Is the purchasing prospect of the hottest packagin

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Is the purchasing prospect of packaging machinery optimistic

the 2003 procurement plan survey of the American Packaging Machinery Manufacturing Association (PMMI) shows that the procurement volume of machinery and equipment in 2003 is expected to rise moderately: consumer and industrial product companies will increase their expenditure on packaging equipment by 1.5% - 2.5% on the basis of 2002, reaching US $5.084 billion

data and analysis

pmmi according to the in-depth interview with 417 decision-makers of packaging end-user companies, the situation is exactly the repetition of the prediction in 2002. The growth rate of five of the eight major market industries (food, medicine, beverage, personal products and household chemicals) will reach 3.2% - 4.9% this year

"according to this research report, serving food industry, pharmaceutical industry, beverage industry, personal care industry and household packaging machinery manufacturers, I am sure that their several industries will continue to have sales growth this year." Charles D. yusca, President of PMMI, said, "the growth of these specific industries, coupled with the response of more than two-thirds of enterprises, will maintain or increase their spending on packaging machinery this year, which is undoubtedly good news for packaging machinery manufacturers that have been deeply affected by the manufacturing downturn in the past two years."

the research report also provides the basic situation of the purchase plan of consumer goods and industrial products production enterprises, and puts forward the main market factors affecting the consumption level

the three most important reasons for consumer goods and industrial products manufacturing enterprises to purchase new equipment in 2003:

1. New equipment replaces old equipment to pursue higher efficiency, faster speed, higher flexibility and output. (accounting for 27%)

2. Expand the production scale of existing products. (27%)

3. Automated operation to reduce labor costs (12%)

however, the optimistic factors in the prospect prediction will be more or less affected by the current uncertain economic and geopolitical conditions. The general view of the respondents is that they are unwilling to spend more on the actual cost of buying new machines unless the current chaos improves

in the relatively stable period in the past, even if there were existing packaging equipment, they were still happy to add new equipment. But this year, 45% of the packers canceled the plan to replace existing equipment, while only 55% were ready to add new equipment

pmmi predicts that after two years of inactivity in the packaging machinery market, the upsurge of equipment replacement will affect end users. In order to remain competitive, they have to replace the old equipment with new equipment. In other words, the longer the packers stop purchasing new equipment, the more difficult it will be for them to postpone the replacement of old equipment. They hope that this fact will help promote the recovery of machinery and equipment sales in the 20th century, especially in 2003

positive factors

the scientific prediction of U.S. economic and capital expenditure and market special factors in 2003 is conducive to improving the accuracy of the prediction of machinery and equipment expenditure. For example, the gross national product of the United States in 2003 is expected to increase by 2.5%-3%, and the capital expenditure on industrial equipment remained stable at the beginning of the year, but with the passage of time, there is a gradual increase, and the overall profit should also exceed that of 2002. Due to the increase in profits, packers should be more willing to invest more in capital investment, so 1 we must carefully select more funds

the flexibility of packaging is also increasingly important for those manufacturers surveyed. According to the survey, 59.4% of the sample production plans to order packaging equipment this year to enhance the flexibility of handling a wide range of products and sizes. In addition, 61.3% of the machines ordered by respondents in 2003 were the result of their needs in order to obtain greater flexibility. As a packer said, "changes and updates are becoming increasingly frequent, and we have to buy new machines to meet this requirement"

the packers surveyed also put forward the view that the machine needs to increase the packaging capacity. Surprisingly, 23% of the respondents considered their equipment orders in 2003 in conjunction with the need to expand packaging capacity

more than 57% of the respondents said that their customers, especially food supermarkets and food chains, played an important role in their decision to buy packaging machines. Nearly 42% of people pointed out that this impact is increasing

"we are investing in a new box packer because one of our customers wants to open on the side and another wants to open on the top," said a respondent

"customers want us to subdivide the packaging products", a pharmaceutical manufacturer said, "they don't need 24 bags, they may want 12 bags or 6 bags. Our current equipment can easily carry out this kind of treatment"

the increasing trend of automation is also the main catalyst for equipment expenditure in 2003. Although 12% of people regard the expansion of automation as the main reason for the installation of new packaging equipment. A medical equipment manufacturer said, "we have found that third, it is necessary to upgrade the packaging capacity of the machine, because the enhanced degree of automation is equal to reducing labor and costs, which is also our current goal.". But on the other hand, while increasing automated machines, packers lack qualified operators

influencing factors

other important factors behind the purchase of new machines also include overall profits and cash flow, further introduction of new products, the impact of ergonomics and safety issues, and expectations for improved conditions. Factors that may hinder the growth of packaging machine procurement include: weaknesses in the utilization of production capacity; Economic weakness and geopolitical uncertainty; The merger of enterprises, the closure of factories and the reorganization of enterprises; Fierce competition between used machines and rebuilt machines; Replacement of refurbished machines

despite geographical and economic uncertainties, PMMI still believes that the demand for mechanical equipment is expected to increase in 2003

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