MHIA Roundtable of Industry Leaders releases 2007 forecast.
Press Release Summary:
During meeting, MHIA Roundtable of Industry Leaders forecasted continued growth in New Orders of 3-5% in 2007 followed by slower growth or contraction in 2008. Continued growth in shipments of 7-10% is expected followed by mild contraction in 2008, and Consumption is expected to grow 6.5-9.5% in 2007 followed by modest to no growth in 2008. Key issues facing material handling and logistics include energy costs, raw material costs, demographic shifts, Internet orders, and geo-political scene.
Original Press Release:
MHIA Roundtable of Industry Leaders Release 2007 Forecast And Outline Key Issues Facing Material Handling & Logistics
(Charlotte, NC - March 7, 2007) The Material Handling Industry of America (MHIA) Roundtable of Industry Leaders met in February in Naples, Florida. During the Meeting, the Roundtable released the latest Material Handling Equipment Manufacturing (MHEM) forecast and outlined key issues facing the material handling & logistics industry.
MHIA's MHEM Forecast is a quarterly forecast of the $125 billion total U.S. Material Handling & Logistics market using the $27.1 billion material handling equipment market as a proxy.
2006 MHEM Market Overview
New Orders for 2006 grew 10.0% over 2005 and set a new record high for the series at $26.3 billion; Shipments grew 13.7% in 2006
Unfilled Orders grew 14.4% in 2006 versus 2005 to finish at $8.5 billion which represents the equivalent of 4.2 months' shipments
Imports Increased 11.9% in 2006 over 2005, while Exports grew 21.4% during that same time.
The Net Trade Value (Imports minus Exports) was $1.4 billion representing an 8.0% decline in the trade gap from 2005 from 2006
Total US Consumption for 2006 finished at $27.1 billion, growing 12.4% over 2005.
2007 MHEM Forecast
Outlook for 2007 is favorable; expect a "soft landing" in 2008
MHIA forecasts a continued growth in New Orders of 3-5% in 2007 followed by slower growth or perhaps a mild contraction in 2008
MHIA forecasts continued growth in Shipments of 7-10% followed by a mild contraction in 2008.
MHIA forecasts that Consumption will grow about 6.5-9.5% in 2007 followed by modest to no growth in 2008.
The Roundtable also outlined key issues facing the material handling & logistics industry in 2007 including:
o Energy costs and alternate energy sources will be critical for manufacturers and the supply chain
o Raw material costs, inflation and overcapacity will continue to affect operations and profitability, although some moderation is expected
o The overall state of manufacturing in the U.S. and the continued pressure on U.S. infrastructure due to increased imports from China and other emerging markets will continue
o Significant demographic shifts in provider and end user markets are expected due to current and impending baby boomer retirement
o The increased expansion and sophistication of distribution centers to handle rising imports coupled with a struggling U.S. manufacturing sector means that U.S. service sectors will dominate over the next decade, not U.S. manufacturing
o The increase in Internet orders and fulfillment coupled with increased imports creates the need for improved reverse logistics, especially on goods from emerging markets
o Offshore transportation and tariff costs plus infrastructure concerns overseas will represent an opportunity for U.S. manufacturing to re-gain competitiveness
o The geo-political scene and U.S Government policy will continue to impact the global supply chain and security
o A continued shift from full to broken and mixed-case order picking
o Emphasis on automation to overcome looming worker shortages.
MHIA is an international trade association that has represented this industry since 1945. MHIA's nearly 800 members include material handling equipment and systems manufacturers, integrators, consultants, publishers, and third party logistics providers. Member companies come from all areas of material handling and various parts of the world, making MHIA a strong national and international representative for the material handling industry. Much of the work of the industry is done within its product-specific sections, councils and affiliates. The association also sponsors trade events, such as ProMat and NA 2008 to showcase the products and services of its member companies and to educate industry professionals on the productivity solutions provided through material handling and logistics.
For more information on Material Handling Industry activities and programming call 704-676-1190/800-345-1815 or visit our Web site at www.mhia.org.
