Is now the right time to buy new tissue equipment?
Tissue converters, like any other product manufacturer, must keep current on equipment in order to remain competitive and efficiently meet customer demand. Doing so generally requires a substantial investment that is carefully considered from all business angles before being made. The global COVID-19 pandemic introduces another layer of deliberation: Will increased tissue consumption continue or reach its peak? Will supply chain disruptions become less or more severe? How might employment volatility affect the future?
Questions abound, but that shouldn’t dissuade tissue converters from investing in equipment. In fact, it may be an opportune time to make a purchase.
Tissue demand
Tissue products are considered essential in developed countries. Toilet tissue consumption, for example, consistently pushes production to its limits — and often beyond. What’s more, COVID-19 concerns have caused e-commerce sales of toilet paper to increase 190% year-over-year in the United States alone. 1 How long that level of demand continues into the future remains to be seen, but it does support equipment replacement in the present since older converting equipment can’t necessarily keep pace.
Increased productivity is only one benefit of new equipment. Return on investment is realized through:
- Lower maintenance and operational costs
- Higher quality products
- Great flexibility in product changeover
- Less required operator training due to user-friendly control panels
- Advanced connectivity that leverages technology for remote assistance, virtual audits, and data collection/OEE improvement
Conversely, the peak of tissue consumption may be well in the future — if at all — for developing countries. According to the World Health Organization (WHO), the COVID-19 pandemic has challenged unsanitary cleaning and personal care practices in favor of using tissue products. Since an estimated 2 billion people in developing countries may be impacted by the transition, investing in new equipment to serve these regions will likely generate a rapid return on investment.2 Tissue market growth will also likely happen as a result of increased consumer awareness.
Equipment demand
Persuasive arguments for buying new equipment often compel swift action. Traditional purchases, however, could mean lead times of 7 to 8 months for a medium-level converting line, and 10-12 month for high-level lines. Backlogs could further bog down timelines, which might cause tissue converters to miss key opportunities.
It’s a dilemma Valmet address with quick-delivery tissue converting, packaging, and folded equipment that can be delivered anywhere in the world in as little as 3 to 4 months or even sooner, depending if customization is required. The Valmet Equipment Showcase details available machines and lines.
Fast procurement and delivery of spare parts is also very important because it minimizes downtime. The Valmet Spares Online webshop provides access to over 80,000 OEM spare parts that are readily available for purchase and delivery.
Quick-delivery options mean you can almost immediately capitalize on:
- Time to market.
- Current tissue market opportunities.
- Accelerated return on investment.
Being proactive about equipment purchases, even during uncertain times, isn’t a business risk if you choose a partner that is a leader in innovative solutions. Learn more about Valmet worldwide quick delivery by visiting the Equipment Showcase.
SOURCES
1Visual Capitalist, The Pandemic Economy: What Are Shoppers Buying Online During COVID-19?, April 8, 2020
2World Health Organization, Sanitation (fact sheet), June 14, 2019