2009 seemed like the year that would never end. For manufacturers, the bad news just kept on coming. But hope seems to have finally struggled above the horizon. From the depths of last winter’s discontent, 2009 has risen to end on a high note for material handling manufacturers and, indeed, most U.S. manufacturers. Reports indicate that U.S. manufacturing has finally turned the corner, and we can expect 2010 to be a far more productive and more profitable year. Break out the champagne!
The fourth quarter of 2009 saw strong manufacturing growth. With the job market showing signs of stabilization and housing prices beginning to climb toward normal, November brought a cautious increase in consumer spending. Manufacturing benefitted from increased orders for durable goods during the fourth quarter as customers started restocking their shelves. While durable goods orders in November were less than robust, they were twice the amount forecast by economists. Overall, the U.S. economic picture looks hopefully optimistic for the first time since the recession hit.
“We are seeing progress in a number of areas, from increases in consumer spending and business spending to growth in exports,” Brian Bethune, an economist at IHS Global Economics told the Associated Press last week. “It all adds up to a recovery that is gaining some momentum.”
Bethune and other economists are predicting a 4% annual rate of economic growth (as measured by gross domestic product) for the final quarter of 2009. In addition to durable goods, particularly a growing increase in high ticket items, industrial growth into the new year is expected to come from increased equipment and software purchases. Ergonomic material handling equipment sales are expected to increase as manufacturers and business owners seek out ways to increase worker productivity and decrease healthcare costs. Expected new regulatory requirements aimed at protecting worker health and safety are also expected to drive up sales of ergonomic carts and tugs.