Number of New Food & Bev Facility Projects Holds Steady in August

I Stock 1136712102

A new report by industrial and commercial market intelligence firm SalesLeads found the number of planned North American food and beverage facility projects had continued solid activity during August, indicating that the capital spending in food manufacturing — at least among large firms — was only temporarily set back by pandemic impacts.

SalesLeads' monthly report tracking new such projects in North America showed 74 of them during the month of August, down slightly from July’s 77 but up from 59, 67 and 64 in June, May and April, respectively.

I Stock 1136712102iStockThe firm’s August recap is broken down as follows:

  • 55 projects were for processing facilities (57 in July, 43 in June, 39 in May, 42 in April, 43 in March)
  • 33 were for distribution and industrial warehouse (21 in July, 20 in June, 20 in May, 24 in April, 26 in March)
  • 29 were new construction projects (30 in July, 17 in June, 19 in May, 15 in April, 18 in March)
  • 24 were expansion projects (23 in July, 19 in June, 17 in May, 16 in April, 17 in March)
  • 32 projects entailed renovations and equipment upgrades (35 in July, 27 in June, 32 in May, 34 in April, 27 in March)
  • There no plant closure projects (1 each in July, June, May and April; 4 in March)
  • California led all US states with nine planned food & bev projects. Texas had seven, North Carolina had six, New York had five and Georgia had four, followed by the foursome of Idaho, Ohio, Colorado and Wisconsin with three apiece and Oregon with two.

I Stock 1203595271 (1)iStockDuring August, SalesLeads identified two new food & beverage facility construction projects with an estimated value of at least $100 million, compared to five in July, two in June and one in May. In April, the largest project identified was valued at only $60 million.

The largest August project comes from meat producer and processing company Plumrose USA, which is considering investing $200 million to build a processing facility that it is seeking a site for in Colorado.

The other largest food & bev. construction projects SalesLeads identified in August included:

  • General Mills, which plans to invest $37 million for renovation and equipment upgrades at its processing facility in Cedar Rapids, IA.
  • Food ingredient maker GNT USA, which plans to invest $30 million to build a 260,000-square-foot processing facility in Gastonia, NC.
  • Kellogg Company, which plans to invest $43 million for a 10,000-square-foot expansion and equipment upgrades on their processing facility in Zanesville, OH.
  • HelloFresh, which is planning a renovation and equipment upgrades on its 209,000-square-foot distribution center in Newnan, GA.
  • Produce supplier Greenswell Growers, which plans to invest $17 million to build a processing facility in Goochland, VA.
  • Aurora Organic Dairy, which plans to invest $6 million to build a processing facility in Holyoke, CO.
  • Atlantic Seafood Company, which plans to build a 62,500-square-foot refrigerated warehouse and storage facility in Holly Ridge, NC.
  • Agri Beef Company, which plans to build a processing facility in Jerome, ID.
More in Capital Investment