Buck Trends
The tag and label segment looks set to spend the most in 2000; flexo presses top printers' shopping lists.
By Susan Friedman
SUPPLIERS CAN BREATHE easier for another year. According to packagePRINTING's Annual Equipment Purchasing Survey, the majority of package printers have budgeted healthily for equipment upgrades, and don't intend to simply let this money languish in their pockets. One in four plan to increase spending on equipment by more than 25 percent than in 1999, and nearly one in five plan to spend up to 50 percent more. Twenty-two percent expect their budgets to mirror last year's totals.
Price still rules package printers' purchase decisions most often, with 58 percent of respondents putting cost among their top three considerations. When paying up, respondents prefer "cash and carry" over bank financing and leasing. Thirty-one percent will coordinate major purchases with trade shows this year.
Analysis of each packaging segment's responses revealed a mix of progressive purchasing attitudes. Tag and label converters expect to spend the most this year, and appear the most likely to invest in either a digital press or computer-to-plate equipment. Folding carton converters, by contrast, reported the highest usage of the Internet for product information.
Carton converters' top product preferencethe folder/gluerremains the same as in 1999. The tag and label and flexible packaging segments, on the other hand, were hottest on slitter/rewinders last year, and now favor flexo presses.
2000 Purchasing Profile—Tag and Label Converter
Most popular projected budget range:
$500,000 to $1,000,000 (28 percent). Five percent of tag and label converters plan to spend more than that. Details: More often than not, these converters spent exactly what they budgeted in 1999 (41 percent). The highest number of respondents plan to follow suit in 2000 (28 percent), followed closely by plans to spend up to 25 percent more (23 percent), or up to 50 percent more (20 percent).
Top purchase rationales:
Price (51 percent), followed by quality control capability (41 percent) and brand loyalty (31 percent).
Item in biggest demand:
Top on the shopping list is the flexographic press, with 33 percent setting money aside for this technology.
Cutting-edge installation plans:
Ten percent feel a digital press purchase is looming in the near future. Five percent plan to pursue computer-to-plate.
Leading motivator:
Adding capacity (54 percent).
Greatest reservation:
Return on investment (51 percent).
Primary information source:
Calling the supplier (43 percent). (Internet: 10 percent)
2000 Purchasing Profile—Flexible Packaging Converters
Most popular projected budget range:
$100,000 to $199,000 (26 percent), followed closely by $200,000 to $500,000 (22 percent). Details: The highest percentage of flexible packaging converters spent exactly what they budgeted in 1999 (57 percent), and many plan to kick spending up a notch this year, with 30 percent reporting plans to spend up to 25 percent more, and 17 percent planning to splurge up to 50 percent more. About one quarter of respondents plan to spend the same as last year.
Top purchase rationales:
Price (65 percent), followed by automation (48 percent), and quality control capability (43 percent).
Item in biggest demand:
The flexo press captured most-wanted status, with 32 percent revealing intentions to purchase one this year.
Cutting-edge installation plans:
Nine percent indicated interest in acquiring digital printing technology in 2000, while four percent convey a need for a computer-to-plate system.
Leading motivator:
Addingcapacity (52 percent).
Greatest reservation:
Return on investment (61 percent).
Primary information source:
Trade publications (74 percent). (Internet: 13 percent)
2000 Purchasing Profile—Folding Carton Converters
Most popular budget range:
$50,000 to $99,000, and $200,000 to $500,000 (both cited by 16 percent). Details: Top budget breakdowns for 1999 were split between spending exactly what was budgeted and spending up to 25 percent more (both 32 percent). Carton converters led the other segments in underspending in 1999, at an average of 31 percent, most often because of budget cuts or freezes. The most popular budget plan for 2000, gathering support from 21 percent of respondents, involves spending up to 25 percent more than last year.
Top purchase rationales:
Automation (68 percent), followed by price (63 percent) and supplier service (37 percent).
Item in biggest demand:
The folder/gluer remained in the top spot it claimed last year, with 26 percent planning to spring for one in 2000.
Cutting-edge installation plans:
Ten percent are leaning toward a digital press investment; none of the respondents reported a computer-to-plate installation was in the cards for 2000.
Leading motivator:
Replace/ upgrade old equipment (42 percent).
Greatest reservation:
Return on investment (68 percent).
Primary information source:
Trade publications (58 percent). (Internet: 16 percent).
- People:
- Susan Friedman