Coronavirus doubles demand of flexible packaging, blowmolding, and beverages machinery
June 4, 2020
Used machines are helping plastic and liquid processors serve the society. Never in our history has the whole world had to react at the same time against a common threat. Since the lock down in Wuhan on January 23rd, the world has been locking down its cities to fight a death toll that experts estimate may reach three times that of seasonal flu.
The used machinery market since February 2020 is experiencing huge demand and supply swings that are affecting used machinery prices. Blow molding machines of all kinds (stretch, injection-stretch or extrusion) have doubled demand and halved supply as sellers hold onto their used machines to meet a much higher demand for hydrogels, hand soaps, alcohol, glycerin, bleach, cleaning products, or beverages like water, juices or beer. Injection molding machinery for crates is also in higher demand as buyers do not empty them as fast as they replenish their home inventories.
While a large part of the Economy stands still, the Flexible Packaging industry is at full capacity at 30% above their regular activity. The bottle and bottling industry is producing at 100% above their regular capacity running up to 5 shifts in some cases. Wine makers, laboratories, or clothing industries have had to modify their manufacturing to cope with the demands of corporations, families, hospitals, clinics, police, army, or firefighters. Governments closing borders around the world are blocking needed supplies that are disrupting world-wide markets. Governments allowing the illegal sequestration of protective equipment like masks, hydro alcohols, or protective equipment is a sad reminder of the infinite stupidity of some leaders and only increases world-wide prices as buyers are forced to transport their purchases by air. Cargo air fair is at 300% of the prices before COVID.
We are having to accept these prices to ship molds, hot runners or die heads that are urgently needed in Germany, Italy, Spain, Mexico or the United States. On the other hand, we have many machines waiting to be picked up due to trade barriers at origin, destination or transit countries. This is an intense moment that is putting the industry under a tremendous strain that to my understanding is proving to be working very well given the trade limitations that governments are putting onto our business. Unlike SARS, SARS2 or COVID19 will be remembered as the largest test the modern world has registered to date.
At MachinePoint we are 100% operative serving the global industry with the best used machines available in the market and with best machinery logistic practices.