According to PMMI’s 2007 Shipments and Outlook Study, US packaging machinery shipments reached $6.110 billion in 2006, a 6% increase from the $5.765 billion in equipment shipped in 2005.
This marks the fifth consecutive year of industry growth since 2001.
Sixteen of the seventeen machinery categories that PMMI monitors in this annual report experienced growth in 2006 including Wrapping (18.6%) and Capping, Overcapping, Lidding and Sealing machinery (11.2%).
Exports of packaging machinery surpassed the $1 billion mark for the third consecutive year with $1.012 billion in equipment sold overseas, an increase of 0.5%.
US domestic demand, which includes domestic shipments and import figures, increased by 8.4% to $6.637 billion in sales.
Domestic shipments were up 7.2% to $5.098 billion and imports were up 12.6% with $1.539 billion in sales.
The following factors lead to industry growth in 2006:
• Increased focus by US companies on manufacturing/packaging cost reduction and productivity improvement to combat rising labour, energy and raw material costs.
• Increased need for highly flexible packaging machinery to accommodate shorter packaging runs with a widening range of packaging styles, sizes and configurations.
• Greater demand for turnkey packaging system projects (total line solutions).
• Favourable reception to new machinery introductions with advanced features and benefits including robotics, servo technology, faster speeds, greater packaging precision, easy packaging line integration, touch screen user controls and smaller footprints.
• Demand for machinery upgrades due to packaging format changes to support consumer marketing efforts.
• Attention made to product tracking and labeling, as well as continued pressures to add package security features to protect product integrity, prevent counterfeiting or product contamination
2007 forecast
US packaging machinery shipments are expected to grow at an average annual rate of 3.1% over the next three years, increasing from $6.110 billion to $6.689 billion by 2009.
Growth in 2007 is expected to be essentially flat at 0.5% growth.
Growth rates for 2007 and beyond are dependent on a number of economic factors:
• US Gross Domestic Product is forecast to grow by 2.0-2.5% in 2007, followed by stronger increases in the range of 2.8-3.2% in 2008 and 2009.
• Machinery demand from overseas markets, including China, Brazil, India, Russia and Eastern Europe will grow.
• US Corporate profits will remain relatively solid, but companies will take a careful look at economic conditions, especially the impact of the housing market.
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