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Where do we go from here?

Staff -- Modern Materials Handling, 11/1/2002

With the economy still sputtering along, materials handling professionals gathered to discuss post-recession trends and tactics at the HK Systems users' conference in Park City, Utah.

Participants agreed that the industry is slowly pulling out of disappointing years, as both end-users and manufacturers are beginning to hire and gradually expand.

"Some companies became so lean during the last couple of years that they realize they need to start hiring again for growth," said Michael Flamer of the Dorfman Group, an executive search agency.

Consolidation has also been a trend in recent years. "In the past, most consolidations have been regional and tactical," said John Nofsinger of the Material Handling Industry of America. "Now consolidations are more global and strategic. It opens the door for a lot of international trade."

In another trend, the use of third party logistics providers (3PL) has tripled in the '90s, from about 7% to 20% of all logistics expenditures, and is expected to double again soon.

"Many are looking at niches, hiring a 3PL to handle a seasonal or specialized project," said Doug Pope of The Facility Group.

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