ARC reports packaging a bright spot in a dim economy

The ARC Strategy Forum being held in Orlando has in its first hour pointed out some positive indicators in which the packaging industry can find optimism.

Although subtle, just the fact that 450 people are expected to attend this conference in a time when many conferences are being canceled, is a positive sign for the automation industry. The revised ARC 2009 worldwide automation forecast has process industries flat; power, consumer goods, food and life science industries growing by single digits; and discrete industries including automotive in single digit decline. Packaging is strong in the growing segments.

Packaging was singled out as one of the bright spots in the forecast, along with more obtuse technologies such as product lifecycle management (PLM) and virtual commissioning. Automation has become cheap in a time when energy and raw materials are expensive and skilled labor is limited.

In the current world business environment, the US is looking better. The 2008 / 09 Global Competitive Index published by the World Economic Forum has ranked the US as number 1. This organization defines competitiveness as "the set of institutions, policies, and factors that determine the level of productivity of a country". ARC claims that most companies are no longer planning to move production to China or other low cost countries and that many are planning investment in new plants either in the US or Mexico.

My own anecdotal experience tells me that packagers and packaging automation suppliers are doing better than most in this down period. As the ARC Forum goes on, we will hear much more about packaging. I'll stay tuned and let you know what I learn.

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