ProMat 2009: MHIA economic forecast calls for contraction
At a state of the materials handling and logistics industry press conference held in Chicago, MHIA CEO John Nofsinger said the industry, not immune to the economic downturn, will find itself in a decelerating decline phase
Modern Materials Handling 2009 ProMat Show Daily Staff -- Logistics Management, 1/15/2009
CHICAGO—The materials handling and logistics industry has not been immune to the general economic downturn currently in progress. But signs point to the industry approaching the decelerating decline phase of the materials handling and logistics business cycle, according to the Material Handling Industry of America (MHIA) in an overview of the 700,000-worker, $156 billion materials handling and logistics industry this week.
“It won’t be very long until the industry will find itself in a decelerating decline phase - with more bright spots appearing sometime during late 2009, no doubt as a result of the connections happening here on the show floor,” said John Nofsinger, CEO of MHIA, at this week’s ProMat 2009 exposition at the McCormick Center in Chicago.
Having examined the leading economic indicators for materials handling equipment manufacturing (MHEM), the association predicts continued contraction for 2009-2010. Specifically:
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MHEM new orders grew 2.3% in 2008: New orders are forecasted to decline in the range of 18-20% for 2009, with recovery expected to begin late in 2010.
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MHEM shipments expanded 6.9% in 2008: Shipments are forecasted to contract by about 15% in 2009 and by 3% in 2010.
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MHEM consumption grew 5.3% in 2008: Domestic demand (shipments plus imports less exports) will contract approximately 15% in 2009. After a period of significant expansion, exports are forecasted to decline in 2009 and 2010 as demand in the global economy contracts.
Not all the news was about the economy. Steve Schoeny, director of the strategic business investment division of the Ohio department of development, was on hand to present a proclamation to MHIA from Ohio Governor Ted Strickland and Lieutenant Governor Lee Fisher naming April 25-May 1, 2010 Material Handling & Logistics Week in Ohio. The event will coincide with the 2010 North American Material Handling & Logistics Show to be held April 26-29, 2010 at Cleveland’s I-X Center.
The proclamation states “The Material Handling Industry of America (MHIA) has demonstrated national leadership by highlighting the need for workforce development, and Ohio looks to partner with them in the future to continue their successful efforts.”
“To further Ohio’s commitment to the logistics and distribution industries, Governor Strickland has created a stimulus program that will provide more than $100 million over the next three years to cultivate continued success in the multi- and inter-modal transportation capabilities in Ohio,” said Schoeny. “With Ohio located within a day’s drive of 60% of the population of the United States and Canada, our location, import/export acumen, infrastructure and workforce all serve to strengthen Ohio’s position in the inventory management and supply-planning field.”
Hal Vandiver, executive vice president of business development for MHIA and association liaison to the Crane Manufacturer’s Association of America (CMAA), the Hoist Manufacturer’s Institute (HMI) and the Monorail Manufacturer’s Association (MMA), shared three new developments from these groups.
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The Overhead Alliance - comprised of CMAA, HMI and MMA - has been formed to promote overhead methods of lifting and moving materials. The alliance promotes the crane monorail and hoist industries as alternative lifting and moving solutions that can reduce accidents, improve workplace health and safety, reduce product damage, improve workflow and lower costs. Representative technologies include overhead bridge cranes, electric chain hoists, work station bridge cranes, below-the-hook devices and radio remote controls. More information can be obtained at www.overheadalliance.org.
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MMA introduced the MMA-Certified Program for enclosed track workstation cranes, monorails and patented track systems.
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HMI introduced the HMI-Certified Program for manual hoists, manual and powered trolleys, powered chain hoists and powered wire rope hoists.
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