The Booked Orders Index compiled monthly by the Industrial Truck Association (ITA) shows that industry orders were at a level 7.0% stronger during the final quarter of last year than during July-September of 2002. And the market continued to show some improvement when viewed from a longer-term perspective, as well. Following 2001's plunge of 38%, the value of lift truck orders during 2002 was 14.3% higher than a year earlier. We're forecasting market growth of about another 3% this year, followed by a healthier 8% gain during 2004.

The average Booked Orders Index reported by the Conveyor Equipment Manufacturers Association (CEMA) during the final quarter of this past year for all equipment (i.e., unit handling and bulk, combined) was a strong 18.2% higher than during the third quarter of 2002. Total conveyor orders for all of 2002 were worth an estimated 18.3% less than 2001. However, unit handling orders rose by a very encouraging 22% between the third and fourth quarters of last year. We're forecasting annual gains just over 6% during 2003.

The U.S. Commerce Department's survey of U.S. manufacturers' showed the value of materials handling machinery and equipment shipments to be worth 11.2% less during 2002 than 2001. So, following increases during seven of the previous eight years, industry shipments have now fallen for two consecutive years (the decline between 2000 and 2001 was a less-precipitous 5.3%). But we continue to believe that industry shipments bottomed out during the closing months of 2002. It looks like 2003 will be a year of some growth.

Although the exclusive MMH index of orders declined 3.2% between the third and fourth quarters of last year, it still appears that the industry has turned the corner. In fact, the orders total for the final three months of 2002 was an encouraging 2.2% higher than at the close of 2001. This was the first time since late 2000 that a given quarter's orders volume level had come in higher than during the same quarter one year earlier. But 2002 overall was an unambiguously down year. We're forecasting that the orders index will move ahead about 5% this year.