The Economic, Material Handling and Manufacturing Outlooks in a High‑Risk Environment
Article from MHI Solutions Magazine
THE U.S. AND global economic outlooks have darkened following the onset of the war between the United States and Iran and the accompanying rise in oil prices. Geopolitics and Cold War Two tensions remain the biggest risks to markets and the economy, increasing the likelihood of slower growth and higher inflation tied to elevated energy prices. Even if this conflict were to end immediately, energy prices would likely remain elevated due to damage to global oil and gas production assets and transport infrastructure.
Despite significant macroeconomic risks, the outlook for material handling and manufacturing is more nuanced. Prioritized structural macro tailwinds tied to supply chains, reindustrialization and economic mobilization present upside opportunities.
Global Backdrop and Industrial Demand
The International Monetary Fund’s (IMF’s) growth forecasts in April 2026 were revised downward, although they remained positive. The April 2026 IMF World Economic Outlook (WEO) projected global real gross domestic product (GDP) growth of 3.1% in 2026 and 3.2% in 2027, following a stronger 3.4% growth rate in 2025. The war with Iran is a key factor that influenced the IMF’s decision to lower its global growth forecasts.
Even with slower global growth, manufacturing activity has remained relatively firm. For material handling firms and manufacturers, this environment reveals a key takeaway: slower growth does not mean weaker logistics demand. In fact, supply chain complexity and regionalization are poised to increase as global supply chains bifurcate further, and corporations increasingly seek to insulate themselves from Cold War Two geopolitical and disruption risks…
