Steel Prices and Industrial Production: Why Now Is The Time To Buy A Forklift

As the nation comes out of recession, industrial production is expected to grow nationwide, with the industrial production index forecasting increases of about 3.0{20514508106287dfb893bed48a1dcd27cc0807a1f06d58e7551de6b0ad5aea3a} from 2014 to 2017.  With increased industrial production, many associated industries are looking forward to a big bump in business. The forklift industry, which has served as a backbone for manufacturing, warehousing and other industrial applications for decades, is expected to grow faster than it has in years to meet rising demand. Find out how rising steel costs and increased demand indicate how now is the time to buy a new or used forklift.

Steel Prices as a Benchmark

Photo by Roscoe Ellis

The cost of steel affects virtually every aspect of construction, heavy industry and production. With a plunge in construction, 2009 saw steel prices drop 25.1{20514508106287dfb893bed48a1dcd27cc0807a1f06d58e7551de6b0ad5aea3a}. After a short-lived uptick, steel prices declined at an annualized rate of between 3 and 4{20514508106287dfb893bed48a1dcd27cc0807a1f06d58e7551de6b0ad5aea3a} from 2011 to 2014. However, experts expect this to change dramatically sooner rather than later. Over the next three years, steel prices are anticipated to increase 2.2{20514508106287dfb893bed48a1dcd27cc0807a1f06d58e7551de6b0ad5aea3a} per year. With steel accounting for over 60{20514508106287dfb893bed48a1dcd27cc0807a1f06d58e7551de6b0ad5aea3a} of the material used to make high quality forklifts, anyone buying a forklift in 2015 or 2016 may experience a bit of sticker shock.

How to Save Money on a Forklift

Photo by Ray Forster

Between the growth of industrial production and rising steel costs, prices on new forklifts are poised to grow by as much as 3.2{20514508106287dfb893bed48a1dcd27cc0807a1f06d58e7551de6b0ad5aea3a} each year for the foreseeable future. To avoid bearing the brunt of these higher costs, smart buyers are making purchases now before the prices go up. But this isn’t the only way to trim a few dollars from your budget. Another consideration is to buy a used forklift. Gently used forklifts from reputable providers, which can cost half as much as a new unit, are reconditioned to like new status and come with a warranty. Contact us today for the best deals on new and used forklifts.

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