Economy: MHIA forecasts 12% to 14% growth in material handling equipment new orders in 2010

Current momentum could bring growth in the 11% to 12% range into 2011.

By ·

Material handling equipment orders contracted 34.3% in 2009 are forecasted to grow 12 to 14% 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% to 12% 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% 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% to 4% in 2010 and another 10% to 11% 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.


About the Author

Noel P. Bodenburg
Noël P. Bodenburg, executive managing editor, has been with Modern Materials Handling and Material Handling Product News since 2006. She is a graduate of Boston University. Prior to joining the Supply Chain Group magazines, Noël worked as a production and managing editor at other industry business-to-business publications.

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
eBook: Why Multi-Tier Supplier Collaboration is More Important Now
Explore the benefits of supplier collaboration including sharing demand forecasts, faster reactions to demand or capacity changes and well-coordinated product launches.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...