modern reader surveyConveyor technologyConveyor purchases may be preparingfor a pause, according to <strong>Modern</strong>’sannual survey of conveyor users.By Bob Treblicock, Executive EditorAre new conveyor implementations poised for ahiatus? That’s just one of the questions raisedby <strong>Modern</strong>’s 2011 annual reader survey onconveyors.In 2009 and 2010, readers had big plans forthe purchase of conveyors and sortation systemsin warehouses, DCs and manufacturingapplications. In those years, our readers spentan average of about $300,000 on conveyors,parts and accessories during the last 12months and planned to spend $261,000 in thenext 18 months.This year, readers tell us they spent$164,000 during the last 12 months and planto spend $193,700 in the next 18 months.The good news: Those who are increasingtheir conveyor budgets in the coming 18months, plan to spend 35% more than theydid in 2011.The responses could indicate that many ofthe facility expansions, renovations and consolidationsthat have been taking place overthe last two years are wrapping up and the enduser community is catching its breath beforelaunching its next round of improvements.It could also be a reflection of uncertaintyover the health of consumer spending,demand in emerging markets and the strengthof the bounce back in manufacturing. In fact,26% of respondents said they were taking await-and-see approach and have no plans toinvest at present. That compares to 22% whosaid they were taking a wait-and-see approachin last year’s survey.Reader plans for conveyor spending wasonly one of the questions we asked in ourannual survey. We also looked at how <strong>Modern</strong>readers plan to deploy conveyor technologiesin the future and how they plan to purchasetheir conveyor technology. To answerthose questions, we surveyed subscribers of<strong>Modern</strong> as well as a sample of recipients ofour e-newsletters. We received 351 qualifiedresponses, defined as a reader who buys oruses conveyor. The respondents representeda range of company sizes, with 26% reportingrevenues of more than $500 million, 15%reporting revenues of more than $100 millionand the remainder less than $100 million.Average annual revenues of $411 million wasconsistent with last year’s survey.How important is energy efficiencyas it relates to your conveyor system?10%9%40% 39%50%December201052%December2011Source: Peerless Research Group (PRG)Not very/Not at all importantSomewhat importantExtremely/Very importantmmh.com <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> / F e b r u a r y 2 0 1 2 25
modern reader surveyHow is the economy impacting on your spending onconveyors and/or conveyor parts and accessories?Will be spending about the sameas in 2010 on conveyor in 2011Will be spending more on conveyors in 2011We are taking a wait-and-see approachand not planning to invest at presentOverall materials handlingbudget has been cut in 2011Will be allocating more to maintenanceWill be spending less on conveyors in 2011December 2010Source: Peerless Research Group (PRG)They also represent a mix of manufacturers,distributors and warehousesassociated with manufacturing:• 66% of those planning to purchasenew conveyor will use it in a manufacturingplant,• 35% will use it in a distributioncenter, and• 26% will use it in a warehouse.Here are the most important results.10%8%8%8%14%15%17%33%23%22%26%AveragedecreaseDecember 201130%28%35%AverageincreaseFrom belt to towlineFrom belt to towline conveyors, theconveyor industry offers a diversemix of products. <strong>Modern</strong>’s readers areemploying them all (see chart on p. 24for a complete listing):• 67% are using belt conveyor,• 58% are using roller conveyor,• 50% are using gravity flow conveyor,• 49% are using motor-driven rollerconveyor, and• 35% are using accumulation conveyor.While fewer readers have installedsortation systems, the mix among thosewho have is fairly evenly divided amongthe different speed offerings:• 19% are using medium-speed sortation(50-150 cpm),• 12% are using high-speed sortation(150 cpm & up), and• 12% are using slow-speed sortation(up to 50 cpm).When it comes to future conveyorpurchases, the picture remains muchthe same for the next 18 months:• 50% plan to purchase belt conveyor,• 38% plan to purchase roller conveyor,• 32% plan to purchase motor-drivenroller conveyor,• 31% plan to purchase gravity flow,and• 27% plan to purchase accumulationconveyor.Planning for the futureOnce again, caution seems to be thewatchword when it comes to futureinvestments in conveyor and sortationsystems: 26% of respondentssaid they were taking a wait-and-seeapproach, having no present plans toinvest. That compares to 22% in lastyear’s survey.Meanwhile, only 14% of respondentsplan to spend more on conveyorsin 2011, compared to 23% in 2010.Another 17% said their overall materialshandling budget had been cut in2011, compared to 15% in 2010.Just how large will those investmentsbe? Well, 67% of respondentsreport that they will spend $100,000or less. Only 8% expect to spend morethan $1 million on conveyor technologiesover the next 18 months.On a positive note, those planningto spend more than in the previousyear will increase their spend by 35%.And while roughly 50% of respondentsplanning to buy say they are currentlyevaluating suppliers, between 20% and25% are currently purchasing theirsystems.What’s more, a majority of conveyorpurchases appear to be part of an integratedsystem. Only 37% said they werepurchasing conveyor equipment only.And, 69% indicated their systems arepart of a facility expansion rather thana new facility. That is up from 61% in2010.The majority of those purchases comedirectly from a conveyor manufacturer(54%) or conveyor distributor (45%).The same holds true when it comesto replacement or spare parts, with43% purchasing directly from a manufactureror a manufacturer’s Web site(25%), while 43% purchase from theirdistributor or use their distributor’sWeb site (19%).Reliability countsIn an era where customer service isparamount, it will come as no surprisethat reliability was considered themost important factor in a conveyorpurchase (96%) by more readers thanany other attribute. Price and designflexibility were the second most importantfeatures (78% for each), followedby equipment availability and the reputationof the supplier (77% for each).Conveyor users also appear to stickwith the tried and true: Just 40% of ourreaders said they were interested inleading edge technology.When it comes to features,<strong>Modern</strong>’s readers valued design flexibility(57%), low noise emission(43%), low energy/power consumption(42%), individually poweredzones (40%); design flexibility (55%);and clean roller technologies (29%) intheir systems.26 F e b r u a r y 2 0 1 2 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com