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.
