Equipment Suppliers Can't Keep Up with Demand: PMMI

Sept. 28, 2021
Senior Editor Pan Demetrakakes reports from the floor of Pack Expo 2021

Demand for food and other consumer packaged goods is so strong that machinery suppliers can barely keep up, a PMMI official said at the Pack Expo show.

Speaking to a press gathering at Pack Expo, Jorge Izquierdo, PMMI's vice president for market development, said the market for packaging and process equipment went up 14.4% last year, to $12.3 billion. Izquierdo said that growth was a record; usually 5% to 6% is considered good growth.

"Last year was a crazy year for CPG," Izquierdo said.

Packaging machinery manufacturers are telling PMMI that it takes nearly double the normal time to deliver equipment now. PMMI estimates that there is a $3.14 billion backlog of equipment that has been ordered but not yet delivered.

Izquierdo said that workforce issues are the No. 1 priority of CPG companies, with some reporting that their crews are down to 60% of what they once had. This is also a big driver for automation, to allow processors to do more with less personnel.

Izquierdo said that high attendance at this year's Pack Expo was a sign of the CPG industry's strength.

"The reason we have a busy floor this year is, the industry is growing," he said.

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