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BEMA Convention 2019 - An analysis of the Economic Census of Commercial Baking Manufacturers

C069a2dc1f79c12a855d10325d51f204?s=47 BEMA
June 21, 2019

BEMA Convention 2019 - An analysis of the Economic Census of Commercial Baking Manufacturers

An analysis of the economic census of commercial baking manufacturers as provided at the BEMA Convention 2019.

C069a2dc1f79c12a855d10325d51f204?s=128

BEMA

June 21, 2019
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  1. 1 Industry View from the Top Prepared June 2019 for:

    Baking & Snack Economic Census of Manufacturers Analysis
  2. 2 An analysis of the Economic Census of Commercial Baking

    Manufacturers Prepared June 2019 for: Baking & Snack Economic Census of Manufacturers Analysis
  3. The Economic Census of Manufacturers provides a detailed portrait of

    the U.S. economy once every five years covering years ending in ‘2’ and ‘7’. • Data presented in this deck were compiled from the full Economic Census studies for the Commercial Baking Industry conducted once every five years between 1982 and 2012.* • Also included is the most recent Commercial Baking Industry economic data from the 2016 Annual Survey of Manufacturers (ASM), based on a sample of businesses (vs. a full census). *Note: 2017 Economic Census data will be released in mid-2019 3 Economic Census of Manufacturers Analysis, June 2019
  4. Number of Establishments 4 Economic Census of Manufacturers Analysis, June

    2019
  5. 704 691 711 929 978 956 2002 2007 2012 Establishments

    by Number of Employees: Commercial Baking Industry, 2002-2012 Census Establishments with 20-99 employees Establishments with 100+ employees Number of production facilities steady since 2002 2.2% 1,633 1,669 1,667 -0.1% 5 Economic Census of Manufacturers Analysis, June 2019
  6. 2012: 1,667 commercial baking plants with more than 20 employees

    339 72 82 64 72 47 35 518 132 89 73 57 80 7 Bread and cake Dry pasta, dough, flour mixes Snack food Frozen cakes, pies and other pastries Cookie and cracker Tortilla Breakfast cereal Establishments by Number of Employees: 2012 Census Establishments with 20-99 employees Establishments with 100+ employees Commercial Baking Industry Totals Establishments with: 20-99 employees 956 100+ employees 711 TOTAL establishments (20+ employees) 1,667 6 Bread & Cake=establishments primarily engaged in manufacturing fresh and frozen bread and bread-type rolls and other fresh bakery (except cookies and crackers) products. Economic Census of Manufacturers Analysis, June 2019
  7. Value of Shipments 7 Economic Census of Manufacturers Analysis, June

    2019
  8. 2002-2016: Value of shipments increased 18% in 2007 and 2012,

    slowing in recent years 66,839 78,693 92,614 99,740 2002 Census 2007 Census 2012 Census 2016 ASM* Value of Shipments: Commercial Baking Industry, 2002-2016 ($ million) (8%) 18% 18% *ASM=American Survey of Manufacturers 8 Note: Value of shipments = dollar value of products sold by manufacturing establishments Economic Census of Manufacturers Analysis, June 2019
  9. 2016: Bread and cake account for one-third of value of

    shipments in commercial baking 32,123 23,420 13,612 10,986 9,435 5,918 4,245 Bread and cake Snack food Dry pasta, dough, mixes Cookie and cracker Breakfast cereal Frozen cakes, pies, pastries Tortilla Value of Shipments: 2016 ASM* ($ million) 23% Commercial Baking Industry Total ($ million) Value of shipments 99,740 32% 14% 11% 9% 6% 4% *ASM=American Survey of Manufacturers 9 Economic Census of Manufacturers Analysis, June 2019
  10. Cost of Materials 10 Economic Census of Manufacturers Analysis, June

    2019
  11. 2002-2016: Cost of materials increased significantly in 2007 and 2012,

    slowing in recent years 20,891 27,307 40,344 40,532 2002 Census 2007 Census 2012 Census 2016 ASM* Cost of Materials: Commercial Baking Industry, 2002-2016 ($ million) (.5%) 48% 31% Cost of materials includes raw materials, equipment, packaging, fuel, electricity *ASM=American Survey of Manufacturers 11 Economic Census of Manufacturers Analysis, June 2019
  12. 2002 2007 2012 2016 Value of shipments $66,839 $78,763 $92,614

    $99,740 Cost of materials $20,891 $27,307 $40,344 $40,532 % of Value of shipments 31% 35% 44% 41% *2016 ASM=American Survey of Manufacturers 12 2002-2016: Materials costs account for higher proportion of overall value of shipments compared to 2002 Cost of Materials (COM) as a % of Value of Shipments: Commercial Baking Industry ($ million) 4% 9% 3% Economic Census of Manufacturers Analysis, June 2019
  13. Capital Expenditures 13 Economic Census of Manufacturers Analysis, June 2019

  14. CapEx slowing in recent years 295 457 432 380 1563

    1744 1939 2091 2002 Census 2007 Census 2012 Census 2016 ASM* Capital Expenditures: Commercial Baking Industry, 2002-2016 ($ million) Machinery & equipment Buildings & other structures (4%) 2,201 2,470 8% *ASM=American Survey of Manufacturers 2,371 1,859 18% 14 Economic Census of Manufacturers Analysis, June 2019
  15. 2002 2007 2012 2016 Value of shipments $66,839 $78,763 $92,614

    $99,740 Capital expenditures $1,859 $2,201 $2,371 $2,470 % of Value of shipments 2.8% 2.8% 2.6% 2.5% *2016 ASM=American Survey of Manufacturers 15 2002-2016: 2016 capital expenditures account for slightly smaller proportion of overall value of shipments compared to previous years Capital expenditures as a % of Value of Shipments: Commercial Baking Industry ($ million) Economic Census of Manufacturers Analysis, June 2019
  16. Top equipment spending goals: Decrease labor costs and increase capacity

    for existing products 35% 33% 28% 23% 19% 14% 12% 9% 9% 5% 2% Decrease labor costs Increase capacity for existing products Increase production speed/capacity Accommodate for lack of labor Increase capacity for new products Improve process capability/flexibility (i.e., yield, decrease changeover time) Improve product quality/consistency/accuracy Improve food safety/sanitation Reduce maintenance/repair costs Reduce waste/energy costs Track/trace origins of raw ingredients/finished product 2019 Equipment Spending Goals Source: 2018 Baking & Snack Equipment Trends Study 16 Economic Census of Manufacturers Analysis, June 2019
  17. Employment 17 Economic Census of Manufacturers Analysis, June 2019

  18. Commercial baking employed nearly 250,000 workers in 2016 295.6 273.3

    246.0 249.6 2002 Census 2007 Census 2012 Census 2016 ASM Number of Employees: Commercial Baking Industry, 2002-2016 (thousand) ASM=American Survey of Manufacturers 18 Economic Census of Manufacturers Analysis, June 2019
  19. 2002 2007 2012 2016 $ Value of shipments ($ million)

    $66,839 $78,763 $92,614 $99,740 # of employees 295,600 273,300 246,000 249,600 $ Value of shipments per employee $226,113 $287,936 $376,480 $399,599 * 2016 ASM=American Survey of Manufacturers 19 2002-2016: Dollar sales per employee on the rise since 2002 $ Value of Shipments per Employee: Commercial Baking Industry 27% 31% 6% Economic Census of Manufacturers Analysis, June 2019
  20. Wrap up Key indicators as a % of Value of

    Shipments 20 Economic Census of Manufacturers Analysis, June 2019
  21. Bread & Cake Cookie & Cracker Snack Food Value of

    shipments $32,123 $10,986 $23,420 Cost of materials $10,769 $4,807 $6,935 % of Value of shipments 33% 44% 30% Capital expenditures $812 $336 $494 % of Value of shipments 2.5% 3.1% 2.1% # of employees (in thousands) 109,900 30,700 36,300 $ Value of Shipments per employee (in thousands) $292,293 $357,850 $645,179 *ASM=American Survey of Manufacturers 21 2016 ASM: Key Indicators as a % of Value of Shipments By Segment ($ million) Economic Census of Manufacturers Analysis, June 2019
  22. 22 Industry View from the Top Prepared June 2019 for:

    Baking & Snack Economic Census of Manufacturers Analysis