Economy: MHIA forecasts 12% to 14% growth in material handling equipment new orders in 2010
Latest NewsState of Logistics 2016: Pursue mutual benefit NYK is latest ocean carrier to opt for INTTRA’s eVGM Service NYK is latest ocean carrier to opt for INTTRA’s eVGM Service Peak Season dynamics continue to see changes AAR reports carload and intermodal declines for week ending July 16 More News
Latest ResourceImproving Packaging: The Cost of Shipping Air is Going Up Retailers and manufacturers that insist on using inefficient and sloppy packaging methods—oversized boxes, inefficient packaging, poorly constructed palletized contents—are paying for their mistakes in sharply higher freight rates.
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 AuthorNoel 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!
2016 State of Logistics: Third-party logistics 2016 State of Logistics: Ocean freight View More From this Issue