Conveyor manufacturers anticipate continued growth

Members of The Conveyor Equipment Manufacturers Association (CEMA) celebrated a strong first half, as sales continue to hover around record levels.

Executives representing CEMA member companies recently attended the association’s Fall Meeting in Chicago, Ill., they expressed continued optimism after reporting overall industry orders (bookings) for the first six months of 2015 increased 5.78% compared to the same period in 2014, with total orders of $5.72 billion. Industry billed sales (shipments) were up 7.87% to $5.87 billion.

Bob Reinfried, executive vice president of CEMA, said growth is expected to continue through 2015, by which time CEMA expects 2015 shipments will have increased by 7% from last year – a year that saw 9% gains. This forecast remains unchanged from the March 2015 forecast.

“Early this year we thought it would be a very good year for the conveyor industry, and we’re sticking with that,” Reinfried said. “Truthfully, I think everyone would be happy with things remaining right where they are.”

That said, the market for bulk handling equipment has softened following a sharp decline in oil prices. Some economists had suggested the price per barrel could fall to $20, which Reinfried said would be very bad news for bulk conveying. More reliable sources suggest it will likely land around $50 to $60 per barrel this year, which could increase jobs and equipment usage in the bulk market. For the first half, bulk orders were down 5.51% and shipments were up 1.55%, so CEMA predicts a modest rebound.

Unit handling, on the other hand, continues to grow by double digits, with orders up 12.33% and shipments up 11.39%. “Everything is looking bright,” Reinfried said.

The wider material handling industry is forecasting 7% growth in 2016, but Reinfried said CEMA has not yet issued a forecast for that period. “It’s good news for conveyors, but we’re not sure we will necessarily follow the materials handling industry’s growth since it’s so much broader,” he said. “Most members are optimistic, lead times are going out, and they’re still hiring, but we realize a lot can happen with interest rates and little spooks here and there like China devaluing its currency. Still, I don’t think we’ll see any dip in 2016, just maybe a slower rate of growth.”

CEMA tracks new orders and shipped sales volume in nine classes of unit handling equipment and four classes of bulk handling equipment.