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Manufacturing News
TECH FLASH

Global food and beverage industry on the comeback

An industry survey reveals light at the end of the tunnel.

By Shane O'Halloran

After years of economic uncertainty, delayed investments and hindered growth, food and beverage executives see a light at the end of the tunnel. According to Grant Thornton’s Food and Beverage Study 2013, revenues, profits and employment are expected to increase in the next 12 months. However, manufacturers must selectively seek out new distribution channels, develop new products and enter new markets to most effectively minimize risk and maximize return. To undertake a successful growth strategy, processors can focus on eight survey findings and actionable insights.

The first industry trend is to do more with less. While 90 percent of executives surveyed by Grant Thornton expect revenues to increase next year, only 56 percent expect full-time employment to go up. New technologies and automation processes allow companies to approach full production capacity without hiring additional workers. However, some worry that revenues are rising primarily due to inflation, and processors may soon have trouble passing along farm and supply chain price increases to consumers, jeopardizing margins. Grant Thornton recommends producers “balance investment in growth with strategies to improve efficiency and minimize risk, primarily through automation and information technologies.”

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