US demand for paper industry machinery (including parts and attachments) is forecast to reach $3.6 billion in 2022. Suppliers will benefit from increases in paper and paperboard production, which will support investments in new, more efficient machinery and upgraded parts.
A Paper Chase
The major driver of demand for US paper industry machinery, paper and paperboard production, is projected to see only minimal annual growth through 2022, inhibiting any major increases in capacity and thus widespread machinery investment. Furthermore, expected US paper and paperboard production levels in 2022 represent a 10% decline compared to the 2007-2017 decade peak in 2007. However, suppliers of paper industry machinery will benefit from the need for producers to update outdated equipment.
The Rise of the Machines
The need to replace aging machinery, as well as demand for equipment that is more efficient than older models, will generate sales. For example, Valmet received a repeat order to supply its OptiConcept M board production line for Pratt Industries in Wapakoneta, Ohio, which is scheduled to be started up by the end of 2019. The new equipment reduces power consumption, uses less water, requires fewer raw materials, and generates other efficiencies, resulting in cost savings. With no major increase in paper and paperboard production levels projected through 2022, producers are now focused on reducing costs where they can.
Teaching Old Dogs New Tricks
For many producers, upgrading machinery that still has a valuable operating lifetime is unreasonable. Instead, these firms rely on parts and equipment to extend the life of existing equipment as well as to upgrade modular parts and boost performance. For example, many producers improve the efficiency of their machinery by adding on monitoring and control systems, such as Voith’s OnCare CM. Such systems gather data throughout the production process and notify operators of opportunities to improve efficiency, often automating the entire process. In fact, demand for parts and attachments is projected to grow slightly faster than the demand for new machinery, as many paper and paperboard producers buy parts as well as attachments for new and existing machines.
Want to Learn More?
Don’t worry, we have you covered! For additional information and analysis of US industry trends, see Paper Industry Machinery: United States, a report published by the Freedonia Focus Reports division of The Freedonia Group. This report forecasts US paper industry machinery demand and shipments in nominal US dollars at the manufacturer level to 2022. Total demand is segmented by product in terms of:
- wood preparation and other pulp mill machinery
- paper production machinery
- finishing machinery
- converting machinery
- parts and attachments
To illustrate historical trends, total demand, total shipments, the various demand segments, and trade are provided in annual series from 2007 to 2017.
While you’re there, check out some of our related reports, which include Control Technologies: United States, Forestry Equipment: United States, and Printing Machinery & Equipment: United States.
About the Author
Chris Dyer is a Market Research Analyst for Freedonia Focus Reports. He holds a Master of Arts in Security Studies, and his experience as an analyst covers multiple industries.