Packaging Strategies and Flexible Packaging editorial director Kristin Joker and PMMI’s Jorge Izquierdo discuss what’s driving the demand for rental machinery. Part 4 of 6
The packaging machinery market is seeing an uptick in demand for rental machinery. There are three key drivers of this trend: flexibility, cost and return on investment. Continuously evolving consumer demands and the explosion of SKUs means that flexibility is paramount, particularly in the food and beverage markets. It can be difficult for CPG manufacturers to know what their packaging needs will be in a year or even six months down the road, making machinery rentals an appealing option.
It’s important to note that the option for equipment rental does not eliminate all purchases. Leasing can cost less upfront but may require high monthly fees, making the option to purchase more appealing for companies that can finance the equipment. Depending on the type of machinery, the application and the size of the manufacturer, purchasing may still be the more effective choice. CPG manufacturers should also consider the length and scale of a project, their budget and sensitivities to investors.