Processing equipment sales rise with efficiency measures

A combination of business growth and pent-up demand for more efficient replacement machinery and processes is driving demand, according to suppliers contacted by Food Manufacture.

Last month's Quarterly Industrial Trends Survey of 420 manufacturers, published by the Confederation of British Industries, showed that 32% expect a rise in output volumes, while 10% were planning to increase their capital expenditure compared with last year the largest rise since 1997.

Companies are gearing up for an expected increase in consumer spending and want to be ahead of the curve in bringing out new products, said Ishida's marketing manager, Torsten Giese. His view was supported by other suppliers.

Tony Ambrose, marketing director for meat processing equipment manufacturer AEW Delford (now part of Marel), reported rising sales over the past two quarters. Ambrose attributed this to firms investing in more efficient equipment that enabled costs to be driven down. He added that processors were starting to invest in capital projects that had been put on hold in the past due to financial pressures.

Marco md Murray Hilborne agreed that a desire for improved efficiency was helping to drive demand, but he added that firms still needed proof that their investments were justified. "After three years of not investing, companies are going to have to decide whether they are still in the business or not," he said.

Marco has seen sales grow by around 18% this year and expects this to continue next year. Hilborne put this down to "a more ballsy approach [from suppliers] in offering guarantees on efficiency savings, equalling investment returns within a year".

There was further good news for the sector as equipment supplier BCH celebrated the 10th anniversary of its Innovation Centre in Lancashire in October.

The centre has come up with novel designs and technologies for mixing, cooking, cooling, extruding and enrobing food and confectionery. Products developed and tested include cinder toffee, four-colour liquorice and banana fruit bars. Other technologies developed have ranged from the ProWok for high-quality stir fry production and potato cooking, cooling and extruding for potato snacks.