IBIE, special edition & show preview -- 2013 - (Page 11)

IBIE PERSPECTIVE Amid challenges, opportunities persist As IBIE 2013 approaches, baking will see better times ahead, having made great strides in the face of historic changes. Josh Sosland Editor, Milling and Baking News by Josh Sosland, Milling & Baking News I In terms of industry change, the years between the 2010 and 2013 International Baking Industry Expositions have been as eventful as any in the history of baking. For the most part, the period placed the industry in a stronger position than in many years. This must be reckoned as a highly desirable situation, given the abundance of challenges as well as opportunities that baking continues to face. Perhaps the greatest transformation for baking since the last Expo — indeed, since the past several Expos — is the consolidation involving a large proportion of the industry’s capacity. This shift means baking is now led entirely by companies with strong track records in the business. That alone is hugely different from the not-too-distant past when the industry included large companies owned and/or directed by entities with little, or no, baking experience. As part of the consolidation, the uncertainty overhanging the industry because of the financial woes of Hostess Brands has been lifted with the successful liquidation of the company during 2013. While it remains to be seen how the competitive picture in baking fills out in the months ahead, it is hard to imagine a more promising outcome than now on the horizon for what has been a difficult, nagging story. Better, but plodding, economy Among other positives for the industry is the more benign ingredient market picture. Even as the overall wheat supply situation remains tight — mostly because of persistent dry conditions in the southern Plains States — the bright outlook for the 2013 corn and soybean crops represents great recovery from the drought-devastated outturn of the past year. As a result, the US Department of Agriculture’s July forecast for new-crop wheat prices predict a decline of as much as $1.30 a bu from the year before. As is the case with the other positives for baking, plenty of cause for concern remains in commodity markets. Prices are still well above historical averages, and market volatility continues creating severe challenges for the industry. The July 2013 employment level of 144.3 million was solidly higher than the 138.4 million figure when the 2010 Expo was held. Similarly, the July unemployment rate of 7.4% represents significant progress from the 9.5% jobless rate in 2010. Personal incomes are improving, and the housing market prompts much enthusiasm about the outlook. Even with the improvements, cross currents are at play in baking that pose numerous challenges. In terms of the economic picture, the employment level remains 2 million jobs shy of the November 2007 peak of 146.6 million. Similarly, the July unemployment rate, while better than in 2010, is still a higher figure than all pre-2010 Expos but one since the late 1970s (7.9% in 1981). Baking is now led entirely by companies with strong track records in the business.That is hugely different from the not-toodistant past when the industry included large companies owned and/or directed by entities with little, or no, baking experience. IBIE 2013 / SPECIAL EDITION / 11

Table of Contents for the Digital Edition of IBIE, special edition & show preview -- 2013

IBIE, special edition & show preview -- 2013
Table of Contents
IBIE Perspective - Amid challenges, opportunities persist
State of the Industry - Dizzying changes among baking’s leaders
A changing of the guard
Making Baking History - Progress on Parade
Capital Spending Survey - Making the safe bet
Survey reaches wide sample
IBIE Tech - Going Mobile
ABA Perspectives - Big changes since IBIE 2010
ABA: On the Front Lines
Keep on track with FTRAC
Let's Keep on Truckin'
An Ounce of Prevention
BEMA Initiatives - Collaborative Solutions
Critical Issue: FSMA - Predict & Prevent
Court orders FDA to step up its efforts
Food Safety: ANSI/ASB/Z50.2
Equipment Advances - Clean and Simple
Formulating R&D - Brave New World
Intel about ingredient trends
Critical Issue: Commodity Prices - Long and Winding Road
Ingredients: Creating Simple Labels - Simple Options
Critical Issue: Sodium Reduction - How Low Can You Go?
Ingredients: Ancient Grains - What's Old is New Again
New Product Trends: Baked Foods - Change Afoot
New Product Trends: Snacks - Reinventing Snack Time
Special Section: Bake
The Next Cupcake?
Ingredient Transparency
Food trucks on the move
New Tech Tools
IBIE 2013: A World of Possibilities
Ready to Launch
Pizza Popularity
Revel in Vegas
2013 Exhibitor List
Ad Index

IBIE, special edition & show preview -- 2013