This quarterly economic report, published by ITR Economics, features data specifically for the material handling industry to assist MHEDA members plan for the year ahead. The full detailed report is available to members only.

Order and Download Free Report (member login required)

1. Material Handling Equipment New Orders have declined 1.0% from a tentative February 2024 peak but are still above the year-old level. Adjusted for inflation, New Orders have been trending around or just below year-ago levels since early last year.
   
   
2. Material Handling Equipment New Orders will rise starting in mid-2025 and extend through at least 2026.
   
   
3. Economic evidence indicates that a plateau in 2024 is more likely than the previously forecasted mild recession for B2B spending and industrial activity, though this plateau may have a slight downward bias.
   
   
4. Consumer and services heavy US Real GDP and US Total Retail Sales will slow in growth in 2024. Leading indicators signal a stronger year for the US macroeconomy come 2025.
   
   
5. While semiconductor and chip manufacturing dominate the news on onshoring efforts, manufacturers across the economy are moving supply chains closer to home at an accelerated pace post-COVID.
   
   
6. Consider new products or markets to expand into over the longer term to buck some of the headwinds we see coming in the 2030s.
   
7. US Real Personal Incomes are rising, allowing consumers to continue spending at a pace exceeding inflation.
   
   
8. The tight labor market will likely persist throughout this decade, which may drive more businesses to automation solutions in the coming years. Look for ways to offset your own exposure to labor costs.
   
   
9. The annual growth rate for E-Commerce Retail Sales will rebound in the second half of 2025 and generally rise into mid-2026.
   
   
10. Weakening in warehousing costs and a mild tick up in vacancy rates suggest demand for additional warehouses may be slowing.
    

• While most leading economic indicators are flashing green, downside pressures will linger this year. Overall, the remainder of this year will be a bit sluggish.
  
  
• This is a good time to reevaluate your competitive advantages and improve upon strategies to capitalize on the relatively strong macroeconomy expected in 2025 and 2026.
  
  
• Remember to zoom out from the day-to-day to reflect on your competitive advantages and your longer-term strategy.