Procurement Market Intelligence Report

Material Handling Services
Sourcing Guide & Market Intelligence

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Material Handling Services Global Overview

Definition

Summary

Material handling services include the movement, storage, protection, and control of goods within or between buildings and vehicles. Material handling services are typically a single core competency of third-party logistics providers that offer a suite of services. Typical buyers include warehouse and distribution companies, logistics and transportation companies, material processing companies, and manufacturers.

This Report Includes:

  • Manual and Automated Freight Loading and Unloading
  • Conveyance and Sortation
  • Cargo Weighing Services

Not in this Report:

  • Long-Distance Shipping
  • Order Fulfillment
  • Supply Chain Management

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Global Material Handling Services Procurement Trends

Discover the top international trends affecting procurement in the global Material Handling Services market.

Warning Trends


Public sector demand slumps as the government enters shutdown

  • On October 1, the US federal government entered a shutdown after negotiations for a new appropriations bill failed.
  • During a government shutdown, essential federal government operations, such as law enforcement, air-traffic control, and social security, persist, while nonessential operations are paused and workers involved in these operations are furloughed. Thus, the current shutdown is expected to result in 750,000 federal workers being furloughed, representing a $400 million reduction in daily expenditure by the federal government.
  • This significant reduction in federal spending and operations will affect the entire US economy, weakening aggregate demand and slowing economic growth. For example, the 35-day government shutdown in Q1, 2019, reduced aggregate demand in both the public and private sectors, resulting in a 0.2% reduction in GDP growth that quarter.
  • The effects of the shutdown are likely to be most acute in markets where the public sector is a major buyer segment, weakening demand and increasing average vendor risk by destabilizing important revenue streams.
  • As negotiations for a new appropriations bill to reopen the government remain ongoing, ProcurementIQ will continue to monitor the situation and update this story with the latest information.

Global Material Handling Services Market - Suppliers by Region

Country/Region Number of Suppliers
#1 Europe 2,000
#2 United States 1,100
#3 Oceania & Southeast Asia 980

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  • Canada
  • United States
  • Mexico
  • Latin America
  • South America
  • India
  • China
  • Europe
  • Africa & Middle East
  • Australi & New Zealand
  • Oceania & Southeast Asia

Geography Drilldown - US & Europe

Average Cost of Material Handling Services

United States

2026 Market Pricing
$70.00 to $XXX.XX
per hour

Europe

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Average Price

Prices in the Material Handling Services market range from $70.00 to $XXX.XX, depending on Type of Labor, Complexity of Network Requirements, Machinery Required and Location. For example, lower prices are associated with Regular employee ($70.00 to $350 per hour) and Normal working hours ($70.00 to $450 per hour), whereas higher prices are associated with Supervisor ($80.00 to $550 per hour) and Nonstandard working hours ($80.00 to $550 per hour).

Need the scoop on international price trends?

Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.

Material Handling Services Category Price Trends

Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Material Handling Services market, prices in the US have declined -2.7% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +3.8%.

United States (2022-2025)

-2.7%
Compound Annual Growth Rate

Europe (2022-2025)

3.8%

Compound Annual Growth Rate

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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.

Cost Analysis - Total Cost of Ownership for Material Handling Services

Total cost of ownership is Medium in the Material Handling Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Delays may raise the total cost of ownership unexpectedly.

Negotiated Before

Transportation

Buyers must pay separately for the transportation of goods and any delivery fulfillment. However, some material handling vendors offer transportation and delivery services and may offer discounts for bundled purchases of such services.

Billed During

Fuel

Fuel expenses can be substantial due to the large machinery typically involved in material handling,

Unforeseen

Delays

Waiting time charges are applied if material handling services are scheduled but the cargo has not yet arrived. Such fees cost about the same as the originally scheduled hourly charge for the labor or equipment.

Emergencies

Potential emergencies may include service disruptions due to poor loading and unloading or loss of inventory. If pallets are not loaded properly onto vehicles, they may fall off the vehicle during transport, resulting in lost or damaged inventory.

Buyer Power in Procurement Negotiations

In 2026, buyer power amounts to -0.7 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Recent Price Trend. Subscribers can access details on eight other factors that impact buyer power. Learn more

United States

-0.7

Europe

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Buyer power forecasts: your glimpse into the future

Develop strategies for the upcoming year and identify unforeseen opportunities for buying now

  • Actionable "Buy Now" and "Buy Later" insights
  • Near-real-time updates to current and forecast Buyer Power Scores
  • Methodology and weightings for Buyer Power Score Components

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Supply Chain Risk

The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:

1st

Tier Suppliers

  • Material Handling Equipment Distributors
  • Terminal Operation System Providers
  • Transportation Equipment Manufacturers

2nd

Tier Suppliers

  • Forklift & Conveyor Manufacturers
  • Software Publishers
  • Computer Manufacturers
  • Engine & Turbine Manufacturers

Biggest Material Handling Services Suppliers in the US by Revenue

The largest Material Handling Services vendors by revenue in the US are Expeditors International of Washington Inc., Kion Group AG and Hunt J B Transport Services Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more

Supplier Operational Size Headquarters Number of Employees Market Share (%) Market Share Performance (3yr trend) Total Revenue ($ million) Profit Level (%) Risk Level
Toyota Industries Corporation Global Kariya, JP >10,001 < 5
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Daifuku Co. Ltd. Global Osaka, JP 1,001-10,000 < 5
United Parcel Service, Inc. International ATLANTA, GA >10,000 < 5
Deutsche Post Ag Global Bonn, DE >10,001 < 5
Honeywell International Inc. Global CHARLOTTE >10,000 < 5
C.H. Robinson Worldwide, Inc. Global EDEN PRAIRIE, MN >10,000 < 5
Ryder System, Inc. Global MIAMI, FL >10,000 < 5
Hunt J B Transport Services Inc. Global LOWELL >10,000 < 5
Kion Group AG Global Frankfurt, DE >10,001 < 5

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Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.

Profit Analysis

The average profit margin across vendors in the Material Handling Services market is 19.8% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more

Vendor & Supply Chain Analysis

Healthy sales growth contributes to low financial risk for suppliers. This trend increases buyer power by reducing the threat of service disruptions and enhancing the value of long-term agreements and relationships.

Buyers benefit from this market’s low and stable market share concentration concentration because no single supplier has enough power to dictate market prices.

Moderate supply risk somewhat increases the risk of supply shortages and price shocks for buyers.

The United States is a net importer of forklift trucks which presents buyers with a wide variety of competitively priced goods that may have unique advancements or capabilities. However, fluctuating trade policies and volatile supply chains within top importing nations such as China may contribute to increased risk when dealing with foreign suppliers.

Supplier Information

Bedeschi S.p.A.

Bedeschi S.p.A. is a private company operating globally. The company's offerings include material handling services. Founded in 1908, the company is currently headquartered in Limena, Padova, Italy with an estimated 625 employees. Subscribe to learn more

C.H. Robinson Worldwide, Inc.

C.H. Robinson Worldwide, Inc. is a freight transport services and logistics company serving various industries worldwide. It leverages contracted transportation companies, including motor carriers, railroads, and ocean and air carriers. It also provides a wide range of value-added logistics services, such... Subscribe to learn more

Daifuku Co. Ltd.

Daifuku Co. Ltd. is a public company operating globally in the manufacturing sector. The company's offerings include conveyor systems, automated storage & retrieval systems, automatic guided vehicles and material handling services. Founded in 1937, the company is currently headquartered in Osaka, Japan with... Subscribe to learn more

Deutsche Post Ag

Deutsche Post AG is a global logistics company operating under the DHL and Deutsche Post brands. It organizes its business into five divisions: the Express division, which transports urgent documents and goods on time from door to door, with Time Definite International (TDI) as its primary product; the Global... Subscribe to learn more

Expeditors International of Washington Inc.

Expeditors International of Washington Inc. is a public company operating globally in the professional, scientific and technical services sector. The company's offerings include material handling services, general warehousing & storage, freight forwarding services, customs brokerage services and third-party... Subscribe to learn more

Honeywell International Inc.

Honeywell International Inc. is a global technology and manufacturing company that designs, develops, produces, and markets consumer and industrial products. It organizes its business into four reportable business segments: the Aerospace segment, which supplies products, software, and services for aircraft;... Subscribe to learn more

Hunt J B Transport Services Inc.

Hunt J.B. Transport Services, Inc. is a surface transport, delivery, and logistics company for various industries. It provides intermodal freight solutions to customers throughout the continental United States, Canada, and Mexico. It designs, develops, and executes supply chain solutions to support various... Subscribe to learn more

Kion Group AG

Kion Group AG is a public company operating globally in the manufacturing sector. The company's offerings include pallet trucks, forklifts, conveyor systems, automated storage & retrieval systems, automatic palletizers. Founded in 2013, the company is currently headquartered in Frankfurt, Germany with an Subscribe to learn more

Ryder System, Inc.

Ryder System, Inc. is a public company operating globally in the real estate and rental and leasing, professional, scientific and technical services, healthcare and social assistance and other services (except public administration) sectors. The company's offerings include truck trailer leasing, vehicle rental,... Subscribe to learn more

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Procurement Management KPIs for the Material Handling Services Market

Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Labor Utilization. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Customer Service and other factors.

KPI Level of Importance (1-5) Measurements Key Considerations
Average Resolution Time

Length of time from query to solution

Number of resolved tickets

Vendors should be measured by their ability to quickly resolve issues.

The average resolution time represents the average amount of time it takes to resolve a support ticket.

The average resolution time can be used to determine a company’s support responsiveness. This KPI can also help measure the material handling supplier's effectiveness and identify risk factors for bottlenecks and downtime.

Labor Utilization

Unscheduled downtime

Unscheduled downtime losses can lead to late deliveries, lost customers, high production costs, and revenue losses.

The supplier shall be responsible for scheduling and managing the labor resources used in providing material handling services and ensuring that the labor resources have adequate skills, training, and experience.

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Questions to Ask During Procurement Negotiations

How can I gain leverage during negotiations?

Quality Control

How do you collect and analyze information on your performance?

What are your main metrics for internal quality measurement?

Insurance

What insurance do you offer with your service?

What is covered in the event of breakage during loading or unloading?

Security

Do you conduct security audits and regular dangerous goods inspections?

What types of compliance equipment and processes are used?

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Material Handling Services RFP Guidelines

What should my RFP include?

Organizational Overview

Buyers should describe their organization's line of work.

Buyers should list their business locations and the size of their operations.

Statement Of Need

Buyers should state the length of the contract they desire, including any renewal options.

Buyers should list any specific requirements they have for suppliers, such as geographic location or experience supplying material handling services to related companies.

Project Budget

Buyers should state which pricing model they prefer suppliers to provide their quotes in and what the stated price includes.

Buyers should include their preferred payment schedule.

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We display average pricing information, trends and market data.

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  • Total cost of ownership
  • Cost structure benchmarks and analysis
  • Supply chain and vendors
  • Global supplier breakdown
  • Market share concentration
  • Regulation and business requirements
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