Days of Delays?Equipment Purchasing Report
July 2001
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When will more of the industry's equipment purchasing intentions turn into purchase orders?
by Susan Friedman, Editor
OK, the hold-out's over; spending can start now ... right? According to packagePRINTING's 2001 Equipment Purchasing Survey, 60 percent of responding package printers have intentionally delayed most equipment purchases until the second half of this year due to the economy.
packagePRINTING's survey isn't the only one showing these stalled spending stances. According to Stephen Kodey, manager of economic and business research at Printing Industries of America (PIA), a first quarter PIA survey showed 33 percent of printers (commercial and packaging) planned to hold off indefinitely on capital investments until additional information about the economy emerges.
The jury's still out on whether a spending deluge is set to ensue in the coming months, but pP survey results suggest that not everyone in the industry has completely put the brakes on technology investments. Thirty-six percent of respondents say equipment purchases are definitely not on the back burner. What's more, 48 percent indicate economic conditions will not change their equipment purchasing priorities for 2001; that is to say, they will continue to pursue whatever equipment company and customer needs dictate. Thirty percent plan to prioritize one or two big ticket items this year, and another 30 percent plan to focus on smaller scale equipment and accessory purchases.
Then vs. now
Granted, the brisk purchase pace of 2000 is a tough act to follow. Nearly one in three converters responding to pP's survey spent between 1 percent and 25 percent more last year than what was budgeted. Nearly half spent exactly what was budgeted. Of those who underspent (14 percent), 12 percent did so because of a budget cut or freeze, with average reduction of 28 percent.
At the time of last year's survey, one in four respondents planned to increase their equipment budget up to 25 percent in 2001, and one in five planned to increase it up to fifty percent.
Those intentions appear to have been scaled back, with "less" now dominating "more" of package printers' 2001 spending plans. More than a third now expect to spend less than they did last year—and 16 percent of these printers predict budget cuts of up to 75 percent. Twelve percent plan to trim equipment expenses by up to 25 percent. Eight percent plan no equipment purchases at all.
Suppliers' shops better stay open, however. Twenty-six percent of respondents plan to keep budgets level with the past year's, and over a quarter plan to spend more. Of the latter set, 14 percent say they'll spend up to 25 percent more, and 4 percent plan to plunk down up to 50 percent more.
by Susan Friedman, Editor
OK, the hold-out's over; spending can start now ... right? According to packagePRINTING's 2001 Equipment Purchasing Survey, 60 percent of responding package printers have intentionally delayed most equipment purchases until the second half of this year due to the economy.
packagePRINTING's survey isn't the only one showing these stalled spending stances. According to Stephen Kodey, manager of economic and business research at Printing Industries of America (PIA), a first quarter PIA survey showed 33 percent of printers (commercial and packaging) planned to hold off indefinitely on capital investments until additional information about the economy emerges.
The jury's still out on whether a spending deluge is set to ensue in the coming months, but pP survey results suggest that not everyone in the industry has completely put the brakes on technology investments. Thirty-six percent of respondents say equipment purchases are definitely not on the back burner. What's more, 48 percent indicate economic conditions will not change their equipment purchasing priorities for 2001; that is to say, they will continue to pursue whatever equipment company and customer needs dictate. Thirty percent plan to prioritize one or two big ticket items this year, and another 30 percent plan to focus on smaller scale equipment and accessory purchases.
Then vs. now
Granted, the brisk purchase pace of 2000 is a tough act to follow. Nearly one in three converters responding to pP's survey spent between 1 percent and 25 percent more last year than what was budgeted. Nearly half spent exactly what was budgeted. Of those who underspent (14 percent), 12 percent did so because of a budget cut or freeze, with average reduction of 28 percent.
At the time of last year's survey, one in four respondents planned to increase their equipment budget up to 25 percent in 2001, and one in five planned to increase it up to fifty percent.
Those intentions appear to have been scaled back, with "less" now dominating "more" of package printers' 2001 spending plans. More than a third now expect to spend less than they did last year—and 16 percent of these printers predict budget cuts of up to 75 percent. Twelve percent plan to trim equipment expenses by up to 25 percent. Eight percent plan no equipment purchases at all.
Suppliers' shops better stay open, however. Twenty-six percent of respondents plan to keep budgets level with the past year's, and over a quarter plan to spend more. Of the latter set, 14 percent say they'll spend up to 25 percent more, and 4 percent plan to plunk down up to 50 percent more.
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