SECTION II
INTRODUCTION
Scope and Objectives
This report contains the findings of the 2007 PMMI Purchasing Plans Study, the tenth in an
annual series conducted exclusively for PMMI by Industrial Research Associates, LLC. The
principal objectives of the study are to: (1) assess the outlook for packaging machinery
spending in 2007 by end-users in the U.S. domestic market, (2) to examine the factors that
will influence the expected level of demand, (3) to evaluate trends affecting the market, and
(4) to maintain a permanent sample base, the continuity of which will serve as a reliable
indicator of year-to-year market changes.
Methodology
In fulfilling the study’s primary research objective, interviews were conducted with 468
decision-makers responsible for the selection and/or ordering of packaging machinery at
manufacturing companies throughout the United States. It is worth noting that of those, 316
were also part of the 2006 sample; which means that roughly 68 percent of last year’s sample
participated again this year. Respondents included managers at single plant locations,
division managers representing several facility locations, and executives at headquarters
offices covering total corporate packaging operations. Their answers provided information,
comments, and data relative to 1,073 plants. The sample was selected to represent — in near
proportion — all of the principal market segments to which packaging machinery is sold.
The interviews, which followed a structured format — but were designed to facilitate openended questioning and probing — often lasted as long as 30 minutes. The interviews were
conducted from January 2007 through February 2007.
Forecasts for each of the individual end-use market segments were calculated through a
weighted analysis of variables derived from a combination of quantitative and qualitative
information, including:
•Net change in planned expenditures for packaging machinery – 2007 vs. 2006
•Number of companies planning to increase or decrease expenditures for the
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purchase or lease of packaging machinery in 2007
•Number of companies planning to increase or decrease expenditures for the
purchase or lease of packaging machinery in 2007 by size of company/plant
(number of employees) and by expenditure range
•Trends in packaging machinery, materials, products, etc.
•Companies’ annual and quarterly financial reports
•Micro- and macroeconomic factors affecting the industry
•Sample’s conditional responses regarding spending plans based on the
future direction of the economy
The primary research was augmented by secondary research of government reports and
databases, as well as news publications, and industry trade journals. The various sources
included:
Trade Journals and Publications
Beverage Industry, Beverage World, Business Economics, Business Week, Chemical
Processing, Candy Industry, Chemical & Engineering News, Chemical Week, Converting,
Cosmetics Design, Cosmetic/Personal Care Packaging, Dairy Field, Drug Topics, Food &
Drug Packaging, Flexible Packaging, Food Processing, Global Cosmetics Industry,
Happi.com, ICIS Chemical Business Americas, Industry Week.Com, Managing
Automation, National Provisioner, New Products Magazine, Nonwovens Industry,
Packaging Digest, Packaging World, Pharmaceutical & Medical Packaging News,
Pharmaceutical Business Review, Pharmaceutical Processing, Pharmaceutical
Technology, Plastics Technology, Powder and Bulk Engineering, Prepared Foods,
Refrigerated & Frozen Foods, Snack Food & Wholesale Bakery, Survey of Current
Business, Barron’s, The New York Times, and The Wall Street Journal.
Private Data Organizations
Economy.Com, Information Resources, Inc., and Marketing Intelligence Service, Ltd.,
PricewaterhouseCoopers, Reuters.com
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Government Agencies
Bureau of the Census, Bureau of Economic Analysis, Center for Medicare and Medicaid
Services, Department of Commerce, Economics and Statistics Administration, Industry
and Trade Administration, and The Federal Reserve Board.
Tables I-1 through I-4 present breakdowns of the sample by four criteria: (1) by market
segment, (2) by number of plant employees, (3) by range of 2006 expenditures for packaging
machinery, and (4) by respondent job title. Following the tables is a complete listing of the
actual companies included in the sample. In keeping with the promise of anonymity given to
each of the respondents, names, titles, and facility locations are omitted.
TABLE I-1
THE SAMPLE BY MARKET SEGMENT
(Percent of Total Respondents)
Market Segment
(Listed Alphabetically)
Beverages
Consumer and Commercial Durable
Products, including Hardware, Plumbing, Automotive,
Industrial and Related Components and Parts
Food & Food Preparations
Household and Industrial Chemicals and
Cleaning/Finishing Products
Paper Products, Textiles, and All Other Soft- and
Hard-Good Non-Durables, n.e.c.
Personal Care Products (Cosmetics, Toiletries and
All Other Related Items)
Pharmaceuticals and Medical Devices
Printers, Publishers, and Packaging Converters
TOTAL
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Number of
Respondents
(#)
Percent of Total
Sample
(%)
70
15.0
49
10.5
177
37.8
39
8.3
32
6.8
28
49
24
468
6.0
10.5
5.1
100.0
TABLE I-2
THE SAMPLE BY EMPLOYEE-SIZE RANGE
Employee Size-Range
Number of Respondents
(#)
65
63
105
93
44
95
465*
Less than 50
50 - 99
100 - 249
250 - 499
500 - 999
1,000 or more
TOTAL
Percent of Total Sample
(%)
14.0
13.6
22.6
20.0
9.5
20.4
100.1**
*Three respondents did not provide the number of employees at their plant
**Total adds to more than 100.0 percent due to rounding
TABLE I-3
THE SAMPLE’S 2006 PURCHASES OF PACKAGING MACHINERY
BY DOLLAR-VOLUME RANGE
2006 Packaging Machinery
Purchases
($)
No Purchases in 2006
Less than $100,000
$100,000 to $250,000
Over $250,000 to $500,000
Over $500,000 to $1 million
Over $1 million to $2.5 million
Over $2.5 million to $5 million
Over $5 million
TOTAL
Number of Respondents
(#)
98
58
76
55
46
43
33
36
445
Percent of Total Sample
(%)
22.0
13.0
17.1
12.4
10.3
9.7
7.4
8.1
100.0
*Twenty-three respondents did not provide the value of their 2006 packaging machinery purchases
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TABLE I-4
THE SAMPLE BY RESPONDENT JOB TITLE
Title or Job Function
Owner, President, General Manager
Packaging Manager, VP, Director
Operations Manager, VP, Director
Engineering Manager, VP, Director
Production Manager
Manufacturing Engineering Manager, VP
Plant Manager, Superintendent
Purchasing Manager
Project Manager
Plant Engineer
Packaging Engineer (Including Senior)
Engineer (Various)
Maintenance, Materials, and
Other Managers
TOTAL
*Nine respondents did not provide title
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Number of
Respondents
(#)
Percent of Total
(%)
12
36
55
37
21
13
122
7
8
33
59
19
2.6
7.8
12.0
8.1
4.6
2.8
26.6
1.5
1.7
7.2
12.9
4.1
37
459
8.1
100.0
THE COMPANIES STUDIED
Beverage Capital Corporation
BG Products
BIC Corporation
Bio-Rad Laboritories
Birdseye (2)
Blistex
Blue Cross Laboratories
Blue Diamond Growers
Boise Cascade
Bond Corp.
Botanical Laboratories, Inc.
Boulevard Brewing Co.
BP Castrol North America
Brand Concessions
Bridgeport Brewing Company
Briggs & Stratton
Bunge North America East
Bunge Oils, Inc.
Burnette Foods
Burrows Paper Corp
Butterfield Foods
Cadbury Beverage -Motts Division
Cadbury Schweppes (2)
Calavo Growers, Inc.
Cambrooke Foods
Canandaigua Wine Company
Cardinal Brands
Cardinal Health
Cargill
Cascade Tissue
Catalina Water Co.
Cavanaugh Company
CCDA Waters
Certainteed Gypsum
Chanel
Cheese Kurls, Inc.
Chelsea Milling
Chemins Company
Chemrite Industries
Cher-Make Sausage Co.
Chevron/Texaco
Cholestech
Cindus Corporation
Cisco Systems
Citgo Petroleum
C.J. Vitner Company
A Print A Mint
A&M Cheese
Abbott Laboratories (3)
Ace Packaging
Actavis
Advance Food Products
Advanced H2O
AGFA
Airguard
Alaska Brewing Company
Alcon
Amcor P.E.T. Packaging
American Art Clay Co., Inc.
American Bakery
American Beverage Marketers
American Greetings
American Medical Systems
Amfine Chemical
Amway
Anchor Paper
Ancora Coffee Roasters
Anderson Packaging, Inc.
Anheuser Busch
Antioch Company
Arbor Spring Water
Armor USA, Inc.
Arrowhead Mills Inc.
Asheboro Paper
Atlantis Plastics
Auburn Dairy Products
August Schell Brewing Co.
B&G Foods
Bake N Joy Foods, Inc.
Bakery Chef
Barbara's Bakery
Basic American Foods
Bausch & Lomb
Baxa Corporation
Baxter Healthcare (2)
Bay West Paper Corporation
Bayer Corporation (2)
BD Medical Devices
Becton-Dickinson
Ben & Jerry's
Berlex Laboratories
Bernardi Italian Foods
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F. Gavina & Sons
FAPCO, Inc.
Fastenal Company
FBC Industries, Inc.
Federal Mogul Corp. (2)
Federal Mogul Wiper Products
Ferndale Laboratories
Fleischnmann's Yeast
Floracraft Corporation
Florida's Natural Growers
Flowers Foods, Inc.
Forest Pharmaceuticals, Inc.
Foster Farms
Fresenius Medical Care
Fresh Express
Freudenberg Household Products
Frick's Quality Meats, Inc.
Frigidaire
Frito-Lay
Gamay
General Electric
GE Sealants
Genentech
General Converting
Genesis Industries, Inc.
George J. Howe Co.
Georgia Pacific (5)
Gerber Products
Gertrude Hawk
Giant Eagle
Glaxo SmithKline (4)
Golden Country Foods
Golden Flake Snack Foods
Good Humor
Gorton's
Gossner Foods, Inc.
Gourmet Express
Great Kitchens, Inc.
Great Lakes Brewing Co.
Great Lakes Cheese Co.
Green Mountain Coffee Roasters
Greenlee Textron, Inc.
Hagar Hinge Co.
Hallman Lindsay Quality Paint
Hallmark Cards
Harrington Bottle Company
Hasbro Games, Inc.
Hawaiian Natural Water Company
Heinz Quality Chef Foods
Clorox
Cloverdale Foods Company
Clyde's Delicious Donuts
Coco's Chocolate Dreams
Cole Companies
Coleman Cable, Inc.
Conagra Foods (3)
Conair
Concord Foods, Inc.
Constellation Wines US
Continental Products
Cookies Food Products, Inc.
Cooper Farms
Coors Brewing Company
Country Pure Foods (2)
Crain Walnut Shelling, Inc.
CRC Industries, Inc.
Creative Chemicals
Creighton Brothers
Crystal Mountain Natural Spring Water
Custom Blending & Packaging
Daimler-Chrysler
Dakota Growers Pasta Co.
Danisco USA, Inc.
Data Services Solutions
David Umeda and Associates
DB Hess Company
Deb-El Foods
Degussa Corp.
Dekko Technologies, Inc.
Del Monte Foods (2)
Delano Service
Deli Star Corporation
DeWitt Products Company
Diamond Crystal Brands (2)
Display Graphics
Donaldson Company
Dr Pepper/7-Up
Dreyers Grand Ice Cream
Dura Corp LLC
Duracell
Ecological Laboratories, Inc.
Epson Portland, Inc.
Ernest & Julio Gallo Winery
Espoma
Estee Lauder
Eveready Battery Co.
Everson Spice Co.
Exel
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Lubrication Technologies, Inc.
Lucent Technologies
Lund Food Holdings, Inc.
M&B Fruit Juice Products
Made-Rite Sandwich Company
MagW Corporation
Mancini Foods
Mary Kay, Inc.
Maui Potato Chip, Inc.
Mavpac, Inc.
Maytag Dairy Farms
MCC Quick Pak
McCain Foods (2)
McKee Foods
McNeil National Engineering
Medline Industries
Melaleuca
Meridian Medical Technologies
Merisant
Merle Norman Cosmetics
Michelinas
Michigan City Baking Company
Midland Products
MSC
Miller Brewing Company
Mogen David Wine Corporation
Moore Wallace
Mor/Ryde
Morley Candy Makers
Mother Parker's Tea & Coffee, Inc.
Moyer & Son, Inc.
Mississippi Industry for the Blind
MSW Packaging
Mutual Materials
North American Lighting, Inc.
NAPA Balkamp
National Checking Company
Necco Candy
Nephron Pharmaceuticals Corporation
Nestle (2)
Nestle Purina Petcare
Nutra Blend
New Pig Corporation
New World Pasta
North American Beverages Company
Nutrimax Manufacturing
Oberto Sausage Co.
Ocean Spray Cranberries (2)
Odell Brewing Company
Henry Molded Pulp, Inc.
Herr Foods, Inc.
High Falls Brewing Company
Hinckley Springs Water Co.
Hiram Walker Allied
H.J. Heinz (2)
HNC Products
Hood Packaging Corporation
Horizon Food Group
Hormel Foods Corp.
House of Cheatham
Hubbell Lighting, Inc.
Hudson RCI
Indiana Ticket Company
Intercon Chemical Company
International Packaging, Inc.
Interstate Brands
Jays Foods, Inc.
Jelly Belly Candy Co.
Jim Beam Brands
JM Smucker Co. (3)
Jon Donaire Desserts
Joseph Gallo Farms
Juanita's Foods
Jus-Made, LP
K&S Engineering
Kahiki Foods, Inc.
Kellogg Company
Kelly Foods Corp.
Kendall Jackson Wine Estates
Kerry, Inc.
KIK Custom Products
Kingsford Manufacturing Company
Knoll, Inc.
Knouse Foods
Koch Foods, Inc.
Kohler Company
Kraft Foods (3)
Kramer Printing
Lake Country Foods
Lakeshore Latching
Lakeview Farms
Lang Naturals, Inc.
Late for the Sky
Lawrence Paper Company
Leggett and Platt
Lifetech Resources
Linvatec
LSI, Inc.
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Rust-Oleum Brands (2)
S&D Coffee, Inc.
Saco Foods, Inc
Saddle Creek CoPak
Saint-Gobain Corporation
Samuel Adams Brewing
Sara Lee (2)
Sargento Foods
S.C. Johnson
SCA Tissue
Schwans Bakeries, Inc
Seneca Foods Corp.
Skyline Exhibitors
Smiths-Kroger
Smith's Medical
Snyders of Hanover
Southeastern Aluminum Products
Southeastern Mills, Inc
Spartan Chemical Company
Springs Window Fashions
ST Specialty Foods
Standard Motor Products, Inc.
Standard Process
Starkey Chemical Process Co.
Star-Kist
Stearns Packaging Corporation
Stryker Orthopedics
Summer Scent Manufacturing, Inc.
Sunhill Food of Vermont
Sunshine Fresh
Sunstar Butler
Sunsweet
Sweet Candies, Inc.
Swift & Company
System Sensor
Taylor Farms
The Bruss Company
The Carriage House Companies, Inc.
The Dutch Kettle
The Fiebing Company
The Gillette Company (2)
The Hershey Company (3)
The LAD Company
The Republic of Tea
The Toro Company
The Triad Group
Thetford-Norcold Corporation
Toucan International, Inc.
TrueSoups
Olympic Fruit Company
OPI Products, Inc.
Osram Sylvania
O'Steen Meats
O'Sullivan Furniture
Packaging Unlimited of Western KY
Pandora Manufacturing
Pasta Montana
Paterson Paper
Pearson Candy Company
Pecan Deluxe Candy Co.
Pepperidge Farm
Pepsico/Quaker
Perdue Farms (2)
Permatex
Philips Oral Healthcare
PictSweet Co.
Pierce Biotechnology
Pilgrims Pride
Pillsbury Company
Poland Spring
Poore Brothers, Inc.
Potlatch Corporation (2)
Precise Packaging, Inc.
Premium Waters, Inc.
Presto Products
Procter & Gamble (2)
Producers Rice Mill, Inc.
Prospect Fastener Corporation
Protecto-Wrap Company
Puritan Spring Water
Purolator Products
Ralston Foods (3)
Rayovac
R.C. Bigelow (3)
RDI Foods
Red Gold
Rhodes Bake-N-Serve
Riviana Foods
Robinson Dairy
Rockline Industries
Rockwell Collins
Roundy's Supermarkets, Inc.
Roxane Laboratories, Inc.
Royal Cup Coffee
Royal Food Products
Rubbermaid
Rudolph Foods Company
Russell Stover Candies
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Tulkoff Food Products, Inc.
Turano Baking Company
Twin Cities Foods, Inc.
Tyco Healthcare-US Surgical
Tyson Foods (2)
Uncle Ben’s Brands
Unilever
Unilever Best Foods (2)
Unilever HPC (2)
United Gilsonite Laboratories
United Pet Group, Inc.
US Chemical & Plastics
US Distilled Products
US Fertilizer Corporation
USA Packaging
Valjean Corporation
Valley Queen Cheese Factory
Valvoline/Ashland
Vaportek, Inc.
Vegetable Juices, Inc.
Ventura Foods
Vita Specialty Foods
Watkins, Incorporated
Weider Nutrition, International
Welch's (2)
Wells Dairy, Inc.
West Coast Cosmetics
White Rock Distilleries
Wild Horse Winery & Vineyards
Willy Wonka Candy
Wisconsin Cheese Group
Wisconsin Pharmacal Company
Wm. Wrigley Jr. Company
W.W. Henry Company
Wyeth Pharmaceutical
Xttrium Laboratories
YaQuinto Printing Company
Yogurt Technologies, Inc.
YUM Brands, Inc.
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