The industrial machinery market is in for five years of strong growth, according to HIS Technology. Packaging machinery makers and suppliers will be major beneficiaries of that boom.
How much growth?
The demand for machines in agriculture, packaging, materials handling and machine tools is expected to push revenues to $1.6 trillion this year, up from $1.5 trillion in 2013. This represents an annual growth of 6.3%, more than twice the 2.9% increase seen in 2013.
Revenue is predicted to rise to $2.0 trillion by 2018. During this period, the machinery market's annual growth rate will average between 5% and 6%.
"The improving economic outlook is a key factor in the strong growth of machinery in the coming years," stated Andrew Robertson, senior analyst for Industrial Automation at IHS. "The growing populations and the expanding middle classes in developing countries are generating more disposable income. This translates into increased demand across a vast number of sectors."
And in packaging machinery?
The surge in packaging market growth is expected to come from an investment in lighter packaging, that requires less material, generates less waste, is more energy efficient to produce, and offers improved aesthetic appeal.
Growth in lighter packaging will get a boost from demand in developing countries where processed products are becoming more attainable for a surging middle class.
Demand for new machines will also be driven by advances in packaging such as wrapping food in ready-to-cook enclosures, cartons that are never pierced until opened, and new aseptic packaging technology.
A welcome turnaround.
Global machinery production revenue slowed to 1.8% growth in 2012. In the decade before it had experienced a 20% growth average.
The Americas bucked this trend and prospered in 2012, boosted by a significant government investment that caused machinery production revenue to grow by 6.5%. In 2013, machinery production growth in the Americas slowed to 2% but still fared better than many other regions. In our region, Asia-Pacific, growth slowed to only 3.5 percent. A majority of this slowdown came from China, where production remained nearly flat because of overcapacity. Europe’s persistent economic problems caused machinery production revenue to declined by 5.6% in 2012. Europe increased output last year by just 1.1%.
