Canadian Packaging Machinery Market Research Report - PMMI

• There has been a trend to consolidation and rationalization of manufacturing
facilities. This has probably dampened demand for packaging machinery
somewhat, although sell-offs of facilities many also create additional demand.
(For example, one of Canada’s largest dairy products producers recently
announced that it was closing two plants and selling another yet it also
announced it would be adding $10 million in new fixed assets associated with this
rationalization).
• With the continuing soft and uncertain economy, there has been significant
emphasis on reducing labor and gaining efficiencies. Associated with this has
been a trend to machines with faster throughput and faster changeover times.
These influences taken together have created demand for more technologically
advanced equipment to deliver these benefits.
• The improvement in processing speed is, in turn, driving the need for faster
components to keep up with the faster throughput of the packaging line. This
covers such elements as inspection equipment, printing equipment, cartoning
equipment and palletizers
• A few producers report that the uncertain economy has caused them to be more
willing to consider used machinery. This has even impacted some that have
never considered anything but new equipment in the past. (For example, one of
the largest food producers reported that in certain circumstances it would now
consider purchasing used machinery.)
• Companies in very competitive, consumer-sensitive industry segments or very
marketing-driven companies report that the resultant frequent and rapid changes
in package sizes, package type and features and design are important drivers of
demand for new packaging machinery that can accommodate this. These
companies report that packaging machinery manufacturers must be able to
deliver quickly and on time in order to comply with marketing program needs.
• With the increasing complexity of packaging machinery and the need for better
control and co-ordination of the elements in packaging lines, there has been
increased demand for turnkey solutions or system integrators.
• The changes in food products labeling that will be driven by the mandatory
nutrition labeling regulations to be implemented during the next three years will
have a major impact on packaging machinery purchases.
This has led to the following trends in types and specifications of packaging
machinery demanded by the marketplace:
• Packaging machinery that is more versatile/flexible, and able to accommodate
rapidly changing packaging requirements, a wider range of package sizes and an
increased number of SKUs.
• Closely tied to the first point is packaging machinery that can accommodate faster
changeover times with lower labor input.
• Packaging machinery that will reduce labor input, improve productivity and
efficiency and reduce costs.
• A direct outcome of the search for labor saving opportunities is demand for
increased automation and robotics, particularly at the end of the production line.
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