U.S. packaging machinery shipments eclipse $6 billionfor first time.

U.S. packaging machinery shipments reached $6.110 billion in 2006, a 6% increase from the $5.765 in equipment shipped in 2005, according to PMMI's 2007 Shipments and Outlook Study. This marks the fifth consecutive year of industry growth since 2001.

Sixteen of the 17 machinery categories

that PMMI monitors in this annual report experienced growth in 2006. Two categories, Wrapping (+18.6%) and Capping, Overcapping, Lidding and Sealing machinery (+11.2%) enjoyed double-digit growth. Converting machinery was the only machinery category with a modest decline of-0.6 %.

Exports of packaging machinery surpassed the $1 billion mark for the third consecutive year with $1.012 billion in equipment sold overseas, an increase of 0.5%. U.S. domestic demand, which includes domestic shipments and import figures, increased by 8.4% to $6.637 billion in sales in the U.S. market. Domestic shipments were up 7.2% to $5.098 billion and imports were up 12.6% with $1.539 billion in sales.

"U.S. domestic demand for packaging machinery has been particularly strong for the past three years with 9.8% growth in 2004, 7.6% growth in 2005 and last year's 8.4% growth," notes Chuck Yuska. "While things have slowed in 2007, capacity levels remain high, and we expect consumer goods companies to continue their past buying patterns at slightly moderate terms."

Growth Factors in 2006

The following growth factors supported the strong industry growth in 2006:

* Increased focus by U.S. companies on manufacturing/packaging cost reduction and productivity improvement to combat rising labor, energy and raw material costs.

* Continued strong cash positions among U.S. corporations.

* Increased need for highly flexible packaging machinery to accommodate shorter packaging runs with a widening range of packaging styles, sizes and configurations.

* Greater demand for turnkey packaging system projects (total line solutions).

* Favorable reception to new machinery introductions with advanced features and benefits including robotics, servo technology, faster speeds, greater packaging precision, easy packaging line integration, touch screen user controls and smaller footprints.

* Demand for machinery upgrades due to packaging format changes to support consumer marketing efforts.

* Attention made to product tracking and labeling, as well as continued pressures co add package security features to protect product integrity, prevent counterfeiting or product contamination.

"Over the past few years, PMMI has been working closely with its members to keep up to speed on the changing marketplace, and to ensure they are delivering value beyond the machinery solutions they create," adds Yuska. "The sales numbers PMMI members are posting are clear indicators that they are meeting the needs of the customer community and are poised for long term growth."

ANNUAL GROWTH OF U.S. PACKAGING
MACHINERY SHIPMENTS--2001-2006

2001   $4,804
2002   $4,807
2003   $4,889
2004   $5,344
2005   $5,763
2006   $6,110

Note: Table made from line graph.

SUMMARY OF U.S. 2006 PACKAGING MACHINERY
SHIPMENTS BY MACHINERY CATEGORY

Machinery Category                     2006       Percent    2005-2006
                                     Shipments    of Total     Growth
                                    ($Millions)     (%)         (%)

Pre-made Bag Hanging, Opening,
Weighing, Filling, and Closing,
Scaling Machinery                       144         2.4         +3.6

Bottling Line Machinery                 396         6.5         +4.2

Capping, Overcapping, Lidding,
and Sealing Machinery                   179         2.9        +11.2

Cartoning, Multi-Packing, and
Associated Leaflet/Coupon Placing
Machinery                               184         3.0         +2.2

Case and Tray Forming, Packing,
Unpacking, Closing and Sealing
Machinery                               424         6.9         +5.7

Coding, Dating, Printing,
Marking, Stamping, and imprinting
Machinery                               593         9.7         +4.4

Converting Machinery (Selected
Categories)                             167*        NA          -0.6 *

Conveying, Feeding, Orienting,
Placing, and Related Machinery        1,309        21.4         +6.7

Filling Machinery--Dry Products         185         3.0         +6.9

Filling Machinery--Liquid
Products                                287         4.7         +8.3

Form/Fill/Seal Machinery--Bag/
Pouch                                   213         3.5         +6.5

Inspecting, Detecting, and Check-
weighing Machinery                      290         4.8         +5.5

Labeling Machinery                      396         6.5         +4.2

Palletizing, Depalletizing, and
Pallet Unitizing Machinery              469         7.7         +3.8

Shrink Film Heating and Heat
Sealing Machinery                       182         3.0         +2.8

Skin and Blister Packaging
Machinery                              26.1         0.4         +7.0

Wrapping Machinery                      262         4.3        +18.6

All Other Packaging Machinery
(NEC)                                   571         9.3         +5.7

Total                                 6,110       100.0         +6.0

* Converting Machinery ($167 million) is included in the packaging
machinery