We all started 2002 with great hope. However, the year turned out to be tougher than many had expected. In reality, the economy is a bit schizo right now. While retailers and their distribution centers are humming, manufacturing has too much capacity.

Meanwhile, the two sides of this economic coin have resulted in some innovative solutions to materials handling challenges. You read about them in every issue of MMH. Here are five more good reasons why 2002 was not entirely a year to forget.

Return on investment: The Job Creation and Worker Assistance Act of 2002 creates a new incentive to make capital expenditures. Basically, it front-end loads depreciation on expenditures made between 9/11/01 and 9/11/04. The bottom line is an earlier return on investment. When was the last time anyone offered you that?

Radio frequency identification: This data capture and management technology is building a critical mass that will make it a force soon. After all, these data chips improve efficiencies, provide real-time inventory updates and tighten up the supply chain (see Auto-ID Center pioneers RFID use ). It's too good an opportunity to pass up.

Ergonomics and safety: Quite simply, more companies are finding that it's good business to make their materials handling operations as safe and ergonomic as possible. While initially seen as a negative, the reversal of OSHA's new ergonomic guidelines in 2001 seems to have spurred some company-based initiatives. Rising medical costs help too. And as OSHA proposed a relaxation of lift truck seat belt rules, the Industrial Truck Association called it "an awful idea." We couldn't agree more. Why take even one step back when we're taking so many steps forward?

Product developments: You can't say 2002 was a banner year for new products. But it wasn't bad either. In addition to developments introduced here in the U.S. (see 2002 Product Review Showcase ), there were plenty of new ideas coming from abroad. Advances in storage, staging and order fulfillment were prominent at Germany's CeMat World's Fair. Together, these are the fast track to higher productivity.

Pallets: While no one knows the precise number of different sized pallets used around the world, we all know there are too many. The International Standards Organization is trying to reduce that number to just six in what will surely be a long-term project. Whatever the final number, the direction is right – less is more.

Combine these highlights with the promise of February's ProMat 2003 materials handling show (see the Planner polybagged with this issue), and the stage is set for new ideas, attitudes and perspectives that will be the foundation for a brighter future.