U.S. to remain world packaging machinery market leader

The Packaging Machinery Manufacturers Institute (PMMI) announced February 8 that the United States will maintain its position as the global leader in packaging machinery turnover. Sales of North American-based packaging machinery supplier solutions reached $6.11 billion in 2006 and are forecast to grow at an average annual rate of 3.1 percent through 2009, to reach $6.689 billion.

Globally, total packaging machinery sales reached $31 billion in 2006. North American manufacturers provided 20 percent of the packaging solutions sold worldwide. In parallel, U.S. demand for packaging machinery solutions reached $6.6 billion in 2006, with North American-based manufacturers providing 77 percent of the packaging solutions sold. 

Recent PMMI studies indicate that the competitive advantages of North American packaging machinery manufacturers and the benefits of the weaker US dollar abroad is expected to further boost U.S. exports. Exports reached $707 million from October 2006 through October 2007, and are expected to eclipse $1 billion for 2007.

PMMI will release the 2008 Packaging Trends Report, which further substantiates North America’s leadership position in the market, during Interpack, April 22-26, 2008, located in Dusseldorf, Germany. 

The report will provide a comprehensive analysis of North American packaging industry trends and market outlook for 2008. The Packaging Trends Report will be available at the PMMI booth, Hall 12, F01 during Interpack.

“North American packaging machinery manufacturers have a history of providing the marketplace with cutting-edge packaging solutions that increase operational efficiency and productivity and help brand owners get products to market faster,” said Charles D. Yuska, president and CEO, PMMI. “This value coupled with the cost advantages resulting from the currency exchange, make a compelling case for purchasing North American machinery.”

Each year, PMMI conducts industry research and releases several studies that cover a range of industry trends and statistics. The studies provide accurate information for the industry and media to determine their point-of-view on industry leadership and trends based on facts. The trends in this release are based on data and facts from the following reports: The 2007 Purchasing Process Survey, Industry Segment Market Research Study for Pharmaceutical/Nutraceutical Packaging Machinery, U.S. Census Bureau data for Packaging Machinery and Parts, Top Ten Markets 2006 Report, U.S. Purchasing Plans Packaging Machinery Study, Robotics Study for the Packaging Industry, and the 13th Annual Packaging Machinery Shipments & Outlook Study.  PMMI research and studies can be accessed on www.pmmi.org.

N.A. Packaging Machinery Manufacturers Offer Quality, Innovation and Value
According to PMMI’s 2007 Purchasing Process Survey, North American manufacturers were found to offer significant advantages over their foreign counterparts in the areas of machine reliability, delivery from purchase date, safety, machine changeover time, machine ergonomics, total cost of operation and purchase price. Of these categories, high machine reliability and safety features were found to be the most important factors in respondents’ machinery purchasing decisions.

Data for the PMMI 2007 Purchasing Process Survey was collected from a national sample of 164 packaging machinery purchasers from September to December 2007. This survey was designed and implemented by Westat, one of the U.S.’s largest research companies.

Pharma/Medical Device Companies Turn to U.S. for Safe Manufacturing
Demand for North American equipment will continue to rise as concerns for product safety and tighter manufacturing regulations increase. For example, the rising tide of counterfeit drugs emanating from Asia and elsewhere in the world has reinforced the need for safer manufacturing practices associated with production in the U.S. This is especially important as demand for pharmaceutical drugs and medical devices continue to increase worldwide.

PMMI’s Industry Segment Market Research Study for Pharmaceutical/Nutraceutical Packaging Machinery, released in December 2007, found that increased concern for product safety and the need for full FDA compliance will keep a good portion of pharmaceutical production in the U.S.  Product security and tracking will also continue to escalate the importance of packaging and safety in the manufacturing process.

According to this report, 44 percent of participants said that they purchase most of their equipment from U.S. manufacturers, while 28 percent purchase the majority of their equipment offshore. This highlights the greater buying power CPGs in the pharmaceutical/nutraceutical industry enjoy when purchasing U.S. machinery. Findings were based on direct phone conversations with 71 decision-makers in the pharmaceutical/nutraceutical industry.

Increased Flexibility, Efficiency, Productivity and Automation Drive Market
According to PMMI’s U.S. Purchasing Plans Packaging Machinery Study, there are a number of trends driving packaging machinery demand in the United States. For example, 45 percent of respondents planning to purchase in 2007 said that the most important reason for investing in machinery was to improve efficiency and productivity of their existing packaging operations.

In addition to a strong need for additional flexibility to meet a widening range of packaging requirements, the increasing use of packaging as a competitive differentiator is also fueling demand for new packaging equipment.

This report is based on interviews with 468 decision-makers responsible for the selection and/or ordering of packaging machinery at manufacturing companies throughout the United States.

According to PMMI’s Robotics Study for the Packaging Industry released in November 2007, 77 percent of packagers said they are expecting to use more robotics in the next five years. Packagers will look to robotics to help reduce costs, increase flexibility and to realize greater efficiency. Currently, robotics are more commonly used in the food and beverage sectors. However, 100 percent of pharmaceutical/medical device, chemical, and durable goods industry respondents expect to see an increased use in robotics. 

Research for the Robotics Study included online interviews with 110 PMMI members and phone interviews with 200 packagers.

Data Highlights Recent Growth of U.S. Market
Reinforcing the strength of the U.S. market, U.S. Census Bureau data for Packaging Machinery and Parts (HS 8422 to 8422.90) shows that U.S. packaging machinery imports totaled $1.774 billion as of October 2007, an 11 percent increase over 2006, while exports rose from $702 million to $707 million between October 2006 and October 2007. U.S. Census Bureau data was provided to PMMI by the Department of Commerce.

In addition, PMMI’s Top Ten Markets 2006 Report illustrates that the U.S. exceeded other top markets, including Germany, China and France, in packaging machinery imports for the third year in a row. This report is based on reliable statistics from Global Trade Information Services, Inc., a leading supplier of international merchandise trade data.

Shipments & Outlook Report Reinforces Positive Future
Released August 2007, PMMI’s 13th Annual Packaging Machinery Shipments & Outlook Study cites that U.S. packaging machinery shipments are projected to increase from an estimated $6.110 billion in 2006 to $6.689 billion by 2009, following a 6 percent increase in shipments between 2005 and 2006. This growth is reflected in 17 out of 18 machinery categories, demonstrating the all-around quality, performance and reliability of North American packaging machinery. 

The Shipments & Outlook Report is based on a combination of research methodologies, including questionnaires and telephone interviews with PMMI members and non-members. Forecasts were based on the projection of trends and growth prospects by individual machinery category together with analyses of economic data and related developments. Shipments are defined to include calendar-year billings of new machinery only. Foreign-based companies were instructed to only provide figures for machines manufactured, or at least assembled, in the United States and to exclude pure imports.  

About PMMI
The Packaging Machinery Manufacturers Institute (PMMI) is a trade association representing more than 500 general members who manufacture packaging and packaging-related converting machinery in the United States and Canada. PMMI’s thirty-two supplier members manufacture commercially available packaging machinery components. PMMI's vision is to be the leading global resource for packaging. Its mission is to improve and promote members' abilities to meet the needs of their customers.