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Shippers eye more security equipment purchases

Staff -- Logistics Management, 3/1/2003

An exclusive survey by Logistics Management of shippers' plans for buying materials handling equipment this year offers both disappointment and cheer for equipment manufacturers.

A survey of nearly 200 logistics and warehousing managers found that 46 percent did not plan to buy materials handling equipment this year due to concerns over the direction of the economy and a possible war with Iraq. That's the bad news. The good news is, that still leaves 54 percent who say they do plan to purchase equipment soon.

Why shippers buy new materials handling equipmentWhen it comes to new equipment, some 60 percent of respondents said that they planned to buy forklift trucks. Another 49 percent were eyeing bar-code equipment purchases. Twenty-eight percent of those surveyed were considering purchasing conveyors, while 10 percent said they needed carousels. (Multiple responses were allowed to this question.)

When asked which logistics objectives would be supported by the purchase of new equipment, 24 percent of respondents cited a reduction of operational costs. (See chart .) Another 23 percent said that new equipment would spur worker productivity, while 22 percent said that the purchased items would replace outmoded equipment.

Recommendations by vendors' salespeople most often influenced the sale of a particular piece of equipment, the survey found. Some 28 percent of those surveyed said that a sales representative influenced their purchasing decision. Another 16 percent said that warehouse management system vendors affected their purchase decision, while 15 percent of respondents noted that recommendations from professional colleagues held the most sway.

Interestingly, nearly three-fourth (73 percent) of all survey respondents said that security concerns would prompt their companies to make certain types of equipment purchases this year. Equipment being eyed to enhance security included surveillance cameras, cited by 39 percent of respondents. Employee-identification systems were earmarked for possible purchase by 35 percent, and 15 percent were considering radio-frequency tags for security reasons.

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