Material handling equipment orders grew 18.0% in 2010 and are forecasted to grow 11.0-12.0% in 2011/2012, according to the latest Material Handling Equipment Manufacturing Forecast (MHEM) released by Material Handling Industry of America (MHIA).
“Industrial Production activity is increasing even though factory operating rates (utilization) remain very low by historical comparison," said Hal Vandiver, MHIA executive consultant. "Demand created as the economy has shifted from recession into recovery mode (filling supply chain pipelines, re-establishing inventories, and responding to pent up demand) has been the principal impetus for improvement over the last few quarters in manufacturing, warehousing and distribution.”
"Material handling equipment manufacturers will benefit from improved consumer and Investor confidence (economic stability, predictability), healthy corporate profits in the near term and expanding residential and nonresidential building sectors in late 2012."
In addition, material handling equipment shipments grew 6.0% to 7.0% in 2010 and are forecasted to grow 11.0% to 12.0% in 2011/2012. Domestic demand (shipments plus imports less exports) grew 3.0% to 4.0% in 2010. Domestic demand will likely will mirror shipment growth in 2011 and exports will be stronger than imports in 2011.
The MHEM forecast of material handling equipment manufacturing is released each quarter by MHIA and looks 12 to 18 months forward to anticipate changes in the material handling and logistics marketplace.