Is investment in packaging equipment in the UK picking up?

Tuesday, 15 May 2007

YES

The UK packaging machine industry has, for the past few years, suffered from manufacturing moving to Eastern Europe and the Far East. So while turnover of British firms has not declined, the percentage produced at home has. However, over the past 12 months there has been a trend towards companies either bringing production back to the UK, due to the difficulties of producing at satellite operations, or, more crucially, making a decision that production will remain in the UK. Both of these factors have meant that, for our customers to make this work, the UK production environment needs to become, and remain, more efficient than it has ever been. As a result, continued and improved investment in packaging equipment is inevitable.

Malcolm Little
Joint managing director
Advanced Dynamics


YES
Flexibility and return on investment are key factors when considering the purchase of new packaging machinery. As technology advances, the impact on equipment efficiencies is so substantial that payback times can be impressively short. As a specialist in integration we have enjoyed particular success with our Integrated Cartoning System, which has form, fill and seal capabilities and illustrates how the application of robotics can reduce footprints and provide a flexible solution. We have noticed some trepidation in the UK, compared with China, around the more advanced technologies. UK manufacturers are leaning to more established solutions such as the equipment currently on show at our stand, rather than the more high-tech solutions in our portfolio.
Dennis Juenger
Group marketing manager
Bradman Lake

NO
The packaging and converting industry has seen a lot of consolidation in recent years and many sectors are dominated by European or global organisations. While these organisations still see the UK as a large and valuable market, the real growth in demand is in Eastern Europe and the Far East. Consequently, investment is going into those areas where capacity is needed to meet the requirements of these emerging markets. In addition, and this is a serious concern, the regulatory and fiscal environment in the UK has become a massive deterrent to new investment in manufacturing industry. Add to that the relative cost of energy and raw materials in the UK compared with other parts of Europe, and it is no wonder that the investment goes elsewhere.
Tony Woods
Director
MPMA


YES
It is a generally accepted fact that manufacturing is up on last year, and the overall investment in packaging is improving in line with the rise in manufacturing output. Last year we saw an increase in the number of quotations for larger projects, including non-standard machinery and bespoke projects such as retail-ready packaging. However, it is only this year that we are seeing these orders come to fruition. Since Christmas, Endoline has witnessed a quicker turnaround from quotations to orders being placed and this trend is continuing. Outside of the UK, Endoline’s exports continue to perform well and are on target to exceed 20% of its total sales this year.
Tony Hacker
Managing director
Endoline

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