Processing Magazine

Outlook rosy for plastics processing equipment market, asset services provider says

April 24, 2012

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.