Continued growth in manufacturing and commerce in China will support the development of the logistics equipment industry, said Lu Daming, the director general of the Chinese Mechanical Engineering Society.

Lu said sales of logistics equipment are increasing, with the gross output generated by the industry reaching 220 billion yuan in the first half of 2011, a 30 percent year-on-year increase.

The director general projects the figure will reach 400 billion yuan for the entire year.

In the first six months of 2011, logistics equipment valued at 4.7 billion yuan was exported.

But Lu noted domestic manufacturers do not have a big enough market share, so "companies should pay more attention to innovation and management style to strengthen competitiveness".

Increasing labor costs are now a challenge to many companies.

"It is hard to transfer the costs to end users, so companies need to absorb the increase. We advise them to improve technological innovation and develop high-end products," said Lu.

He added that the annual CeMAT ASIA fair provides good opportunities for companies to meet clients and gather new market information.