U.S. shipments of packaging machinery rose 3.9 percent in 2007, reaching a value of $6.2 billion, according to the recently released 2008 Shipments & Outlook Study published by the Packaging Machinery Manufacturers Institute (PMMI). Exports accounted for 18.7 percent of all shipments. The annual research report is based on data gathered from 369 U.S. and Canadian machinery manufacturers, and includes forecasts and detailed analyses for 17 machinery categories.
“PMMI believes the sales numbers, in the face of a slow economic period, illustrate the strength of PMMI member company market position,” said Charles D. Yuska, PMMI president and chief executive officer. “With overall sales up 3.9 percent, and exports jumping 17.8 percent, it’s clear that PMMI member companies were being considered, and ultimately chosen, for capital projects around the world.”
The 3.9 percent increase in 2007 extends the streak of machinery shipment gains to six consecutive years. U.S. shipments in 2006 were up by 6 percent compared to the value of equipment shipped in 2005, according to last year’s Study.
The 2008 Shipments & Outlook Study also showed the vast majority of machinery sales—more than three-fourths—go directly to end-use customers through in-house sales staff or manufacturer’s reps.
Yuska noted that market segments with the greatest demand for packaging machinery were food (37.9 percent of sales), beverage (22.3 percent) and pharmaceutical/medical device (9.9 percent).“Those three end-use markets account for 70 percent of total shipments,” Yuska said. “It’s slightly lower than in 2006, because the spending in the pharmaceutical and beverage markets slowed.”
Canadian packaging machinery shipment growth eclipsed U.S. growth for the first time in five years, increasing by 5.7 percent, PMMI reports; the study also shows that the Canadian gross domestic product was 2.7 percent vs. 2 percent in the United States. Nearly two-thirds of Canadian shipments are exported, primarily to U.S. customers. Canada’s sales to end-use markets are quite similar to that of U.S. sales, with the same top three segments (food, beverage and pharmaceutical) totaling nearly the same as in the United States.
For a copy of the 2008 PMMI Shipments & Outlook Study, contact Paula Feldman, PMMI (email@example.com or 703.243.8555). Participating PMMI member companies receive the final report free of charge. Other PMMI members can purchase the report for $1,500; non-members, for $2,500.
Packaging Machinery Manufacturers Institute