A Glimpse Of What’s To Come
MHEDA members look at trends to watch in the next decade.
"In what ways will the material handling industry be different in 10 years than it is now?” This question was posed to more than 70 MHEDA distributors as part of the 2009 Industry Forecast. Members showed their typical insight, listing more than 25 ways they thought the material handling industry would change. The predictions essentially fell into five categories: consolidation, environment, technology, operations and demographics.
Consolidation
This was the most oft-cited reply. Members see the trend toward industry consolidation, of both distributors and manufacturers, continuing throughout the next 10 years. Combining of customers, particularly larger ones, is another area to watch for.
| 10 Bold Member Predictions |
| 1. Vendor consolidation will continue. |
| 2. There will be a greater reliance on Web-based sales. |
| 3. The industry and its products will become even greener. |
4. Independent distributors will be fewer in number and carry multiple brands. |
| 5. Imported products will be more available and reliable. |
6. Continued consolidation of customers will increase competition. |
| 7. National accounts will be more prominent. |
| 8. New industries will emerge for members to sell to and serve. |
| 9. Diagnostic software will become even more proprietary. |
10. The narrow-aisle market will grow as real estate becomes less available. |
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Environment
The “green” movement is already in full swing, and distributors don't expect this trend to stop any time soon. Members listed development of new fuel alternatives and power sources and more demand for electric units with declining demand for IC trucks as potential advancements.
Technology
As the digital age races forward, technology will continue to impact the industry. Increases in paperless processes, robotics, Web-based selling, exclusive proprietary diagnostic software, robotics and product specialization were all areas of note mentioned by distributors.
Operations
The consolidation mentioned above will lead to fewer one-brand distributors, more national accounts and more requests for turnkey solutions. Operational trends to watch include reliance on consultants, cross-docking replacing inventory stocks, more service-oriented customers and leaner strategies.
Demographics
More people will be on the planet, and younger, college-educated people will be entering the industry in droves. There will be new industries to serve as times change, increased competition from overseas competitors and better-informed buyers.
Of course, nobody really knows. Ten years ago, “9/11” wasn't yet in the lexicon and “green” meant money, not the environment. Regardless of what happens, one thing's for sure—MHEDA members will be there, making sales and service calls every step of the way.
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