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Canadian Packaging Machinery Market Research Report - PMMI

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• Beverage World<br />

• Powder and Bulk<br />

• Food in Canada<br />

• Food Engineering<br />

• Food and Drug <strong>Packaging</strong><br />

• Meat packaging an Technology<br />

• Process Controls and Instrumentation<br />

• Journal of Automation<br />

2.9 EQUIPMENT FINANCING<br />

Since a significant majority of organizations surveyed for this study purchase<br />

packaging machinery using internal funds or self-arranged financing, they generally<br />

do not seek vendor financing.<br />

2.10 SWOT ANALYSIS OF U.S. PACKAGING MACHINERY MANUFACTURES<br />

The strengths and weaknesses that U.S. packaging machinery manufacturers bring<br />

to the <strong>Canadian</strong> marketplace along with the opportunities and threats facing them are<br />

as follows:<br />

Strengths of U.S. Manufactures and Their Products<br />

• The prices charged for U.S. packaging machinery are perceived to be somewhat<br />

lower than those of the key European competitors.<br />

• U.S. manufacturers have a very high share of the <strong>Canadian</strong> packaging machinery<br />

market with the result that they are well known to the <strong>Canadian</strong> purchasers.<br />

• The service provided by U.S. packaging machinery manufacturers is also<br />

perceived to be better than that of the Europeans. U.S. companies have<br />

established very reliable distribution and servicing networks in Canada that serve<br />

to maintain and support their dominant position in the market.<br />

• Proximity to the market allows for low cost and relatively easy market access and<br />

allows provision of superior technical support, training and customized service.<br />

• <strong>Canadian</strong> purchasers are very familiar with U.S. suppliers and accustomed to<br />

cross-border dealings. Similarities in packaging requirements, manufacturing<br />

codes and standards between the United States and Canada provide U.S.<br />

manufacturers with competitive advantage over off-shore exporters supplying the<br />

<strong>Canadian</strong> market.<br />

• The U.S. – Canada Free Trade Agreement allows U.S. machinery into Canada<br />

with duty and tariff free market accessibility. There are no significant trade<br />

barriers impeding the sale of packaging machinery into Canada and non-tariff<br />

barriers are not a significant factor.<br />

• U.S. packaging machinery manufacturers have established relationships with<br />

many U.S. parent companies.<br />

SMG/Columbia Consulting Group Page 25

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