The rapid growth of the national economy and the expansion of productivity enable us to easily observe that as the end users' understanding of the intrinsic benefits of new mechanical technologies increases, it is expected that this will stimulate further upgrading of old machinery. It is anticipated that consumer spending will remain vigorous in the first half of 2006, thereby creating the demand for expanding packaging capacity.
The end users collectively realized the urgency of reducing labor costs and improving production efficiency by enhancing the automation level of packaging, which continuously stimulated the demand for new equipment. The continuous emergence of new products and the increase in expected inventory units (SKU) remained a reliable foundation for the increase in mechanical business volume in 2006.
In addition, consumer goods packaging manufacturers continue to focus on the innovation of packaging (including design, construction and materials), thereby further stimulating the demand for new machines. The strong influence of super markets and retail chains on packaging requirements continues to be an important positive factor in stimulating the packaging machinery business. It is expected that people will pay more attention to ergonomics, product safety and safety issues related to packaging machinery.
The potential impact of consumption trends on stimulating mechanical demand is evident in factors such as changes in population structure (particularly racial diversity and aging population), which have driven the specialization of products, the competition among various diet and nutrition theories, leading to a surge in new products, the increased expectations of consumers regarding the size and shape of packaging, and the growing demand for convenient foods (such as portable foods) by consumers.
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