- Contract Packaging
- Leaders in Packaging
Article | May 31, 2004
Packaging machinery demand to rise
According to the Packaging Machinery Manufacturers Institute’s seventh-annual Purchasing Plans Study, consumer and industrial goods companies will increase packaging expenditures this year to $5.479 billion, a 4% rise compared to 2003.
Based on interviews with 424 decision makers responsible for 12 packaging lines in 1 plants of key segments of the U.S. market the study shows that 66% of respondents plan to spend as much or more on packaging machinery as they did last year. Growth was forecasted in six of eight market segments accounting for 81% of the U.S. and Canadian market. Those segments include beverages chemicals durables foods personal care and converters.
The top three reasons cited by respondents for new equipment orders in 2004 were “replacing machinery to gain efficiency speed flexibility and productivity” (32.5%); “expanding production capacity for existing products” (19%); and “adding automating machinery to reduce labor costs” (15.1%).
“This is the first year since the inception of the study that the ‘no change in spending’ group did not represent the clear majority of respondents” said Chuck Yuska PMMI president. “This is good news in that there may be a shift away from the overall mood of extreme caution we’ve seen in the market for many years.”
An executive summary of the 2004 Purchasing Plans Study includes further details on purchasing intentions reasons for not purchasing this year the rising influence of major retailers and how purchasing decisions may be affected by RFID requirements. The 167-page study is available for free to members; $1 to nonmembers. For information contact Paula Feldman director of statistics at 888/275-7664 or by visiting www.pmmi.org.
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