Consolidation, globalisation and the economy are the largest factors currently shaping the materials handling and logistics industries, says the Material Handling Industry of America (MHIA).

In a speech given at Promat 2003, which finished in Chicago on February 13, MHIA executive chairman Wilbert Persch said the MHIA expected a positive turn in the July-September third quarter and continued growth in 2004, based on the industry's rate of change and compared to various indexes.

Mr Persch said the MHIA, which sponsored Promat, foresaw a recovery and improvement in bookings throughout 2003, and expected use of the industry's capacity to remain at about 76 percent. Capital spending should improve four percent to five percent, industrial output should improve 3.5 percent to 4.5 percent and materials handling bookings should increase seven percent to nine percent, Mr Persch said.
MHIA chief executive John Nofsinger said the USD60 billion industry was healthy.

"Materials handling and logistics, when thought of as a process, remain at the core of manufacturing, distribution, consumption and disposal activities, and indeed at the heart of productivity,'' he said.

MHIA, based in Charlotte, North Carolina, USA, represents about 800 member companies.