The predicted slowdown in the material handling industry is expected to be short lived, said Material Handling Industry of America (MHIA) executives in a news conference last week. After a strong period of growth, contraction and consolidation are expected for 2008 and 2009 before the industry resumes growth in 2010.

“We have had double-digit growth for the last few years,” said MHIA executive VP of business development Hal Vandiver. “But there is a business cycle.” The slowdown is expected to be felt hardest in logistics sectors of the $156 billion material handling industry.

Overall consumption of material handling equipment is expected to contract by 5% over the next two years with new orders decreasing by 5% to 7% and shipments declining by 2% to 4%. High fuel costs are one factor contributing to declining diesel forklift sales. Industry is switching to more energy-efficient and maneuverable electric and battery-operated motorized carts and tugs.

The poor economy is also having an effect on the material handling industry. Many companies are deferring capital equipment purchases until the economy picks up. Fewer system-wide equipment purchases are expected in the next couple of years in favor of individual item and small order solution-specific purchases.

The graying of the American workforce as Baby Boomers aged, coupled with escalating health and insurance costs focused emphasis on ergonomic design in the material handling industry. As the Boomer generation retires, the importance of ergonomic design is expected to increase as the available workforce shrinks. Equipment that can be used safely and efficiently by workers of varying body type, height and strength will be vital to industry success.


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