Bakers plan to invest 56% more in 2011

by Dan Malovany
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In 2011, bakers and snack manufacturers will spend an average of 56% more than they spent in 2010 on capital investments, according to Baking & Snack’s exclusive 18th Annual Capital Spending survey. Among companies that have $25 million or more in annual revenue, 63% will be increasing their budgets this year over 2010. That’s good news for equipment vendors.

The survey, conducted in November, indicated that executives predominately plan to invest in processing and packaging equipment this year. In fact, 88% of respondents noted they plan to buy new processing equipment while 82% will buy new packaging equipment.

Naturally, companies with $25 million or more in annual sales tend to invest a greater amount in capital projects primarily because of the size of their company, cash flow available and ability to borrow at historically low rates. Smaller companies tend to spend significantly less, often less than $1 million.

After the successful IBIE 2010 exhibition in Las Vegas, the survey subsequently indicated that many baking and snack companies were doing a lot more than window shopping at the show.
Check out our February 2011 issue for more exclusive information from Baking & Snack’s survey. In addition, keep reading Baking & Snack’s Operations Update for exclusive information from our editors in the industry.

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