MHIA forecasts double-digit growth

by Array

According to the latest Material Handling Equipment Manufacturing Forecast (MHEM) – which was released by Material Handling Industry of America (MHIA) – material-handling equipment orders contracted 34.3 percent in 2009 are forecasted to grow 12 percent to 14 percent in 2010 – if the current momentum is maintained.

The outlook for 2011 is for growth in the 11 percent to 12 percent range.

The MHIA notes that industrial production increased significantly in the first half of this year even though factory-operating rates remained very low.

The MHEM forecast also reports that material-handling shipments contracted 33.4 percent in 2009 and are forecasted to grow three percent to four percent in 2010 and another 10 percent to 11 percent in 2011.

Domestic demand (shipments plus imports less exports) contracted 22.7 percent in 2009 will grow one percent in 2010 and will likely mirror shipment growth in 2011.

Exports will be stronger than imports in 2010 and 2011.

The MHIA adds that forecasts are now calling for a combination of reduced GDP, corporate profit, business investment and output growth with use remaining below 75 percent until late 2011.

The MHIA attributes this to uncertainty – consumers, investors and business owners need greater confidence in the economy’s ability to sustain positive growth.

The MHEM forecast of material handling equipment manufacturing is released each quarter by MHIA and looks ahead 12 to 18 months to anticipate changes in the material handling and logistics marketplace.