Mexico´s plastic industry is strong and mature. The latest Plastimagen edition has just taken place in Mexico City from the 2nd to 5th of April. Here the latest technological innovations were presented to the Mexican plastics industry. MachinePoint once more exhibited at Plastimagen, which has become for the company a meeting point with its extensive customer base and an opportunity to present its used machinery services to new contacts.
Mexico is a key market for MachinePoint because it was the first Latin American country where the company began to have a significant turnover. The Mexican plastics industry has over grown the average country growth over the last two years. Mexico’s location as a link between North and South America makes it strategically important. It has a large and developed machinery market, where MachinePoint has loyal customers. For years, MachinePoint has had a local sales office located in Mexico City so it can be closer to its customers.
Cesar Rodriguez, MachinePoint´s CEO, visited Plastimagen and comments, "We are happy with the outcome of this Plastimagen edition. We have generated new business opportunities that we hope to materialize throughout 2019. The investment has been totally worth it!
We feel companies are more cautious when defining their future production capacity needs. The amount of used machinery entering the market for sale has risen significantly since the beginning of 2019. During 2018 we perceived a halt in the used machines entering the market for sale. This has changed since the start of 2019 and the market has been activated again once more . This is happening not only in Mexico but in Europe as well. Growth prospects are less optimistic than in previous years, the euphoria has calmed down and companies have started to readjust their production capacities. This results in surplus equipment flowing into the market. We foresee a good year for our used machinery business in 2019.”
2019 Q1 used machinery sales have already been extraordinary compared previous quarters. The main reason behind this is the increase of high quality good machinery entering the market for sale.
Used machinery demand has remained strong in past years, however the shortage of machinery for sale has resulted in fewer operations. MachinePoint is noticing that this trend is changing worldwide with the slowdown of the economy. It is a trend that the company has already experienced during other economic cycles. Used machinery is anti-cyclical. When production forecasts are very high, as they have been in the last years, companies invest in new machinery but do not get rid of their older machines. It is only when the market begins to adjust that companies begin to sell this used equipment after reviewing their growth forecasts.
Circular economy has also been a topic of reference along the conferences and exhibitors at Plastimagen 2019. Mexican companies are becoming aware of the pollution generated by plastics and are looking for technological solutions to implement in their factories and production processes. Regulations to prohibit the so-called "single-use plastics" are strongly impacting some parts of the industry and reactivating the recycling sector.
On the other hand, there is an active automotive sector, despite the political circumstances that threaten the Mexican automotive industry. Rodriguez adds, "Recycling and injection machinery for automotive have been the types of equipment most demanded during this fair. The recycling sector is becoming active in many economies due to consciousness and legislative changes. This change has also reached Mexico, where politicians and plastic processors alike are taking action to move towards a circular economy.
This was the 22nd edition of Plastimagen with more than 45,000 SQM, 879 exhibitors and 32,000 visitors.