The ATEL Monthly

Global Materials Handling On The Rise

Late September Modern Materials Handling,, announced research projecting global demand for material handling to rise 5.3% by 2020. Citing a nearly two thirds increase in demand in China, the article refers to a study from the Fredonia Group, a Cleveland-based industry research firm, that forecasts the industry will reach $176 billion in the next four years. Global demand for material handling was at $136 billion in 2015.

Freedonia Group analysis cite mature markets in North American and Western Europe will experience increased demand for new infrastructure using more modern technologies. Although the recovery in those markets is slower than anticipated, emerging industrial enterprises in developing countries have been quick to adopt automation. Such Global growth will continue well into 2017.

“The rate at which many manufacturers in developing countries have adopted newer material handling technologies is quite impressive,” states Gleb Mytko, global industry analyst for Freedonia.

Of the past nine ATEL public leasing funds combined, investments in material handling accounted for roughly 7.5% (concentration by equipment type). A 2014 Survey from the Equipment Leasing and Finance Association reports total leasing market concentration was just over 3%.

See: Modern Materials Handling article