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GN Johnston Equipment

G.N. Johnston Equipment has been the Canadian dealer for Raymond Corporation, a global provider of lift trucks and materials-handling solutions, since 1954. G.N. Johnston maintains thirteen service centres from coast to coast, and is a leader in the sales and rental of materials-handling equipment to warehouse operators.

The head office and main distribution facility, located in a leased building of 170,000 square feet in Mississauga, Ontario, serves as a technical training centre and classroom facility. Johnston also maintains a 25,000-square-foot leased service facility in Markham, Ontario, that serves customers east and north of the City of Toronto.

Prior to the economic downturn in 2008, Johnston underwent a period of rapid growth in sales of both new and refurbished equipment. This rapid growth prompted it to expand its warehouse/distribution and equipment repair operations at its Mississauga facility as well as add two additional leased premises of 40,000 and 21,000 square feet, respectively.

The Challenge

Johnston retained Savills Studley to undertake a thorough study of Johnston Equipment’s existing facilities in the Greater Toronto Area and to report on the various real estate options available to satisfy its projected sales growth from a financial, operational and business perspective.

Savills Studley’s Response

Savills Studley initiated its FLOW™ Process and, working closely with Johnston’s operating staff and executive committee, developed a detailed Client Needs Analysis report defining an optimal facility solution to satisfy Johnston’s growth projections, preferred location and building requirements for size, layout, product flow, and technical specifications, among other considerations.

One of the key objectives of the study was to identify a means of achieving operational efficiencies inherent in consolidating the Mississauga facilities within the guidelines of sales forecasts and operating budgets.

The Solution

In successfully consolidating its Mississauga operations Savills Studley achieved all of Johnston Equipment’s long-term goals by skilfully renegotiating the lease of the Mississauga head office and obtaining a second lease on the adjacent building to meet both present and future space and operational needs.

During the process, Savills Studley also assisted Johnston in lease negotiations in Calgary, Edmonton and Regina, and renegotiated the lease on its Markham facility to make all leases within the GTA coterminous.

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Key contacts

Stan Krawitz

Stan Krawitz

Vice Chairman – Founder, Head of Canada

Savills Toronto

+1 416 480 0745 Ext. 3030

 

Ken Norris

Ken Norris

Senior Vice President, Branch Manager – Ontario Office

Savills Toronto

+1 416 480 0745 Ext. 3047