Kalmar Americas

I expect 2009 to be a very challenging year because of the difficult economic times we face and the consolidation of companies through mergers and acquisitions. The majority of port and industrial businesses are expected to be flat or to decline. Many companies are postponing or canceling new equipment purchases. Large global companies are leveraging their strength by creating global frame agreements with centralized purchasing, thereby making the competition even tougher. These changes are forcing equipment manufacturers to be more competitive. On the bright side, there is a building interest in automated products, and the parts and service business area should remain healthy because companies will hold on to their equipment longer. Some companies have begun preparing for future growth by starting their plans to purchase automated equipment that will increase their capacity and productivity. The process of designing and implementing an automated facility can take a few years, so there will be opportunities in the near term. Many companies have reached out to service providers to assist or take over their equipment maintenance. In many cases, it can be cheaper or require less capital to outsource equipment services. Having a well-trained parts and service organization with strategic geographical coverage will be critical to meet these demands.