Modern Materials Handling - April 2011

Di@blogbest of Modern’s blogsCompany Briefings | Bob TrebilcockProMat 2011: Was that a show orwhat? www.mmh.com/blogsSTATE OF THE INDUSTRYMaterials handlingindustry reboundsBY BOB TREBILCOCK, EXECUTIVE EDITORTHE NUMBERS FROM MHIA’S ANNUALSTATE OF THE INDUSTRY PRESSCONFERENCE PAINT A PICTURE OFWHY MATERIALS HANDLING SPENDINGHAS BEGUN TO REBOUND FROM THERECESSION THAT BEGAN IN 2008.$75 BILLION. That could be themost important figure reported bythe Material Handling Industry ofAmerica (MHIA), sponsor of ProMat,at its annual State of the Industrypress conference last month atProMat 2011.“That figure represents the capitalspending plans of ProMat attendeesover the next 18 months,” saidGeorge Prest, chief operating officerfor MHIA. That’s right, ProMat attendeessay they plan to spend $75 billionon the materials handling andinformation handling technologiesthat were on displayat this year’s show in the nextyear and a half.29%. That could be thesecond most important figurereported by MHIA. That representsthe increase in pre-registrationsfor this year’s eventover the 2009 show.Taken together, the numberspaint a picture of whymaterials handling spendinghas begun to rebound fromthe recession that began in2008. In fact, the chart of economicactivity for the industryover the last few years looksvery much like a V-shapedrecovery, according to Prest.Material Handling EquipmentManufacturers (MHEM) report thatnew orders grew by 18% in 2010 over2009. Those same manufacturers areforecasting growth of 11% to 12% for2011 to 2012. MHEM shipments—theactual deliveries of materials handlingequipment and systems—grewbetween 6% and 7% in 2010 and arealso forecast to grow by 11% to 12%in 2011 to 2012.Finally, MHEM Domestic Demand,a figure defined as shipments todomestic customers plus imports ofequipment by domestic customersless export shipments, grew 3% to4% in 2010, but is forecast to grow11% to 12% in 2011. MHIA is alsoforecasting strong export growth in2011.“The buying power of our attendeesis the primary reason there’s a lotmore activity and optimism on thefloor this year over the 2009 show,”Prest said.Larry Strayhorn, chairman of MHIA, cuts the ribbon to kick off the openingof both ProMat and Automate last month.mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 1 9