Given that forecasts for GDP, investment and consumption have been downgraded to reflect the growing sentiment that U.S. and global economies are fragile, the Material Handling Industry of America has reduced its forecast for Material Handling Equipment Manufacturing (MHEM) new orders, shipment and domestic demand for 2012.
MHEM new orders grew 17.1% in the first half of 2011 over 2010 first half. The outlook for 2011 is for growth at 11.0% and for 2012 at 7.0%.
MHEM shipments grew 6.1% in 2010. The revised outlook is for 2011 to close at around 14.0% and for 2012 to grow in the 7.0% to 8.0% range.
MHEM domestic demand grew 13.1% in the first half of 2011 vs. 2010. Domestic demand (shipments plus imports less exports) will likely mirror shipment growth in 2011; exports will be stronger than imports in 2011 and 2012. Domestic demand in 2012 is forecasted at around 5.5%.
“While continuing to expand on an annual rate of change basis, Material Handling Equipment Manufacturing has shifted from the ‘accelerating growth’ to the ‘decelerating growth’ phase and may continue to vacillate between these phases over the next nine to fifteen months as in prior expansion cycles,” MHIA stated in a recent briefing. “Other key sectors are shifting to other phases of this cycle as well.”