2001 U.S. Packaging Machinery Purchasing Plans Study Released

U.S. Demand for Packaging Machinery Expected to Level



Apr 27, 2001, 01:00 ET from Packaging Machinery Manufacturers Institute

    ARLINGTON, Va., April 27 /PRNewswire/ -- The Packaging Machinery
 Manufacturers Institute recently released the findings of its fourth annual
 U.S. Packaging Machinery Purchasing Plans Study.  Spending for packaging
 machinery by U.S. domestic companies is expected to level during calendar year
 2001 to approximately US$4.9 billion in sales (excluding parts, which
 generally represent 20% of packaging machinery sales.)
     "Year after year, consumer and industrial packaging companies continue to
 seek efficient, productive packaging machinery from machinery manufacturers
 and 2001 is no exception.  The packaging machinery industry has experienced
 growth in the area of 3% each year for the past few years," commented Charles
 D. Yuska, president of PMMI.  "This year, three of the nine categories we
 researched -- foods, pharmaceuticals and paper/non-durables -- which typically
 account for nearly 60% of annual packaging machinery sales, will increase
 their rates of spending."
     Packaging machinery expenditures by the foods segment are predicted to
 rise by +1-3%; while the pharmaceutical industry segment will increase by +5-
 7% and the paper/non-durable products industry by +4-6%.  Of the remaining
 segments, five segments, including beverages (-1-4%), chemical products (-1-
 12%), consumer durables (-1-13%), personal care products (-1-2%) and
 printing/converting (-1-13%), are predicted to reduce spending.  The
 hardware/industrial/automotive segment has budgeted about the same as last
 year.
     Respondents indicated that the primary factors driving demand this year
 include "the need to replace existing machinery with current models in order
 to gain efficiency, productivity" (32%).  Also mentioned was "the need to
 expand production capacity" (30%).
     For the 2001 study, cyclical economic factors are exerting considerable
 more negative weight on the outlook for packaging machinery purchasing than in
 year's past.  The most compelling reasons to expect a leveling off in sales
 for 2001 include:
     Solid evidence of much slower economic growth is affecting capital
 expenditure budget decisions throughout most sectors of the packaging
 machinery market.
     The most recent cycle of capital spending is now in its later phase.  As a
 result of heavy spending for machinery over the past few years, the market's
 level of packaging capacity has nearly reached a point of saturation in
 relation to current production requirements.
     The primary reasons survey respondents provided as to why they were
 expecting to reduce packaging machinery spending for 2001 include "existing
 machinery adequate" (43%), "spent heavily for machinery in 2000" (30%) and
 "lower corporate sales, profits and budget cuts" (23%).
     "Many industries, especially beverage, spent heavily on new packaging
 machinery the past few years with 10-12% growth in 1999 and 9-11% growth in
 2000," added Yuska.  "Even with the expected leveling of purchasing, it is
 important to emphasize that the fundamentals of demand for packaging machinery
 remain solidly in place.  Companies will continue to need innovative,
 productive packaging machinery to handle the thousands of new products that
 are introduced in any given year."
     A copy of the complete Executive Summary is available by contacting PMMI
 at pmmi@pmmi.org.  A copy can also be found on PMMI's web site at
 http://www.pmmi.org .  The study's findings are based on more than 400 in-
 depth telephone interviews conducted with decision-makers from essentially all
 sectors of the market.  This represents 1,895 plants, up from 1,844 plants
 last year.  Industrial Research Associates (IRA), Uwchland, PA, conducted the
 research.  The firm also administers PMMI's annual Shipments & Outlook Study.
     The survey is free to PMMI members.  There is a US$495.00 charge to non-
 members for the complete survey.  For more information, contact Paula Feldman,
 manager of statistics at 703-243-8555 or E-mail at paula@pmmi.org.
 
     The Packaging Machinery Manufacturers Institute (PMMI) is a trade
 association whose 501 members manufacture packaging and packaging-related
 converting machinery in the United States and Canada.  PMMI is committed to
 improving, leading and unifying all segments of the packaging industry
 worldwide.  PMMI provides information, education and services to its members,
 users of packaging or converting machinery, the government and the general
 public.
     PMMI is the sponsor and producer of the PACK EXPO shows, the world's
 leading packaging shows.  PACK EXPO International is held every two years and
 features more than 1,500 exhibitors and covers more than 1.2 million net
 square feet.  PACK EXPO International 2002 will be held Nov. 3-7, 2002 at
 McCormick Place, Chicago, Il, USA.  PACK EXPO Las Vegas 2001 takes place
 September 10-12, 2001 in Las Vegas, NV, USA.  PMMI also co-produces EXPO PACK
 Mexico, the largest packaging show in Mexico.  This show will next be held
 June 26-29, 2001 at the Sports Palace, Mexico City, Mexico.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X06681841
 
 

SOURCE Packaging Machinery Manufacturers Institute
    ARLINGTON, Va., April 27 /PRNewswire/ -- The Packaging Machinery
 Manufacturers Institute recently released the findings of its fourth annual
 U.S. Packaging Machinery Purchasing Plans Study.  Spending for packaging
 machinery by U.S. domestic companies is expected to level during calendar year
 2001 to approximately US$4.9 billion in sales (excluding parts, which
 generally represent 20% of packaging machinery sales.)
     "Year after year, consumer and industrial packaging companies continue to
 seek efficient, productive packaging machinery from machinery manufacturers
 and 2001 is no exception.  The packaging machinery industry has experienced
 growth in the area of 3% each year for the past few years," commented Charles
 D. Yuska, president of PMMI.  "This year, three of the nine categories we
 researched -- foods, pharmaceuticals and paper/non-durables -- which typically
 account for nearly 60% of annual packaging machinery sales, will increase
 their rates of spending."
     Packaging machinery expenditures by the foods segment are predicted to
 rise by +1-3%; while the pharmaceutical industry segment will increase by +5-
 7% and the paper/non-durable products industry by +4-6%.  Of the remaining
 segments, five segments, including beverages (-1-4%), chemical products (-1-
 12%), consumer durables (-1-13%), personal care products (-1-2%) and
 printing/converting (-1-13%), are predicted to reduce spending.  The
 hardware/industrial/automotive segment has budgeted about the same as last
 year.
     Respondents indicated that the primary factors driving demand this year
 include "the need to replace existing machinery with current models in order
 to gain efficiency, productivity" (32%).  Also mentioned was "the need to
 expand production capacity" (30%).
     For the 2001 study, cyclical economic factors are exerting considerable
 more negative weight on the outlook for packaging machinery purchasing than in
 year's past.  The most compelling reasons to expect a leveling off in sales
 for 2001 include:
     Solid evidence of much slower economic growth is affecting capital
 expenditure budget decisions throughout most sectors of the packaging
 machinery market.
     The most recent cycle of capital spending is now in its later phase.  As a
 result of heavy spending for machinery over the past few years, the market's
 level of packaging capacity has nearly reached a point of saturation in
 relation to current production requirements.
     The primary reasons survey respondents provided as to why they were
 expecting to reduce packaging machinery spending for 2001 include "existing
 machinery adequate" (43%), "spent heavily for machinery in 2000" (30%) and
 "lower corporate sales, profits and budget cuts" (23%).
     "Many industries, especially beverage, spent heavily on new packaging
 machinery the past few years with 10-12% growth in 1999 and 9-11% growth in
 2000," added Yuska.  "Even with the expected leveling of purchasing, it is
 important to emphasize that the fundamentals of demand for packaging machinery
 remain solidly in place.  Companies will continue to need innovative,
 productive packaging machinery to handle the thousands of new products that
 are introduced in any given year."
     A copy of the complete Executive Summary is available by contacting PMMI
 at pmmi@pmmi.org.  A copy can also be found on PMMI's web site at
 http://www.pmmi.org .  The study's findings are based on more than 400 in-
 depth telephone interviews conducted with decision-makers from essentially all
 sectors of the market.  This represents 1,895 plants, up from 1,844 plants
 last year.  Industrial Research Associates (IRA), Uwchland, PA, conducted the
 research.  The firm also administers PMMI's annual Shipments & Outlook Study.
     The survey is free to PMMI members.  There is a US$495.00 charge to non-
 members for the complete survey.  For more information, contact Paula Feldman,
 manager of statistics at 703-243-8555 or E-mail at paula@pmmi.org.
 
     The Packaging Machinery Manufacturers Institute (PMMI) is a trade
 association whose 501 members manufacture packaging and packaging-related
 converting machinery in the United States and Canada.  PMMI is committed to
 improving, leading and unifying all segments of the packaging industry
 worldwide.  PMMI provides information, education and services to its members,
 users of packaging or converting machinery, the government and the general
 public.
     PMMI is the sponsor and producer of the PACK EXPO shows, the world's
 leading packaging shows.  PACK EXPO International is held every two years and
 features more than 1,500 exhibitors and covers more than 1.2 million net
 square feet.  PACK EXPO International 2002 will be held Nov. 3-7, 2002 at
 McCormick Place, Chicago, Il, USA.  PACK EXPO Las Vegas 2001 takes place
 September 10-12, 2001 in Las Vegas, NV, USA.  PMMI also co-produces EXPO PACK
 Mexico, the largest packaging show in Mexico.  This show will next be held
 June 26-29, 2001 at the Sports Palace, Mexico City, Mexico.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X06681841
 
 SOURCE  Packaging Machinery Manufacturers Institute