The MHEDA Journal - First Quarter, 2013 - (Page 34)

FORECAST Growth in the Wake of Uncertainty Strategies for growing in a depressed environment INDUSTRY DISTRIBUTORS E BY STEVE GUGLIELMO very year, The MHEDA Journal randomly polls dozens of MHEDA members across North America to gather their economic forecasts for the coming year. Members discuss what trends have emerged, what markets have gotten will go into effect next year, such as the Patient Protection and Affordable Care Act (“Obamacare”), the looming “fiscal cliff,” the debt-ceiling, continued EPA regulations and the proposed expiration of tax cuts enacted under President Bush. stronger or weaker and any outside influences that could impact the industry – positively or negatively. While several trends and topics were discussed, the issue on everybody’s mind this year was the 2012 election. Would President Obama retain the White House or would Republican challenger Mitt Romney unseat him to become the 45th president of the United States? In many cases, the answer to that question swung projections dramatically. One member with a strong economics background went so far as to predict a 40 percent economic swing between a Romney presidency and an Obama second-term. The consensus among members is that this election was a choice between pro-business and pro-government policies. We now know that President Obama was re-elected and that the Democrats retained control of the Senate, while Republicans retained control of the House of Representatives. In other words, we find ourselves in the same place we have been since 2010. What remains to be seen, however, is the impact of policies and taxes that 34 MHEDA | SLIGHT GROWTH AHEAD It isn’t all bad news, however. Most members expect to see growth in 2013, though perhaps less than it could have been. As a matter of fact, 69.5 percent of distributors anticipate their sales will be better this year than they were last year. Compare that to 65 percent of dealers who expected growth in 2012. A further 19.5 percent expected their sales to be the same in 2013 as they were in 2012, though many of those dealers had record years in 2012 that they expect to replicate this year. The four major segments – industrial trucks, engineered systems, storage & handling and diverse products – all expected a net growth in sales compared to last year. Storage & handling led the way with an expected 5.9 percent increase and 80 percent of dealers expecting growth. Compare that to IT dealers who expect a 4.05 percent growth with only 61 percent of distributors expecting an uptick next year. As we have seen in the past, MHEDA members are resilient and will do whatever is necessary to ensure growth and prosperity. Though conditions may not be idea l, they are also not nearly as dire as the economic

Table of Contents for the Digital Edition of The MHEDA Journal - First Quarter, 2013

President’s Perspective
From the Desk of Liz Richards
Ask Your Board
Member Profile
MHEDA Member Profile
At Work
2013 Industry Forecast
Distributors Forecast
Suppliers Forecast
MHEDA Members Exhibit at ProMat
MHIA Expects Slow Growth in 2013
Modest Growth for Industrial Trucks Sector
Cautious Optimism in Conveyor Industry
Get Your Game On
New Members
Spotlight on Association News
MHEDA University Calendar
MHEDA Milestones
New Products
Index of Advertisers by Product Category

The MHEDA Journal - First Quarter, 2013