MHIA forecast: slowdown
By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 5/1/2008
After several consecutive years of growth, including a strong 2007, the materials handling industry is expected to contract modestly in 2008 and 2009 before resuming growth in 2010.
That was one of the highlights from an overview of the $156 billion materials handling and logistics industry presented by the Material Handling Industry of America (MHIA, www.mhia.org) during NA 2008 in Cleveland last month.
“We have had double-digit growth for the last few years,” says Hal Vandiver, MHIA's executive vice president of business development. “But there is a business cycle.”
Last year, the total consumption of materials handling equipment was up 5.3% over 2006, while new orders grew 8.3% and shipments grew 8.9%. For 2008 and 2009, MHIA expects overall consumption (defined as production plus imports less exports) to contract by 5%; new orders are expected to lessen by 5% to 7% and shipments are expected to contract 2% to 4% in the same period.
While some areas of the industry, including industrial trucks, are already experiencing a slowdown, Vandiver says other areas are still growing. “The overhead handling industry, including cranes, hoists and monorails, is still growing at double-digit rates because of expansion at the ports,” Vandiver says. “Our conveyor members are still growing,” he adds.
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