A level of uncertainty was reflected in the 50% of respondents who said that they will take a “wait-and-see” approach in 2013, up from 46% last year. Those with pre-approved capital expenditure budgets for materials handling solutions dropped from 60% in 2011 and 48% in 2012 to 38% this year, averaging just $390,000. Both figures are the lowest in seven years.

The uncertainty also made an impact on optimism as compared with January 2012, when 40% of respondents to last year’s survey said they expected their materials handling spending to increase in 2012. This year, only about 30% said that had been the case, and just 26% expect spending to increase in 2013. In 2012, 45% said they expected spending to stay the same in the coming year, but now almost 60% expect their spending to remain unchanged in 2013.

According to Jim Moran, chairman of the Industrial Truck Association and member of the board of directors at Crown Equipment, the industry might want to get used to a slow and steady approach.

“Everyone is being very conservative, but that’s predictable given the news you hear today and the level of uncertainty,” says Moran. “The tendency is to feel negative, and it’s hard to shake that. The reality is that it’s not that bad, but it’s so much different than anything we’ve seen in the past. I think the industry is moving gradually forward in a positive way, but it’s a pace we have to get used to, because I think it’s going to be around for a while.”

The return of labor
The 14% of respondents who reported that they would hold off on investments in the coming year will avoid primarily big-ticket items like automation, storage, and technology and software. The 19% who plan to proceed with investments are looking at the same technologies, including conveyors and sortation, information technology like warehouse management systems (WMS) and enterprise resource planning (ERP) systems, as well as automatic guided vehicles and robotics.