We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2024
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2024
    • Upload Your Video
Home » Economist warns of modest recession in 2017
newsworthy

Economist warns of modest recession in 2017

October 19, 2016
Ben Ames
No Comments

The U.S. material handling sector could be impacted by a moderate economic recession in 2017, but firms can withstand the pressure if they focus on providing long-term solutions to warehouse automation challenges, according to an economist who specializes in the industry.

Jason Schenker, president and chief economist at Austin, Texas-based Prestige Economics LLC, told the MHI annual meeting in Tucson, Ariz., yesterday that persistent weakness in industrial activity, especially in the U.S. and China, has already begun to take its toll on material handling demand, especially when measured by shipment trends.

Schenker maintains that the material handling sector is nearing the end of a six-year up-cycle, an unusually long period, and that the next 15 months will be tough sledding as the U.S. tries to dig out from a 14-month-long industrial recession and China transitions from an investment to a consumption economy. The data contained in Prestige's monthly forecast, the "MHI Business Activity Index," bears out these trends, he said.

Macroeconomic warning signs include lingering low oil prices; a stubbornly strong U.S. dollar, which has dampened demand for exports of material handling equipment; uncertainty about the presidential election; weakening new auto sales; and the rise of subprime auto loans, he told the group.

"Things are slowing up. [Capital expenditure] decisions will have to show a high [return on investment] to be justified. Industries are being very careful with their spend," Schenker said.

The good news, he added, is that any recession will be brief and shallow, and demand for material handling products and services should rebound in 2018, along with the U.S. economy. In addition, long-term trends such as the rapid growth of e-commerce will continue to spur demand for material-handling solutions, especially in the automation arena, he said.

"I'm a bit concerned, but I don't expect another Great Recession," he said, adding "if you can hold your nose through 2017, you'll be fine."

Material Handling Business Management & Finance
KEYWORDS Prestige Economics
    • Related Articles

      Economist says supply chain management field well positioned to weather possible "modest" U.S. recession in 2017

      Economist warns of moderate recession in 2020

    Benames
    Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

    Recent Articles by Ben Ames

    Baltimore port closure could trigger freight rate hikes, delays

    Port of Baltimore closure could clog nearby ports as freight is diverted

    Contract talks with East Coast port workers face September expiration date

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • UPS exec identifies three supply chain megatrends

    • PwC study: 69% of tech investments haven’t delivered expected results

    • Report: Retailers likely to take a hit from Suez, Panama disruptions

    • 2023 North America robot orders down 30% over record 2022

    • Construction starts slow down “dramatically” for industrial real estate

    Now Playing on DCV-TV

    Fc0d2d89 140e 474f 8b2f 59fe25dd89e6

    A look at the Francis Scott Key Bridge collapse and how it will affect supply chains

    DCV-TV 4: Viewer Contributed
    On Tuesday morning, news broke that the Francis Scott Key Bridge had collapsed overnight after being hit by a cargo vessel leaving the Port of Baltimore. Unfortunately, there were construction workers on the bridge at the time of the collapse and efforts have transitioned from rescue to recovery. Our thoughts and...

    FEATURED WHITE PAPERS

    • Using automation to solve the challenges of retail fulfillment

    • The Ultimate Guide for Surviving Economic Uncertainty & Supply Chain Disruption

    • Koerber: The 10 must-haves for OMS projects

    • The Complete Guide to Automated Packaging

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2024. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing