U.S. primary machinery shipments total $185 million in Q3 2008: SPI

American manufacturers and importers of primary plastics machinery and equipment shipped US$185 million worth of primary machinery in the third quarter of 2008, according to the Society of the Plastics Industry, Inc. (SPI).

This represents a19 per cent decrease from the US$228 million shipped in the third quarter of 2007, the SPI said, and is six per cent lower than the US$196 million shipped last quarter.

“The downtrend in the equipment spending data will accelerate in the fourth quarter of this year and the first half of 2009, but more favorable investment conditions are expected to emerge later in 2009 and throughout 2010,” said Bill Wood, an economist who provided the analysis for SPI’s report.

While Wood’s outlook in the short-term is for continued recession, he believes that the longer-term fundamentals that spur capital spending growth will return after next year.

The SPI’s report stated that the number of injection molding machinery units shipped in the third quarter of 2008 decreased 26 per cent from the number shipped in the third quarter last year, and it is 18 per cent lower than the number of units shipped in the second quarter of 2008. Also, the number of extrusion (combined single and twin screw) machinery units shipped in the third quarter of 2008 decreased seven per cent from the number shipped in the third quarter of 2007, but is 13 per cent higher than the number shipped in the second quarter of 2008. And there were 20 new blow molding machinery units shipped in the third quarter of 2008 – five fewer than were shipped in the third quarter of 2007. The shipments dollar value for these machines in the third quarter is six per cent lower than the amount shipped in the third quarter of last year, but is 69 per cent higher than the amount shipped in the second quarter of 2008.

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