Packaging industry predicts mixed growth for 2008
MARCH 10, 2008--Consumer and industrial goods companies plan on spending approximately $6.304 billion for packaging machinery in 2008, according to a study by PMMI (Arlington, VA, USA).
MARCH 10, 2008--Consumer and industrial goods companies plan on spending approximately $6.304 billion for packaging machinery in 2008, a 0.6% increase in spending over 2007 levels, according to a study, US Packaging Machinery Purchasing Plans, by PMMI (Arlington, VA, USA; pmmi.org). PMMI is a trade association with more than 540 member companies that manufacture packaging and packaging-related converting machinery, commercially available packaging machinery components, containers, and materials in the United States and Canada.
The research report notes only two of the eight tracked market segments will show growth: foods, up 2% to 4%, and personal care products, up 0% to 2%. The remaining six categories show moderate declines, but with slight potential for growth: beverages (-1% to -3%), pharmaceuticals (0% to -2%), personal-care products (0% to -2%), chemicals (-1% to +1%), consumer, commercial, and industrial durables/hard goods (-1% to +1%), paper products, textiles, and other nondurables (-1% to -3%).
"PMMI members' customers reported they are holding steady with their packaging machinery spending plans for 2008, despite weakening economic conditions," noted Charles D. Yuska, president & CEO of PMMI. "With 85% 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 tightening as consumer goods companies wait out the current economic quarter."
"Even with difficult economic conditions 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 solutions focus, all important buying criteria for today's consumer and industrial goods companies."
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