OEM Supplier Survey Reveals Contract Manufacturing and Packaging Needs

More than a third of OEM respondents said that 10% to 25% of their sales come from contract manufacturing and packaging customers.

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To better understand OEM supplier relationships and habits with contract manufacturers/packagers (CM&Ps), PMMI, the Association for Packaging and Processing Technologies, conducted a survey of its OEM members.


More than a third of OEM respondents (37%) said that 10% to 25% of their sales come from CM&P customers. The survey results provide insight into the state of the CM&P industry, as well as how OEMs are adapting to meet the needs of CM&Ps.

 

Industries served

The most popular markets that respondents sell machinery to CM&Ps for are:

  • 53% - Nutraceuticals and supplements
  • 41% - Baked goods
  • 41% - Confectionery
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However, the largest markets for selling machinery to CM&P are:

  • 17% - Beverages (including alcohol)
  • 13% - Medical devices
  • 11% - Protein 

 

Equipment needs

When OEMs were asked about what automation or technology needs CM&Ps are asking for, open-ended comments indicated that the most popular solutions are integrated lines and a single piece of equipment.

 

The most popular machinery to sell to CM&Ps includes:

  • 34% - Conveying, feeding, and handling
  • 32% - Bagging, pouching, and wrapping equipment
  • 31% - Cartoning, multipacking, and case equipment

 

When it comes to equipment capabilities and features, OEMs noted some specific demands and needs that CM&Ps are requesting when they purchase machines:

  • Quick changeovers
  • Predictive maintenance and production monitoring
  • Versatility for different package formats
  • Lines need to be built around new labeling requirements
  • Easy-to-operate machinery
  • Turnkey systems for secondary packaging
  • Sophisticated vision systems and robotics
  • End of line automation
  • Process automation

Among these equipment attributes, OEMs ranked the most important machinery features among their CM&P partners as:

  • 79% - Flexibility
  • 65% - Speed of delivery
  • 36% - Portability
  • 20% - Adherence to CPG specs
  • 14% - Lease option

Do these survey findings reflect the needs and demands of your company? For more in-depth findings and to read verbatim responses of OEMs, download the survey results here: OEM Sales to Contract Packaging and Manufacturing Operations

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