ProMat 2009: Looking back at ProMat 2009
Despite Economic uncertainty, the Material Handling Industry of America (MHIA) reports the largest edition of the show.
Staff -- Modern Materials Handling, 2/1/2009
Held last month in Chicago's McCormick Place South, ProMat 2009 showed a record number of exhibitors, a record number of on-floor educational seminars and 35,000 visitors who perused the 300,000 square-foot show floor over the four days. These numbers confirm ProMat as the most extensive and comprehensive materials handling and logistics event in North America in 2009.
"It is particularly exciting to note that in spite of the current economic uncertainty, this is the largest edition of ProMat ever," said George Prest, director of business development for Unarco Material Handling and chairman of the Material Handling Industry of America (MHIA) at the show opening. "This speaks to the commitment and strength of this industry—when you stop to think about our role in the economy...you realize that virtually nothing in commerce can happen without at least one of the nearly 800 exhibiting companies and their industry segment represented at this show."
If you attended ProMat last month, you know the weather outside was cold. The question is whether the mood, and the deals, were as cold inside McCormick Place as the streets outside. On that front, the show appears to have been a mixed bag.
Here's some of what our editorial team observed.
Don't expect a recovery until 2010: We spoke with several senior level managers at companies with a global presence. They were already looking beyond 2009 to mid-2010 before they expected business to turn around. The reason: Existing projects would be wrapped up in the next four to six months, and there was little in the pipeline to follow. Given a 12- to 18-month sales cycle, you come up with 2010 before the seeds planted in Chicago really bear fruit.
Hope springs eternal: While most people acknowledged that business is pretty grim today, most also appeared ready to weather the storm. Many suppliers were showing products that improved existing lines and reintroduced them to the market. We expect to see them back in Chicago in 2011.
ROI has never been more important: The projects getting funded today are those that can deliver a quick ROI (Projects with a 6- to 12-month payback, 18 months at the outset.) that can be used to fund the next project. In this environment, those are projects that allow you to do more with less labor.
Be careful how you pick: One materials handling solution that predominated (and one that delivers an ROI), was picking solutions. We saw pick-to-light systems and a new wearable multi-function mobile computing device that could scan and do voice. But we also saw a lot of automated goods-to-person solutions. These were new micro-load, mini-load, unit load, carousel storage, and automated storage and retrieval systems (AS/RS) that automatically deliver product from storage to a picker. In addition, there were new software solutions to improve picking.
Smart carts must be getting traction: For those not familiar with the technology, smart carts are stripped down automatic guided vehicles. Not that long ago, Jervis B. Webb was the only game in town. Now, it seems like everyone, including Toyota's lift truck division, is getting into the smart cart business.
RFID was MIA: Two shows ago it seemed like every booth was playing up the RFID angle. This year, RFID was an after-thought. And those booths that were demonstrating RFID solutions (think AeroScout) were talking about asset management, not tracking cases and pallets through the retail supply chain.
State of the industry
The materials handling and logistics industry has not been immune to the general economic downturn currently in progress. But signs point to the industry approaching the decelerating decline phase of the materials handling and logistics business cycle, according to show sponsor MHIA, in an overview of the 700,000-worker, $156 billion materials handling and logistics industry.
MHIA CEO John Nofsinger said in a press conference that having examined the leading economic indicators for materials handling equipment manufacturing (MHEM), the association predicts continued contraction for 2009–2010. Specifically:
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MHEM new orders grew 2.3% in 2008: New orders are forecasted to decline in the range of 18–20% for 2009, with recovery expected to begin late in 2010.
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MHEM shipments expanded 6.9% in 2008: Shipments are forecasted to contract by about 15% in 2009 and by 3% in 2010.
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MHEM consumption grew 5.3% in 2008: Domestic demand (shipments plus imports, less exports) will contract approximately 15% in 2009. After a period of significant expansion, exports are forecasted to decline in 2009 and 2010 as demand in the global economy contracts.
Industry news
Hal Vandiver, executive vice president of business development for MHIA and association liaison to the Crane Manufacturer's Association of America (CMAA), the Hoist Manufacturer's Institute (HMI) and the Monorail Manufacturer's Association (MMA), shared three new developments from these groups.
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The Overhead Alliance—comprised of CMAA, HMI and MMA—has been formed to promote overhead methods of lifting and moving materials. The alliance promotes the crane, monorail and hoist industries as alternative lifting and moving solutions that can reduce accidents, improve workplace health and safety, reduce product damage, improve workflow and lower costs. Representative technologies include overhead bridge cranes, electric chain hoists, workstation bridge cranes, below-the-hook devices and radio remote controls. More information can be obtained at www.overheadalliance.org.
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MMA introduced the MMA-Certified Program for enclosed track workstation cranes, monorails and patented track systems.
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HMI introduced the HMI-Certified Program for manual hoists, manual and powered trolleys, powered chain hoists and powered wire rope hoists.
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