U.S. shipments of packaging machinery climb for 6th-consecutive year

U.S. shipments of packaging machinery climbed for the sixth-consecutive year, up 3.9% to an estimated $6.02 billion, according to PMMI’s 2008 Shipments & Outlook study.

Exports increased 17.8% to $1.16 billion, with the declining value of the U.S. dollar offering an advantage for selling domestic products abroad.
Domestic shipments, at $5.05 billion, grew only 1.2%, as many U.S. customers were wary of committing to large purchases.

Packaging machinery manufacturers’ order backlog at the end of 2007 was down 9.1% to $1.63 billion, again largely due to wariness about the state of the economy.

This most recent report, while still positive, is a far cry from the 9.3%, 8.1% and 6% recorded in 2004, 2005 and 2006, respectively. Demand from U.S. customers climbed sharply in those years, but was up just modestly in 2007.

Capping (15.4%) and cartoning (14.7%) machinery posted the strongest gains, pushed by strong exports. Shipments for all but two machinery categories (form/fill/seal machinery and skin and blister sealing machinery) posted positive results.

Other findings included:

Manufacturers continued to introduce new equipment models with value-added benefits.

Sustainability issues influenced packagers, creating demand for machinery able to handle lighter gauge materials, reduce waste and energy coasts.

Packagers remained committed to increasing security by improving tracking, contaminant detection, integrity and counterfeit prevention.

U.S. customers began to delay and cancel projects, particularly during the second half of the year as the economy began to wane.

Foreign competitors continued to increase their presence in the market.

Competition among U.S. packaging machinery manufacturers became more aggressive, leading to reduced unit prices.