The Thai materials handling industry has not recovered from the 1997 financial crisis which crippled demand by 15 percent to 20 percent.

Caterpillar Thailand managing director FC Ding Almazan told Forkliftaction.com News that industry sales had dropped from 6000 units in 1996 to only 800 units so far this year. The industry was adopting a "wait and see" attitude for 2003.

Caterpillar's materials handling equipment sales had dropped from 2000 units in 1996 to about 300 units this year.

Negative factors like a potential war in Iraq and "meagre" government spending could further dampen the industry, Mr Almazan said.

To complement Caterpillar's revenues on forklifts and other materials handling equipment, the company had expanded its rental stores in Thailand and other Asian countries. Targets for the outlets were small construction contractors.