AEK Packaging’s New Warehouse a Sign of Economic Recovery

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Packaging Equipment Company Expands as U.S. Equipment Spending Experiences Upswing

KC Christensen explains the operation of a Pharmaceutical Case Packer during an inspection in AEK Packaging’s new warehouse.

Our customers have been able to stretch their capital and find great value with our used equipment inventory, which generally runs 50 to 60 percent less than the cost of new equipment.

When AEK Packaging opened a new 55,000 square foot climate-controlled warehouse in Bensenville, Ill. last year, its expansion effort went against the grain of most business trends. At that time, only 13 percent of manufacturers indicated to PricewaterhouseCoopers LLC that they had plans to expand their business geographically. What’s more, the dealer of used packaging equipment débuted the new storage facility in style, nearly doubling the size of its previous location in Elkhorn, Wisconsin. As it turns out, that leap of business faith couldn’t have been a timelier decision.

According to a November 2009 Associated Press article, U.S. “companies [were] starting to spend on equipment.” That upswing in third-quarter spending on equipment purchases may have been a small one, but it was the first of its kind in nearly two years. It also foreboded optimism in overall economic recovery. As the article pointed out, “When businesses spend more on equipment, jobs can eventually be created at companies that make the machines and the parts that go into them.”

Indeed, chief investment strategist Edward Yardeni predicted that businesses would “boost their spending on capital equipment at around a 10 percent annualized rate in the current October-to-December quarter.” Because it had already opened an expanded the new packaging equipment center, AEK Packaging was poised to meet this newfound demand and, in the process, help jumpstart that long-awaited financial comeback.

While the increased spending indicated that “some businesses managed to save enough during the recession to spend more now … others can’t get loans to expand their plants and instead must upgrade the equipment they have.” Because the company carries both new and used packaging equipment, AEK Packaging caters to businesses that fall into either category by having equipment that is immediately available for shipment at very competitive prices.

AEK Packaging joins together the financial resources and global reach of Aaron Equipment Company, Inc. and the equipment expertise of Kendell Equipment, two firms that bring nearly a century of combined history to the merger. The company’s inventory contains the best-quality packaging machinery from the aerosol, beverage, bakery, chemical, contract packaging, cosmetic, food and pharmaceutical industries. The central location of AEK Packaging’s new warehouse – just outside of Chicago’s O’Hare International Airport – makes it easier for out-of-state and international customers to inspect equipment before purchasing it.

KC Christensen, founder of Kendell Equipment and who will head up AEK Packaging, attributes much of the company’s success to its diverse inventory and competitive prices. “Although some companies are loosening their purse strings many corporate budgets are still tight. Our customers have been able to stretch their capital and find great value with our used equipment inventory, which generally runs 50 to 60 percent less than the cost of new equipment. For customers with no capital budget, we have been able to provide short-term monthly equipment rentals that they can expense from their operating budgets.”

Businesses owners who would like to ensure they’re part of this equipment spending renaissance can learn more about AEK Packaging’s used packaging equipment online at http://www.aekpack.com. Interested media may arrange a company interview by calling (630) 238-2660.

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