The MHEDA Journal - First Quarter, 2018 - 45

DISTRIBUTORS

For the first time in the last seven
years, there was not a unanimous
expectation of growth across all industry segments. While the Industrial
Truck, Engineered System and Diverse
Product Mix segments all expect strong
growth in 2018, Storage and Handling
companies expect to take a step back
this year. However, all geographic
regions expect growth in 2018, with
the Northeast surprisingly the most
bullish going into the year after being
the most tepid going into 2017.
Last year, the forecast took place
around the election, which resulted
in a unified Republican government.
This year, we survey the industry amid
uncertainty about tax and healthcare
legislation. Many respondents qualified
their answers with caveats about the
tax bill falling through. The GOP has
been touted as the "party of business"
for many years and respondents seem
to be operating under the impression
that the unified government will create
a pro-business atmosphere.
The following are responses from
MHEDA dealers across North America
about what they expect to see in 2018.
Respondents are grouped by region,
but to see anticipated growth by segment of the industry, see the graph
on page 46.

Northeast
In 2015, '16 and '17, the Northeast
was the least optimistic region in the
country. Last year, the Northeast predicted a meager 3.86% growth. This
year, however, the Northeast is the
most optimistic region we surveyed,
with an anticipated 8.5% growth.
Aftermarket services will be the driving force behind an anticipated 1-2%
growth for Mid Atlantic Industrial
Equipment, according to CFO/Principal
David Lang. That follows closely
with a predicted flat market for the
industry as a whole. Mid Atlantic will

introduce a new line of equipment in
the first quarter of the year and also
hopes to add technicians to its staff.
An increased emphasis on marketing will allow Mid Atlantic to outpace
Federal Reserve expectations in the
coming years.
AJ Jersey, Inc. President David
Rizzo expects sales to be level to up
2%. A strong local economy combined
with the rising imports to New Jersey
through the state's three ports will help
contribute to that growth. "There are
many industrial sites being started this
quarter, and they will be filled with
new businesses or expanding ones,"
says Rizzo. "Also, warehouse space
is at a premium in New Jersey with
nearly 100 percent occupied for the first
time in a decade." While Rizzo predicts
another robust year for the industry,
he cautions that the implementation
of robotic labor is a looming issue for
the industry.
Liftech Equipment CFO Michael
Vaughan expects 10 percent growth in
2018 on the back of accretive impact of
acquisitions. Vaughan expects equipment sales revenue to be flat, which
follows Vaughan's expectation for
the industry at large. The company
will add additional staff to handle the
administrative burden of large fleet
accounts, as well as a Digital Marketing
Specialist. "Customers are looking for
distributors to handle more and more
of the administrative burden of fleet
management," he says. "They are also
stretching payment terms." Vaughan
expects the consolidation trend to
continue and says that if it extends

Warehouse space is at a
premium in New Jersey
with nearly 100 percent
occupied for the first time
in a decade.

to manufacturers, it could force distributors to choose between existing
product lines.
James Thomson, COO of Hurricane
Industrial Equipment, Inc., also expects
10% growth in 2018. The driving factors behind that growth are parts and
service combined with new opportunities with major account equipment
sales. The 4th Quarter of 2017 trended
higher than anticipated, which also
contributed to the 10% expectation in
2018. Hurricane is looking to add service technicians as quickly as possible
to help accommodate that growth. As
a Canadian company, the exchange
rate is something that could damper
that growth in 2018.
Alliance Material Handling, Inc. is
forecasted to increase sales by 15%,
according to President and CEO
Thomas Albero. Consistent with
industry expectations, Albero expects
Alliance's systems to see the largest
increase, with new, used and aftermarket sales also contributing. Albero
expects the second half of the year to
be stronger than the first, with tax
reform contributing, if it comes to
pass. The most important investment
that Alliance will be making in 2018
is a new ERP System. As with many
MHEDA members, consolidation has
had an impact on Alliance as well.
"The local dealer has become huge,
causing bigger market share pressure
as they have more funds to do crazy
deals," says Albero.
Hooper Handling expects growth
between 10 and 15 percent next year,
according to President Doug Ward.
New opportunities that emerged in
2017 are expected to continue to pay
dividends in 2018. The dealer will
add service technicians in the first
quarter to handle the robust growth
expectations. Hooper will outpace the
Industrial Truck market as a whole,
according to predictions. With multiple
The MHEDA Journal | First Quar ter 2 018

45



Table of Contents for the Digital Edition of The MHEDA Journal - First Quarter, 2018

Chairman’s Perspective
From the Desk of Liz Richards
Editor’s Note
MEET MHEDA’S 2018 BOARD OF DIRECTORS AND MBOA
MHEDA’S 2018 MATERIAL HANDLING BUSINESS TRENDS
Ask A MHEDA-NET Group
MHEDA Calendar
MHEDA MEMBER PROFILE
@WORK
WOMEN IN INDUSTRY
DISTRIBUTOR FORECAST
SUPPLIER FORECAST
MHI FORECAST
ITA FORECAST
CEMA FORECAST
ITR ECONOMICS FORECAST
2018 MHEDA CONVENTION SCHEDULE
THE RULE OF 72
New Members
Spotlight on Association News
MHEDA Milestones
Index to Advertisers by Product Category
Index of Advertisers by Alphabetical
The Last Word
The MHEDA Journal - First Quarter, 2018 - Intro
The MHEDA Journal - First Quarter, 2018 - cover1
The MHEDA Journal - First Quarter, 2018 - cover2
The MHEDA Journal - First Quarter, 2018 - 3
The MHEDA Journal - First Quarter, 2018 - 4
The MHEDA Journal - First Quarter, 2018 - 5
The MHEDA Journal - First Quarter, 2018 - 6
The MHEDA Journal - First Quarter, 2018 - 7
The MHEDA Journal - First Quarter, 2018 - 8
The MHEDA Journal - First Quarter, 2018 - 9
The MHEDA Journal - First Quarter, 2018 - 10
The MHEDA Journal - First Quarter, 2018 - Chairman’s Perspective
The MHEDA Journal - First Quarter, 2018 - 12
The MHEDA Journal - First Quarter, 2018 - From the Desk of Liz Richards
The MHEDA Journal - First Quarter, 2018 - 14
The MHEDA Journal - First Quarter, 2018 - Editor’s Note
The MHEDA Journal - First Quarter, 2018 - 16
The MHEDA Journal - First Quarter, 2018 - MEET MHEDA’S 2018 BOARD OF DIRECTORS AND MBOA
The MHEDA Journal - First Quarter, 2018 - 18
The MHEDA Journal - First Quarter, 2018 - 19
The MHEDA Journal - First Quarter, 2018 - 20
The MHEDA Journal - First Quarter, 2018 - 21
The MHEDA Journal - First Quarter, 2018 - 22
The MHEDA Journal - First Quarter, 2018 - 23
The MHEDA Journal - First Quarter, 2018 - 24
The MHEDA Journal - First Quarter, 2018 - 25
The MHEDA Journal - First Quarter, 2018 - MHEDA’S 2018 MATERIAL HANDLING BUSINESS TRENDS
The MHEDA Journal - First Quarter, 2018 - 27
The MHEDA Journal - First Quarter, 2018 - 28
The MHEDA Journal - First Quarter, 2018 - Ask A MHEDA-NET Group
The MHEDA Journal - First Quarter, 2018 - 30
The MHEDA Journal - First Quarter, 2018 - 31
The MHEDA Journal - First Quarter, 2018 - 32
The MHEDA Journal - First Quarter, 2018 - 33
The MHEDA Journal - First Quarter, 2018 - MHEDA Calendar
The MHEDA Journal - First Quarter, 2018 - 35
The MHEDA Journal - First Quarter, 2018 - MHEDA MEMBER PROFILE
The MHEDA Journal - First Quarter, 2018 - 37
The MHEDA Journal - First Quarter, 2018 - 38
The MHEDA Journal - First Quarter, 2018 - 39
The MHEDA Journal - First Quarter, 2018 - 40
The MHEDA Journal - First Quarter, 2018 - @WORK
The MHEDA Journal - First Quarter, 2018 - 42
The MHEDA Journal - First Quarter, 2018 - WOMEN IN INDUSTRY
The MHEDA Journal - First Quarter, 2018 - DISTRIBUTOR FORECAST
The MHEDA Journal - First Quarter, 2018 - 45
The MHEDA Journal - First Quarter, 2018 - 46
The MHEDA Journal - First Quarter, 2018 - 47
The MHEDA Journal - First Quarter, 2018 - 48
The MHEDA Journal - First Quarter, 2018 - 49
The MHEDA Journal - First Quarter, 2018 - 50
The MHEDA Journal - First Quarter, 2018 - 51
The MHEDA Journal - First Quarter, 2018 - 52
The MHEDA Journal - First Quarter, 2018 - 53
The MHEDA Journal - First Quarter, 2018 - SUPPLIER FORECAST
The MHEDA Journal - First Quarter, 2018 - 55
The MHEDA Journal - First Quarter, 2018 - 56
The MHEDA Journal - First Quarter, 2018 - 57
The MHEDA Journal - First Quarter, 2018 - 58
The MHEDA Journal - First Quarter, 2018 - 59
The MHEDA Journal - First Quarter, 2018 - 60
The MHEDA Journal - First Quarter, 2018 - 61
The MHEDA Journal - First Quarter, 2018 - 62
The MHEDA Journal - First Quarter, 2018 - 63
The MHEDA Journal - First Quarter, 2018 - 64
The MHEDA Journal - First Quarter, 2018 - MHI FORECAST
The MHEDA Journal - First Quarter, 2018 - 66
The MHEDA Journal - First Quarter, 2018 - 67
The MHEDA Journal - First Quarter, 2018 - ITA FORECAST
The MHEDA Journal - First Quarter, 2018 - 69
The MHEDA Journal - First Quarter, 2018 - 70
The MHEDA Journal - First Quarter, 2018 - 71
The MHEDA Journal - First Quarter, 2018 - 72
The MHEDA Journal - First Quarter, 2018 - CEMA FORECAST
The MHEDA Journal - First Quarter, 2018 - ITR ECONOMICS FORECAST
The MHEDA Journal - First Quarter, 2018 - 75
The MHEDA Journal - First Quarter, 2018 - 76
The MHEDA Journal - First Quarter, 2018 - 77
The MHEDA Journal - First Quarter, 2018 - 2018 MHEDA CONVENTION SCHEDULE
The MHEDA Journal - First Quarter, 2018 - 79
The MHEDA Journal - First Quarter, 2018 - THE RULE OF 72
The MHEDA Journal - First Quarter, 2018 - 81
The MHEDA Journal - First Quarter, 2018 - 82
The MHEDA Journal - First Quarter, 2018 - New Members
The MHEDA Journal - First Quarter, 2018 - Spotlight on Association News
The MHEDA Journal - First Quarter, 2018 - 85
The MHEDA Journal - First Quarter, 2018 - MHEDA Milestones
The MHEDA Journal - First Quarter, 2018 - 87
The MHEDA Journal - First Quarter, 2018 - Index to Advertisers by Product Category
The MHEDA Journal - First Quarter, 2018 - Index of Advertisers by Alphabetical
The MHEDA Journal - First Quarter, 2018 - The Last Word
The MHEDA Journal - First Quarter, 2018 - cover3
The MHEDA Journal - First Quarter, 2018 - cover4
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