Material handling equipment orders contracted 37% in 2009 but are forecasted to grow more than 6% in 2010, according to Material Handling Industry of America (MHIA).
"Industrial production activity is increasing even though factory operating rates remain very low by historical comparison," said Hal Vandiver, MHIA’s executive vice president of business development.
"Demand created as the economy shifts from recession into recovery mode—filling supply chain pipelines, re-establishing inventories and responding to pent-up demand—is the principal impetus for improvement over the next few quarters in manufacturing, warehousing and distribution," says Vandiver.
In addition, material handling equipment shipments contracted 34% in 2009 but are forecasted to grow 1-2% in 2010. Domestic demand—shipments plus imports less exports—contracted 35% in 2009 but will grow 1-2% in 2010. Exports and imports will improve in 2010 at about the same rate.
The Material Handling Equipment Manufacturing (MHEM) forecast of material handling equipment manufacturing is released each quarter by MHIA and looks 12-18 months forward to anticipate changes in the material handling and logistics marketplace.