Cap Ex Survey: Positive outlook for 2011
January 11, 2011
by Dan Malovany
Bakers and snack manufacturers are overwhelmingly positive about the outlook for the industry in 2011, according to an exclusive survey on capital expenditures by Baking & Snack magazine. In addition, a greater number of companies report that their business improved in 2010 compared with 2009.
Specifically, 89% of those surveyed describe the general outlook for 2011 as “positive” for the industry. As the economy appears to be improving, so have many companies’ financial position. In fact, 42% of respondents said their company is “firmly in the black” and are “seeing no ill effects” in 2010 compared with only 26.5% of respondents in 2009.
Another 47% are “financially sound” but their profits took a hit in 2010. That compares to 61.1% who agreed with this sentiment in 2009. The increase in the number of companies that are “firmly in the black” along with a decrease in the percentage of companies whose profits have suffered indicates an overall strengthening of the industry.
Only 11% noted that their businesses were “unstable” and that “profits are turbulent these days.”
Check out our February 2011 issue for more exclusive information from Baking & Snack’s recently conducted survey of the industry.