The Rise of Rental Machinery
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.
This video is first in a six part series. Scroll to the bottom of this article for the complete list.
Alternatively, CPGs can turn to contract packagers as a solution for shorter runs or new technology trials. Successfully working with the contract packager can make CPGs feel more comfortable making a long-term investment in packaging equipment.
PACK EXPO Las Vegas 2019 (Sept. 23–25; Las Vegas Convention Center) co-located with Healthcare Packaging EXPO 2019 produced by PMMI, The Association for Packaging and Processing Technologies, offer the latest packaging technologies to help manufacturers improve operations and stay competitive. At the show, attendees can explore contract packagers and rentals and equipment purchases from a combined 2,000 exhibitors from more than 40 vertical industry markets.