MHEDA WELCOMES NEW MEMBERS

MHEDA welcomes new Distributor Member Indoff, Inc. of St. Louis, MO, and new Supplier/Associate Member Kardex Systems/Intertex Group of Marietta, OH.

BREAKING NEWS

SURVEY SAYS...SHORTER SKIRTS, BETTER ECONOMIC TIMES ON HORIZON

The good news for MHEDA members is that hemlines are once again on the rise! Designers at February's Fashion Week in New York City showcased miniscule skirts with sky-high hemlines and consumers are smiling once again. According to a January survey by shopping mall developer Taubman Centers, Inc., renewed optimism about the economy together with on-the-rise hemlines are signs of a near-term economic recovery.

Taubman Centers survey results reflected the following fashion statements and economic forecasts:

• Cheesecake! (Good times ahead): 18 percent
• Above the knee (Light at the end of the tunnel): 30 percent
• Just below the knee (Cautious optimism): 28 percent
• Ankle duster (Uncertain times ahead): 24 percent

As consumers celebrate shorter hemlines, we can all celebrate better bottom lines!

MANUFACTURERS ALLIANCE/MAPI ANALYSIS REFLECTS UPSWING

The latest Manufacturers Alliance/MAPI Analysis, released on February 25, shows strong indicators that momentum is building for accelerating growth in 2003. An analysis of 28 industries finds that business activity in most industrial sectors is above year-ago levels. The report states that more industries have passed through the worst part of the economic cycle and are "less negative" than three months ago. Seventeen industries had inflation-adjusted new order or production numbers higher than those reported one year ago. Top industry performers recording double-digit growth were electronics, computers, photographic equipment, construction machinery, housing starts, and motor vehicles and parts.

PROMAT'S 2003 SUCCESS SIGNALS BUSINESS IMPROVEMENTS

Signaling an improving business environment, U.S. and international attendees registered in near-record numbers for ProMat 2003, the material handling and logistics show and conference sponsored by the Material Handling Industry of America (MHIA) held during the middle of February in Chicago. Attendance totaled 37,900 and represented 86 countries and six continents.

"The ProMat 2003 registration numbers demonstrate the strength of the manufacturing, warehousing and distribution markets and the continuing importance material handling and logistics play in those markets," said John Nofsinger, MHIA chief executive officer. "Early reports from the show confirm our predictions that we will see a recovery and improvement in bookings throughout 2003." [Ed. Note: Nofsinger did not comment on rising hemlines.]

ProMat attendees placed a high value on educational and training programs. An educational conference sponsored by the Material Handling Institute included an Executive Forum featuring industry leaders who discussed the impact of material handling and logistics leadership. Attendance numbers reflected the positive momentum that is just beginning to occur throughout North America. The Executive Forum attendance over the morning approached 700. More than 5,100 visitors sat in on 74 show floor seminars at ProMat 2003.

In an address to attendees at the Executive Forum, MHIA Executive Chairman Bill Persch commented on the current and near-term future state of the industry. "As a practical matter, the material handling and logistics industry has generally cycled from high-to-high, or low-to-low about every 4½ to 5 years. Occasionally, as was the case through most of the ' 90s, conditions like the longest expansion of the US economy will mask the cycle. The good news is that what goes down has always gone back up to new and greater heights as economics expand."

Persch stressed that the industry is well along in a phase of recovery and beginning a cycle of growth that will continue over the next two years. MHIA used several leading indicators that reliably anticipate material handling and logistics activity over 9 to 21 months. These indexes include the National Association of Purchasing Manager's Index, Industrial Production and Capacity, Consumer Confidence, Housing Starts and a Consensus Index by The National Association of Business Economists.

Persch presented MHIA's forecasts for the coming months:

• The 3^rd Quarter 2002 saw new orders up 3.2% over the same period in 2001, even though the 12 months ending in September 2002 were off 12% from the 12 months ending in September 2001.
• In 2003, we expect a number of modest, but positive improvements. We see capital spending rising 4%-5%, with industrial output increasing a similar amount.
• These dynamics should cause bookings to increase by 7%-9% over 2002 and shipments to increase by 3%-5%. The difference in these figures will provide the underpinning of growth well through 2004.

GET READY TO THINK BIG

The stage is set. Things--economy, orders, and hemlines--are on the rise! Will your company be positioned to take advantage of a new economy? Will your strategies be in place? Register today to be with the Big Thinkers and the Big Ideas at MHEDA's Annual Convention & Manufacturers' Fair in San Antonio from May 3-7.

INDUSTRY BEAT
(what people are talking about)

Alta's 20,000-sq.-ft. Grand Rapids facility

Alta Acquires Forklifts of Detroit-West (Wixom, MI) • Alta Lift Truck Services acquired the assets of Forklifts of Detroit-West, based in Grand Rapids, Michigan. Alta President Steven Greenawalt says that this acquisition consolidates the company's position in western Michigan markets. Alta now operates eight full service locations throughout the state.

Maybury Wins Award (East Longmeadow, MA) • Maybury Material Handling won the 2002 Pioneer Valley Business Excellence Award in Manufacturing. This award recognizes Pioneer Valley organizations that distinguish themselves in customer satisfaction, process improvement, leadership, human resources, business results and information sharing. John Maybury, president, stated that the company was honored at the recognition of its excellence. "Receiving this award is just one step toward our goal of becoming a world class organization and a Malcolm Baldrige award-winning company."

Rennenberg Joins Modern (Bristol, PA) • Theo Rennenberg joined Modern Handling Equipment of Pennsylvania, one of Modern Group's dealerships, as aftermarket sales manager. Rennenberg previously worked for Johnson Life, a West Coast Hyster dealer.

Survey Shows: Health Insurance Premiums Higher (Washington, DC) • Data compiled by the National Association of Wholesaler-Distributors (NAW) January 17 through February 7 reveals a dramatic increase in group health insurance premiums paid by industry employers. Information was provided by over 460 wholesale distribution companies of all sizes and across all lines of trade. For the second year in a row, the average premium increase was 19%. Hardest hit are employers with 50 and fewer employees, which experienced a 23% average hike. Companies with 51 to 500 employees show an 18% increase. Those with more than 500 employees faced premium increases averaging 16%. The survey also showed that workers found themselves paying more out-of-pocket to meet their medical needs. NAW Service Corporation Vice President and General Manager George Valiga observed, "The pressure rising health insurance premiums continues to place on wholesaler-distributors' bottom lines has simply gotten too severe, and like it or not, employees have and will continue to find themselves significantly affected by the strategies embraced by their employers to ease that pressure."

US Navy Highlights Safety Issues • With the threat of war looming on the horizon, the US military is taking extra steps to shore up safety in the ranks, and that includes material handling equipment operators. The February 19 Washington Post ran an article featuring the Naval Safety Center website (http://www.safetycenter.navy.mil/), which takes an innovative approach to drawing attention to safety concerns. Each week, the Naval Safety Center's website runs a photo of a material handling mishap that could have been prevented through caution, forethought and training. According to the Post, the Naval Safety Center says the idea was "to amuse and provoke thought in safety issues." The website instituted the "Photo of the Week" feature in 2001 because Navy safety officials felt merely listing facts did not bring about the awareness necessary to make operators more cautious. The photographs include forklift accidents, improper use of equipment, and vehicular carelessness, and range from the curious to the shocking, serving as a vivid reminder of the potential consequences of safety violations. You can read the full article from the Washington Post by clicking here. The MHEDA Connection will bring you updates on the Navy initiative's success as information becomes available.

SALES SUCCESS STORY

FORGET MOVING SLOW. THESE TURTLES ARE GOING NOWHERE!

Galapagos tortoises will not cross an unstable surface. In fact, a tortoise will do everything possible to avoid flipping onto its back. Architects at the Philadelphia Zoo learned of this challenge as they were designing an outdoor exhibit for the tortoises. They also learned of a possible solution from another zoo. The solution consisted of a photograph of a gravity conveyor and an idea.

Architects and zookeepers then went searching, later admitting that they didn't know what they were looking for or where they could get it. They hit pay dirt when they came upon Leeds Conveyor Mfg. Co.'s website at www.leedsconveyor.com. While Leeds is a conveyor distributor, the company also does its own custom design work.

The Leeds team worked with the zoo architects to develop a gravity conveyor that could withstand the outdoor elements and fit into the landscaping of the zoo. Using a 316 stainless steel frame, straight and curve gravity sections with rollers spaced on a nine-inch center and wash-down bearings were custom built. Roller covers cut the reflection of the sun and limit exposure to ultraviolet rays. The conveyor is the width of an arm's length, plus the length of a Galapagos turtle's neck.

Leeds shipped the custom-made conveyor from its headquarters in Guilford, Connecticut to the zoo in Philadelphia. When assembled, the first turtle shuffled over for the first test run. The turtle approached the conveyor and tried to cross by stepping on the roller. Feeling the roller spin, the turtle's first instinct was to protect itself from flipping over, and moved back. Turtle after turtle, the same thing happened.

Zoo landscapers added grass to grow up from the bottom through the rollers. Since no fence around is needed, zoo visitors can now see the Galapagos turtles up close and personal, face to face.

Leeds President Paul M. Nangle, III, is thrilled about the project. It gave his team some custom design work, and it proved that the company's website is working. Initially, Nangle expected it would be used as an electronic brochure. "The growth has been quite a surprise," he says. The website was responsible for 4-digit sales in 1999 to 5 digits in 2000 to 6 digits in 2001 and 2002.

Profitability Solutions Executive Forum
March 7-8
Now more than ever, your company must develop effective methods of cost control, and this executive forum is designed to help you create a realistic action plan. You'll roll up your sleeves and discuss issues such as restructuring, reductions in force, price increases that reduce revenue, non-payroll cost reductions, difficult supplier realignments, lender negotiations, and implementation timing. This highly interactive program is designed for financial decision-makers including business owners, CFOs, comptrollers and general managers. Participants are strongly encouraged to bring two financial executives, so we are offering a special discount registration fee of only $850 for TWO people from your company to attend! Michael Marks of Indian-River Consulting Group will lead the program, and MHEDA Members Tim Hilton, CEO of Carolina Handling, LLC; John Maybury, president of Maybury Material Handling; and Mike Dubbs, president of Storage Equipment, Inc. will share their experiences. Register today by calling MHEDA at (847) 680-3500 or visit our website at www.mheda.org to watch a two-minute webinar presentation about the seminar!

Spring Training for Sales People!
Sales Boot Camp
Level I: March 20-22
Level II: May 16-17
Help your sales team achieve their full potential - send them to Sales Boot Camp! This fast-paced, hands-on and highly interactive training program is for new AND veteran salespeople who want to improve their selling skills, and is designed specifically for material handling professionals. The Sales Boot Camp, led by Don Buttrey, is based on an innovative selling approach titled "The 6 A's Selling Process," and takes place in Dayton, Ohio. The cost for the program is $1,500, which includes 5 full days of training, video-taped role-plays, custom binders to take back to the office, management follow-up guide, 2 self-study modules on material handling products/application, and 5 breakfasts, 5 lunches and 2 dinners. Space is limited to the first 25 registrants, so don't delay in submitting your registration! For more information, click here.

MHEDA NEWS

It's Time to Think Big! • MHEDA's Annual Convention & Manufacturers' Fair will take place May 3-7 at the Marriott Riverwalk in San Antonio, Texas. Make plans now to attend and learn about the latest business developments in the material handling industry. For a complete program, click here. Questions? Call MHEDA at 847-680-3500.

2003 DiSC Survey Coming Soon • MHEDA's 2003 Distributor Statistical Comparisons (DiSC) Survey is scheduled to be mailed March 15. This is an annual profitability survey of MHEDA members, and the results are packed with industry-specific data to guide you in your company's future budgeting and financial planning process. All data is absolutely confidential. We are confident that you will benefit from this valuable program, so take action now and schedule time to complete this year's questionnaire. More details will follow on March 15, 2003.

  The MHEDA Connection is distributed on the 1st and 15th of each month to all MHEDA members. As the official
  newsletter of the Material Handling Equipment Distributors Association (MHEDA), a non-profit organization, this
  publication carries authoritative notices and articles in regard to the activities of the Association. In all other respects,
  neither the Association nor the publisher of The MHEDA Connection, Data Key Communications, LLC, is responsible
  for the contents thereof or the opinions of the contributors.

If you no longer wish to receive The MHEDA Connection, please click here.
Privacy Statement

Copyright © 2003 Data Key Communications, LLC. All Rights Reserved. No portion of this newsletter may be reproduced in whole or in part without written permission of the publisher.