Forklift players anticipate improved economy

United States  
Thursday, 20 May 2010

A number of North American suppliers are seeing improvements in the economy, according to a Forkliftaction.com News survey.

Dealers for Clark Material Handling Co report "increased activity across all aspects of their business inclusive of parts, service and rental", says Scott Johnson, director of dealer services. "All three engines showing improved results is a great sign that there is some recovery occurring." Johnson likes what he sees. "While two months do not make a trend, the last 60 days have been very encouraging," he says. "The trend over the last six months is also heading up."
 Clark Material Handling believes that, in general, forklift demand is an indicator of the economy’s direction in North America. "While it will take a few quarters of solid performance before we breathe easier, the signs are there that things are improving," Johnson says.

The North American unit of forklift attachments manufacturer Bolzoni Auramo Group also perceives continuing improvement in the economy and forklift industry.
"If you went strictly by [industry] numbers for the first quarter, you could conclude the recession is over, and we are headed back to better times," says Ronnie Keene, vice president of sales and marketing with Bolzoni Auramo Inc in Homewood, Illinois. The report of comparable first-quarter order increases for Class 1, 4 and 5 forklifts "is a great start for 2010".

Keene believes that forklift demand is an indicator of the economy's direction. "I remember specifically discussing with colleagues the sudden slow quote activity and drop in sales during the month of December 2007," he recalls. "After so many months of good quote activity and orders, not one of us thought about the prospects of the economy going into such a deep recession. The economy now appears headed up and in the right direction. I believe the forklift industry will do the same."

"The larger customers are in a better financial position to purchase and invest in needed equipment. The small end users continue to have difficulty obtaining financing, and this will affect local dealer sales well into 2010," he suggests.

As previously reported {statlink|1|(Forkliftaction.com News #460)}, the Material Handling Industry of America of Charlotte, North Carolina predicts during 2010 that US orders for materials handling equipment will increase 6% to 8.5% and US shipments will grow 1% to 2%. Both projected measurements constitute a modest boost after dramatic 2009 decreases.