Most significant growth for packaging, processing equipment purchases is likely to occur in developing economies over the next five years as manufacturers build plants to serve those markets, shift off-shore production strategies, PMMI focus group finds
November 1, 2013
– PMMI Vision 2020 focus groups hone in on importance of supplier-customer communication
As with all good relationships, communication and teamwork is the answer — or at least the preemptive strike — to more productive collaborations between packaging and processing machinery end users and the equipment suppliers who provide the technology they need.
That’s according to the Vision 2020 focus groups PMMI conducted during PACK EXPO Las Vegas 2013 (Sept. 25–18. Las Vegas Convention Center), says Jorge Izquierdo, vice president, market development, PMMI.
“Vision 2020 is one of several avenues we use to keep abreast of what’s impacting packaging and processing from the end-user perspective,” Izquierdo says. “The insights they provide are invaluable.”
This year’s groups involved 89 individuals from 84 consumer packaged goods companies (CPGs). And the “future realities” they identified, Izquierdo says, are already impacting the way equipment producers and end users do business together.
“This is the 7th year we’ve held these discussions, and I can’t remember when I’ve encountered a stronger emphasis on communication and collaboration,” he says.
The talk of communication comes within the context of several long-term predictions about the strategic environment for packaging and processing:
Because available capital for purchasing packaging and processing equipment will continue to be tight, CPGs will be forced to even more rigorously consider the business case for purchases.
The most significant growth for packaging and processing equipment purchases is likely to occur in developing economies over the next five years as CPGs build plants to serve those markets and shift off-shore production strategies.
CPGs will find it harder to make a profit in coming years, with factors such as commodity pricing, and expenses for energy, labor and regulatory compliance all feeding into an increase in the cost of doing business.
Mergers and acquisitions will continue to change the CPG landscape, and the affected firms will be forced to reexamine purchasing needs and processes as companies combine their resources.
The market for green packaging and products will expand, as sustainability considerations are further established in the mainstream of consumer acceptance, positioning strategies and government regulation.
The ground-breaking technologies of the next five years will produce greater effectiveness, reliability, speed, diagnostic precision, maintenance, performance assessment and changeover speeds.
Workforce issues will drive CPG and OEM cost structure and productivity.
The need for better communication begins at the very beginning — the request for proposal (RFP) and the proposal itself, the report notes. End users must clearly express their needs and requirements in the RFP, and OEMs must clearly respond to those specifications with an end product that satisfies their customers.
Vision 2020 participants said they want to consider OEMs as long-term partners, Izquierdo notes.
“Machinery design and technologies make a difference when CPGs consider competing suppliers, but what’s adding significant new value are factors like understanding regulatory compliance issues, technical expertise to offset downsized engineering resources, and assessments of material performance. OEMs need to help their customers understand what they don’t know,” he says.
Communication and understanding are key to any good working relationship, including those in the packaging and processing industry, and PACK EXPO opens up the connections to establish those relationships. PACK EXPO International 2014 will be in Chicago, Nov. 2–5, 2014, co-located with Pharma EXPO, produced in partnership by PMMI and the International Society for Pharmaceutical Engineering (ISPE). Visit packexpo.com to receive notice when registration is open.
PMMI, The Association for Packaging and Processing Technologies, is a trade association representing over 600 packaging and processing supply chain companies that provide a full range of packaging and processing machinery, materials, components and containers. PMMI actively brings buyers and sellers together through programs and events such as The PACK EXPO family of trade shows, packexpo.com, PMT Magazine, PACK EXPO Show Daily, networking events and educational programs.
PMMI organizes the PACK EXPO trade shows: PACK EXPO International, Pharma EXPO, co-located with PACK EXPO International and presented jointly with the International Society for Pharmaceutical Engineering (ISPE); PACK EXPO Las Vegas, PACK EXPO East, EXPO PACK México and EXPO PACK Guadalajara, connecting participants in the packaging and processing supply chain with their customers around the world. Coming Up: EXPO PACK México 2014, June 17-20 (Mexico City, Mexico); PACK EXPO International 2014, Nov. 2-5 (McCormick Place, Chicago); Pharma EXPO, co-located with PACK EXPO International 2014; PACK EXPO East, debuting Feb. 2–4, 2015 (Pennsylvania Convention Center, Philadelphia); EXPO PACK Guadalajara 2015, March 18-20, 2015 (Guadalajara, Jalisco, Mexico).
Learn more about PMMI and the PACK EXPO trade shows at PMMI.org and Packexpo.com.