Final thoughts on ProMat 2009

If you were in Chicago last week, you know it was cold. I live in New Hampshire, where we like to think we’re used to frigid temperatures. Heck, it’s the middle of January and I ran into a guy wearing shorts at the bank today. That said, even I was frozen to the bone walking to dinner from the downtown Marriott in the cold and wind.

The question is whether the mood – and the deals - was as cold inside McCormick Place as the streets outside. On that front, the show appears to have been a mixed bag. Here’s some of what I observed.

Don’t expect a recovery until 2010: I had the opportunity to speak to several senior level managers at companies with a global presence. To a man – and, sorry ladies, they were all men – they were already looking beyond 2009 to mid-2010 before they expected their businesses to turn around. The reason: Existing projects would be wrapped up in the next four to six months, and there was little in the pipeline to follow. Given a 12- to 18-month sales cycle, you come up with 2010 before the seeds planted in Chicago really bear fruit.

Hope springs eternal: While most people I spoke to acknowledged that business is pretty grim today, most also appeared ready to weather the storm. I expect to see them back in Chicago in 2011. Note to my superiors: I’ll still be around, right?

ROI has never been more important: The projects getting funded today are those that can deliver a quick ROI that can be used to fund the next project. Projects with a 6- to 12-month payback, 18 months at the outset. In this environment, those are projects that allow you to do more with less labor.

Be careful how you pick: Okay, this is totally unscientific, but if I had to pick one materials handling solution that predominated (and one that delivers an ROI), it was picking solutions. I saw pick-to-light systems and a new wearable multi-function mobile computing device that could scan and do voice. But I also saw a lot of automated goods-to-person solutions. These were new micro-load, mini-load, unit load and carousel storage and retrieval systems (AS/RS) that automatically deliver product from storage to a picker. In addition, there were new software solutions to improve picking.  

Smart carts must be getting traction: For those not familiar with the technology, smart carts are stripped down automatic guided vehicles. Not that long ago, Jervis B. Webb was the only game in town. Now, it seems like everyone, including Toyota’s lift truck division, is getting into the smart cart business.

RFID was MIA: Two shows ago it seemed like every booth was playing up the RFID angle. This year, RFID was an after-thought. And those booths that were demonstrating RFID solutions (think AeroScout) were talking about asset management, not tracking cases and pallets through the retail supply chain.

All in all, despite the cold and the economy, I had a great time walking the aisles and talking to the materials handling community. Here’s looking to Cleveland in the spring of 2010.