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

image
By Bob Trebilcock, Executive Editor
October 04, 2010 - MMH Editorial

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
Executive Editor

Bob Trebilcock, executive editor, has covered materials handling, technology and supply chain topics for Modern Materials Handling since 1984. More recently, Trebilcock became editorial director of Supply Chain Management Review. 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!

Recent Entries

MHI and our industry are in transition as materials handling’s profile is raised in the supply chain. The challenge is learning to speak the language of supply chain managers.

The acquisition of QuantiSense will extend Epicor's position as a leading provider of extended omni-channel solutions for midsize and large retail chains.

Partnership creates integral cleaning and sanitation program for reusable plastic containers.

Smatec brings 25 years of experience with solutions like bomb-bay and pocket sorters.

Frommelt Products Corporation – which has been a part of the Rite-Hite family since 1991 – will now be known as Rite-Hite Environmental Enclosures Corporation.

Article Topics

News · Materials Handling · Economy · MHI · MHIA · All topics

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