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 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.
Rob 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,” Rob 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.