Study: Great Lakes region experiences highest number of new build projects
Poultry processing facilities in particular will likely see a series of expansions and upgrades.
The U.S. and Canadian food and beverage industry is expected to see "slow but stable" growth in 2016, following a period of strengthened investment in new build projects, according to Randy Godet, vice president of global research in the food and beverage industry for Industrial Info Resources, Sugar Land, Texas. Industrial Info is tracking more than $30 billion in project activity in the industry.
The dollar value of Grassroot construction kickoffs in the United States and Canada was "fairly consistent" from 2010-2013, says Godet, but began to climb considerably in 2014, as food manufacturers invested in new plant construction. In particular, the number of new plant construction more than doubled from 2013-2015.
However, 2016 may not see the same level of investment, as some sectors try to avoid over-saturation and individual manufacturers take a break from a long period of build-out.
The Great Lakes region, in particular, ranks highest in capital expenditures and the number of projects in the food and beverage industry. But, the Midwest, which is the bedrock of the U.S. agricultural sector, is not far behind, while Texas carries much of the growth in the Southwest.
The U.S. agricultural sector—which particularly important, as its growth reflects the record grain harvest seen over the past two years—is experiencing stronger business overseas, with more calls to export grain, especially to countries that are experiencing water shortages. Companies are also expanding their handling and processing capacities to meet the growing demand.
Furthermore, poultry processing facilities will likely see a series of expansions and upgrades.