Tom Andel

Time to face the What-Ifs
September 24, 2008

It’s been a couple weeks since The Material Handling Industry of America had its Fall meeting. This was in the good old days, BFFC: Before the Fannie and Freddie Collapse. I was all set to do a report on a panel discussion where the MHIA product section heads gave their assessment of current and future markets, then boom—we’re now in the AFFC days. Does the dawning of this era change what everyone on the panel said?

“There certainly is no upside given the recent events in my opinion relative to the forecasts,” Hal Vandiver told me. Hal is MHIA executive vice president. “And, there is significant downside if no action is taken to provide stability and confidence in the financial sector,” he added.

That said, what DID these executives say at this session that took place BFFC?

Here’s a roundup of quotes:

Gregg Goodner, Hytrol Conveyor Company, Inc.:

“I see regulations coming, a lot of them driven around energy. The Energy Efficiency Act passed in 2007 would require conveyor motors to be energy efficient. You’ll get a longer life and better performance but it will also cost. That has to be in place by December 2010, so if you’re not supplier meeting sustainability requirements on the energy side, we’ll see more regulation put in place to drive conservation.”

Gregg Meyer, E.R. Wagner Casters & Wheels:

 “2010 will light the way into economic growth of the industrial sector, however petroleum, steel and other raw materials will not return to pre 2008 price levels. As for the outcome of this year’s Presidential election, it will have economic impact along the historical party platforms.”

Larry Strayhorn, Diamond Phoenix:

“Although historically we have seen wide variations in cycles based upon capital goods market fluctuation, many of the automation product sectors are experiencing resiliency due to factors driven by productivity, and customer service. The emergence and continued expansion of internet sales is a driving factor.”

John Hill, vice-president, TranSystems/ESYNC:

“The dot.com legacy continues--customers are expecting faster cycle times on smaller, more frequent orders. Those customer demands are changing warehouse layouts with less space for inventory and more for value-added services. With smaller, more frequent orders, planners are using new supply chain tools that are enabling demand-based inventory deployment and rapid shelf or site replenishment.”

You can read a lot of “what-if” into these statements. These are statements of opportunity, and the real question in these AFFC days is not so much “what if,” but “what if we don’t?”

Posted by Tom Andel on September 24, 2008 | Comments (0)