Where would the logistics industry be without its forklifts? An essential piece of equipment at the heart of efficient material handling, the modern-day forklift has adapted and grown alongside the needs of the burgeoning logistics industry.

As the boom for the logistics sector came to an abrupt halt during the recession, the demand for forklifts receded greatly. Now, however, with the region’s logistics companies witnessing a steady revival, material handling equipment (MHE) suppliers look set to receive a much-awaited lift.

“Without a doubt, the global economic downturn did affect all segments across the MHE market in 2009 and the logistics forklift sector was no exception,” agrees Frederic Gomer, supply chain consultant at B2G. “However, in the post-recession period, the market has already shown signs of improvement.”

Based on industry analysis, experts like Gomer predict that global demand for logistics forklift equipment is expected to improve in 2011, with steady growth in the Middle East. “In the region, the logistics forklift sector is presaged to witness a rise in demand driven by mining, manufacturing, logistics and power industries,” Gomer predicts. “So far, the manufacturing boom has largely accounted for this growth.”

It is this very same manufacturing boom that has been exciting logistics companies. The greater the demand for goods, the greater the need for logistics services to transport them. This, in turn, can only be good news for the forklift industry.
Forklifts provide one of the most critical components in a logistics industry that depends on material handling equipment to achieve efficient storage and handling. “Since the logistics industry is so heavily reliant, we can only expect that the demand for forklifts will organically follow the sector’s growth,” concurs Gomer.

The region’s leading suppliers of forklifts have been watching for signs of market growth very carefully. “Following the period of economic uncertainty, we noticed the first signs of recovery in 2010,” says Vladimir Knezevic, general manager of Al Futtaim Motors’ commercial division. “The first quarter of 2011 demonstrated steady growth and we are confident that this recovery trend will continue throughout the year.”