ITA Examines Trade Policy, Economic Indicators and Forklift Market Trends
By Brian Feehan
TRADE POLICY CONTINUES to command worldwide attention, and its constant shifts make long-term planning especially difficult for manufacturers worldwide. This uncertainty in government policy affects every corner of our industry. I remain optimistic, however, that greater clarity lies ahead – clarity that will enable businesses to invest and grow with confidence.
U.S. Economic Indicators
The International Monetary Fund projects global economic growth at 3.2% in 2025, edging down to 3.1% in 2026. In the U.S., the Bureau of Economic Analysis reported a 3.8% annual GDP increase in Q2 2025, up significantly from a decrease of 0.6% in Q1, primarily driven by consumer spending and a decrease in imports. Decreases in investment and exports offset a portion of the GDP gains. The IMF data is important because it provides a global growth outlook while highlighting how trade policies and tariffs could either hinder or boost economic performance in the coming years.
Meanwhile, U.S. census data shows manufactured durable goods orders rose $1.5 billion or 0.5% to $313.7 billion in September 2025, with transportation equipment orders increasing by 0.4% to $110.7 billion. Light-vehicle sales increased by 2% (m/m) in November 2025 to an annual rate of 15.6 million vehicles. Recent action by the Trump administration to roll back Corporate Average Fuel Economy (CAFÉ) standards could lower the purchase price of vehicles. In addition, individuals may be able to take advantage of the newly passed auto loan interest deduction of up to $10,000 annually as part of the One Big Beautiful Bill Act, signed in July 2025. These actions may incentivize consumers to purchase new vehicles that could lead to higher levels of light vehicle sales.
North American Forklift Market Before reviewing the North American forklift market, I wanted to share some information we released earlier this year highlighting our industry’s contributions to the US economy. In March, we released an update to our Oxford Economics report, “Lifting America – The Economic Impact of Industrial Truck Manufacturers, Distributors and Dealers.” The original report was released in 2017. Some of the key findings of the update include:
• Contribution to GDP: $36.6 billion (up 42%)
• Jobs: 257,500 (up 23%)
• Federal, State and Local Taxes: $8.4 billion (up 58%)
These numbers underscore the tremendous impact our industry continues to have on the U.S. economy.
Retail forklift orders in North America reached 185,000 through November 2025, with an annualized projection of 202,000. This would be an increase of nearly 2% over CY 2024. The share of electric trucks continues to dominate the North American market, representing 72% of November 2025 year-to-date sales, while internal combustion trucks comprised the remaining 28%.
Year-to-date, Class 1 truck orders reached 45,000, up from 43,000 in 2024. For Classes 4 and 5, orders totaled 56,000 compared to 58,000 in 2024. In engine type for Classes 4 and 5, LPG trucks hold an 81.1% share but dropped from 81.9% in 2024, while diesel trucks rose 0.2% points to 16.4%. Gasoline-powered trucks accounted for a smaller 2.5% share. Warehouse trucks maintained a 50% share for November 2025 year-to-date compared to the same period a year ago. Likewise, counterbalance trucks held steady year over year at 50%.
Government Policy Impacts
Economic Growth
The United States-Mexico-Canada Agreement (USMCA), up for a formal review in 2026, has strengthened North American trade by modernizing rules and expanding market access. It has boosted growth across industries by reducing trade barriers, enhancing manufacturing exports and should be maintained to continue supporting US manufacturing.
The current U.S. regulatory environment is fostering manufacturing growth through policies that strengthen domestic supply chains and incentivize capital investment while maintaining consumer choice. This environment is evolving at the federal and state levels, as evidenced by the California Air Resources Board (CARB) decision this year not to pursue its proposed Zero Emission Forklift Measure, preserving the consumer’s choice to select the right product for the right job.
About the Author: Brian Feehan is the president of the Industrial Truck Association.
