2026 promises measured optimism driven by technology, innovation and adaptability.
By Nicole Needles
MHEDA MEMBERS ARE preparing for a year that promises both opportunity and challenges. A recent member survey shows that most companies anticipate growth even as geopolitical shifts, tariffs and economic volatility continue to shape the material handling industry. Insights from members and broader economic indicators suggest that measured optimism is the prevailing mindset.
Survey Snapshot: Who Responded
Survey responses represent a broad cross-section of MHEDA members:
- Storage and handling companies: 41.3%
- Industrial truck firms: 28.3%
- Systems integrators: 19.6%
- Other categories (consulting, support services, marketing): 10.9%
Growth Expectations Across Segments
Survey data and member interviews reveal several key factors driving growth expectations. Economic conditions, cited by more than 30% of respondents, remain critical. Nathan Andrews of Morse Manufacturing says that overall economic trends will guide expansion and investment decisions. Analysts at ITR Economics report that the economy remains on track for modest growth, supported by alternative data showing stable consumer demand and resilient business investment.
Drivers of Growth
Demand for automation, identified by 17% of respondents, continues to drive opportunities in e-commerce, parcel handling and workflow optimization. Jason Effing, chief revenue officer at Systems in Motion, says, “2025 was a record year for us. We are planning on 2026 being an up year as well.” Kevin O’Neill of Steele Solutions adds that growth in data centers driven by automation investments will also play a major role. Kevin Von Grabe of DR Storage Systems emphasizes that customer confidence remains a significant driver for his company’s expansion plans.
Geopolitical factors and tariffs are top concerns for 13% of respondents. Kevin Jensen of Proenclosures notes that geopolitical uncertainty is also shaping product development priorities, particularly in forklift safety and automation. Nancy Fateen of Seizmic Inc. says her company is “planning for growth but preparing for volatility,” reflecting a cautious approach to the global and domestic market environment.
Other considerations include government regulations and interest rates. Jeff Bollinger of ACSS points to regulatory changes as a factor influencing product planning. Greg Brown of WW Cannon expects a strong 2026 economy, citing business-friendly policies, decreased regulations and lower interest rates as key enablers.
Across the board, members expect sales to increase next year. Industrial truck and storage and handling companies, including Steel King Industries and Movu Robotics, project growth fueled by economic conditions, automation and strategic initiatives. John Fontaine of Industrial Shelving Systems expects sales to remain level and says he does not see emerging markets as major drivers, highlighting a cautious perspective.
Multiple factors are propelling growth. Continued demand for automation is driving expansion in e-commerce, parcel handling and forklift safety technologies. Julie Vandeputte of NorthAmCon explains, “Strategic partnerships allow us to bring innovative solutions to market more quickly.” Klaus-Dieter Wurm of Movu Robotics anticipates gains in cold storage despite tariff headwinds.
Key Factors Shaping 2026
- Automation demand: Continued growth in e-commerce, parcel handling and forklift safety technologies.
- Strategic partnerships: Manufacturers emphasize collaborations to drive new products.
- Emerging markets: Niches such as data centers, cold storage, pharmaceuticals and automation are cited as growth areas.
Challenges and Headwinds
Despite optimism, members remain cautious. Tariffs and geopolitical uncertainty continue to affect racking and equipment sales. David Cranston Jr. of Cranston Material Handling says that 2025 investment slowed due to these factors, but multi-year opportunities are expected once policies stabilize. Economic volatility, such as interest rates, regulatory changes and market fluctuations, complicates planning. Don Heemstra of Steel King Industries notes that policy uncertainty affects decision-making in capital-intensive areas.
Strategies for Expansion
Members are proactively responding to market opportunities. Companies, including Systems in Motion, plan to increase headcount to meet demand. Firms such as NorthAmCon and Proenclosures are launching new product lines to capture emerging opportunities. Domestic manufacturing investments are also a priority. Klaus-Dieter Wurm highlights Movu Robotics’ new Atlanta plant, opening in April 2026, which will mitigate tariffs and support customer growth. Improving customer relationships is another key strategy. Brian Bluff of Site-Seeker sees AI applications as a promising avenue to increase efficiency for clients. Mia Mundy of Pioneer Search Group reports that her consulting work continues to track automation demand, though she does not see emerging markets as major drivers.
Just under half of respondents identified niche growth opportunities in data centers, cold storage, automation and forklift safety technologies, pharmaceuticals and international markets. The remaining respondents do not see emerging markets as significant drivers, reflecting caution amid geopolitical and economic uncertainty.
Segment Insights
Segment insights reveal differences in growth patterns. Systems integrators are seeing growth driven by automation, e-commerce and parcel handling, with companies hiring additional personnel and launching new product lines. Mitch Smith of Hytrol notes that key accounts in e-commerce and parcel handling are fueling most new business. Storage and handling companies are focusing on expansion in data centers, cold storage and pharmaceuticals. Tariffs have impacted racking products, but domestic manufacturing investments help mitigate these effects. Industrial truck companies expect growth in automation and international markets. Slower equipment sales are offset by rental and repair services. Thompson & Johnson is exploring new business lines and strengthening customer relationships to manage market fluctuations. Support services and consulting firms remain cautiously optimistic.
Alternative data tracked by ITR Economics suggests that the broader economy remains on track, with stable consumer demand, resilient business investment and indicators that material handling and distribution sectors are well-positioned to benefit from automation and reshoring trends. These factors provide a supportive backdrop for member growth projections in 2026.
What Does It All Mean?
The MHEDA member forecast for 2026 reflects optimism tempered by realism. Geopolitical issues, tariffs and economic uncertainty remain top concerns, but members are positioning themselves to capitalize on opportunities through personnel growth, new products, domestic manufacturing investments and stronger customer relationships. David Schneckenburger of Thompson & Johnson observes, “The crystal ball is foggy. The uncertainty caused by tariffs has hurt capital investments this year. Once finalized, the manufacturing sector should see major investments due to re-shoring and depreciation incentives, bringing multi-year opportunities.”
For the material handling industry, 2026 promises measured optimism driven by technology, innovation and adaptability. Companies balancing growth initiatives with prudent risk management are likely to emerge stronger, setting the stage for a dynamic and productive year. While challenges remain, MHEDA members demonstrate resilience and strategic foresight, prepared to navigate uncertainty while seizing growth from automation, e-commerce and strategic market opportunities.
Article Takeaways
1. Pushing Ahead Despite Uncertainties. – MHEDA members enter 2026 with measured optimism, expecting growth despite economic and geopolitical uncertainties.
2. Business Expansion Is on the Horizon. – Automation, e-commerce and emerging markets like data centers and cold storage are key drivers of expansion.
3. Members Are Making Moves Where Possible. – Strategic investments in personnel, new products and domestic manufacturing position companies to navigate risk while capturing opportunities.
