Survey says: Tactical materials handling investment budgets to increase

As part of the survey conducted by Modex sponsor MHI and Deloitte—shared in this morning’s keynote presentation of their annual industry report, “Accelerating Change: How Innovation is Driving Digital, ‘Always-On’ Supply Chains”—the nearly 900 participants were asked about anticipated tactical investments. These investments represent the materials handling solutions needed to maintain, update and improve daily operations.

The 889 survey participants collectively estimate a combined investment of more than $8.8 billion in tactical investments over the next two years. This comes as no surprise to MHI CEO George Prest, who noted more manufacturing and supply chain firms are increasing their financial commitment to innovation.

“New technology investments over $1 million have increased from 42% a year ago to 52% today,” he said. “Nearly 66% of respondents expect to increase their tactical investment budgets over the next two years—and 20% call that increase ‘significant’—the investment increase is keeping pace with that dedicated to emerging technologies.”

Additionally, 3% of the companies will invest more than $100 million, Prest added.

The top two anticipated tactical investments are:

• Fork Lift Trucks and other Mobile & Wheeled Handling Equipment (46%)
• Racks, Shelving, Storage Equipment and Shop Furniture (45%)

At least 30% of respondents expect to make investments in another 10 technologies, ranging from software and automatic data collection systems, to conveyors, motive power sources and packaging.

“Our research shows that tactical investments will continue increasing year-on-year,” concluded Prest. “For that reason, we believe there will likely be a need for additional investment in both education and support for these products and services for companies to keep pace with growth.”

Modex 2016 is scheduled to be held April 4-7, 2016 in Atlanta’s Georgia World Conference Center. The tradeshow will showcase the latest manufacturing, distribution and supply chain solutions in the material handling and logistics industry. Modern’s complete Modex coverage.