Industry Featured Articles
Tuesday, November 20 2018
By Frank Spano, Managing Director and Kyle Johnson, Location Consultant, The Austin Company
The food and beverage industry in the United States has shown positive signs of expansion over the past ten years. Forecasts and growth models indicate this expansion will continue into the future, though possibly at a slower rate. The following factors may assist in explaining this upward trend:
One notable portion of the food and beverage industry, the baking and snack food industry, shines as an important segment of the U.S. economy with nine percent growth from 2007 to 2017. The following discussion examines this industry over the past ten years and makes general conclusions on its projected growth.
Tuesday, May 29 2018
By Jay Garner, President, Garner Economics LLC & Cyndi Dancy, director of research, Garner Economics LLC
Top Areas for the Food & Beverage Manufacturing Industry
More than 1.8 million people across the United States work in food and beverage manufacturing sectors as of June 2017, according to the Bureau of Labor Statistics. These two sectors show continual employment growth since 2010 with strong advancement in the past five years.
Looking Beyond the Site for Food and Beverage Expansion: How to Assess the Surrounding Community and Region
Wednesday, November 29 2017
By Frank Spano, Managing Director and Susan Riffle, Manager of Communications, the Austin Company
The food and beverage industry is enjoying a healthy growth spurt; the food products sector is among the fastest-growing of U.S. manufacturing, adding 95,000 jobs so far in 2017, representing a seven percent increase over the past five years. The U.S. beverage sector is also growing substantially, adding 66,000 jobs so far in 2017, representing an impressive 39 percent growth over the past five years.1
Along with such growth comes the need for expansion by manufacturers. With that expansion comes new facilities located in new communities and the generation of incremental jobs for those communities. Undoubtedly, the food and beverage industry holds a great deal of promise for regions and municipalities lucky enough to attract them. The competition is fierce, especially since the industry has rigorous criteria when defining site suitability. Site and property criteria determined to be important for the food and beverage sector was explored by Austin Consulting and published in the September/October 2017 edition of Expansion Solutions (http://bit.ly/shovelreadysites).
Thursday, June 01 2017
By Jay Garner, President, Garner Economics LLC
One thing is for certain, you can count on change being a dynamic influence in how food and beverage processors operate. Why? Because consumer preferences constantly evolve, and consumers drive food and beverage output.
Food and Beverage Facilities and Jobs by the Numbers
Food processing is defined by the North American Industry Classification System (NAICS) code of 311. Beverage manufacturing is comprised of code 312. Combined, this sector in 2016 had 41,046 processing facilities, employing 1,748,503 people in the U.S. (BLS).
California leads the U.S. with the most facilities and employment, primarily because of its strong farming output in the Central Valley.
Tuesday, November 22 2016
By Frank Spano, Managing Director and Susan Riffle, Manager of Communications, The Austin Company
Economic change affects all industries, but some are more recession-resistant than others. The food industry is a good example of that. Consumer habits may change due to the economy: restaurants are more popular during times of prosperity, home cooking is more appropriate when times are lean. In either case, the food industry is fueled by consistent consumer demand, although the nature of that demand is, more than ever, constantly in flux.
During May of 2015, the Bureau of Labor Statistics placed employment in the food processing sector at slightly under 1.5-million workers. Annual payroll during this period was approximately $57.5-billion dollars.
If these figures aren’t enough testament to the sector’s overall health, the industry itself proves to be very optimistic. According to the 2016 annual U.S. Food & Beverage Industry Study, released in June by WeiserMazars LLP, most food and beverage companies anticipate a significant increase in sales this year. Survey participants — drawn from over 200 companies across the food and beverage industry — are confident that sales will increase 14 percent compared to 2015, and project net profits will rise by 10 percent.1 That optimism has proven not unfounded: the latest industry figures from CSI Market cited net income in the food processing industry in the second quarter of 2016 as having improved by 53.95 percent over 2015, with quarter-over-quarter net income growth well above the manufacturing industry average.2
Monday, May 23 2016
Have there been any changes in food processing lately? Yes there has, big time!
Let’s look at my morning so far. After my walk, I prepared some green juice for my wife and me using our Breville juicer, as I do every day that I’m not traveling.
It makes about 12 ounces of delicious green juice that will absorb into your cells and become “life force energy” within about 15 minutes. It makes you feel energized and ready for the day!
I next had a bowl of cereal. I had recently bought some new gluten free multigrain Cheerios and low sugar Grape Nuts. I chose the Grape Nuts today and added some organic raspberries and blackberries followed by organic hemp milk. Delicious and healthy!
I started to think about shopping for these breakfast items. We recently shopped at:
Monday, November 30 2015
By Frank Spano, Managing Director and Susan Riffle, Communications Specialist of Austin Consulting
Food processors planning to expand or construct new processing facilities do so for a variety of reasons, including:
Once the decision is made to construct a facility, the company must determine the geography where operating costs are minimized for the new operation. Important considerations include labor and utility costs and availability, taxation policies, community characteristics, and potential assistance programs at the state and local level.
Considering an Existing Building
Wednesday, May 20 2015
By Jay Garner, CEcD, CCE, FM, HLM,
If there is such a thing as a recession-proof industry, the Food and Beverage (F&B) Industry is it. During good times and bad times, people eat and drink. Whether the economy is experiencing unprecedented growth or recession, folks continue to consume food and drink products. Some eat to live, while others live to eat. Some eat in, while others eat out. Today, the F&B Industry continues to expand and to evolve in order to meet the ever-changing demands of consumers.
In the United States 30,135 companies are defined as F&B process manufacturers (up by more than 1,500 companies since 2010). These businesses employ more than 1.4 million employees. However, a 47,000 decrease in employees since 2010 demonstrates how innovative manufacturing processes and automation can mean fewer jobs.