MHIA forecasts 12% to 14% growth in new equipment orders in 2010

MHIA forecasts 12% to 14% growth in new equipment orders in 2010.

By ·

It’s a far cry from 2007, but the materials handling industry is growing once again. Following a 34.3% decline in equipment orders in 2009, the Material Handling Industry of America (MHIA) is forecasting equipment orders to grow 12% to 14% in 2010 if the current momentum continues.

A variety of factors are driving growth in manufacturing, warehousing and distribution on a global basis, especially an increase in industrial production in the first half of 2010 despite factory utilization rates that remain very low by historical comparison. “Consumer demand has not returned,” Hal Vandiver, executive vice president of business development for MHIA, told Modern this weekend during the association’s fall meeting. “But in the first two quarters, the economy shifted from recession into recovery mode, filling supply chain pipelines, re-establishing inventories and responding to pent up demand.”

While Vandiver expects the industry to continue to grow by 11% to 12% in 2011, drags on the economy continue.

“Forecasts are now calling for a combination of reduced GDP, corporate profit, business investment and output growth with industrial utilization remaining below 75% until late 2011,” Vandiver said. “This is largely due to uncertainty. Consumers, investors and business owners need greater confidence in the economy’s ability to sustain positive growth.” For those reasons, Vandiver doesn’t expect a significant return to the kinds of numbers the industry posted in the past until 2007.

In addition to a growth in orders for new equipment, Vandiver forecasts material handling shipments to grow 3% to 4% in 2010 and another 10% to 11% in 2011. Domestic demand, defined as shipments plus imports less exports, will grow by 1% in 2010 and by 10% to 11% in 2011. Exports will be stronger than imports in 2010 and 2011, reflecting stronger industrial growth in emerging markets outside North America.

Click here for more articles on how the economy is affecting the industry.


About the Author

Bob Trebilcock
Bob Trebilcock, editorial director, has covered materials handling, technology, logistics and supply chain topics for nearly 30 years. In addition to Supply Chain Management Review, he is also Executive Editor of Modern Materials Handling. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484.

Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Article Topics

Economy · Materials Handling · MHI · · All Topics
Latest Whitepaper
Download: Material Handling Technology Survey Results
Readers are buying and replacing warehousing and distribution center software, but not before they do their own homework.
Download Today!
From the July 2017 Modern Materials Handling Issue
Shuttle and case dispensing technologies help Southern Glazer’s Wine & Spirits keep up with demand in one of the most competitive markets in the country.
Southern Glazer’s Wine & Spirits: Designed to Last
Automation: What’s at the heart of your system?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Warehouse Execution Systems (WES): The Pathway to Same-Day Fulfillment
This webinar explores the processes and technologies enabling same-day, same-hour order fulfillment using intelligent supply chain software.
Register Today!
EDITORS' PICKS
Southern Glazer’s Wine & Spirits: Designed to Last
On Long Island, the country’s premier distributor of wine and spirits turned to shuttle and case...
GE Healthcare System Report: Lean repairs
Self-driving mobile robots improve cycle times and reduce floor space at GE Healthcare’s new...

Materials Handling Innovation (and why it matters)
Every company considers itself an innovator. It’s time to include materials handling leaders in...
Thrive Market’s Startup Distribution Network
How does a fastgrowing, e-commerce startup company build out order fulfillment capabilities? Thrive...