Phoenix Leasing Program

FINANCE YOUR STRETCH WRAPPING EQUIPMENT TO INCREASE YOUR CASH FLOW!
To create high returns, efficiency is paramount, and to maximize your productivity you need high efficiency equipment. The higher the efficiency, the more product your company can produce, which will result in more profit for you! However, if your budget doesn't allow you to purchase new equipment, financing your new stretch wrapping equipment is a quick and sure way to increase your cash flow while acquiring the equipment your company needs to stay ahead of the game. Conserve the capital you have for payroll, misc expenses, and utilities!

CALCULATE YOUR MONTHLY PAYMENTS IN MINUTES!
Instantly generate a customized financing proposal for the equipment under consideration. Automatically calculate monthly payments for 12 to 60 month terms

PACK EXPO LAS VEGAS: PHOENIX

Phoenix/CAPS will be exhibiting at the Las Vegas Pack Expo show Oct 5-6-7 Booth 4016 located in the Central Hall will be our home for the 3 day event and we look forward to talking with current and future distributors about our abilitlies and market plans, We look forward to meeting with you then!

PHOENIX BUCKS THE DOWNWARD TREND ORDERS UP SIGNIFICANTLY IN 1ST QUARTER '09?

Phoenix/CAPS is well aware of the difficult times being had by all in the packaging industry and we are not immune. However, our approach to business has allowed us to continue to grow despite the financial downturn. Phoenix/CAPS increased sales by 20% in the first 4 months of 2009. Sales volume in semi-automatic and fully automatic machines were up equally during that period.

These increases are even more impressive when you consider the secondary effects of this economy. With the daily announcements of companies shutting down facilities or downsizing plants, used packaging machinery is flooding the market due to these closings. Thus not only is there a reduced market, but this used equipment which is priced to sell, has caused downward pressure on prices. A large amount of this used equipment has now been absorbed by the market and should help with margins and sales volumes moving forward.

There is no question that our success with our growing distributor network is playing a large role in these increases in sales. Distribution worldwide has continued to expand at a very solid pace. We are proud of these growing relationships and take them seriously. Thank you for your growing support and we will continue our commitment to supporting our distributors, before, during, and after the sale.
For more information concerning our distributor program.

MANY PACKAGING COMPANIES STILL SEE RED

PACKAGING MARKETS REPORTING DIFFICULT TIMES IN 1ST QTR '09!

For most equipment manufacturers the start of 2009 has been a continuation of an extremely difficult 4th quarter. The economic downturn has been tough on most and cruel to many. Some manufacturers have simply folded, while others are restructuring or slashing spending to help get through this difficult period. Weak consumer demand for goods is reducing the immediate need to purchase new packaging equipment, and the ones that are looking for new machinery are having more trouble getting financing for these capital expenditures. The result is that for packaging equipment manufacturers 25% to 50% lower 1st quarter yr-over-yr sales results are very common in the packaging industry. As an example, here are a couple of publicly traded packaging companies and the difficulties they are reporting in their most recent financial reports.

KRONES INC.:
Krones Inc., the large Equipment Systems provider, recently announced that sales orders for the first quarter of 09 were down 32% with sales revenues down 19%. In fact Krones also warned that customers are wary about investing in new equipment and those that are investing are having a difficult time getting financing from the financial markets for their projects. They have announced the termination of 800 temporary and contract workers for this year. They do not rule out the potential that 09 results could be negative.
Read Krones interim report for the 1st Qtr. 2009 here

MJ MAILLIS:
MJ Maillis Group, which manufactures strap, tape, shrink, and stretch wrapping equipment and materials, reported an after tax loss of 42.9 Million Euro($59 million USD) last year (ending Dec 31,2008), compared to a loss of 36 million Euro in 2007. They mention in their report that the last 4 months of 2008 were very difficult (sales down 27.6% year over year in 4th qtr) and it would continue in the first quarter this year. They were anticipating a bottom in the negative sales trend in qtr 1 of this year with a reversal happening after that. They noted that layoffs were made across the board including at their Wulftec stretch and strap equipment manufacturing facility in Canada.
Read MJ Maillis 2008 financial performance here

XPEDX:
Difficult times are not restricted to the manufacturers. Distributors are feeling the heat also. International Paper noted in its 1st quarter earnings report that its wholly owned distribution business, XPEDX, reported an operating loss of $7 million, down from the $26 million gain posted in the fourth quarter of 2008. Weakened paper and packaging volumes and lower margins were partly offset by favorable cost reductions.
Read International Paper First-Quarter Earnings Report here

PHOENIX/CAPS INTRODUCES NEW MIDWEST REGIONAL REP.

Phoenix is excited to announce the appointment of Mr. John Darby as the regional rep for the Midwest territory. John has been in the stretch packaging industry for more than 23 years and will be a wealth of stretch wrapping knowledge for our distribution group.

While managing this territory John will also be providing valuable input to current improvement projects to the distributor support system.

"Phoenix/CAPS has a simple game plan." John explained "Provide distribution with a quality machine with outstanding technical sales support. They are doing a great job of it and I hope to add to that."

John noted "What strikes me is the passion. It reminds me of the good old days, the way they approach everything with enthusiasm, its infectious. We are going to surprise a lot of people. Phoenix/CAPS are making bold statements and are doing it very quietly. It won't stay quiet for long."

Graham Nicholson, president of CAPS said "John's experience matches perfectly with our product management approach to supporting our distribution group. We want to be able to provide our distributors with quick answers to technical applications that they can not get from anyone else. John will help support this approach. We are excited to be able to add John's experience and our distributors will be the winners."
"Yes, times are difficult. However, our focused approach to supporting distributors will allow us to continue to grow sales. When the markets improve we will be positioned with our distributors for explosive growth, and we will be ready."

PHOENIX Continues With Growth Plan In 2009

Successful Product Launches And Improving Distribution Network Drive Success!

Firmly Settled Into Our New 50,000 Sq. Ft. Facility, Phoenix Continues To Broaden Its Product Line And Manufacturing Capability

While other companies shrink or lock down the hatches to ride out this economic storm, Phoenix/CAPS continues on its growth plan set up 18 months ago. Expanding our stretch packaging product line, increasing our manufacturing capability, and rolling out our distributor program continues to be our focus moving forward in 2009.

While competitors try to boost sales by switching their focus and watering down their engineering and R&D departments to focus on different products like strapping equipment, case erectors, palletizers or shrink machines, Phoenix has stayed focused on stretch packaging equipment. It is because of this focus that Phoenix can adapt their product line to meet the customer's application instead of asking the customer to adapt his application to meet a standard machine like many competitor's attempt to do.

With approx 40,000 sq. ft of manufacturing space now in full operation and another 10,000 sq ft of engineering and office space we are well positioned to meet the demands of a growing distribution group.

We know it isn't about us. Growth comes with a quality distributor network. If we support our distributors by meeting their customer's requirements with quality equipment and at a competitive price, then they will be succesful. If our distributors are successful, then Phoenix is successful. Being pro-active in creating opportunities for our distributors is critical during these difficult times. We are growing our distributors sales during this tough economic period and we will be ready for explosive growth when the economy catches its breath. Rest assured, Phoenix will be ready when it does.

Stretch Film Waste - How You Can Cut Your Stretch Film Bill

You are probably throwing more than 50% of your stretch film out the door without even knowing it. More than 75% of stretch wrap equipment we have tested is performing below acceptable levels, resulting in tens of thousands of dollars in wasted stretch film
Did you know that proper prestretching of the film is required to change the stretch film properties that create the Film Force, Film Tension, and Film Strength required to hold your product together during shipping?
Without this, the stretch film cannot perform the task required. Just because a stretch wrap machine is running does not mean it is working. Although it might be applying stretch film to the load, that doesn't mean it is prestretching the stretch film and creating all the properties in the stretch film required to hold your pallet together during transport. We provide a simple on-line tool that can test the efficiency of your stretch wrapper, you can find the " stretch film efficency test tool here"