Cycle Dynamics

What goes around comes around in the material handling business. Although material handling equipment manufacturing will decline 12%-14% in 2002, full-year positive growth in new orders can be expected in 2003 at the rate of 7%-9%, according to the Material Handling Industry of America’s updated MHEM forecast. The May 2002 update relied on statistical data provided by a panel of 30 forecasters from the National Association for Business Economics.

Consistent leading indicators for several cycles over the eight-year period from 1994 to 2001 show that 9-21 months after an economic series bottoms out, material handling equipment manufacturing consistently will do the same. Each of the available leading indicators has now entered the next cycle phase, and projections of an uptick are based on these macroeconomic trends.

The update indicates that profits and business investment are current weaknesses in the material handling equipment manufacturing sector. In spite of the recent economic downturn, especially since Sept. 11 last year, the forecast calls for 3.5% growth in manufacturing through the end of 2003.

The economists expect the MHEM cycle to begin an upturn in the second quarter of 2002, continuing into 2003, with production volumes for that period likely to be typical of levels for 1995-1999. One consistent note: The net balance of trade will remain negative, as it has since 1998.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.