Processing Equipment Manufacturers See Continued Growth, Dollar Worries

By Joe Florkowski

The rest of 2015, as well as 2016, are expected to be strong years for the members of the Process Equipment Manufacturers’ Association (PEMA), but concerns about the labor force and the strengthening American dollar are reasons for pause, according to Charlie Ingram, recently installed president of the organization.

“Most members are optimistic and we are looking toward an even stronger 2016,” said Ingram, named president of the 66-member organization at its March meeting in Bonita Springs, FL.

Ingram told Powder & Bulk Solids that one of the strengths of PEMA and its members is that their customers are looking for efficient processing equipment. Companies would rather make the investment in efficient equipment, rather than simply hiring more staff. “Their ability to invest in capital is there,” Ingram said. “A lot of the expected growth this year and next is simply the pent-up demand from the 2008 and 2009 years.”

One of the main challenges PEMA members face – along with companies in other industries – is finding quality employees. Ingram, who is vice president of sales and marketing at Eriez, said that one of his company’s biggest challenges is finding the right people to fill positions. Part of that challenge is that it’s more difficult to bring employees into the manufacturing fields. “We don’t seem to be bringing people into the trades like we used to,” Ingram said.

But finding people to fill manufacturing jobs isn’t the only challenge – it’s also more difficult to find employees who want to get involved in industrial sales. Ingram says that companies are challenged with losing employee knowledge as baby boomers retire and companies are focused on retaining staff as long as they can. “That guy with 35 years of experience – how do you transfer all of that knowledge to the rest of the workforce?” said Ingram.

According to Ingram, a concern of PEMA members is the strong American dollar. Some larger PEMA members have international operations so the strong dollar is not as big an issue as it is to smaller companies. “It’s like having a price increase without the price increase,” said Ingram.

PEMA was founded in 1960, and currently has 66 members, with companies with annual revenues that range from less than $5 million a year to more than $200 million. Ingram said PEMA does not want to become too large and is mostly for sharing ideas and business acumen. “It makes it easy to pick up the phone and share information,” he said.

Joe Florkowski is the managing editor of Powder & Bulk Solids. He can be reached by e-mail at [email protected]

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