Industry Analysis & Industry Trends
While the industry struggled in the midst of low demand and high input costs in the past five years, firms are anticipated to experience a modest recovery in the next five-year period. Operators are increasingly catering their products to health-conscious consumers, introducing innovative snack foods that incorporate healthy ingredients. Further, new technologies will allow manufacturers to increase efficiency while lowering costs. Higher household disposable income will also drive demand for cookies and crackers going forward... purchase to read more
Industry Report - Industry Investment Chapter
Industry operators require a moderate level of capital investment because producers often need to use mixers, conveyor belts and other machines to increase production efficiencies. As more companies rely on machines to automate processes, they spend more on repair costs. For every dollar spent on wages, companies spend about $0.25 on capital.
However, the level of capital intensity varies considerably with regard to the size of the producer. Small and medium-size companies typically have a smaller capital-to-labor ratio than larger companies because they lack the resources to invest in expensive technology and equipment. Therefore, they rely more on labor than machinery to increase production volumes... purchase to read more