Canadian Packaging Machinery Market Research Report - PMMI
Canadian Packaging Machinery Market Research Report - PMMI
Canadian Packaging Machinery Market Research Report - PMMI
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proximity to Canada combined with the facts that the two countries have similar,<br />
linked economies and similar consumer societies. Areas mentioned in these<br />
ratings included availability of repair parts, rapid response to problems and good<br />
training support. A number of respondents stated that they use North American<br />
suppliers because of shorter lead times and lower cost of repair parts.<br />
• The price of U.S. packaging machinery is viewed to be “Good” to “Average” by<br />
most respondents, although particularly after the impact of the exchange rate is<br />
taken into account, a significant number also feel that U.S. prices are somewhat<br />
expensive. The favorable movement in the exchange rate since the beginning of<br />
the year should begin to positively impact the impression of purchasers as they<br />
undertake future purchasing.<br />
• As might be expected, <strong>Canadian</strong> packaging machinery manufactures received<br />
very positive ratings both regarding the service they provide and the prices they<br />
charge. Virtually all respondents felt that <strong>Canadian</strong> prices were “Excellent” or<br />
“Good” and their service was rated the highest, significantly above European<br />
competitors.<br />
2.7 PACKAGING MACHINERY TRENDS<br />
There are a number of significant characteristics of the <strong>Canadian</strong> market that shape<br />
the demand for packaging machinery in the country that should be understood to put<br />
the report contents in context. At the same time, there are a number of trends and<br />
forces taking place that influence demand. Some of the most important are:<br />
• Canada is a much smaller market than the United States so this results in smaller<br />
production runs and a greater variety of products turned out by most production<br />
lines or facilities. As a result, goods producers place a high emphasis on<br />
packaging machinery versatility and fast changeover capability.<br />
• Many of the major <strong>Canadian</strong> goods producers are foreign owned with many<br />
having U.S. parents. As a result, many purchase decisions are directed from the<br />
U.S. and some companies purchase all their packaging machinery needs through<br />
the parent company. There appears to be an increase in such companies<br />
utilizing their U.S. resources for purchasing. For example, the packaging<br />
machinery purchases for one of the largest snack foods companies in Canada is<br />
entirely directed through the United States engineering group. Also, foreign<br />
subsidiaries frequently purchase the same type of machinery used by their parent<br />
facilities.<br />
• With the trend toward globalization, there appears to be some movement to focus<br />
specific plants on production for larger market areas. For example, the Estee<br />
Lauder plant in Toronto has a worldwide mandate for the production of mascara.<br />
• With the large proportion of <strong>Canadian</strong> firms using imported packaging machinery,<br />
exchange rates play a major role in determining whether specific brands or<br />
sources of machinery are affordable. With the recent improvement in the<br />
exchange rate between Canada and the U.S., this will likely impact the sourcing<br />
of future packaging equipment purchases.<br />
SMG/Columbia Consulting Group Page 22