CEMA sees reversal of fortune this year

“While we can’t get too excited by the numbers we are seeing now, all indications are that we’ve turned the corner,” said CEMA president, Bill Pugh
By Patrick Burnson, Executive Editor
March 09, 2011 - MMH Editorial

Just how strong is the current economic recovery? Judging by the Conveyor Equipment Manufacturers Association’s (CEMA) 78th Annual Meeting in Palm Springs California last week, pretty good.

“While we can’t get too excited by the numbers we are seeing now, all indications are that we’ve turned the corner,” said CEMA president, Bill Pugh.

On hand to confirm that impression was Alan Beaulieu, president of ITR, an economic forecasting firm. As he has done at past meetings, Beaulieu presented a broad overview of global trends in manufacturing and distribution.

“If we see an increase in private sector hiring, the chance of a double-dip recession fades considerably,” he said. “But that means U.S. companies will have to generate 200,000 jobs per anum for the next 10 years.

And Beaulieu thinks that will happen for two reasons: banks are prepared to lend again, and interest rates are still low.

“More money is coming into the economy because the government is printing and borrowing more,” he said.

This observation mirrors that made by Modern Materials Handling research analysts who contend that equipment manufacturers are finally making long-term capital investments in new system upgrades again.

Noteworthy highlights from suvey results included the fact that the median amount of money spent by firms on conveyors and/or conveyor parts and accessories during the last 12 months was estimated to be $55,000.  Eighteen percent reported spending $500,000 or more.

At the same time, system reliability remains far and away the most important factor in purchase considerations.  However, the reputation of the equipment supplier and design flexibility are becoming increasingly relevant to buyers. 

Beaulieu told the CEMA gathering (the largest in recent years) that investment in human capital was also key to a rebuilding strategy.

“It’s time to hire now if there’s any skill gaps in your operation,” he said. “And while you should be ruthless when it comes to efficiency, you should concentrate on retaining the best workers. Indeed, if you care about the people who work for you – give them raises. Productivity is at stake.”

For more stories on this subject click here.



About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


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!

Recent Entries

For companies large and small, an often overlooked key to handling sales growth in their DC is having the right picking strategies and technologies. Your current facility can do more than you think -- you just need to take a hard look at your current equipment and processes to maximize productivity with improved strategies or advanced technologies.

Dassault Systèmes, the 3DEXPERIENCE Company, a world leader in 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions, today announced the signing of a definitive share purchase agreement for Dassault Systèmes to acquire Quintiq, a leading provider of on-premise and on-cloud supply chain and Operations Planning & Optimization software, for approximately €250 million

During this complimentary webcast you'll learn the 6 reasons your operation could benefit from voice and multi-modal solutions and exactly how The Container Store did it. They were able to improve efficiency, safety and accuracy, without a complete WMS overhaul and their employees find it faster and easier to use.

Study suggests solutions for filling the talent gap, including the development of robust ties with the education system.

Global business optimism reaches highest level in survey history.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA