MHIA forecasts 12% to 14% growth in new equipment orders in 2010
MHIA forecasts 12% to 14% growth in new equipment orders in 2010.
Latest NewsState of Logistics 2016: Pursue mutual benefit Signs of economic improvements are evident but there is a way to go FTR Shippers Conditions Index notes rate and supply trouble may be coming in 2017 Cranes going higher at Port of Oakland’s largest marine terminal Robotic Industries Association announces winners of Engelberger Robotics Awards More News
Latest ResourceThe Internet of Things and the Modern Supply Chain Learn today how the internet of things is transforming supply chain operations.
It’s a far cry from 2007, but the materials handling industry is growing once again. Following a 34.3% decline in equipment orders in 2009, the Material Handling Industry of America (MHIA) is forecasting equipment orders to grow 12% to 14% in 2010 if the current momentum continues.
A variety of factors are driving growth in manufacturing, warehousing and distribution on a global basis, especially an increase in industrial production in the first half of 2010 despite factory utilization rates that remain very low by historical comparison. “Consumer demand has not returned,” Hal Vandiver, executive vice president of business development for MHIA, told Modern this weekend during the association’s fall meeting. “But in the first two quarters, the economy shifted from recession into recovery mode, filling supply chain pipelines, re-establishing inventories and responding to pent up demand.”
“Forecasts are now calling for a combination of reduced GDP, corporate profit, business investment and output growth with industrial utilization remaining below 75% until late 2011,” Vandiver said. “This is largely due to uncertainty. Consumers, investors and business owners need greater confidence in the economy’s ability to sustain positive growth.” For those reasons, Vandiver doesn’t expect a significant return to the kinds of numbers the industry posted in the past until 2007.
In addition to a growth in orders for new equipment, Vandiver forecasts material handling shipments to grow 3% to 4% in 2010 and another 10% to 11% in 2011. Domestic demand, defined as shipments plus imports less exports, will grow by 1% in 2010 and by 10% to 11% in 2011. Exports will be stronger than imports in 2010 and 2011, reflecting stronger industrial growth in emerging markets outside North America.
Click here for more articles on how the economy is affecting the industry.
About the AuthorBob Trebilcock Bob Trebilcock, editorial director, has covered materials handling, technology, logistics and supply chain topics for nearly 30 years. In addition to Supply Chain Management Review, he is also Executive Editor of Modern Materials Handling. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484.
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!
Carrier Consolidation Keeps Shippers Guessing Getting Value from the Cloud View More From this Issue