The strength of the industry may be seen in companies like Pita Bread Factory. During the past two years, the Canadian baker consolidated production of its fresh and frozen pita bread, tortillas, bagels, naan, cookies and pies under one roof in Burnaby, B.C.
“New customers and new products will drive our spending plans in 2014,” said Sid Hayek, operations manager. “And in 2014, we’re going to continue to drive growth in our existing lines with existing and new customers. In the next three years, we'll look at further building expansions. With the focus on tactical investing and partnering with customers, many capital spending budgets are sketched in stone. Nimble companies, however, need to be proactive in the market, especially if they are contract manufacturers or private label producers. Currently, we have 75,000 sq ft in our facility, and we can expand into a warehousing space that is next to us by just tearing down a wall we will have access to another 50,000 sq ft.
“If plans work out with our developing interests, we’ll be installing a completely new line — production and packaging. We would be making these investments to support new products for existing and new customers. If these plans do not work out, we'll hold to the same levels as in 2013, 1% of sales, for purchasing smaller machinery or smaller production lines.”