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Hot spots for 2004

By Gary Forger -- Modern Materials Handling, 1/1/2004

From all early indications, 2004 is going to be especially memorable for manufacturing, warehousing and distribution. Sure, you've heard that about other years. After all, who doesn't start a new year with at least some measure of optimism. But I do think 2004 will prove to be especially significant on several fronts.

Just look at the cover of this issue. It's been years since we ran a materials handling spending feature story let alone put it on the cover. And with good reason. Unless everyone I've talked to over the past four months is dead wrong, materials handling spending is at a turning point as it comes off an especially painful downturn.

In the story - Materials handling spending makes a comeback, economist Jim Haughey calls for a 7.6% increase in materials handling shipments this year and nearly a 10% increase in orders. Perhaps more important, Haughey says this is the start of a multi-year run of increased demand for materials handling equipment and software.

Beyond that, 2004 should be memorable for the Wal-Mart and Department of Defense radio frequency identification (RFID) launches. On the one hand there is some uncertainty about the ability of either to meet their goals and have major suppliers using the technology a year from now. But then again, who expects either to fall flat on their faces with this initiative? Not me, for one. To see what's happening with conveyors in particular in the RFID arena, see the story - Top trends in conveyors.

Also notable this year will be growing interest in the real-time information weapon. As the feature - Getting the most from real-time information - explains, real-time information can change materials handling operations by balancing workloads against resources. The end result is not only greater efficiencies but lower costs. And given all the pressures on operating managers these days, they can use any help that comes their way.

So what are the other hot buttons for 2004? Ergonomics belongs on the list. It will be especially interesting to see what CalOSHA comes up with working with materials handling equipment suppliers as it develops ergonomic guidelines, not standards. There's even the possibility what California does is adopted on a national basis.

California also figures prominently in the future of lift trucks. A move there to limit lift truck sales to only electric models could have national implications too. Surely, this story will unfold more completely in 2004.

We'll be covering these and other stories as the year develops. And with this much likely to be memorable, you don't want to miss any of it.

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