Forklift Market Positions for Recovery

After a year defined by delayed investment decisions, rising costs and fragile confidence, the UK forklift truck market is moving through a period of adjustment rather than retreat, a new financial report reveals.
The latest UK Forklift Truck Market Outlook, compiled for the UK Material Handling Association (UKMHA) by Oxford Economics, shows that cost pressures and economic uncertainty have influenced investment decisions throughout 2025, with many companies delaying fleet renewals or opting for shorter-term leasing.


However, the report suggests that 2026 will mark the beginning of a gradual return to improved conditions, supported by easing inflation and more favourable financing. Forklift truck orders are forecast to grow again as confidence strengthens, with further steady expansion expected through 2027. Analysts point to this as a transition into a more stable, sustainable replacement cycle rather than a return to pandemic-era peaks.


UKMHA CEO Rob Fisher (pictured below) said: “The year has required resilience, but we are encouraged by the projected upturn from 2026 onwards. The fundamentals of our industry remain strong, and when businesses feel more confident, we expect investment to return.”


The UKMHA’s industry survey showed that while some firms reported improved order books, confidence remained fragile. However, Association members show increasing levels of optimism for the return of modest sales growth, aligning with the predictions of economic forecasters.

The report suggests that 2026 will mark the beginning of a gradual return to growth, driven by easing inflationary pressures and a loosening of monetary policy conditions. With financing expected to become more affordable and supply chain uncertainty starting to settle, total forklift truck orders are forecast to recover by 9.4% in 2026. This uplift is set to be broad-based, with counterbalance truck orders projected to rise by 8.2%, supported by steady improvement in industrial production.


In the warehouse segment, truck orders are forecast to rebound sharply by 10.1% in 2026, following an unexpectedly weak performance in 2025 linked to softened online retail and consumer spending trends. Sales of pedestrian controlled warehouse trucks (Class 3), which were near to record highs in 2024, are projected to fall sharply during 2025 and then recover modestly in 2026.


Looking to 2027, the data points towards continued growth, albeit at a slower and steadier rate, with counterbalance orders forecast to rise by a further 6.5% and warehouse orders by a modest 1.9% as the market settles into a more normalised pattern of investment and operational planning.


Fisher added that new entrants to the UK market demonstrate the continued belief in the long-term strength of materials handling, making the next edition of the IMHX logistics solutions show in September 2027 all the more attractive.


“Transition should not be misread as decline,” he said. “It is preparation. Our industry has shown time and again that it emerges stronger, and we believe it will do so again. They recognise the UK as a market worth investing in,” added Rob. “That provides healthy competition, but also fresh collaboration opportunities. For established suppliers and newer players alike, IMHX 2027 will be a major milestone, and we would encourage organisations to start planning in early 2026 to ensure they are ready to showcase their capabilities.”

Towards an AVR Robotics Future

Craig McDonnell of ABB Robotics tells Logistics Business why the company’s new AI-enabled technology marks the next great breakthrough – Autonomous Versatile Robotics (AVR).

ABB Robotics is no newcomer. The Swiss-based global power and automation business has a long and golden history in robotics. “ABB actually invented the modern computer-controlled electrical robot, 51 years ago,” says Craig McDonnell, Business Line Managing Director Industries. “We’ve been front and centre on the robotics journey and our footprint is global.”

The official numbers back him up. The ABB Robotics division has approximately 7,000 employees. With 2024 revenues of $2.3 billion it represented about 7 percent of overall ABB Group. That makes it one of the most significant names in world robotics.

The portfolio is comprehensive. “We have the broadest range of robots on the market,” McDonnell explains. “The mechatronic side spans very small robots, typically used in electronic-type applications, all the way through to large robots that can move 800kg loads and manipulate accordingly. More recently, we have also developed collaborative robots with complete capability, as well as other combinations of mobile robotics where we combine the robot manipulator with the mobile capability.”

This history and breadth mean that when ABB targets more innovation, the world sits up to take notice. The company’s vision – which is already materialising in physical form on the warehouse floors or Europe – is for Autonomous Versatile Robotics (AVR), in which generative AI plays a game-changing role.

AVR builds on the legacy and foundation of our traditional USPs. We are known for the path accuracy of our robots and for the quality and life expectancy of the robot. We have a strong reputation for the reliability of our products.

Autonomous Versatile Robotics

So, what is AVR? In the company’s official description robots will be “moving beyond fixed procedures and repeatable tasks – to a new era where they plan, adapt, and perform complex work in real time, uniting vision, precision, speed, dexterity, and mobility – all powered by generative AI.”

The question is how. First, ABB has deployed the potential of its RobotStudio® simulation suite, an extremely accurate digital twin environment to design and control robotics. “RobotStudio allows us to move into a number of new spaces and it’s on that basic platform that we’ve built our AVR approach,” explains McDonnell.

Second is the application of AI. In September this year, ABB Robotics announced an investment in California-based LandingAI to accelerate the transformation of vision AI, making it faster, more intuitive, and accessible to a broader range of users. The collaboration, claimed as a first, will integrate LandingAI’s vision AI capabilities, such as LandingLens, into ABB Robotics’ own software suite, marking another milestone in ABB’s journey towards truly autonomous and versatile robots.

In essence, LandingAI’s LandingLens platform enables the rapid training of vision AI systems to recognise and respond to objects, patterns or defects with no complex programming or AI expertise required. Barriers to adoption are therefore significantly reduced.

McDonnell describes the background to the product development as a series of learnings.

“The traditional, structured environment gave robots a predefined way of operating,” he explains. “Over the past decade or so, the robotics sector has expanded into new areas such as warehousing and logistics, and these are more unstructured environments. Yes, there remains a portion that is very structured, but you will often see situations of multiple SKUs, or fast changes to the types of products being handled. This demand led us to work on the sensing and perception of robots, and in linking that to motion control, to the navigation and dexterity of the robot so that it can handle these unstructured applications.

More recently, we’ve started adding AI not just to the vision side but also path planning, programming and even language recognition, to enable our robots to handle unstructured environments and to make significant steps forward in ease of use.

So, in bald layman’s terms, I venture, if a warehouse employee decides unilaterally to dump a new configuration of pallets in the middle of the warehouse floor, the robot does not cease work as it waits for new commands; it devises its own solutions.

Yes, that’s exactly right,” he agrees, “but there are also more structured scenarios. So, for instance, if you are handling products with a high degree of variability, which perhaps the robot did not know before arriving at the product location – or the reverse, the new product arrived at the robot – the enhanced vision systems enabled by LandingAI will enable the robot to manipulate and handle the product far more simply and with far less effort than was previously possible.

In an environment where both time and labour are precious, and expensive, commodities, this matters.

Traditionally, this reconfiguration takes months, and it takes high degrees of integration… The secret sauce is that the simplified and faster usability enables even the end user, the warehouse floor personnel, to handle these variations. The fact is, if we can’t get that usability to a very high level, then widespread adoption of this new AI technology is going to be a challenge. And we believe very strongly that we’ve solved that problem.

Deploying AI

Simple system usability and fast configuration are critical adoption factors, he confirms. “It’s been over a decade since we started deploying AI in robotics applications in logistics with great success – for instance, in the clothing sector, achieving 99% picking reliability. Those are real advances, but you probably needed an AI engineer and an expert to accompany that robot. So the advance is about moving beyond a science experiment to an industrial-hardened application that can be applied at scale and is easy to deploy and adjust as required.

With LandingLens, LandingAI have developed a very user-friendly way to identify and characterise the object. We can then add our application and robot knowledge around specific applications – we call them ‘skins’ – so that the product you receive is 80-90% ready to go, with pre-trained algorithms and approaches, and all you then need to start is perhaps a few pictures from your mobile phone of the specified environment.

Barriers to entry, and costs, are massively cut. “We did some calculations, and you would need hundreds of engineers for these tasks if you didn’t have this usability. Integrators and value-providers themselves would simply not be able to participate profitably without it. So that is very exciting for us.”

Exciting times, compounded by a further announcement in October that ABB Robotics has divested from the wider group to Japanese technology investor Softbank.

“ABB had announced the intention to spin off the business and were working towards that,” Craig McDonnell explains. “We met Softbank through that process; as we are closely aligned to their vision on physical AI and the transformational effect it can have on robotics, ABB decided on the divestiture approach.”

So AI is not a flash in the pan in robotics. “Physical use cases of AI are still at very early stages, but there are going to be many applications to come. And robots are going to be increasingly accessible to the people who operate them,” he predicts.

Drive Electronics Evolve with New Features

NORD DRIVESYSTEMS are expanding its range of drive electronics with new developments to meet changing industrial requirements. Frequency inverters have been part of the company’s modular drive systems since the 1980s, forming a key element of its complete motor and gear unit solutions.

When designing drive systems, NORD places emphasis on factors such as energy efficiency, operational reliability, and total cost of ownership — not only on power output. “For us, drives are more than just their power,” says Jörg Niermann, Head of Marketing at NORD DRIVESYSTEMS.

We develop drive solutions that are precisely tailored to applications and associated customer requirements.

Updated Frequency Inverter Portfolio

The NORDAC family of frequency inverters includes centralised and decentralised models designed for use across more than 100 industries. The systems are compatible with a wide variety of configurations, and many include integrated functions that reduce the need for additional components.

  • NORDAC PRO – Control cabinet inverter with multi-protocol Ethernet and multi-encoder interfaces for multi-axis control.
  • NORDAC LINK – Installed close to the motor with plug-in capability for easier installation and maintenance.
  • NORDAC FLEX – Motor-mounted inverter with modular design and scalable functions.
  • NORDAC ON – Compact inverter for high-efficiency motors, offering Ethernet connectivity and plug-and-play setup.

New Features and Upcoming Developments

NORD is extending the functional safety of its NORDAC frequency inverters to include additional communication protocols. Upcoming versions of the NORDAC ON will feature expanded safety options — including SLS, SMS and SSM, alongside existing STO and SS1 functions. These will operate via Profisafe and FSoE interfaces, allowing integration into Ethernet environments or stand-alone use.

The company also plans to introduce the NORDAC ON PURE, designed for wash-down areas and hygiene-sensitive environments. It will include the food-safe NXD tupH® surface treatment, a rounded housing design, and a simplified plug configuration. The development will enable the supply of complete aluminium-housed drive solutions with enhanced corrosion resistance from a single source.

Warehousing Surge Ahead of Peak Season

As the peak shopping season approaches, retailers are putting the finishing touches to their seasonal strategies, to ensure shelves and online channels are well stocked to meet consumer demand. Last year’s UK Black Friday and Christmas sales showed a mixed performance. Despite a strong Black Friday, the entire 2024 festive period was somewhat lacklustre for retailers, with overall sales growth for the last three months of the year being only 0.4% higher than figures posted in 2023.

Black Friday and the run-up to Christmas – often referred to as the ‘Golden Quarter’ – are vital for UK retailers, with the period accounting for a significant share of annual sales.

According to Dave Hands, Managing Director at logistics, transport and shipping specialist LTS Global Solutions, he is projecting a 30% spike in warehousing demand ahead of the festive season, potentially signalling an optimistic outlook for retailers aiming to rebound from last year’s challenges and fluctuating sales performances.

Hands commented: “There is certainly a quiet confidence among our retail customers as they gear up for the festive season that this year’s sales performance over peak will surpass last year’s numbers, despite consumer spending confidence remaining somewhat dubious, especially as the budget will be announced in late November. From working with our retail customers closely over the summer we’re projecting that storage requirements will increase by a sizeable percentage which wasn’t necessarily the case last year, this is a positive sign for both the retail market as a whole and the warehousing sector, which have both limped through recent peak seasons under the weight of external challenges.

“Retailers are acutely aware of the issues faced in 2024 and are going into peak with a slightly different mindset, especially regarding stock management and how much to hold for how long. Supply chain difficulties and how consumers are approaching the holiday season has somewhat changed and it’s been a learning curve for everyone. For us in particular, it has been about ensuring that we can keep pace with that change and are flexible enough operationally to cater to market demands of today, not yesterday, last week or last year.”

While last year’s downturn in retail sales over Christmas in particular was mostly driven by the ongoing cost of living crisis, Dave Hands goes on to say that in recent years, forecasting demand against managing stock has become increasingly challenging for both retailers and their logistics partners due to the unpredictability of not only the marketplace, but the wider supply chain.

Logistical challenges in particular compounded the situation – with issues such as stockouts, delays, and shifts in consumer behaviour impacting the retail sector’s ability to capitalise on peak season demand.

“Last year, many were looking to strike a fine balance of ensuring they have enough stock available to meet demand, but also so they weren’t overstocked to the point where they were left with excess inventory post-season while incurring unnecessary logistics and storage costs”, Hands continued.

“While some will inevitably be looking to secure warehouse space much earlier this year to meet consumer expectations during the Golden Quarter, there’s also other variables which we are observing within the market that are actively contributing to this. For instance, more businesses across the retail are stretching out seasonal promotions over a longer period to give consumers more time to shop and spread out their spending which is driving a more sustained demand curve, and in turn, another facet potentially contributing to the capacity spike we’re seeing in warehousing in this quarter.”

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