U.S. Packaging Machinery Shipments Eclipse $6 Billion for First Time
2007 Shipments to Moderate
U.S. packaging machinery shipments are forecast to grow at an average annual rate of 3.1 percent over the next three years, increasing from $6.110 billion to $6.689 billion by 2009. Growth in 2007 is expected to be essentially flat at 0.5 percent growth.
Market Considerations
Growth rates for 2007 and beyond are dependent on a number of economic factors, including:
• U.S. Gross Domestic Product is forecasted to grow by 2-2.5 percent in 2007, followed by stronger increases in the range of 2.8-3.2 percent in 2008 and 2009.
• Overall U.S. manufacturing capacity stands at 80 percent as of June 2007. Capacity utilization at non-durables manufacturing plants, where the majority of shipments come from, stands at 82 percent as of June 2007, the generally agreed upon trigger point for meaningful expansions.
• Machinery demand from overseas markets, including China, Brazil, India, Russia, and Eastern Europe will grow.
• U.S. corporate profits will remain relatively solid, but companies will take a careful look at economic conditions, especially the impact of the housing market.
- People:
- Charles D. Yuska