Conveyors: CEMA reports 2008 shipments flat
At the annual meeting, conveyor equipment manufacturers were hopeful for a market rebound in 2010.
By Bob Trebilcock, Executive Editor -- Modern Materials Handling, 4/1/2009
The Conveyor Equipment Manufacturers Association (CEMA, www.cemanet.org) recently reported that 2008 shipments in North America were flat for the conveyor industry while new orders declined an estimated 15% last year.
These results were delivered by Dan Fannin, CEMA president, at the association’s 76th annual meeting in Marco Island, Fla., in March.
According to CEMA, conveyor shipments totaled $7.82 billion last year, an increase of $1 million over 2007 shipments. That modest growth followed two strong years, with shipment increases of 4.98% in 2007 and 5.9% in 2006.
Orders for new conveyors, however, decreased by $1.22 billion in 2008 to $6.89, a 15% year-over-year decline from 2007.
CEMA members who attended the annual meeting expressed reservations for 2009 but were hopeful for a market rebound in 2010. Those same cautious sentiments were evident in a survey of 437 readers of Modern Materials Handling about their conveyor purchasing plans for the next 18 months. The survey was conducted in February by the research division of Reed Business Information, Modern’s parent company, and the results were also presented at the CEMA meeting.
Asked how the economy is impacting their spending on conveyor parts and accessories:
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30% are taking a wait-and-see approach with no present plans to invest.
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27% reported their overall materials handling budget has been cut for 2009.
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17% will be spending less on conveyors in 2009.
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12% will be spending the same on conveyors as in 2008.
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8% will be spending more on conveyors in 2009, and
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5% will be allocating more to maintenance.
And while those companies spending less expect to spend 38% less than they did in 2008, those investing in new conveyor equipment expect to spend 43% more in the next 12 months than last year.
How does that translate into dollars and cents? Respondents spent an average of $249,000 on conveyors and $57,000 on conveyor parts and equipment in 2008; those same readers expect to spend $255,000 on conveyors and $76,000 on parts in the next 12 months. While that represents only a modest increase in spending on new equipment, the trend is positive.
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