Hangcha managing director Andy Yang, with the new XC counterbalance forkliftWhile automation, electrification, and optimisation were again key themes of LogiMAT this year, there was a discernible shift in mood, with many stating geopolitical and macroeconomic concerns are increasingly shaping the sector.
Arnold Vetter, managing director of German fork producer Vetter, says some businesses are suffering, and will continue to “suffer under the new bureaucratic processes which come with tariffs, sanctions and trade restrictions” as they navigate the new landscape and attempt to understand what it means for them.
“It used to be relatively simple to sell products into other countries, but what has been happening in terms of trade conflicts is a wake-up call and we are prepared; Europe is strong,” he states.
Hangcha vice general manager Andy Yang was more direct.
“Tariffs are a big worry as they could make it difficult for Chinese companies to sell into the US,” Yang says.
“In my opinion, in the short-term, the global market will pick Chinese products and while the tariffs will be more of a problem in the next two to three years, I think they will be dropped in five years and longer-term. As the global economic situation changes, demand will depend more on the market and less on politics.
“The US market is good for China, but I am concerned there may be more tariffs in the future, and this is not the end of them. If this happens, we will change our policies and may transfer production to an Asian country like Thailand or Vietnam. Maybe, if we have no choice, we will transfer our assembly line to America.”
A supplier whose biggest two markets are Russia and Brazil, Hangcha began making strategic moves into developing a European customer base market as far back as 2000.
“We entered the US market two years ago and had been hoping for a big increase in our US market share, but the new tariffs will impact our exports into the US,” Yang continues.
Jonathan Schwalm, group leader marketing with Hubtex also believes tariffs and macroeconomic uncertainty “may be the biggest threat” in the near future.
“If Trump puts tariffs on products from Europe, that will be significant,” Schwalm adds.
“People are talking about the unstable situation in the world right now; but people learn to adapt to instability.”
Heike Oder, head of trade press with Linde, says the current geopolitical situation is just one of a number of pressures being felt by materials handling equipment producers. Others include cost pressures, new regulations, and Chinese competition (this will be covered in more detail in future weeks).
As Jan Droogendijk, product manager material handling at Bobcat EMEA, explains “the market is still slow since last year because of macroeconomics and the war in Ukraine”. However, given that the company’s EMEA clients are well served by production centres in Korea and China, he is confident about the future.
Udo Schmidt, European vice president of forklift attachment company Cascade says while “geopolitical uncertainty hurts everyone”, he is also confident the European market will continue to flourish.
Filip Buerms, CEO of Essenium, producers of the Safetrack collision warning system says while the geopolitical situation can “be a threat, it’s in our hands and we have to deliver”.
There were a large number of other exhibitors and attendees who were happy to speak freely and passionately to Forkliftaction News about the tariffs – but none wanted their names used.
Our complete gallery from LogiMAT can be viewed here.