The MHEDA Journal - First Quarter, 2014 - (Page 57)

had to add to pension reserves because low interest rates have raised pension liabilities. Finally, 64 percent indicated that the Fed's tapering of its QE program will have a moderately negative impact on the economy; 30 percent expect little, if any, impact. MAPI's Composite Business Outlook Index is a historically accurate near-term preview of business prospects for the manufacturing sector and is a leading indicator of the Federal Reserve's industrial production index. MAPI, founded in 1933, contributes to the competitiveness of U.S. manufacturing by providing economic research, professional development, and an independent, expert source of manufacturing information. MAtEriAL HAnDLinG MHI Predicts Double-Digit Growth BY GEORGE PREST, CEO, MHI T he material handling industry has seen solid recovery since the recession and that growth should continue into 2014. Using MHI's Material Handling Equipment Manufacturing (MHEM) forecast as a proxy, material handling equipment orders are forecasted to grow 7 percent in 2013 and 11 percent or more in 2014. Risks certainly remain, but they are not new. We expect these fundamentals to favorably support MHEM expansion through 2013 and 2014, setting the stage for continued expansion in 2015. The recovery is gaining momentum, which can be seen in the manufacturing and supply chain industries. Material handling equipment and systems purchases derive from the need for enterprises to anticipate and match changes in demand to yield improvements in efficiency, throughput and visibility. Businesses are wellpositioned to make these investments. Firms have low debt, are profitable and have relatively high utilization rates. Material handling equipment shipments are forecasted to grow 5 percent in 2013 and 10.8 percent in 2014. Domestic demand (shipments plus imports less exports) are estimated to grow 5.2 percent in 2013 and just more than 11 percent in 2014. MHEM trade growth slowed by more than 50 percent in 2012, reflecting reduced U.S. demand and serious problems in foreign markets. Import growth in 2012 was 17.9 percent, down from 37.7 percent in 2011. Export growth was 11.2 percent in 2012, down from 26.2 percent in 2011. MHEM imports and exports are expected to slow dramatically in 2013 and rebound modestly beginning mid-2014. Positive signs ahead include: * Leading indicators are pointing up * Employment is rising * Retail sales are rising * Construction is improving * Less foreign energy dependence However, there are concerns for 2014: * Uncertainty created by Washington, DC * Stagnant wage growth * Ongoing high unemployment * Supply chain workforce shortage * The impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on small business when it comes into effect in January * Higher payroll and Affordable Care Act taxes Trade Events are Positive Indicators MODEX 2014 will be presented in Atlanta from March 17-20 at the Georgia World Congress Center. This expo has seen positive growth and will showcase an expanded show floor of 250,000 square feet. We are also seeing great interest in our exhibit space selection for ProMat in 2015. Such activity signals not only confidence in the economy and our industry, but also the value MHI brings to our members and the end user community. George Prest is CEO of MHI, located in Charlotte, North Carolina, and on the web at www.mhi.org. CEMA Sees Slight Decrease COnVEYOrs BY ROBERT REINFRIED, EXEC. VICE PRESIDENT, CEMA T he Conveyor Equipment Manufacturers Association (CEMA) tracks new orders and shipped sales volume in nine classes of unit handling equipment and four classes of bulk handling equipment. The executives representing CEMA member companies who attended the Fall Meeting expressed cautious concern for the remainder of 2013 noting that some softening was to be expected following record years in 2011 and 2012. As a result, the updated forecast is a 2 percent decrease in 2013 shipments (changed from March 2013 forecast of a 5 percent increase). CEMA reports that overall industry orders (bookings) for the first 6 months of 2013 decreased 3.72 percent compared to the same period in 2012, with total orders of $5.21 billion. CEMA estimates industry billed sales (shipments) for the first 6 months of 2013 decreased 1.72 percent compared to the same period in 2012, with total shipments of $5.09 billion. Unit Handling orders were up 8.17 percent and shipments were up 12.20 percent. In the Bulk Conveying area, orders were down 16.76 percent and shipments were down 16.56 percent. Founded in 1933, CEMA is the trade association of 127 leading North American conveyor equipment manufacturers and engineering firms. the MHEDA Journal | First Quar ter 2 014 57 http://www.mhi.org

Table of Contents for the Digital Edition of The MHEDA Journal - First Quarter, 2014

President’s Perspective
From the Desk of Liz Richards
Editor’s Note
MHEDA’s 2014 Board of Directors and MBOA
Ask Your Board
MHEDA Member Profile
At Work
Distributor Forecast
Supplier Forecast
Manufacturer Forecast
Material Handling Forecast
Conveyor Forecast
Industrial Trucks Forecast
MHEDA: 60 Years of Moving Members Forward
Don Chance Retires From NMHG
Convention Preview
The New and Improved 2014 MHEDA Disc Report
New Members
Spotlight on Association News
MHEDA University Calendar
MHEDA Milestones
Index of Advertisers by Product Category

The MHEDA Journal - First Quarter, 2014

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