The plastics processing industry is poised to see
steady growth over the next several years due to the ongoing economic recovery
and expanding foreign markets, which will spark demand for plastics processing
equipment, analysts with Great American Group, Woodland Hills, Calif., a
provider of asset disposition, valuation and appraisal services, believe.
“Demand for plastics processing machinery and
equipment has rebounded significantly over the past 18 months and is nearing
pre-recession levels," Lee Danhauer, vice president/senior appraiser and
plastics processing equipment specialist for Great American Group, says.
"In many cases, the values we are seeing at auction have surpassed those
seen in 2007 due to the scrapping of larger machines during the automotive
slow-down, and a ramp-up in demand from manufacturers that curtailed production
during the recession years. We expect this positive trend to continue in the
foreseeable future, especially as the international market for used plastics
machinery and equipment remains strong and growing."
Great American Group also believes the plastics
processing industry is ripe for consolidation as companies that have struggled
to recover from the recession are acquired by more successful firms. As newly
merged firms shed excess capacity, this trend will result in an influx of older
equipment in the secondary marketplace.