IBISWorld predicts that steel prices will play a role in higher forklift prices in the future.

Forklift users can expect to pay more for forklifts over the next three years, according to a new report by IBISWorld.

The procurement research firm's report says that steel prices are forecast to increase 2.2% annually over the next three years, and that construction and industrial activity is projected to stay strong.

Buyers of all steel-based products are likely to see higher prices heading into 2017.

"Declining steel prices helped shield buyers from the full brunt of the post-recession boom in construction and industrial activity (over) the past three years, but that will not be the case heading into 2017," the report says.

According to the study, forklifts, elevators, security wire fencing, nails and building demolition machinery are the five key products that will likely undergo accelerated price growth in 2015- 2017.

Steel prices will play a role in higher forklift prices in the coming years, IBISWorld predicts, as steel is the primary input used in forklift manufacturing, accounting for an estimated 63% of the average forklift manufacturer's total purchase costs.

"Higher demand and higher production costs will accelerate growth in forklift prices at an annualised rate of 3.2% in the three years to 2017, compared with 2.9% annualised growth over the past three years," the researchers say.

The researchers advise buyers to make their forklift purchases now to avoid higher prices down the road or find other ways to mitigate the effect of higher prices.