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Selling to U.S. Conveyor Manufacturers? Three Things to Know

Posted by IndustrySelect on Wednesday, January 22, 2020

Empty multiple conveyors in a large Jelly Belly factory


Predicting the trajectory of the U.S. manufacturing market is notoriously tricky. The multi-industrial nature of the market lends itself to the rise of specific industries while others fall behind.

Part of being an excellent salesperson in the manufacturing market is understanding which industries are on the come-up so you can be ahead of the curve. Conveying equipment is one such industry.

While U.S. manufacturing, in general, has slumped to a 10-year low, the conveying equipment industry is currently experiencing a CAGR of 4.6% and is predicted to value over $7 billion by 2026. Data from MNI indicates an employment increase of 4.41% year-over-year in the US conveying equipment industry.

If you're interested in capitalizing on that growth, here are three things you need to know about the conveying equipment industry in the U.S.

1. The European Region is Dominant Despite U.S. Success

The U.S. manufacturing market has suffered setback after setback in recent years. For example, virtually every industry in the manufacturing market, conveying equipment included, has taken a hit under President Donald Trump's steel tariffs, which cost the steel economy over $5.7 billion.

As a result, the European region - which has mostly avoided tariff ramifications - has continued to surge. It held a majority of the market in 2018.

If you want to get on the good side of American conveying equipment manufacturers, helping them compete with Europe on a global scale is a sure in. Data from MNI indicates that the Midwest region holds 46% of all conveying equipment manufacturers, so focus your efforts on that area to optimize prospect concentration.

2. The E-Commerce Market Has impacted Conveying Equipment Tremendously

The meteoric rise of e-commerce has resulted in more need than ever for conveying equipment that lets manufacturers quickly pack and ship products. Increased demand from the e-commerce market is one of the driving factors behind the conveying equipment industry's growth in the U.S. despite marketwide setbacks in manufacturing.

As a result of the seemingly limitless potential of e-commerce, conveying equipment manufacturers will continue to invest heavily in the industry. Salespeople capable of providing conveying equipment makers with products or services aimed at synergizing conveying equipment and e-commerce will be incredibly attractive prospects.

3. Automation, Robotics and Industry 4.0 are the Heavy Hitters

Automation, robotics and Industry 4.0 form the holy trinity for just about every manufacturing industry in 2020, and conveying equipment is no exception.

According to data collected by MNI, manufacturers like Intelligrated and Material Handling Systems that focus on cutting-edge technology are among the largest in the US. These companies have experienced rapid growth as a result of placing themselves at the forefront of manufacturing technology.

Technologies such as robotics and Industry 4.0 are high-reward, low-risk investments for manufacturers. They provide a suite of benefits while possessing almost no drawbacks.

If you're selling a product or service affiliated with robotics, automation, or Industry 4.0, now is the time to push for contracts aggressively. These areas will be overflowing with competitors soon (if they aren't already), so striking now is essential.

For salespeople and marketers targeting the conveying equipment industry, it's an exciting time full of opportunity. If your sales campaigns need an edge but you don't know where to start, we can help. IndustrySelect provides salespeople with up to 30 data points to help them identify and prequalify the best leads. Profiles also include names, titles and email addresses of hard-to-reach executive decision-makers. To learn more or try out a free demo, visit our website.

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