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

Mar 30, 2026 - Declining Sales and Employment

• 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.
• Confidence among equipment finance executives remained high in November, marking six straight months of optimism, Modern Materials Handling reports citing data from the Equipment Leasing & Finance Foundation. The foundation’s latest Monthly Confidence Index (MCI) posted a reading of 59.9, nearly matching October’s 60.1, signaling steady investment appetite across industrial sectors. For makers of materials handling equipment sustained confidence suggests a continued willingness among customers to lease or finance new machinery despite economic uncertainty. Strong financing sentiment typically translates into healthier order pipelines and less hesitation from distributors and warehouse operators to upgrade fleets. It also supports demand for higher-value automated equipment, which often relies heavily on financing. Stable confidence reduces the likelihood of sudden project deferrals that can disrupt production cycles. Overall, the current environment provides a supportive backdrop for materials-handling OEMs, helping maintain utilization rates, encourage technology upgrades, and underpin growth in warehouse modernization and automation projects.

• Overall spending on nonresidential buildings (not adjusted for inflation) is expected to increase only 1.7% this year 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 5.3% in February compared to a year ago, after rising 3.2% in the previous February-versus-February 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 level. Meanwhile, employment by the industry was flat year over year in January, while average wages at machinery manufacturers rose 3% over the same period to $30.94 per hour, BLS data show.