Upbeat growth prospects energize the food and beverage industry

Optimism permeates the food and beverage industry, according to Food Processing magazine’s 2015 Manufacturing Trends Survey. From confi dence about the future to increased capital spending, the outlook is bright and focused on growth. Here are the key fi ndings shaping the food and beverage industry this year and the strategies you need to ride the optimism wave in a balanced, effective way.

14th Annual Food and Beverage Manufacturing Trends Survey

Bright outlook to boost spending, hiring plans

Food safety tops concernsFood safety is still the No. 1 issue, but less salient than in 2014 (51% vs. 59%).

In 2015, food and beverage companies are more likely to:

Plans to automate the entire production line have more than doubled compared with 2014 (29% vs. 12%).

Steady focus on sustainability, energy conservation

Eyes are back on automation, performance improvement

Companies gear up to fi nd skilled talent

About the surveyThe 2015 survey is based on responses from 177 Food Processing magazine readers collected in October–November 2014. Respondents represent a wide spectrum of food processing sectors, with the greatest concentration (13%) in meat/poultry/seafood, followed by baked goods, further processed and specialty foods, and confectionery and snack foods. About 80% of respondents represent companies with headcounts of less than 500.

are optimistic about 2015

Top 5 safety and sanitation practices

Operations and packaging automation are also targeted in 2015

More companies are using total quality management to improve performance than in 2014 (30% vs. 24%).

Compared with 2014, fewer companies report relying on

Many companies still rely on staff suggestions for improvement.

to improve quality and performance in 2015

76%

are planning to hire new staff

36%are planning to increase capital

spending

46%

Employee training

Third-partycertifi cation

HACCPplan

Improved pest control

program

Improved sanitary

equipment

1 in 3 companies say green initiatives are more important in 2015 than in 2014.

1 in 3 companies will partner with community colleges and participate in

campus recruitment to boost hiring efforts.

up sharply from 67% in 2014

up from 31% in 2014

up sharply from 37% in 2014

23%Operations

2015 2014

16% 44% increase

Packaging 14% increase40% 35% OEE data 5 sigma

Lean manufacturing

Value stream mapping

6-year trends on 5 key indicatorsOptimism brightens up food and beverage industry’s expectations for 2015

OptimismCapital spending increase

80

70

60

50

40

30

20

10

Perc

enta

ge

2010 2011 2012 2013 2014 2015

“Companies are reinventing themselves and how they engage consumers; they have

uncorked innovation that they have kept bottled up for the last several years.”

— Dexter Manning, Food and Beverage

Practice Leader

“No one can be sustainable on an

island. Education of stakeholders is job one for companies moving

toward sustainable business practices.”

— Dexter Manning

73% 41% 40%

48%

38% 34%

“We see more and more companies asking their staff to weigh in on

product manufacturing and innovation. That’s because people want to work for a company where they can truly make a difference.”

— Jeff Pera, Partner

Expand in-house technical training

Hire more line operators for

semiautomated tasks

Outsource more job functions

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Production growthPlanning for green initiatives

Hiring new staff

Reductions in electricity usage

Effi cient lighting Energy usage monitoring

39% 18%29%

Least popular energy conservation strategies

Alternative fuels Long-term agreements with renewable

energy providers

Holding back on natural gas effi ciencies

8% 9%6%

Top 3 energy management strategies

Compared with 2014, more than twice as

many companies report IFS food certifi cation in

2015 (18% vs. 7%).