Forecast 2026 (CONT’D FROM PAGE 30)
Board Converting NEWS INTERNET DIRECTORY
der many projects are being put on hold. “It’s hard to en- gage in cost savings when both materials and labor are becoming more expensive,” said Basu. “Too often, the pro formas don’t pencil out. Many manufacturers are respond- ing by not expanding their operations and trying to trim expenditures at the margins. They are focusing more on cash flow preservation by slowing hiring, and being less aggressive in leasing and purchasing equipment, particu- larly equipment impacted by tariff pricing.” This generalized business hesitation is evidenced in the numbers. “We look for business investment to increase by only 1.6 percent in 2026, after rising by 3 percent in 2025 3.6 percent in 2024,” said Yaros. Looking Ahead As we enter the early months of 2026, economists sug- gest that manufacturers watching these key economic in- dicators for an idea of how the year will turn out: • Employment: “I would pay close attention to the unem- ployment rate,” said Yaros. An unexpected decline in employment would spur faster interest rate cuts as the Fed seeks to reinforce economic expansion. • Consumer Spending: “How is the consumer faring?” poses Basu. “Bear in mind that many low and middle income people are exhausted financially. Indebtedness and delinquencies are up for credit cards, mortgages and loans.” • Inflation: “If we get stubbornly high inflation, that will prevent further progress on interest rate,” said Basu. Oxford Economics still expects the nation to avoid a re- cession, and the expected 2 percent GDP growth is right around the level economists peg as the nation’s “natural growth rate”—one that supports business activity, main- tains full employment, and avoids triggering inflation. Perhaps of even greater importance, though, is a lit- tle heralded threat to productivity. “One thing that sort of permeates the whole economic picture right now is the nation’s low population growth rate,” said Conerly. “Immi- gration is down, due to Trump administration policy. The next generation entering their working years is about the same size as the retiring boomers, so there will be no net growth in the labor force.” Responding to this trend, manufacturing companies will look for ways to maximize their return on labor by in- creasing output per worker, noted Conerly. “The focus of businesses in 2026 will be increasing productivity—not by whipping people harder, but by providing them with better tools, better training, and better first-level managers.”
THE HAIRE GROUP www.hairegroup.com
Haire Group is the premier provider of new machinery for the corrugated industry. From the Apstar line of flexo folder gluers and rotary die cutters, the Encore line of flexo folder gluers and rotary die cutters, and the Engico flexo folder glu- er, Haire is able to pair clients with the best machinery solu- tions for the best value to meet their needs. Haire Group’s service department helps its customers maximize uptime and profitability through superior 24/7 service and support, a pre-install training center, and over a million dollars’ worth of spare parts at their offices just outside of Chicago. Haire Group has been the industry’s #1 pre-owned machinery bro- ker and plant equipment appraiser since 1976. HarperLove is the leading provider of specialty adhesives, performance additives, and wet-strength resins to corru- gated packaging manufacturers. With the largest and most experienced field service and technical support team posi- tioned throughout the U.S. and Latin America, HarperLove has a long-standing reputation for providing outstanding service and delivering demonstrable performance improve- ments. HarperLove’s renowned services include not only innovative product development and custom product for- mulation, but also machine and process assessments, ad- hesive formula adjustments, machine tuning, detailed ser- vice reporting, and more. HARPERLOVE www.HarperLove.com Kernic Systems has been a leading global provider of re- cycling equipment solutions since 1978. For over 40 years, Kernic Systems has provided balers, air conveying and dust collection systems, shredders, industrial vacuums, and re- cycling equipment to a wide range of markets. Today, Ker- nic Systems serves customers with an expanded offering of standard products and custom-engineered systems through three primary business divisions: Recycling Solu- tions, Dust Collection and Air Pollution Control, and Material Handling. Kiwiplan provides state-of-the-art software solutions to cor- rugated, folding carton, plastics and flexible packaging fa- cilities around the globe. Kiwiplan’s Total Solution delivers comprehensive, seamless real-time flow of information from sales order management to dynamic total plant scheduling and inventory control through shipping. With deep manu- facturing and distribution expertise, Kiwiplan knows the specific problems customers face and provides the spe- cialized software they need to adapt, compete, and win in today's rapidly changing world. KERNIC SYSTEMS www.kernicsystems.com KIWIPLAN www.kiwiplan.com
www.boardconvertingnews.com Phillip M. Perry is an award-win- ning freelance writer and a reg- ular contributor to Board Con- verting News. His byline has appeared over 3,000 times in the nation’s business press. He can be reached at linkedin.com/in/ phillipmperry/.
32
November 3, 2025
Made with FlippingBook. PDF to flipbook with ease