A multitude of vendors were at ProMat this year. The show was very well received, and the majority of people in attendance were upper level decision makers. I invested my two days in vendor interviews.
Most everyone had a very successful 2008 – a number of companies reporting record profits for 2008. Vendors that offer commodity product lines (carts, shelving, etc.) were the first to experience the economic downturn.
In October, the flow of orders began a steep decline, and this trend has continued into 2009. Many vendors have already eliminated the 2nd or third production shifts.
Vendors offering engineered solutions are doing better but have also felt the impact of the sluggish economy. Many projects, though viable, have been suspended pending funding.
The general outlook from most is a very slow first quarter that will drag into the second quarter. Quote requests that were almost non-existent at the end of 2008 have begun to ramp since the start of 2009, and the general outlook among attendees is optimistic.
Some vendors offered ideas and observations for this economic environment:
- Mezzanines are being used by companies who are closing and consolidating warehouses.
- VRC’s are being used for smaller items that would be hand-loaded on the lift.
- Resin-type flooring as savings vs. concrete.
- Safety netting under pushback racking as a cheaper alternative to metal decking.
- Stainless carton flow in the pharmaceutical industry.
- Safety products for protecting warehouse columns, posts, guardrail, etc., have been selling well.