Food Plant Construction and Site Selection - INSIDE: Food Processing
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eHANDBOOK
Food Plant
Construction
and Site
Selection
INSIDE:
Pandemic-Inspired Changes in
Food Plant Construction p2
Food Facility Site Selection
Checklist pg6
SPONSORED BY
www.FoodProcessing.com
Pandemic-Inspired Changes
in Food Plant Construction
After being suppressed by the pandemic, capital expenditures are poised to
come back – but with important changes.
By Food Processing
L
ike many aspects of the economy, capi- According to Melius Research, industrial
tal expenditures in the food & beverage firms of all types that reported results
industry tumbled last year. But the in the first half of 2020 predict a 20%
industry is getting ready to resume building. increase in capital expenditures.
Big food processors had to scale back plans Architecture, engineering and construction
to build, renovate, add lines or generally (AEC) firms are starting to see food and bev-
make big improvements, as the pandemic erage processors greenlight capital expansion
forced them to concentrate on making projects that were delayed last year.
adjustments to their current facilities. But
now they are preparing for the economic One effect of the pandemic has been to
boost expected as the pandemic ends. make companies at least temporarily favor
renovation or expansion over new con-
Of the 31 publicly traded major food & bev- struction. Of the 35 sites in our list of plant
erage companies Food Processing has construction projects, only nine were new
researched, 23 spent less on capital projects in plants, compared with 14 last year.
2020 than they had budgeted. But for 2021, all
but four of those plan to spend more. Overall, OPPORTUNITIES
those 31 have budgeted $16.3 billion in capital Although the pandemic suppressed a
expenditures this year, a 13% increase over lot of capital spending, it also created
what they actually spent in 2020. some opportunities for projects, as
companies struggled to adjust to new
That trend mirrors what’s going on with conditions. One of the biggest and best-
American manufacturing as a whole. known effects of the pandemic was a
eHANDBOOK: Food Plant Construction and Site Selection 2
www.FoodProcessing.com
TOP CURRENT PROJECTS
COMPANY LOCATION PRODUCTS PROJECT TYPE SIZE COST COMPLETION
Nestlé Williamsburg Twp., Ohio Pet food New 1,200 $550 2023
Nestlé Hartwell, Ga. Pet food Expansion n/a 550 2025
CJ Foods USA Sioux Falls, S.D. Asian foods New 700 500 2025
Nestlé Eden, N.C. Pet food Acquisition/renovation n/a 450 2022
Keurig Dr Pepper Moore, S.C. Coffee New 708 350 Aug. 2021
Atlantic Sapphire Miami, Fla. Seafood New 1,100 340
McCain Foods Othello, Wash. French fries Expansion 170 300 n/a
AquaCon Federalsburg, Md. Aquaculture New n/a 300 2024
Clemens Food Group Hatfield, Pa. Bacon New n/a 228 2024
Lindt & Spruengli Stratham, N.H. Candy Expansion 200 2022
Frito-Lay Perry, Ga. Snacks Expansion n/a 200 Third quarter 2021
Mars Petcare Fort Smith, Ark. Pet food Expansion 200 145 2022
Hershey Co. Stuarts Draft, Va. Candy Expansion 90 135
Diageo Lebanon, Ky. Liquor New 72 130 June 2021
Ken’s Foods McDonough, Ga. Salad dressings, marinades Expansion n/a 103 Early 2022
Frito-Lay Pulaski, Tenn. Snacks Expansion 100 2022
Maple Leaf Foods Indianapolis Tempeh (soy protein) Acquisition/renovation 118 100 2022
Wells Enterprises Dunkirk, N.Y. Ice cream Expansion n/a 87 n/a
Boston Beer Co. Cincinnati Beer Expansion n/a 85 Late 2021
Conagra Brands Russellville, Ark. Frozen foods Expansion 84 2022
Simmons Pet Food Dubuque, Iowa Pet food Renovation/retrofit 250 80 2023
J.M. Smucker Longmont, Colo. Sandwiches Expansion 240 80 Fall 2022
Pilgrim’s Pride Cold Spring, Minn. Poultry Expansion n/a 75 Late 2021
Ferrero North America Bloomington, Ill. Chocolate Expansion 70 75 n/a
Niagara Bottling Florence, S.C. Bottled water New 502 70 Early 2021
Size is in thousands of square feet; cost is millions of U.S. dollars.
switch from foodservice to retail. That led chart, three of the top four projects are new
some processors with some dependence or renovated pet plants for Nestlé Purina,
on foodservice to reconfigure lines for totaling $1.5 billion. Mars Petcare and Sim-
the retail channel. In some cases, that mons Pet Food are also expanding plants.
also meant different types of packaging
formats … and packaging machinery. FLEXIBILITY NEEDED
The priorities of companies building or
But foodservice is likely to come roaring renovating plants haven’t exactly been
back once restaurants reopen to full capacity. changed by the pandemic, but some of
One of the biggest projects, a $300 million them have been intensified, with more
potato-processing plant for McCain Foods in of an emphasis on flexibility. This isn’t
Othello, Wash., was paused from April to Sep- surprising, since one of the biggest
tember of last year due to the pandemic. problems for the industry during the
pandemic was having to shift abruptly
The pandemic caused a big increase in between products and packaging formats.
pet adoptions by bored or lonely families
or individuals, and that’s resulted in more AEC firms we talked to see customer priorities
new pet food plants. Again referring to our as speed to market; automation, especially
eHANDBOOK: Food Plant Construction and Site Selection 3
www.FoodProcessing.com
through artificial intelligence and robotics; discourage mingling among employees.
availability of cold storage space; manufactur- Common spaces, break areas and worksta-
ing redundancy; and consolidation. tions are all spaces that are being evaluated
and reconfigured to promote more distance
Flexibility has become more important in between workers as well as to control the
the face of the pandemic, with many pro- flow of personnel.
cessors having to switch quickly between
products, ramping up some SKUs while In addition, the pandemic has brought a
scaling back or eliminating others. It will new emphasis on ventilation, with HVAC
continue to be important as they cope with equipment makers researching how best to
the pandemic’s end, if consumer prefer- filter airborne droplets – COVID’s primary
ences shift back to previous patterns. source of transmission – out of the air.
WHAT’S TO COME? Probably the most important large-scale
Of course, the pandemic hasn’t disappeared initiative to deal with any future pandemic
yet. Many experts wonder if there will is something of an industry imperative
be a future pandemic, and if so, what anyway: automation. It’s the only viable
should be done to prepare for it? long-term strategy for establishing greater
distance between workers, in the same
When food companies have reconfigured or space, while maintaining the same output.
altered production lines in response to the
pandemic, it has mostly been in a reactive Many companies are taking a different view
way, working within the space at hand to of automation and robotics projects now,
install barriers or take other measures. That after dealing with the past year’s labor
may continue in a proactive way. Compa- shortages and worker health concerns.
nies planning to build a new space have to Automated lines will not only improve effi-
decide whether to accommodate require- ciency and flexibility but may address the
ments like social distancing in case it’s need for continued spacing of employees.
required by another pandemic.
With the end of the pandemic at least the-
Many plants already feature restrictions on oretically approaching, America is eager to
personnel flow, for example between sani- shake off its shackles – and the food indus-
tary and less-sanitary areas. The pandemic try will be there to accommodate it.
has led many companies to reconfigure
flow to allow temperature scanning or ther- Read the complete story on
FoodProcessing.com.
mal imaging. Future designs should also
eHANDBOOK: Food Plant Construction and Site Selection 4
Got a Taste for
Design Done Right?
ESI always designs food facilities from the inside out.
Need to minimize worker touchpoints? Maximize work floor space? ESI will find
the fresh efficiencies in your process and then design the walls around it.
Let us offer you a recipe for success!
Automation / Cold Storage / Food Distribution & Processing / Logistics
Designing and Building Visit: esigroupusa.com
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Nationwide
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Food Facility Site
Selection Checklist
By Timothy Gibbons, VP of Design, ESI Group USA
C
ongratulations, you are considering
buying land for your future process
or distribution facility. Site selec-
tion is the first major decision you will make
about your project, and the most critical.
Consider every factor as you look at differ-
ent sites so you can compare your options
critically. These key requirements should
be outlined and made available to the real
estate broker so they can help narrow down as obtaining a Phase One Environmen-
the site search and provide you only quali- tal Assessment, determining if there are
fying site options. any Environmental Operating Permits,
1. Due Diligence. Due Diligence is a broad Wetlands or regulations pertaining to
term that business and real estate attor- Flood Zones. As well, an investigation
neys and professionals use but is often must be conducted to determine if
misunderstood by clients. Typically any endangered species reside on the
the term is used to refer to the inspec- site that may limit its use or, if there is
tion and investigation of real property, an airport nearby, the FAA may have
personal property or a business entity height and use restrictions.
conducted before a buyer makes the 2. Location. Is there ready access to major
final decision to purchase. There are highways leading to the site? How do
many factors that must be considered these interact with other major high-
prior to the purchase of property such ways? Like two sites but can’t decide?
eHANDBOOK: Food Plant Construction and Site Selection 6
www.FoodProcessing.com
Perform an analysis on freight/delivery the site and its ability to grow in a bal-
costs on both and you will be surprised anced nature will have longstanding
at how quickly savings are realized. operational and financial ramifications
Also, if delivery from the site is done on for the facility and the company. Also,
a daily basis, knowing the range of com- consider municipal restrictions that
pany drivers is critical to avoid having limit site development. This percentage
to double up on operators. Work force or ratio of the size of the building to
availability should also be considered. the land on which it resides is called the
3. Site size. When evaluating a site for “land to building ratio.” The building
size suitability, examine the ability of can get no bigger than the allowable
the site to fit the facility at full build land to building ratio. Know this restric-
out. Have your architect design a com- tion prior to purchase.
plete master plan for the site so any 4. Access. Easy entry and exit from the
future expansion is thought out and interstate highways will make life easier
done with reason. This involves more on you and provide added incentive to
than just drawing boxes that represent choose your facility. Check right- and
future expansions. It should include left-turn access, curb-cut locations
production/storage space, mechan- (existing and potential), traffic islands,
ical room expansion, office growth turn lanes, medians and other traffic
and truck yard, including maneuvering impediments leading to the develop-
room. The location of the building on ment. Also visit the site during busy
eHANDBOOK: Food Plant Construction and Site Selection 7www.FoodProcessing.com
traffic times to see if nearby traffic con-
trol devices cause backups that would
inconvenience clients. Also consider
if crossing a rail line, the potential for
blockages caused either by shunting
railroad cars or worse, derailment. Both
issues can severely affect the desired
access to the site.
5. Topography and Subsurface Condi-
tions. Look at the overall lay of the land;
check for extreme slopes or depressions
that could make development difficult and other amenities such as sidewalks,
or more expensive. Remember, moving hydrants, regional stormwater detention,
a lot of dirt around is costly. And even a et al. It is important however to verify the
flat site can be difficult if it has no nat- capacity of each so the building oper-
ural drainage for storm water. As your ation can be supported now and in the
interest in the property increases, be future. This is particularly true of water
sure to perform a geotechnical analysis and sewer. Water tanks and waste water
of the site to determine any subsurface treatments plants are expensive add-ons
conditions that may make building more to make the building work. Otherwise,
expensive to construct. This should be the building owner will need to supple-
performed by a geotechnical engineer- ment. In the case of food processing and
ing company contracted by you. Do not distribution, refrigeration systems con-
rely on any report supplied by the cur- sume large quantities of water and some
rent owner of the property. municipalities, especially in the west,
6. Know the Municipality. Meet with cannot guarantee water requirements
Zoning and Development regulators needed for operation.
to determine the long-term plans for 8. None of the items listed above comes
the future of the surrounding areas. without a cost or time investment. Be
Building in an area near residential prepared to spend some money up front
developments will have long-term to safeguard your decision and help you
ramifications on the operation and select the best piece of property for the
expansion capabilities. company’s future.
7. Amenities. Verify that the site has
CLICK HERE to check out some of ESI
required improvements, such as elec- Group’s trade education pieces discussing
site selection, among other topics.
trical, sewer, water, telephone, gas,
eHANDBOOK: Food Plant Construction and Site Selection 8You can also read
