Food Processing 2010 Manufacturing Trends Survey 1. For the coming year, please rank, 1st place through 10th place, the importance to your plant of the following manufacturing issues:
Item Automation Consolidation challenges Energy issues Environmental concerns Food safety Labor Sourcing and materials Logistics Plant security Inspections/certifications Average %
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11.4% 42 8.7% 32 15.5% 57 12.0% 44 59.9% 221 14.2% 52 15.2% 56 6.5% 24 12.2% 45 17.7% 65 17.3%
7.1% 26 7.6% 28 12.2% 45 16.0% 59 11.9% 44 14.4% 53 16.3% 60 10.3% 38 7.9% 29 16.8% 62 12.1%
8.2% 30 8.7% 32 13.3% 49 12.5% 46 5.7% 21 13.1% 48 14.7% 54 10.9% 40 10.1% 37 10.1% 37 10.7%
9.8% 36 9.8% 36 13.0% 48 9.2% 34 5.1% 19 12.3% 45 8.2% 30 9.2% 34 9.8% 36 7.6% 28 9.4%
13.9% 51 9.8% 36 11.1% 41 10.3% 38 1.4% 5 11.7% 43 10.3% 38 10.6% 39 10.1% 37 6.8% 25 9.6%
9.2% 34 9.8% 36 7.3% 27 8.4% 31 3.0% 11 9.8% 36 7.6% 28 11.4% 42 7.9% 29 8.2% 30 8.3%
5.2% 19 8.7% 32 9.0% 33 6.8% 25 2.2% 8 8.7% 32 7.6% 28 12.0% 44 10.1% 37 7.3% 27 7.7%
10.6% 39 7.3% 27 7.9% 29 6.3% 23 1.9% 7 7.6% 28 8.4% 31 12.5% 46 10.6% 39 7.3% 27 8.0%
9.2% 34 13.0% 48 7.1% 26 9.0% 33 1.6% 6 3.0% 11 6.8% 25 11.4% 42 10.9% 40 7.6% 28 8.0%
15.5% 57 16.8% 62 3.5% 13 9.5% 35 7.3% 27 5.2% 19 4.9% 18 5.2% 19 10.6% 39 10.6% 39 8.9%
Average
Total
5.3
368
5.0
369
6.4
368
6.1
368
8.4
369
6.5
367
6.5
368
5.4
368
5.5
368
6.2
368
6.1
3,681.0
2. How is your company dealing with the economy? (You may choose more than one answer)
Item We're growing Staff reductions No great changes Closing plants/consolidating Widespread salary cuts Outsourcing to overseas manufacturers Outsourcing to U.S. or Canadian contract manufacturers salary freeze Salary Freezes Advertising automation Consolidating Controlling labor and commissions cost reduction efforts
Count 135 126 119 54 34 22 15 2 2 1 1 1 1 1
Percent % 36.68% 34.24% 32.34% 14.67% 9.24% 5.98% 4.08% 0.54% 0.54% 0.27% 0.27% 0.27% 0.27% 0.27%
cost reduction, outsourcing of local contract manufacturers Cutting overtime cutting production level Diversifying products explore more buyers freeze hiring Hedging input costs with Futures and Options Im not working right now. Improved efficiencies. Improving internal operations increase production KEEPING LESS INVENTORY ON HAND lack of disposable income spent on our industry Lay-offs local toll packing & overtime reduction Lowering the work wk hours new owners New product development NO no salary increases and a cut in benefits Not replacing employees that leave and multi-tasking at all levels. Not replacing staff, no raises, hold budget, no captial spending periodic layoffs reduce perks reduce spending, increasin efficiency reduced increases reducing inventories relocating part of one operation Retooling for emerging markets salary freeze and no bonuses saving a lot of time SKU reduction tapping new markets in Asia We're attempting to grow we're being acquired Widespread salary freeze
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27% 0.27%
3. Do you anticipate your plant's production in 2010 to:
Item Increase 3-9% Stay about the same Increase 10-19% Increase 20% or more Decrease 3-9% Decrease 10-19% Decrease 20% or more
Count 120 85 75 58 20 8 4
Percent % 32.43% 22.97% 20.27% 15.68% 5.41% 2.16% 1.08%
4. For 2010, is your company planning to:
Item
Count
Percent %
Stay the same
158
42.70%
Expand production/number of manufacturing plants
107
28.92%
Don't know/does not apply
55
14.86%
Consolidate production/number of manufacturing plants
50
13.51%
5. In 2010, does your facility plan to:
Item Maintain staffing level Add to the workforce Don't know Passively reduce workforce (i.e. through attrition) Actively reduce workforce
Count 178 91 39 37 25
Percent % 48.11% 24.59% 10.54% 10.00% 6.76%
6. Did your facility increase, decrease, or maintain salaries in 2009?
Item Maintain Increase Decrease Don't know
Count 205 112 40 14
Percent % 55.26% 30.19% 10.78% 3.77%
7. Will your facility increase, decrease, or maintain salaries in 2010?
Item Maintain Increase Don't know Decrease
Count 146 131 82 12
Percent % 39.35% 35.31% 22.10% 3.23%
8. How do you feel going into 2010?
Item Optimistic Neutral/I'm not sure Pessimistic
Count 243 102 26
Percent % 65.50% 27.49% 7.01%
9. What portion of your plant has been automated? (Please check all that apply.)
Item Production sections Packaging sections None Entire production line Logistics/warehousing Maintenance, repair & operations Entire plant aseptic tetrapak filling AUTOMATION IS THE KEY FOR SUCCESS TODAY AS LABOUR COST IS GROWING RAPIDLY AND OUTPUT IS POOR. WE NEED TO BRING IN AUTOMATION IN COMING YEARS TO REDUCE LABOUR INTENSIVE ACTIVITIES AND CUT THE COST NA Only partly automated palletizing - w/ robots
Count 181 155 64 40 38 20 17 1
Percent % 53.55% 45.86% 18.93% 11.83% 11.24% 5.92% 5.03% 0.30%
1
0.30%
1 1 1
0.30% 0.30% 0.30%
10. If you are automating a component or components of your manufacturing process, are you automating through: (please check all that apply)
Item Programmable controls (PC or PLC) in a network PC-based control Manufacturing execution or operations management system Standalone controls with no networking In-plant use of Internet to access plant data Integrated systems Integration with an enterprise resource planning system Remote use of Internet to access plant data
Count 87 67 57 47 36 28 23 21
Percent % 31.29% 24.10% 20.50% 16.91% 12.95% 10.07% 8.27% 7.55%
Standalone PLCs Off-the-shelf software Custom software Robotics
21 18 11 10
11. Did you implement new food safety measures in 2009?
Item Yes No Don't know
Count 239 78 21
Percent % 70.71% 23.08% 6.21%
7.55% 6.47% 3.96% 3.60%
12. Will you implement new food safety measures in 2010?
Item Yes Don't know No
Count 235 69 34
Percent % 69.53% 20.41% 10.06%
13. What are the specific practices your facility has implemented, or will implement, for better sanitation and food safety? (Please check all that apply.)
Item Employee training HACCP plan Third-party certification Improved pest control program More/improved sanitary equipment None Rapid microbial detection system Other (please specify; multiple answers OK) AIB BRC BRC acquired Corp Inspections Corporate audits of plants
Count 267 215 165 164 129 101 87 74 1 1 1 1 1
Percent % 81.16% 65.35% 50.15% 49.85% 39.21% 30.70% 26.44% 22.49% 0.30% 0.30% 0.30% 0.30% 0.30%
Corporate-wide inspections and certifications Environmental Management System (ISO14001) held the iso 22000 certificate Improved cleaning and sanitation program Improved GMP and HSE ISO22000 NA upgrade Metal detector procedures
1 1 1 1 1 1 1 1
0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
15. Compared to last year at this time, how concerned are you about E. coli, Salmonella, listeria or other pathogens?
Item
Count
Percent %
Same level of concern--These worries never go away More concerned--I think more incidents are coming Less concerned--I think we have things under control now
204 83 51
16. Do you currently have an ingredient / food tracking or tracing program in place?
Item Yes Don't know/Does not apply No
Count 249 45 34
Percent % 75.91% 13.72% 10.37%
60.36% 24.56% 15.09%
17. Regarding the existing system of U.S.-based third party auditing systems, please check any of these programs that you have used in the last year (please check all that apply).
Item AIB Silliker Cook & Thurber EcoSure Randolph & Associates None Harold Wainess & Associates
Count 103 78 40 20 10 6 3
Percent % 44.40% 33.62% 17.24% 8.62% 4.31% 2.59% 1.29%
n/a GMA-Safe Bureau Veritas Nigeria Limited Chi Alph Consulting LLC Corp Sanitation & Quality Crown Audits DNV (IFS Audit) don't know the name of agency EcoCertr (South Africa) European Based FDA FDA, FSNS Food Safety Net Services and FSA thru FSIS GFTC HACCP International Pty Ltd in house computerized tracking program local Third party auditors Malaysian SIRIM Board Maxxam Analytical My plant is just under construction now. NA NFPA None done through own developed process in line with HACCP None from US none they are not reliable none yet Not applicable not bases in the u.s Not from U.S. not in US NSF OIA Organic certification other QMS Ross RQA sgs SGS Canada
3 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1.29% 0.86% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43% 0.43%
SQF UKAS W.E. Long WE ARE BASED IN INDIA AND PRODUCTS ARE FOR INTERNAL DOMESTIC MARKET AND WE FOLLOW haccp QUALITY MANAGEMENT SYSTEM. we are in europe we use SAI Global
1 1 1
0.43% 0.43% 0.43%
1
0.43%
1 1
0.43% 0.43%
18. If you know your company's capital spending budget for 2010, compared to 2009 is it...
Item Don't know About the same Up 5 to 10 percent Up less than 5 percent Up more than 10 percent Down 5 to 10 percent Down more than 10 percent Down less than 5 percent
Count 95 66 64 37 29 21 12 7
Percent % 28.70% 19.94% 19.34% 11.18% 8.76% 6.34% 3.63% 2.11%
19. Because of the economy, did your plant defer capital projects from 2009?
Item Yes No Not sure
Count 157 102 72
Percent % 47.43% 30.82% 21.75%
20. How were you impacted by energy costs in 2009?
Item Not significantly impacted What we use went up significantly Costs went down significantly
Count 166 108 42
Percent % 52.53% 34.18% 13.29%
21. How are you approaching energy management?
Item Taking steps in energy conservation Conducting energy audits Not a burning issue right now Recycling energy (i.e. through redirection systems) Negotiating with energy providers Seeking alternate energy sources Looking to energy management consultants Looking at co-generation already installed co-generation system already on liquified gas power usage Heding with Heating Oil and Nat Gas Futures and Options Installing solar panels Internal research and design. moved locations
Count 187 94 75 71 64 48 26 21 1 1 1 1 1 1
Percent % 60.13% 30.23% 24.12% 22.83% 20.58% 15.43% 8.36% 6.75% 0.32% 0.32% 0.32% 0.32% 0.32% 0.32%
NA Plants going green via LEEDS Relamp Facility
1 1 1
0.32% 0.32% 0.32%
22. Given the state of the economy, are your company’s or plant's green initiatives…
Item Becoming more important than they were in 2009 This is not important to us Becoming less important
Count 230 66 35
Percent % 69.49% 19.94% 10.57%
23. How many employees at your facility?
Item 101 to 500 11 to 50 51 to 100 Fewer than 10 501 to 1000 1000 to 2500 2500 to 5000 More than 5000
Count 124 59 45 32 30 9 7 6
Percent % 39.74% 18.91% 14.42% 10.26% 9.62% 2.88% 2.24% 1.92%
24. Which one of these best describes the dominant end product of your facility?
Item Other Meats/poultry (fresh or frozen) Fruits and vegetables Further processed foods and specialties Baked goods Beverages (non-dairy) Dairy (includes milk, cheese, ice cream or any dairy product) Breakfast cereals/grain products/pasta
Count 71 35 32 30 29 27 22 15
Percent % 22.76% 11.22% 10.26% 9.62% 9.29% 8.65% 7.05% 4.81%
Herbs/Spices/Dry flavorings Confectionery Condiments/Jams/Jellies Seafood (fresh or frozen) Frozen Dinners Snack foods/chip
14 11 9 7 6 4
4.49% 3.53% 2.88% 2.24% 1.92% 1.28%
