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 Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation 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, which represent about 26% of the US market for material handling equipment.

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

                                    Recent Developments

                                    Nov 25, 2022 - Rising Salaries for Materials Handlers
                                    • The average salary increase for materials handling professionals reached a high of 8.1% in 2022, versus 6.1% in 2021, and 5.7% in 2020, a compensation survey of Modern Materials Handling’s subscribers conducted by Peerless Research Group finds. Driving the outsized gain in average salary were the tight labor market, an increased focus on supply chain efficiency, and rising e-commerce order volumes. This year, 17% of base salaries for materials handling professionals exceed $150,000, while 16% of respondents say they’re making less than $50,000. Average 2022 base salaries decreased slightly to $103,422, from $106,775 in 2021 and $114,773 in 2020 and the average bonus fell from $26,431 in 2021 to $25,000 this year. Also, 69% of respondents have hired or added personnel over the last 12 months, down from 71% in 2021,according to the survey.
                                    • US manufacturing is making a strong comeback with employment in the sector currently at 12,922,000 employees – the most since November 2008 – according to the latest jobs report from the Labor Department. Through October 2022, the manufacturing sector added 367,000 new jobs. Manufacturing grew by 32,000 jobs in October, continuing the resurgence of this blue-collar sector, which now provides 137,000 more jobs than it did before the pandemic. In October, much of the monthly job gains in manufacturing were driven by durable goods manufacturing (+23,000 jobs or 71% of manufacturing jobs added). Some of the largest monthly changes in durable goods manufacturing were in transportation equipment, computer and electronic products, and fabricated metal products, with each of those industries adding 5,000 jobs in October.
                                    • The strong value of the US dollar relative to the euro, Japanese yen, British pound, and other currencies is giving foreign producers a price advantage in the US market while making US exports more expensive, The Wall Street Journal reported in October. The unfavorable exchange rates threaten to derail the rebound in US manufacturing, especially for companies with large overseas sales, according to WSJ. But exchange rates cut both ways: The currency shift is helping some US manufacturers that import foreign-made components for use in their US factories.
                                    • E-commerce giant Amazon has scrapped plans for 42 new US facilities, according to MWPVL International, a consulting firm that tracks Amazon's real estate purchases. Amazon's real estate empire exploded during the pandemic due to a surge in demand, but the company now has a surplus of space, Amazon’s Chief Financial Officer Brian Olsavsky said. Some industry experts say that the moves are an indicator of a broad-based reduction in demand for warehousing due to changes in consumer buying habits caused by the withdrawal of social distancing measures. Materials handling equipment manufacturers that are heavily dependent on sales of products intended for use in warehouses may be negatively impacted. Amazon doubled the size of its operations and workforce from mid-2021 to April 2022. Amazon also scaled back hiring in its retail division this year.
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