Posted on July 16, 2010 by Dennis Salazar

Packaging Equipment Activity – A Reason to be Optimistic

Shrink Wrap Sealer and Tunnel

We are so focused on sustainable packaging and that is obviously what we are best known for, but we also happen to be one of the most experienced packaging equipment suppliers in the industry. Our products include shrink wrapping systems, pallet wrapping equipment, bagging and bundling systems, case closure equipment and a wide variety of conveyors, feeders, placers and other production enhancing hardware.

The Economic Indicator We Look At

I am glad to report we are having an excellent equipment month. We have multiple orders from multiple customers in different industries and that is extremely encouraging considering the spotty equipment sales we’ve experienced for almost two years. This is also significant because July is historically not a good month for equipment orders.

If you believe (and I have for over 35 years) that equipment sales always precede and drive material sales, this is one of the most encouraging economic signs we have seen in a while. We have been doing this too long to become giddy over one single good month of equipment sales but here are a few more positive signs to consider:

Inquiries and RFQs for equipment are way up.
Prices are going up and lead times are getting longer. Believe it or not, these are good signs because they indicate manufacturers are getting busy again.
This week I received notices from two leading equipment manufacturers in search of people. They are looking for engineers, technicians, assemblers and other highly skilled positions.

Who’s Driving the Economic Recovery?

I think it is us. It is industry, distribution, manufacturers and every other resilient, hard working company that is investing and growing in spite of the economy and some misguided governmental policies. The administration bailed out the banks but the banks are doing little to help small to mid size businesses.

The only things growing thanks to the economic stimulus programs are public works construction, the size of the federal government itself and of course our national debt. Bail outs may have helped save the auto industry and that is a very good thing but the trickle down has not been nearly as beneficial as many hoped and it sure has not created the jobs that were promised.

Perhaps we finally became tired of waiting for someone to help us and we finally took control of our own destiny. Good for us and good for the people who will be making and using the equipment that is being sold today.