Key Note values the apparent UK market for mechanical handling equipment at £1.73bn in 2000, up from £1.3bn in 1996. The mechanical-handling industry is an input supplier to most of the UK's manufacturing sector, including agriculture. It is also a small supplier to the construction sector. The industry is, however, a relatively minor employer, with only 1,325 VAT-registered enterprises in 2001. Only 65 of these firms employ more than 100 staff.

The mechanical-handling industry is strongly allied to the economic fortunes of the manufacturing sector, and it has seen muted growth in the last few years, after a rise in 1997.

FORK-LIFT TRUCKS

Fork-lift trucks account for the largest share of the UK market for mechanical handling equipment. This sector has grown significantly since 1996, owing to the growth in modern automated warehousing and distribution centres, and to the move by large users towards managed fleets. Such fleets are composed of vehicles that are younger than the industry average.

CRANES AND TRANSPORTERS

The cranes and transporters market has three main consumer sectors: general engineering, ports and freight-handling facilities, and the construction industry. At present, the growth prospects for these industries are muted, and consequently very slow growth is expected in the crane market in the period to 2005.

LIFTING, JACKING AND WINDING DEVICES

Lifting, jacking and winding devices include vehicle hoists, garage jacking systems and pulley blocks. Most of the items sold in this sector relate to the motor industry. The products with the largest shares of the sector are electric pulley tackle and hoists, and electric winches and capstans.

Growth in sales of lifting, jacking and winding devices is expected to be steady, matched largely to growth within the car trade.

CONVEYORS AND ELEVATORS

Conveyors and elevators accounted for by far the largest share of the mechanical-handling market in 1996, but the sector has since fallen to second place as a result of the growth in the fork-lift truck market. The main products in the conveyor market are belt elevators and conveyors, roller conveyors, and pneumatic bulk-material conveyors.

The industry has been directly affected by a reduction in expenditure in the processing sector, although increased use of conveyors for warehouse and distribution applications has helped sales generally. The sector has a heavy negative balance of trade with both EU and non-EU countries, despite the transport costs involved, although import penetration has reduced in recent years.

LIFTS AND ESCALATORS

Lifts and escalators represent the smallest sector of the mechanical-handling market. This sector has been affected by the worldwide reduction in construction output, with UK exports falling steeply between 1996 and 2000. The apparent UK market for lifts and escalators experienced a steep fall in value in 1997, but has recovered slowly since then.

OTHER MECHANICAL HANDLING EQUIPMENT

This Review also considers the UK market for mechanical handling equipment not included in any of the other sectors. This sector saw strong growth in 1997, possibly from the mining and quarrying market, but it has remained relatively stable since then.

FORECASTS 2001 TO 2005

The apparent UK market for mechanical handling equipment is expected to grow very slowly between 2001 and 2005, although the prospects are expected to improve towards the end of the forecast period. Growth will be driven primarily by the fork-lift truck sector, owing to continued developments in logistics and further growth in distribution centres.