact segment and a significant increase in track-based compact lifts that competed with the Falcon. The Falcon product is both state-of-the-art in design and performance, and as such a top shelf product from a purchase, operation and maintenance point of view. We openly discussed the market developments with the manufacturer, but sadly the parties were not able to agree on a future strategy, or realistic expectations relative to the changing market conditions.”
While many have suspected that Falcon Lifts A/S’ decision to change distribution in North America was a reaction to ReachMaster’s recent sale to Ruthmann, Christensen points out that the Danish manufacturer made its decision well before it was aware of any discussions regarding the sale of ReachMaster.
“Falcon Lifts A/S indeed served proper notice on January 2nd, fully in compliance with our contract,” Christensen said. “It actually proved to be good timing as it allowed for full transparency for all parties”
Christensen said that negotiations continued after that: “Of course you just don’t part ways after so many years without evaluating all of the options, including new opportunities associated with the new constellation of Ruthmann ReachMaster. However, Falcon Lifts A/S demanded new contractual conditions that we deemed unusual for an exclusivity agreement and notably not included in our current or past agreements. After 20 years representation we failed to see the need for these demands, at which point it became clear that it was better to part ways in an amicable manner and let someone else sign that check.”
Reflecting back on two decades’ work for the product, Christensen said: “We are very privileged to have had a great run for 20 years. I am very proud of what our ReachMaster team has achieved, not only bringing the concept and product successfully to the market, but more importantly keeping the momentum going for this Danish manufacturer. Starting with the pioneering days of Falck Schmidt, five ownership changes, eight executive management changes and five different company names later, the ReachMaster team still managed to keep the ReachMaster Falcon a highly respected product in North America. And most importantly had great fun doing so, thanks to a very loyal customer base, to whom we extend a big thank you. Just to be clear, Falcon Lifts A/S has lived up to all its contractual obligations, so we of course respect and support their management’s decision to try a new direction in North America.”
ReachMaster Inc. will continue to provide technical support and service to their current ReachMaster Falcon customer base as usual, including annual safety inspections and parts & repairs.
“The aerial lift business has always been a dynamic industry, and change creates new energy,” said Christiansen. “We are excited to continue our activities undeterred and we thank Falcon Lifts A/S for a great partnership for 20 years and wish them and their new partners well.”
