The development of emerging economies in Latin America, Africa and Asia implies an increase of a new medium class that is demanding more and more food and beverage processed products in these markets. Double digit growth is expected in the next decade for food and beverage processed products in some emerging economies. Demand is increasing for processing lines and factories to be built in their local markets.
The machine manufacturing industry will face new demands in the forthcoming decade. These new markets coming up have a big part of the demand that is very price sensitive. Cheaper equipment to serve the local markets will be needed. On the other hand more demand for high quality, clean and energy efficient machinery will come from the more mature markets.
MachinePoint Engineering is the subsidiary of MachinePoint Group, that provides SMEs with complete plant and equipment solutions for the beverages and agro food industries at a very good value thanks to a unique business model. Their ability to combine new and used machinery in their projects makes their offer very competitive due to the capacity to combine used top brands at very attractive prices. MachinePoint Engineering has already experienced some of the realities of this new demand.
Cesar Rodriguez, MachinePoint Group CEO says, “We are seeing how emerging economies have a great level of activity and also investments plans in our industry despite the current global crisis. We realize how many countries have been and will keep growing over the forthcoming years, moving from an agricultural based structure to a more industrialized structure in the food industry.
Our product offering of complete lines and plants has had great acceptance among medium and small companies wanting to set up new production facilities and equipment. We do notice that there is a difference in the demand from these economies and the demand we experience in more developed economies.
For a start the demand is much higher, being 90% of the demand we have for our equipment from emerging economies. Most of the companies are small to medium size, and they are looking for new lines either to increase current capacity or to start producing new products. So we see both trends in increases in capacity and an increase in product diversification.
Another trend we perceive is that businesses are moving up the value chain. Entrepreneurs from the agricultural industry are looking to expand their business by processing the products themselves, instead of just selling them fresh. As an example a lot of fruit producers are looking to start processing their fresh goods into other added value products such as juices, pastes, etc. Milk farmers are looking to start their milk processing lines, etc. Entrepreneurs in the processing industry are starting to diversify their products to start serving niche markets. As examples different types of milk drinks, several varieties of juices, yogurts, etc.
Some companies are price sensitive; however they are also aware of the fact that an efficient processing line means a competitive advantage for their business, and more than just looking for cheap options their aim is to find a solution with the right price quality relationship.
When it comes to choose a provider for their new venture, we feel companies are looking for a business partner or allied to help them along the whole project, more than just a supplier. They demand a company that can provide them with an integral solution, rather than just buying the equipment. By integral we mean from sorting out the civil legislation, to energy solutions, fiscal and legislation issues, etc. A company that can commit to the final result of making things work, and accompany them through the whole process from the process definition to the final training of their work force. They demand more and more turn-key solutions.
A correct definition of the production process is key part of the project, as an efficient process with the right equipment will lead to a competitive advantage. It is not just a question of buying equipment, but rather a business partner that can accompany the customers along the whole length of the project to deliver them a customized solution.
Also some of the locations are challenging in terms of access, energy and availability of other utilities. It is necessary to have a team multi-qualified in different issues such as energy generation, water treatment, civil engineering, refrigeration, acclimatisation, etc. To be able to provide this a company must count on a multidisciplinary team in-house or a trustful network of partners. Having a unique partner throughout the whole project brings efficiency, as everything runs according to the same rules and project management.
If you buy machines on one side, get an engineering company to integrate them, get another company to established utilities, etc; responsibilities are diluted and the client needs to put himself into the job of the product management to guarantee an integration of the different companies and tasks. Customers can do this when they have the right expertise themselves and the time. Otherwise delegating such responsibility onto a company with a sound financial background and a contract stipulating obligations, is less risky than delegating to an employee or an individual consultant.
When talking about geographical areas, North Africa has proved to be the most active market so far. Also it is because it is very near our headquarters and engineering centre, and we have been longer established in the area. Latin America follows, being positioned in Spain is a key advantage to access this market from Europe. Then in Asia we have an office in India, for these markets we have a longer term plan, as distances and transport costs from Europe make them more difficult to penetrate.
European technology is appreciated and it brings with it a reputation synonymous of guarantee and reliability. MachinePoint Engineering manufactures through our partner processing equipment that complies with all European and American standards.
Our unique proposition to customers is our capacity to integrate used machines into processes where more expensive and technologically advanced machines would usually be needed, such as filling machines, where we can integrate for example used Tetrapak Filling machines. This drastically reduces the cost of the project, while still accessing top technology machinery. We can afford to do this thanks to our sister company MachinePoint Used Machinery, leader in the used machinery business over the last decade. This experience in the used market allows us to take the risks of incorporating these machines into our projects, and provide quality and reliable solutions at reduced cost, being able to comply with higher industrial standards with a reduced initial investment.”
MachinePoint Media Department
Tel: + 34 983 54 99 00