BorgWarner's Chicago manufacturing plant was drowning in forklift traffic.
Thirty-six forklifts competed for 4-foot-wide aisles in an 80-year-old facility with no room to expand. Production lines ran low on materials while drivers sat in traffic jams between workstations, creating delays, safety risks, and frustrated workers.
The solution wasn't more space or automation.
BorgWarner replaced half their forklift fleet with six tugger trains and wheeled "daughter carts" that workers could push by hand. The result: they cut their forklift fleet from 36 units to 18 while maintaining the same throughput and dramatically improving safety.
This article breaks down their assessment process, the unexpected role of manual handling, and why a two-week demo period revealed applications they never planned for. Plus the complete playbook other manufacturers can use to solve similar congestion problems without facility expansion.
What’s Inside
The Scene → When 36 forklifts become a traffic problem
The Assessment → Mapping movement patterns and production needs
The Fix → Tugger trains with a manual handling twist
The Implementation → Two-week demo proves the concept
The Impact → Cutting forklift fleet in half without losing capacity
The Playbook → Replacing forklift traffic with tugger systems
Full Q&A → With Alex Stone at K.Hartwall
Space wasn't the issue. Traffic was.
BorgWarner's Chicago manufacturing facility had been operating for decades in a footprint that worked well for traditional manufacturing. But as production speeds increased and demand grew, the same narrow aisles that once accommodated slower operations had become bottlenecks.
The facility ran 36 forklifts across three shifts, moving raw materials to production lines and hauling away waste. With aisles too narrow for two forklifts to pass, drivers constantly waited for clearance. A simple delivery could turn into a 10-minute delay as equipment queued up in 4-foot-wide passages.
When you have 36 or so forklifts running around a production facility with very narrow aisles, they weren't able to run two down the same lane at the same time. Which means that if someone was coming down this aisle, a guy would have to wait at the end of the aisle for them to clear.
The congestion created a cascade of problems.
Production lines would run low on materials and call for immediate delivery. Forklift drivers would drop current tasks to respond to urgent requests. Empty containers would pile up at workstations because drivers were tied up elsewhere.
Meanwhile, safety concerns mounted. With 36 pieces of heavy equipment constantly moving through tight spaces, the risk of incidents was climbing. BorgWarner needed a solution that could maintain material flow while reducing both congestion and safety exposure.
Mapping movement patterns and production needs
BorgWarner's team conducted a comprehensive analysis of their material handling operations.
They tracked how raw materials entered the facility, measured travel distances, and studied storage patterns. The goal was to understand exactly how materials moved and where inefficiencies were concentrated.
They discovered that their forklift fleet was being pulled in multiple directions simultaneously. Drivers were delivering raw materials to production lines, moving finished goods to storage, clearing waste containers, and responding to ad-hoc requests to move pallets short distances.
The analysis revealed several key patterns:
Most material movements followed predictable routes between storage and production areas
Production lines consumed materials at measurable, consistent rates
Waste removal happened reactively rather than systematically
Many forklift calls were for simple repositioning tasks that didn't require lifting capability
They took a look at how the raw materials come in first. And then once they receive those raw materials, what are the distances that these are traveling and how are they currently storing these raw materials and what sort of movements are involved in that?
BorgWarner realized they needed to separate two types of work:
Tasks that required lifting capability, and
Tasks that were simply about moving materials horizontally through the facility.
The latter represented the majority of their forklift usage but didn't actually need the lifting function.
Tugger trains with a manual handling twist
BorgWarner found K.Hartwall's Liftliner system at the 2023 ProMat show. The solution combined two components: electric tugger trains for bulk material movement and "daughter carts" that enabled manual handling of palletized loads.
The Liftliner could pull multiple loaded carts simultaneously, replacing several individual forklift trips with one efficient route. But the daughter carts were the unexpected game-changer.
These wheeled platforms allowed workers to manually move 2,000-pound loads without mechanical assistance.
The beauty of what we were able to then offer them was kind of a twofold solution. One is a more efficient flow of material using a tugger train system. But then, two, they were able to put a lot of these materials on daughter carts, and that allowed them to also reduce more forklift movements in their warehouse.
BorgWarner implemented six Liftliner trains, each dedicated to specific facility zones. They designed routes that avoided conflicts and established turnaround points in areas with sufficient clearance. The system was configured so trains could deliver materials and collect waste on the same route, eliminating separate trips.
The daughter carts integrated seamlessly with existing pallet-based workflows.
Forklifts would load pallets onto the wheeled platforms during receiving. From there, workers could manually move materials to staging areas, directly to production lines, or onto Liftliner trains for longer-distance transport.
When materials reached their destination, the removable handles on daughter carts allowed workers to position loads precisely without waiting for forklift assistance. Empty containers could be moved out of the way immediately, and full ones positioned exactly where needed.
Two-week demo proves the concept
K.Hartwall brought equipment directly to BorgWarner's facility for a demonstration period. The hands-on approach allowed production workers to test the system in their actual environment with real materials and workflows.
The demo served multiple purposes: it validated that the equipment could navigate BorgWarner's tight spaces, confirmed that workers could operate it safely, and revealed additional applications the management team hadn't considered.
We typically run demos about two weeks to maybe a month at a time, but you will know within those first two weeks if it's going to be a viable solution.
The implementation timeline was surprisingly fast:
Weeks 1-2: On-site equipment demo with production workers testing real workflows. Training took 10 minutes for tugger operation, zero for daughter carts (they work like manual pallet jacks).
Week 3: Decision made based on worker feedback and measured performance in tight spaces.
Weeks 4-8: Equipment delivery and immediate deployment. Built-in safety features prevented operational errors — if someone tried to drive with a cart in loading position, the system locked out and displayed an error.
Weeks 9-12: Workers discovered new applications beyond the original scope, prompting orders for additional daughter carts mid-implementation.
What this means for your facility: Expect minimal training requirements (no certification needed unlike forklifts), immediate productivity from day one, and plan budget for 20-30% more equipment than initially scoped as workers find new applications. The equipment pays for itself through reduced forklift lease costs while workers are still learning optimal workflows.
The transition was smooth enough that production never stopped, and BorgWarner's workers gained autonomy over material handling that they hadn't experienced with the forklift-dependent system.
Cutting forklift fleet in half without losing capacity
The results exceeded expectations.
BorgWarner reduced their forklift fleet from 36 units to 18 while maintaining the same production throughput. The remaining forklifts focused on tasks that actually required lifting capability: loading/unloading trucks, moving materials to high-bay storage, and handling finished goods.
Equipment and cost changes:
50% forklift reduction: Cut fleet from 36 to 18 units while maintaining throughput
Payback under two years: Driven by reduced lease, maintenance, and service costs
Remaining forklifts optimized: Focused exclusively on actual lifting tasks rather than horizontal transport
Operational improvements:
Predictable traffic patterns: Liftliner trains established scheduled routes, eliminating chaotic forklift movements
Worker autonomy: Production teams gained control over immediate work areas without depending on forklift availability
Safety enhancement: Clear traffic zones and fewer heavy equipment conflicts reduced incident risk
Workflow changes:
Immediate material positioning: Workers could move pallets 10 feet instantly using daughter carts instead of waiting for forklift assistance
Space efficiency: Ten daughter carts stack in one pallet footprint when not in use, preventing facility clutter
Combined delivery and waste collection: Single routes handled both material delivery and empty container removal
We were able to cut their forklift fleet by 50%. So as a CFO or even a general manager, taking a look at his OPEX at the end of the year and seeing what he was normally spending on leasing and renting for forklifts throughout that year, plus PMs, service and all the other things that go along with that, he's able to reduce that cost by 50% right there.
The transformation gave BorgWarner's facility the material flow capacity they needed without expanding their footprint or adding automation complexity. Worker satisfaction increased as production teams gained autonomy over their material handling needs, while the facility established clear zones for different types of traffic that made movement patterns predictable for everyone.
How you can replicate their success
Most facilities think their forklift congestion is a space problem. It's actually a workflow problem. BorgWarner's Chicago plant ran 36 forklifts in 4-foot aisles where two couldn't pass - creating constant traffic jams and safety risks.
Their solution cut the fleet in half while maintaining throughput by separating lifting tasks from transport tasks.
1. Track forklift usage by task category, not total hours
BorgWarner didn't guess where their bottlenecks were. They spent weeks cataloging what each of their 36 forklifts actually did: raw material delivery, finished goods handling, waste removal, and simple pallet repositioning.
What to do:
Log every forklift task for 2-3 weeks in four categories:
Truck loading/unloading
High-bay storage moves
Production line delivery
Short-distance repositioning
Measure travel distances and wait times for each
Calculate how much time gets spent on moves under 100 feet that don't actually need lifting capability
Why it works: BorgWarner discovered that most forklift hours went to horizontal transport, not lifting. Once they saw the split between lifting tasks and moving tasks, they could optimize each separately. The repositioning and short deliveries consumed the most operator time but created the least value.
2. Test manual handling with your actual loads before buying anything
The daughter carts were BorgWarner's breakthrough - workers could suddenly push 2,000-pound pallets by hand through their facility. But they didn't know this was possible until K.Hartwall brought equipment for hands-on testing.
What to do:
Identify your most common pallet weights and typical travel distances
Test wheeled platforms with industrial casters using your actual products in your actual aisles
Have different workers try moving loaded carts to confirm it's ergonomically feasible across your team
Map which staging areas have sufficient clearance for manual cart movement.
Why it works: Proper caster design means one person can move a ton of material 100+ feet without strain. This eliminates forklift dependency for positioning tasks and short moves. BorgWarner's workers gained immediate control over their work areas instead of waiting for forklift availability.
When to test: Before committing to tugger systems. Manual handling capability determines how much forklift reduction you can actually achieve.
3. Design six dedicated routes, not one flexible system
BorgWarner created specific zones rather than trying to serve the entire facility with shared tugger trains. Each Liftliner served defined production areas with predetermined turnaround points and no route conflicts.
What to do:
Map your facility into zones based on material consumption patterns
Design linear routes that deliver materials and collect waste in the same trip
Identify 8-foot diameter areas at route endpoints for safe turnarounds
Assign specific trains to specific zones permanently rather than sharing equipment across the facility
Why it works: Dedicated routes create predictable traffic patterns and eliminate tugger conflicts in narrow aisles. Workers know exactly when to expect deliveries and can plan their work accordingly. BorgWarner's system avoided the congestion that created their original forklift problem.
Tradeoff: Less flexibility than shared systems, but much higher reliability and safety. Predictability beats optimization when you're operating in tight spaces.
4. Run a two-week demo with your production workers
BorgWarner didn't decide based on spec sheets. K.Hartwall brought Liftliner trains and daughter carts on-site for operational testing with real materials, real workflows, and actual production workers - not just managers.
What to do:
Require vendors to demonstrate in your facility with your actual products
Have production workers operate the equipment in your tightest spaces and most challenging workflows
Document specific integration issues and unexpected applications
Test loading, unloading, and maneuvering in areas where you'll actually use the equipment
Why it works: Your workers will spot problems and opportunities that management misses. BorgWarner's demo revealed waste collection applications that weren't in the original scope, and they ordered additional daughter carts mid-implementation as workers found new uses.
5. Target high-frequency, predictable routes first
BorgWarner started with production delivery and waste collection - repetitive routes between known points that didn't require complex decision-making or specialized skills.
What to do:
Identify your most frequent material moves that follow consistent patterns between the same pickup and delivery points
Target routes where you can combine multiple stops into single trips
Avoid workflows requiring real-time problem-solving initially
Choose areas where workers can master new equipment quickly.
Why it works: High-frequency routes show immediate impact and build confidence for more complex applications. Success creates momentum. BorgWarner's predictable delivery patterns were perfect for tugger trains, while their variable emergency calls still needed forklift flexibility.
6. Keep forklifts for actual lifting work
BorgWarner cut from 36 forklifts to 18 but kept the remaining units focused on truck loading, high-bay storage, and finished goods - tasks that actually required lifting capability above floor level.
What to do:
Reserve forklifts exclusively for truck loading/unloading, high-bay storage access, and precision placement tasks
Redesign forklift operator roles around skilled work that requires certification and training
Use tugger systems and daughter carts for all horizontal transport and floor-level staging
Why it works: Forklifts become more productive when they're not pulled away for simple transport tasks. Operators can focus on work that requires their specialized training instead of spending time on moves that any worker can handle manually.
7. Budget for 30% more manual handling equipment
BorgWarner ordered additional daughter carts mid-implementation as workers discovered applications in receiving and staging areas that the original analysis missed.
What to do:
Plan for 20-30% more daughter carts than your initial analysis suggests
Design tugger routes with capacity for additional stops
Train workers to identify new applications as they use the equipment daily
Plan storage areas that accommodate equipment growth.
Why it works: Success creates demand. Once workers experience the autonomy of manual material handling, they find applications you didn't anticipate. BorgWarner's stackable cart design prevented clutter - ten carts stack in one pallet footprint when not in use.
Timeline: Plan expansion after initial implementation proves successful but before you've finalized equipment quantities. The first six months reveal the true scope of applications.
Q&A With Alex Stone
Here's my full conversation with Alex Stone from K.Hartwall, covering how BorgWarner cut their forklift fleet in half while solving congestion and safety issues in their Chicago facility.
We dive into their assessment process, the demo period, and the tactical implementation that delivered ROI in under two years - plus the hidden cost savings most facilities don't realize until they see the system in action.
Table of Contents:
This conversation has been edited for length and clarity.
1. The Problem
What problem was BorgWarner trying to solve when they first reached out to you?
Alex: BorgWarner had three major challenges. First, they're in Chicago where facilities have been established for 80-plus years with no room for expansion. Second, they had 36 forklifts running in very narrow aisles where only one forklift could pass at a time. Third, every time production lines got low on materials, they'd call for a forklift driver, creating constant delays.
How did the facility layout create these bottlenecks?
Alex: Most facilities maximize space for production and leave movement as an afterthought. They set up machines first, then worry about moving products second. You end up with four-foot aisles between machines, which creates massive traffic jams.
2. The Breaking Point
Had they tried solving this problem before, or was there something specific that pushed them to act now?
Alex: Congestion and safety concerns pushed them over the edge. With 36 forklifts moving around, you need highly trained drivers and strict safety protocols. Most manufacturing incidents come from forklifts and pallets stacked in aisles. They wanted to reduce forklift dependency while keeping production lines running.
What made safety such a priority for them?
Alex: In production, you've always got to keep safety at the forefront. Most manufacturing facilities you walk into, you'll see signs on the wall showing days since the last incident. Unfortunately, the majority of incidents in manufacturing come from two places: forklifts and pallets that get stacked up in aisles where people trip on them.
They decided they wanted to see if there was another solution. Is there another way to deliver all this product, keep production lines running, and maybe pull away from forklifts? They understood they'd still need forklifts ultimately for lifting and moving some things, but rather than doing back-and-forth movements, keep it to the up-and-down movements as much as possible.
3. The Assessment
Walk me through their planning process. How did they go from "we have a problem" to actually implementing your solution?
Alex: They did a comprehensive analysis of material flow - how raw materials come in, storage distances, and movement patterns. They conducted distance studies and production line analysis to determine each line's material needs per shift. This analysis led them to implement six Liftliner trains.
What did they discover about waste and scrap handling?
Alex: They realized forklifts weren't just delivering raw materials - they were also collecting manufacturing waste from production areas. So they dedicated specific trains to different areas, with one train delivering the equivalent of six forklifts in one run.
4. The Solution
How does the system actually work? I can see how forklifts handle heavy materials, but how do they move material in your system?
Alex: America is still pallet-based, so you can't eliminate forklifts entirely. But BorgWarner reduced their fleet by 50%. They still use forklifts to offload trucks, but instead of taking pallets straight to racking, they put immediate production items onto daughter carts. The forklift just lifts the pallet 10-11 inches onto the cart.
What makes the daughter carts so effective?
Alex: The daughter cart is basically a pallet on wheels with a removable handle. We focused on ergonomics - the casters are strong but move seamlessly. Someone weighing 160-170 pounds can push 2,000 pounds 50-100 yards without breaking a sweat. This gives employees control in their workstation areas without depending on forklifts.
5. The Demo
What was the timeline from first contact to full implementation?
Alex: BorgWarner discovered us at the ProMat show in 2023. From that point they set up initial meetings, had discussions to find out if this was going to be a good fit, then got into running a demo in fourth quarter of 2023.
We typically run demos about two weeks to maybe a month at a time, but you'll know within those first two weeks if it's going to be a viable solution.
Why do you bring equipment on-site for demos?
Alex: We bring actual product into their facility. You can show videos all day, but until employees who'll use it daily put it in their hands, you don't know if it'll work. The people in manufacturing can see solutions 10 times faster than higher-level managers.
How much training was required?
Alex: That's the beauty of the Liftliner - no certification required and minimal training. We trained three employees in one day, taking about 10 minutes total. It's just sequencing: tap the button, grab bars pinch the daughter cart, green light means go. Built-in safety features prevent operation if something's wrong.
6. The Results
What kind of savings or ROI did BorgWarner see?
Alex: First, they cut their forklift fleet by 50%. That's immediate OPEX savings on leasing, renting, maintenance, and service. Typically, ROI with Liftliners is about two years or less.
What happened after they took delivery?
Alex: They took possession in Q1 2024, immediately implemented the system, then ordered a second batch of daughter carts because they realized they wanted more.
7. The Hidden Benefits
What were some cost savings they didn't expect?
Alex: The hidden savings most people don't realize - times when you need a forklift driver to move a pallet 10 feet because it's blocking a door, or shifting stacked loads so someone can walk through. With daughter carts, loading dock people have that power. They can grab a removable handle and shift things around without waiting for a forklift driver.
Any other benefits they discovered?
Alex: Once other production areas saw the daughter carts, it spread like wildfire. Everyone wanted them for their stations. We also focus on stackability - you can stack daughter carts 10 high when not in use, taking up just one pallet's footprint.
8. Implementation Advice
For other companies considering similar solutions, what are the key indicators that a system like yours might be a good fit?
Alex: Three main indicators: tight spaces, distance problems, and workforce challenges. In rural areas, if you lose a good forklift driver to a bigger company, maybe the Liftliner helps you go from three drivers to two.
Any resources available for companies evaluating this type of solution?
Alex: We've built an ROI tool that looks at distances, forklift movements, and production setup. It might recommend something like "You'd see ROI in 1.8 years with a two-tugger training system." The key is understanding that people see the tugger train system and think about delivering six pallets at once, but then they realize the real value is in the daughter carts - that's the hidden cost savings most don't realize until they see it in action.
