Packaging machinery plans remain steady for ’08

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July 23, 2008 - Update of 2008 packaging machinery Purchasing Plans Study predicts increase of 0.4% over 2007 in packaging machinery spending, slightly lower than 0.6% prediction in initial survey. Growth of 0.4% translates into expenditure of $6.292 billion instead of $6.304 billion anticipated in original report published early in 2008 by Packaging Machinery Manufacturers Institute (PMMI), Arlington, VA. Approximately 21.9% of respondents in update survey conducted in April, May 2008 account for slower growth rate, plan to scale back 2008 budget. Of remaining respondents, 55.6% plan to maintain 2008 budget, 22.5% intend to spend more than originally anticipated. Mid-size companies (six to 25 packaging lines) register highest rate of budget increases (25%). Larger firms (more than 25 lines) record highest rate of budget cuts (29%). Top reasons for mid-year budget increases include need to accommodate new product, increase capacity. Budget cuts typically stem from weaker-than-expected demand, economic uncertainty, increasing costs for raw materials/energy. As in initial study, only food, personal-care products companies anticipate growth in 2008 versus 2007. Report marks first time PMMI has issued update to its annual Purchasing Plans Study.
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