As the saying goes, when the USA catches a cold, Mexico gets pneumonia.

Forklift sales in Mexico have fallen over the last two years for several reasons. The most obvious is that Mexico reflects the US market, which has been wavering.

While forklift sales in 2000 achieved close to 5000 units, in 2002 they were around 3500, and this year looks like being a repeat. The market pressure has resulted in fierce competition, meaning reduced profits for traditional competitors.

Meanwhile, a new challenge facing the Mexican market is that used forklifts from countries participating in the North American Free Trade Agreement are now duty-free. Used forklifts imported from Europe are subject to only a six percent duty, compared to the 23 percent tax on Asian imports.

An additional challenge is increasing insurance premiums and up to 40 percent deductibles, which have been driven up by the theft of almost one forklift a month in recent times.

Unfortunately, the local forecast is that it will be 2004 before the situation improves, and even that predication depends on circumstances beyond the Mexican market's control.

The Logistic Show is on again this year from July 2 to July 4, and it could be the last time forklifts are featured with supply chain machinery. In 2005, a separate materials handling show is projected.

- Email Rolf - roslo86@hotmail.com