Conveyor Outlook Strong

Trends indicate growth for 2007

By Thomas Easterhouse

The current outlook for the North American Conveyor Industry remains strong, according to the viewpoints of executives representing member companies at the September 2006 Fall Meeting of the Conveyor Equipment Manufacturers Association (CEMA).

Orders for new equipment remain strong year over year in all market segments, particularly in Bulk Material Systems and Unit Handling Systems for distribution centers. CEMA compiles statistical data provided by all member companies for both orders and shipments for specific segments of the conveyor industry, and this data supports an optimistic viewpoint for the industry going forward.

The accompanying graphs plot the monthly order and sales trends reported by CEMA member companies from July 2004 through June 2006. Trends are totaled and graphed for all product classes in Bulk Handling Equipment, Unit Handling Equipment and Total CEMA members. An electronic version of this document and graphs is located on the CEMA Web site at http://www.cemanet.org/news/press/PressReleases/Fall06.pdf.

CEMA tracks new orders and shipped sales volume in seven classes of Unit Handling Equipment and five classes of Bulk Handling Equipment. Year-to-date figures for the first half of 2006 versus the same period in 2005 show that overall billed sales (shipments) increased 2.8 percent, with total shipments of $2.6 billion. CEMA estimates industry orders (bookings) of $2.5 billion in the same period.

The information on Bulk Material Conveyors show that Bulk Equipment bookings were up 50 percent and shipments up 56 percent. Bulk Components were also strong, with bookings up 8 percent and shipments up 13 percent. Orders for Bulk Accessories were up 6 percent and shipments 15 percent. Tow Conveyor shipments were up 3 percent, and Unit Handling Trolley Conveyors sales were up 1 percent.

As I mentioned above, the viewpoint is positive for 2007 and beyond. That upside is based largely on continued capital spending worldwide on infrastructure, along with a good dose of eternal optimism. The conveyor industry should see continued growth in coming months

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The MHEDA Journal • First Quarter 2007 • Volume 36, No. 1 • Contents are Copyright © Data Key Communications, Inc.
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