Mark Andres shares the impact of CARB Regulations with new industry regulations.
By Elsbeth Russell
IF YOU RUN into MHEDA Board member Mark Andres on any given day, you’re likely to find him with a well-read document close at hand. The document is not the draft of an up- and-coming new novel or Hollywood script. It’s a dog-eared copy of Appendix A-1 of the Zero-Emission Forklift Regulation Order, which he refers to, jokingly, as his Bible.
“I run the company, but I still keep that with me everywhere I go,” he said. “As a California dealer, I kept getting asked these questions and I was done looking stupid. So, I just started bringing this out and I referenced this all the time. It’s all wrinkled and greasy.”
As businesses face stricter environmental regulations, the material handling industry is adapting to new requirements that emphasize cleaner energy solutions. In particular, the California Air Resources Board’s (CARB) regulations are at the forefront, aiming to phase out internal combustion forklifts and shift toward zero- emission alternatives.
MHEDA is facing this reality head-on, incorporating it as one of the 15 Material Handling Business Trends for 2025. MHEDA highlights the fact that “Equipment electrification, mobile robots and automated guided vehicles (AGV) will continue to impact member sales and aftermarket operations.”
To learn more about how these changes affect businesses and what they mean for equipment dealerships we sat down with Andres, who is president and CEO of Total Industries in Livermore California.
Understanding the CARB Regulation and Its Broader Implications
Indeed, CARB’s regulations are expected to influence not only California but also the broader landscape of material handling nationwide.
CARB’s regulations set a phased timeline for companies to stop selling new internal combustion engine (ICE) forklifts and to begin phasing out existing equipment. For material handling professionals, the first critical compliance date is Jan. 1, 2026. Starting then, no new ICE forklifts in Class 4 will be sold, with few exceptions. The regulation also extends phase-out deadlines based on forklift class and usage, giving companies a roadmap for transitioning to electric alternatives.
While the rule initially applies to California, other states often follow California’s lead on environmental legislation, making this a bellwether for national change.
“I think it’s important that dealers educate themselves and force themselves and their sales teams to learn about this,” Andres said. “Whether you’re in rural Texas or here in California, it’s coming.”
Tackling Misconceptions and Destigmatizing” Electrification
For material handling professionals, understanding the practical benefits of electrification is essential for overcoming misconceptions. Common concerns often revolve around battery maintenance and charging issues, particularly for lithium-ion batteries, which are gaining popularity.
This rapid technological advancement is not limited to battery capabilities alone. Many customers now prioritize sustainability, and CARB’s deadlines provide external motivation to drive change. Andres sees this as an opportunity for dealers to play a consulting role, guiding customers through their options.
He encourages sales teams to focus on educating rather than selling: “Don’t believe that [CARB regulations are] panic-worthy. Be a consultant to the customer…we all talk about that six-hundred dollar word, ‘I’m a consultant,’ but this is truly our opportunity to be consultants.”
Financial Incentives to Support Electrification
The cost of transitioning to electric equipment is often the primary concern for businesses. However, a wide array of financial incentives exists to ease the burden. Andres advises companies to start by “look[ing] at your local air quality management district…whether it’s Texas or California…[local agencies] want to give you the money.”
Organizations like the Bay Area Air Quality Management District and the Southern California Air Quality Management District offer grants and subsidies aimed at decarbonization. By supporting local businesses in obtaining zero-emission infrastructure, these agencies help offset initial costs, a benefit for companies hesitant to adopt new technologies.
A lack of understanding and familiarity with these programs leads to missed opportunities: “These are people who are passionate about decarbonization…they respond quickly, they want to give you the money,” Andres said. “And that’s the thing that we as a dealer are trying to destigmatize.”
Addressing Dealer and Aftermarket Challenges
For dealers, electrification represents a “major paradigm shift” in both front-end sales and aftermarket operations. As forklifts transition to electric, fewer parts and less frequent maintenance are required, creating a ripple effect throughout the industry. This trend, which MHEDA’s Trend highlights, has a significant impact on service revenues.
“Over the next 10 years, you’re going to see a trend down in the amount of labor hours… it’s more expensive to buy your fuel upfront when you buy an electric forklift, but the reality is it consumes a lot less parts and service than internal combustion,” Andres said.
This shift demands an increase in technical proficiency from service teams. As electric models introduce advanced telemetry and data-driven maintenance requirements, service technicians need additional training to match the level of sophistication in the technology. Andres notes that for dealerships, “training and development of our [technicians] is going to have to really ramp up to match this technology.”
Additionally, the secondary, or aftermarket, market is impacted as used electric equipment has distinct challenges compared to ICE forklifts. Andres highlights that some customers may resist installing necessary charging infrastructure for low-usage electric equipment, such as a single forklift used only a few hours a week. To address this gap, Andres suggests that dealers may need to provide incentives, like bundled charger installation, to make these purchases more attractive.
Long-term Outlook: Transition and Compliance
As CARB deadlines draw closer, companies must stay informed.
“Start with your local air quality management district,” Andres advises, encouraging businesses to stay engaged with regulatory agencies. He suggests that subscribing to updates from CARB and participating in public hearings can help companies remain aware of any changes or extensions.
Although some groups have filed lawsuits against CARB’s regulations, Andres believes the regulation is here to stay. Even if compliance dates shift slightly, he predicts that California will maintain its commitment to cutting emissions, setting a precedent for other states.
“It’s going to take a lot of power to get [California] to say, you can’t stop them from preventing the sale of new forklifts in 2026.”
For businesses, this regulatory certainty provides a clear call to action. Many are responding proactively by setting up sustainability initiatives, particularly in sectors like distribution, wine production and agriculture.
Andres notes that these companies “were already in [electrification]. The challenges are going to be your high-cycle outdoor applications, running 2,500 to 3,000 hours a year. But [even there] the technology is catching up quickly.”
Moving Forward With MHEDA’s Electrification Trend
MHEDA’s Material Handling Business Trend paired with CARB’s regulations underscores the growing importance of electrification and automation within the industry.
The shift to electric equipment, along with advances in mobile robots and AGVs, not only improves environmental sustainability but also enhances operational efficiency and meets the demands of customers focused on sustainability goals.
“I want to market and sell through education. This is our opportunity to be consultants for our customers,” Andres emphasized, pointing back to his well- used Appendix 1 document. “You have the instructions, have the answers to the test right here.”
Indeed, For MHEDA members, this trend reflects a long-term shift in the industry’s operations and priorities.
The electrification of material handling equipment isn’t just a response to regulatory mandates – it’s a move toward a more sustainable and efficient future. By preparing now, dealers and customers alike can meet CARB’s requirements and position themselves as leaders in an evolving, eco- conscious market.
