CEMA: 2014 on track to be another record year

The Conveyor Equipment Manufacturers Association (CEMA) reports that overall industry orders (bookings) for the first six months of 2014 increased 2.59% compared to the same period in 2013, with total orders of $5.32 billion.

CEMA president Jerry Heathman announced the results at the Association’s Fall Meeting in Chicago, Illinois.

Bob Reinfried, executive vice president of CEMA, said in a recent interview that executives representing CEMA member companies at the Fall Meeting expressed optimism for the remainder of 2014.“We had a record year in 2012, and even though last year dropped 2% it was still our second best year ever,” Reinfried said. “2014 is on track to be a record year yet again.”

As a result of this optimism, the updated forecast is for a 5% increase in 2014 shipments, up from the March 2014 forecast of a 2% increase.

CEMA estimates industry billed sales (shipments) for the first six months of 2014 increased 5.82% compared to the same period in 2013, with total shipments of $5.35 billion. CEMA tracks new orders and shipped sales volume in nine classes of unit handling equipment and four classes of bulk handling equipment.

Unit handling orders were up 10.49% and shipments were up 15.36%. In the bulk conveying area, orders were down 8.67% and shipments were down 7.85%. Reinfried said unit handling systems have been strong for some time, and represent a large portion of CEMA’s overall sales. But despite the decreases in the bulk handling side, Reinfried said executives from those companies still expect strong performance this year.

“With the rare exception, everyone is forecasting good results,” he said. “On the bulk side, they generally reported a flat situation, but they are more encouraged than the numbers might suggest. They might see some slight softening, but there could also be a lot of big work coming on mines and quarries. If those pick up it will lift the bulk side, and there are already signs they could end up with good year.”