Germany Packaging Machinery Market Research Report - PMMI

Based on the interview data, it is rare for German companies to carry out annual capital investment
plans or to engage in long-term planning with regard to packaging machinery. However, usually there
is a budget to cover the maintenance costs of packaging machinery.
Budgeting for packaging machinery is done at the time a new machinery purchase is due. All relevant
data regarding costs, such as maintenance periods, downtime, energy consumption, material costs, and
costs for personnel, are taken into account in the budget calculation. Usually, manufacturers are
approached that are already well known to the company, either by personal experience or, in bigger
companies, the experience of colleagues. If a company belonging to a group has had a good experience
with a particular machine, this is communicated to the other companies in the group so that the whole
group can benefit. The exchange of experiences among the technicians from all the production facilities
is viewed as an important reference source. If such references are not available for a company, if for
instance the company is new or small, reference lists will be requested from the potential supplier.
Potential suppliers of packaging machinery may be approached in two principal ways. Either the
prospective supplier is presented directly with the requirements and expectations for the machinery, or
he is asked to bid in a more general way. Either way, many companies expect the manufacturer to
cooperate in order to find the best packaging machinery solution for the company’s individual needs.
4.3.1.2 Purchasing criteria
The most important purchasing criterion at the decision stage is the performance of the machinery and
the manufacturer. Does it meet the company’s needs? Is it reliable? Is it an innovative technology that
will still be modern and appropriate in the future? Is the manufacturer competent with regard to
mechanical engineering? Is the manufacturer capable of answering technical questions related to
control, electrical, and electro-technical criteria?
The operating costs of the machinery are a further decisive factor. The machinery is expected to be
robust and long-lasting. Conversion times and breakdown frequency should be as low as possible.
Operating costs such as electric power consumption, compressed air consumption, or packaging raw
materials consumption are considered thoroughly, as well as maintenance costs in general.
Service (including training of the machine operators) and value for the money are also important
factors, although some interviewees clearly stated that the cheapest machinery does not always offer
the best value. One respondent said that service and maintenance are not purchasing criteria because, in
90% of cases, these are undertaken by in-house staff.
Flexibility, i.e. the capability of a machine to be changed over, and its availability, i.e. a short delivery
period, were also mentioned by several respondents.
Some interviewees stated that they attach great importance to personal contact with the manufacturer.
A good level of communication guarantees the best results for both supplier and purchaser.
Many interviewees considered that compliance with regulatory formalities (in Germany strict
regulations apply, especially in the food and beverage sector) has to be checked thoroughly before
buying any machine.
4.3.1.3 Decision makers
In most companies, it is the technical department that is in charge of the selection of packaging
machinery and its manufacturers. The technical department together with either the engineering