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MHIA Optimistic For 2012 And 2013

New orders expected to grow.

Material Handling Equipment Manufacturing
 
 Non-financial Corporate Profits

The Material Handling Industry has benefitted from very solid business investment in 2010 and 2011 following the recession of 2008 and 2009. Using MHEM (Material Handling Equipment Manufacturing) as a proxy for equipment purchases, we have seen double-digit growth of new orders in 2010 of 20.1% and expect 2011 to close up about 12 to 14%; we had a much stronger second half than expected. For 2012, we expect to see growth in new orders ranging from 6% to 8%.

Corporate Profits
We know that such purchases derive from the need for manufacturing, warehousing and distribution enterprises to anticipate and match surges in inventory and supply chain activities to yield improvements in efficiency, throughput and visibility. These investments have been and will continue to be supported by very healthy corporate profits in both manufacturing and non-manufacturing according to MAPI’s most recent five-year forecast.

Business Investment
This is expected to yield improvements in business investments over the next five years in ways that will positively impact our industry. Global Insights suggests the numbers below for 2012 through 2015:

 Annual Growth Forecast 2011 2012 2013 2014 2015
Industrial Equipment 12.3 9.3 5.2 5.4 5.1
Transportation Equipment 25.1 9.6 13.3 8.1 -0.6
Structures – Manufacturing -10.7 6.9 7.6 20.4 15.2
Computers & Peripherals 16.9 13.1 13.1 15.3 14.3

 

We expect to see growth in new orders ranging from 6% to 8%.

Trade Events are Positive Indicators
Our industry is preparing for this activity as indicated by our recent successes with MODEX 2012 and ProMat 2013. As most of you know, MODEX 2012 will be presented for the first time in Atlanta from February 6–9 at the Georgia World Congress Center. We have exceeded our original sales plans for 2012 by over 10%. In November, MHIA hosted the space selection for ProMat 2013, our largest ever, which is expected to yield a final result of 21% growth over ProMat 2011.

Bright Future
Such activity sends three significant signals: confidence in our industry’s future, value in our exhibition brands and strength in our association. All are essential to our future, which looks very bright from my corner!

Material Handling Equipment Distributors Association
George Prest George Prest is CEO of the Material Handling Industry of America, located in Charlotte, North Carolina, and on the web at www.mhia.org.