Baking construction back on the upswing

by Dan Malovany
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After some years of declining construction activity within the baking and snack industries, the number of projects increased this year for the first time since 2010, which, by the way, was the last time the International Baking Industry Exposition was held. However, the 93 significant projects announced in Baking & Snack’s 2013 construction report as completed or are currently under way within the past 18 months still fell short of the 111 mentioned just three years ago.  Even so, adding bricks and mortar within the baking and snack sectors once again appears to be on an upswing as this year’s report includes 10 more projects than were listed last year and is nearly on par with the 95 mentioned in 2011.

And the activity far outpaces 2009 during the Great Recession, when a mere 75 projects were cited. The building boom may not be as big as 2010, but many bakeries appear to be making capital investments to add volume while improving overall efficiency and lowering operating costs. In this year’s report, construction activity totaled more than $1.3 billion, a jump of more than $300 million from last year’s report. That’s an optimistic thought as Baking Expo approaches.
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