SPI Q2 machinery statistics report shows drop in shipments and expected growth in equipment investments

However, the injection molding machinery units and auxiliary equipment bookings had far less of a decline than the statistics for blowmolding and extrusion sales. Injection molding machines took a 7% decrease from Q2 2007, but shipped 4% more machines than in Q1 2008. Auxiliary equipment totaled $78.9 million this past quarter, which is 5% less than last quarter and a 3% decrease from Q2 2007.

Economist Bill Wood, who provided the analysis for SPI’s report, forecasts that “the growth rate in the equipment spending data will stay moderately negative for the remainder of this year, but then investment is expected to rebound in 2009. For 2008, the forecast calls for a 2% decline in real total investment for new industrial equipment when compared with 2007. In 2009, the growth will be a positive 4%.”

Wood’s forecast is based on expectations of a continuation in the longer-term fundamentals that affect capital spending growth, including the long-term commitment by manufacturers to reduce the costs of labor, energy, and materials; a return to the gradual uptrend in manufacturers’ capacity utilization rates; and rising export demand due to the low value of the dollar.

The report, compiled by Veris Consulting, can be found online at SPI’s Plastics Industry store at www.plasticsindustry.org. The cost is free for members, and nonmembers can purchase an individual quarterly report for $250 and $580 for the annual report.—[email protected]