January 2003

packaging machinery makers edgy about margins

Members of one organization of packaging machinery manufacturers worry that pressures from major customers to add services and reduce costs could endanger some of their businesses.

Members of the United Kingdom based Confederation of Packaging Machinery Associations (COPAMA), during the group’s monthly meeting in November, discussed the growing concern that major multinational end users were placing packaging machinery suppliers under ever-increasing pressure by imposing onerous terms and conditions and making unreasonable price demands.

“ These days, the end users are asking more and more from machinery suppliers,” said Andrew Manly, the group’s secretary general and CEO of the U.K.’s Packaging and Processing Machinery Association, in a prepared statement. “But they still expect us to slash our margins and stack contract terms and conditions in their favor.”

Members of the group also discussed workplace issues, including skills and training needs among member companies. COPAMA is undertaking a survey of skills and training programs among its member countries to identify benchmarking opportunities and recognize best practices.

“Lack of skills in engineering is almost a worldwide problem,” Manly said, “not just for packaging machinery makers but for all types of engineering.”