Cargotec - Competitors

Cargotec Competition

Now Viewing Cargotec's competition in: Material Handling Equipment Distribution (primary)

Recent Developments

Manufacturing Drives Equipment Demand - Goods production is a demand indicator for material handling equipment distributors. Industrial production rose 1.6 percent in March 2008 compared to the previous year, and has increased 1.2 to 3.3 percent annually in the past five years. Production growth may lead manufacturers to invest in new equipment, creating sales opportunities for wholesalers.

Foreign Equipment Supply Expands - Material handling equipment distributors benefit from imports, which expand product offerings. The value of US conveyor imports rose 20.1 percent the first two months of 2008 compared to a year earlier; cranes, hoists, and monorail systems climbed 32.2 percent. US distributors receive a majority of imported equipment from Canada, Japan, China, and Germany.

Fuel Prices Raise Operating Costs - Material handling equipment distributors rely heavily on trucks and fuel to transport large machinery. The average price of diesel fuel reached $4.17 per gallon in late April 2008, up 50 percent from the previous year. With fuel prices hitting all-time highs, distributors must pass the added cost through the supply chain or suffer tightened profit margins.

Competitive Landscape

Demand depends on the quantity of goods moving through the US economy. The profitability of individual distributors depends on good marketing. Small distributors can compete by specializing in a specific industry or type of equipment, or by offering excellent service programs. Large distributors can negotiate favorable agreements with manufacturers. Average annual revenue per employee is over $250,000.

Full Industry Overview For Material Handling Equipment Distribution

Material Handling Equipment Distribution Industry Forecast

from Hoover's/D&B subsidiary First Research

Domestic demand for US material handling equipment manufacturing is forecast to grow at an annual compounded rate of 3.3 percent between 2007 and 2012.

Material Handling Equipment Distribution Growth Recovers

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.