Thanks to several factors, including high interest rates and government restrictions associated with the COVID-19 pandemic, the US forklift manufacturing sector has posted a reduction in revenue over the past few years.
As IBISWorld notes in its 2024 report, Forklift Manufacturing in the US: “Industry revenue has been shrinking at a compound annual growth rate (CAGR) of 0.6% through the end of 2024 to reach USD12.9 billion, including an expected dip of 0.7% in 2024 alone.”
More optimistically, the report also forecasts that CAGR will increase by 1.1% for the period 2024 to 2029.
According to Van Clarkson, Material Handling Equipment Distributors Association (MHEDA) chairman and president, there is an upside to this reduction in revenue.
“The market for lift trucks is off considerably year over year, which is allowing manufacturers to reduce backlogs and lead times,” Clarkson says.
“As this is happening rapidly, there is a large quantity of used trucks hitting the market as dealers manage inventory levels with higher interest costs.
“Therefore, used values have decreased significantly with less demand and more supply. This correction was expected, although most did not anticipate it to this degree.”
In terms of other external factors affecting the market, Clarkson says the upcoming US election will not necessarily have much of an impact.
“Typically, a federal election shapes economic conditions that the material handling industry must respond to. For example, the tariffs that were implemented in 2016. However, it does not typically mean an immediate shift in the economy, either up or down,” he says.
Interest rates and capital spending
Asked for his own take on the current economic climate, Jeff Mason, vice president of operations at Flux Power, highlights the effect of monetary policy on the sector.
“There has been a slight decline in activity this past six months as larger companies are holding capital spending – hoping for reduced interest rates prior to or following the election cycle,” he says. “Some order deferrals have been placed into the fourth quarter this year. Many customers and suppliers have expressed this common theme.”
Mason says competition from abroad is also playing a significant role.
“International manufacturers, particularly from Asia and Europe, have a strong presence in the market, offering a wide range of products that often come with competitive pricing,” he says.
“This foreign competition drives innovation and efficiency among North American manufacturers, pushing them to enhance their product offerings and improve cost structures.”
Continuing on this theme, he says North American companies such as Flux Power are able to leverage their local expertise, strong customer relationships and advanced technology to maintain a competitive edge.
Because its manufacturing is centralised in Vista, California, the company is able to ensure stringent quality control, streamlined logistics and rapid innovation cycles. These factors allow it to not only maintain standards but also respond quickly to evolving customer needs.
“Our focus on high-quality, reliable and environmentally friendly lithium-ion battery solutions helps differentiate us in a crowded marketplace,” said Mason, adding that later this year Flux Power plans to introduce some new voltage model batteries above 80 V, as well an improved telemetry system.
“Telemetry systems like ours are providing more value to our customers, supporting asset cascading and asset utilisation activities. This technology helps operations better manage their material handling and/or ground support equipment more efficiently,” Mason says.
International manufacturers, particularly from Asia and Europe, have a strong presence in the market, offering a wide range of products that often come with competitive pricing.
Automation & innovation
According to Clarkson, automation is something that everyone involved in materials handling should note.
“Technology continues to change at a rapid pace in all sectors, from the warehouse to the office. As qualified personnel shortages continue, taking people out of process is a priority for many in the industry,” he says.
According to Clarkson, MHEDA’s role in this transition is “to provide programs and services to assist the sector in the rapid pace of change, including additional training in automation as well as artificial intelligence”.
The importance of technological change cannot be overstated. Acknowledging the inevitability of automation, many within the sector, such as Brian Ely, vice president, sales and marketing at Bolzoni Group in the US, welcome the opportunities it will bring.
“Automation has become increasingly prevalent in the materials handling sector. Automated guided vehicle (AGV) solutions are garnering significant interest from a wide range of customers, particularly in manufacturing applications,” he says.
“These environments typically have more repetitive operational needs, making them ideal candidates for automation. The rapid advancement of automation technology is expected to drive AGV solutions into broader market segments, enhancing efficiency and reducing labour costs.”
According to Ely, Bolzoni Group is actively cooperating with the main AGV manufacturers, providing electric and hydraulic operated equipment.
“Innovation remains at the forefront of Bolzoni Group's strategy to benefit end-users. Two of our latest innovations are the Easy Move Carton Clamp system and the Electric Sideshifting Fork Positioner,” he says.
“These cutting-edge technologies promise to enhance the efficiency and ease of use of our attachments and provide significant operational benefits to our customers.”
Recommended for handling high-end white goods, the Easy Move Carton Clamp allows for damage-free clamp force regulation. Featuring lasers and sensors, it’s designed to apply the correct clamping pressure without damaging the load. Once programmed, it requires no operator intervention.
Similarly, the Electric Sideshifting Fork Positioner employs sensors to actuate the side shift movement, without the need of hydraulic cylinders.
A global organisation, Bolzoni Group’s manufacturing footprint extends beyond North America to Italy, Finland, China and Brazil. Within the US, it has plants in Sulligent, Alabama and Homewood, Illinois.
“These facilities…are integral to our production capabilities. Our commitment to quality manufacturing, coupled with our strategic global presence, positions us to meet the diverse needs of our customers,” said Ely.
“Despite the challenges posed by the current economic and political climate, we continue to innovate and adapt, ensuring we remain a leader in the material handling industry.”
Hydrogen fuel cell-powered forklifts
Another area of innovation is the introduction of hydrogen fuel cell-powered forklifts. Several manufacturers like Doosan Bobcat, which is based in West Fargo, North Dakota, are committed to this new technology.
“Hydrogen fuel cell forklifts offer longer operating times and faster refuelling, making them ideal for applications that require extended use and quick refuelling turnaround,” says Andre Marshall, Bobcat Company product manager.
“For warehouses operating multiple shifts, the hydrogen fuel cell forklift is a viable option to reduce carbon footprint while still meeting the operational needs to run longer hours with no charging required.”
Bobcat recently showcased its own hydrogen fuel cell-powered forklift prototypes. While these are still in the development phase, the company is exploring hydrogen for use across its forklift range.
This range includes internal combustion, liquefied petroleum gas (LPG) and electric forklifts, with capacities ranging from 1,360 kg to 25,000 kg. Though new in terms of branding, the range (which transitioned from the Doosan Industrial Vehicle brand in early 2024) carries with it a solid, well-respected legacy of more than 55 years.
According to Marshall, forklifts have an important role to play in a broader economic sense.
“Material handling solutions have been a critical part of the global supply chain for decades,” he says. “During that time, industry has adapted and evolved to accommodate the typical cyclical nature of economic conditions, as well as geographic considerations for supply and demand.”
“At Bobcat, we continue to identify successful ways to innovate and improve forklift operations through training programs, adoption of intuitive controls and enhanced productivity features. As new challenges in the supply chain industry may arise in time, the material handling world is well-positioned to identify new solutions to address them.”
The skills shortage
Like many other industries, the forklift manufacturing sector continues to deal with a lack of skilled workers. Pete Drake, senior vice president – operations Americas at Cascade Corporation, has an interesting take on this situation.
“The forklift manufacturing industry is navigating a complicated economic and political landscape. Despite challenges, there are significant opportunities, particularly driven by labour shortages,” he says.
“The industry is increasingly turning to automation to address these shortages, requiring innovative products that increase efficiency and productivity. At Cascade, we invest heavily in technology and development, both within our manufacturing processes and in our products, to stay ahead of these trends.”
Asked for examples, Drake points to Cascade Electrix, a suite of all-electric attachments, including multiple load handlers, sideshifters, fork positioners, carton clamps, Lift-Tek masts and more. All energy-efficient, these attachments also help reduce overall operational costs.
According to Drake, Cascade is the only attachment provider that can offer customers fully customised, all-electric, hybrid or hydraulic front-end solutions for AGVs or forklifts.
In addition, he highlights Cascade Activweigh, a unit designed to automatically track and capture essential weight data. Integrating ‘weigh-in-motion’ capabilities with side shifting and fork positioning functionality in a single compact design, it allows forklift operators to easily approach a load, adjust the fork spacing, lift and immediately weigh the load while the forklift is in motion.
Having a local footprint
While the various innovations mentioned above deliver materials handling operations genuine opportunities to improve efficiency, the additional benefits that come with having a local manufacturing presence should not be underestimated. Managed correctly and properly resourced, they can ensure that clients not only improve efficiency but thrive.
As Drake puts it, the aim is “…not just to be present, but to proactively engage and support our customers right where they are.”
“We adhere to global standards while optimising for local needs – which ensures that every product is expertly tailored to regional demands without compromising on quality. With Cascade, world-class support and tailored solutions are always just around the corner.”
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For this report we interviewed the following industry specialists: