A market research report on US forklift and conveyor manufacturing predicts that "improving freight and manufacturing activity will spur a modest rise in demand".

The report from IbisWorld Inc characterises the industry as being in the mature stage of its lifecycle, "with demand heavily dependent on investment trends in the downstream building markets and overall industrial production".

During the 10 years to 2017, the report forecasts the industry contributing to the overall economy at an annualised growth rate of 2.8% - ahead of the comparable 1.8% annualised growth of the US gross domestic product (GDP).

"With regard to forklifts, the push toward increased efficiencies in battery life and reduced emissions through hybrid vehicles has dominated the industry for much of the recent past and will likely continue to be a major selling point," Josh McBee, an IbisWorld industry analyst in Santa Monica, notes in the report.

Competition from imports may return. "Although the industry is expected to realise a trade surplus through the coming five years, the race between exports as a share of revenue and imports as a share of domestic demand will likely remain neck and neck."

Regarding the outlook, "as the economy continues to recover through 2017, the forklift and conveyor manufacturing industry is also set to benefit from stronger demand in downstream freight and manufacturing markets".

The report identifies Toyota as leading forklift sales in the US for the past decade, with a 6.6% US marketshare. It says Toyota Material Handling Group (including the Raymond brand) had operating income of USD154.9 million on fiscal 2011-2012 sales of USD2.31 billion.

IbisWorld's McBee has also issued a market research report on forklift and conveyor manufacturing in Canada.

"This industry is declining," the reports says. "During the 10 years to 2018, industry value added, which measures the industry's contributions to the Canadian economy, is projected to decrease 3.0% per year on average. In comparison, Canadian GDP is forecast to rise at an annual rate of 2.4% annually during the same period."

The report identifies that "competition from substitutes in the form of imported forklifts and conveyor products consistently takes the majority of domestic demand away from Canadian manufacturers".

Canadian exports involving forklift and conveyor manufacturing reflect US demand for Canadian goods. For the relevant industries, those exports "consistently account for more than 70% of all industry exports and more than 80% of total industry revenue", the report says. "As such, US trends in the industry's key downstream markets of manufacturing, construction and warehousing largely dictate revenue potential and outcomes."

The report identifies Linamar Corp's Guelph, Ontario-based subsidiary Skyjack as accounting for a 7.9% share of the Canadian market for forklift and conveyor manufacturing over a decade. It says Skyjack's industry-specific operations reported operating profit of USD9.2 million on 2012 sales of USD166.7 million.

Further, the report says US-based attachments maker Cascade Corp had an estimated marketshare of 2.8% in Canada. Cascade operates two plants in the Canadian province of Ontario, owning one of 125,000 sqft. (11,613 sqm) in Guelph and leasing another of 73,000 sqft. (6,782 sqm) in Toronto.

For a single copy, IbisWorld prices the US report at USD825 and the Canadian report at USD725. IbisWorld analysts cover 700 different market segments.