IBIE - 2022 Special Edition & Show Preview - 12
IBIE PERSPECTIVE
be skewed by challenges facing many industrial
sectors during the worst phases of the COVID-19
pandemic, but in any event, there was plenty of
data demonstrating that the 12% productivity gain
over a two-year period still left the commercial
bakeries business lagging overall manufacturing
and by a wide margin.
At $315,000 of sales (value of shipments/
revenue) per production worker, productivity
of the commercial bakeries industry in 2020
was less than half of the $676,000 of sales per
over two years), the productivity of the typical
commercial bakeries worker would not reach the
current food manufacturing average of $676,000
until 2033. If food manufacturing productivity
were to continue improving at a rate of roughly
2.25% per year, it would not be until 2042 that
commercial bakeries were as efficient as the
overall food sector.
The productivity gap for bakery workers
compounds the challenges the industry already
faces filling positions both among production
Commercial bakeries showed wider productivity gains
than many segments of the manufacturing sector between 2018 and 2020.
production worker in food processing overall and
$644,000 for manufacturing overall. Commercial
bakeries also lagged the cookies/crackers industry,
at $511,000 and the $598,000 for the meat
processed from carcasses segment - a sector
often highlighted as excessively labor intensive.
Exacerbating the effects of the gaping
productivity deficit of the commercial bakeries
industry is the upward pressure on wages that has
emerged over the past year. Benefit costs also
continue to see upward pressure.
While the 12% productivity improvement
between 2018 and 2020 suggests that bakers
are taking steps to automate processes where
possible, more needs to be done ... and faster. At
a rate of roughly 6% improvement per year (12%
workers and supervisors. In the age of COVID, the
industry's reliance on a large workforce leaves
baking plants with greater susceptibility to shut
down production lines or even an entire plant in
the event of an outbreak of illness. Amid supply
chain challenges, bakers increasingly are exploring
increasing capacity of ingredient storage while
automating ingredient handling.
As bakers visit IBIE in 2022, they will evaluate
equipment investment options with a sharper eye
than ever on automation. Even as they carefully
seek opportunities to maximize near-term return on
investment, bakers also should be mindful of ways to
make more meaningful progress toward narrowing its
productivity deficit and reducing the vulnerabilities of
relying on such a large workforce.
*
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Connector Company
Products to minimize loss, clean-up, and costs.
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IBIE - 2022 Special Edition & Show Preview
Table of Contents for the Digital Edition of IBIE - 2022 Special Edition & Show Preview
IBIE - 2022 Special Edition & Show Preview - Intro
IBIE - 2022 Special Edition & Show Preview - FCa
IBIE - 2022 Special Edition & Show Preview - FCb
IBIE - 2022 Special Edition & Show Preview - 1
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