Snack World - February 2011 - (Page 22)

Exclusive Survey Capital Spending Rebounds BY DAN MALOVANY nce in a while, a little optimism isn’t a bad thing. After a global meltdown, a financial market collapse, two years of tough economic sledding, protracted declining housing prices, unprecedented high unemployment and continued uncertainly about the future, a little good news and a change in sentiment might be a welcome change for the baking and snack industries. Last year, Baking & Snack’s annual capital spending survey anticipated a rebound in spending in 2011, and that’s exactly what’s expected to happen this year. Bakers and snack producers indicated E Q U IPM ENT EQU I P M E N T Annual survey projects capital spending to jump significantly to near pre-recession levels as optimism, albeit cautious, abounds. O that they’re stepping up their capital investments, but they also wanted a shorter return on investment. If the projections hold out, bakers will turn out to have been doing a lot more than window shopping during IBIE 2010 in Las Vegas. Those are the top-line conclusions from Baking & Snack’s recently concluded capital spending survey conducted by Cypress Research Associates, Kansas City, MO. Perhaps most significantly, 58% of baking and snack company executives who responded to the survey indicated that their businesses will increase their 2011 capital spending budgets compared with 2010’s real spending. Moreover, capital spending budgets are projected to rise an average of 56% in 2011, compared with what companies spent in 2010, according to the survey. While overall spending is projected to increase significantly, don’t expect 2011 to be a total “breakout year” with unbridled enthusiasm, according to Marjorie Troxel Hellmer, president of Cypress Research Associates, which conducted the survey in November. Although nearly 90% of executives reported a positive industry outlook for 2011, she described the executives as having “cautious optimism.” Granted, many signs point to an improving economy and increasing customer 22 Snack World February 2011 www.sfa.org http://www.sfa.org

Table of Contents for the Digital Edition of Snack World - February 2011

Snack World - February 2011
Letter from SFA - See You at SNAXPO
Rudolph Foods receives level 2 SQF certifi cation
Popcorn, Indiana launches chip’ins to commemorate National Popcorn Day
Better Made Snack Foods makes key promotions
Dawn of a New Era
In a Nutshell
Snyder’s-Lance becomes powerhouse snack company
Snack Sessions
Focus on the Future
Capital Spending Rebounds
New Snacks
Products & Services
Ad Index

Snack World - February 2011