Material Handling Equipment Manufacturers NAICS 333921, 333922, 333923, 333924

May 30, 2026 - Merger Would Create World’s Largest Elevator Company

• In a deal that would create the world’s largest elevator and escalator supplier by sales (ahead of US giant Otis), Finland’s Kone has agreed to acquire its Germany rival TK Elevator, for about $24 billion, The Wall Street Journal reports. The tie-up could reshape competition across the global and US elevator manufacturing industry by potentially increasing pricing power, scale, and service capabilities in both new equipment and maintenance markets. For US elevator manufacturers, the merger may intensify competition for large commercial and infrastructure projects while accelerating investment in smart building technology, modernization services, and predictive maintenance systems. The merger could also drive additional consolidation across the industry as companies seek greater efficiency and global reach. The deal highlights continued demand for scale and recurring service revenue in the elevator industry.
• Heavy equipment sales are falling amid high interest rates, fewer infrastructure projects, and tariff pressures that have slowed growth and decreased jobs in the sector, The New York Times reports citing a new report from the Association of Equipment Manufacturers (AEM). Forklift manufacturers, for example, are facing margin pressure, declining demand, and production challenges due to tariffs layered on top of broader industry headwinds. Tariffs on steel, aluminum, and imported components have made it more expensive to build forklifts in the US, in some cases making it cheaper to manufacture overseas and import finished units. Forklift manufacturer Hyster-Yale reported significant financial impact, including tens of millions in tariff costs and reduced operating profits, while also seeing weakening demand as higher prices discourage buyers. Tariffs are compounding other pressures, including high interest rates, reduced construction activity, and softer agricultural demand, further shrinking order volumes.

• Overall spending on nonresidential buildings (not adjusted for inflation) is expected to increase only 1.7% in 2025 and grow very modestly to just 2% in 2026, according to the American Institute of Architects Consensus Construction Forecast, which gathers projections from contractors, banks, and rating agencies, among others. The commercial sector outlook is projected to increase 1.5% this year, rising to 3.9% in 2026. Construction spending on manufacturing facilities is projected to decline 2% this year and again by 2.6% next year. Institutional facilities are expected to be the strongest sector with projected gains of 6.1% in 2025 and 3.8% in 2026. The AIA report cites tariffs and high levels of economic uncertainty for the gloomy outlook. An even greater concern than tariffs is the impact immigration policy might have on labor markets and on construction specifically, per the report.
• Producer prices for material handling equipment manufacturers rose 4.8% in April compared to a year ago, after rising 2.8% in the previous April-versus-April annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices for makers of materials handling equipment have risen steadily for five years to their current record high level. Meanwhile, employment by the industry dipped 0.7% year over year in March, while the average wage at machinery manufacturers rose 2.9% YoY in April to a new high of $31.16 per hour, BLS data show.