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
Revisiting Supplier Relationship Management to Boost Real Value in the Supply Chain
Supplier relationship management (SRM) initiatives are on the rise, and companies who successfully implement these programs can realize a significant return on their technology investments.
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Going Beyond Rate Negotiations for Logistics Cost Savings
The pressure to reduce cost is a fundamental part of every organization today leaving many supply chain professionals constantly renegotiating rates. This webcast examines four areas that may hold untapped savings potentials and even help organizations negotiate better rates.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
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...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...