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Packaging machinery purchases predicted flat for 2001

Spending on packaging machinery by U.S. domestic companies is expected to level during 2001 to approximately US$4.9...


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May 23, 2001 by Canadian Plastics

Spending on packaging machinery by U.S. domestic companies is expected to level during 2001 to approximately US$4.9 billion, according to a study by the Packaging Machinery Manufacturers Institute (PMMI)of Arlington, VA.
The study’s findings point to a business environment in which the negative and positive drivers of demand offset each other, so the study concludes that U.S. demand for packaging machinery will be flat in 2001 with a bias to the down side.
Packaging machinery expenditures by the food segment are predicted to rise 1 to 3%, while the pharmaceutical industry segment will rise by 5 to 7% and the paper/non-durable products industry by 4 to 6%. Five other segments, including beverages, consumer durables and personal care products, are expected to reduce spending.
In the food segment, PMMI’s study predicts machinery demand will benefit from the increased output of private labelled packaged foods, and the continuing shift toward flexible packaging.
The beverage product segment is undergoing a pause in capital spending following two consecutive years of expansion. Part of the fall-off in demand is traceable to consolidation within the industry.
Reduced spending in the range of 11 to 13% is expected from the consumer and commercial durable products segment. Falling consumer confidence continues to dampen prospects for a near-term revival of strong discretionary spending, the study states. Manufacturing operations for many of the products within this segment continue to be moved outside the U.S., thereby reducing the number of clients for packaging machinery in the domestic market.