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Optimism pervades NA 2006

By Corinne Kator, Associate Editor -- Modern Materials Handling, 5/1/2006

The materials handling industry experienced strong growth in recent years and that growth is likely responsible for the upbeat mood that pervaded NA 2006, held March 27-30 in Cleveland's I-X Center.

Strong demand for materials handling equipment, systems and related software was evident at the show as buying teams saw the latest developments.

"There was a genuine optimism among the visitors and attendees," says Tom Carbott, vice president of sales for Materials Handling Industry of America (MHIA), which sponsored the show. "We have a healthy economy now, and there was a continued optimism about the next couple of years. That's a big improvement over the way the industry pulled back in 2002 and 2003."

According to MHIA executive chairman Brian McNamara, who spoke at the annual state-of-the-industry press conference during the show, orders for materials handling equipment grew by 28% in 2005. McNamara expects growth to continue, albeit at a slower pace. He predicts orders will grow by 11 to 13% in 2006, followed by an additional 3.5 to 5% in 2007.

Today, materials handling is a $125 billion industry employing nearly 700,000 workers, according to MHIA chief executive John Nofsinger. MHIA includes more than 700 member companies, he says, and NA 2006 showed a record number of exhibitors.

And, the exhibitors seem pleased with their experience at the show. Many reported that attendees were not just kicking tires this year. Many of the 20,000 attendees came with plans to buy new equipment and with the budgets to do so.

Registration information compiled by MHIA showed that 57% of NA attendees planned to look at conveyors, sortation systems and other automated equipment. Rack and shelving, supply chain software, and lift trucks and attachments were also popular items.

Two-thirds of attendees reported having plans to expand their facilities, and more than half said they were adding new equipment.

"What we are hearing is that most people had funding for their projects," says Carbott.

"Along with new materials handling applications, we're seeing more projects outside the four walls of the warehouse, like transportation management and freight auditing," Carbott says. "Materials handling is more supply chain-oriented and less compartmentalized than it used to be."

This emphasis on the broader supply chain is also likely to continue at MHIA's next big show, ProMat 2007, scheduled January 8-11 in Chicago. The theme of ProMat 2007 is "Solutions that Make the Supply Chain Work."

MHIA expects more than 700 exhibitors at ProMat and more than 300,000 square feet of exhibit space. By comparison, NA 2006 included 483 exhibitors and 150,000 square feet of space.

Information about ProMat is already available at www.promatshow.com, and exhibitor information from NA 2006 is still accessible at www.nashow.com.

You can visit www.mmh.com/na2006  to experience V-logs, Podcasts and photo galleries of the latest developments at NA 2006.

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