The materials handling industry is approximately a $125 billion market in the United States. This consumption takes place in virtually all segments of the economy, with the vast majority found in the construction, manufacturing and service sectors.

We cannot forget about how global demand drives construction. With oil topping $90 per barrel recently, we see the construction of new power plants around the globe at a very high level. As a result, the materials handling industry is at an all-time high, with projections for that to continue to be very positive at least for the next year or so.

Our growth comes from focusing on markets such as the construction and the energy markets in the United States, as well as emerging markets around the world.

We are seeing some trends emerge in our market. One of them is an aging population—not just in the United States, but in virtually every developed country in the world. This means that the tools we develop must be lighter, safer and more ergonomic than in the past.

We also know that more people are using the Internet to find information. In fact, in a recent survey we did, our customers told us that the number one source they use for information is the Internet.

In many cases, information is becoming more valuable than the product itself. This raises a major question for us as manufacturers and distributors: Is there an opportunity to sell the information itself, separate from the product?

The traditional model of a high-priced product with lots of value-added services wrapped around it is being challenged in the marketplace. How many of you have provided your customer with a value-added service, only to have the purchasing agent then put your product out for bid to the lowest bidder?

With logistics advances in the last two decades, the way physical product is transported and stored is changing. And the role of the distributor is changing with it as well.

The traditional role of the distributor has been to carry lots of inventory for the end-user customer base. And, of course, every manufacturer expected distributors to carry lots of inventory and place large orders as a sign of commitment.

But this traditional model is beginning to change as manufacturers reduce their lead times and the variety of products continues to grow exponentially, making it virtually impossible to stock exactly the right product at the right time. And end-users are either unable or unwilling to forecast or commit to specific levels of consumption.

Every time a product is touched, handled or stored, it represents a cost to the supply chain. Those manufacturers, distributors and end-users who work together to streamline their integrated supply chain are going to be the winners in the marketplace.

The good news for all of us is, by being members of STAFDA, we don’t have to go it alone.

And, of course, as independent companies, we don’t have to give up our autonomy either to be fast and nimble in the market place as we see fit.