Material Handling Equipment Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,450 material handling equipment manufacturers in the US produce a wide range of custom products including elevators, escalators and moving walkways; conveyors and industrial and commercial carousels; grain and mine elevators and conveyors; pneumatic tube conveyors; and overhead cranes, hoists, winches and monorail systems. They also produce standard products, including dollies and hand trucks; forklifts and pallet movers; industrial cradles, cherry-pickers, and bomb lifts; wheelbarrows, shopping carts and cart corrals, valet carts and dumbwaiters. As a result, the industry’s customer base is very broad.

Fending Against Foreign Competition

US manufacturers compete in the domestic market against foreign imports.

System Automation and Flow Analysis

As technology advances, so too are the capabilities incorporated into material handling equipment.

Industry size & Structure

A typical material handling equipment manufacturer operates out of a single location, employs 60 workers, and generates about $23 million annually.

    • The material handling equipment manufacturing industry consists of about 1,450 companies, which employ about 87,000 workers and generate about $34 billion annually.
    • The elevator and escalator segment accounts for 11% of firms and 12% of industry revenue. The conveyor and conveying equipment segment accounts for 49% of firms and 32% of revenue. The overhead crane, hoist and monorail system segment represents 18% of firms and 23% of revenue. The segment that produces carts, stackers, lifts and cradles accounts for 22% of firms and 33% of industry revenue.
    • The conveyor and conveying equipment segment is the least concentrated with half of its revenue attributed to its top 50 firms. The other three segments are highly concentrated with half of revenue attributed to the top 4 firms.
    • Large companies include Material Handling Systems, Dematic, Bastian Solutions, DMW&H, Crown, Yale Materials Handling, Rees-Memphis, Hyster, Americana, and divisions of Honeywell, Caterpillar, and Komatsu.
                                    Industry Forecast
                                    Material Handling Equipment Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    Apr 22, 2022 - Rising Demand for Conveyor Systems
                                    • The global market for conveyor systems, which lagged during the pandemic, is poised for recovery. Increasing demand from commercial and industrial facilities including manufacturers, e-commerce, distribution centers, and warehouses will drive the market, which is projected to grow from $5.6 billion in 2022 to $7.76 billion in 2029, a CAGR of 4.8% over the forecast period, according to Fortune Business Insights. The conveyor and conveying equipment segment accounts for nearly a third of material handling distribution equipment revenue.
                                    • Supply chain frailties exposed by the global pandemic have manufacturers increasing investments in supply chain transformation and innovation. A recent survey of more than 1,000 supply chain and manufacturing leaders conducted by MHI and Deloitte Consulting found expected investment levels in supply chain innovation to be rising sharply. Of the 64% of respondents increasing investments, 66% said they would spend more than $1 million by the end of 2022. Warehouse automation, digitalization, and analytics are major focuses for innovation.
                                    • The industry is raising the price of its products, due to strong demand and the need to cover rising material costs of metals and other components. Year over year, prices climbed 14.3% in January 2022, 15.5% in February, and 15.8% in March. Metal costs are on the rise due to global concerns over shortages resulting from trade bans and sanctions on Russia for its invasion of Ukraine.
                                    • The value of material handling equipment manufacturers’ new orders climbed 36.8% in January 2022 from a year earlier, but declined 5.9% in February versus the prior month. The high demand and order levels are driving up material handling equipment manufacturers’ backlogs, which increased 16.2% in value in January 2022 from a year earlier.
                                    • Employment in the material handling equipment manufacturing industry has recovered from its pandemic slump. Industry employment jumped 7.8% year over year in February 2022 and was up 4.4% from pre-pandemic February 2020. The industry is hiring to increase production and fill orders.
                                    • The US may need an additional 1 billion square feet of new industrial space by 2025 to keep up with demand, according to commercial real estate services company JLL. "The industry is effectively sold out through the next year," Chris Caton, managing director of global strategy and analytics at Prologis, said in late 2021.
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