As capital expenditures for materials handling turns the corner, John Splude, chairman and CEO of HK Systems says he sees four shifts in what people are buying and how they are approaching these projects.

The first is new interest larger automated systems. "We've booked more large systems, as in more than $20 million, than in the recent past," Splude says. While the cost of capital is down, he explained during HK's Material Handling and Logistics Conference, people are also finding new efficiencies in larger automated systems.

Splude is also noticing a new emphasis on the integration of handling equipment and information systems. The outcome of that is willingness of end users to work with suppliers that supply both components. That, Splude says, is due in no small part to the need to resolve interface issues between handling and information systems as rapidly as possible.

Which leads into a third trend—it's all about results, especially in software. "People have dropped their '90s mentality that the latest release is what they really want," says Splude. "Now they want to be sure the software has been tested and will deliver results out of the box."

The final trend Splude sees is more need than ever by end users to rely on materials handling suppliers to solve their operational problems. "Companies just don't have the staff for even the most basic aspects of these projects, and are turning to suppliers to help," he adds.