After several years of decline, the hoist and crane market in the USA appears to be growing once again.
“Overall, through the first quarter the level of activity [of orders] in the hoist arena seems to be improving considerably,” said Hal Vandiver, managing director of US trade association the Materials Handling Industry of America (MHIA). “In the 12 months ending in March, compared with the previous 12 months, it was improving in the 5-10% range, though that improvement would vary by product. With cranes, there has been a similar improvement.”
Company reports out in May concur. In the first quarter of the year, Columbus McKinnon reported that consolidated net sales increased by 10% compared to the previous quarter year, and up 2% year on year, to $121m. That figure goes up slightly, to 3.3%, taking account of divestitures and currency conversions. (Its total sales for the year to 31 March was $444.6m).
“Columbus McKinnon’s financial performance and outlook continues to improve with fourth quarter sales and operating earnings at their highest level in fiscal years 2004 and 2003,” said Timothy Tevins, president and CEO. “Net sales represent the highest quarterly net sales level since the September 2001 quarter.”
“In North America the market sentiment is slowly changing to the better,” said KCI Konecranes’ first quarter report. “Because of the strong order intake and increasing delivery times the business area’s order book grew with almost 25% (counted in local currencies) compared to the level of orders in the book one year ago.” It added that the orders growth was fuelled by the “early recovery” in the market.
“We appear to be past the bottoming-out period,” said Scott Miller, Harrington’s vp of operations. “The market is up for wire rope hoist crane components and complete cranes. The market has improved, speaking industry-wide and in terms of us as well.”
Miller said that in the year to 31 March Harrington’s sales grew, though he did not give figures.
“We are seeing increased activity throughout the marketplace,” said Jim Lang, P&H/Morris Material Handling Inc’s national sales manager. “The demand for spare and replacement parts and service has increased, which we feel shows customers have increased the usage of their cranes and hoists. We’ve also seen significant increases in quotations for new equipment, although many are budgetary at this time. We expect orders to increase later this year and next year.”
Vandiver of MHIA said that the hoist market troughed in the first quarter of 2003, and has been improving since, faster than other types of material handling equipment. He added that the material handling industry, taken together, is expected to grow the rest of this year and next. The market for hoists, cranes and monorails, industrial trucks and tractors, elevating equipment and conveyors and conveying equipment is expected to improve between 5% and 7.5% over the entire year, compared with 2003, and even better performance is expected in 2005.
The upturn has even affected the smaller manufacturers. “We’re doing all right. We’re doing a little better, but I don’t think the market will ever return to the way it was,” said Herb Heller, vp and salesman for Saturn Engineering Corporation, which now makes mainly speciality hoists and cranes.
The US recovery mirrors the state of the hoist market around the world. In the first quarter report, KCI Konecranes president and CEO Stig Gustavson said, “In our Q3/03 report, my result commentary had the heading ‘Turning point?’. That quarter then posted an orders growth of 16.5%, after a period of no growth in new orders. Now, with two more quarters of double-digit orders growth, the question mark is removed. The turning point was really passed at mid-year 2003.” International sales revenue for the quarter was E150m. While sales of standard cranes increased slightly and special cranes declined slightly in the first quarter compared with last year, orders received grew by 11.5% and 30.1%, respectively.
According to Vandiver, the monorail industry has not made the gains of cranes and hoists. Patented and enclosed track systems, underhung cranes and workstation cranes are lagging slightly behind hoists and cranes, but are improving, he said.
Some crane builders are more confident than others. “The economy has turned around, large projects are breaking loose, it should be a good Q3 and Q4,” said Neal Wilson, president of Houston-based Proserv. Rich Kelps, president of Wolverine Crane and Service, an R&M customer, estimates his Michigan-based company will make $6.5m this year, up $500,000 on last year. “This year, it started off pretty good, now it’s kind of looking like ‘03. You never can tell.”
The MHIA produces a quarterly market report on the state of the US material handling market, available for purchase on www.mhia.org.
