Weak Start to 2021 for Food & Beverage Capital Spending Projects

The number of tracked facility projects in January were down considerably both month-to-month and year-over-year.

I Stock 905698298
iStock

Industrial and commercial market intelligence firm SalesLeads’ released its latest monthly report covering planned food & beverage construction projects in North America, showing that activity started 2021 on a weak note both month-to-month and year-over-year.

SalesLeads tracked 60 such food & beverage facility projects in January, down from 73 in December and down significantly from the 89 that were tracked in January 2020.

SalesLeads' recent annual report confirmed 872 new  food & beverage projects in 2020, down 9 percent from 2019. Only four months in 2020 — July, September, November and December — had more activity than in 2019 as the COVID-19 pandemic had an immense impact on capital spending plans across the entire manufacturing sector.

The firm’s January  recap is broken down as follows:

  • 59 projects were for processing facilities (59 in December, 69 in November, 59 in October)
  • 20 were for distribution and industrial warehouse (20 in December, 34 in November, 17 in October)
  • 23 were new construction projects (23 in December, 30 in November, 28 in October)
  • 21 were expansion projects (21 in December, 35 in November, 16 in October)
  • 33 projects entailed renovations and equipment upgrades (33 in December, 32 in November, 30 in October)
  • There were no plant closure projects (0 in December, 1 in November, 0 in October)
  • New York, Georgia, Indiana and Texas each had four tracked projects in January, while California, Alabama, Ohio, Florida, Wisconsin and Washington each had three.

I Stock 1176094666iStock

During January, SalesLeads identified three new food & beverage facility construction projects with an estimated value of at least $100 million — compared to two each in December and November and four in October. The largest January project is by Walmart, which plans to invest $800 million to build two distribution centers totaling 2 million square feet in Lancaster, TX.

The other largest food & beverage facility. construction projects SalesLeads identified in Janary included:

  • Specialty food products maker Maple Leaf Foods, which plans to invest $100 million for the renovation and equipment upgrades on a 118,000-square-foot processing facility in Indianapolis, IN.
  • Fishery Cooke Aquaculture, which plans to invest $59 million to build a processing facility in Digby Neck, Nova Scotia.
  • Poultry company Koch Foods, which plans to invest $16 million for the expansion and equipment upgrades on its processing facility in Gadsden, AL.
  • Beverage company Niagara Bottling, which plans to invest $12 million to build a 180,000-square-food warehouse and distribution facility in Mooresville, NC.
  • Food Bank of Lincoln, Inc., which plans to invest $10 million to build a 60,000-square-foot distribution center in Lincoln, NE.
  • Meat supplier Butterball, which plans to invest $9 million for the expansion and equipment upgrades of its processing facilities in Ozark, AR and Huntsville, AR.
  • Coca-Cola Bottling Company, which plans to invest $8 million to build a 24,000-square-foot warehouse and office facility in Panama City, FL. They will relocate regional operations upon completion in late 2021.
  • Produce supplier Maglio Companies, which is planning a renovation and equipment upgrades on a 78,000-square-foot processing, warehouse and office facility in Glendale, WI. An investment amount wasn't disclosed.
  • Sugar and sweetener processing company Sucro Sourcing, which plans to build a 45,000-square-foot processing facility in Lackawanna, NY. An investment amount wasn't disclosed.
  • Startup meat processing company Michigan Meats, which plans to build a 14,000-square-foot processing facility in Wayne, MI. An investment amount wasn't disclosed.

See our recap of SalesLeads’ December Food & Beverage facility capital spending projects here.

More in Capital Investment