2018 Forklift Market Analysis

2018 Forklift Market Analysis

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  Forklift Market Analysis2018
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  Tri-Lift has beenserving the Material Handling Industry since 1968. Our passion is to provide extraordinary service by responding promptly to our customer's needs and providing solutions that will enhance their business. Our people will maintain the highest level of training available. We will communicate with empathy, urgency, honesty, and with accurate and clear information. Our mission is to blend our experience, traditional values, loyalty, and commitment with progressive solutions; now and for generations to come. Tri-Lift will continue to be the leader in providing innovative products and extraordinary services. Our team's extensive experience and world-class vendors are dedicated to building long-term relationships with our customers based on honesty, value, and a mutual respect. Tri-Lift was founded with the understanding that our success goes hand in hand with our customer's success. 1 Our Vision Tri-lift will be the trusted long-term material handling partner in the market. Our purpose is to enable our customers to achieve their goals utilizing our experience, honest communications and customized solutions. We are driven by our commitment to quality, integrity, and dedication to our core values. Our Mission Tri-lift NC will deliver proven industry-leading products and services designed to enhance our customers business. Our stakeholders, customers, employees, manufacturers, and community will benefit from the collective knowledge and passion of our entire team. We will help inspire, educate and problem-solve for our customers in a manner unmatched in the market. Our Values Trust/Integrity – Do the right thing. Passion – Must possess a positive attitude, energy and a commitment to the mission and vision. Professional – At all times we will be reliable, consistent and have a constant desire to improve our knowledge and capabilities. Team – Work as one. Who We Are
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  The forklift manufacturingindustry is very susceptible to economic downturns as shown in the chart above. This is indicative of the logistical nature of the industry. Due to the crucial role forklifts play in moving consumer goods. The industry serves as a bellwether for the economy. As consumers cut back, factory shipments decline rather dramatically. U.S. factory shipments are up 56% from 1994 to 2017. Forklift shipments grew at an average of 3 percent year-over-year during this period. However, this observation period included two U.S. recessions (shaded in grey). Year-over-year factory shipments declined by 24 percent in 2001 during the onset of the 2001 recession. This was followed by another decline of 9 percent in 2002. Likewise, a similar collapse can be observed leading up to the 2008 recession. Factory shipments fell 8 percent in 2007, 14 percent in 2008 and an astonishing 43 percent in 2009. The forklift market has since rebounded from a 23 year low of 85,784 units shipped in 2009 to 212,002 units shipped in 2017, up 147 percent. Year-over-year growth has averaged 13 percent since 2009. As shown in the chart below, growth trends are consistent across the three major segments of material handling equipment that includes electric riders (class 1 &2), motorized hand (class 3) and internal combustion riders (class 4 &5). 2
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  Internal combustion shipmentsdominated the market pre-2008 recession. However, the economic downturn served somewhat as an equalizer, shipments collapsed and converged around 28,000 units shipped across major segments in 2009 (see chart 2). Since the end of the recession, all classes have shared in the economic growth. Internal combustion (class 4 & 5) and electric rider (class 1 & 2) reached parity with both accounting for 34 percent of factory shipments in 2016 (see chart 3). The post-2008 recession-era can be easily defined by the rise of the electric rider. Improvements in lithium ion battery technology have greatly improved the quality of the electric rider. 3
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  4 The composition ofU.S. factory shipments has gradually changed over the last 24 years. When considering all 5 major classes. In 1994 internal combustion was by far the most popular form of power for forklift manufacturers accounting for 48 percent of U.S. factory shipments. In 2016, classes 4 & 5 internal combustion powered forklifts accounted for 34 percent of total factory shipments (see chart 3). Furthermore, the numbers behind the numbers are most interesting. Orders for Class 1 units have increased 38% clearly replacing orders for class 4 which saw no growth. Next line rise in electric class 1 units. This is primarily due to the rising productivity of electric class 1 units.   TThe steady shift towards electric experienced since 2008 was interrupted in 2014 and 2017 due to a spike in class 5 demand. These two years are unlikely to represent a reversal in the trend to electric. The warehouse product segment is expected to drive growth for electric material handling equipment. This is primarily due to developed regions such as North America and Europe pivoting towards e-commerce and environmental sustainability initiatives.  Outside Expert Opinion: “I might have been a bit cool on fuel cells a few years ago, but I think they are starting to get more traction…It’s now worth taking notice of those opportunities." - Brett Wood, chairman of the Industrial Truck Association (ITA) and president and CEO of Toyota Material Handling North America.  Brett Wood
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  5 As shown inthe table above, when asked about trends in electric powered forklift, major producers are expecting to move more towards lithium-ion batteries and away from lead- acid batteries and fuels cells. However, as shown in the table below, internal combustion fuel types are generally not expected to change much over the next three years.
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  6 Market Risk &Outlook As shown in the first chart, the forklift industry, like most sectors of the economy, is extremely sensitive to economic downturns. Current talks of trade restrictions such as implementing and/or increasing tariffs between developed and developing nations should be viewed as concerning.  Fortunately, the U.S. domestic economy is strong currently boasting a low unemployment rate of 4.1 percent in conjunction with the highest consumer confidence we’ve seen in decades. This is a great sign for U.S. based manufacturing.  Likewise, new orders of durable goods peaked in 2014, totaling over $236 billion in value. Although this figure decreased slightly in 2015 and 2016, new orders of durable goods rebounded in 2017 with over $235 billion in goods ordered. The industry as a whole is trending towards continued growth in 2018. Additionally, as shown in the figure below, industry investment is likely to increase. However, investment spending on forklifts and lift trucks is expected to be slightly lower in 2018 than in 2017. However, there is little doubt that the share of electric equipment purchased will increase in 2018 and beyond.
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  The Industrial TruckAssociation is comprised of industry manufacturers of lift trucks, tow tractors, rough terrain vehicles, hand-pallet trucks and automated guided vehicles throughout the U.S., Canada and Mexico. ITA represents 90 percent of the forklift manufacturers in the United States and Canada. The group conducts a Business trend survey amongst major global manufactures. ITA 2017 United States Factory Shipments ITA 2016 Business-Trends-Survey ITA 2015 Business Trends Survey ITA 2014 Business Trends Survey https://www.indtrk.org/market-intelligence Modern Materials Handling reaches the largest and most highly qualified audience of executives, distribution center professionals and engineers involved in buying/specifying materials handling equipment and services.  We deliver an estimated audience of over 132,000 individuals through our web site, email newsletters, printed magazines, online webcasts/conferences and market- defining research.* Top 20 industrial lift truck suppliers, 2017 https://www.mmh.com/article/top_20_lift_truck_suppliers_2017 Top 20 industrial lift truck suppliers, 2016 https://www.mmh.com/article/top_20_lift_truck_suppliers_2016 Peerless Research Group’s (PRG) e-mail survey questionnaire was sent to readers of Logistics Management and Modern Materials Handling in January of 2018, yielding 315 qualified respondents. The respondents were from sites whose primary activity is manufacturing (36%), corporate headquarters (28%), warehousing and distribution (24%), as well as warehousing supporting manufacturing and other. 2018 Warehouse and Distribution Center (DC) Equipment Survey https://www.logisticsmgmt.com/article/2018_warehouse_distribution_center_equipment_survey _automation_robotics_lea 7 Sources & References