Q&A: Why PALFINGER is investing in North America and its service business

Executives explain how its $15M U.S. parts hub supports service growth, fleet management predictive maintenance and combating supply chain and tariff challenges
Oct. 1, 2025
6 min read

Key Highlights

  • The new parts distribution facility enables faster shipping and better inventory management for PALFINGER in North America, in order to double revenue in the coming years.
  • Predictive maintenance using sensor technology and AI is a key focus, providing real-time data and maintenance insights for large fleet operators and machine design.
  • The company is actively managing supply chain and tariff challenges by localizing components, diversifying sourcing, and leveraging its global manufacturing footprint to ensure stability.

Before the grand opening for PALFINGER’s new parts and distribution center for North America in Huntley, Illinois, PALFINGER CEO Andreas Klauser and Ismael Daneluz, vice president of sales & service at PALFINGER, sat down with the media to discuss how the new facility and its service and maintenance business will drive growth North America, the role of predictive maintenance for fleet management, and dealing with supply chain and tariff challenges.

Prior to the new facility, the PALFINGER footprint of parts was spread all across the country, and it shipped parts to dealers from four different locations. “Now we centralize. We optimize all the processing, the systems we have, everything on our ERP/SAP,” Daneluz said. It’s easier for dealers and customers to see availability and get pricing, and some parts can be shipped and delivered within 24 hours. “This was not possible before, running through four different ERPs,” Daneluz said. 

“We are really committed to this region and very supported by Andreas and the whole board. Investing in North America is a key backbone for helping it to grow,” Daneluz said.

Service and maintenance business will drive revenue

The new $15 million U.S. parts distribution center will drive additional revenue on the service and maintenance side of the business in North America. 

“If we want to be successful in the market, our service and our parts is a key point for uptime. Equipment cannot stop working. And that’s a big step and a big investment,” Daneluz said.

Premium service is as important to PALFINGER, as premium products and solutions. The company’s dealer network is a big part of that premium service. It has 130 authorized dealers that support more than 420 service locations across North America. “This means as well further training our dealers, so the entire dealer network will become more professional,” Klauser said. 

Service can also help balance lulls in equipment sales. “You can still do a big portion out of the parts and service business, and we are ready to do so,” he said. PALFINGER wants to serve its customers long after the initial sale, and Klauser said, its customers like the strength of a global dealer network, combined with localized service support.

Equipment uptime for its customers is even more critical in North America, he said, where total cost of ownership (TCO) uptime is a clear KPI that guides customers’ product decisions.

“If you are a premium product, people expect premium service and premium treatment, and that’s why we are here,” Klauser said.

The new 177,000-square-foot parts distribution center for North America has a central U.S. location with easy access to air and ground cargo transportation via two airports and major cross-county interstates.

The role of predictive maintenance in fleet management

Predictive maintenance for PALFINGER equipment and machines will also be a priority for moving forward, Klauser said. The company uses sensor technology on, for instance, track mounted forklifts and knuckle boom cranes. This work is largely being done by PALFINGER overseas, but the skills and technology will find a home in North America too, Klauser adds.

PdM for PALFINGER is also supported by artificial intelligence (AI) to improve data analytics, Klauser said, while being careful not to overcomplicate processes for fleet operators and dealers. The company wants to strike a delicate balance between user friendly equipment and advanced technology.

“Our products have sensors now, and kinematics is a topic which is growing,” Daneluz said. PALFINGER is using and studying its machine data to make predictive analyses about machine failure, which will only grow in the future. 

In 2025, PALFINGER released Connected, a central platform that includes telematics module and data transmission capabilities, which is standard on a wide range of machines and provides basic access to machine data, including customized dashboards, maintenance plans, and detailed operational information. Connected plus+ is the manufacturer’s subscription service that enables real-time data transfer.

“So many of our larger accounts that have big fleets, they need it,” Daneluz said. “This is already a must if you want to win the market.”

PALFINGER has also upgraded its virtual reality training program. “We are trying to make it easier for our dealers and for the customers to experience PALFINGER, and also to train in a safe environment and understand how the machine works and performs,” Daneluz said.

How PALFINGER manages supply chain and tariff challenges

With ongoing supply chain challenges and tariff complications, localizing components as much as possible becomes even more essential, Klauser said. While the U.S. facility also works largely with companies in Canada and Mexico, which, so far, have no current tariffs, the supply chain takes constant attention. The changing global trade landscape means additional focus on PALFINGER’s upstream (component suppliers) and downstream (customer product) supply chains.

“It’s complicated. It makes life a bit more difficult in terms of identifying how to bring our equipment in,” Klauser said. “It is more components? Is it more complete machines? This is on a daily basis, we are checking it out. But I think so far, we are dealing quite well.”

About the Author

Anna Townshend

Anna Townshend

managing editor

Anna Townshend has been a journalist and editor for almost 20 years. She joined Control Design and Plant Services as managing editor in June 2020. Previously, for more than 10 years, she was the editor of Marina Dock Age and International Dredging Review. In addition to writing and editing thousands of articles in her career, she has been an active speaker on industry panels and presentations, as well as host for the Tool Belt and Control Intelligence podcasts. Email her at [email protected].

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