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
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
![the{PACK]out: Day 3 featured hands-on workshops to bring package design concepts to life. (Image courtesy: Cassie Ladd)](https://img.healthcarepackaging.com/files/base/pmmi/all/image/2022/06/Day_3_workshop_KS.62b0d20c14538.png?auto=format%2Ccompress&fit=crop&h=146&q=70&w=340)
