After several lackluster months of activity this past spring, the pace of food & beverage manufacturing facility projects has rebounded to a solid clip in June and July, with data from industrial and commercial market intelligence firm SalesLeads showing that this past month was the best of the year so far.
SalesLeads, which tracks investment project activity for facilities across numerous verticals, including food & beverage, said that it tracked 72 such food & bev. facility project announcements in July, covering plans for new facilities or upgrades to existing ones. That's up from 70 projects in June and a considerable improvement from 56 and 61 in May and April, respectively. The year started with 60 projects in January and 70 in both February and March.
SalesLeads tracked an average of 72.7 projects per month during 2020.
SalesLeads' July recap was broken down as follows:
- 51 projects were for processing facilities (53 in June, 42 in May)
- 28 were for distribution and industrial warehouse (23 in June, 16 in May)
- 26 were new construction projects (28 in June, 23 in May)
- 18 were expansion projects (24 in June, 9 in May)
- 28 projects entailed renovations and equipment upgrades (26 in June, 26 in May)
- 0 projects were for a plant closure (1 in June, 1 in May)
- New York led all US states with eight planned food & beverage facility projects, followed by California with seven and Illinois with five. Tennessee, Pennslyvania, Texas and Washington each had four; Massachusetts and South Carolina had three apiece; and Virginia had two.
During July, SalesLeads identified five new food & beverage facility construction projects with an estimated value of at least $100 million — identical to June and May. The largest tracked food & beverage July project announcement was from Red Bull North America, which plans to spend $740 million to build a 2 million-square-foot processing and distribution facility in Concord, NC. They have recently received approval for the project.
The other largest food & beverage facility construction projects SalesLeads identified in July included:
- Dairy cooperative Dairgold, which plans to spend $500 million to build a 400,000-square-foot processing facility in Port of Pasco, WA. Completion is slated for 2023.
- Pet food maker Nestle Purina Petcare, which plans to spend $182 million on the expansion of their warehouse and production facility in King William, VA by 138,000 square feet. Completion is slated for late 2023.
- iStockCoca-Cola Bottling Company, which plans to spend $15 million on the expansion, renovation and equipment upgrades at their warehouse and office facility in Lafayette, LA. Renovations are expected to start in early 2022, with completion slated for summer 2023.
- Performance Foodservice, which plans to spend $11 million on the expansion and equipment upgrades on their warehouse and distribution facility in Florence, SC. Completion is slated for spring 2022.
- Specialty food products maker Deli Star Corporation, which is planning a renovation and equipment upgrades on a 104,000-square-foot processing and office facility in St. Louis, MO. Completion is slated for early 2022.
- Speciality food products maker Kens Foods, which plans to expand their warehouse in Southborough, MA by 63,000 square feet.
- Nutritional supplement maker Biotics Research Corporation, which plans to spend $9 million to build an 88,000-square-foot warehouse, laboratory and office facility in Rosenberg, TX. Completion is slated for 2023.
- Specialty food products maker General Assembly Holdings, which is planning a renovation and equipment upgrades on a recently-leased 42,000-square-foot processing facility in Vaughan, Ontario. Completion is slated for 2022.
- Fresh produce company Valley Garlic, who ch plans to expand their cold storage warehouse in Coalinga, CA by 31,000 square feet.
- Agricultural products supplier United Cooperative, which plans to build a 36,000-square-foot warehouse in Beaver Dam, WI.