Baking & Snack - February 2021 - 30

CAPITAL SPENDING SURVEY

" I am afraid that it might take longer than I wish,
but a lot depends on how fast they roll out the vaccine,
which will give confidence to people to get back to normal, " he said. " I think people want to get back to 'normal,' and there will be a lot of pent-up demand to 'get
out and do stuff.' "

Bigger, leaner operations
In 2021, 43% of those surveyed indicated that maintaining existing equipment and production lines remains the
main reason for equipment-related capital spending followed by upgrading (28%) or adding (27%) new lines.
Specifically, 96% plan to spend their 2021 capital budget on maintenance and replacement parts followed by
81% pointing to systems improvements such as enterprise resource planning platforms. This compares to 78%
of respondents in the 2017 study and 61% in 2013 that
reported investing for systems-related improvements.
" Digital transformation continues to be a conversation, and investment has stairstepped up over the last
several years, " Ms. Hellmer said.
She added that advances in technology such as wireless communications, data-gathering sensors, programmable controls, enhanced servo motors and material reporting systems now drive operational efficiency to new
levels. They're also part of an ongoing effort to reduce
the need for skilled labor as bakers push for a fully automated, lights-out bakery with fewer or no employees.
Ms. Hellmer added that 2021 investments in upgrading facilities (68% of those surveyed) and facility expansion (47%) are likely driven, in part, by coronavirus
(COVID-19) protocols.
" We've seen a lot of plants operating at capacity this
year, " she said. " They can't get product out fast enough if
they're selling into those busy channels. "
Among the top 2021 equipment needs, an overwhelming 85% of executives plan to invest in packaging
followed by material handling (66%) and mixing (63%).
Today, the greatest amount of labor is still required in
packaging departments, which have had to respond to
foodservice, in-store bakeries and other customers' requests that most products be individually wrapped or
packaged for food safety.
Finally, the pandemic also seems to be driving the
top budgetary goals for capital spending in 2021 that include increasing capacity for existing products (68% of
respondents); decreasing labor costs (65%); improving
product quality, consistency and accuracy (65%), and
improving food safety/sanitation (60%).
Investing for new products slipped in importance for
2021, which may not come as a surprise. In the United
States, total new food and beverage product launches
for the first 10 months of 2020 fell 14.9% compared to

30 Baking & Snack February 2021 / www.bakingbusiness.com

" A LOT DEPENDS ON HOW
FAST THEY ROLL OUT THE
VACCINE, WHICH WILL GIVE
CONFIDENCE TO PEOPLE TO
GET BACK TO NORMAL. "
Larry Marcucci, Alpha Baking Co.

HOW BAKERS PLAN
TO INVEST IN THEIR
OPERATIONS

In 2021, for your equipment-related capital
projects, about what percent is your company
spending in the following areas?
(Average % shown)

43% MAINTAINING EXISTING
EQUIPMENT/PRODUCTION LINES

28% UPGRADING EXISTING
EQUIPMENT/PRODUCTION LINES

29% ADDING NEW EQUIPMENT
the same period in 2019, according to the latest data by
Innova Market Insights.
" If anything, the trend toward SKU rationalization
seemed to gain ground as the year went on, so it appears
that will continue for a while, though it looks as if panic
buying may be something that we can avoid in 2021, " explained Tom Vierhile, vice president of strategic insights,
North America, for Innova. " However, we may see a
pretty good jump in new product activity in 2021 as some
launch efforts delayed from 2020 come to fruition. "
While optimism reigns for 2021, many more questions still linger. How soon will workers return to their
offices and how many will remain working from home?
How have consumer shopping patterns fundamentally
changed in the long run?
" I am very curious to see how much of the online
shopping sticks, " Mr. Marcucci said. " Some people are
already feeling manipulated by social media and may


http://www.bakingbusiness.com

Baking & Snack - February 2021

Table of Contents for the Digital Edition of Baking & Snack - February 2021

Baking & Snack - February 2021 - 1
Baking & Snack - February 2021 - 1
Baking & Snack - February 2021 - 2
Baking & Snack - February 2021 - 3
Baking & Snack - February 2021 - 4
Baking & Snack - February 2021 - 5
Baking & Snack - February 2021 - 6
Baking & Snack - February 2021 - 7
Baking & Snack - February 2021 - 8
Baking & Snack - February 2021 - 9
Baking & Snack - February 2021 - 10
Baking & Snack - February 2021 - 11
Baking & Snack - February 2021 - 12
Baking & Snack - February 2021 - 13
Baking & Snack - February 2021 - 14
Baking & Snack - February 2021 - 15
Baking & Snack - February 2021 - 16
Baking & Snack - February 2021 - 17
Baking & Snack - February 2021 - 18
Baking & Snack - February 2021 - 19
Baking & Snack - February 2021 - 20
Baking & Snack - February 2021 - 21
Baking & Snack - February 2021 - 22
Baking & Snack - February 2021 - 23
Baking & Snack - February 2021 - 24
Baking & Snack - February 2021 - 25
Baking & Snack - February 2021 - 26
Baking & Snack - February 2021 - 27
Baking & Snack - February 2021 - 28
Baking & Snack - February 2021 - 29
Baking & Snack - February 2021 - 30
Baking & Snack - February 2021 - 31
Baking & Snack - February 2021 - 32
Baking & Snack - February 2021 - 33
Baking & Snack - February 2021 - 34
Baking & Snack - February 2021 - 35
Baking & Snack - February 2021 - 36
Baking & Snack - February 2021 - 37
Baking & Snack - February 2021 - 38
Baking & Snack - February 2021 - 39
Baking & Snack - February 2021 - 40
Baking & Snack - February 2021 - 41
Baking & Snack - February 2021 - 42
Baking & Snack - February 2021 - 43
Baking & Snack - February 2021 - 44
Baking & Snack - February 2021 - 45
Baking & Snack - February 2021 - 46
Baking & Snack - February 2021 - 47
Baking & Snack - February 2021 - 48
Baking & Snack - February 2021 - 49
Baking & Snack - February 2021 - 50
Baking & Snack - February 2021 - 51
Baking & Snack - February 2021 - 52
Baking & Snack - February 2021 - 53
Baking & Snack - February 2021 - 54
Baking & Snack - February 2021 - 55
Baking & Snack - February 2021 - 56
Baking & Snack - February 2021 - 57
Baking & Snack - February 2021 - 58
Baking & Snack - February 2021 - 59
Baking & Snack - February 2021 - 60
Baking & Snack - February 2021 - 61
Baking & Snack - February 2021 - 62
Baking & Snack - February 2021 - 63
Baking & Snack - February 2021 - 64
Baking & Snack - February 2021 - 65
Baking & Snack - February 2021 - 66
Baking & Snack - February 2021 - 67
Baking & Snack - February 2021 - 68
Baking & Snack - February 2021 - 69
Baking & Snack - February 2021 - 70
Baking & Snack - February 2021 - 71
Baking & Snack - February 2021 - 72
Baking & Snack - February 2021 - 73
Baking & Snack - February 2021 - 74
Baking & Snack - February 2021 - 75
Baking & Snack - February 2021 - 76
Baking & Snack - February 2021 - 77
Baking & Snack - February 2021 - 78
Baking & Snack - February 2021 - 79
Baking & Snack - February 2021 - 80
Baking & Snack - February 2021 - 81
Baking & Snack - February 2021 - 82
Baking & Snack - February 2021 - 83
Baking & Snack - February 2021 - 84
Baking & Snack - February 2021 - 85
Baking & Snack - February 2021 - 86
Baking & Snack - February 2021 - 87
Baking & Snack - February 2021 - 88
Baking & Snack - February 2021 - 89
Baking & Snack - February 2021 - 90
Baking & Snack - February 2021 - 91
Baking & Snack - February 2021 - 92
Baking & Snack - February 2021 - 93
Baking & Snack - February 2021 - 94
Baking & Snack - February 2021 - 95
Baking & Snack - February 2021 - 96
Baking & Snack - February 2021 - 97
Baking & Snack - February 2021 - 98
Baking & Snack - February 2021 - 99
Baking & Snack - February 2021 - 100
Baking & Snack - February 2021 - 101
Baking & Snack - February 2021 - 102
Baking & Snack - February 2021 - 103
Baking & Snack - February 2021 - 104
Baking & Snack - February 2021 - 105
Baking & Snack - February 2021 - 106
Baking & Snack - February 2021 - 107
Baking & Snack - February 2021 - 108
Baking & Snack - February 2021 - 109
Baking & Snack - February 2021 - 110
Baking & Snack - February 2021 - 111
Baking & Snack - February 2021 - 112
Baking & Snack - February 2021 - 113
Baking & Snack - February 2021 - 114
Baking & Snack - February 2021 - 115
Baking & Snack - February 2021 - 116
Baking & Snack - February 2021 - 117
Baking & Snack - February 2021 - 118
Baking & Snack - February 2021 - 119
Baking & Snack - February 2021 - 120
Baking & Snack - February 2021 - 121
Baking & Snack - February 2021 - 122
Baking & Snack - February 2021 - 123
Baking & Snack - February 2021 - 124
http://digitalbs.bakingbusiness.com/sosland/bs/baking-snack-february-2021
http://digitalbs.bakingbusiness.com/sosland/bs/2020_12_01
http://digitalbs.bakingbusiness.com/sosland/bs/2020_11_01
http://digitalbs.bakingbusiness.com/sosland/bs/2020_10_01
http://digitalbs.bakingbusiness.com/sosland/bs/2020_09_01
http://digitalbs.bakingbusiness.com/sosland/bs/2020_08_01
http://digitalbs.bakingbusiness.com/sosland/bs/2020_07_01
http://digitalbs.bakingbusiness.com/sosland/bs/2020_06_01
http://digitalbs.bakingbusiness.com/sosland/bs/2020_05_01
http://digitalbs.bakingbusiness.com/sosland/bs/2020_04_01
http://digitalbs.bakingbusiness.com/sosland/bs/2020_03_01
http://digitalbs.bakingbusiness.com/sosland/bs/2020_02_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_12_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_11_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_10_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_09_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_08_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_07_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_06_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_05_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_04_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_03_01
http://digitalbs.bakingbusiness.com/sosland/bs/2019_02_01
http://digitalbs.bakingbusiness.com/sosland/bs/2018_12_01
http://digitalbs.bakingbusiness.com/sosland/bs/2018_11_01
http://digitalbs.bakingbusiness.com/sosland/bs/2018_10_01
http://digitalbs.bakingbusiness.com/sosland/bs/2018_09_01
http://digitalbs.bakingbusiness.com/sosland/bs/2018_08_01
http://digitalbs.bakingbusiness.com/sosland/bs/2018_07_01
http://digitalbs.bakingbusiness.com/sosland/bs/2018_06_01
http://digitalbs.bakingbusiness.com/sosland/bs/2018_05_01
http://digitalbs.bakingbusiness.com/sosland/bs/2018_04_01
http://digitalbs.bakingbusiness.com/sosland/bs/2018_03_01
https://www.nxtbook.com/sosland/bs/2018_02_01
https://www.nxtbook.com/sosland/bs/2017_12_01
https://www.nxtbook.com/sosland/bs/2017_11_01
https://www.nxtbook.com/sosland/bs/2017_10_01
https://www.nxtbook.com/sosland/bs/2017_09_01
https://www.nxtbook.com/sosland/bs/2017_08_01
https://www.nxtbook.com/sosland/bs/2017_07_01
https://www.nxtbook.com/sosland/bs/2017_06_01
https://www.nxtbook.com/sosland/bs/2017_05_01
https://www.nxtbook.com/sosland/bs/2017_04_01
https://www.nxtbook.com/sosland/bs/2017_03_01
https://www.nxtbook.com/sosland/bs/2017_02_01
https://www.nxtbook.com/sosland/bs/2016_12_01
https://www.nxtbook.com/sosland/bs/2016_11_01
https://www.nxtbook.com/sosland/bs/2016_10_01
https://www.nxtbook.com/sosland/bs/2016_09_01
https://www.nxtbook.com/sosland/bs/2016_08_01
https://www.nxtbook.com/sosland/bs/2016_07_01
https://www.nxtbook.com/sosland/bs/2016_06_01
https://www.nxtbook.com/sosland/bs/2016_05_01
https://www.nxtbook.com/sosland/bs/2016_04_01
https://www.nxtbook.com/sosland/bs/2016_03_01
https://www.nxtbook.com/sosland/bs/2016_02_01
https://www.nxtbook.com/sosland/bs/2015_12_01
https://www.nxtbook.com/sosland/bs/2015_11_01
https://www.nxtbook.com/sosland/bs/2015_10_01
https://www.nxtbook.com/sosland/bs/2015_09_01
https://www.nxtbook.com/sosland/bs/2015_08_01
https://www.nxtbook.com/sosland/bs/2015_07_01
https://www.nxtbook.com/sosland/bs/2015_06_01
https://www.nxtbook.com/sosland/bs/2015_05_02
https://www.nxtbook.com/sosland/bs/2015_04_01
https://www.nxtbook.com/sosland/bs/2015_03_01
https://www.nxtbook.com/sosland/bs/2015_02_01
https://www.nxtbook.com/sosland/bs/2014_12_01
https://www.nxtbook.com/sosland/bs/2014_11_01
https://www.nxtbook.com/sosland/bs/2014_10_01
https://www.nxtbook.com/sosland/bs/2014_09_01
https://www.nxtbook.com/sosland/bs/2014_08_01
https://www.nxtbook.com/sosland/bs/2014_07_01
https://www.nxtbook.com/sosland/bs/2014_06_01
https://www.nxtbook.com/sosland/bs/2014_05_01
https://www.nxtbook.com/sosland/bs/2014_04_01
https://www.nxtbook.com/sosland/bs/2014_03_01
https://www.nxtbook.com/sosland/bs/2014_02_01
https://www.nxtbook.com/sosland/bs/2013_12_01
https://www.nxtbook.com/sosland/bs/2013_11_01
https://www.nxtbook.com/sosland/bs/2013_10_01
https://www.nxtbook.com/sosland/bs/2013_09_01
https://www.nxtbook.com/sosland/bs/2013_08_01
https://www.nxtbook.com/sosland/bs/2013_07_01
https://www.nxtbook.com/sosland/bs/2013_06_01
https://www.nxtbook.com/sosland/bs/2013_05_01
https://www.nxtbook.com/sosland/bs/2013_04_01
https://www.nxtbook.com/sosland/bs/2013_03_01
https://www.nxtbook.com/sosland/bs/2013_02_01
https://www.nxtbook.com/sosland/bs/2012_12_01
https://www.nxtbook.com/sosland/bs/2012_11_01
https://www.nxtbook.com/sosland/bs/2012_10_01
https://www.nxtbook.com/sosland/bs/2012_09_01
https://www.nxtbook.com/sosland/bs/2012_08_01
https://www.nxtbook.com/sosland/bs/2012_07_01
https://www.nxtbook.com/sosland/bs/2012_06_01
https://www.nxtbook.com/sosland/bs/2012_05_01
https://www.nxtbook.com/sosland/bs/2012_04_01
https://www.nxtbook.com/sosland/bs/2012_03_01
https://www.nxtbook.com/sosland/bs/2012_02_01
https://www.nxtbook.com/sosland/bs/2011_12_01
https://www.nxtbook.com/sosland/bs/2011_11_01
https://www.nxtbook.com/sosland/bs/2011_10_01
https://www.nxtbook.com/sosland/bs/2011_09_01
https://www.nxtbook.com/sosland/bs/2011_08_01
https://www.nxtbook.com/sosland/bs/2011_07_01
https://www.nxtbook.com/sosland/bs/2011_06_01
https://www.nxtbook.com/sosland/bs/2011_05_01
https://www.nxtbook.com/sosland/bs/2011_04_01
https://www.nxtbook.com/sosland/bs/2011_03_01
https://www.nxtbook.com/sosland/bs/2011_02_01
https://www.nxtbook.com/sosland/bs/2010_12_01
https://www.nxtbook.com/sosland/bs/2010_11_01
https://www.nxtbook.com/sosland/bs/2010_10_01
https://www.nxtbook.com/sosland/bs/2010_09_01
https://www.nxtbook.com/sosland/bs/2010_08_01
https://www.nxtbook.com/sosland/bs/2010_07_01
https://www.nxtbook.com/sosland/bs/2010_06_01
https://www.nxtbook.com/sosland/bs/2010_05_01
https://www.nxtbook.com/sosland/bs/2010_04_01
https://www.nxtbook.com/sosland/bs/2010_03_01
https://www.nxtbook.com/sosland/bs/2010_02_01
https://www.nxtbook.com/sosland/bs/2009_12_01
https://www.nxtbook.com/sosland/bs/2009_11_01
https://www.nxtbook.com/sosland/bs/2009_10_01
https://www.nxtbook.com/sosland/bs/2009_09_01
https://www.nxtbook.com/sosland/bs/2009_08_01
https://www.nxtbook.com/sosland/bs/2009_07_01
https://www.nxtbook.com/sosland/bs/2009_06_01
https://www.nxtbook.com/sosland/bs/2009_05_01
https://www.nxtbook.com/sosland/bs/2009_04_01
https://www.nxtbook.com/sosland/bs/2009_03_01
https://www.nxtbook.com/sosland/bs/2009_02_01
https://www.nxtbook.com/sosland/bs/2008_12_01
https://www.nxtbook.com/sosland/bs/2008_11_01
https://www.nxtbook.com/sosland/bs/2008_10_01
https://www.nxtbook.com/sosland/bs/2008_09_01
https://www.nxtbook.com/sosland/bs/2008_08_01
https://www.nxtbook.com/sosland/bs/2008_07_01
https://www.nxtbook.com/sosland/bs/2008_06_01
https://www.nxtbook.com/sosland/bs/2008_05_01
https://www.nxtbook.com/sosland/bs/2008_04_01
https://www.nxtbook.com/sosland/bs/2008_03_01
https://www.nxtbook.com/sosland/bs/2008_02_01
https://www.nxtbook.com/sosland/bs/2007_12_01
https://www.nxtbook.com/sosland/bs/2007_11_01
https://www.nxtbook.com/sosland/bs/2007_10_01
https://www.nxtbook.com/sosland/bs/2007_09_01
https://www.nxtbook.com/sosland/bs/2007_08_01
https://www.nxtbook.com/sosland/bs/2007_07_01
https://www.nxtbook.com/sosland/bs/2007_06_01
https://www.nxtbook.com/sosland/bs/2007_05_01
https://www.nxtbook.com/sosland/bs/2007_04_01
https://www.nxtbook.com/sosland/bs/2007_02_01
https://www.nxtbook.com/sosland/bs/2006_12_01
https://www.nxtbook.com/sosland/bs/2006_11_01
https://www.nxtbook.com/sosland/bs/2006_10_01
https://www.nxtbook.com/sosland/bs/2006_09_01
https://www.nxtbook.com/sosland/bs/2006_08_01
https://www.nxtbook.com/sosland/bs/2006_07_01
https://www.nxtbook.com/sosland/bs/2006_06_01
https://www.nxtbook.com/sosland/bs/2006_05_01
https://www.nxtbook.com/sosland/bs/2006_04_01
https://www.nxtbook.com/sosland/bs/2006_03_01
https://www.nxtbook.com/sosland/bs/2006_02_01
https://www.nxtbook.com/sosland/bs/2005_12_01
https://www.nxtbook.com/sosland/bs/2005_11_01
http://digitalbs.bakingbusiness.com/sosland/bs/2005_10_01
http://digitalbs.bakingbusiness.com/sosland/bs/2005_09_01
http://digitalbs.bakingbusiness.com/sosland/bs/2005_08_01
http://digitalbs.bakingbusiness.com/sosland/bs/2005_07_01
http://digitalbs.bakingbusiness.com/sosland/bs/2005_06_01
http://digitalbs.bakingbusiness.com/sosland/bs/2005_05_01
http://digitalbs.bakingbusiness.com/sosland/bs/2005_04_01
http://digitalbs.bakingbusiness.com/sosland/bs/2005_03_01
http://digitalbs.bakingbusiness.com/sosland/bs/2005_02_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_12_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_11_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_10_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_09_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_08_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_07_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_06_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_05_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_04_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_03_01
http://digitalbs.bakingbusiness.com/sosland/bs/2004_02_01
http://digitalbs.bakingbusiness.com/sosland/bs/2003_12_01
http://digitalbs.bakingbusiness.com/sosland/bs/2003_11_01
https://www.nxtbookmedia.com