Baking&Snack - February 2012 - 26

CAPITAL SPENDING SURVEY

one to two or three years — and they know what they’re spending it on,” Ms. Troxel Hellmer noted. “Companies are keeping an eye on their budgets much more so than in the past. Still, if they have it in their budgets, they’re going to spend it.”

No rose-tinted glasses
While the overall economy may be in the dumps in many parts of

the country, nearly everyone surveyed remained much more optimistic about the industry as a whole. In fact, a whopping 93% of respondents had a positive outlook for the industry in 2012, even higher than the 89% who said so last year. “They’re positive about the industry, but not necessarily the economy,” Ms. Troxel Hellmer said.

How do you describe your company’s financial position in today’s economy?
Firmly in the black: We’re seeing no ill effects.

15%

Financially sound: Our profits have taken a hit, but we’re on solid ground. Unstable: Our profits are turbulent these days. In the red: Our net income continues to trend downward.

70%

15%

0%

Methodology targets wide sample

In addition to an online survey, Cypress Research Associates, Kansas City, MO, called many of the leading companies in the industry to urge them to participate in 19th Annual Capital Spending Survey. As a result, this year’s survey skewed toward a broader array of companies than previously, including a greater number of those with $500 million or more in sales as well as midrange and smaller businesses. Demographic information indicated only 30% of respondents worked for companies that had annual revenues of less than $25 million. Another 32% of survey respondents worked for companies that had $25 million to $99.9 million, 15% of them had $100 million to $499.9 million, and 23% had $500 million or more in annual sales. Of the plants represented by 2012 respondents, 80% produced fully baked or par-baked bread and buns; 23% salted snacks; 30% cakes or sweet goods; 33% cookies and crackers; 18% frozen dough; 13% tortillas; and 27% other products such as waffles, wafers, cereal bars, pizza and mixes.

That optimism is tempered by the business environment where rising costs persist and passing on pricing can be a tricky proposition. In fact, 70% of those surveyed stated that their companies are financially sound, but their profits took a hit during the past year. Another 15% said their companies are firmly in the black while 15% suggested their companies are unstable and that profits are turbulent at this time. From a macroeconomic perspective, the economy seems better, but it’s not without significant soft spots, said Scott Smith, president, Shearer’s Foods, Brewster, OH, one of several industry veterans interviewed by Cypress Research Associates for this report. “Consumer demand is weaker, and we have continued pressure from commodity prices,” he observed. “Equipment suppliers, though, are still busy, and people are buying for their plants. Companies are finding a way to keep growing their businesses. Our industry is generally better than many other parts of the economy. It’s not a lot better, but it’s not a lot worse either.” Alon Ozery, partner, Ozery Bakery, Toronto, ON, noted the overall economy seems to have gotten worse than in the past and will continue to falter. However, he added, the outlook isn’t dire for many food industry sectors. Although consumers aren’t eating out as much in food service establishments as in the past, they’re spending on competitively priced, value-added products in the retail channel. “Through the lens of the industry, it’s about the same as last year and will get better,” he said. John Anthony Orlando, vicepresident of operations, Orlando Baking Co., Cleveland, OH, also described the operating environment as a mixed bag. “Business is increasing, and ingredients [prices] are going up,” he said. “It’s improved

26

/ Baking & Snack / February 2012

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Baking&Snack - February 2012

Table of Contents for the Digital Edition of Baking&Snack - February 2012

Baking&Snack - February 2012
Table of Contents
Table of Contents
Editorial - Fresh start to 2012
Newsfront - Canada Bread sets ambitious goals in 2012
Newsfront - Hostess Brands files for bankruptcy again
In Brief
News - ASB selects four to 2012 Hall of Fame
News - Kraft to reduce workforce as part of realignment
News - GMA director to lead new food safety alliance
In Brief
News - Whole Grains Summit aims at whole world
News - FTRAC convenes with ARS in Boston
In Brief
Correction and Clarification
People
In Memoriam
Right on Track
Back on Track
Industry Insight - Managing Valued Assets
Going Lean, Cutting Waste
Breakfast Trends - Keeping Breakfast in Balance
Botanicals - Extracts with Benefits
Probiotics - Working with Probiotics
Ingredient App - Vanilla Upgraded
Regulatory Q&A - Better Safe than Sorry
Oven Technology - Ability with Agility
Pan Management - Automating Pan Handling
In Recovery Mode
From Pan to Hearth
Food Safety Q&A
ABA FTRAC Q&A
Course Preview - Getting Ahead of the Learning Curve
Events
Innovations
Ingredient News
Products & Packaging
Patents
New on the Shelf
Marketplace
Ad Index
New Product Spotlight - Superfruits to the Rescue
Baking&Snack - February 2012 - Baking&Snack - February 2012
Baking&Snack - February 2012 - 2
Baking&Snack - February 2012 - 3
Baking&Snack - February 2012 - 4
Baking&Snack - February 2012 - 5
Baking&Snack - February 2012 - 6
Baking&Snack - February 2012 - 7
Baking&Snack - February 2012 - 8
Baking&Snack - February 2012 - Table of Contents
Baking&Snack - February 2012 - 10
Baking&Snack - February 2012 - Table of Contents
Baking&Snack - February 2012 - Editorial - Fresh start to 2012
Baking&Snack - February 2012 - 13
Baking&Snack - February 2012 - 14
Baking&Snack - February 2012 - 15
Baking&Snack - February 2012 - Newsfront - Canada Bread sets ambitious goals in 2012
Baking&Snack - February 2012 - In Brief
Baking&Snack - February 2012 - News - ASB selects four to 2012 Hall of Fame
Baking&Snack - February 2012 - 19
Baking&Snack - February 2012 - In Brief
Baking&Snack - February 2012 - 21
Baking&Snack - February 2012 - Correction and Clarification
Baking&Snack - February 2012 - In Memoriam
Baking&Snack - February 2012 - Right on Track
Baking&Snack - February 2012 - 25
Baking&Snack - February 2012 - 26
Baking&Snack - February 2012 - 27
Baking&Snack - February 2012 - 28
Baking&Snack - February 2012 - 29
Baking&Snack - February 2012 - 30
Baking&Snack - February 2012 - 31
Baking&Snack - February 2012 - 32
Baking&Snack - February 2012 - 33
Baking&Snack - February 2012 - Back on Track
Baking&Snack - February 2012 - 35
Baking&Snack - February 2012 - 36
Baking&Snack - February 2012 - 37
Baking&Snack - February 2012 - 38
Baking&Snack - February 2012 - 39
Baking&Snack - February 2012 - 40
Baking&Snack - February 2012 - 41
Baking&Snack - February 2012 - 42
Baking&Snack - February 2012 - Industry Insight - Managing Valued Assets
Baking&Snack - February 2012 - Going Lean, Cutting Waste
Baking&Snack - February 2012 - 45
Baking&Snack - February 2012 - 46
Baking&Snack - February 2012 - 47
Baking&Snack - February 2012 - 48
Baking&Snack - February 2012 - 49
Baking&Snack - February 2012 - 50
Baking&Snack - February 2012 - 51
Baking&Snack - February 2012 - 52
Baking&Snack - February 2012 - 53
Baking&Snack - February 2012 - 54
Baking&Snack - February 2012 - Breakfast Trends - Keeping Breakfast in Balance
Baking&Snack - February 2012 - 56
Baking&Snack - February 2012 - 57
Baking&Snack - February 2012 - 58
Baking&Snack - February 2012 - 59
Baking&Snack - February 2012 - 60
Baking&Snack - February 2012 - 61
Baking&Snack - February 2012 - 62
Baking&Snack - February 2012 - 63
Baking&Snack - February 2012 - 64
Baking&Snack - February 2012 - Botanicals - Extracts with Benefits
Baking&Snack - February 2012 - 66
Baking&Snack - February 2012 - 67
Baking&Snack - February 2012 - 68
Baking&Snack - February 2012 - 69
Baking&Snack - February 2012 - 70
Baking&Snack - February 2012 - Probiotics - Working with Probiotics
Baking&Snack - February 2012 - 72
Baking&Snack - February 2012 - 73
Baking&Snack - February 2012 - 74
Baking&Snack - February 2012 - 75
Baking&Snack - February 2012 - 76
Baking&Snack - February 2012 - 77
Baking&Snack - February 2012 - 78
Baking&Snack - February 2012 - 79
Baking&Snack - February 2012 - Ingredient App - Vanilla Upgraded
Baking&Snack - February 2012 - 81
Baking&Snack - February 2012 - 82
Baking&Snack - February 2012 - Regulatory Q&A - Better Safe than Sorry
Baking&Snack - February 2012 - 84
Baking&Snack - February 2012 - 85
Baking&Snack - February 2012 - 86
Baking&Snack - February 2012 - Oven Technology - Ability with Agility
Baking&Snack - February 2012 - 88
Baking&Snack - February 2012 - 89
Baking&Snack - February 2012 - 90
Baking&Snack - February 2012 - 91
Baking&Snack - February 2012 - 92
Baking&Snack - February 2012 - 93
Baking&Snack - February 2012 - 94
Baking&Snack - February 2012 - 95
Baking&Snack - February 2012 - 96
Baking&Snack - February 2012 - Pan Management - Automating Pan Handling
Baking&Snack - February 2012 - 98
Baking&Snack - February 2012 - 99
Baking&Snack - February 2012 - 100
Baking&Snack - February 2012 - 101
Baking&Snack - February 2012 - 102
Baking&Snack - February 2012 - 103
Baking&Snack - February 2012 - In Recovery Mode
Baking&Snack - February 2012 - 105
Baking&Snack - February 2012 - 106
Baking&Snack - February 2012 - 107
Baking&Snack - February 2012 - 108
Baking&Snack - February 2012 - 109
Baking&Snack - February 2012 - From Pan to Hearth
Baking&Snack - February 2012 - 111
Baking&Snack - February 2012 - 112
Baking&Snack - February 2012 - Food Safety Q&A
Baking&Snack - February 2012 - 114
Baking&Snack - February 2012 - 115
Baking&Snack - February 2012 - 116
Baking&Snack - February 2012 - ABA FTRAC Q&A
Baking&Snack - February 2012 - 118
Baking&Snack - February 2012 - 119
Baking&Snack - February 2012 - 120
Baking&Snack - February 2012 - Course Preview - Getting Ahead of the Learning Curve
Baking&Snack - February 2012 - 122
Baking&Snack - February 2012 - Events
Baking&Snack - February 2012 - Innovations
Baking&Snack - February 2012 - Ingredient News
Baking&Snack - February 2012 - 126
Baking&Snack - February 2012 - Products & Packaging
Baking&Snack - February 2012 - 128
Baking&Snack - February 2012 - 129
Baking&Snack - February 2012 - 130
Baking&Snack - February 2012 - 131
Baking&Snack - February 2012 - Patents
Baking&Snack - February 2012 - 133
Baking&Snack - February 2012 - 134
Baking&Snack - February 2012 - New on the Shelf
Baking&Snack - February 2012 - 136
Baking&Snack - February 2012 - 137
Baking&Snack - February 2012 - 138
Baking&Snack - February 2012 - Marketplace
Baking&Snack - February 2012 - 140
Baking&Snack - February 2012 - 141
Baking&Snack - February 2012 - 142
Baking&Snack - February 2012 - 143
Baking&Snack - February 2012 - 144
Baking&Snack - February 2012 - Ad Index
Baking&Snack - February 2012 - New Product Spotlight - Superfruits to the Rescue
Baking&Snack - February 2012 - 147
Baking&Snack - February 2012 - 148
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