Monday, September 20, 2010
Material handling equipment orders contracted 34.3% in 2009 are forecasted to grow 12.0-14.0% in 2010 if current momentum maintains, according to the latest Material Handling Equipment Manufacturing Forecast (MHEM) released by Material Handling Industry of America (MHIA). The outlook for 2011 is for growth in the 11.0 to 12.0% range.
“Industrial Production increased significantly in the first half of 2010 even though factory operating rates (utilization) remained very low by historical comparison," said Hal Vandiver, MHIA executive vice president of business development. "The demand that was created as the economy shifted from recession into recovery mode (filling supply chain pipelines, re-establishing inventories, and responding to pent up demand) was the principal impetus for improvement in the first two quarters in manufacturing, warehousing and distribution.”
"Forecasts are now calling for a combination of reduced GDP, corporate profit, business investment and output growth with utilization remaining below 75.0% until late 2011," added Vandiver. "This is largely due to uncertainty - consumers, investors and business owners need greater confidence in the economy's ability to sustain positive growth."
In addition, material handling equipment shipments contracted 33.4% in 2009 and are forecasted to grow 3.0 to 4.0% in 2010 and another 10.0 to 11.0 % in 2011. Domestic demand (shipments plus imports less exports) contracted 33.7% in 2009 and will grow 1.0 in 2010 and will likely mirror shipment growth in 2011. Exports will be stronger than Imports in 2010 and 2011.
The MHEM forecast of material handling equipment manufacturing is released each quarter by MHIA and looks 12 to 18 months forward to anticipate changes in the material handling and logistics marketplace.
Download the complete forecast.
MHIA is an international trade association that has represented the material handling and logistics industry since 1945. MHIA members include material handling and logistics equipment and systems manufacturers, integrators, consultants, publishers, and third party logistics providers. Member companies come from all areas of material handling and various parts of the world, making MHIA a strong national and international representative for the material handling and logistics industry. Much of the work of the industry is done within its product-specific Industry Groups. The association sponsors trade events, such as ProMat 2011 and MODEX 2012 to showcase the products and services of its member companies and to educate manufacturing, distribution and supply chain professionals on the productivity solutions provided through material handling and logistics.
Contact: Carol Miller, Vice President of Marketing & Communications, Material Handling Industry of America (MHIA) (704) 676-1190/800-345-1815.
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