What is the Packaging Industry’s Economic Outlook?

The following information comes from the PMMI.org website: “According to PMMI’s Quarterly Economic Outlook, the U.S. is in the early stages of a mild recovery. The Industrial Production Index reached a low point in October, ending its worst economic downturn since 1946. Most industries are showing increasing activity and the rate of decline is slowing in others. The same holds true for the markets that impact the packaging and processing industries.” Other highlights of the site include:
• While 2009 was a year of recession, 2010 is bringing signs of recovery. Markets with positive outlooks include: Pharmaceutical & Medical Devices Production; Personal Care Products Production; Beverages, Coffee & Tea Production; Chemical and Cleaning & Finishing Products, Household and Industrial; Consumer/Commercial Industrial Durables, Hardgoods, Components and Parts; Food and Foods Preparation Production.

• The US Leading Indicator Index has posted its 10th straight month of rise, taking it to a record high. The year-over-year reading is above 0 and the rise in the index supports the outlook for increasing activity in the US economy in 2010.

• The ISM Purchasing Managers Index reached a five-year peak of 58.4 in January and has grown to 59.6 in March (Wall Street Journal), a positive signal for the overall economy in 2010. January was the indicator’s sixth consecutive month above 50, indicating six months of manufacturing sector expansion.

• Retail Sales (not including automobiles) are showing signs of stabilizing. Although sales dropped 3.0 percent overall in 2009, holiday spending saw its first year-over-year increase (0.4 percent) since 2006. A mild November to December rise shows that the retail sector is still weak, but that the worst of the decline is probably over.

So, PMMI’s research seems to indicate that our industry is now headed in a more positive direction. Let’s hope this is true, so we can all concentrate on doing what we do best – making great packaging machinery!

The author, Marge Bonura, is the Director of Sales & Marketing for New England Machinery, Inc. (NEM). NEM is a leading manufacturer of bottle unscramblers, cappers, orienters, retorquers, lidders, pluggers, pump sorter/placers, scoop feeders, hopper elevators and much more. The company has been in business since 1974 selling to the food, beverage, pharmaceutical, personal care, chemical, household products, automotive and other industries. For more information on NEM, visit their website at http://www.neminc.com/.