The Packaging Machinery Manufacturers Institute (PMMI), the leading global packaging industry resource and trade association, says the U.S. domestic demand for packaging machinery is projected to level off in 2007 to an estimated value of $6.27 billion. PMMI’s U.S. Packaging Machinery Purchasing Plans Study provided the data, represents the collective voice of 468 decision makers responsible for 7,160 packaging lines in 1,073 plants located throughout all key U.S. market segments.
North American Packaging Machinery Manufacturers have experienced consistent growth over the last five years since the economic downturn of 2001. This no-growth scenario for packaging machinery purchases in 2007 reflects a cautionary reaction to the uncertainty of the U.S. economy, rather than decision s based on financial imperatives.
PMMI anticipates optimistic forecasts for the following market segments: Pharmaceutical/Medical (+2% to +4%), Foods (+1% to +3%), Chemical Products (+0% to +2%) and Converters, Printers, Others (+0 to +2%).
Key Market Drivers
While the Purchasing Plans Study indicates machinery sales to level off in 2007, the end users surveyed indicated several market specific factors, trends and expected developments leading to machinery orders as well as leading to a reduction in packaging machinery spending.
Market Trends Leading to Packaging Machinery Orders:
- Increasing focus on improving packaging line efficiency and/or productivity will drive machinery spending as U.S. companies look to squeeze more savings out of their manufacturing operations.
- End user’s need for additional flexibility to handle a widening range of packaging requirements will encourage machinery purchases for efficient changeovers, with minimum downtime.
- Escalating concerns about product security and tracking will strongly influence the investment in machinery.
- Increasing use of packaging as a competitive differentiator will continue to drive the demand for innovative packaging solutions.
- Growing demand for ‘convenience’ packaging expected to influence the ongoing trend in 2007.
Market Trends Leading to Reduced Spending for Packaging Machinery:
- Adequate existing machinery and major packaging machinery purchases in 2006 will cause end users to reduce spending this year.
- End users’ strategic cost-cutting initiatives, such as plant closings, to improve profits will influence reduced spending on packaging machinery.
- End users’ holding significant capital funds for expansion into emerging markets, with less available for more mature markets.
- Shift of production to lower-cost overseas markets is expected to continue in 2007.
For the complete study visit www.pmmi.org
SOURCE Packaging Machinery Manufacturers Institute (PMMI)
Nicole Camiola
New Equipment Digest
Online Content Editor