Industry Analysis & Industry Trends
Stagnant performance for the Cereal Production industry over the past five years was largely guided by overall economic conditions. As per capita disposable income declined during the recession, more consumers turned to cereal as a healthy and inexpensive breakfast option. Over the five years to 2019, higher disposable income, coupled with the growing number of health-conscious consumers, will push companies to introduce more healthful products or create new cereal lines that will generate more demand... purchase to read more
Industry Report - Industry Investment Chapter
Cereal production requires substantial capital investment, which leads to a high capital intensity. However, the level of capital intensity varies considerably with the size of the manufacturer. Small to medium-sized facilities have a low capital-to-labor ratio because they lack the resources to invest in expensive technology and equipment, and they have to employ more labor to increase production volumes. For every dollar spent on wages, operators spend an average of $0.40 in capital investment.
Modern manufacturing plants require high capital expenditure on advanced technology and equipment that aim to increase productivity without the need for additional labor... purchase to read more