Packaging machinery to grow in U.S.

U.S. packaging machinery sales are predicted to grow 3% to a value of $5.8 billion, according to the latest Purchasing Plans Study from the Packaging Machinery Manufacturers Institute (PMMI; Arlington, VA). The study is derived from a survey of 446 decision makers and PMMI members responsible for 8339 packaging lines in 1123 plants throughout eight segments in the U.S. market.

Demand has increased for five straight years going back to 2001, with expansions next year pegged to U.S. economic growth, strong cash positions by corporations, and increased rates of capacity utilization. The survey also found that a desire to add the latest, most efficient equipment is driving machinery demand.

Although five of eight markets are expected to increase machinery spending, the greatest growth is predicted to come from the personal-care products segment (10-12%), followed by beverages (6-8%). Food (2-3%) and pharmaceutical (1-3%) are predicted to have growth, if relatively reserved.

The study assumes U.S. GDP expansion of 2.9-3.4%, with capacity utilization rates for nondurable manufacturing at 81.5%, and the food industry at 84.1%. Beyond macroeconomic factors, packaging machinery growth is forecast due to a continued desire to reduce labor input, and a steady stream of new product and SKU additions.