Various financial newsletters that cover the Industrial Economic Outlook state that the U.S. can expect GDP growth in the 2.3% range in 2026. The improved outlook reflects a more supportive fiscal policy environment, less restrictive monetary policy, and a tariff situation in which further escalation is unlikely.
These articles also state that Business Fixed Investment has been and will continue to be sustained by all things Tech- and AI-related, with business-friendly tax policy changes to support investment growth in more traditional capex categories, which have struggled of late.
We can also look forward to new business returning to the U.S., in addition to the TECH and AI spend. Some of these are already taking place but expect the bulk of these projects to begin operating in the next couple of years.
Let’s hope that fiscal and monetary policy don’t upset the apple cart. Remember, if we add to the national debt or lower interest rates, we can expect prices to rise because the dollar will be worth less.
Documentation on equipment dealers suggests that new and used inventories are high, prompting OEMs to offer incentives on new machines, with successful results. Sounds like gook plan until OEMs decide it is time to go back to standard pricing, even if it means lower unit sales. More recent information suggests inventories have stabilized, with the outlook more certain. Will this work for the dealers who have been experiencing low margins?
Dealers, of course, have other options to improve margins.
- Move the used units as quickly as possible unless you believe using them offsets any upcoming price hikes.
- Refurb and sell units with a maintenance contract.
- Market parts and service more aggressively
- Offer new short-term and long-term rental programs.
- Meet with customers to find new services you can provide.
- If demand increases for any specific revenue silo, increase the rates
Each dealer, however, will need to manage their store depending on where they are located, their customer mix, how much tariffs impact pricing, and how much Tech and AI they have available to work with. In other words, each dealer has unique profit opportunities.
From a Strategic point of view, I would go back and find your copy of the December 2025 MHW publication, which outlined various paths to investigate to see if any parts-and-service potential offerings could fit your operation and your customer needs. Chris Aiello provided many discussion points regarding dealer-OEM relationships as well as programs to share with both potential and existing customers.
Vee Sitharama then outlined changes to shop and warehouse buildings to make them more resilient and agile, noting that AI will play a significant role in achieving these goals. I attended an Oracle program last week where they demonstrated how they can tie all of the company’s systems together to manage all segments of the business and determine why any specific action occurred. It was amazing.
Looking ahead, it’s clear that embracing technological advancements and staying informed about the industry’s best practices will be crucial for dealers seeking a competitive edge. As new tools and strategies emerge, especially those integrating AI to streamline operations and enhance customer engagement, proactive adaptation will set successful dealers apart. Regularly reassessing processes, leveraging data-driven insights, and fostering strong relationships with both customers and manufacturers will help position your dealership to capitalize on evolving market dynamics. Ultimately, flexibility and a willingness to innovate will be the keys to sustaining growth and profitability in the changing landscape.
Since dealers are now in the shop and warehouse providing services, it strikes me that lift truck dealers should also be the ones supplying maintenance for both automation programs, as well as the Robot members working in both the shop and the warehouse.
THERE IS ONLY ONE MAJOR ISSUE REGARDING THESE NEW SERVICES. ROBOTS work 24 hours per day and maybe even 7 days a week. It looks like planning for this type of service will take a lot of management discussion to plan how to service this equipment. Working with the equipment manufacturers should be at the top of your list when following up on this opportunity.
When I reviewed to determine how many robot manufacturers there are. I was surprised by how many there were. The list is very, very long.
Is there any doubt that industries coming back to the U.S. or new to the U.S. will want state-of-the-art building, automation, AI, and systems to minimize payroll and other employee costs? This approach will not only impact their business, but also your current customers’ business who may have to compete with these state-of-the-art operations. Think about it, how long will you have that customer who is far behind the technology curve? You must believe that OEMs have a major in this process as well.
It should be worthwhile drawing up a program to sell to existing customers on automation, robots, AI applications, and bidirectional training, along with a financial model to discuss costs, funding requirements, joint venture agreements, and ROI. Maybe you could do this by partnering with your OEM and/or your twenty group members who choose to participate.
Dealers also could open a new revenue silo or form a joint venture with various manufacturers to involve existing customers in these new, cost-effective programs.
A dealer may even want to develop a program to train people in various automation, AI, and robotics roles to assist with managing and maintaining the new technology, with investments from the other program players and even your OEM. Having a trained staff that you “own” would be a great way to lock in your services.
2026 is going to be the year you start investigating how to get involved with automation, AI, and Robotics. This will make you one of the industry leaders who decided to move forward rather than remain behind. Perhaps you could work out a deal with your OEM to take over the dealers who have no desire to move into the NEXT INDUSTRIAL EVOLUTION.
By 2027, many of these points will be in full swing for those who want to get involved. So go back and find the December 25 Material Handling Wholesaler issue, or go to www.MHWmag.com to view past issues and access the December publication. Set up a game plan to investigate possibilities to get you started in one or two additional revenue silos that will make you rich.
Happy New Year!
About the Columnist:
Garry Bartecki is a CPA and MBA with GB Financial Services LLC, and a Wholesaler columnist since August 1993. E-mail [email protected] to contact Garry.
