With the industrial production index forecast to increase at an annualized rate of 3.0% from 2014 to 2017, stronger demand for forklifts will result in higher prices. At the same time steel prices are expected to increase at an annualized rate of 2.2% over the next three years. The result will be higher prices for all steel-based products heading into 2017, according to a report from IBISWorld, a procurement research firm.
The researchers identified five key products that will likely undergo accelerated price growth over the next three years due to rising steel prices: forklifts, elevators, security wire fencing, nails and building demolition machinery.
Buyers can avoid paying higher prices down the road by making their forklift purchases now, the group advises. However, if that is not possible, they offer other ways to mitigate the effect of higher prices. For example, buyers can purchase items in bulk to score a lower cost per unit. Buyers might also consider buying used forklifts, which run about half the cost of new units.
More on increasing forklift prices on Material Handling & Logistics.
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