Forkliftaction: 2025 was a bumpy ride for the materials handling industry
- Mar 2
- 3 min read
If you could only use one word to describe the global materials handling sector in 2025, it would surely have to be “uncertainty”. The geo-political landscape shifted rapidly through the year as new tariffs on imports into the US were imposed, lifted, threatened and changed.
This had a seismic impact on the global economy, creating widespread confusion, uncertainty around investments, leading equipment producers to pursue other markets and resulting in some re-shoring of production back to the US.
At the same time, Chinese materials handling equipment manufacturers have been aggressively expanding their overseas customer bases as they compete for a larger slice of the global market share.
Behind all the geo-political and macro-economic uncertainty, the issues of labour shortages and climbing energy prices continue to both plague the sector and drive innovation which has seen the adoption of automation and electrification continue to grow in our industry.
What industry organisations say Lauren Reed, CEO of MHEDA (Material Handling Equipment Distributors Association) says while industry talk throughout the year centred on topics such as automation, AI, the labour shortage and economic uncertainty, “what felt particularly significant was the shift from ‘what’s possible’ to ‘what’s practical’.”
“Companies increasingly focused on solutions that can be implemented, supported, and scaled reliably, while improving safety, throughput, and the customer experience,” she continues.
“Across the MHEDA membership, 2025 was widely described as a year where companies had to create more value in every customer interaction, and practice patience. Many customers were hesitant to make decisions, but the market wasn’t at a standstill; instead, decision cycles stretched and scrutiny increased.
“In response, members leaned into stronger discovery, clearer ROI justification, and tighter alignment between sales, operations, and service. Improving customer confidence in solution value and the partnership behind it was, and continues to be, a critical part of getting deals across the finish line.” Reed pushes back at suggestions the market was quiet in 2025 insisting it was instead “cautious and selective”.
“The most consistent takeaway I hear from the MHEDA community is that this industry is resilient and grounded,” Reed continues. “Even in uncertain periods, companies adapt; they focus on customer outcomes, invest in their teams, and look for smarter ways to compete.”
Clare Bottle, chief executive of the UK Warehousing Association (UKWA), notes the three themes dominating the year were “automation, energy, and land use” - the latter is a particular concern for Europe with such limited space, while automation and energy prices are having a global impact.
“Many operators are investing in robotics and data systems, but progress is uneven, especially for SMEs,” Bottle continues. “On the energy side, there’s been huge interest in solar, battery storage, and EV charging. And planning remains a hot topic, with media debate around how to balance logistics growth with environmental and community concerns.” Bottle adds that the UK’s warehouse sector has shown “remarkable adaptability through turbulent times from Brexit and Covid to cost inflation and energy shocks”.
“What’s striking now is how the sector is evolving from being a cost centre to being a source of value creation through energy generation, automation, and skills development,” she continues.
“Warehousing has become one of the UK’s quiet success stories, and with the right support, it can play an even bigger role in driving productivity and decarbonisation.”
Read the full report 2025 was a bumpy ride for our industry, in which Forkliftaction pulls together the biggest news from 2025 covering tariffs, Chinese expansions, automation, product launches, mergers and acquisitions, and sustainability.
Forkliftaction
Comments