Results of the 2004 Business Trends Survey A presentation by: Peter McDonald On behalf of the Business Trends Task Force consisting of: Bill Harrison (Lift Tech) Urs Nager (Anderson) Robert Warren (Cascade) ITA Annual Meeting October 2004

1) On a scale of 1 to 10, with 10 indicating a very significant impact, how much of an impact will the supply of coke affect the cost of sheet and plate steel? Average score – 7.4 (21 responses)

One to Two Years – 67% (14 responses) 2) How long will this level of impact continue? Less than One Year – 0% One to Two Years – 67% (14 responses) More than Two Years – 33% (7) responses

On a scale of 1 to 10, with 10 indicating a very significant impact, how much of an impact will currency fluctuations have on the sourcing of products? Average score – 7.0 (21 responses)

On a scale of 1 to 10, with 10 being very likely, do you foresee a switch from global component suppliers to national component suppliers due to currency fluctuations? Average score – 5.3 (21 responses)

On a scale of 1 to 10, with 10 being a significant impact, how much of an impact will tariff issues have on the sourcing and supply of products? Average score – 5.4 (21 responses)

Please list any other considerations that you feel will impact the sourcing of products. Strong global demand will restrict competitive sourcing availability from China/Asia and Eastern Europe. Supply of materials will follow the highest paying customer which may not be the US. Country risk, freight, and inventory impact. Lead times and documentations issues. The Chinese ‘political’ atmosphere and stability. Strong global demand and limited global capacity will restrict low cost opportunities in China and Eastern Europe. High domestic steel prices will drive OEM’s to outsource production to low cost countries. Ocean freight.

On a scale of 1 to 10 with 10 being very likely, what is the likelihood that your company will use reverse internet auctions as a purchasing tool in the next year? Average score – 3.5 (21 responses)

On a scale of 1 to 10, with 10 being a significant likelihood, what is the likelihood that your major customers will increase the use of reverse internet auctions for sourcing: A) lift trucks? Average score – 4.5 (21 responses) B) parts? Average score – 4.1 (21 responses)

What level of impact do you expect the current steel price situation to have on industry profitability? Not Much 10% (2 responses) A Moderate Amount 28% (6 responses) A Significant Amount 62% (13 responses)

Do you believe there is a value for your company to have suppliers who can supply total systems (Hydraulics & Controls) in the future? Yes 62% (13) No 38% (8)

On a scale of 1 to 10 with 10 being most likely, what is the likelihood than US forklift manufacturers will look to China as a potential market by: Exporting US produced products to China? Average score = 3.6 (20) Partnering with Chinese forklift manufacturers to produce trucks in China? Average score = 6.8 (20) seeking parts suppliers from China? Average score = 6.8 (20)

When do you believe that the current lift truck market in China (48,000 in 2003) will exceed the US market (140,000)? 2010 0% 2015 29% (4) 2020 58% (6) Never 29% (4)

On a scale of 1 to 10, with 10 indicating a very significant impact, what will be the impact of Chinese produced lift trucks on the North American market? A. Class 1 Average score = 3.4 (20) B. Class 2 Average score = 2.4 (20) C. Class 3 Average score = 4.9 (20) D. Class 4 Average score = 5.1 (20) E. Class 5 Average score = 7.0 (20)

Will your company offer fast charge ready options within the next two years? Yes - 50% (10) No - 50%(10)

On a scale of 1 to 10, with 10 being highly likely, what is the likelihood of future technology changes within specific product areas for new vehicles: A. driveline components Average score = 5.95 (20) B. motors Average score = 7.95 (20) C. transmissions Average score = 6.15 (20) D. axles Average score = 4.8 (20)

What do you believe the trend will be regarding the use of each of the following technologies: Increase – 100% B. Brushless DC Increase – 30% (6) Decrease – 30% (6) Remain same – 40% (8) C. Separately excited Increase – 25% (5) Decrease – 40% (8) Remain same – 35% (7) D. Series Increase – 5% (1) Decrease – 65% (13) Remain same – 30% (6)

When do you think fuel cell powered forklifts will be in serious production? Within 2 years – 0% Between 2 and 5 years – 40% (8) More than 5 years – 60% (12)

On a scale of 1 to 10, with 10 indicating a strong shift, how much of a shift will there be away from diesels towards electric powered forklifts in the North American market in the next five years? Average score – 4.7 (20)

Does your company see a growing trend to have the lowering speed of the mast be independent of the load? Yes - 55% (11) No - 45%(9)

Does your company see a growing trend to have an electronic operator interface (joystick, lever, etc)? Yes - 100% (20)

Do you see a trend towards the relocation of hydraulic control valves and multipurpose control valves away from the body of the lift truck, thereby allowing more functions to be utilized, and the visibility through the mast to be maintained? Yes - 62% (13) No - 38%(3)

Who did you consult within your company to develop answers to these questions? Chief Marketing Manager - 33% (6) Chief Technical Officer - 33% (6) Other - 33% (6)

Results of the 2004 Business Trends Survey A presentation by: Peter McDonald On behalf of the Business Trends Task Force consisting of: Bill Harrison (Lift Tech) Urs Nager (Anderson) Robert Warren (Cascade) ITA Annual Meeting October 2004