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FLEXO Magazine : April 2008
INDUSTRY INDICATORS PMMI Predicts Mixed Growth C onsumer and industrial goods companies plan on spending ap- proximately $6.3 billion for pack- aging machinery in 2008, a 0.6 percent increase in spending over 2007 levels, according to PMMI's 2008 U.S. Packaging Machinery Purchasing Plans Study. The research report notes only two of the eight tracked market segments will show growth: foods, up 2 percent to 4 percent; and personal care products, up 0 percent to 2 percent. The remaining six categories show moderate declines, but with slight potential for growth: beverages (-1 percent to -3 percent), pharmaceuticals (0 percent to -2 percent), personal care products (0 percent to -2 percent), chemi- cals (-1 percent to +1 percent), consumer, commercial and industrial durablesfhard goods (-1 percent to +1 percent), paper products, textiles and other non-durables (-1 percent to -3 percent). - FLEXO A PR I L "PMMI members' customers reported they are holding steady with their packag- ing machinery spending plans for 2008, despite weakening economic conditions," noted Charles D. Yuska, president and CEO of PMMI. "With 85 percent of the respondents expecting to buy roughly the same amount or more than they did in 2007, we expect some market segments to be fine, with other groups feeling a tight- ening as consumer goods companies wait out the current economic quarter." The PMMI 2008 Packaging Machinery Purchasing Plans Study is based on inter- views with 511 decision-makers respond- ing for 1,564 plants in the U.S. NEW PRODUCT NEEDS Factors influencing purchasing deci- sions fell into a range of categories. An estimated 39.8 percent sought to replace older equipment to improve speed, pro- 2008 www.flexography.org ductivity and efficiency. Adding new packaging machinery to accommodate new products was cited in 36.2 percent of cases. Approximately 35.3 percent were adding new packaging lines to increase production. Another 34.4 percent require additions for increased packaging line automation. Replacing older equipment to improve uptime, reliability, mainte- nance costs constituted 32.6 percent of purchases. "Even with difficult economic condi- tions triggering fewer decisions to buy, we expect companies will see the strong value in replacing older equipment to ensure they maximize production capacity and ultimately lower costs," added Yuska. "We are confident that PMMI member companies are positioned well to weather the current economic conditions given the strong value propositions they deliver in the areas of reliability, productivity and