The Economic Outlook for Your Business Community
AS PART OF its ongoing effort to help members prepare for shifting business conditions, The MHEDA Journal sat down with MHEDA’s Business Community Chairs to evaluate the economic implications most likely to affect their respective sectors in 2026. From integrators navigating cautious capital spending, to storage and handling professionals monitoring regulatory changes to industrial truck leaders evaluating the influence of tariffs and labor pressures, these insights reflect the trends MHEDA members should be watching as they plan for the year ahead.
Systems Integrators Business Community
Darin Boik, Chair
President, Advanced Equipment Company
TMJ: As you look ahead to 2026, what key economic indicators or trends are you watching most closely that could impact the systems integrators community?
Boik: I’m watching interest rates, quote activity and whether that activity turns into real projects. If projects stall or disappear, that’s an early sign that confidence is slipping. When customers keep moving forward – even if we don’t win the job – it shows the market still believes in the value of automation.
TMJ: How do you expect material handling investment to shift in 2026? Are customers prioritizing certain types of storage solutions more than others?
Boik: Investments are tightening but becoming more targeted. Companies are focusing on projects that improve labor efficiency or remove bottlenecks rather than full facility overhauls. Storage investments are increasingly tied to throughput and automation readiness, so flexible systems that integrate with conveyors or robotics are getting more attention.
TMJ: With labor shortages still influencing operations, what strategies would you recommend for systems integrators to mitigate this?
Boik: Manufacturers continue to struggle to find and keep people, so systems need to make jobs easier, not harder. Simple interfaces, lower maintenance requirements and flexible automation that scales with the workforce are key. The goal isn’t to replace people but to help them be more productive with intuitive systems.
TMJ: How are inflation, interest rates and global supply chain pressures influencing systems integrators in 2026?
Boik: Material pricing has leveled out, but inflation and higher borrowing costs still make customers cautious. Lead times have improved, yet many businesses are phasing projects or breaking them into smaller stages to manage cash flow. Integrators who can lock in pricing early and maintain delivery commitments are earning more trust.
TMJ: What is the most significant economic opportunity for systems integrators in 2026?
Boik: The biggest opportunity is helping customers bridge the gap between partial automation and full system integration. Many companies started with isolated automation projects and now they need those systems to connect and scale. Integrators who can phase solutions, prove ROI at each step and integrate new technology with existing equipment will be positioned to win.
TMJ: Which technologies do you believe will play a more influential role in the systems integrator space next year?
Boik: AI is gaining attention, especially in AMR routing and decision-making. Robotics and goods-to-person systems remain strong. Cobots haven’t taken off the way some expected, but they still have a place in material handling. AMRs are gaining traction, though success varies depending on the application.
TMJ: What opportunities do you see for MHEDA members in the systems integrator sector to differentiate themselves in a changing market?
Boik: The biggest differentiator is how well you understand the customer’s problem before designing. Anyone can sell equipment; the real value is in listening, diagnosing and delivering a system that fits their process. Clear communication, realistic timelines and reliable OEM partnerships build trust and set integrators apart.
TMJ: What strategic guidance would you share when preparing for 2026? Where should members focus to stay competitive and resilient?
Boik: Focus on flexibility. Customers are cautious, so show them options to phase or scale automation over time. Internally, keep developing your people and strengthen supplier relationships. Execution speed and reliability will matter most when competing for business.
TMJ: Is there anything else you would like to add?
Boik: Even with all the change, the basics still matter. Technology is important, but relationships and trust still drive this business. People buy from people, and those connections carry us through both strong and uncertain markets.
Storage and Handling Business Community
Lori Palmer, Chair
President, REB Storage Systems
Palmer: As I form my thoughts and answers, please recognize that our Storage and Handling Community Committee contributed perspectives to these comments. As we expand educational opportunities within MHEDA, we continue to share ideas and differing viewpoints to offer meaningful insights that support our members.
TMJ: As you look ahead to 2026, what key economic indicators or trends are you watching most closely that could impact the storage and handling community?
Palmer: We are watching steel pricing, trade policy, labor data and consumer-driven GDP trends. Steel prices are expected to remain stable, but uncertainty around tariffs continues to delay capital investment. Shifts in federal trade policy – particularly the recent softening toward China – may reshape domestic supply chains. Labor data following the government shutdown may reflect accelerated job losses, including those tied to AI-driven restructuring. Persistent inflation raises concerns about consumer resiliency, and the U.S. GDP may see a decline of 1% or more due to the shutdown. Despite these pressures, we still expect material handling to grow, though unevenly, with larger and well-capitalized companies expanding into new verticals.
TMJ: How do you expect material handling investment to shift in 2026? Are customers prioritizing certain types of storage solutions more than others?
Palmer: Investments will continue to prioritize safety, ergonomics and automation as workforce shortages persist. The slowdown at the end of 2024 into mid-2025 allowed companies to reassess ROI expectations, particularly around automation. As automation costs decline and warehouse labor challenges remain, companies will likely reinvest in high-density storage to offset rising real estate costs. AI adoption is becoming essential; companies not modernizing ERP or WMS data to support AI-driven tools risk falling behind competitors already moving in this direction.
TMJ: With labor shortages still influencing operations, do you anticipate increased interest in automation and labor-saving storage technologies next year?
Palmer: Yes. Labor shortages are not easing, and interest in automation and labor-saving technologies will continue to rise. Automation and process improvements will justify capital expenses in 2026. Skilled trades remain critical, and MHEDA’s efforts to build workforce pathways – especially through partnerships with technical colleges and future high school programs – will be essential in creating sustainable talent pipelines.
TMJ: How are inflation, interest rates and global supply chain pressures influencing project budgets and lead times going into 2026?
Palmer: Economic uncertainty remains the greatest challenge. While inflation and interest rates can be managed, unpredictable trade and geopolitical conditions create hesitation around long-term planning. Persistent inflation will likely limit the Fed’s ability to reduce rates quickly. However, the U.S. remains a top destination for global investment, and growth in domestic manufacturing will benefit the material handling sector, even as traditional storage solutions increasingly shift toward autonomous and high-density systems.
TMJ: Are there any emerging regulations, safety standards or building code changes that could impact storage and handling equipment installations in 2026?
Palmer: The adoption of IBC 2024 and the expansion of direct analysis requirements – which has already been implemented statewide in California for Jan. 1, 2026 – will significantly impact installations, especially for suppliers serving high seismic regions. More states and municipalities are expected to follow, creating higher engineering and compliance expectations.
TMJ: Which technologies do you believe will play a more influential role in the storage and handling space next year?
Palmer: AI will continue to reshape the sector – from how customers search for solutions to how organizations market, plan and operate. Traditional search engines are becoming less central as AI-driven discovery tools rise, pushing companies to rethink customer engagement and data strategy.
TMJ: What opportunities do you see for MHEDA members in the storage and handling sector to differentiate themselves in a changing market?
Palmer: Tariffs, uncertainty and market disruption create opportunities for companies that position themselves as trusted advisors. Members who focus on solving customer challenges in safety, material flow and operational efficiency will stand out. Demonstrating expertise and offering consultative value will be key differentiators.
TMJ: What strategic guidance would you share with dealers and integrators preparing for 2026? Where should they focus to stay competitive and resilient?
Palmer: Strong relationships will continue to define success. In times of uncertainty, leaning into trusted partnerships – with both customers and suppliers – will be essential. This industry was built on relationships, and that remains its greatest source of stability and competitive advantage.
Industrial Truck Business Community
Steve Strenck, Chair
Director of Sales, Gregory Poole Equipment
TMJ: As you look ahead to 2026, what key economic indicators or trends are you watching most closely that could impact the industrial truck community?
Strenck: The top indicators to watch are GDP growth, interest rates and the geopolitical environment – specifically the impact of tariffs. When GDP growth is strong, we typically see increased manufacturing, construction and e-commerce activity. Strong GDP performance generates confidence in investment spending.
Companies feel more comfortable investing in more efficient equipment, updating aging lift truck fleets and exploring automation and robotics. Interest rates will also play a major role. Material handling investments are capital intensive and often require borrowing, so the cost of money will be a key consideration. Lastly, tariffs are likely here to stay for a while. Tariffs on steel, aluminum, batteries and semiconductors – all critical components – affect production costs across lift trucks, robotics, conveyors, racking and other warehouse products. Frequent tariff changes create uncertainty and can cause companies to delay purchasing decisions.
TMJ: How do you expect material handling investment to shift in 2026 in the industrial truck sector?
Strenck: More companies will pursue automation and other emerging technologies in 2026. The labor shortage is a major driver. Although the initial investment may be high, automation and robotics can offer strong ROI through efficiency gains, accuracy and reliability. Other emerging technologies – including motive power and stationary power – are also being evaluated as companies seek environmental benefits and reduced energy consumption.
TMJ: With labor shortages still influencing operations, do you anticipate increased interest in automation and other emerging technologies next year?
Strenck: Yes. The labor shortage is a key factor increasing interest in automation. But there are many other benefits, including efficiency gains, reduced overhead and improved consistency and accuracy in repeatable tasks.
TMJ: Are there any emerging regulations, safety standards or changes that could impact the industrial truck sector in 2026?
Strenck: Safety will remain the most important success factor. Corporate safety requirements and reporting standards are becoming stricter, and manufacturers are increasingly requiring detailed reporting of near miss incidents and workplace accidents. We’re seeing more requirements for additional warning lights and audible alerts for forklifts, and many companies now require camera systems that incorporate AI to prevent pedestrian impacts. Additional technologies such as LiDAR are being integrated into the equipment to help avoid collisions. OSHA is also finalizing a new rule requiring employers to address heat related risks in manufacturing, warehousing and outdoor environments. Companies will need to follow rules related to rest breaks, hydration and supervisor training to identify signs of heat stress.
TMJ: What opportunities do you see for MHEDA members in the industrial truck sector to differentiate themselves in a changing market?
Strenck: MHEDA members have access to a tremendous network of industry professionals facing similar challenges. Many members aren’t large enough to hire experts in AI, automation, robotics or warehouse solutions. By using MHEDA’s resources – including MHEDA-NET, Convention networking and staff support – members can differentiate themselves faster than competitors. MHEDA also offers benchmarking, educational forums and learning platforms that help members strengthen their position in the market.
TMJ: What strategic guidance would you share with dealers and integrators preparing for 2026? Where should they focus to stay competitive and resilient?
Strenck: First, invest in developing your key leaders. There’s a difference between product training and leadership training, and strong leaders today will determine success tomorrow. Stay open to new ideas. Our industries are changing, and while fundamentals matter, avoid falling into the “we’ve always done it this way” mindset.
Second, focus on the customer. Customers expect more transparency and trust. They want to know you have their best interests in mind and that you’ll be there long after the sale to pursue cost savings and efficiency improvements. Becoming an “unpaid employee” of their organization – someone who invests in their success – builds long-term, mutually beneficial relationships.
