For me, this is the time of year where I am most capable of zooming out a bit on business and life as the rapid pace of fourth quarter budgeting and the holidays are in the rearview mirror. As we sit atop the roller coaster hill that is about to drop into the curves, loops, and hills of 2025, I want to share some thoughts about the year ahead as well as present a challenge for each of you to consider.
The US Economy and Material Handling Industry in 2024
First, a quick recap. On the economic front, the US story is quite positive. We saw GDP growth in 2024 that was stronger than many other advanced economies and powered by healthy consumer spending, declining interest rates, low unemployment, wage growth, and record stock market performance. Payrolls also had a historic year, meaning the amount of people getting paid in the US increased last year.
And while the Material Handling industry overall is expected to have slightly declined in 2024 (official numbers coming soon), this decline would come after two record performances in 2022 and 2023. My sense is that the turmoil of the COVID era and its many punishments – heavy inflation, volatile supply chains, and a whole lot of “new normals” – is behind us and a healthy outlook lies ahead in 2025.
MHI: The Nation's Largest Material Handling, Logistics, and Supply Chain Association Predicts a Strong 2025
I’m grateful to serve on the Board of Governors for MHI and interact with a host of its 1,000+ members. These members provide products and services in the material handling and supply chain field, just like Gorbel® does. I like to think of MHI members as the engine under the hood of all things manufactured and moved in this world. MHI and our industry has NEVER been more relevant than it is now… with markets that were simultaneously shaken by supply chain mayhem and unprecedented household consumption.
As a member of the MHI Board, I am also blessed with direct exposure to the leading thinkers and economists of our space. One such person is Jason Schenker who is Chairman of The Futurist Institute. Jason provides MHI with perspective and forecasts on where our industry is going and how much (or little) we will be growing in the years ahead. For 2025, the outlook is strong and steady… buoyed by the economic tides of 2024: notably strong household consumption, re-shoring/near-shoring of supply chains, and lower interest rates. In totality, the output expected from MHI members will reach record levels in 2025 and in 2026. Let the tailwinds blow!
Gorbel® Can’t Plan for Everything, But We Can Be Prepared for Anything
For Gorbel® specifically, this positive outlook is fueling our optimism and plans. Within our Overhead Solutions division (which includes cranes, ergonomic lifting, hoists, and fall protection), we expect our Dealer channel to throttle their business levels new heights. Our Dealers are our sole channel to market and thus our lifeblood. We are super excited to exhibit multiple new products to our Dealers at the ProMat trade show in Chicago in March 2025. My recollection says that we have never had such a rich slate of new products to unveil at one time. Get to ProMat to see for yourself!
And within our Warehouse Solutions division (this is ergonomic conveyors like Destuff-it™ and our other dock area solutions), we continue to add more and more household-name customers in the retail, 3PL, e-commerce, and supply chain world. And… ProMat will serve as the platform to launch new products for Warehouse Solutions as well. Crazy exciting!
In a nutshell, the business side of Gorbel® and our material handling peers in North America looks to be quite strong in 2025 and beyond. I have been through a few business cycles during my career, and I frankly can’t think of a better, more bullish outlook than this. If you think about it, pretty much every forecast is wrong to some degree. And we know things can go sideways in a blink. Remember 9/11, the Great Recession, and COVID?
So Gorbel® is deliberate about being fluid, flexible, and rolling with the punches when the unexpected happens. A recent theme in our strategic planning process was “we can’t plan for everything, but we can be prepared for anything.” That’s the kind of mindset that capitalizes on good times and makes the best out of tough times. Bring it on, 2025! We’re ready to take our business to new heights.
The Meaningful Challenge
Early in this blog, I mentioned putting forth a meaningful challenge. Why might I do this? Well, I just spewed all sorts of good fortune about expected business levels and economic growth. I certainly wouldn’t wish for the opposite… BUT… to me, the economic story is only one side of the coin. There is an equally weighted side that is about people. It’s about culture, connection, and community.
You might be asking yourself, “Where’s the challenge, Brian?” Well, it comes from a recent experience I had earlier this month. A dear and local friend of mine, John Engels, is a leadership coach who changed my life decades ago with his teachings. Every year, John hosts a “retreat” during the first week of the year and offers his latest thoughts to hundreds of attendees. One particular topic that hit me like a lead hammer this year was related to the growing “isolation” within American society. Let me share some of the direct learnings that came from his retreat:
- - The US Census reported that in 1940, 7% of Americans lived alone. In 2024, 29% live alone. [Source]
- - The percentage of Americans who say they have no close friends has quadrupled since 1990, according to the Survey Center on American Life. [Source]
- - 54% of Americans report sometimes or always feeling that no one knows them well, according to a 2018 Ipsos survey. [Source]
These rapid shifts in humanity are mind-blowing. So much change, so fast. Unprecedented. This data points to the undeniable conclusion that community and togetherness are withering, which means isolation is growing. And it’s happening right in front of our eyes. Bolstered by the COVID years, we have seen colossal behavior shifts to remote work, screen time, social media, technology adoption, and reduction of in-person everything. A particular quote from John’s retreat that hit me was:
“The danger of technology is not that it will replace our jobs, but that it will replace our relationships. Technology is not a substitute for connection.”
- Sherry Turkle, PhD, MIT Professor of Science and Technology
Wow. Just think. If you measured the level of technology in this instant, it would be the least advanced it will ever be in your lifetime since it just keeps getting “better” every single day. In other words, there’s no rewind button on technology. Only VERY-fast-forward.
So, I’m sounding the alarm and presenting you with a challenge. Invest intentional energy and thought into culture, connection, and community in your work and personal lives. Are you working remotely? Consider going back into the office for one or two days a week to connect with your coworkers. Haven’t used the phone as a talking device in a while? Maybe call one relative or old friend a week. Are you all about results at work? Focus on connecting 1:1 with bosses, peers, and the folks you manage to curiously ask what’s really happening in their lives. And I could go on and on.
John’s retreat showed me how much I have slipped in this area compared to the pre-COVID years and reinvigorated me to reverse the trend of isolation from my world. And I’m hoping that maybe, just maybe, that this quick read jars something loose in you to act differently… and take initiative to sow some de-isolating seeds of culture, connection, and community in your corner of the world. If you don’t do it, who will?