Food Engineering logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Engineering logo
  • NEWS
    • Latest Headlines
    • Manufacturing News
    • People & Industry News
    • Plant Openings
    • Recalls
    • Regulatory Watch
    • Supplier News
  • PRODUCTS
    • New Plant Products
    • New Retail Products
  • TOPICS
    • Alternative Protein
    • Automation
    • Cannabis
    • Cleaning | Sanitation
    • Cross-Functional Food Innovation
    • Fabulous Food Plants
    • Food Safety
    • Maintenance Strategies
    • OEE
    • Packaging
    • Sustainability
    • More
  • EXCLUSIVES
    • Plant Construction Survey
    • Plant of the Year
    • Sustainable Plant of the Year
    • State of Food Manufacturing
    • Top 100 Food & Beverage Companies
  • MEDIA
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • FOOD MASTER
  • EVENTS
    • Food Automation & Manufacturing Symposium and Expo
    • Industry Events
  • RESOURCES
    • Newsletter
    • Custom Content & Marketing Services
    • FE Store
    • Government Links
    • Industry Associations
    • Market Research
    • Sponsor Insights
    • Classified Ads
  • EMAGAZINE
    • eMagazine
    • Archive Issue
    • Advertise
  • SIGN UP!

Editor's Note

Survey shows that budget concerns hold back innovation, productivity

Companies are not showing much change in capital, operations spending

By Debra Schug
Debra-Schug
August 9, 2017

This issue features our annual State of Food Manufacturing survey. No surprise that automation, once again, took the number one spot in the Top 10 future trends list.

Of course, it’s not just our industry. A recent episode from The Wall Street Journal’s new podcast, The Future of Everything, discussed the quantitative models that are running a third of all trading in the US today. The “quants,” as they are called, use algorithms to predict what human traders will do and beat them to it before action is taken.

It’s a whole new world out there.

All this really hit me a few months back. I realized that for the past 10 years, while many of us have been dealing with the fallout from the recession and have been consumed with business, life and personal finance worries, we have entered into a new era.

As I probably have mentioned before, I studied anthropology in undergraduate school. A large part of that curriculum was studying different archaeological periods of man, such as the Stone Age, the Bronze Age and the Iron Age. This system is largely based on what tools were being manufactured and used.

These ages lasted hundreds, and sometimes thousands, of years before the tools switched, but in a short time period, everything seems to change. That feels like what has just happened: We went to bed in an analogue era and woke up in a digital one.

There is a caveat that could be slowing progress. It was identified by our survey respondents as the number seven trend that will likely affect manufacturing for the next few years, and that’s budget constraints. Food Engineering’s survey has charted the budget allocations for new equipment purchases in the past decade, and there really hasn’t been that much change in how much companies are allowed to spend to upgrade their operations.

Budget constraint concerns also crept into several discussions during the past Food Automation & Manufacturing Conference. Jim Tonjes, former vice president of engineering for General Mills, gave a sanitary plant design talk (also referenced in this issue’s “Creating a sanitary food factory” article), in which he presented the elements that should be considered and incorporated when evaluating the sanitation needs of a food plant.

In the Q&A period, someone asked how Tonjes justified to upper management the premium costs associated with the high-end facilities buildup that he described. Tonjes said when General Mills had to hold product due to a potential safety problem, the costs started at $5 million and went up from there. So, management was willing to spend more money to eliminate any possible food safety risks.

The larger point here is that if plants are being required to do more with less consistently every year, there will be a point of diminishing returns coming soon.

However, if more money is spent on the equipment and services necessary to modernize food and beverage production—bringing it from the analogue to the digital age—that will allow companies to drive the innovation the industry needs.

KEYWORDS: equipment food and beverage industry trends

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Debra Schug was Editor-in-Chief of Food Engineering. She began her media career over a decade ago writing and producing broadcast news for both television and radio at the local and national level. She spent many years as the managing editor for two trade magazines in the oil industry and the research editor for an annual petroleum report. She has a master’s degree in journalism and mass communication from Iowa State University.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • FE Top100 Food & Beverage Companies hero, gold lettering with black background.

    FOOD ENGINEERING’s 2026 Top 100 Food and Beverage Companies

    See where the world’s leading food and beverage companies...
    Top 100 Food & Beverage Companies
    By: Alyse Thompson-Richards
  • CJ Schwan’s Salina facility.

    Recipe for Growth: How CJ Schwan’s Powers Pizza Production with People and Automation

    Blending advanced automation with purposeful design, this...
    Plant of the Year
    By: Alyse Thompson-Richards
  • Paris Baguette rendering

    FOOD ENGINEERING’s 49th Annual Plant Construction Survey

    Food and beverage manufacturers continue to invest in...
    Plant Construction Survey
    By: Alyse Thompson-Richards
Manage My Account
  • eMagazine
  • Newsletter
  • Online Registration
  • Manage My Preferences
  • Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Food Engineering audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Food Engineering or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Close-up of a group of freshly baked stuffed empanadas being transferred onto a conveyor belt.
    Sponsored byDorner

    Smarter Line Design Improves Food Manufacturing Efficiency and Throughput

  • An old and tattered manual titled 'Revised 5/20/1971' on a desk along with a cellphone, sunglasses, Apple iWatch, laptop and keyboard, and a water bottle.
    Sponsored byEnSight Solutions

    Redefining Quality: Has the Industry Lost Sight of What Actually Matters?

  • Worker in protective food-processing attire uses a tablet beside stainless-steel conveyor equipment in a modern food manufacturing facility.
    Sponsored bySafetyChain

    Your Biggest Losses Are Hiding in Data You Already Have

Popular Stories

FE Top100 Food & Beverage Companies hero, gold lettering with black background.

FOOD ENGINEERING’s 2026 Top 100 Food and Beverage Companies

FE August 2021 Plant of the Year: Keurig Dr Pepper Facility. Photos courtesy of Keurig Dr Pepper

Chobani to Invest $1.2B in Pennsylvania Manufacturing Campus

AB Baldwinsville Investment

Anheuser-Busch Invests $13M in New York Brewery

Graphic with text on the left: ‘Food Engineering 2026 Top 100 - Explore leaders.’ Right side: images of juice bottles and chicken on a conveyor. Bottom text 'View Rankings'.


Promo for the 2027 Plant of the Year Award

Events

September 23, 2026

An In-Depth Look at 2026's Top 100 Food and Beverage Companies

Join Lynn Dornblaser, Client Advisor at Mintel, and Alyse Thompson-Richards, Editor-in-Chief of FOOD ENGINEERING, as they break down the 2026 Top 100 Food and Beverage Companies and discuss the factors affecting this year’s rankings.

September 29, 2026

Food Safety Execution and Your Bottom Line

Explore food safety strategies that strengthen sanitation, risk management, operational efficiency, and compliance across foodservice and facility environments.

View All Submit An Event

Products

Recent Advances in Ready-to-Eat Food Technology

Recent Advances in Ready-to-Eat Food Technology

See More Products

September 23 FE Editorial Webinar


CHECK OUT OUR NEW ESSENTIAL TOPICS

Alternative ProteinAutomationCleaning/SanitationFabulous Food Plants

Food SafetyMaintenance StrategiesOEE

PackagingSustainability

Related Articles

  • food plant construction

    Food Engineering's 2019 Plant Construction Survey shows tax cuts spur investment

    See More
  • FSA survey shows food safety worries

    See More
  • Tetra Pak survey shows demand for renewable materials, environmental labeling

    See More

Related Products

See More Products
  • Functionalizing Carbohydrates for Food Applications

See More Products

Events

View AllSubmit An Event
  • November 28, 2018

    Outcome-based Solutions: The Path to Increased Productivity and Profitability

    ON DEMAND: This webinar will provide insights into the challenges facing food and beverage manufacturers today, and actions that can be taken to increase competitiveness. We will identify opportunities to deliver sustainable business results and strategic improvements, including outcome-based solutionsdeveloped especially for food and beverage manufacturers.
View AllSubmit An Event
×

Elevate your expertise in food engineering with unparalleled insights and connections.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Food Master
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • Newsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing