Forklift News - UK lifting and handling equipment market fluctuating

Sales of forklifts and work trucks in the UK are expected to show overall growth of 34% in the next five years, a new report says.

The information is part of a five-year review up to 2007 of the UK mechanical lifting and handling equipment market by Manchester-based market research company MBD.

MBD says demand for forklifts and work trucks in the UK has fluctuated in the past five years but sales will pick up this year, growing 7% to GBP435.7 million (USD889.7 million).

UK forklift and work truck sales dipped 15% from 2004 to 2006 to a low of GBP407.2 million (USD831.5 million), but the sector’s sales will grow this year and represent 16% of the total market.

In the next five years, forklift and work truck demand in the UK is anticipated to decline in volume terms, but the rise in market value will be a result of increased unit prices, reflecting advances in technology. Electric forklifts are also expected to become increasingly popular due to increased energy consciousness and awareness of environmental considerations.

During the review period (2003-2007), other equipment sectors’ sales also fluctuated with the exception of elevators and conveyors. Demand in this sector has risen throughout and sales will increase to GBP429.7 million (USD877.4 million), representing about 16% of the market.

Sales of cranes and transporters grew moderately early in the review period. After peaking at GBP518.7 million (USD1,059 million) in 2004, demand dropped 2% in 2005 and 7% in 2006. However, MBD expects the sector’s sales to jump 4% this year to GBP494.2 million (USD1,009 million), representing 18% of the market. The sector represented 21% of the equipment market in 2004.

Lifts and escalators are expected to account for the smallest share in the overall mechanical handling and lifting market, representing about 6% in 2007. Winding, jacking and lifting equipment sales are expected to peak at GBP166.4 million (USD339.8 million) this year while the value of "other" mechanical handling and lifting equipment will decline 4% to GBP513.9 million (USD1,049 million).

Parts and accessories represented 18% to 21% of the total market during the review period and sales are expected to jump 7% to GBP529.9 million (USD1,082 million) after dropping 14% last year.

MBD forecasts the market to grow 7% in real terms between 2008 and 2012, spurred largely by the UK construction sector. Growth in distribution and warehousing is also expected but will be restricted by the modest 1.75% to 2.25% growth in manufacturing output early in the forecast period.

Cranes and transporter sales will benefit from the anticipated strong performance of the construction sector. MBD forecasts this equipment sector’s sales to grow 21% from 2007 to 2011 but the trend is anticipated to reverse by the end of 2012.

Parts and accessories are expected to account for between 16% and 23% of the UK market from 2008 to 2012. The value of the sector is anticipated to peak at GBP687.3 million (USD1,403 million) in 2011 but will reduce by about 30% in 2012.

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