Upgrades, Additions a Big Driver of U.S. Packaging Construction

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

U.S. construction projects involving food packaging, particularly line additions and automation upgrades, are on the books for a wide range of products throughout the country.

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An Industry Driver

Packaging lines are a big component of the Food & Beverage Industry, accounting for billions of dollars' worth of plant investments in North America and throughout the world. Construction involving packaging lines is almost always part of new plant being built at a grassroot or brownfield site, or can in the form of line additions or upgrades at existing plants. Increasingly, lines are being built with substantial amounts automation or are being upgraded to do so in order to improve efficiency, human error and labor costs. Packaging represents a substantial spending component for both the U.S. Food & Beverage and Pharmaceutical-Biotech industries.

Automation

Industrial Info Resources data show more than 160 projects on the books for automation upgrades at food and beverage plants in the U.S., accounting for more than $510 million specifically geared to automated packaging lines alone.

Last year, Taylor Fresh Foods, one of the leading fresh-cut vegetables and salad producers in the U.S. through its brand Taylor Farms, announced that it would automate all of its packaging lines. This initiative is well underway at the company's plant in Gonzales, California, where Taylor kicked automation upgrades for packaging at its plant last year. Subscribers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

Automation is par for the course in the U.S. Pharmaceutical-Biotech Industry, accompanying grassroot plant buildout or often as a part of a larger plant expansion. Packaging, for example, is very much included in blockbuster GLP-1 manufacturer Eli Lilly's sweeping U.S. spending plants, particularly as part of expansion and renovation at company campuses in Wisconsin and Indiana.

Packaging Line & Equipment Additions

The addition of new packaging lines also accounts for hundreds of millions of dollars in anticipated spending at U.S. food and beverage plants. Cavendish Farms, for example, has earmarked $15 million for packaging equipment additions at its frozen potato products plant in Jamestown, North Dakota. The packaging element is part of other upgrades at the plant, which also include a potential wastewater treatment addition and a tunnel freezer rebuild.

Key Takeaways

• Hundreds of millions dollars worth of potential U.S. projects relating to packaging are lined up for the future.
• In addition to being a component a new-build plant, packaging projects are often line additions or automation upgrades.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).