Canadian Packaging Machinery Market Research Report - PMMI

• U.S. packaging machinery manufacturers are viewed to provide shorter lead
times.
Weaknesses of U.S. Manufactures and Their Products
• U.S. packaging machinery is perceived to be less technologically advanced and
less innovative than the products of its European competitors.
• The quality of U.S. packaging machinery is perceived to be somewhat lower than
that of European imports.
• U.S. packaging machinery is considered to be less adaptable/flexible than
European machinery and more difficult to changeover.
• The high market share enjoyed by United States based packaging machinery
manufacturers means that they are the targets of all other competitors who are
continually trying to chip away at that leadership position.
Some of the Main Opportunities/Best Prospects Available to U.S. Manufactures
• Being able to utilize the lower cost of the U.S. dollar to lever business away from
offshore competitors.
• Emphasizing products that take advantage of the market’s desire to automate
processes and elements in the packaging line. This opens an opportunity for
such products as palletizers and automatic case packers.
• Emphasizing products that take advantage of the market’s desire for increased
speed and flexibility.
• Ensuring that packaging machinery models are available that are suitable for
smaller production runs and that allow for speedy changeover.
• Developing systems integration capability. As machinery becomes
technologically more sophisticated, firms are moving towards purchasing turnkey
systems, a development which means that they need help with systems
installation and integration, as these capabilities are generally beyond the core
competency of the buying organization.
Some of the Main Threats Faced by U.S. Manufactures
• The European competition may find ways to lever its perceived superiority in
quality and technology to take business away from U.S. packaging machinery
manufacturers. This exposure is particularly acute in regard to the market’s
desire for increased speed, improved flexibility and increased automation.
• As noted, the high market share of U.S. packaging machinery manufacturers
makes them a target for all other producers.
• The future of the Canadian economy is somewhat uncertain so an economic
downturn could dampen demand. (However, most analysts are predicting growth,
albeit modest, in the near term.)
SMG/Columbia Consulting Group Page 26