CLEVELAND - The rate of growth in U.S. demand for plastics processing machinery should slow through 2005, to a 3 percent annual rate, down from 4.4 percent a year from 1995 through 2000, according to a report from Freedonia Group Inc.
Freedonia said plastics material substitution and new machine technology will bolster growth, but the machine-buying boom of the past decade will dampen the market.
The U.S. will remain a net importer of plastics machinery, with foreign-built equipment accounting for more than half of total demand in 2005.
Cleveland-based Freedonia reports demand in dollars.
Freedonia said all segments of plastics machinery should slow down.
Injection molding machinery, the largest segment, should grow by 3.1 percent through 2005, compared with a 5.1 percent rate from 1995-2000. Sales in 2005 should reach $1.35 billion.
Although capital expenditures by molders are expected to slow, demand will grow for all-electric presses to replace hydraulic machines. U.S. molders also will be pressured to invest in more productive machines to remain competitive with low-cost foreign molders, Freedonia said.
The market for blow molding machines should grow by 3.2 percent a year, reaching $380 million by 2005, spurred by demand for plastic bottles and new technology to blow mold beer bottles. Blow molding machines grew 5.6 percent from 1995-2000.
Extruder sales will get hurt by a slowdown in new construction and a consolidation among extrusion companies, growing by 2.5 percent a year. Sales will hit $350 million in 2005.
Freedonia thinks thermoforming and other types of machines should grow by 2.4 percent a year, to $310 million in 2005.
Reaction injection molding machines will be the fastest-growing type of plastics machinery over the five-year period, Freedonia said. Aftermarket parts will grow a healthy 3.5 percent, to hit $410 million in 2005.
The report, Plastics Processing Machinery, costs $3,600.
Tel. (440) 684-9600, fax (440) 646-0484, e-mail [email protected]