Manufacturers have capitalized on growing demand and falling steel costs to boost margins
New York, NY (PRWEB) October 02, 2014
The Forklift Manufacturing industry primarily manufactures forklifts, also known as industrial trucks, which are small to medium-sized material-handling vehicles used to lift and carry heavy loads from one location to another. Forklifts are used primarily by construction, manufacturing and freight-handling industries. Consequently, demand from these industries underpins revenue growth for forklift manufacturers. IBISWorld expects improved demand across these markets to spur revenue growth for the Forklift Manufacturing industry in the five years to 2014.
Profit margins have also improved considerably over the period. According to IBISWorld Industry Analyst Amal Ahmad, “Forklift manufacturers have been able to capitalize on growing demand and falling steel purchase costs to boost margins; they have also engaged in significant automation of production, enabling them to contain wage costs.” Finally, consolidation has also helped contain costs and boost operator margins. The number of participants in this industry has declined slowly but steadily through 2014, despite growing demand for, and production of, forklifts. This indicates that fewer companies are generating a greater share of sales and consolidating their presence in the industry. Toyota remains the industry's biggest player, manufacturing about one in every four forklifts sold in the United States in 2014.
The international landscape has also contributed to industry growth over the last five years. Recovering construction and manufacturing markets abroad have increased demand for high-quality forklifts. Export markets include Canada and nearby emerging markets such as Mexico and Brazil. “Still, imports of forklifts from China, Japan and other cost-efficient manufacturers have also increased over the period,” says Ahmad. This has heightened competition in the domestic market, inducing operators to continue innovating cost-efficient production and distribution solutions. Going forward, IBISWorld expects the industry to continue to benefit from growing demand for forklifts at home and abroad.
For more information, visit IBISWorld’s Forklift Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry primarily manufacture forklifts, which are also known as industrial trucks. Forklifts include truck-type and hand-type pallet movers, skid jacks and portable stackers. Forklifts can load material and transport it over short distances and are used heavily in the construction, manufacturing and freight logistics sectors. This industry's operations also include the manufacture and sale of parts and attachments for forklifts.
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