Location Factors in the Food Processing Industry
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1 Location Factors in the Food Processing Industry 2011 Meet the Consultants Forum- Atlanta May Robert Pittman, Co Founder & Principal Janus Economics, LLC Atlanta, Georgia
2 Key Location Factors in Food Processing Industry Access to raw materials and/or customers Supply chain partners o Warehouse and distribution (including refrigerated) o Containers and packaging Transportation o Suppliers and customers o Multi-modal facilities o Less than 5% of total cost, but key for food products Workforce availability and cost o Labor largest cost component in industry 40% o Un-skilled entry labor is generally a commodity o Skilled labor can make the difference o Occupations and skill sets 2
3 Skilled Labor Match: Example Skilled Labor in Ice Cream and Frozen Dessert Manufacturing Target SOC Title % of Industry Jobs in Area Compatible Jobs First line supervisors/managers of production and operating workers Industrial machinery mechanics Maintenance and repair workers, general Bookkeeping, accounting, and auditing clerks Sales representatives, wholesale and manufacturing, except technical and scientific products , General and operations managers First line supervisors/managers of mechanics, installers, and repairers Industrial production managers First line supervisors/managers of helpers, laborers, and material movers, hand First line supervisors/managers of office and administrative support workers Totals ,503 6,579 3
4 Recent Trends in Food Manufacturing, National On line Job Postings: Monster and Wanted Technologies Leading Employers of Postings Talent Demand by State Panera Bread The Scotts Miracle Dr. Pepper Snapple Nestle Usa Kellogg Company Tyson Foods ConAgra Foods Land O' Lakes Kraft Foods THE HERSHEY General Mills SARA LEE Bimbo Bakeries USA GREEN MOUNTAIN Campbell's Soup California Minnesota Pennsylvania Illinois New York Wisconsin Texas Ohio Michigan New Jersey Maryland Missouri Florida Georgia Iowa Virginia Arkansas Massachusetts North Carolina Indiana Colorado Tennessee Nebraska Washington Data source: WANTED Technologies, 5/7/2011, job postings in last 120 days,
5 Recent Trends in Food Manufacturing, Southern U.S. On line Job Postings, Monster and Wanted Technologies Leading Employers of Postings Panera Bread Dr. Pepper Snapple The Scotts Miracle Gro Tyson Foods Nestle Usa Kellogg Company Pilgrim's Pride Mccormick & Company Cargill THE HERSHEY COMPANY Southern U.S. = South Atlantic, West South Central and East South Central Census Divisions Data source: WANTED Technologies, 5/7/2011, job postings in last 120 days, Texas Maryland Florida Georgia Virginia Arkansas North Carolina Tennessee Oklahoma Kentucky Alabama Louisiana South Carolina Mississippi West Virginia Delaware District of Columbia Sales and Related Office and Administrative Support Transportation and Material Moving Management Talent Demand by State Production Talent Demand by Major Occupational Group
6 Demand for Selected Occupations in Food Manufacturing, Southern U.S. On line Job Postings Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Food Batchmakers Slaugherers and Meat Packers Food Scientists and Technologists Southern U.S. = South Atlantic, West South Central and East South Central Census Divisions Data source: WANTED Technologies
7 Conclusions You must offer proximity to raw materials or customers to be competitive in many food projects You must have appropriate infrastructure: transportation, water/sewer, etc. You must have an appropriate labor force, unskilled and skilled Distinguish your community with skilled labor: occupations and skill sets that food industry needs 7
3+ 3+ N = 155, 442 3+ R 2 =.32 < < < 3+ N = 149, 685 3+ R 2 =.27 < < < 3+ N = 99, 752 3+ R 2 =.4 < < < 3+ N = 98, 887 3+ R 2 =.6 < < < 3+ N = 52, 624 3+ R 2 =.28 < < < 3+ N = 36, 281 3+ R 2 =.5 < < < 7+
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