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Market Research and Benchmarking

Market Chart

The annual consumption of material handling equipment systems in the United States has grown to over $156 billion per year, as of 2006. This consumption takes place in virtually all discrete process and service industry sectors with the vast majority being found throughout Construction, Manufacturing and Service. For further market analysis of material handling consumption, click here.

Please Note: The chart above categorizes industry segments, i.e. containers, decking, by their estimated minimum value in sales or revenue. For example the containers category achieves in excess of $20 billion in sales annually while decking generates in excess of $10 million. So when looking at this chart you should multiply the value category by the number of industry segments in that value category to understand the $156 Billion material handling market.

Business Cycles
The overall material handling Industry business cycle behaves somewhat predictably when looked at on a rate-of-change basis. While amplitude (growth or decline) will change, the period between highs and lows has proven repeatable. It should be noted that different segments or equipment groups within the Industry will lead or lag this overall Industry chart generally as a function of differing order-to-installation lead times.

As shown in the graph below, slower shipment growth is expected through 2008 and into 2009.



Industry Projections Beyond 2008-2009
The business cycle for the Industry as a whole will begin a period of slower growth in 2008 and into 2009. Many forces will be at work to keep material handling and logistics on a healthy economic path including:

  • Continued shift toward applying equipment versus new plant capital spending
  • Consumer demand for variety, availability, convenience, quality, and affordability
  • Material handling and logistics being seen as a strategic versus tactical activity
  • Globalization and consolidation of companies
  • Emphasis on productivity improvements and production efficiencies
  • Concurrence with which goods and information are moved along supply channels
  • Mass customization and electronic commerce
  • Shifts to outsourcing and offshoring
  • Continued pressure to reduce inventories
Material handling and logistics continues its very strategic role in the improvement of order-to-delivery cycles, inventory reduction, and satisfying changing buying culture and behavior. As a result, we expect exceptional opportunities through the remainder of the decade for the Industry both domestically and internationally.

For more information on industry statistics, contact Donna Varner.