Survey predicts packaging machinery buying spree
Replacing old machines and expanding packaging capacity are the top two reasons companies will buy new packaging ma...
Replacing old machines and expanding packaging capacity are the top two reasons companies will buy new packaging machinery in 2005, according to a recent survey.
The Packaging Machinery Manufacturers Institute (PMMI), a trade association with more than 500 members in both Canada and the US, surveyed 453 decision-makers responsible for overseeing 7,000 packaging lines in more than 1,200 plants.
About two-thirds will spend more or the same amount of money on packaging machinery, with over 27% buying solely to replace legacy equipment, PMMI said. Increasing production, including by new plant openings, for example, will induce another 20% to invest in packaging machinery, while 12% said accommodating additional products coming to market in 2005 will fuel their purchases.
Also, increasing automation, complying with new packaging requirements requirements driven by end-users’ attempts to reduce costs, improve shelf appeal, ease of product handling and conforming to major customers’ unique packaging requirements, are factors driving investment in packaging machinery.
The biggest contributors will be the pharmaceutical and medical sectors, which will account for between 11 and 13% of new purchases. In comparison, the beverage sector will be responsible for 9 to 11% of the increase, with the personal care sector comprising 7 to 9% and the food industry making up 6 to 8%. Converters and printers will account for only 3 to 5% of the spending increase.
If PMMI’s predictions come true, it will be the fourth consecutive year of growth for this industry.