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Machinery sales continue strong.

Machinery sales continue strong

The machinery suppliers to the rubber industry appear headed for their third straight year of sales increases. Results from Rubber World's annual survey of used and rebuilt machinery dealers coupled with a recently released study by Business Trend Analysts indicate the markets for new machinery as well as used and rebuilt should continue strong through the end of this year.

The BTA study, "The markets for plastics working and rubber working machinery," pegged the growth of sales for new rubber working machinery at 8% during 1987 and predicted that 1988 figures would increase 4.9% to $170.6 million. BTA, a Long Island, NY based market research firm, indicated that this would mark the first set of back-to-back yearly gains for the industry since the late 1970s.

Many times a sustained period of growth in sales of new equipment indicates a drop off in interest in used machinery, but RWs survey shows differently. 85% of the respondents indicated that sales increased in 1988 with 75% stating they expect further increases to be posted this year. Less than 3% said sales declined in 1988 and the same number predicted a decline for 1989.

Most of the suppliers of rebuilt machinery said there was strong demand for all rubber processing machinery. Presses, mixers, mills and extruders are the most requested pieces and the suppliers indicate that most equipment can readily be had with the exception of cold feed extruders and certain size presses.

Reflecting the capacity increases of the tire industry, the BTA report shows tire building machines accounting for one-third of sales of rubber machinery. Sales for tire building equipment should have reached $55.7 million in 1988, according to BTA. Sales in 1987 were $53.8 million. Tire-building equipment sales accounted for only 21% of machinery sales in 1977. Tire equipment sales have been a third of total rubber equipment sales for the last six years.

High intensity solid mixers are currently the fastest growing product category, increasing nearly 12% in 1988 to sales of $11.3 million. These mixers have shown a steady increase in growth since 1977.

Sales of extruders increased slightly last year, BTA estimates, to $17.2 million, which is almost half of what sales were in 1977 when sales reached $34.2 million. Imports of extrusion machines have been running high along with certain types of presses. The Society of the Plastics Industry petitioned the International Trade Commission to look into what they feel is dumping of injection molding machines.

Exports are still a strong part of the rebuilt market, as almost 90% of the rebuilders in the RW survey indicated they export rubber equipment. The average is 15.5% of the business, but three companies, Akron Tire Engineering and Machinery, Soberay and West Coast Rubber Machinery, bring the percentage up as exports account for 90%, 60% and 40% of their business respectively. Removing these three brings export sales down just under 10% for the rebuilders.

As in prior years, a directory of used and rebuilt rubber machinery suppliers follows, along with a grid on the capabilities of those companies that offer rebuilding services.
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Title Annotation:Annual Machinery & Equipment Issue
Publication:Rubber World
Date:Jul 1, 1989
Previous Article:Compounding requirements and techniques for rubber covered rolls.
Next Article:Used, rebuilt machinery suppliers.

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