U.S. machinery purchases stabilizing: PMMI

PMMI estimated that the U.S. demand for equipment in 2007 will be $6.27 billion. The data comes from PMMI’s U.S. Packaging Machinery Purchasing Plans study that’s based on responses from 468 decision-makers who are responsible for 7,160 packaging lines in 1,073 plants throughout all key U.S. market segments, the association reported.

PMMI anticipates optimistic machinery purchasing forecasts this year from the pharmaceutical/medical market, with 2% to 4% growth, followed by foods at 1% to 3% growth, chemical products (up to 2%), and converters, printers, and others (up to 2%).

Reductions in spending for packaging machinery, the PMMI reported, are driven by the following trends:

• Adequate machinery purchases in 2006

• End-user cost-cutting initiatives, including plant closings

• End-users’ expanding into emerging markets

• Shifting production to lower-cost overseas markets

The 2007 Purchasing Plans Study is available for $1,500 by contacting Paula Feldman at 888/275-7664. The study reports detailed findings for eight segments and goes into depth on market trends and factors affecting packaging machinery purchasing.