What are your company's biggest business challenges in the next 12 to 18 months? Labor costs Food safety Need for greater automation Inflationary pressures Supply chain challenges Transportation and logistics costs Changing consumer attitudes/preferences Regulatory/legislative concerns Rising health care/insurance costs Capital constraints 69% Attracting and retaining a quality workforce 66% Increased raw material costs 61% 56% 44% 42% 34% 33% 27% 26% 25% Weaker domestic economy and product sales 25% Trade uncertainties 24% 20% Weaker consumer demand for baked goods 16% Cybersecurity 13% Weaker global growth and slower export sales 6% Note: Multiple responses accepted. ing spend because of rising costs and 40% increasing spend due to inflation. " Rising raw material costs are pulling at capital spending in both directions, " Hellmer said. " They're either holding off in the hopes that costs will come down or they're investing now in automation to eventually reduce costs. Inflationary pressures and interest rates are also inhibiting their plans. They may still be spending, but they're just not spending as much right now. " Lack of labor continues to cause bakers to bolster their capital spending with 41% reporting some level of increase. More than half of bakers reported that supply chain disruption and interest rates will not affect their company capital spending plans, while about half indicated extended equipment lead times were not having an effect. " It's surprising to me that half of bakers said extended lead times aren't impacting their decision because it's a part of every conversation around equipment purchases, " Miller said. " It's changed the way we have to engage bakers. Suppliers have to be more proactive and communicate with customers earlier to accommodate the longer lead times. " While 2025's investment attitudes may be business as usual compared to 2024, the positive outlook for both individual companies and the industry at large signify a baking industry settling down. Bakers seem ready to exit the tunnel into a more business-friendly, stable future. * bakingbusiness.com | february 2025 | Baking & Snack 33 QUALITY CONSISTENCY and Discover the North Dakota Difference Call 1-800-538-7721 * www.ndmill.com FSSC 22000 CERTIFIEDhttp://www.ndmill.com