The number of lift trucks ordered worldwide grew 14% in 2006, and revenue figures among the world’s top 20 lift truck suppliers reflect that strong growth.

In Modern’s annual ranking of top 20 lift truck suppliers, Toyota (No. 1), reported the highest sales revenue for the fifth year in a row. Sales at Toyota surpassed $5.5 billion* in fiscal year 2006, up nearly 9% from the number the company reported in 2005.

European suppliers experienced even greater growth, thanks in part to the increasing strength of the euro when compared to the U.S. dollar.

Sales at Germany-based Kion Group (No. 2, formerly Linde) and Jungheinrich (No. 3) grew about 18% and 22%, respectively, and much of that perceived growth is due to the favorable currency conversion.

Several companies, such as China’s Zhejiang Hangcha Engineering Machinery Co. (No. 16) and Ireland’s Combilift (No. 20), saw revenue growth of 40% or more.

According to Combilift executive Aidan McKenna, that company’s growth was fueled in part by the successful launch of five new products in the last year and by sales in new regions, such as Russia and the Middle East.

To be eligible for Modern’s annual top 20 ranking, companies must manufacture and sell lift trucks in at least one of the Industrial Truck Association’s (ITA) seven truck classes. Rankings are based on worldwide revenue from powered industrial trucks during each company’s most recent fiscal year.

While not every company had as good a year as Combilift, nearly all the companies on our list enjoyed sales growth in 2006. Because growth took place across the board, there were no major shakeups in the rankings.

All of last year’s top 20 companies returned to the list this year. Only one company—China’s Anhui Forklift Group (No. 10)—moved more than two spots.

Anhui Forklift Group, makers of Heli brand lift trucks, reported $288 million in 2005, placing it at No. 13. This year the company reported $681 million, an increase of 136% that moved the company up three spots to No. 10.

According to Anhui sales manager Wenhon Hu, the company’s 2005 data were incomplete. The reported revenue represented only Anhui Heli, a subsidiary of the Anhui Forklift Group. This year’s numbers represent sales by the entire company, he says.

Several of the top five companies have made changes to their brand or company names in the last year.

The most significant change was at Kion Group (No. 2). Last year, this company appeared as Linde. In September of 2006, Linde began separating its materials handling business from its industrial gas business by grouping its three materials handling brands—Linde, Still and OM—into a new holding company named Kion Group. Less than a month later, Linde sold Kion Group to investment firms Kohlberg Kravis Roberts & Co. (KKR) and Goldman Sachs Capital Partners.

A less significant change took place at Toyota in 2006. The company discontinued its BT Prime Mover brand in North America to focus on its more popular Toyota and Raymond brands.

Jungheinrich made a similar change. The company phased out its Multiton brand, discontinuing some of the pallet trucks and re-branding the rest with the Jungheinrich name.

Every year, Modern surveys several lift truck suppliers with revenues not high enough to make our top 20 list. This year, two of those suppliers caught our attention as companies to watch.

Godrej and Boyce Manufacturing Co. of Mumbai, India, reported $33 million in industrial truck revenue in 2005. This year, the company reported nearly $48 million, an increase of 44%. If the company keeps growing at this rate—a good possibility considering the pace of development in India—it could break into the top 20 in three or four years.

The second supplier is in another rapidly developing country: China. Shanghai-based Hytsu bought booth space at ProMat (North America’s largest materials handling trade show) for the first time in 2007, and ForkLiftAction.com reports the company had revenues of $45 million in 2006.

Another company to watch is Kion Group (No. 2). When Kion separated from Linde last fall, one of the group’s stated goals was to become “the benchmark for the material handling industry, ahead of Toyota.” Kion grew at a greater pace than Toyota did in 2006, closing the gap between them to about $200 million. It will be interesting to see how the company fares in the next few years under the management of Goldman Sachs and KKR.

According to Jim Malvaso, president of the ITA, the number of lift trucks ordered by U.S. and Canadian customers hit record highs in 2006, but most of those orders were placed in the first half of the year. Sales slowed considerably in the second half.

This slowdown is expected to continue through 2007, he says, with U.S. and Canadian sales volumes shrinking by as much as 7%.

“Worldwide, though, the market will be up,” says Malvaso. The United States and Canada, he says, may be the only regions where sales volumes will be down this year. Japan projects its orders will be flat in 2007. Europe and China expect their orders to be up.