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PMMI Purchasing Plans

This article submitted by PMMI on 09/23.

1998 PMMI CUSTOMER PURCHASE PLANS STUDY RELEASED More Than 70% Plan to Increase or Sustain Expenditure Level The Packaging Machinery Manufacturers Institute (PMMI) today released the 1998 PMMI Customer Purchasing Plans Study to the industry. The findings of the survey, recently completed, indicate that seven out of ten manufacturers plan to spend as much or more this year on packaging machinery as they did last year. Of the 364 respondents, 33.7% say they plan to increase packaging machinery expenditures this year, 37.4% plan to spend about the same amount for equipment as they did last year and 28.9% indicate their planned expenditures for packaging equipment will be lower this year than last. Machinery demand will benefit from relatively strong spending growth by the personal care products segment (+%); the household and industrial chemicals segment (+%); and the hardware, industrial and automotive components and parts segment (+5%). On the other hand, the beverage segment, responsible for about 14 percent of annual shipments, will spend an estimated 9 percent less in 1998 and the paper/textiles and other non-durables segment will lower expenditures by about 5 percent. Pharmaceuticals spent heavily for machinery in 1997 in anticipation of higher production requirements this year, consequently, expenditures in 1998 will level off, but with an upward bias. "This is the first year we have done this in-depth purchasing research," commented Charles D. Yuska, president of PMMI. "Our research indicates continued growth and investment in packaging machinery as companies look for ways to increase productivity while controlling costs." The survey details the reasons given for ordering packaging machinery in 1998. The top three reasons, with the percentage of the sample noted, include: · Expanding Production/Packaging Capacity (31.4%) · Replacing Older Machinery to Increase Efficiency (16.7%) · Life Cycle of Existing Machinery Necessitates Replacement Now (9.1%) "Over and above all other reasons, manufacturers are responding to their customers' requests to bring more to the table by expanding production," commented Yuska. "Increased production means more profits and manufacturers' customers, always bottom-line oriented, are putting even more pressure on suppliers to meet their needs." The findings are based on 364 in-depth telephone interviews conducted with decision makers from essentially all sectors of the market. The research was conducted by Industrial Research Associates (IRA), Madison, CT. IRA also administers PMMI's annual Shipment's & Outlooks Study. The survey is free to PMMI members. There is a $495.00 (US) charge to non-members for the survey. For more information, or to order your copy of the survey, contact the PMMI Statistics and Survey Department at or E-mail at . The Packaging Machinery Manufacturers Institute (PMMI) is a trade association whose more than 400 members manufacture packaging and packaging-related converting machinery in the United States and Canada. PMMI sponsors and produces PACK EXPO - the trade shows of the packaging industry. PACK EXPO 98 is November , 1998, in Chicago, IL, and PACK EXPO WEST 99 is October 0, 1999, in Las Vegas, NV. PMMI member companies engage in joint activities designed to improve the packaging industry as a whole. PMMI provides information, education and services to its members, users of packaging or converting machinery, the government and the general public. # # #

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