Upgrade to Pro — share decks privately, control downloads, hide ads and more …

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

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.

BEMA

June 21, 2019
Tweet

More Decks by BEMA

Other Decks in Business

Transcript

  1. 1
    Industry View from the Top
    Prepared June 2019 for:
    Baking & Snack Economic Census of Manufacturers Analysis

    View full-size slide

  2. 2
    An analysis of the
    Economic Census of
    Commercial Baking Manufacturers
    Prepared June 2019 for:
    Baking & Snack Economic Census of Manufacturers Analysis

    View full-size slide

  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

    View full-size slide

  4. Number of Establishments
    4
    Economic Census of Manufacturers Analysis, June 2019

    View full-size slide

  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

    View full-size slide

  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

    View full-size slide

  7. Value of Shipments
    7
    Economic Census of Manufacturers Analysis, June 2019

    View full-size slide

  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

    View full-size slide

  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

    View full-size slide

  10. Cost of Materials
    10
    Economic Census of Manufacturers Analysis, June 2019

    View full-size slide

  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

    View full-size slide

  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

    View full-size slide

  13. Capital Expenditures
    13
    Economic Census of Manufacturers Analysis, June 2019

    View full-size slide

  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

    View full-size slide

  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

    View full-size slide

  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

    View full-size slide

  17. Employment
    17
    Economic Census of Manufacturers Analysis, June 2019

    View full-size slide

  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

    View full-size slide

  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

    View full-size slide

  20. Wrap up
    Key indicators
    as a % of Value of Shipments
    20
    Economic Census of Manufacturers Analysis, June 2019

    View full-size slide

  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

    View full-size slide

  22. 22
    Industry View from the Top
    Prepared June 2019 for:
    Baking & Snack Economic Census of Manufacturers Analysis

    View full-size slide