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FOOD & BEVERAGE PROCESSING
MARKETING & BUSINESS DEVELOPMENT STRATEGY
Prepared for:
Indiana Michigan Power
March 2, 2018
i
TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................ 1
PROJECT BACKGROUND ............................................................................ 8
METHODOLOGY ........................................................................................ 10
BAKING AND SNACK FOOD .................................................................... 19
DAIRY ......................................................................................................... 30
FRUIT AND VEGETABLE PROCESSING ...................................................... 42
MEAT AND POULTRY ................................................................................. 54
BEVERAGE ................................................................................................. 67
CONFECTIONERY ...................................................................................... 77
FLAVORS, DRESSINGS, AND SEASONINGS .............................................. 85
ANIMAL FOOD .......................................................................................... 93
LABOR ANALYSIS .................................................................................... 100
WATER AND WASTEWATER ..................................................................... 111
APPENDICES ............................................................................................ 116
Executive Summary
1
EXECUTIVE SUMMARY
Austin Consulting (Austin) developed a research based Marketing and Business
Development Strategy for Indiana Michigan Power (I&M) to drive growth within
the food and beverage processing and value-added agricultural industries. The
food and beverage subsector has been identified by I&M and its regional
economic development partners as a target growth industry. The industry plays
an important role in the region’s industrial economy and the region has
demonstrated success in attracting investment from food and beverage
companies. Between 2006 and 2016, the region added 24% employment in the
subsector, while U.S. subsector employment grew by just 8% during that time.
A wide range of food and beverage products are produced within the region.
Baking and Snack Food accounts for the largest share of employment in the
industry, followed by Dairy, Fruit and Vegetable Processing, Meat and Poultry
and Beverage. The Beverage group has experienced the most significant
growth in employment since 2006, followed by Dairy, and Meat and Poultry.
Employment totals and employment growth in each industry group are
highlighted in Figure ES.1 below.
Austin conducted in-depth research into each of these industry groups to
understand what regional assets support these companies, and what issues or
barriers may exist that would limit future growth opportunity within each group.
An important part of this research included a detailed analysis of the regional
supply chain that supports each of these industry groups. Figure ES.2 below
Description2016
Jobs
% Change
in Jobs
(2006-2016)
Baking and Snack Food 4808 26%
Dairy 2482 40%
Fruit and Vegetable Processing 2059 -17%
Meat and Poultry 1811 40%
Beverage 1515 248%
Confectionery 1080 26%
Flavors, Dressings, and Seasonings 559 16%
Animal Food 258 -17%
Figure ES.1: Food and Beverage - Overview of
the I&M Region
Source: Emsi 2017.3 Class of Worker
Executive Summary
2
demonstrates the important supply chain connections between agricultural
resources and the various stages of processing of food and beverage products.
Austin examined existing supply chain assets and relationships, and looked for
gaps that could reveal potential opportunities.
Figure ES.2: Food and Beverage Supply Chain
Agricultural Products Primary processing Secondary processing Tertiary processing
Fruits and vegetables Sorting, grading,
cleaning, cutting
Packaged fresh,
freezing, canning
Blending / repackaging,
potato chips, sauces, juices,
pickles
Grains Sorting, grading,
drying
Milled corn / wheat,
refined corn oil, corn
solids / sweeteners,
biofuels, animal feed
Breads, cakes, snacks, tortilla
chips
Oilseeds Sorting, grading Animal feed, soybean
oils, shortening
Salad dressings, baking and
snack foods
Milk Grading,
refrigeration
Fluid milk, cream,
condensed milk
Cottage cheese, ice cream,
cheese, yogurt, butter,
protein products
Eggs Sorting, grading,
cleaning
Liquid / dried egg
products
Pastas, baking and snack
foods, protein products
Meat and poultry Sorting, slaughtering,
refrigeration
Separation, cutting,
rendering, packaging Cooked meats, prepared
meals Aquaculture Sorting, freezing Cutting, packaging
Austin also examined national trends within each industry group to understand
what types of companies are more likely to be expanding based on consumer
preferences, new product development, and other issues affecting each group.
The following summarizes key findings from the research into each industry
group.
Executive Summary
3
Industry Groups
Baking and Snack Food businesses are dispersed throughout the region, with
over 84 businesses in total. These companies produce a wide range of products,
including breads, cookies, crackers, pastries, potato chips, pretzels, tortillas,
popcorn, and other snack foods.
• The industry has access to regional supply chain assets, including proximity
to suppliers of flour, refined oils and fats, and sweeteners.
• The region has demonstrated success in attracting major investment from
both new and existing companies, and forecasted growth projections for
the industry are favorable.
• The industry has important connections to other industry groups, including
Dairy, Fruit and Vegetable Processing and Confectionery.
Dairy companies throughout the region are some of the largest food industry
employers. Products produced by these companies include, fluid milk, cheese,
butter, cream, sour cream, cottage cheese, and ice cream.
• The industry is heavily supported by dairy farms concentrated in Northeast
Indiana and Southern Michigan.
• Regional dairy processors have experienced strong growth, and the area
successfully landed a major Walmart dairy processing facility expected to
come online soon. Forecasted growth projections for the industry group
are also favorable.
• Key opportunities for growth include other value-added products such as
yogurt and cheese, which are currently underrepresented in the area.
Fruit and Vegetable Processing operations are concentrated in the Southwest
Michigan and East Central Indiana areas.
• The industry group’s presence has strong ties to local agricultural
production, especially in the Southwest Michigan area due to the unique
microclimate and soils that support a diverse range of fruit and vegetable
crops.
• Overall, the industry has experienced a decline in employment as some
area processors have been adversely impacted by an increasing
demand for fresh and organic fruit and vegetables over canned
products. Industry growth forecasts both nationally and regionally are not
favorable.
Executive Summary
4
• Opportunities to address some of these challenges include refocusing on
minimally processed products, fresh products, and a growing organic
sector.
Meat and Poultry companies in the region include large-scale poultry processors
and producers of cured meats, prepared meats, and egg products.
• Strong growth within the industry group has been driven by increasing
demand for poultry and pork products, including bacon. Business
expansion projects in and around the I&M region serve as evidence.
• The industry has strong ties to area livestock farms, which have grown to
keep up with increasing demand from processors.
• Growth forecast data for the I&M region is very positive.
Beverage manufacturing employment in the region is heavily concentrated on
alcoholic beverage production, but also includes production of juices and
bottled soda, water, and teas.
• Recent business and employment growth within the sector can be largely
attributed towards growth from start-ups and small-scale craft breweries,
wineries, and distilleries.
• Area fruit production supports the region’s juice and wine producers.
• Growth forecasts for the U.S. and the I&M region are positive. A high level
of innovation and new product development occurring within the
beverage industry presents opportunities for future growth and
diversification.
Confectionery production within the region is largely influenced by two major
confectionery plants which produce non-chocolate confectionery products.
• In comparison to other segments of the food industry, the confectionery
industry has been challenged with growth at the national level.
• Despite national data, employment growth has been very positive within
the I&M region.
Executive Summary
5
Flavors, Dressings, and Seasonings includes a small number of diverse companies
that produce flavorings, extracts, colors, syrups, condiments, dressings, and
other products, which are primary used as ingredients by consumers and other
processors.
• Industry presence in the region is primarily concentrated around the
Kalamazoo area.
• National growth forecasts for the industry are strong, especially for
natural-based food flavorings and ingredients.
• The industry depends on highly educated workers with backgrounds in
food science, chemistry, biochemistry, biology, engineering, and other
science disciplines, which contributes to higher wages than most
segments of the food and beverage industry.
Animal Food production in the area includes pet food manufacturing and
animal feed operations.
• Animal food manufacturing accounts for the smallest share of industry
employment within the region.
• Animal feed plant investments will continue to be influenced by locations
of livestock farms and meat and poultry processing plants.
• National growth forecasts for the industry are favorable.
Supporting Assets
Labor
Austin evaluated the area labor market by looking at employment and wage
data, and gathering feedback from area processors. Median wages within the
occupations that support the food and beverage industry are generally
competitive with or lower than the U.S., which is an advantage for attracting
new facility and expansion projects. A high rate of employment growth within
the industry subsector does not appear to have created significant pressures on
wages based on the most current available data.
However, companies interviewed by Austin also noted more recent pressures on
the labor market which have forced them to increase their wage structures to
attract and retain employees. Improvement in the industrial job market has also
created pressure on many food and beverage companies nationally. Employers
interviewed by Austin frequently cited competition for labor from the
recreational vehicle (RV) and automotive industries, which generally offer higher
Executive Summary
6
wages, as a challenge. Companies located in rural areas furthest from a city
population center cited the greatest challenges.
Food companies interviewed also noted the advantage of being able to recruit
food science graduates from regional universities, including Purdue, Michigan
State, and Ohio State.
Transportation
The regional transportation network is extensive with the presence of Interstates
69, 94, 80/90, and a state and U.S. highway system that supports delivery of
products to and from area food and beverage manufacturers. Food and
beverage processors within the I&M area benefit from the proximity and
connections to two major consumer markets, Chicago and Detroit, and a
central location for Midwest and eastern U.S. distribution.
While some companies benefit from direct access to the area rail network,
many regional food and beverage processors are dependent on intermodal
terminals in Chicago, a major connection hub between eastern and western
U.S. railroad providers. While some companies in the region expressed frustration
with having to truck shipments to and from Chicago for intermodal shipments,
the proximity of these hubs to the region can also be advantageous.
Water and Wastewater
Given the high importance of water and wastewater to food and beverage
production operations, Austin completed a survey of area providers to gather
information on available capacities and costs. While water and wastewater
rates vary significantly from one provider to another, rates evaluated were on
average competitive with comparative rate data from other communities within
each state and the U.S. Notably, several providers offer very low water and
wastewater rates.
Many of the providers surveyed also reported high volumes of available water
and wastewater treatment capacity. Some of the larger regional wastewater
systems indicated that they can also accept high volumes of effluent without
requiring pretreatment. This can be a significant competitive advantage for
attracting food and beverage facilities that would otherwise require investment
in significant pretreatment facilities.
Executive Summary
7
Recommendations
Based on the culmination of research, Austin developed a Marketing and
Business Development Strategy that identified targeted ideas and opportunities
for driving growth in food and beverage processing and value-added
agriculture. Key recommendations include:
• Support and identification of expansion opportunities from existing food
and beverage companies within the region.
• Targeted marketing material development leveraging information on
regional assets.
• Business attraction strategy focused on high growth industry groups for
which the region has supporting assets:
o Baking and Snack Food
o Dairy
o Meat and Poultry
o Beverage
• Agricultural support, including opportunities for agricultural diversification,
support of small farms, and growth in higher value and organic
agriculture.
• Entrepreneurial / start-up support through development of a regional
Food Business Accelerator program.
Project Background
8
PROJECT BACKGROUND
Indiana Michigan Power (I&M) is an American Electric
Power (AEP) company, which is an investor-owned
electric utility. Headquartered in Fort Wayne, Indiana,
I&M has a service territory that covers Northeast
Indiana, East Central Indiana, North Central Indiana,
and Southwest Michigan. The company generates,
transmits and distributes power to 592,000 residential,
commercial and industrial customers in both Indiana
and Michigan. Within I&M, the Economic & Business
Development (E&BD) department is responsible for
attracting new customers and assisting current
customers with expansions in its service area.
Value-added agriculture and food and beverage processing has been
identified as a target industry by all four regions in I&M’s service territory, as well
as AEP’s national business development team. These industries have been
targeted because these businesses tend to use high amounts of energy with
equipment such as heating elements, conveyors and mixers. Additionally, I&M’s
service territory is known for its ability to support existing and additional value-
added agriculture and food and beverage processing operations since it has
access to an abundant water supply via the Great Lakes and aquifers.
In the Summer of 2017, the I&M E&BD department engaged Austin Consulting as
a research and strategic marketing partner to create a business development
and marketing strategy for the value-added agriculture and food and
beverage processing industries. Based on research and industry trend data
collected and evaluated during the second half of 2017, Austin developed this
Business Development and Marketing Strategy to assist I&M and its regional
economic development partners in attracting new and growing existing value-
added agriculture and food and beverage processing businesses in its service
territory. This document represents the culmination of this effort.
This comprehensive report details the completed research and recommended
marketing and business development strategies for the I&M service territory. This
report is intended to provide meaningful information and effective actionable
recommendations that can be incorporated into the current marketing and
business development efforts used by I&M and its economic development
partners. Key data collected and analyzed for the project, and ancillary
Project Background
9
information from various sources, has been compiled and included in the
Appendices to this document.
About Austin Consulting
Austin Consulting is a diverse team of professionals which specializes in providing
site selection assistance to clients around the globe that are expanding,
consolidating or relocating operations. With over 70 years of experience
advising clients on location strategy for investment decisions, Austin Consulting
has worked with numerous clients in the food and beverage processing industry,
establishing itself as a leading service provider to the industry. Over the past
decade, clients in the food and beverage processing industry have comprised
more than half of the clients that our consulting group has supported.
Austin Consulting is a division of The Austin Company, a leading design-build
company headquartered in Cleveland, Ohio, with additional offices in
California, Georgia, Michigan, Missouri and Mexico. The food and beverage
processing industry is a core focus of the entire company, which has a lengthy
history of designing and constructing state-of-the-art food and beverage
production facilities.
Methodology
10
METHODOLOGY
For this project, Austin employed a straight-forward research process to develop
results that could be applied to a Marketing and Business Development
Strategy. This process followed three steps which included:
1. Gathering Data
2. Conducting Analyses
3. Developing Strategies
The following text describes how Austin carried out this three-step process.
Gathering Data
Gathering valuable data was essential to the success of this project. This
foundation of data was strengthened by the practical knowledge and
experience of the consulting team to determine key insights throughout the
project. To ensure the accuracy of data, multiple methods were utilized to
strengthen and validate findings. These methods were applied systematically in
the order listed below:
• Literature Review
• Qualitative Research
• Quantitative Research
Literature Review
By starting with a literature review Austin developed an initial impression of the
targeted industry and its overall health in the I&M territory. A desktop evaluation,
including review of online trade publications, press releases, news media
articles, studies, and government reports, was completed to gain a better sense
of value-added agriculture and food and beverage processing within the I&M
region. Some of the most valuable insights uncovered from this review were of
studies conducted for regions in both states as well as news articles. The findings
of the studies gave Austin a sense of the issues that have been discovered
previously, while the news articles provided current activity on what is
happening in the industry. Austin continued to view media sources throughout
the project to maintain a current knowledge of industry activity.
Methodology
11
Qualitative Research
During the initial stages of literature review, Austin also began an outreach
campaign to local economic developers within the I&M region. The goal of this
outreach was to set up phone interviews with local professionals possessing
industry knowledge for insight into value-added agriculture and food and
beverage processing within the region. These conversations yielded more
literature and research to review, additional contacts to interview, and regional
businesses to contact. Economic development partners also agreed to assist
Austin with setting up meetings with companies to secure a business
perspective. At the end of this campaign, Austin interacted with over 100
individuals for this project including economic development professionals,
company representatives, and utility providers.
Interviews with economic development partners were conducted via phone
and began in the third week of September 2017. Correspondence with
economic development partners were ongoing until Austin’s field visits were
completed in the beginning of November 2017.
Two Austin consultants devoted three separate field visits to the I&M territory to
speak to a large enough sample of companies to be representative for this
project. Visits were conducted the following days:
1. October 11 - 13
2. October 18 - 20
3. October 30 - November 3
During these field visits, Austin either visited companies with an economic
development professional or privately. Questions that company
representatives were asked focused on business operations and industry
outlook. Specific categories of questioning are listed below:
• Business operation overview
• Industry outlook
• Agriculture connection
• Labor (workers, wages, hiring, retention)
• Supply chain (supplier and customer relationships, local sourcing
opportunities)
• Innovation, technology, and automation
• Government relationship and legislative issues
Methodology
12
Quantitative Research
Austin used various methods to collect quantitative data for analysis. Data
collected were primarily based upon codes from the U.S. Census Bureau’s North
American Industry Classification System (NAICS). These codes are broken down
by levels from two-digits to six and help with organizing data into groups and
categories. The six-digit level of NAICS codes is the most detailed that is offered
for industries. All quantitative data were developed from this categorization
including industry, demographics, supply chain, and occupations. Definitions for
important industry categories at the six-digit level are shown in Appendix A of
this report. An example of a six-digit NAICS code breakdown is provided below:
• 31-33 – Manufacturing
• 311 – Food Manufacturing
• 3112 – Grain and Oilseed Milling
• 31121 – Flour Milling and Malt Manufacturing
• 311211 – Flour Milling
Occupations have their own unique classification system. The Standard
Occupational Classification (SOC) system is used to classify workers into
occupation categories. This system covers four levels of detail; major groups,
minor groups, broad occupations, and detailed occupations. The most specific
level on information is given at detailed occupations, whereas the broadest is
provided at the major groups. For the purposes of this study the detailed
occupations level was used for analysis. An example of a five digit (first two
numbers are considered one digit) SOC code breakdown is provided below.
• 51-0000 – Production Occupations
• 51-3000 – Food Processing Workers
• 51-3090 – Miscellaneous Food Processing Workers
• 51-3092 – Food Batchmakers
Most data used in this project were obtained via desktop from the EMSI
Developer analytical tool, which utilizes data from a variety of relevant
government sources. This tool allowed quantitative data to be collected quickly
at a much more detailed level than the U.S. Census Bureau and Bureau of Labor
Statistics (BLS) provide, since government data sources typically suppress
information to protect companies from competitors. EMSI unsuppresses these
data and provides estimates at the most detailed level possible. These
proprietary data (EMSI) were also supplemented with government data sources
Methodology
13
where appropriate for verification purposes. For more information on how EMSI
sources its data, see Appendix B.
All quantitative data were collected at the most detailed level (six-digit NAICS)
for 23 counties in which I&M provides service. These counties were selected
based upon areas which I&M provides electrical service and confirmed by I&M
staff. A map of the 23 counties, organized into their respective sub-regions is
provided below and followed by a list:
Methodology
14
Fort Wayne / NE Indiana
1. Adams County, IN
2. Allen County, IN
3. DeKalb County, IN
4. Huntington County, IN
5. Noble County, IN
6. Steuben County, IN
7. Wells County, IN
8. Whitley County, IN
South Bend / NC Indiana
9 Elkhart County, IN
10. La Porte County, IN
11. Marshall County, IN
12. St. Joseph County, IN
Muncie / EC Indiana
13. Blackford County, IN
14. Delaware County, IN
15. Grant County, IN
16. Jay County, IN
17. Madison County, IN
18. Randolph County, IN
Benton Harbor / SW Michigan
19. Berrien County, MI
20. Cass County, MI
21. Kalamazoo County, MI
22. St. Joseph County, MI
23. Van Buren County, MI
EMSI was able to supply sufficient county level data for demographics, labor,
and supply chain portions of this project, but additional data were required to
carry out the entire scope of the proposed work. Spatial, agriculture, and utility
data were needed to add further value to the project. Primary research was
conducted to gather various data used in supplemental documentation, but
government sources were used where available. Spatial base layer data for
mapping was obtained from the U.S. Census Bureau TIGER/Line Shapefiles, while
agriculture data were sourced from the USDA NASS Quickstats data application.
ESRI data were also used in the mapping process, but mainly consisted of base
layer data as well. These data were essential in providing necessary insight for
recommendations.
Conducting Analyses
Analyses for this project were primarily conducted using quantitative data that
was collected in the Gathering Data step of the process. Literature and
qualitative data provided perspectives on the analyzed quantitative data to
better reference and explain outcomes. There were four main components to
this step which are listed below:
1. Asset Identification
2. Legislation Review
3. Industry Analysis
4. Labor Analysis
Methodology
15
Asset Identification
Asset identification for the I&M region was performed mainly through primary
research. Austin consultants reviewed a variety of information via desktop to
identify regional assets. Research was highly focused on spatial and
geographical advantages that the region can access. Specific assets are
explained in individual detail below.
• Major companies were identified and mapped in an interactive format
on Google Maps. Companies were categorized by industry group and
labeled with colored pins to differentiate one category from another.
Under the description of each company there was an address and a list
of reported products that were produced at that location. A complete list
of companies in the I&M region is contained in Appendix C.
• Grain mills and refineries were identified on a multi-state level across
Illinois, Indiana, Michigan, and Ohio to show the distribution and access
the I&M territory has to these assets. These mills and refineries were
categorized into three groups: Wheat, Corn, and Soybeans. These data
were mapped interactively on Google Maps as well as statically in ArcGIS.
A list of these operations is contained in Appendix D.
• Water and wastewater utility providers were surveyed across the region to
compare rates, capacities, and regulations. These responses were
analyzed and advantages were highlighted in the Water and Wastewater
section of this report.
• Climatic advantages were reviewed for the I&M territory. Indiana and
Michigan both have unique features that make it advantageous to grow
certain crops in the area. More information on these advantages are
contained in Appendix E (Microclimates) and Appendix F (Soils).
• Transportation assets were mapped and included in Appendix G (Rail
Lines and Intermodal Terminals) and Appendix H (Ports and Interstates) for
reference purposes.
• Education institutions are important to employers looking for resources of
talent to employ within their organizations. Austin identified institutions
offering programs in agriculture, food, and animal sciences. A list of
institutions and programs is contained in Appendix I.
Methodology
16
Legislation Review
Input on current or proposed changes to state and local legislation that impact
the agricultural and food and beverage processing communities was obtained
from interviews with regional stakeholders. Stakeholders included companies,
growers, economic development organizations, and agricultural departments.
Specific legislative issues affecting the industry, either positively or negatively,
were incorporated into the appropriate industry groups and other sections of
within the report.
Industry Analysis
The industry analysis sections of this report are the largest and most in-depth.
Since there were so many six-digit industry classifications (49) for food and
beverage processing, these categories were first grouped to make the analyses
less cumbersome and easier to understand. Eight groups were established for
the analyses based on the relationships and similarities of the industry
categories. These groups are:
1. Baking and Snack Food
2. Dairy
3. Meat and Poultry
4. Fruit and Vegetable Processing
5. Beverages
6. Flavors, Dressings, and Seasonings
7. Confectionery
8. Animal Food
Each group was analyzed from multiple perspectives that followed a similar
format outlined below. Data in these analyses were primarily obtained from EMSI
Developer. However, government sources were used to verify these data when
available and necessary.
• An overview of each industry group was discussed and accompanied by
a list of major companies in the I&M region.
• An industry analysis followed, which showed an overview of employment,
wages, labor density (location quotients in Appendix J), businesses, and
gross regional product by industry category. Specific data points that
were further analyzed include employment and wage growth. In these
two forms of growth, the I&M region was compared to the U.S. average
Methodology
17
for each food and beverage industry group. Recent, newsworthy activity
was also highlighted in this portion of each industry group section.
o A shift share analysis was also conducted as part of each industry
analysis. This form of analysis is further explained in Appendix K, but
for reference it shows competitiveness of a region based on
national and industry trends.
• The regional supply chain analysis followed the industry analysis of each
group. The supply chain of each industry group was examined in detail
from a purchases and sales stand point. Any industry connection that was
above a 2% threshold (dollars of purchases or sales) was shown in
included visuals. These visuals illustrate the relationships between suppliers
and service providers and processors which the industry group sells to. This
threshold was created because it represented a rational break in the
amount of useful data to include graphically. On the sales side, data
varied significantly between the I&M region and the U.S., so the visuals
also show a comparison between I&M region and the U.S. This analysis is
further explained in Appendix L.
o As part of the supply chain analysis, Austin also examined trade
data, in terms of imports and exports, for each industry group. These
data showed trade flows into and out of the I&M region.
• Following this analysis, industry group sections included dedicated
subsections that described the national industry outlook and trends,
opportunities, and issues and concerns for each. These subsections
tended to offer more anecdotal information that was collected through
literature and qualitative methods.
Labor Analysis
The labor analysis provides a high-level review of the workforce in the I&M
territory and its four sub-regions. All data in this section were obtained from EMSI
Developer, and the section is broken into three components that are described
in the following order:
1. Occupations - This section identifies the most prevalent occupations
required by the food and beverage processing industry subsector at a
national level, then shows the presence of these occupations by
employment in the I&M region. The top 25 occupations for Food and
Beverage Processing in the U.S. were used for comparative purposes. All
other occupation categories either had a percentage make-up for the
Methodology
18
industry that was insignificant (below 1%) or were retail in nature and not
critical to performing tasks needed in a food and beverage processing
operation.
2. Sub-regions – Data were also collected for Food and Beverage Processing
in four I&M sub-regions. Data for these sub-regions were collected at the
county level. Industry and occupation data were analyzed in this
component and are further explained below:
a. Occupation – Building upon data collected in the previous
component (Occupations), the top 25 occupations at the national
level were also examined for each of the four I&M sub-regions.
b. Industry – All Food and Beverage industry groups were then
compared at the sub-region level. Only the most important figures
were shared in the report.
3. Competitors – Labor and demographic data for competing regions in the
Midwest were compared to I&M. The data shows differences in industry
employment growth, job density, wages and other information for
comparison purposes. Data used for competing regions were collected at
the MSA level.
Developing Strategies
The marketing and business development strategies contained in this report
were developed from the foundational data and project research, combined
with Austin’s industry knowledge and experience. The strategies focus on
opportunities to promote industry growth within the three key target audience
groups identified by Indiana Michigan Power. These include food and beverage
processing companies, the agricultural community, and entrepreneurs and
small businesses.
Baking and Snack Food
19
BAKING AND SNACK FOOD
Industry
Baking and Snack Food is the largest industry group in the I&M territory with
employment that amounts to about a third of the total for Food and Beverage
Processing in the region. There are an estimated 84 businesses which employ
approximately 4,808 workers and between 2006 and 2016, employment in the
industry group grew by 26%. Employment in the industry is not heavily weighted
by one or more major employers, but rather spread across many small to mid-
size companies that are either locally based or have production facilities in the
region. The major products produced by companies in the region include
breads, cookies, crackers, pastries, potato chips, pretzels, tortillas, popcorn, and
other snack foods. Figure BS.1 below lists the major Baking and Snack Food
companies in the I&M region.
More specific data on employment, wages, and other information for the
Baking and Snack Food industry group is included below in Figure BS.2.
Company City State Products
Alpha Baking Co., Inc. La Porte IN Breads
Bimbo Bakeries Elkhart IN Breads, baked products
Café Valley Bakery Marion IN Cakes, muffins, croissants
Ellison Bakery Fort Wayne IN Cookies, inclusions
Hearthside Food Solutions Michigan City IN Cookies, crackers, snacks
Holsum (Lewis Brothers Bakies) Fort Wayne IN Breads
Holsum (Lewis Brothers Bakies) La Porte IN Breads
Inventure Foods, Inc. Bluffton IN Kettle chips, snack foods
New Horizons Baking Co. Fremont IN Buns, rools, muffins
Olde York Potato Chips (Saratoga Potato Chips) Fort Wayne IN Potato chips
Perfection Bakeries, Inc. (Aunt Millie's) - Headquarters Fort Wayne IN Baked products
Perfection Bakeries, Inc. (Aunt Millie's) Kalamazoo MI Breads
Pretzels, Inc. Bluffton IN Pretzels, corn puffs
Pretzels, Inc. Plymouth IN Pretzels
Tyson Foods Portland IN Tortillas, taco shells, chips, flatbreads
Weaver Popcorn Van Buren IN Popcorn
Wickes Pies, Inc. Winchester IN Pies, pie shells, doughs
Figure BS.1: Baking and Snack Food - Major Companies in the I&M Region
Source: Austin Consulting
Baking and Snack Food
20
The most important findings from Figure BS.2 are as follows:
1. Certain Baking and Snack Food categories have experienced stronger
employment growth than others, but growth across most categories is
very strong.
2. Only four categories have experienced a decline in employment; Retail
Bakeries (311811), Cookie and Cracker Manufacturing (311821), Dry Pasta,
Dough, and Flour Mixes Manufacturing from Purchased Flour (311824),
and Roasted Nut and Peanut Butter Manufacturing (311911).
3. Employment density in the region for the group is 1.74 times greater than
the U.S. average in 2016, as shown by the location quotient.
4. The Commercial Bakeries (311812) category has the most employment in
the region, making up more than 37% of the total for this industry group,
with 1,789 jobs. These data are underscored by the number of
Commercial Bakeries that are included in Figure BS.1.
5. Baking and Snack Food makes up more than 26% of the GRP in Food and
Beverage Processing for the I&M region, at over $457,9 million.
Description NAICS2016
Jobs
% Change
in Jobs
(2006-2016)
2016 Wages,
Salaries, &
Proprietor
Earnings
2016
Location
Quotient
2016
Payrolled
Business
Locations
2016 GRP
Retail Bakeries 311811 459 -15% $ 21,372 0.71 34 $ 18,319,653
Commercial Bakeries 311812 1789 32% $ 37,989 1.93 25 $ 121,123,179
Frozen Cakes, Pies, and Other Pastries
Manufacturing311813 110 79% $ 54,213 1.26 2 $ 10,492,817
Cookie and Cracker Manufacturing 311821 497 -3% $ 46,526 2.13 4 $ 64,937,017
Dry Pasta, Dough, and Flour Mixes
Manufacturing from Purchased Flour311824 180 -2% $ 48,003 1.16 5 $ 24,392,141
Tortilla Manufacturing 311830 371 28% $ 26,859 2.81 1 $ 27,120,603
Roasted Nuts and Peanut Butter
Manufacturing311911 64 -16% $ 54,123 0.62 4 $ 18,406,344
Other Snack Food Manufacturing 311919 589 65% $ 35,012 2.15 4 $ 113,037,502
All Other Miscellaneous Food
Manufacturing311999 749 68% $ 47,027 3.46 5 $ 60,115,564
Summary Data Unique 4808 26% $ 38,430 1.74 84 $ 457,944,821
Figure BS.2: Baking and Snack Food - Overview of the I&M Region
Source: EMSI 2017.3 Class of Worker
Baking and Snack Food
21
One category would traditionally be left out of this grouping is All Other
Miscellaneous Food Manufacturing (311999). However, the industry category
covers some snack food products, such as popcorn. The data suggests that
most of the employment for the I&M region can be attributed towards Weaver
Popcorn, which validated its inclusion.
Figure BS. 3 compares employment growth in the I&M region to the U.S. overall
within the Baking and Snack Food industry group. The chart includes
employment growth records for the years 2006 to 2016 and projected
employment growth through the year 2026.
The figure illustrates that the industry group has recently experienced much
stronger growth within the I&M region compared to the U.S. Industry
employment growth for I&M is projected to continue to outpace the U.S., rising
to 34% by 2021, compared to just 18% for the U.S. over the same timeframe.
Essentially, the employment growth over the 20-year period is expected to
double that of the U.S.
Recent project announcements and investments in the I&M region underscore
these projections.
• Café Valley Bakery, a Phoenix, AZ based company, opened a 2nd bakery
in Marion, IN in 2014. This location produces cakes, croissants, and muffins
Baking and Snack Food
22
for grocery stores. The company currently has over 400 employees and
continues to expand, adding a third shift earlier this year.1
• Pretzels, Inc., a Bluffton, IN based pretzel / snack food company opened a
2nd 45,000 square foot location in Plymouth, IN in 2017. The location
produces pretzel products.2
• Saratoga Potato Chips, a Canadian based potato chip company
established new operations in Fort Wayne, IN in 2010. In 2017, the
company announced a 43,000 square-foot expansion at its Indiana plant
and expects to add 25 new processing jobs.3
While most of the regional industry announcements have been positive, Aunt
Millie’s, a regional baking company headquartered in Fort Wayne, IN
announced plans to close its Fort Wayne bakery by April 2018.4 The facility
produces bread and other bakery products. Aunt Millie’s has several other
bakeries in Indiana, Ohio, and Michigan. In April 2017, Aunt Millie’s started
production at a new bakery in Lowell, IN near Chicago, IL where it produces hot
dog and hamburger buns.5
Other industry related expansion announcements near the I&M region include:
• CraftMark Bakery, which makes frozen baked products, announced a
113,00 square-foot expansion at its Indianapolis, IN bakery that is
expected to add 130 to 150 new jobs.6
• Skally’s Old World Bakery, a Cincinnati, OH based bakery announced
plans for a new 345,000 square-foot facility in Harrison, OH.7 The company
was reportedly considering a location in West Harrison, IN before backing
out of those plans.
1 McGowan, D. 2017. “Demand Drives Cafe Valley to Add Third Shift.” Inside Indiana Business. May 17.
2 Schroeder, E. 2016. “Pretzels Inc. to open new plant in Plymouth, Ind.” BakingBusiness.com. September 7.
3 PotatoPro.com. 2017. “Snack food manufacturer Saratoga Potato Chips LLC plans expansion in Fort
Wayne.” June 14.
4 Schroeder, E. 2017. “Aunt Millie's to close Fort Wayne baking plant.” BakingBusiness.com November 6.
5 Benman, K. 2017. “Aunt Millie's to fire up the ovens in Lowell.” Indiana Economic Digest. March 23.
6 Malovany, D. 2017. CraftMark Bakery initiates major expansion. BakingBusiness.com. June13.
7 Perleberg, M. “Skally’s Takes Big Bakery Plans Across State Line To Harrison.” Eagle Country 99.3.
November15.
Baking and Snack Food
23
Austin completed a shift share analysis to measure the competitiveness of the
region based on national and industry trends. More information and
background on this type of analysis is contained in Appendix K. The shift share
analysis is summarized in Figure BS.4.
Commercial Bakeries (311812), All Other Miscellaneous Food Manufacturing
(311999), and Other Snack Food Manufacturing (311919) categories show the
highest competitive advantage in the region from 2006-2016, significantly
outperforming expected job growth. Commercial Bakeries performed
exceptionally well, exceeding job growth expectations by 406 jobs between
2006-2016.
In addition to the employment strength, there has been a considerable amount
of wage growth in Baking and Snack Food across the I&M territory as displayed
by Figure BS.5.
Description NAICSExpected
Change
Actual
Change
Regional
Competitive
Effect
Retail Bakeries 311811 123 -82 -205
Commercial Bakeries 311812 33 439 406
Frozen Cakes, Pies, and Other Pastries Manufacturing 311813 14 49 35
Cookie and Cracker Manufacturing 311821 28 -16 -44
Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour 311824 6 -4 -10
Tortilla Manufacturing 311830 35 81 46
Roasted Nuts and Peanut Butter Manufacturing 311911 25 -12 -37
Other Snack Food Manufacturing 311919 90 232 142
All Other Miscellaneous Food Manufacturing 311999 72 302 231
Source: EMSI 2017.3 Class of Worker
Figure BS.4: Baking and Snack Food - Shift Share Analysis of the I&M Region (2006-2016)
Baking and Snack Food
24
The I&M region experienced an estimated 40% increase wages for the industry
group from 2001-2016. U.S. wages grew by 32% during the same period. This
increase mirrors the growth of employment in the area. However, annual wages
in the I&M region are still less than the national average for this industry group by
more than $2,000, with workers in the I&M region earning approximately $38,400
compared to $40,500 for the U.S. It does not appear that the high industry group
employment growth over this same period has inflated wages disproportional to
the U.S.
Supply Chain
The Baking and Snack Food industry group has a mature, highly developed
supply chain within the region. There is a diverse range of products produced
which require a variety of raw and processed inputs, including wheat flour, corn
flour, oils, shortening, sweeteners, potatoes, eggs, and dairy ingredients. To
evaluate the supply chain, data for purchases and sales between the industry
group and other industries were assessed. Purchases show relationships between
suppliers and service providers, while sales data shows customer relationships.
Baking and Snack Food
25
Figure BS.6 below illustrates the most significant industries from which the Baking
and Snack group purchases. Each industry accounts for at least 2% of the total
group purchases.
Major raw inputs account for an estimated $97.8 million in total purchases, while
processed ingredients (flour and fats/oils) account for $85 million. These
combine for more than 22% of the total purchases. Packaging material
purchases are estimated at $38 million and services at $117.1 million. A detailed
breakdown of these purchases can be found in Appendix L.
Given the importance of processed ingredients in baking and snack foods,
Austin identified major supplier locations to determine whether the region has an
adequate supply base to support the industry group or if companies must
purchase the ingredients from outside. Companies typically prefer to transport
these ingredients short distances when possible to avoid higher shipping costs.
Large operations may also transport these in bulk by rail. Included in the map
(Figure BS.7) below are the major locations of wheat flour milling, corn milling
and oilseed refining operations located within Indiana, Michigan, Ohio and
Illinois.
Raw Processed Packaging Services
Crop Production Flour Milling Plast ics Bott le ManufacturingCorporate, Subsidiary, and Regional
Managing Offices
Animal Production and
AquacultureFats and Oils Refining and Blending
Corrugated and Solid Fiber Box
Manufacturing
Wholesale Trade Agents and
Brokers
Figure BS.6: Baking and Snack Food Supply Chain - Purchases
Source: EMSI 2017.3 Class of Worker
Baking and Snack Food
26
There are two wheat flour mills located in the I&M region; Star of the West in
Ligonier, IN and Knappen Milling Company in Augusta, MI. There are also several
other wheat flour mills located near the region and across the four states. Bunge
has a major oilseed refining location in Decatur, IN, where it produces a wide
range of food-grade oils and shortenings used in baking and snack foods.
Agricor operates a dry milled corn facility in Marion, IN which produces corn
flour, meal, grits and other dry milled corn ingredients. There are no wet corn
milling facilities within the I&M region; however, several suppliers are located
nearby. These types of facilities produce corn sweeteners, starches and other
ingredients used in some baking and snack foods. A complete list of these
supplier locations is included in Appendix D.
To examine customer supply chain relationships for the Baking and Snack Food
group, Figure BS.8 below illustrates the top processing industries which the group
Baking and Snack Food
27
sells to. Each of these industries account for at least 2% of the total sales for the
group. Sales for I&M are focused on in-region sales and are compared to the
United States to show differences between relationships to other processing
industries.
These data illustrate the extent of regional inter-industry supply chain
relationships within the Baking and Snack Food group. Compared to the U.S.,
data illustrates that the number of relationships between the group and other
processors within the I&M region is much more diverse. The inclusion of industries
from other subsector groups such as confectionery, fruit and vegetable, and ice
cream products illustrates cross-industry connections. The U.S. data do not
highlight any apparent supply chain gaps or opportunities that could be further
explored. It is important to keep in mind that in-region sales account for only 10%
of the industry group’s total sales.
Total purchases and sales for the Baking and Snack Food group are shown in
Figure BS.9 below.
Indiana Michigan Power United States
Processing Processing
Commercial Bakeries Commercial Bakeries
All Other Miscellaneous Food
ManufacturingFruit and Vegetable Canning
Fruit and Vegetable Canning
Cookie and Cracker Manufacturing
Nonchocolate Confectionery
Manufacturing
Ice Cream and Frozen Dessert
Manufacturing
Figure BS.8: Baking and Snack Food Supply Chain - Sales
Source: EMSI 2017.3 Class of Worker
% In-region % Imported Total % In-Region % Exported Total
Baking and Snack Food Unique 21% 79% $832,703,647 10% 90% $1,384,411,268
Figure BS.9: Baking and Snack Food - Trade Analysis of the I&M Region (2016)
Purchases Sales
Source: EMSI 2017.3 Class of Worker
NAICSDescription
Baking and Snack Food
28
The difference between total sales and purchases highlights the value added
by the industry group. These data also show percentages of purchases and
sales activity occurring within the region, versus transactions with businesses and
customers outside the I&M area. Since 90% of the industry group sales are made
with customers outside the region, data suggest that most of the sales are likely
final products intended for wider distribution.
National Industry Outlook and Trends
Baking and Snack Food will likely continue to be an important economic driver
in the region based on the industry diversity and growth forecast data.
Moreover, the industry has a strong presence in the Midwest, sometimes referred
to as the “Bread Basket” of the U.S. In fact, the Chicago metropolitan area has
the 2nd highest industry employment in the U.S. and Midwest states also rank
high (Illinois - 2nd, Indiana - 9th, and Michigan - 12th).
• Over the past 10 years in the U.S., all industry categories have added jobs
and are forecasted to add more jobs over the next 10 years (EMSI 2017.3
Class of Worker).
• The strongest growth segments are Frozen Cakes, Pies and Other Pastries
Manufacturing (311813), Tortilla Manufacturing (311830), and Roasted
Nuts and Peanut Butter Manufacturing (311911), and Other Snack Food
Manufacturing (311919).
There is a significant, increasing demand for more unique and healthy baking
and snack foods. Health claims that are having a high impact on the industry
include:8
• Gluten free
• Non-GMO
• Organic
• Natural (free of artificial colors / flavors)
• No / reduced sugar and sugar alternatives
As consumers demand more unique and healthy baking and snack foods, the
products have become more diverse and segmented. A wider range of
ingredients including grains, oils, vegetables, and other ingredients are being
used in baking and snack food products. Growth of these niche segments will
likely plan a more important role in major facility expansion projects as they
become more mature.
8 Gelski, J. “Snackers seek non-G.M.O., free-from and reduced-sugar claims.” BakingBusiness.com.
November 30.
Baking and Snack Food
29
Opportunities
The I&M region could continue to see growth opportunities in traditional staple
Baking and Snack Foods. Also, new products within traditional segments such as,
health focused cookies and crackers, and gluten free breads and pastries may
present opportunities for businesses in the region to respond to recent consumer
trends. The I&M region offers many supply chain advantages, with major
suppliers of wheat and corn flour, vegetable oils / shortening, corn sweeteners,
potatoes, eggs, and dairy products in the region or close by. These advantages
should be realized as opportunities to support future growth.
Other targeted opportunities include:
• Tortilla manufacturing
o This sector has been growing due to rising U.S. Hispanic population
and cultural influence.
o The region offers notable supply chain advantages, including corn
production and dry corn milling operations.
• Chips
o The region is close to a major potato growing region in Michigan,
which supplies the majority of the potatoes used in chip production
in the U.S.
o There is also a rising demand for other types of chips, including
vegetable based and more baked chip options that could be
explored.
• Health focused baking and snack companies
o These companies are typically small to mid-size businesses;
however, larger baking and snack companies are also responding
to recent trends.
o This offers an opportunity to add more diversity of products.
Issues and Concerns
• While Baking and Snack Food has experienced strong growth in the I&M
region, new product development appears to be lagging other areas of
the U.S., especially in the trending product categories.
• Labor tends to be less skilled than other segments within the food industry,
with lower than average wages. Hiring and retaining labor continues to
be a challenge for many baking and snack food companies both
nationally and within the region, per companies interviewed by Austin.
Dairy
30
DAIRY
Industry
A wide range of products are produced from raw and processed milk, including
fluid milk, cheese, butter, cream, sour cream, cottage cheese, dips, ice cream,
and yogurt. Despite the industry’s reliance on automation, the industry group
accounts for over 16% of the total employment for Food and Beverage
Processing in the I&M region with an estimated 2,484 jobs. Moreover, regional
employment grew by 40% from 2006-2016. Figure D.1 below lists the major Dairy
processing companies located in the I&M region.
Company City State Products
Dairy Farmers of America Goshen INCondensed milk, cream, non-fat dry
milk
Dean Foods (Land -O-Sun Dairies) Decatur IN Ice Cream
Dean Foods (Schenkel's Dairy) Huntington IN Fluid Milk
Michigan Milk Producers Association Constantine MIButter, cream, condensed milk, non-fat
dry milk, instant milk
Michigan Milk Producers Association
(Heritage Ridge Creamery)Middlebury MI Cheese
Prairie Farms Dairy Fort Wayne INFluid milk, cottage cheese, dip, sour
cream, butter, other dairy products
Prairie Farms Dairy (East Side Jersey
Dairy)Anderson IN Fluid milk, other dairy products
Reny Picot (Old Europe Cheese) Benton Harbor MI Cheese
Walmart (Under Construction) Fort Wayne IN Fluid milk
Source: Austin Consulting
Figure D.1: Dairy - Major Companies in the I&M Region
Dairy
31
More specific data on employment, wages, and other information for the Dairy
industry group is included below in Figure D.2.
Key findings from Figure D.2 include:
1. Industry employment growth is primarily attributed to Fluid Milk
Manufacturing (311511). This category has the highest number of jobs,
and grew at a considerable rate of 186% during the 2006-2016 period.
2. Most categories have strong employment numbers but Cheese
Manufacturing (311513) has very low employment. However, this category
has almost tripled in job growth.
3. There is no reported data in the I&M region for Creamery Butter
Manufacturing (311512). Butter is produced in the region; however, it is
often made from the fat that is removed in making fluid milk, and
therefore not a primary focus of many dairy processors. Only 47 businesses
at the national level that report their primary function as Creamery Butter
Manufacturing.
4. The number of jobs in this group is 2.68 times as dense as the nation, while
Fluid Milk Manufacturing, Dry, Condensed, and Evaporated Dairy Product
Manufacturing (311514), and Ice Cream and Frozen Dessert
Manufacturing (311520) are much higher than that at 3.07, 5.16, and 4.98
times respectively. This highlights the specialization in the regional labor
force for Dairy products.
Description NAICS2016
Jobs
% 2006-
2016
Jobs
2016 Wages,
Salaries, &
Proprietor
Earnings
2016
Location
Quotient
2016
Payrolled
Business
Locations
2016 GRP
Fluid Milk Manufacturing 311511 1125 186% $ 56,559 3.07 6 $144,844,464
Creamery Butter Manufacturing 311512 0 0% $ - 0.00 0 $ -
Cheese Manufacturing 311513 92 158% $ 29,717 0.30 2 $ 7,178,292
Dry, Condensed, and Evaporated
Dairy Product Manufacturing311514 567 -17% $ 62,636 5.16 3 $ 87,256,386
Ice Cream and Frozen Dessert
Manufacturing311520 698 4% $ 40,353 4.98 3 $ 97,357,225
Summary Data 3115 2482 40% $ 52,390 2.68 14 $336,636,367
Source: EMSI 2017.3 Class of Worker
Figure D.2: Dairy - Overview
Dairy
32
5. The wages in this industry group are higher than many other Food and
Beverage Processing industry groups, which can be expected because of
the highly technical processes and skill levels typically used in these
operations.
6. The only category that experienced a decline in jobs is Dry, Condensed,
and Evaporated Dairy Product Manufacturing category, with a 17% drop
in employment between 2006-2016.
Figure D. 3 compares employment growth in the I&M region to the U.S. overall
within the Dairy group. The chart includes employment growth records for the
years 2006 to 2016 and projected employment growth through the year 2026.
Figure D.3 not only illustrates that the I&M region has experienced more
employment growth than the U.S., but also that the I&M territory has seen more
than four times the growth from 2006 to 2016. This growth is projected to
continue to outpace the U.S. as well.
Recent project announcements and investments in the I&M region accentuate
these projections.
• Wal-Mart is nearing completion of its first dairy processing facility in Fort
Wayne, IN that is expected to employ more than 200. The 250,000 square-
foot facility will produce fluid milk to be sold in Walmart stores. This project
Dairy
33
has been linked to the Indiana State Department of Agriculture (ISDA)
2015 Dairy Strategy which is aimed at growing the dairy industry
statewide. 9
• Prairie Farms Dairy is investing approximately $9 million on a 22,500 square-
foot expansion of its Fort Wayne, IN dairy. The expansion will create
additional capacity for value-added specialty products.10
Other industry related expansion announcements near the I&M region include:
• Foremost Farms USA announced plans in November 2017 for a new dairy
processing facility in Greenville, MI. The facility is planned to be
operational within 12 to 14 months and accept up to six million pounds of
raw milk per day. The facility would reportedly help to stabilize the
regional milk supply, which there has been an oversupply of in recent
years. 11 12
• Glanbia, based in Ireland, announced plans for a new cheese and whey
plant in Michigan in January 2017. The new plant would reportedly be a
joint venture with Dairy Farmers of America, Michigan Milk Producers
Association, and Foremost Farms. A location for the project has yet to be
publicly announced.13
While most of the news has been positive, Dean Foods which has been
struggling financially due to declining demand for fluid milk announced the
closing of its Rochester, IN dairy which produced milk and cottage cheese.14
There is also speculation that the Walmart dairy could negatively impact Dean
Foods’ dairies in the region that have supplied milk for Walmart’s private label
brands.
9 Cornall, J. 2016. “Walmart to build milk processing plant in Indiana.” DairyReporter.com. March 18.
10 Brown, A. 2017. “Prairie Farms Expanding Fort Wayne Dairy.” Inside Indiana Business. February 10.
11 Foremost Farms USA. 2017. “Foremost Farms USA® Announces Plans to Build a Dairy Campus in
Michigan.” November 9.
12 Harger, J. 2017. “Wisconsin firm plans to build dairy processing campus in Greenville.” M Live Media
Group. November 10.
13 Burke-Kennedy, E. 2017, “Glanbia to open major new production plant in Michigan.” The Irish Times.
January 27.
14 Seiler, C.M. 2016. “Dean Foods closing Rochester plant by mid-October, costing 138 job.” Indiana
Economic Digest. July 17.
Dairy
34
Austin also completed a shift share analysis to measure the competitiveness of
the region based on national and industry trends. The shift share analysis is
summarized in Figure D.4.
Fluid Milk Manufacturing (311511), Cheese Manufacturing (311513) and Ice
Cream and Frozen Dessert Manufacturing (311520) all show a regional
competitive advantage when comparing actual job change to expected
changes. Only Cheese Manufacturing was expected to grow based on national
and industry forecasts. Fluid Milk Manufacturing yielded a competitive effect of
737 (rounded), adding 732 jobs over the period while the category was actually
expected to decline. On the other hand, the Dry, Condensed, and Evaporated
Dairy Product Manufacturing category had a negative competitive effect of
227. This is because the industry was expected to grow by 114 jobs, but actually
lost 113. Austin was unable to determine the exact cause of this loss.
In addition to job growth and competitiveness, the Dairy industry group in the
I&M territory has also seen steady wage increases, as shown in Figure D.5 below.
Description NAICSExpected
Change
Actual
Change
Regional
Competitive
Effect
Fluid Milk Manufacturing 311511 -6 732 737
Creamery Butter Manufacturing 311512 0 0 0
Cheese Manufacturing 311513 8 57 49
Dry, Condensed, and Evaporated Dairy
Product Manufacturing311514 114 -113 -227
Ice Cream and Frozen Dessert Manufacturing 311520 -35 29 64
Source: EMSI 2017.3 Class of Worker
Figure D.4: Dairy - Shift Share Analysis (2006-2016)
Dairy
35
Industry wages increased by an estimated 34% within the I&M region from 2001
to 2016. However, wage growth lagged the U.S., which currently has average
annual wages of more than $57,400, more than $5,000 above I&M. Despite very
strong employment growth, the data suggests that wage inflation has not been
an issue for the region.
Supply Chain
Companies within the Dairy group tend to locate in proximity to the dairy farms
for access to raw milk, since milk is the major ingredient in most dairy products.
To evaluate the supply chain, data for purchases and sales between the
industry group and other industries were assessed. Figure D.6 below illustrates the
overall supply chain for the Dairy group within the region from a purchases
standpoint. Purchases show relationships between suppliers and service
providers, while sales data shows customer relationships.
Dairy
36
To summarize the information in Figure D.6, 45% of the purchases for the Dairy
group are coming from raw milk with an estimated total of $614.6 million.
Purchases from both processed ingredients and services make up a much lower
amount at an estimated $237.8 million and $38.7 million respectively. Although
these dollar amounts are much less than the raw material purchases from
Animal Production and Aquaculture, they still represent significant expenditures
for the Dairy group. Overall these purchases indicate that Dairy companies in
the I&M region make significant investments into the inputs and services that are
needed to produce products. More details on Dairy purchases can be found in
Appendix L.
To better display the access the I&M region has to raw milk, Austin mapped milk
sales by county for Illinois, Indiana, Michigan, and Ohio. These data highlight the
density of milk sales (by county) in darker areas on the map (Figure D.7) below.
Raw Processed Services
Animal Production and Aquaculture Fluid Milk ManufacturingCorporate, Subsidiary, and Regional
Managing Offices
Dry, Condensed, and Evaporated
Dairy Product Manufacturing
Cheese Manufacturing
Figure D.6: Dairy Supply Chain - Purchases
Source: EMSI 2017.3 Class of Worker
Dairy
37
Data shown in Figure D.7 above shows where Dairy processing companies in the
I&M region can secure milk. There are several counties in the region with milk
sales over $20 million that Dairy processors can access. In addition, there are
many other counties that are adjacent or near the I&M region that have high
milk sales. These counties are easily within the reach of companies in the Dairy
group.
On the sales side of the supply chain, industry relationships with the Dairy group
become more diverse. While analyzing sales data, Austin chose to focus on
industry categories that further processed Dairy products to highlight more
value-added relationships. Figure D.8 below indicates the top processing
industries to which the Dairy group sell its products within the I&M region, and
compares these sales to Dairy on a national level.
Dairy
38
For the Dairy industry group, most of the sales are going to other Dairy industry
categories. These sales make up 75% percent of the total sales with an
estimated $ 127.9 million. Dry, Condensed, and Evaporated Dairy Product
Manufacturing, Fluid Milk Manufacturing, Ice Cream and Frozen Dessert
Manufacturing, and Cheese Manufacturing make up about 32%, 27%, 13%, and
4% of these sales respectively. These findings suggest that there is more value-
added processing in this particular industry group. However, the supply chain is
limited almost exclusively to the Dairy industry group.
An important distinction can be made from the above figure, which is the
Cheese Manufacturing industry’s relationship to the rest of the Dairy industry
group. In the I&M region the least significant amount Dairy sales (4%) is going to
Cheese Manufacturing, compared to 20% for the U.S. This distinction shows that
there is a clear gap in the I&M region for Cheese Manufacturing, which is
supported by earlier data that shows the lack of cheese manufacturing for the
region. For more information on the sales of the Dairy industry group see
Appendix L.
Thus far, purchases and sales data have been focused on those inside of the
region. Figure D.9 below shows the total purchases and sales for the Dairy group.
Indiana Michigan Power United States
Processing Processing
Dry, Condensed, and Evaporated
Dairy Product ManufacturingCheese Manufacturing
Fluid Milk Manufacturing Fluid Milk Manufacturing
Ice Cream and Frozen Dessert
Manufacturing
Dry, Condensed, and Evaporated
Dairy Product Manufacturing
Cheese ManufacturingIce Cream and Frozen Dessert
Manufacturing
Frozen Specialty Food
Manufacturing
Figure D.8: Dairy Supply Chain - Sales
Source: EMSI 2017.3 Class of Worker
Dairy
39
There is a significant difference between the total purchases and sales of the
Dairy group. Having more sales than purchases suggests that the industry group
is doing well in the I&M region. It is estimated that 76% of the purchases for this
industry are coming from outside the region. With 45% of the supply chain
purchases going towards raw milk, it is somewhat surprising that in-region
purchases are not higher. It is very likely that these imports are from areas that
are just outside of the I&M footprint, which is supported by Figure D.7. On the
sales side, an estimated 86% of Dairy products are being exported out of the
region. Having a high percentage of exports suggests that most of these sales
are final products which are being distributed to a larger consumer base.
National Industry Outlook and Trends
Nationally, the dairy industry has recently seen more growth in value-added
products as fluid milk consumption continues to decline. According to data from
the USDA, per capita consumption of fluid milk in the U.S. has been steadily
declining since 1975. This decline is highlighted in recent years by a 16.3%
decrease from 2006 to 2016. Despite the decline, fluid milk still retains the largest
share of consumption amongst dairy products at 154 lbs. per person, per year in
2016. Dairy products that have seen increases in per capita consumption are
highlighted in Figure D.10 below.
% In-Region % Imported Total % In-Region % Exported 2016 Total
Dairy 3115 24% 76% $ 1,366,972,990 14% 86% $ 1,708,451,858
Purchases Sales
Source: EMSI 2017.3 Class of Worker
Figure D.9: Dairy - Trade Analysis of the I&M Region (2016)
NAICSDescription
Dairy
40
Value added products, such as yogurt and cheese offer more room for
innovation within the dairy industry.
• Yogurt has recently seen growth from International styles including Greek,
Icelandic, Australian, and French as well as yogurt drinks. The yogurt
segment offers a host of flavor options and opportunities for various baked
inclusions and fruit preparations.
• The U.S. cheese industry continues to grow, especially in specialty,
farmstead and artisanal cheeses.
Increasing demand for organic products is playing a role across the dairy sector.
Meanwhile, dairy substitutes, such as soy, almond, and coconut milk have
continued to chip away at market share in many categories, including fluid milk
to ice cream.15
15 Berry, D. 2017. “State of the industry: Dairy.” Food Business News. November 13.
Product2016 Pounds per
Person (annually)
2006-2016
% Change
Dry whole milk 0.3 142%
Bulk and canned skim – evaporated and condensed milk 5.4 28%
Dry buttermilk 0.3 26%
Yogurt 13.7 24%
Butter 5.7 22%
Cheese – other 22.0 15%
Cheese – American 14.3 10%
Bulk, whole – evaporated and condensed milk 0.7 4%
Ice cream, reduced fat 6.4 4%
Nonfat dry milk 3.0 -6%
Other frozen dairy products 2.8 -7%
Ice cream, regular 13.1 -14%
Canned, whole – evaporated and condensed milk 1.4 -15%
Fluid milk 154.0 -16%
Cottage 2.2 -17%
Dry whey and WPC 2.3 -19%
Sherbet 0.8 -36%
Figure D.10: Dairy - U.S. Product Consumption per Capita
Source: USDA, National Agriculture Statistics Service
Dairy
41
Opportunities for the I&M Region
While project opportunities can be found across the dairy industry, sectors that
appear to represent the greatest opportunity based on current trends are
outlined below. However, even in declining categories such as fluid milk, the
area has seen success in the recent Walmart announcement.
• Yogurt
o There is currently no major yogurt production in region, which offers
potential to diversify the regional dairy industry.
o While yogurt growth has slowed in very recent years, there may be
growth opportunities given the ever-changing landscape of yogurt
varieties and fierce competition across the sector.
• Cheese16
o Production in the region is low compared to other prominent dairy
regions
o Demand for specialty / artisanal cheeses continues to be strong
o Potential to diversify into goat / sheep cheeses.
• Other value added dairy products
o Drinks, dairy based snacks, dairy protein products.
• Regionally, interest has been expressed in the byproduct from the new
Walmart Dairy facility. This could create opportunities for other dairy
processors in the area.
• Dairy processing facilities tend to be highly automated, utilize large
volumes of water for sanitation, and have high electric consumption
based on refrigeration and processing equipment requirements.
Issues and Concerns
• Demand for natural based milk alternatives has been rising recently due
to a growing concern by a significant number of consumers over milk
consumption, which could threaten future growth in the industry.
• Given the size of the new Walmart dairy facility in Fort Wayne, which is
nearing completion, impacts to the local supply chain should be
expected. It is difficult to assess how significant the impact will be or how
much time it may take for the market to adjust. Changes, such as
availability and price of raw milk should be monitored, as they have the
potential to impact existing dairy processors and limit new growth.
16 Kennedy, S.M. 2017. “Three key trends shape the specialty and artisan cheese market.” Dairy Foods.
October 5.
Fruit and Vegetable Processing
42
FRUIT AND VEGETABLE PROCESSING
Industry
Fruit and Vegetable Processing has a strong representation in the region,
accounting for an estimated 2,059 jobs in 2016. The industry group has a labor
density of 3.35 times the U.S. and contributes approximately $161.2 million to the
region’s GRP. There are wide range of fruit and vegetable products, including
tomatoes, cucumbers, apples, grapes, and other produce grown in the region
that are processed and packaged to be sold. Figure FV.1 below lists the major
Fruit and Vegetable Processing companies located in the I&M region.
Company City State Products
Burnette Foods Hartford MI Fruit and vegetables processing
Coloma Frozen Foods Coloma MIJuices and concentrates, frozen fruit
and vegetables
Dole (Dole Packaged Foods) Decatur MIFruit blending, packaging, cold
storage
Eden Foods (Meridian Foods) Eaton IN Canned beans
Flamm Pickle and Packing Co. Eau Claire MI Pickle products
Freestone Pickle Company, Inc. Bangor MI Pickle products
Knouse Foods Paw Paw MI Apple sauce, bottled tea
Packer Canning Company, Inc.
(Honee Bear Canning Co.)Lawton MI
Canned fruit, juices, pickled
vegetables, beans, pie fillings
Pero Family Farms Benton Harbor MIGreen bean processing, packaged
vegetables
Red Gold, Inc. Geneva IN Processed tomato products
Red Gold, Inc. Oresters IN Processed tomato products
Red Gold, Inc. Elwood INProcessed tomato products, ketchups,
sauces, juices, salsa
Sechler's Pickles Saint Joe IN Pickle products
The Coca-Cola Company (Minute
Maid)Paw Paw MI Juices
Welch's Lawton MI Juices
Zentis North America LLC Plymouth IN Fruit fillings and preparations
Source: Austin Consulting
Figure FV.1: Fruit and Vegetable Processing - Major Companies in the I&M Region
Fruit and Vegetable Processing
43
More specific data on employment, wages, and other information for the Fruit
and Vegetable industry group is included below in Figure FV.2.
Key information from the overview table above are as follows:
1. Fruit and Vegetable Canning makes up the bulk of employment for the
Fruit and Vegetable group with 2,003 out of 2,059 jobs. This category also
has 4.96 times the national average of jobs in this category. An
employment density this large shows labor specialization, which can be
marketed.
2. Industry employment declined by 17% over the 10-year period from 2006-
2016.
In examining the data more closely, it does not appear that Coca-Cola (Minute
Maid) and Welch’s operations are included under the Frozen Fruit, Juice, and
Vegetable Manufacturing (311411) category. These two juice companies have
significant employment. Austin was unable to determine how they were
categorized in the data.
As a special note, other categories in the 3114 industry group are not included in
this analysis. The rationale for this exclusion is twofold:
1. Frozen Specialty Food Manufacturing (311412) is more closely attributed
to Meat and Poultry products than Fruit and Vegetable Processing for the
I&M region.
2. The other two categories in this group, Specialty Canning (311422) and
Dried and Dehydrated Food Manufacturing (311423) did not have a
Description NAICS 2016 Jobs
% Change
in Jobs
(2006-2016)
2016
Average
Annual
Wages,
Salaries, &
Proprietor
Earnings
2016
Location
Quotient
2016
Payrolled
Business
Locations
2016 GRP
Frozen Fruit, Juice, and
Vegetable Manufacturing311411 56 -58% $ 26,734 0.27 3 $ 2,459,967
Fruit and Vegetable Canning 311421 2003 -15% $ 45,483 4.96 17 $158,724,794
Summary Data 3114 2059 -17% $ 44,971 3.35 20 $161,184,761
Figure FV.2: Fruit and Vegetable Processing - Overview of the I&M Region
Source: EMSI 2017.3 Class of Worker
Fruit and Vegetable Processing
44
presence (less than 10 jobs) in the region. These categories would include
soups and dried fruits and vegetables.
In order to better understand the job decline in the Fruit and Vegetable
Processing group, Figure FV.3 shows a comparison of employment change in
the I&M region to the U.S. from 2006-2016, with projected future changes.
As Figure FV.3 shows, the Fruit and Vegetable Processing industry group was
adding employment in the I&M region through 2009, before starting a gradual
decline that became much steeper starting in 2015. The decline is projected to
continue for the I&M region, while the industry is also losing jobs at the national
level. These data do not consider two recent closures in the region:
• Tree House Foods announced, in August 2017, plans to close its Bay Valley
Pickle plant in Plymouth, IN which employed 150 workers. The facility also
processed peppers. Tree House Foods also announced that it was closing
plants in Alabama and Minnesota as part of a restructuring plan.17
• Del Monte in September 2017, announced plans to close its tomato
processing facility in Plymouth, IN, shifting production to its California
facility. The facility produces ketchup and tomato-based sauces, and
17 16 WNDU. 2017. “TreeHouse Foods to close Plymouth facility, others.” August 3.
Fruit and Vegetable Processing
45
juice from concentrate. The closure was expected to impact 100
workers.18
On a positive note, Pero Family Farms recently added a fresh-cut vegetable
processing line to its existing cold storage and distribution operations in Benton
Charter Township, MI. The $2.7 million expansion announced in 2015 is estimated
to create approximately 74 new jobs.19
Near the I&M region, Austin identified some limited growth activity in terms
expansion announcements. In 2015, Campbell Soup acquired Garden Fresh
Gourmet, a fresh salsa and dip manufacturer based in Ferndale, MI. The
acquisition included plans for $20-million in facility expansions, the first phase of
which began in 2016.20
Austin completed a shift share analysis to measure the competitiveness of the
region based on national and industry trends. More information and
background on this type of analysis is contained in Appendix K. The shift share
analysis is summarized in Figure FV.4.
The shift share analysis shows there is no competitive advantage in Fruit and
Vegetable Processing for the I&M region. Fruit and Vegetable Canning
employment was expected to lose 208 jobs between 2006-2016 but lost 340.
Frozen Fruit, Juice, and Vegetable Manufacturing also lost more jobs than
expected.
Wage growth for the industry group was also examined. Figure FV.5 below
illustrates recent wage growth in the I&M region compared to the U.S.
18 Daily Herald. 2017. “Del Monte closing Indiana plant, shifting work to California.” September 12.
19 Cox, S. 2015. “Pero Family Farms Food Company to Add Vegetable Processing Facility in Benton Charter
Township.” Cornerstone Alliance September 17.
20 Welch, S. 2016. “Campbell launches expansion, new products at Garden Fresh.” Crain’s Detroit Business.
August 7. Updated April, 1, 2017.
Description NAICSExpected
Change
Actual
Change
Regional
Competitive
Effect
Frozen Fruit, Juice, and Vegetable Manufacturing 311411 0 -78 -78
Fruit and Vegetable Canning 311421 -208 -340 -132
Figure FV.4: Fruit and Vegetable Processing - Shift Share Analysis of the I&M Region (2006-2016)
Source: EMSI 2017.3 Class of Worker
Fruit and Vegetable Processing
46
Historically since 2001, wages of Fruit and Vegetable Processing in the I&M
region have slightly lagged those of the U.S. on average. The gap has grown in
more recent years, with average annual wages for the I&M region lagging the
U.S. by more than $3,700 in 2016. Recent job losses could have contributed to
the slower growth in wages. However, competitive wages and a surplus of
trained workers resulting from these losses could be selling points to prospective
companies considering expanding to the region.
Supply Chain
The Fruit and Vegetable Processing industry group within the I&M region is a
mature industry with a developed supply chain that is closely linked to the
region’s agricultural assets. Companies in the industry tend to locate near their
supply of these perishable products to minimize transportation costs. Many of
these companies are also vertically integrated, owning some of the farms from
which they source to have more control over their supply and cost structure.
Purchases and sales of the Fruit and Vegetable Processing group were analyzed
to uncover relationships between companies in the industry and their suppliers,
service providers and customers. Figure FV.6 below illustrates the most significant
industries to which the Fruit and Vegetable Processing group purchases. Each
industry accounts for at least 2% of the total group purchases.
Fruit and Vegetable Processing
47
Compared to many of the other industry groups covered in this study, Fruit and
Vegetable Processing has a more diverse range of industries from which it
purchases inputs. Raw purchases for this group come from crops and total an
estimated $34.1 million. While significant, it only represents 5.5% of the total
purchases for the Fruit and Vegetable group in the region. Processed ingredients
make up a much larger portion of purchases for this industry group at an
estimated $131.6 million. Additionally, packaging materials and services also
represent larger shares of the total purchases by the industry group, estimated
at $68.2 million and $51.8 million respectively. These data mean that even
though crops are essential to the production of Fruit and Vegetable products,
they have a relatively low cost when compared with other inputs.
Of the industry categories in Figure FV.6 above, there are two notable
relationships to point out for the Fruit and Vegetable group. The Fruit and
Vegetable industry group purchases 82% of Fruit and Vegetable Canning
category inputs from inside the region, suggesting a strong connection.
Additionally, the in-region purchases for crop production amount to 67% of the
total purchases for this category. This shows a strong connection between crops
produced in the region and Fruit and Beverage Processing. More details on Fruit
and Vegetable purchases are in Appendix L.
To enhance the purchases data for the Fruit and Vegetable group, Austin
mapped berries (by county) in acres grown and vegetables (by county) in acres
harvested for Illinois, Indianan, Michigan, and Ohio. These data are illustrated in
Figure FV.7 (berries) and Figure FV.8 (vegetables) below.
Raw Processed Packaging Services
Crop ProductionFlavoring Syurp and Concentrate
ManufacturingMetal Can Manufacturing
Corporate, Subsidiary, and Regional
Managing Offices
Fruit and Vegetable CanningOther Metal Container
Manufacturing
Wholesale Trade Agents and
Brokers
Spice and Extract ManufacturingCorrugated and Solid Fiber Box
Manufacturing
Coffee and Tea Manufacturing
Mayonnaise, Dressing, and Other
Prepared Sauce Manufacturing
Figure FV.6: Fruit and Vegetable Processing Supply Chain - Purchases
Source: EMSI 2017.3 Class of Worker
Fruit and Vegetable Processing
48
Fruit and Vegetable Processing
49
Figures FV.7 and FV. 8 show where Fruit and Vegetable processing companies in
the I&M Region can source crops. While there is far more vegetable (including
tomatoes) production than fruit in the I&M region, these data only show a
significant density of berry production just north of the I&M region in counties
along the shore of Lake Michigan.
The fertile areas of the I&M region along Lake Michigan depicted in these figures
represents the southern extent of Michigan’s “Fruit Belt”. Most of the benefits of
this Fruit Belt can be attributed to climate and soils. The climate experienced in
the Fruit Belt is unique in to this geography, and often termed as a microclimate.
This small and distinct climate pattern is associated with the leeward (eastern)
side of Lake Michigan that lends to longer growing season and protection from
untimely frosts. When the microclimate is paired with the very fertile soils
common throughout the Great Plains and Mississippi and Ohio River Valleys, the
area became unique with its ability to cultivate fruit and vegetables (see
Appendices E and F).
The diversity of crops produced throughout each state are highlighted in Figures
FV. 9 and FV.10 below which show total production by product and the
percentage which each state contributes to U.S. production.
Commodity Indiana United States Indiana Contribution
Snap Beans 34,500,000 2,003,000,000 1.7%
Cantaloup 31,500,000 1,377,400,000 2.3%
Watermelon 301,000,000 4,019,600,000 7.5%
Pumpkins 66,200,000 1,607,000,000 4.1%
Sweet Corn 41,800,000 7,392,600,000 0.6%
Tomatoes 490,900,000 28,746,400,000 1.7%
Corn (Grain) 52,993,360,000 848,290,128,000 6.2%
Hay 3,562,000,000 269,562,000,000 1.3%
Maple Syrup 12,000 34,918,100 0.0%
Peppermint (Oil) 575,000 5,800,000 9.9%
Spearmint (Oil) 264,000 3,208,000 8.2%
Soybeans 19,423,500,000 257,765,160,000 7.5%
Wheat 1,360,800,000 138,523,380,000 1.0%
Source: USDA, NASS, Quick Stats
Notes: Some calculations had to be made to get all of these data transferred into
pounds. Assumptions were made to calculate Maple Syrup (8.3 lbs per gal), Soybeans (60
lbs per bu), and Wheat (60 lbs per bu).
Figure FV.9: Indiana Fruit and Vegetable Production (2016) - Measured in
Pounds
Fruit and Vegetable Processing
50
Based on Figures FV.9 (Indiana) and FV.10 (Michigan), Indiana has less diversity
in crops when compared with Michigan. However, there are some products that
are produced in Indiana that do not appear in Michigan. Cantaloupe,
watermelon, peppermint, and spearmint are present and accessible in Indiana
whereas there is not a significant enough presence in Michigan for the USDA to
report. Meanwhile, Michigan ranks notably high in terms of production and
Commodity Michigan United States Michigan Contribution
Apples 1,175,000,000 11,273,500,000 10.4%
Asparagus 23,000,000 70,500,000 32.6%
Snap Beans 166,700,000 2,003,000,000 8.3%
Blueberries 110,300,000 593,610,000 18.6%
Cabbage 115,500,000 2,266,500,000 5.1%
Carrots 139,600,000 3,030,600,000 4.6%
Celery 106,200,000 1,706,200,000 6.2%
Sweet Cherries 45,220,000 700,480,000 6.5%
Tart Cherries 227,000,000 329,300,000 68.9%
Cucumbers 541,400,000 1,768,800,000 30.6%
Grapes 186,800,000 15,338,060,000 1.2%
Peaches 21,200,000 1,591,260,000 1.3%
Peppers 36,400,000 1,561,500,000 2.3%
Potatoes 1,702,000,000 44,141,100,000 3.9%
Pumpkins 79,100,000 1,607,000,000 4.9%
Squash 146,400,000 613,100,000 23.9%
Sweet Corn 85,600,000 7,392,600,000 1.2%
Tomatoes 314,600,000 28,746,400,000 1.1%
Dry Beans 400,200,000 2,871,200,000 13.9%
Corn (Grain) 17,935,680,000 848,290,128,000 2.1%
Hay 4,714,000,000 269,562,000,000 1.7%
Maple Syrup 747,000 34,918,100 2.1%
Oats 55,680,000 2,072,640,000 2.7%
Soybeans 6,241,800,000 257,765,160,000 2.4%
Sugarbeets 9,178,000,000 73,762,000,000 12.4%
Wheat 3,043,800,000 138,523,380,000 2.2%
Figure FV.10: Michigan Fruit and Vegetable Production (2016) Measured in
Pounds
Source: USDA, NASS, Quick Stats
Notes: Some calculations had to be made to get all of these data transferred into pounds.
Assumptions were made to calculate Oats (32 lbs per bu), Maple Syrup (8.3 lbs per gal),
Soybeans (60 lbs per bu), and Wheat (60 lbs per bu).
Fruit and Vegetable Processing
51
contribution of asparagus, blueberries, tart cherries, cucumbers, and squash.
These tables highlight the diversity of crops which processors in the region have
access to nearby.
On the sales side of the supply chain relationships, Figure FV.11 below focuses on
industry categories that further process Fruit and Vegetable products to show
value added relationships.
When compared with the U.S., Figure FV.11 illustrates that there is less significant
diversity in the number of relationships with processors for the Fruit and
Vegetable group. Commercial Bakeries and Specialty Canning are two
important categories that are missing in the Fruit and Vegetable Processing
sales. These two industries use a significant amount of outputs from Fruit and
Vegetable Processing to add value to their final products. In the case of
Commercial Bakeries, fruit fillings are used in a variety of products including pies,
cakes, and other pastries. Specialty Canning operations use fruit and vegetable
products similarly in products like soups. These data represent opportunities that
could be further explored.
Trade in terms of total purchases and sales for Fruit and Vegetable Processing in
the I&M region are shown in Figure FV.12 below.
Indiana Michigan Power United States
Processing Processing
Fruit and Vegetable CanningFrozen Specialty Food
Manufacturing
Frozen Specialty Food
ManufacturingFruit and Vegetable Canning
Spice and Extract ManufacturingFrozen Fruit, Juice, and Vegetable
Manufacturing
Commercial Bakeries
Specialty Canning
Dried and Dehydrated Food
Manufacturing
Soft Drink Manufacturing
Figure FV.11: Fruit and Vegetable Processing Supply Chain - Sales
Source: EMSI 2017.3 Class of Worker
Fruit and Vegetable Processing
52
The group imports an estimated 77% of its inputs from outside the I&M region.
Given the seasonality of crop yields, it is reasonable to expect companies to
import goods to produce products year-round. With 89% of the sales being
exports, many of the products being sold are likely final goods that are
distributed to a much larger area.
National Industry Outlook and Trends
As highlighted previously, the industry has been challenged with growth on a
national level. Increasing demand for fresh and organic fruits and vegetables
has particularly affected the market for canned produce. Competition from
imported fruits and vegetables has also affected some U.S. growers and
packagers.
Other trends that are impacting the industry include:
• Increasing demand for healthy but convenient foods has been positive for
certain fresh fruits and vegetables, such as pre-cleaned, pre-sliced /
diced, and other basic preparation that can be conveniently consumed
or cooked.
• The juice market is seeing a rise in demand for fresh cold-pressed juices in
place of heat pasteurized and juices from concentrate due to health
benefits.
• Natural fruit and vegetable juices are also being increasingly used for
flavoring and health benefits in other beverages.
• Many successful fruit and vegetable processors have shifted from a
regional to a national or global sourcing model to meet year-round
consumer demand for fresher products.
• Demand for locally grown produce continues to play a role in how and
where consumers purchase their produce.
• Hydroponic greenhouses have become increasingly popular based on
their ability to support year-round and organic production in a more
controlled environment.
Opportunities
Given the relative volume and diversity of fruits and vegetables produced and
processed in the region combined with how the industry is changing, several
% In-region % Imported Total % In-Region % Exported Total
Fruit and Vegetable Processing 3114 23% 77% 617,347,012$ 11% 89% 866,249,611$
Figure FV.12: Fruit and Vegetable Processing - Trade Analysis of the I&M Region (2016)
Purchases SalesNAICSDescription
Source: EMSI 2017.3 Class of Worker
Fruit and Vegetable Processing
53
opportunities for area growers, existing businesses, entrepreneurs, and business
attraction may include:
• Co-packing – canning companies reported excess production capacity
and interest in new co-packing opportunities.
• Suppliers opportunities to other regional industries such as Baking and
Snack and Dairy (e.g. fruit preparations)
• Trending products:
o Ready to eat fruit snacks.
o Ready to cook fresh vegetables.
o Cold-pressed juices.
• Potential to transition towards a growing organic sector.
• Value-added products (sauces, salsas, dried / dehydrated fruits and
vegetables).
• Meal kit delivery.
Issues and Concerns
• The regional industry is in decline and the national outlook for many of the
products that are processed in the area does not look favorable in the
near-term based on current trends.
• Area growers reported increased competition from foreign (lower cost)
growers, including Peru, Brazil, and Turkey, in certain categories.
• The canning industry is concerned about the potential of a tariff on
tinplate, which is primarily imported into the U.S. from China.
• Many of the orchards in southwest Michigan are small and require manual
harvesting.
• Current and future State / Federal migrant worker policies could affect
the overall health of the industry given competition from foreign countries.
• The area’s climate and humidity pose challenges for large-scale organic
production in the region.
o Many farmers are also reluctant to make the switch given the
significant transition period and lack of support network.
o Challenges include disease (fungus) and pests (e.g. Spotted Wing
Drosophila).
o However, some eastern states have been very successful in
overcoming these challenges (i.e. New York, Wisconsin).
Meat and Poultry
54
MEAT AND POULTRY
Industry
The Meat and Poultry industry group has an estimated total of 1,811 jobs spread
across 30 companies in the I&M region. This industry group has experienced 40%
growth in jobs from 2006 to 2016 and contributes over $122.2 million to the
region’s GRP. There is a large variety of Meat and Poultry manufacturing
in the region including slaughtering and basic processing, cured meats,
prepared meats, and egg products. A list of major Meat and Poultry processors
are included in Figure MP.1 below.
More specific data on employment, wages, and other information for the Meat
and Poultry industry group are included below in Figure MP.2.
Company City State Products
Culver Duck Middlebury IN Duck processing
Echo Lakes Foods Huntington IN Cooked egg and breakfast products
HRR Enterprises, Inc. La Porte IN Beef rendering
Miller Poultry Orland IN Poultry processing
Monogram Food Solutions Bristol IN Corn dogs
Plumrose USA Elkhart IN Bacon
Source: Austin Consulting
Figure MP.1: Meat and Poultry - Major Companies in the I&M Region
Description NAICS2016
Jobs
% Change
in Jobs
(2006-2016)
Average
Annual
Wages,
Salaries, &
Proprietor
Earnings
(2016)
2016
Location
Quotient
2016
Payrolled
Business
Locations
2016 GRP
Animal (except
Poultry) Slaughtering311611 239 -9% $ 33,243 0.26 13 $ 17,840,075
Meat Processed from
Carcasses311612 781 9% $ 32,520 0.94 11 $ 56,924,712
Rendering and Meat
Byproduct Processing311613 31 -34% $ 35,479 0.54 2 $ 2,524,221
Poultry Processing 311615 760 184% $ 40,524 0.49 4 $ 44,975,600
Summary Data 3116 1811 40% $ 36,026 0.54 30 $ 122,264,608
Source: EMSI 2017.3 Class of Worker
Figure MP.2: Meat and Poultry - Overview of the I&M Region
Meat and Poultry
55
Key observations from Figure MP.2 are included below.
1. Meat Processed from Carcasses (311612) and Poultry Processing (311615)
account for the largest employment for the Meat and Poultry industry
group. Meat Processed from Carcasses is the largest category with an
estimated 781 jobs. These jobs can mostly be attributed to Monogram
Foods Solutions and Plumrose USA.
2. Most of the employment growth is attributed to the Poultry Processing
category, which saw 184% growth over the ten-year period. Miller Poultry
and Culver Duck are the top regional employers in this category.
3. There is no significant density of labor within the I&M region in this industry
group. All location quotients are below the national level (1.00) and Meat
Processed from Carcasses has the highest with 0.94, despite high industry
employment numbers.
4. Wages in Meat and Poultry are relatively low when compared to other
Food and Beverage industry groups. Poultry Processing has the highest
average annual wages in the group at $40,524.
It is important to note that the Seafood Product Preparation and Packaging
(311710) category has been excluded from this industry group, because the
category has virtually no presence (less than 10 jobs) within the region.
Another category that was excluded from the industry data is Frozen Specialty
Food Manufacturing (311412). This category covers a broad range of products,
some of which including frozen meals containing meats and poultry products.
Data suggests that Echo Lakes Foods, which produces cooked egg and
breakfast products in Huntington County, IN is covered under this category.
However, the category was excluded for purposes of the industry analysis
because it likely represents non-meat related businesses.
Austin further examined industry employment growth. Figure MP.3 below
compares industry employment growth in the I&M region to industry
employment changes in the U.S. The chart also shows forecasted growth
through 2026.
Meat and Poultry
56
The I&M region has experienced considerable growth in Meat and Poultry. From
2006-2016, this region has seen 40% growth in jobs, while the U.S. average has
declined by 2%. In fact, U.S. employment is stagnant over the entire period in
the figure (2006-2026). The I&M region is also expected to grow at a steady rate
through 2026 with an overall growth rate of 73% over the 20-year period.
Recent expansion projects that have been announced in the I&M region
underscore this growth.
• Monogram Foods announced plans in 2016 to invest $5 million in a new
mini corn dog line at its 104,000 square-foot facility in Bristol, IN, creating
up to 74 new jobs. This announcement followed a $13 million investment in
its plant in 2015.21
• Fisher Meats announced plans in 2017 to expand its smoked meat
processing operations into an existing 26,000 square-foot plant in Redkey,
IN.22
21 16 WNDU. 2016. “Elkhart County food manufacturer to expand, add up to 74 jobs.” September 7.
22 Area Development. 2017. “Fisher Meats Opens Idle Plant, Triples Footprint In Redkey, Indiana.” February
10.
Meat and Poultry
57
Additionally, the surrounding areas have also seen significant investment in new
and existing facility expansions. Several of these projects are highlighted below:
• Clemens Food Group started production in 2017 at its new 550,000 square-
foot pork processing plant in Coldwater, MI. The project was estimated to
cost over $255 million and create over 800 new jobs when the operation is
at full capacity.23
• Boar’s Head Brand opened, in 2016, its newly constructed 150,000 square-
foot delicatessen products manufacturing facility and R&D center in New
Castle, IN.24 The project was estimated to cost an initial $80 million and
employ up to 200 workers.25
• Indiana Packers Corporation invested over $40 million in a 43,000 square-
foot addition at its Delphi, IN pork processing plant to increase bacon
production capacity in 2015.26 In December 2016, the company also
announced plans for a $23 million cold storage distribution center next to
the plant.27
• Select Genetics, a Minnesota based company which announced plans in
March 2017 to invest $22 million to construct an 83,000 square-foot turkey
hatchery in Terre Haute, IN.28
• Kent Quality Foods, a producer of sausages and franks, announced plans
to build a $34.8 million processing facility in Jamestown, MI near Grand
Rapids, MI.29
Other notable industry activity within the region that could have an impact on
existing and new operations include:
23 Day, C. 2017. “Clemens Food Group leads the way in expanding U.S. shackle space.” National Hog
Farmer. July 31.
24 McCrory, J. 2016. “Boar’s Head brand to open new manufacturing facility in Henry County.” WSVX Giant
96 News. April 13.
25 Indy Star. 2014. “Boar’s Head Meats to build New Castle plant with 200 jobs.” August 28.
26 Vizza, C.M. 2015. “Indiana Packers to expand Delphi plant.” Journal & Courier. September 15.
27 Brown, A. 2016. “Indiana Packers Boosting Delphi Operations.” Inside Indiana. December 6.
28 U.S. News & World Report. 2017. “$22M Turkey Hatchery Project Planned in Western Indiana.” March 18.
29 Runyon, C. 2016. “New meat-processing plant in Jamestown to create 140 new jobs.” M Live Media
Group. May 15.
Meat and Poultry
58
• JBS USA announced in March 2017 the acquisition of Plumrose USA, which
has a bacon processing facility in Elkhart, IN.30
• AquaBounty, a biotech company that has developed a genetically
engineered salmon, announced in June, 2017 the purchase of a fish farm
previously operated by Bell Fish Company.31 This would be the company’s
first U.S. fish farm. Following the purchase, the U.S. decided to renew a
ban on the import of genetically engineered salmon, so the project has
been put on hold.32
With such a high amount of positive activity in and around the I&M region in
Meat and Poultry, companies are seeing advantages to locating in the region.
Austin completed a shift share analysis to measure the competitiveness of the
region based on national and industry trends. The shift share analysis is
summarized in Figure MP.4 below.
The only category that exceeded growth exceptions in the I&M region is Poultry
Processing, which added 492 jobs between 2006-2016 while it was expected to
lose nine. This resulted in a competitive effect of 502 (rounded) for the region. A
competitive effect this high is impactful for the region and shows a clear
competitive advantage. The other categories have insignificant results in the
shift share analysis. What can be gleaned from results this close to zero is that
these industries are aligned with national and industry job trends.
Industry group wage growth was also examined. Figure MP.5 below compares
wage growth in the I&M region to the U.S. since 2001.
30 Crews, J. 2017. “JBS to acquire Plumrose USA.” Food Business News. March 14.
31 Vinluan, F. 2017. “AquaBounty Lines Up First U.S. Fish Farm With Deal for Indiana Site.” Exome. June 13.
32 Brooks, J. 2017. “U.S. Senate looks to renew ‘Frankenfish’ import ban.” Juneau Empire. July 24.
Description NAICSExpected
Change
Actual
Change
Regional
Competitive
Effect
Animal (except Poultry) Slaughtering 311611 -21 -25 -3
Meat Processed from Carcasses 311612 70 61 -9
Rendering and Meat Byproduct Processing 311613 -1 -15 -14
Poultry Processing 311615 -9 492 502
Source: EMSI 2017.3 Class of Worker
Figure MP.4: Meat and Poultry - Shift Share Analysis of the I&M Region (2006-2016)
Meat and Poultry
59
The figure above illustrates that industry wages in the I&M region have been
prone to fluctuation. Data from the most recent year (2016) shows that average
annual wages in the I&M region are $36,026 compared to $38,328 for the U.S.
Industry wages have generally been slightly below the U.S. in recent years. This
could be due to trending employment growth in the region accompanied by
entry level and less experienced workers. Major industry employers interviewed
by Austin for this project noted that local labor market conditions have
contributed to significant increases in wages to be able to compete for labor.
These data would not reflect those more recent increases.
Supply Chain
Meat and Poultry processors generally locate near the farms from which they
source livestock from or the processing plants from which they purchase fresh or
frozen meat for further preparation. Because of this, regional supply chains are
very important to the overall health and growth of the industry. To evaluate the
supply chain, data for purchases and sales between the Meat and Poultry
industry group and other industries were assessed. Purchases show relationships
between suppliers and service providers, while sales data shows customer
relationships.
Meat and Poultry
60
Figure MP.6 below illustrates the most significant industries from which the Meat
and Poultry group purchases. Each industry accounts for at least 2% of the total
group purchases.
Animal Production and Aquaculture accounts for about 58% of the purchases
for Meat and Poultry, totaling an estimated $316.4 million in 2016. All three
processed input categories of this supply chain make up about 7% each, and
total an estimated $113.6 million. Services only make up $20.6 million of the
purchases for this industry group. These data underscore the importance of
livestock in the Meat and Poultry supply chain. Further details on Meat and
Poultry purchases are contained in Appendix L.
To better understand where livestock are raised and sold in and around the I&M
region, Austin mapped counties in Illinois, Indiana, Michigan, and Ohio with
significant livestock (cattle, goats, hogs, and sheep) and poultry (including
eggs) sales. Figures MP.7 (livestock) and MP.8 (poultry) below display these
animal production data.
Raw Processed Services
Animal Production and Aquaculture Poultry ProcessingCorporate, Subsidiary, and Regional
Managing Offices
Animal (except Poultry)
Slaughtering
Meat Processed from Carcasses
Figure MP.6: Meat and Poultry Supply Chain - Purchases
Source: EMSI 2017.3 Class of Worker
Meat and Poultry
61
Meat and Poultry
62
The above two figures illustrate where Meat and Poultry processing companies
in the I&M region can source from. There are multiple counties within the I&M
region that sell more than $50 million in livestock and some adjacent counties
that sell more than $90 million, as indicated by the darker blues in Figure MP.7.
Figure MP.8 shows concentrations of poultry sales in several areas of the I&M
region and adjacent regions. Around the South Bend area, the concentration of
poultry farms, many of which are Amish, that supply regional poultry producers
can be seen. Other concentrations include the area near Muncie, IN reaching
into Ohio, and Southern Michigan which contain several counties with poultry
sales exceeding $100 million. Not as apparent from the map, but worth noting is
the concentration of shell-egg producers near the I&M region, particularly
around Warsaw, IN.
To provide more data on these livestock sales, Figure MP.9 summarizes total
animal products sold in Illinois, Indiana, Michigan, and Ohio. Although these
data are from 2012, updated 2017 figures will be released later in 2018. It will be
important to monitor any significant changes between 2012 and 2017,
especially in the poultry segment.
Moving forward to sales side of the supply chain for Meat and Poultry processors
in the I&M region, Figure MP.10 below shows the most significant sales
relationships with industries that further process or add value to these products,
and compares them with the U.S.
StateCattle
(Including Calves)Goats Hogs
Sheep
(Including Lambs)
Poultry
(Including Eggs)Total
Illionis 984,466,000$ 1,988,000$ 1,519,514,000$ 7,017,000$ 136,876,000$ 2,649,861,000$
Indiana 522,694,000$ 2,709,000$ 1,273,099,000$ 6,128,000$ 1,164,199,000$ 2,968,829,000$
Michigan 603,653,000$ 1,602,000$ 482,177,000$ 10,327,000$ 472,218,000$ 1,569,977,000$
Ohio 689,655,000$ 3,398,000$ 788,761,000$ 12,853,000$ 946,592,000$ 2,441,259,000$
Figure MP.9: Animal Product Production (2012) - in Annual Sales
Source: USDA, NASS, Quick Stats
Meat and Poultry
63
There are similarities between the top purchasers of Meat and Poultry products
within the I&M region and the U.S. One notable difference is that Dog and Cat
Food Manufacturing is not significant in the I&M regional supply chain. This
highlights the low industry presence of pet food manufacturing in the I&M
region, and could be an opportunity given the region’s supply chain resources
that support this industry. Also, sales to Poultry Processing accounts for 33% of the
total Meat and Poultry group sales for the I&M region, compared to just 11% for
the U.S. This points to the heavy influence of Poultry Processing to the industry
group for I&M.
Total purchases and sales for the Meat and Poultry industry group in the I&M
region area summarized in Figure MP.11 below.
Relative to other Food and Beverage industry groups, Meat and Poultry
purchases within the I&M region account are noticeably higher. This highlights
the industry’s connection to local livestock producers. Also, 29% of the industry
group’s sales are made to customers in the region, highlighting the fact that
many of these products are intended for regional distribution. Still 71% of the
sales are exported from the region.
Indiana Michigan Power United States
Processing Processing
Poultry ProcessingAnimal (except Poultry)
Slaughtering
Meat Processed from Carcasses Meat Processed from Carcasses
Animal (except Poultry)
SlaughteringPoultry Processing
Pharmaceutical Preparation
ManufacturingDog and Cat Food Manufacturing
Figure MP.10: Meat and Poultry Supply Chain - Sales
Source: EMSI 2017.3 Class of Worker
% In-region % Imported Total % In-Region % Exported Total
Meat and Poultry 3116 38% 62% $549,579,462 29% 71% $689,480,333
NAICSDescription
Figure MP.11: Meat and Poultry - Trade Analysis of the I&M Region (2016)
Source: EMSI 2017.3 Class of Worker
SalesPurchases
Meat and Poultry
64
National Industry Outlook and Trends
Overall, meat consumption and production in the U.S. continues to rise, driven
primarily by pork and poultry. Eggs have also seen steady increases while beef,
lamb and veal have struggled in comparison. Total production and growth for
each product are illustrated in Figure MP.12 below.
Many consumers are becoming increasingly concerned about how livestock is
raised and processed. Some of the more common concerns include:
• Antibiotic and hormone use
• Ethical treatment – concerns over Concentrated Animal Feeding
Operations (CAFOs)
• Diet – increasing demand for animals raised on more natural diets (e.g.
grass fed)
• Use of additives and preservatives in cooked and cured meats
These concerns have forced large meat and poultry processors to adapt, while
creating opportunities for companies that focus on organic and pasture raised
meats / eggs.
Other trends impacting the industry include:
• Meat snacks, such as jerkies, have seen significant recent growth and
global demand is projected to continue to rise at a high rate.33
33 Cision PR Newswire. 2017. “Global Meat Snacks Market - Growth, Trends and Forecasts (2017-2022) - New
Approaches in Marketing & Innovative Flavors - Research and Markets.” May 16.
Product Measurement 2006 2016 2006-2016 % Change
Beef Million Pounds 25,792 24,908 -3%
Veal Million Pounds 144 74 -49%
Pork Million Pounds 20,877 24,789 19%
Lamb and mutton Million Pounds 177 138 -22%
Total red meat Million Pounds 46,990 49,909 6%
Broilers Million Pounds 35,500 40,696 15%
Other chicken Million Pounds 505 549 9%
Turkey Million Pounds 5,682 5,981 5%
Total poultry Million Pounds 41,823 47,364 13%
Total red meat and poultry Million Pounds 88,813 97,273 10%
Total Eggs Million Dozen 7,650 8,565 12%
Figure MP.12: Meat and Poultry - Federally Inspected Production
Source: USDA, National Agriculture Statistics Service
Meat and Poultry
65
• The U.S. is also seeing an increasing demand and start-up activity for plant
based meat / protein alternatives (e.g. Impossible Foods, Beyond Meat).
This has previously been a niche segment, but new and improved product
development combined with increasing demand from vegetarians and
flexitarians is fueling growth. Many of these startups are also well-funded.
Opportunities
Based on the analysis and recent industry trends on a national level,
opportunities for future growth and development for the I&M region include:
• Value-added meat products - including cooked / cured meats, prepared
meals, meat snacks
• Ethnic inspired foods – continues to be an opportunity in value-added
meats as the U.S. becomes more diverse and consumers seek out more
authentic flavors.
• Aquaculture – sustainable seafood production through manmade
fisheries is on the rise globally and the U.S. could expect to see more
activity in this industry. The U.S. also currently imports a lot of seafood
products, which has a major impact on costs.
• Plant based meat substitutes – not dependent on meat but competing
with the industry. Can be made from a variety of plant based ingredients,
which may be grown or could be grown nearby.
• Pet foods – many pet foods contain meat products. This is addressed
more specifically under the Animal Food section of the report.
• Meat exports - raw meat exports continue to be an opportunity for
processors. China just recently lifted a ban on U.S. beef imports, which has
potential to impact production in the U.S.34
• Contract meat processing – smaller farms throughout the region reported
having to ship their meat outside the area for processing.
• Organics – rising demand for organic and pasture raised meats and
poultry products presents market and financial opportunities for growers
and processors.
• Utility growth – Meat and poultry processing operations, particularly those
that slaughter and process raw meats, tend to be large in scale, and use
high volumes of water for sanitation and electricity for processing
equipment and refrigeration.
34 Bloomberg News. 2017. “U.S. Beef Debuts in China After 14 Years, May Help Balance Trade.” June 30.
Meat and Poultry
66
Issues and Concerns
• Regulations on CAFOs – there have reportedly been increasing
conversations among stakeholders in Indiana and Michigan about
regulations on CAFOs, with some residents and activists expressing
concerns over animal welfare, negative impacts to residences, storm
water quality, and other concerns. Any future regulations at the state level
that would put the state in a less favorable regulatory position versus other
states could impact industry growth. More restrictive zoning regulations at
the local level can also have an adverse impact on growth of existing
CAFOs or new ones.
• Labor shortages tend to be most pronounced in large animal slaughtering
and processing facilities, which account for a large percentage of
regional industry employment.
• Indiana currently has no USDA beef inspectors in the state due to a
reported lack of business.
Beverage
67
BEVERAGE
Industry
The Beverage industry group is comprised of approximately 60 companies within
the I&M region that employ more than 1,500 workers. Products produced in the
region include bottled water, teas, juices, and sodas; alcoholic beverages,
including beer, wine, and distilled spirits; and other specialty beverages.
Beverage companies in the I&M territory have access to large quantities of fresh
water via aquifers and Lake Michigan, which is an important strength for the
region. The industry has experienced very strong regional growth, with
employment increasing by 248% over a 10-year period between 2006 and 2016.
Figure B.1 below identifies the major Beverage companies in the I&M region.
More specific data on employment, wages, and other information for the
Beverage industry group is included below in Figure B.2.
Company City State Products
Bell's Brewery Galesburg MI Beer
Coca-Cola Consolidated Portland IN Soft drinks, bottled beverages
The Coca-Cola Company (Minute Maid) Paw Paw MI Juices
Knouse Foods Paw Paw MI Apple sauce, bottled tea
Nestle USA Anderson IN Beverages, non-dairy creamers
Welch's Lawton MI Juices
Figure B.1: Beverage - Major Companies in the I&M Region
Source: Austin Consulting
Description NAICS2016
Jobs
% Change
in Jobs
(2006-2016)
2016 Wages,
Salaries, &
Proprietor
Earnings
2016
Location
Quotient
2016
Payrolled
Business
Locations
2016 GRP
Soft Drink Manufacturing 312111 101 51% $ 28,947 0.19 1 $ 6,761,943
Bottled Water Manufacturing 312112 261 38% $ 78,573 2.54 4 $ 46,507,131
Ice Manufacturing 312113 66 25% $ 30,208 1.30 5 $ 4,612,260
Breweries 312120 737 1064% $ 22,476 1.85 20 $117,831,740
Wineries 312130 275 342% $ 21,349 0.66 26 $ 18,422,663
Distilleries 312140 74 7341% $ 22,695 0.89 4 $ 33,726,157
Summary Data 3121 1515 248% $ 32,702 0.95 60 $227,861,893
Source: EMSI 2017.3 Class of Worker
Figure B.2: Beverage - Overview
Beverage
68
Key observations from the overview data in Figure B.2 include:
1. Breweries account for the largest share of employment in the group with
737 jobs. This category also grew at a high rate of 1,064% from 2006 to
2016 and has a density of labor that is 1.85 times the U.S. average.
2. Like Breweries, Distilleries (312140) also experienced high job growth. Both
categories show high numbers because of their low employment in 2006.
Breweries only had 63 jobs at that time, whereas, Distilleries did not have
any reported employment until 2011.
3. The high job numbers for the Breweries and Wineries categories are split
among many companies which suggests that most of these operations
are of smaller scale. The only exception is Bell’s Brewery, which is one of
the largest craft breweries in the U.S.
4. The Soft Drink Manufacturing (312111) category can be attributed to the
Coca-Cola Consolidated production facility in the territory.
It is important to note that the industry employment data is not inclusive of
bottled dairy products and fruit and vegetable juices. These are typically
considered under their respective industry categories and difficult to separate
for this type of analysis. However, there are many relationships between those
industries such as packaging technologies and materials, that warrant
consideration in terms of labor and supply chain similarities.
Also, Austin was unable to account for the significant employment in the Bottled
Water Manufacturing category. Data showed that there is a large employer in
Kalamazoo County, MI, but Austin was unable to pinpoint the specific company.
It is possible that this is the result of a miscategorization.
To expand upon the favorable employment growth of the Beverage industry
group in the I&M territory, Figure B.3 compares the employment growth of the
I&M region to that of the U.S.
Beverage
69
Figure B.3 illustrates the strong employment growth in the industry within the I&M
region and at the national level. Much of this growth can be attributed to
breweries and other alcoholic beverage producers. There has been a recent
explosion in craft beer and other alcoholic beverages across the nation and
growth in the I&M region has followed this trend.
In addition to the growth in alcoholic beverages at the regional level, Nestlé
announced, in December 2017, it was investing $79.5 million on new equipment
upgrades at its Anderson, IN beverage plant, adding approximately 30 jobs.
Nestlé opened the plant in 2009 and has completed multiple expansion and re-
investment projects.35
Looking near the I&M region at other industry related activity, Nestlé Waters
North American announced, in 2016, a $36 million expansion in its water bottling
facility in Stanwood, MI. The project was slated to add two bottling lines at the
plant.36 Subsequently, Nestlé has had its permits denied to increase pumping
35 Powder & Bulk Solids. 2017. “Nestle to Invest $79M in New Equipment for Indiana Plant.” December 15.
36 Nestlé Waters North America. 2016. “Nestlé Waters North America Announces $36 Million Expansion of Ice
Mountain® Bottling Plant.” Press Release. October 31.
Beverage
70
capacity at the plant and has faced public opposition to the project due to
concerns over impacts to regional groundwater supply.37
Austin also completed a shift share analysis to measure the competitiveness of
the region based on national and industry trends. The shift share analysis is
summarized in Figure B.4.
Each of the Beverage categories have a positive competitive effect for the I&M
region. These data seem to be reflective of the large employment growth that
wasn’t expected at the same level for the U.S. Breweries and Wineries
performed especially well from a competitive standpoint with effects of 593 and
173 respectively. This underscores the fact that the Breweries category has been
the leading driver of growth for the Beverage group in the I&M region.
Figure B.5 below depicts overall industry wage growth for the I&M region and
the U.S. since 2001.
37 Cassleman, D. 2017. “We’ve Got Issues: Nestle’s push to pump more water held up in northern Michigan.”
Interlochen Public Radio. August 21.
Description NAICSExpected
Change
Actual
Change
Regional
Competitive
Effect
Soft Drink Manufacturing 312111 0 34 35
Bottled Water Manufacturing 312112 1 71 70
Ice Manufacturing 312113 -6 13 19
Breweries 312120 81 674 593
Wineries 312130 40 213 173
Distilleries 312140 1 73 73
Source: EMSI 2017.3 Class of Worker
Figure B.4: Beverage - Shift Share Analysis (2006-2016)
Beverage
71
As shown in Figure B.5, there is a significant difference in the Beverage wages for
the I&M region and the U.S. In 2016 there is a gap of more than $18,000 between
I&M ($32,702) and the U.S. ($51,128). When looking at the trendline (in red) for
the I&M region, wages have slightly decreased over this period, despite
significant wage inflation in the U.S. Given that craft alcoholic beverage
producers largely influence the industry group, this would explain the lower
wages. Many of these are small start-up companies that require bartenders,
servers, and other service and retail oriented staff that may work part-time and
receive cash tips. These wages are not representative of those found at
industrial beverage production facilities, which have a limited presence in the
I&M region.
Supply Chain
To evaluate the rest of the supply chain, data for purchases and sales between
the Beverage industry group and other industries were assessed. Purchases show
relationships between suppliers and service providers, while sales data shows
customer relationships. With water being the top ingredient in most beverage
products and important for processing foods in general, Austin assessed regional
water assets under a separate section of this report.
Beverage
72
Figure B.6 below illustrates the most significant industries in which the Beverage
group purchases. Each industry accounts for at least 2% of the total group
purchases.
From the figure above, the Beverage industry group has a variety of inputs that
add complexity to the supply chain. There is quite a diversity of packaging
materials that are purchased for Beverage production. Packaging materials
make up the largest portion of purchases for this industry group at 22% or an
estimated $72.0 million. Purchases from services, processed ingredients, and
crops are estimated at $56.2 million, $42.9 million, and $8.0 million respectively.
Commonly purchased processed ingredients include flavorings, syrups,
sweeteners, and grains used in the production of alcoholic beverages. The full
detail of Beverage purchases are described in Appendix L.
Because data in Figure B.6 is based on national averages which reflect many
non-alcoholic beverages, Austin also analyzed the Alcoholic Beverage supply
chain which better aligns the industry in the I&M region. Figure B.7 below shows
the purchases for the Alcoholic Beverage industry group in the region.
Raw Processed Packaging Services
Crop ProductionFlavoring Syrup and Concentrate
ManufacturingPlast ics Bott le Manufacturing
Corporate, Subsidiary, and Regional
Managing Offices
Wet Corn Milling Metal Can ManufacturingLessors of Nonfinancial Intangible
Assets (except Copyrighted Works)
Flour MillingGlass Product Manufacturing
Made of Purchased Glass
Other Aluminum Rolling, Drawing,
and Extruding
Corrugated and Solid Fiber Box
Manufacturing
Aluminum Sheet, Plate, and Foil
Manufacturing
Other Metal Container
Manufacturing
Figure B.6: Beverage Supply Chain - Purchases
Source: EMSI 2017.3 Class of Worker
Beverage
73
Much like the overall Beverage group, the Alcoholic Beverage group purchases
a variety of packaging materials. The main difference with the Alcoholic
Beverage group is highlighted in processed ingredients. Wet Corn Milling and
Flavoring Syrup and Concentrate Manufacturing industry categories are not
significant enough (below 2% of purchases) to show up in the Alcoholic
Beverage purchases. This is because Alcoholic Beverages are not using as much
sweeteners and flavoring additives in products. Purchases from Distilleries can be
attributed to the use of barrels that are used for aging beer.
Sales to other processing industries in the Beverage supply chain for the I&M
region were compared to the U.S. below in Figure B.8.
It is difficult to identify any major supply chain gaps or specific opportunities for
further value-added processing from these data, as is sometimes possible with
Raw Processed Packaging Services
Crop Production Flour Milling Metal Can ManufacturingCorporate, Subsidiary, and Regional
Managing Offices
Dist illeriesGlass Product Manufacturing
Made of Purchased Glass
Lessors of Nonfinancial Intangible
Assets (except Copyrighted Works)
Other Metal Container
Manufacturing
Corrugated and Solid Fiber Box
Manufacturing
Glass Container Manufacturing
Other Pressed and Blown Glass and
Glassware Manufacturing
Figure B.7 : Alcoholic Beverage Supply Chain - Purchases
Source: EMSI 2017.3 Class of Worker
Indiana Michigan Power United States
Processing Processing
Dist illeries Dist illeries
Wineries Soft Drink Manufacturing
Dog and Cat Food Manufacturing Other Animal Food Manufacturing
Wineries
Figure B.8: Beverage Supply Chain - Sales
Source: EMSI 2017.3 Class of Worker
Beverage
74
other food products. Most beverages are processed for final sale, and not
further processed at other facilities. Relationships between alcoholic beverage
companies are common in terms of selling grain, barrels, and other materials to
one another. These relationships have more to do with supplies. Also, spent grain
from breweries and distilleries is commonly used as animal feed.
Total purchases and sales were also reviewed as a part of the supply chain
analysis for the Beverage industry group. These data are presented in Figure B.9
below.
Purchases from outside the region make up more than three-quarters of the
total purchases. By contrast, a higher percentage of sales that are kept in the
region, which is likely influenced by the significance of small Alcoholic Beverage
companies in the area that do not have as wide of a distribution network to sell
their products. These data also show a substantial difference between the total
value of purchases and sales in comparison to other industry groups. This
highlights the higher margins associated with many alcoholic and specialty
beverages.
National Industry Outlook and Trends
Large global companies such as Coca-Cola and PepsiCo have a strong
influence on the U.S. beverage market. For alcoholic beverages, Anheuser-
Busch InBev, Constellation Brands, Diageo, and other multinational companies
control many of the largest brands of beer, wine, and spirits. These companies
have recently faced competition from smaller specialty beverage and craft
breweries and have responded by acquiring those successful smaller brands
with high growth potential to diversify their portfolio. This trend is expected to
continue as these smaller companies have been driving innovations in the
industry.
% In-region % Imported Total % In-Region % Exported Total
Beverage 3121 24% 76% 324,405,928$ 31% 69% 611,226,465$
Figure B.9: Beverage - Trade Analysis of the I&M Region (2016)
Description NAICSPurchases Sales
Source: EMSI 2017.3 Class of Worker
Beverage
75
Other trends affecting the beverage industry include:
• Demand in certain natural, health focused ready-to-drink segments that
offer a healthy alternative to traditional sodas and sweetened beverages
including:
o Kombucha / teas
o Cold brew coffees
o Cold pressed juices
• Competition for shelf space, especially in the craft beer and ready-to-
drink categories is fierce. This is a growth barrier for many local craft
breweries seeking to expand distribution beyond the immediate region.
• The alcoholic beverage market is strong, with craft producers accounting
for much of the growth. Many of these companies are solely focused on
local growth and cater to consumers who prefer to support local
businesses and are looking for experience (beer, wine, food,
entertainment). These companies have also played a vital role in
community development efforts. Growth is expected to slow as local
markets become more saturated. Categories include:
o Craft breweries
o Craft distilleries
o Wineries
o Mead, cider, other fermented beverages
Opportunities
• The region has many advantages that could be attractive to beverage
companies, including proximity to beverage packaging suppliers, location
for distribution, and water capacity.
• Beverage companies in the area can leverage regional resources
including fruit production for juices and flavoring companies for new
product development.
• The industry offers opportunities for entrepreneurial / start-up growth,
especially in craft beverages. This can also community redevelopment
efforts.
• Many beverage companies require large volumes of water as a product
ingredient and for sanitation. Electric usage varies depending on process
equipment, blow-molding capabilities, refrigeration requirements and
scale of operations.
Issues and Concerns
• Limited organic fruit production in the area limits potential in the juice
category.
Beverage
76
• The craft beer market is becoming very saturated and not expected to
continue to grow at the pace experienced over the past several years.
• New beverage plants, especially large bottled water facilities, are prone
to public scrutiny due to the large volume of water they consume, and
low rate of discharge since a high percentage of the water goes into the
finished product. When considering these projects, it’s important to
understand the potential impacts on area water resources, identify any
barriers, and be prepared to respond to any public criticisms that can
stymie recruitment efforts.
Confectionery
77
CONFECTIONERY
Industry
The Confectionery industry group’s prominence in the I&M region is primarily
attributed to Kraft Heinz and American Licorice, the two largest industry
employers. Data shows that these companies account for most of the industry
group’s 836 jobs in the region.
Figure C.1 below highlights these two companies and the products they
produce.
More specific data on employment, wages, and other information for the
Confectionery industry group is included below in Figure C.2.
Company City State Products
American Licorice Company La Porte IN Candy
The Kraft Heinz Company Kendallville IN Marshmallows, caramels
Figure C.1: Confectionery - Major Companies in the I&M Region
Source: Austin Consulting
Description NAICS2016
Jobs
% Change
in Jobs
(2006-2016)
2016 Wages,
Salaries, &
Proprietor
Earnings
2016
Location
Quotient
2016
Payrolled
Business
Locations
2016 GRP
Beet Sugar Manufacturing 311313 0 0% $ - 0.00 0 $ -
Cane Sugar Manufacturing 311314 0 0% $ - 0.00 0 $ -
Nonchocolate Confectionery
Manufacturing311340 836 56% $ 40,358 6.00 4 $ 92,890,322
Chocolate and Confectionery
Manufacturing from Cacao Beans311351 0 0% $ - 0.00 0 $ -
Confectionery Manufacturing from
Purchased Chocolate311352 244 -24% $ 24,783 1.16 11 $ 17,395,712
Summary Data 3113 1080 26% $ 36,837 3.08 15 $110,286,033
Figure C.2: Confectionery - Overview of the I&M Region
Source: EMSI 2017.3 Class of Worker
Confectionery
78
Key observations from the data shown above includes:
1. The Nonchocolate Confectionery Manufacturing category accounts for
most of the industry group’s jobs and has a labor density that is six times
that of the U.S.
2. Confectionery Manufacturing from Purchased Chocolate has 244 jobs
that are spread across an estimated 11 companies. These data are likely
attributed to smaller, specialty retail chocolate shops.
3. The Nonchocolate Confectionery Manufacturing category accounted for
all the industry’s growth in the region.
Although these data show no presence of Beet Sugar Manufacturing (311313)
and Cane Sugar Manufacturing (311314), there are beet sugar refineries
located close to the region in Michigan and sugar distribution centers near the
area.
Since there is such a high rate of growth in the Confectionery industry group, it is
important to make a comparison with the rest of the nation to see how well the
I&M region is doing. Figure C.3 displays this relationship.
Confectionery
79
Industry employment in the U.S. has been rebounding recently after a period of
decline. In contrast, the I&M region has seen more substantial growth in
employment. Future employment projections for the U.S. are not favorable,
showing a gradual decline consistent with many other economic forecasts for
the industry. While projections look more favorable for the I&M region, this may
be misleading given a high rate of recent growth in the industry, influenced by a
relatively small number of companies.
The positive performance for the I&M region is highlighted by recent plant
investments by the two largest employers.
• American Licorice Co. announced, in 2013, plans to invest $10 million in
equipment and renovations at its La Porte, IN manufacturing plant,
creating 35 jobs.38
• Kraft Heinz announced, in 2017, a $5 million investment in new equipment
and a boiler system at its Kendallville, IN plant.39
Another recent industry expansion project near the region was also identified.
• Albanese Confectionery, a candy and gummy maker, announced a $33
million investment at its Hobart, IN facility in 2017, that is expected to add
150 additional employees.40
Considering the industry group’s growth in the I&M region, a shift share analysis
was completed to measure the competitiveness of the region based on
national and industry trends. The shift share analysis is summarized in Figure C.4
below.
38 NWI Times. 2013. “American Licorice Co. planning $10 million expansion in LaPorte.” January 23.
39 Nartker, D. 2017. “Council OKs Kraft Heinz abatement.” Noble County Economic Development
Corporation. March 22..
40 Caffarini, K. 2017. “Candy company announces $33M expansion in Hobart.” Post-Tribune. December 21.
Confectionery
80
The analysis showed a regional competitive effect of 217 for the Nonchocolate
Confectionery Manufacturing category. Employment in the category between
2006 and 2016 grew by 301, outperforming the expected increase of 84. Other
categories were less significant given the low regional presence. As noted
earlier, Confectionery Manufacturing from Purchased Chocolate declined in
the region, but at a greater rate than expected.
Wage growth for the industry is illustrated in Figure C.5 below, which compares
growth in wages to the U.S.
Description NAICSExpected
Change
Actual
Change
Regional
Competitive
Effect
Beet Sugar Manufacturing 311313 0 0 0
Cane Sugar Manufacturing 311314 0 0 0
Nonchocolate Confectionery Manufacturing 311340 84 301 217
Chocolate and Confectionery Manufacturing
from Cacao Beans311351 0 0 0
Confectionery Manufacturing from Purchased
Chocolate311352 -40 -75 -36
Figure C.4: Confectionery - Shift Share Analysis of the I&M Region (2006-2016)
Source: EMSI 2017.3 Class of Worker
Confectionery
81
The fluctuation in wages for the I&M region is likely the result of a smaller sample
size of companies compared to other industry groups. The red trendline better
illustrates the growth in wages. The chart shows that regional wage growth has
generally followed a similar trend as the U.S., with annual average wages of less
than $37,000 for the I&M region in 2016.
Supply Chain
To evaluate the supply chain, Austin examined purchases and sales data for the
industry group. Purchases show relationships between suppliers and service
providers, while sales data shows customer relationships. Figure C.6 below
illustrates the most significant industries in which the Confectionery group
purchases. Each industry accounts for at least 2% of the total group purchases.
Processed ingredients offer the most variety of industries from which the
Confectionery group purchases. Confectionery purchases an estimated total of
$63.1 million from this segment which amounts to over 28% of its total purchases.
Purchases from services, crops, and packaging materials amount to estimates of
$25.4 million, $22.5 million, and $5.7 million respectively. For more details on
Confectionery purchases in the I&M territory see Appendix L.
From viewing data in Figure C.6, it appears that the Confectionery industry
group purchases from other Confectionery categories that do not have a
presence in the region. As mentioned previously, Michigan has as concentration
of beet sugar refineries, and cane and beet sugar are both available from
nearby distribution centers. Wet corn milling facilities that produce corn
sweeteners and starches are also located near the region (see Appendix C).
Raw Processed Packaging Services
Crop ProductionConfectionery Manufacturing from
Purchased Chocolate
Corrugated and Solid Fiber Box
Manufacturing
Corporate, Subsidiary, and Regional
Managing Offices
Nonchocolate Confectionery
Manufacturing
Wholesale Trade Agents and
Brokers
Chocolate and Confectionery
Manufacturing from Cacao Beans
Cane Sugar Manufacturing
Fluid Milk Manufacturing
Wet Corn Milling
Beet Sugar Manufacturing
Figure C.6: Confectionery Supply Chain - Purchases
Source: EMSI 2017.3 Class of Worker
Confectionery
82
The Confectionery group also benefits from Fluid Milk Manufacturing companies
in the I&M region but this connection only amounts to about 2.6% of the
purchases.
To examine supply chain connections with customers that purchase
confectionery ingredients for further processing, interindustry sales to other
processing industries were examined. Sales within the I&M region were also
compared to the U.S. to look for differences. Figure C.7 illustrates these sales
data.
As seen in Figure C.7 above, there are a variety of processing industry
categories that Confectionery sells to on the regional and national levels. For
example, the inclusion of the Cookie and Cracker Manufacturing, Commercial
Bakeries, and Ice Cream and Frozen Dessert industries highlight the applications
of confectionery ingredients in these products. These sales particularly reveal the
Indiana Michigan Power United States
Processing Processing
Nonchocolate Confectionery
Manufacturing
Confectionery Manufacturing from
Purchased Chocolate
Cookie and Cracker ManufacturingNonchocolate Confectionery
Manufacturing
Confectionery Manufacturing from
Purchased ChocolateCommercial Bakeries
Commercial Bakeries Cookie and Cracker Manufacturing
Dry Pasta, Dough, and Flour Mixes
Manufacturing from Flour
Chocolate and Confectionery
Manufacturing from Cacao Beans
Fluid Milk Manufacturing Cane Sugar Manufacturing
Fruit and Vegetable Canning Breakfast Cereal Manufacturing
Ice Cream and Frozen Dessert
Manufacturing
Dry Pasta, Dough, and Flour Mixes
Manufacturing from Flour
Dry, Condensed, and Evaporated
Dairy Product ManufacturingBeet Sugar Manufacturing
Retail Bakeries
Tort illa Manufacturing
Ice Cream and Frozen Dessert
Manufacturing
Figure C.7: Confectionery Supply Chain - Sales
Source: EMSI 2017.3 Class of Worker
Confectionery
83
connection of Confectionery to the Baking and Snack Food industry, which
could be an opportunity for further exploration.
To build upon the supply chain data described above, Austin also analyzed the
total purchases and sales data for the Confectionery industry group. These data
for the I&M region are detailed in Figure C.8 below.
The Confectionery group purchases about three-quarters of its inputs from
outside the I&M region. Given that many major ingredient suppliers are located
outside the I&M region, this is not surprising. On the sales side, most (90%) of the
Confectionery products are being sold outside the I&M region. This supported by
the fact that the area’s top employers (listed in Figure C.1) primarily produce
final products that are widely distributed.
National Industry Outlook and Trends
U.S. Confectionery industry growth is expected to be very moderate in the
coming years and some analysts are even predicting a decline. The industry
group is facing challenges with a growing health-conscious consumer base in
the U.S., where excess sugar consumption has been linked to obesity and other
health issues.
Other trends affecting the industry include:
• While still widely used, the use of corn sweeteners is declining. This has
given way to cane sugar and relatively new commercial sugars from
other plants, some of which offer more sweetness with less calories.
• Consumers are also demanding use of natural ingredients. Large industry
players such as Mars, Nestlé and Hershey have already announced plans
to remove artificial colors from their products.
• Chocolate and fruit combinations have been recently growing in
popularity.
% In-region % Imported Total % In-Region % Exported Total
Confectionery 3113 24% 76% $224,598,958 10% 90% $370,134,918
Figure C.8: Confectionery - Trade Analysis of the I&M Region (2016)
Description NAICSPurchases Sales
Source: EMSI 2017.3 Class of Worker
Confectionery
84
Opportunities
The industry does not appear to offer the same growth prospects compared to
other industries evaluated for this report. Recent industry investment trends and
growth forecasts are less favorable. The industry is also less concentrated in the
I&M region. One potential opportunity could involve further exploration on
linkages with area baking and snack food companies.
Issues and Concerns
The presently bleak future of corn sweetener use in the industry could impact
the region’s current cost advantage for these confectionery ingredients.
Flavors, Dressings, and
Seasonings
85
FLAVORS, DRESSINGS, AND SEASONINGS
Industry
The Flavors, Dressings, and Seasonings group focuses mostly around larger
companies with an estimated total of six establishments that employ 559
workers. This industry group has about 1.67 times the labor density of the nation
and contributed over $84.7 million to the I&M region’s GRP in 2016. Additionally,
many of the products produced by the industry are ingredients that can add
value to and support other food and beverage products produced in the
region. The major industry employers in the I&M region are listed in Figure FDS.1
below.
More specific data on employment, wages, and other information for the
industry group is included below in Figure FDS.2.
Company City State Products
International Bakers Services, Inc. South Bend IN Flavor and flavor blends
Kalsec, Inc. Kalamazoo MINatural flavorings, extracts, colors, and
antioxidants
McCormick & Company, Inc. South Bend IN Condiments, dressings, and sauces
National Flavors Kalamazoo MI Flavors, colors, and syrups
Wild Flowers and Special
Ingredients (A.M. Todd)Kalamazoo MI Mint oils and extracts
Figure FDS.1: Flavors, Dressings, and Seasonings - Major Companies in the I&M Region
Source: Austin Consulting
Description NAICS2016
Jobs
% Change
in Jobs
(2006-2016)
2016 Average
Annual
Wages,
Salaries, &
Proprietor
Earnings
2016
Location
Quotient
2016
Payrolled
Business
Locations
2016 GRP
Flavoring Syrup and Concentrate
Manufacturing311930 16 -53% $ 59,463 0.22 1 $ 4,737,682
Mayonnaise, Dressing, and Other
Prepared Sauce Manufacturing311941 72 -10% $ 46,006 0.68 1 $ 7,187,751
Spice and Extract Manufacturing 311942 471 28% $ 76,245 3.03 4 $ 72,815,248
Summary Data Unique 559 16% $ 71,841 1.67 6 $ 84,740,681
Figure FDS.2: Flavors, Dressings, and Seasonings - Overview of the I&M Region
Source: EMSI 2017.3 Class of Worker
Flavors, Dressings, and
Seasonings
86
Important information to glean from these data include:
1. Most of the employment in this industry group can be attributed to Spice
and Extract Manufacturing (311942), which covers most of the companies
on the employer list above that produce a variety of extracts and
flavorings used as food ingredients.
2. The data suggests that all the jobs in the Mayonnaise, Dressing, and Other
Prepared Sauce Manufacturing (311941) category are likely linked to
McCormick & Company, Inc.
3. Employment growth in Spice and Extract Manufacturing accounted for all
the growth in the industry category between 2006 and 2016.
Figure FDS.3 illustrates the growth of the industry group in the I&M region
compared with that of the U.S.
Employment in the industry spiked in 2007 for the I&M region, followed by a
sharp decline before stabilizing over the past several years. Nationally, the
industry has experienced strong growth in employment and is projected to
continue to improve over through at least 2026. Weaker projections for the I&M
region could be the result of fluctuations in job performance, influenced heavily
by a small group of employers. For this reason, the national forecast data may
Flavors, Dressings, and
Seasonings
87
be more useful in looking at potential growth prospects for companies doing
business in the region.
A steady flow of investment from companies in and around the I&M region
further support the growth data.
• National Flavors started construction, in 2017, on a new 30,000 square-foot
manufacturing facility near Kalamazoo, MI, where the company is based.
Investment in the new facility was expected to be $4.9 million.41
• Ken’s Foods broke ground, in 2017, on a new 320,000 square-foot
manufacturing and distribution facility in Lebanon, IN for production of
dressings, sauces and marinates. Investment in the new plant is estimated
at $90 million.42
• Kraft Heinz Company announced, in 2016, a $17.2 million expansion at its
Holland, MI plant to consolidate its entire Grey Poupon mustard
production and insource the majority of its Heinz Yellow Mustard.43
• Litehouse, Inc. recently completed a 25,000 square-foot expansion of its
Lowell, MI dressings manufacturing plant and plans to add 77 new jobs.44
• Sensient Flavors announced, in 2015, that it would close plants in
Indianapolis, IN and Canada, shifting production to its facility in Harbor
Beach, MI.45
Given the amount of recent activity that is happening near the I&M territory
there may be an advantage for companies. Competitive advantages can be
measured by a shift share analysis. This type of analysis can show the regional
competitiveness of an area based on variances from national and industry
trends. Figure FDS.4 provides a summary of the shift share analysis.
41 Barrett, M. 2017. “Door hinge manufacturer, flavor company expand in Oshtemo Township.” Kalamazoo
News. November 16.
42 Veleta, K. 2016. “Ken’s Foods’ $90 Million Adds to Recipe for Growth.” Inside Indiana Business. November
16.
43 Achtenberg, K. 2016. “Please pass the mustard. Kraft Heinz brings Grey Poupon mustard production to
Holland.” Michigan Economic Development Cooperation. August 25.
44 The Right Place. 2017. “The Right Place assists Litehouse, Inc. with area expansion.” November 8.
45 Harp, R. 2015. “Sensient Flavors says it will grow.” Huron Daily Tribune. February 19.
Flavors, Dressings, and
Seasonings
88
There appears to be no significant competitive advantages for the industry
categories in Flavors, Dressings, and Seasonings. All the competitive effect results
are too close to zero to show competitiveness. The only category that has a
positive result is Spice and Extract Manufacturing, which added 102 jobs
between 2006 and 2016, 30 more than expected.
Wage growth for the industry group is illustrated in Figure FDS.5 below and
compared to changes in wages at the U.S. level.
Description NAICSExpected
Change
Actual
Change
Regional
Competitive
Effect
Flavoring Syrup and Concentrate Manufacturing 311930 1 -18 -19
Mayonnaise, Dressing, and Other Prepared Sauce
Manufacturing311941 19 -8 -27
Spice and Extract Manufacturing 311942 72 102 30
Source: EMSI 2017.3 Class of Worker
Figure FDS.4: Flavors, Dressings, and Seasonings - Shift Share Analysis of the
I&M Region (2006-2016)
Flavors, Dressings, and
Seasonings
89
Over the 2001-2016 timeframe the U.S. maintains higher wages than the I&M
region in Flavors, Dressings, and Seasonings. However, the I&M region follows a
very similar growth trend. Based on the 2016 data, average annual industry
wages for the U.S. were almost $8,500 higher than the I&M region, at $80,304
and $71,841 respectively. These wages are higher than other industry groups
since the industry requires highly educated professionals with backgrounds in
food science, chemistry, biochemistry, biology, engineering, and other science
disciplines.
Supply Chain
Given the importance of flavorings, extracts, and seasonings as ingredients in a
wide range of food and beverage products, Austin examined the industry
supply chain by looking closely and purchases and sales data for the industry
group. Purchases show relationships between suppliers and service providers,
while sales data shows important customer relationships.
Figure FDS.6 below illustrates the most significant industries in which the Flavors,
Dressings, and Seasonings group purchases from. Each industry accounts for at
least 2% of the total group purchases.
Raw materials and processed ingredients make up an estimated $29.5 million
and $33.4 million of the purchases respectively, and combine for a about 30% of
the total purchases for the industry group in the I&M region. Packaging materials
represent an estimated $24.1 million in purchases and purchases of services
were $13.4 million. Crop Production accounted for the highest percentage of in-
region purchases at an estimated 73%. Many natural flavorings and spices are
derived from various plants and data suggests most of these are growth within
the region. The diversity of crops grown has already been discussed in the Fruit
and Vegetable section of the report.
Raw Processed Packaging Services
Crop Production Fats and Oils Refining and Blending Plast ics Bott le ManufacturingCorporate, Subsidiary, and Regional
Managing Offices
Animal Production and
AquacultureFluid Milk Manufacturing
All Other Plast ics Product
Manufacturing
Fruit and Vegetable CanningPaper Bag and Coated and
Treated Paper Manufacturing
Wet Corn Milling
Figure FDS.6: Flavors, Dressings, and Seasonings Supply Chain - Purchases
Source: EMSI 2017.3 Class of Worker
Flavors, Dressings, and
Seasonings
90
More detail on Flavors, Dressings, and Seasonings purchases in the I&M region
can be obtained from Appendix L.
Given the important role of products produced by the industry group as
ingredients in food and beverages, sales data between the industry group and
other industries was reviewed to look for potential opportunities. Figure FDS.7
below shows the most significant industries which the Flavors, Dressings, and
Seasonings group sells to in the I&M region compared to the U.S.
Only Fruit and Vegetable Canning and Spice and Extract Manufacturing
account for significant sales in the I&M region. Combined these sales make up
about 64% of the total regional sales for this group. Fruit and Vegetable Canning
makes up 54% alone, showing a clear supply chain connection to those
companies within the region. At the U.S. level, there is much more diversity in
significant purchasers of Flavors, Dressings. and Seasonings. This illustrates the
wide range of food and beverage applications. Aside from Fluid Milk
Manufacturing, the rest of these industries have very low presence in the I&M
region.
Indiana Michigan Power United States
Processing Processing
Fruit and Vegetable Canning Soft Drink Manufacturing
Spice and Extract Manufacturing Fruit and Vegetable Canning
Bott led Water Manufacturing
Specialty Canning
Dried and Dehydrated Food
Manufacturing
Fluid Milk Manufacturing
Figure FDS.7: Flavors, Dressings, and Seasonings Supply Chain -
Sales
Source: EMSI 2017.3 Class of Worker
Flavors, Dressings, and
Seasonings
91
Understanding the total purchases and sales of the Flavors, Dressings, and
Seasonings group in the I&M region also aids the overall supply chain analysis.
Data on total purchases and sales are displayed in Figure FDS.8.
An estimated 30% of the industry group’s total purchases occurs within the
region highlighting the close linkage between the region’s agricultural resources
and ingredient suppliers and the industry group. The sales data shows that an
estimated 89% of the products are being sold outside the region, either as
packaged finished product or as ingredients used by other food and beverage
processing companies. Given the specialization that exists within the flavors and
extracts industry and the lesser role that transportations costs play in how food
and beverage processing companies source these ingredients, the high
percentage of exported sales is understandable.
National Industry Outlook and Trends
The flavors industry can provide great insight into trends affecting the food and
beverage industry because of its wide range of applications in processed foods
and beverages. Research and development plays an important role in the
development of new flavors, extract methods, and product formulation. The
industry can provide a glimpse into changes in consumer preferences and spur
new innovations in food and beverage products. Recently, consumers have
been demanding more authentic, natural flavorings and seasonings over
artificial ingredients.
Dressings and sauces, while not growing rapidly is seeing growth in certain
categories including ethnic, premium, and health conscious products. This is
relatively mature industry that continues to look at new applications for growth.
Opportunities
• There are several prominent flavoring companies in the area such as
Kalsec and National Flavors that are closely monitoring flavor trends and
focused on research and development of new flavors. These businesses
already support other food industries with a strong presence in the region
% In-region % Imported Total % In-Region % Exported Total
Flavors, Dressings,
and Seasonings3119 30% 70% $ 206,775,151 11% 89% $ 314,183,772
Figure FDS.8: Flavors, Dressings, and Seasonings - Trade Analysis of the I&M Region (2016)
Description NAICSPurchases Sales
Source: EMSI 2017.3 Class of Worker
Flavors, Dressings, and
Seasonings
92
(e.g. baking and snack, dairy) and could be a resource for further
product development and innovation.
• Dressings / sauces utilize products that are produced in the region,
including refined oils, dairy, fruits / vegetables, flavorings, and packaging.
• Some extracts have applications other than food including
aromatherapy, cosmetics, and other consumer products.
• Flavoring companies offer some of the highest wages in the food and
beverage processing industry subsector due largely to the fact that they
require highly educated professionals with backgrounds in food science,
chemistry, biochemistry, biology, engineering, and other relevant science
disciplines. Focusing on efforts to make the community more attractive for
professionals to relocate will be critical to future growth of these industries
as competition for this type of talent is very high.
Issues and Concerns
• Demand for more natural food ingredients could impact the future of
companies that focus on artificial flavorings.
Animal Food
93
ANIMAL FOOD
Industry
Animal Food is primarily comprised of operations that manufacture animal feed
and pet food products. It is the smallest industry group covered in this report,
with only one major company, Wellpet LLC in Mishawaka, IN, identified in the
I&M region through the research. One employer with 62 employees in Madison
County, IN, did appear in the data, but could not be verified.
Even though there is not a large Animal Food presence within I&M boundaries
there several significant operations have recently located nearby (see recent
activity on the following page).
More specific data on employment, wages, and other information for the
Animal Food industry group is included below in AF.1.
There are an estimated 258 jobs in the Animal Food group in the region. These
jobs have been decreasing in number since 2006 by a total of 21% over a ten-
year period. This decrease is mainly attributed to a decline in Dog and Cat Food
Manufacturing. The Animal Food group also has a lower density of labor than
that of the U.S. with a location quotient of 0.65. Average wages for the industry
are higher than many other food processing industry groups, and the group
contributed over $59.1 million to the region’s GRP in 2016.
Figure AF.2 illustrates the year-over-year decline in employment and compares
employment change for the industry group in the I&M region to the U.S.
Description NAICS2016
Jobs
% Change
in Jobs
(2006-2016)
2016
Average
Annual
Wages,
Salaries, &
Proprietor
Earnings
2016
Location
Quotient
2016
Payrolled
Business
Locations
2016 GRP
Dog and Cat Food Manufacturing 311111 160 -31% $ 59,184 0.95 3 $ 45,435,603
Other Animal Food Manufacturing 311119 98 -5% $ 53,415 0.43 10 $ 13,665,221
Summary Data 3111 258 -21% $ 57,000 0.65 13 $ 59,100,824
Source: EMSI 2017.3 Class of Worker
Figure AF.1: Animal Food - Overview of the I&M Region
Animal Food
94
The I&M region experienced a decline of almost 35% from 2006 to 2015. In 2016,
there was a sharp increase in employment in the region and this may be driving
the upward projection to 2026. The positive forecast also aligns with projected
growth for the industry in the U.S.
A review of recent industry investment activity found several investments in
animal feed facilities in the I&M region.
• Co-Alliance and Farmers Grain announced, in August 2017, a joint venture
to build a feed mill at the Farmers Grain facility in Columbia City, IN.46
• Naturally Recycled Proteins announced, in 2016, plans invest $10 million to
expand its manufacturing plant in Montpelier, IN by 24,000 square-feet.
The company produces protein additives for pet food manufacturers.47
46 Schroeder, E. 2017. “New joint venture to build feed mill in Indiana.” World-Grain.com. August 3.
47 PetfoodIndustry.com. 2016. “Pet food ingredient supplier expanding in Indiana.” July 19.
Animal Food
95
There has also been very strong investment activity near the I&M region recently,
highlighted by these projects.
• Blue Buffalo Co. broke ground on a $147 million pet food manufacturing
complex in Richmond, IN, in 2016 which is expected to create up to 165
new jobs.48
• Micronutrients announced plans in 2017 to construct a new 164,000
square-foot manufacturing and warehouse facility in New Castle, IN to
produce animal feed additives. The project is expected to create up to
50 new jobs.49
• OP Nutrition announced plans in 2017 to invest $24 million to build its first
feed-mill operation in Peru, IN.50
• Cargill in December 2016, announced plans to invest $19 million to build a
75,000 square-foot animal feed plant in Owosso, MI.51
A shift share analysis was conducted to measure the competitiveness of the I&M
region for the Animal Food industry group. Figure AF.3 below summarizes this
analysis.
The shift share analysis yielded negative competitive effects for the I&M region.
While the industry was expected to grow based on national and industry trends,
both categories lost jobs.
48 Shuey, M. 2017. “Blue Buffalo plans to begin hiring workers soon.” Pal-Item. April 23.
49 Indiana Economic Development Corporation. 2017. “Micronutrients.” May 10.
50 Gerber, C. 2017. “Feed company to invest $24 million to build mill in Peru.” Kokomo Tribune. February 22.
51 Sturgeon, G. 2016. “Cargill Breaks Ground on Owosso Animal Feed Plant.” Independent Newsgroup.
December 14.
Description NAICSExpected
Change
Actual
Change
Regional
Competitive
Effect
Dog and Cat Food Manufacturing 311111 72 -49 -122
Other Animal Food Manufacturing 311119 10 -5 -15
Source: EMSI 2017.3 Class of Worker
Figure AF.3: Animal Food - Shift Share Analysis of the I&M
Region (2006-2016)
Animal Food
96
Wage growth for the industry group was compared to the U.S. from 2001 to 2016
as shown in Figure AF.4.
Because of the low employment numbers of the Animal Food industry, the
figures are more sensitive in their reaction to changes, which helps explain the
wide variance for the I&M region displayed above. With a sample size this small
it is difficult to draw conclusions from these data. However, more recently wages
have risen closer to U.S. averages.
Supply Chain
To evaluate the supply chain, data for purchases and sales between the
industry group and other industries were assessed. Purchases show relationships
between suppliers and service providers, while sales data shows customer
relationships.
Figure AF.5 below illustrates the most significant industries from which the Animal
Food group purchases. Each industry accounts for at least 2% of the total group
purchases.
Animal Food
97
Industry purchases in the processed section of Figure AF.5 make up about 30%
of the total purchases for an estimated $50.9 million. This segment also has the
most variety and shows purchases from industries that the region has a strong
presence in, such as Animal (except Poultry) Slaughtering, Meat Processed from
Carcasses, and Soybean and Other Oilseed Processing categories. Additionally,
crops makeup $21.2 million in Animal Food purchases, while packaging
materials and services account for an estimated $11.7 million and $12.8 million in
purchases respectively. Further details on Animal Food purchases can be found
in Appendix L.
Figure AF.6 displays significant sales (more than 2%) to other processing industries
in the I&M region, compared to the U.S.
The only industry identified in Figure AF.6 is Dog and Cat Food Manufacturing in
the I&M region. This industry category only makes up an estimated 2.81% of the
sales for this group, showing little opportunity for further value-added processing
Raw Processed Packaging Services
Crop ProductionAnimal (except Poultry)
SlaughteringMetal Can Manufacturing
Corporate, Subsidiary, and Regional
Managing Offices
Meat Processed from CarcassesOther Metal Container
ManufacturingRail t ransportat ion
Soybean and Other Oilseed
Processing
Wholesale Trade Agents and
Brokers
Wet Corn Milling
Fats and Oils Refining and Blending
Dist illeries
Medicinal and Botanical
Manufacturing
Flour Milling
Figure AF.5: Animal Food Supply Chain - Purchases
Source: ESMI 2017.3 Class of Worker
Indiana Michigan Power United States
Processing Processing
Dog and Cat Food Manufacturing None
Figure AF.6: Animal Food Supply Chain - Sales
Source: EMSI 2017.3 Class of Worker
Animal Food
98
of these products. More than 90% of the sales are final products that go either to
farmers (82%) or veterinarians (8%). Appendix L describes sales relationships for
the Animal Food group in more detail.
Total purchases and sales for the industry group are summarized in Figure AF.7.
Approximately three-quarters of goods are both sourced and sold outside of the
I&M region. Based on the presence of industries in the I&M region that supply
Animal Food manufacturers, the data suggests that there could be
opportunities to boost local sourcing opportunities for the industry.
National Industry Outlook and Trends
Overall Industry outlook for growth in Animal Food continues to look very
positive. Important trends are outlined below.
• Investments in animal feed plants will continue to follow growth in the
meat and poultry industry.
• Like trends in human food, consumers are demanding more natural
based pet foods that more closely align with their pets’ natural / heretical
diet (i.e. no-grain dog food).
• The pet food industry has had to conform to more stringent food safety
requirements under the new Food Safety Modernization Act (FSMA) rules
and is now being treated similarly to food manufacturing intended for
human consumption.
Opportunities
• The region has strong supply chain resources to support additional
investments in pet food and animal feed plants.
• Investment in these types of facilities often occur in more rural locations,
which serves as an opportunity for some rural communities that are not
always the first to be considered for certain projects.
% In-region % Imported Total % In-Region % Exported Total
Animal Food 3111 25% 75% $152,675,464 24% 76% $230,513,685
Figure AF.7: Animal Food - Trade Analysis of the I&M Region (2016)
Description NAICSPurchases Sales
Source: EMSI 2017.3 Class of Worker
Animal Food
99
Issues and Concerns
• Any state regulatory changes that adversely impact Concentrated
Animal Feeding Operations (CAFOs) would likely have an adverse effect
on existing industry and potential new plants.
• Concerns by residents over odors commonly associated with pet food
plants can be a challenge for existing companies and a major location
criteria for new plant investment. Efforts to attract these types of
companies should consider site location, applicable local zoning and
land use regulations, and general community attitude towards these
types of projects.
Labor Analysis
100
LABOR ANALYSIS
Labor is typically a major consideration in site location decisions for new food
and beverage plants. Nationally, the food and beverage industry has been
growing steadily. This steady growth, combined with other changes in the U.S.
economy has created challenges for food companies. While labor challenges
are not limited to the food and beverage manufacturing industry, there are
critical issues that create unique challenges for the industry.
U.S. consumers spend over $1.5 trillion annually on food and beverage products.
Competition within the food and beverage industry is fierce, and there is a
constant pressure on manufacturers to keep operating costs low, especially
since the industry is largely considered to be supplying a basic need. The
pressure includes wages, which are generally among the highest operating
costs for food and beverage plants. Considering this with the labor market
pressures resulting from a growing industry and a U.S. economy that has been
transitioning more heavily towards a service and technology based economy,
food and beverage manufacturers have become increasingly more concerned
about labor supply and cost. Companies are also looking more closely at
automation technologies to address these challenges; however, facility
constraints and cost are frequent obstacles.
As previously highlighted, the I&M territory has experienced even more
significant growth in food and beverage processing jobs than the U.S. To better
understand the labor market, Austin evaluated occupational employment and
wage data for the I&M territory and each of its four labor market sub-regions.
General comparisons were also made to other competing regions throughout
the Midwest. Feedback was collected from area food and beverage processors
interviewed for the project to understand specific labor market challenges,
strengths, and points of concern. Information is detailed in the following order:
1. Occupations
2. Labor Market Sub-Regions
3. Competitor Evaluation
4. Employer Input
Labor Analysis
101
Occupations
When evaluating labor markets, companies and consultants often consider the
availability of experienced workers within the required job categories. Austin
identified the top 25 occupations that the Food and Beverage subsector draws
employees from at a national level. The information was compared with
occupational data for the I&M region. Several occupations were omitted from
this comparison because these were more retail / service based, and not critical
to most production operations. Additionally, all other categories with
accounting for less than 1% of the total employment were omitted.
Figure L.1describes the national occupation requirements of the Food and
Beverage subsector and compares these requirements with employment in the
I&M region.
Jobs
% Change
(2006-
2016)
% of Total
Industry
Median
Hourly
Earnings
Jobs
% Change
(2006 -
2016)
% of Total
Industry
Median
Hourly
Earnings
51-9111Packaging and Filling Machine Operators and
Tenders152,322 10% 8.4% $13.60 1,359 22% 9.0% $14.02
51-3092 Food Batchmakers 122,414 7% 6.8% $13.37 960 9% 6.3% $12.05
51-3022 Meat, Poultry, and Fish Cutters and Trimmers 121,170 (4%) 6.7% $11.80 501 44% 3.3% $12.92
51-3023 Slaughterers and Meat Packers 75,638 (2%) 4.2% $12.81 124 25% 0.8% $13.17
53-7062Laborers and Freight, Stock, and Material Movers,
Hand70,569 6% 3.9% $12.59 577 22% 3.8% $12.63
53-7064 Packers and Packagers, Hand 65,078 6% 3.6% $10.65 746 24% 4.9% $11.14
51-3011 Bakers 64,168 10% 3.6% $11.84 461 15% 3.0% $10.79
51-1011First-Line Supervisors of Production and Operating
Workers58,293 7% 3.2% $27.51 558 22% 3.7% $25.80
51-9198 Helpers--Production Workers 57,755 1% 3.2% $11.94 766 21% 5.1% $11.96
53-7051 Industrial Truck and Tractor Operators 44,339 9% 2.5% $15.62 367 14% 2.4% $15.30
49-9041 Industrial Machinery Mechanics 41,510 20% 2.3% $23.84 426 33% 2.8% $21.63
51-9061 Inspectors, Testers, Sorters, Samplers, and Weighers 38,270 7% 2.1% $17.91 412 22% 2.7% $16.54
49-9071 Maintenance and Repair Workers, General 34,454 7% 1.9% $17.75 346 22% 2.3% $17.65
51-3093 Food Cooking Machine Operators and Tenders 28,311 6% 1.6% $13.63 294 7% 1.9% $14.50
53-3032 Heavy and Tractor-Trailer Truck Drivers 28,263 14% 1.6% $19.26 256 34% 1.7% $18.79
51-9012Separating, Filtering, Clarifying, Precipitating, and
Still Machine Setters, Operators, and Tenders27,255 22% 1.5% $18.44 177 36% 1.2% $18.02
51-9023Mixing and Blending Machine Setters, Operators,
and Tenders25,416 15% 1.4% $17.16 219 11% 1.4% $16.12
51-3099 Food Processing Workers, All Other 25,352 1% 1.4% $11.61 123 6% 0.8% $12.03
11-1021 General and Operations Managers 22,376 13% 1.2% $47.41 209 25% 1.4% $37.64
43-5071 Shipping, Receiving, and Traffic Clerks 22,265 5% 1.2% $15.02 250 21% 1.7% $14.22
51-2092 Team Assemblers 22,133 8% 1.2% $14.51 375 17% 2.5% $15.77
53-7061 Cleaners of Vehicles and Equipment 19,435 5% 1.1% $10.90 165 11% 1.1% $10.73
43-5081 Stock Clerks and Order Fillers 18,517 15% 1.0% $11.48 153 37% 1.0% $11.13
43-9061 Office Clerks, General 17,012 9% 0.9% $14.75 144 20% 1.0% $14.49
53-3033 Light Truck or Delivery Services Drivers 16,100 16% 0.9% $14.64 141 45% 0.9% $14.18
Source: EMSI 2017.3 Class of Worker
Figure L.1: Occupation Comparison (2016)
SOC Description
United States Indiana Michigan Power
Labor Analysis
102
Observations from data in Figure L.1 and are summarized below.
• Median occupation wages for the I&M region are generally in line with or
lower than U.S. wages. This highlights a competitive advantage of the
I&M region. The largest difference in wages are among the managerial
occupation categories. These categories usually require the most
experience and education.
• The percentage of job growth changes between 2006 and 2016 were
much higher in the I&M territory, which generally shows that companies in
the region are hiring for these positions. The significant growth has not had
an adverse impact on wage competitiveness to this point.
• For the most part I&M follows the U.S. trends for amounts (percentages) of
occupations required by the Food and Beverage subsector. There are
only two categories that lack the same employment share, which are
Slaughterers and Meat Packers (51-3023) and Food Processing Workers, All
Other (51-3099).
• I&M has notably more than the U.S. average of Team Assemblers, Helpers-
Production Workers, and Packers and Packagers, Hand.
Labor Market Sub-Regions
Building upon the occupation comparison shown in Figure L.1, Austin also
collected these data for each of the four I&M sub-regions. These regions were
first described in the original request for proposals and were later refined based
on conversations I&M staff. Data for these regions were collected at the county
level. Each sub-region is connected to a population center. Given the size of the
I&M service territory, these data highlight differences in industry subsector
employment and occupation data within each labor market sub-region.
Figure L.2 below shows the employment by occupation for each of the four I&M
regions along with the U.S. for 2016.
Labor Analysis
103
Data in the table above are generally consistent with a fairly even spread of
employment across regions in the I&M territory. There are, however, a few things
that stand out about these data. Benton Harbor and Muncie generally have
lower employment across occupation categories. This reflects the fact that
these two sub-regions have lower populations and labor forces.
The Benton Harbor and Muncie labor markets do not have a significant
presence of Meat, Poultry, and Fish Cutters and Trimmers (51-3092) and
SOC DescriptionUnited
States
Indiana
Michigan
Power
Benton
Harbor
Fort
WayneMuncie
South
Bend
51-9111Packaging and Filling Machine Operators and
Tenders152322 1359 325 345 214 475
51-3092 Food Batchmakers 122414 960 171 234 320 235
51-3022 Meat, Poultry, and Fish Cutters and Trimmers 121170 501 <10 241 <10 247
51-3023 Slaughterers and Meat Packers 75638 124 19 62 <10 42
53-7062Laborers and Freight, Stock, and Material Movers,
Hand70569 577 113 185 138 141
53-7064 Packers and Packagers, Hand 65078 746 111 215 177 242
51-3011 Bakers 64168 461 70 164 61 167
51-1011First-Line Supervisors of Production and Operating
Workers58293 558 140 174 111 133
51-9198 Helpers--Production Workers 57755 766 131 287 96 252
53-7051 Industrial Truck and Tractor Operators 44339 367 76 117 100 75
49-9041 Industrial Machinery Mechanics 41510 426 156 119 81 69
51-9061 Inspectors, Testers, Sorters, Samplers, and Weighers 38270 412 125 135 68 84
49-9071 Maintenance and Repair Workers, General 34454 346 80 111 66 89
51-3093 Food Cooking Machine Operators and Tenders 28311 294 67 105 41 81
53-3032 Heavy and Tractor-Trailer Truck Drivers 28263 256 74 85 49 48
51-9012Separating, Filtering, Clarifying, Precipitating, and
Still Machine Setters, Operators, and Tenders27255 177 91 57 16 12
51-9023Mixing and Blending Machine Setters, Operators,
and Tenders25416 219 54 43 59 63
51-3099 Food Processing Workers, All Other 25352 123 11 42 31 39
11-1021 General and Operations Managers 22376 209 49 63 41 55
43-5071 Shipping, Receiving, and Traffic Clerks 22265 250 39 93 45 74
51-2092 Team Assemblers 22133 375 93 86 82 113
53-7061 Cleaners of Vehicles and Equipment 19435 165 50 46 33 36
43-5081 Stock Clerks and Order Fillers 18517 153 52 43 25 33
43-9061 Office Clerks, General 17012 144 48 36 27 33
53-3033 Light Truck or Delivery Services Drivers 16100 141 61 35 17 29
Figure L.2: Sub-Region Employment by Occupation Comparison (2016)
Source: EMSI 2017.3 Class of Worker
Labor Analysis
104
Slaughterers and Meat Packers (51-3023) occupations. The Meat and Poultry
industry has a limited presence in these two markets, in comparison to the Fort
Wayne and South Bend regions.
As described in previous sections of this report, the I&M territory has been
exceeding the growth of the U.S. in Food and Beverage by a significant
amount. This growth has been experienced fairly equally across the four I&M
regions as well. All four regions are experiencing over 20% growth in Food and
Beverage. This relationship for I&M, the four regions, and the U.S. is better
highlighted by the figure below.
In addition to high employment growth in Food and Beverage, the I&M service
territory also has lower wages than that of the U.S. with the exception of the
Muncie region. Wages across these regions vary significantly from nearly $40,000
to $50,000 for the Food and Beverage subsector. These differences are
highlighted in Figure L.4 below.
Labor Analysis
105
Job density for each industry group was also compared across sub-regions, to
highlight local concentrations of employment within each industry group. These
measures varied between sub-regions, with each area having different
strengths. Figure L.5 below summarizes the Location Quotient for each industry
group in the I&M region and each sub-region. Any quotient above 1.00
indicates a stronger concentration of employment relative to the U.S. For more
information on location quotients see Appendix J.
Description
Indiana
Michigan
Power
Benton
Harbor
Region
Fort
Wayne
Region
Muncie
Region
South
Bend
Region
Animal Food 0.65 0.19 0.26 1.09 1.11
Confectionery 3.08 0.38 3.88 2.02 4.83
Fruit and Vegetable 3.35 4.69 0.10 9.47 2.68
Dairy 2.68 3.23 4.36 3.68 0.22
Meat and Poultry 0.54 0.10 0.84 0.00 0.83
Baking and Snack Food 1.74 0.61 1.89 3.29 1.76
Flavors, Dressings, and Seasonings 1.67 4.40 0.00 0.00 1.86
Beverage 0.95 2.92 0.30 0.51 0.20
Total Food and Beverage 1.25 1.22 1.25 1.70 1.06
Figure L.5: 2016 Regional Job Density (Location Quotient)
Source: EMSI 2017.3 Class of Worker
Labor Analysis
106
To summarize these data, key points are listed below:
• The Muncie Region has the most significant density of jobs in the Food and
Beverage Processing industry subsector. Muncie’s strength comes primarily
from the Fruit and Vegetable industry group with a location quotient of
9.47. This relates to the presence of Red Gold, which has its headquarters
and multiple facilities located throughout the area. Muncie also has very
high job density rates in Dairy, Baking and Snack Food, and Confectionery
groups as well.
• Categories with particularly low-density rates include Animal Food, Meat
and Poultry, Flavors, Dressings, and Seasonings, and Beverage groups.
Conversely, Benton Harbor is the exception to some of these categories
with high location quotients in Flavors, Dressings, and Seasonings and
Beverage groups.
The location quotient highlights the employment density of an area as a
comparison to the national average. Areas with a low employment density may
still have a significant amount of labor employed within the given sector. The
share or percentage employed within a given industry can vary quite a bit from
the density. The figure below illustrates the share of Food and Beverage
employment by industry in the I&M regions.
Labor Analysis
107
Figure L.6 confirms many of the other findings discussed in the other tables in this
section, including the location quotient figures. However, this figure conversely
shows that there is indeed a notable industry presence in the Meat and Poultry
industry group in the I&M territory. This simply means that there is a large amount
of employment within the Meat and Poultry industry group, but this employment
is not on par with the national average. With a strong employment base in Meat
and Poultry, I&M can work towards growing this segment further.
Competitor Evaluation
Austin also examined competitor areas in the U.S. Given the geographic
diversity of the U.S., regions are inherently unique with different advantages and
disadvantages. Regions from the Midwest U.S. were chosen for comparative
purposes since these regions are likely more frequent competitors for food and
beverage processing projects due to the importance of supply chain in site
location decisions for most plants.
Metropolitan statistical area (MSA) data was used for the competitor analysis.
The table below includes an overview of this competitor comparison.
Overall the I&M territory compares well against these competitor regions.
Specifics are described in more detail below.
• Food and Beverage subsector growth is very high in the I&M region but
other areas, such as Dayton, Grand Rapids, and Indianapolis, have also
experienced strong growth.
• The I&M territory has among the lowest average wages in Food and
Beverage among its competitors, only the Detroit metro region is lower.
This highlights a competitive advantage for the region.
Description
Indiana
Michigan
Power
Chicago-
Naperville-
Elgin, IL-IN-
WI
Cincinnati,
OH-KY-IN
Columbus,
OH
Dayton,
OH
Detroit-
Warren-
Dearborn, MI
Grand
Rapids-
Wyoming, MI
Indianapolis-
Carmel-
Anderson, IN
Milwaukee-
Waukesha-
West Allis,
WI
Toledo,
OH
Percent of Job
Change (2006-2016)24% 4% 14% -6% 45% 6% 44% 31% 7% -23%
Average Wage
(2016) $ 43,430 $ 57,847 $ 54,026 $ 65,158 $ 44,135 $ 40,776 $ 49,230 $ 52,213 $ 47,647 $45,160
Job Density (2016) 1.25 1.02 1.25 0.79 0.71 0.46 1.77 0.80 1.18 0.57
Competitiveness
(2015-2016)1907 -2442 850 -1523 835 -188 2961 1695 -162 -850
Figure L.7: I&M Food and Beverage Competition
Source: ESMI 2017.3 Class of Worker
Labor Analysis
108
• I&M region is tied for second with Cincinnati in industry employment
density, behind only Grand Rapids. Half of the other areas have a lower
density than the U.S. (shown in red).
• Competitiveness (2015-2016) for the I&M territory is only second to Grand
Rapids. All other areas rank lower, and half are even negative which
indicate these areas are not keeping up with national and industry trends.
For a further comparison of I&M to its competitor areas, Figure L.8 below
compares some high-level demographic data.
The I&M territory experienced some population growth from 2006 to 2016, but at
a slower rate than about half of the other areas. Total jobs decreased in the
region over this period. The I&M region also has the lowest college attainment
rate among these areas. However, I&M has the lowest cost of living among its
competitors, which can be highlighted as an advantage in conversations with
companies located in areas within the U.S. experiencing sharp increases in the
cost of living.
Employer Input
Austin interviewed area food and beverage companies to gather further insight
into the area labor market for this report. The interviews covered a range of
labor issues including availability, hiring, productivity, skill shortages, wages, and
other concerns. The following summarizes the most critical findings from these
interviews.
• Many employers noted difficulties with workforce recruitment and
retention due to competition from other industries that offer higher wages,
Description
Indiana
Michigan
Power
Chicago-
Naperville-
Elgin, IL-IN-
WI
Cincinnati,
OH-KY-IN
Columbus,
OH
Dayton,
OH
Detroit-
Warren-
Dearborn, MI
Grand
Rapids-
Wyoming, MI
Indianapolis-
Carmel-
Anderson, IN
Milwaukee-
Waukesha-
West Allis,
WI
Toledo,
OH
Total Population
(2016) 2,230,910 9,513,071 2,165,150 2,041,537 800,686 4,297,741 1,047,100 2,004,315 1,572,501 605,222
Population Change
(2006-2016)2% 2% 5% 12% 0% -3% 7% 11% 3% -2%
Total Industry Jobs
(2016) 1,067,417 4,833,671 1,113,271 1,103,282 404,267 2,029,922 588,089 1,078,758 892,780 320,518
Total Industry Jobs
Change (2006-2016)-1% 1% 1% 9% -4% -2% 11% 10% 0% -4%
Cost of Living Index
(2016)94 116 100 102 98 101 97 100 110 98
Bachelor's Degree
or Higher (2016)15% 24% 21% 23% 19% 20% 20% 21% 22% 17%
Figure L.8: I&M Demographics Comparison
Source: ESMI 2017.3 Class of Worker
Labor Analysis
109
most notably the recreational vehicles (RV)and automotive industries. This
issue was noted for both entry level jobs and for skilled positions (e.g.
maintenance).
• Employers also noted issues with competition from similar paying service
jobs, particularly when it comes to younger workers. Many service jobs
offer more flexible scheduling options, less stringent dress code
requirements (no hair nets, aprons, etc.), and a more relaxed working
environment that is attractive to many younger workers.
• Many employers indicated that they have recently raised wages, some
significantly, to address wage competition from other industries.
• Several employers indicated that their inability to add and retain
additional workers was the biggest barrier to growth. In fact, in several
instances employers noted that demand for their products exceeded
their ability to increase production due to labor constraints.
• Employers located closer to a city population center seem to have less
difficulties with workforce recruitment than those located in more rural
areas outside of reasonable driving distance to a city.
• Generally, companies in the industry noted more success in hiring and
retaining immigrant and minority workers (notably Hispanic) for hourly
positions and seasonal work. This mirrors national trends. Many individuals
interviewed expressed concerns over future changes to U.S. and state
immigration policies that would negatively impact the labor supply.
• Plant automation adoption varied widely, with some employers still
depending heavily upon manual labor. These employers generally noted
the most issues with entry level job recruitment and retention.
While some of these issues may cause concern, it’s important to keep this
feedback in perspective. Concerns over labor shortages is becoming a
common occurrence by food and beverage companies across the U.S. Growth
in the industry combined with a job market that has significantly rebounded
over the past few years has exacerbated the issue. Considering that the I&M
territory has seen more significant job growth rates than the U.S., it’s
understandable that many local companies indicated some difficulty is securing
the necessary workers to grow their operations. However, the pressures have not
had an adverse impact on wage competitiveness, in the I&M territory as
previously detailed. Austin recommends that I&M and its partners remain
focused on providing a high level of support to these companies through
business retention and workforce development efforts. In addition, additional
dialog with local area technical schools and community college administrators
to address worker shortages in the food and beverage sectors may result in
Labor Analysis
110
some creative ways to recruit the necessary workforce for future expansion
needs.
During employer interviews for this report, Austin received insightful feedback on
the area labor market that is important and should be useful to I&M and its
economic development partners. Local and regional workforce development
programs can play an important role in addressing skill shortages through
training and other support. Awareness of these issues and preparedness can
also be helpful in attracting other food and beverage companies to locate to
the area.
Water and Wastewater
111
WATER AND WASTEWATER
Water of high quality and volume is critical to food and beverage industries. It is
incorporated directly as a component of food and beverage products and / or
utilized indirectly for processing and cleaning (raw materials and machinery /
equipment). Except for the water incorporated into products or lost through
other means (e.g. steam), much of this water finds its way to the drain as
wastewater, after accumulating heavy concentrations of organic and inorganic
wastes. For these reasons, the availability of excellent water and wastewater
utility services is vital to nearly all food and beverage companies. Thus, the
presence and the costs attributed to these services are key considerations for
strategic location decisions of food and beverage companies.
Austin distributed a water and wastewater survey and information request to
regional and county EDOs to support a high-level review of the water and
wastewater utilities. The surveys targeted 35 communities across 22 counties
within or adjacent to the I&M service territory. Responses to the survey varied
from full completion to partial completion or no response. Feedback from
additional communities were included with EDO responses and have been
incorporated in this review. Among the locations requested, Austin received
partial to full feedback from 25 of 35 communities. The obtained information
was used to identify strengths and weaknesses within the service territory and
beyond, including available capacities and consumption rates.
Communities responding to the water portion of the survey revealed that most
locations are served by groundwater, while only a few utilize available surface
water resources. Water treatment plants in the responding communities have
robust capacity available to new users. Twelve of the 18 responding
communities could more than double their current peak demand, and still
remain below their design capacities. Available capacities range from a
reported 225,000 gallons per day (GPD) in Redkey, IN to over 37 million GPD in
Kalamazoo, MI, with 12 communities reporting over 1 million GPD available
capacity.
Similarly, wastewater treatment plants in responding communities have plenty of
capacity available to new users. Eleven of the 19 responding communities
could more than double their current peak demand, and still remain below their
design capacities. Available capacities range from a reported 246,000 GPD in
Churubusco, IN to over 27 million GPD in Kalamazoo, MI, with 12 communities
reporting at least 1 million GPD available capacity. While most communities
Water and Wastewater
112
reported discharge limits for certain parameters (e.g., biochemical oxygen
demand [BOD], chemical oxygen demand [COD], total suspended solids [TSS],
fats, oils and grease [FOG]), nearly all had the ability to accept high-strength
discharges with additional surcharges.
Rates
Within each location surveyed, charges are variable. Bills often include a base
charge (typically tied to meter size) and commodity charge based on a usage
rate (e.g., per gallons or cubic feet). Rates showed variation within each
community between locations within city limits or outside city limits and by user
type (e.g., residential, commercial, industrial). Some rate schedules showed
changes over time, some phasing municipality-wide rate increases over
consecutive years. Commodity, or flow-based, rates were either flat (single)
rates or tiered rates tied to increasing consumption. Additionally, for
wastewater, the physical and chemical composition of the discharge could
warrant high-strength surcharges, and these additional charges have the
potential to be substantial.
Outside of high-strength surcharge exceptions, the commodity, or flow-based
charges would comprise the largest proportion of water and wastewater bills for
large industrial users. For the purpose of this high-level assessment, Austin’s
approach was to compare these commodity rates to make generalizations
about water and wastewater service in the Indiana Michigan Power service
territory. Austin assumed large industrial water and wastewater users were
located within city limits. For instances of phased rate increases, Austin assumed
rates associated with the first half of the year 2018. When tiered rates were
provided, Austin evaluated the rates of the highest volume tier (i.e., volume in
excess of a specified amount) since most of the total water / wastewater usage
for a large-volume user would typically be billed at this rate. In most cases, the
utility applies the lowest rate to the highest volume tier.
For comparative purposes, the same approach was applied to the 10 largest
municipalities within the states of Indiana and Michigan when rate information
could be obtained readily from city websites. To provide nationwide
perspective, Austin considered information obtained from Water and
Wastewater Annual Price Escalation Rates for Selected Cities across the United
States, reported by the U.S. Department of Energy’s Office of Energy Efficiency &
Renewable Energy (September 2017). This report used a subset of the water
Water and Wastewater
113
and wastewater rate survey data from the American Water Works Association
(AWWA) including data from 60 water utilities and 40 wastewater utilities.
NOTE: The US DOE data used in this report are not inclusive of all AWWA data, but rather a subset compiled from utilities that contributed to at least four of five survey years.
Among responding communities in the I&M territory, water rates ranged from
$0.94 to $6.00 per 1,000 gallons in South Bend, IN and Dunkirk, IN respectively,
with a median rate of $2.08 per 1,000 gallons (Figure WW.1). Throughout the
largest communities in Indiana and Michigan outside I&M territory, water rates
ranged from $1.07 to $4.80 per 1,000 gallons in Lafayette, IN and Warren, MI
respectively, with a median rate of $3.04 per 1,000 gallons. Selected cities
among the AWWA data set representing the United States included water rates
from $1.01 per 1,000 gallons to $7.45 per 1,000 gallons, with a median rate of
$2.80 per 1,000 gallons.
Figure WW.1. Water rates per 1,000 gallons among responding communities within Indiana Michigan Power
territory and representative larger communities within Indiana and Michigan, and selected cities across the
United States. Box and whisker plots represent minimum, 25th percentile, median, 75th percentile, and
maximum values.
Among responding communities in the I&M territory, wastewater rates ranged
from $1.59 to $10.98 per 1,000 gallons in Kalamazoo, MI and LaPorte, IN
respectively, with a median rate of $4.59 per 1,000 gallons (Figure WW.2).
$0
$1
$2
$3
$4
$5
$6
$7
$8
Indiana Michigan
Power Territory
Major Cities in Indiana
and Michigan
United States (AWWA
Data)
Ra
te (
/1,0
00
ga
llon
s)
Lowest rates(25% of data)
Highest rates(25% of data)
Middle rates(50% of data)
Water and Wastewater
114
Throughout the largest communities in Indiana and Michigan outside I&M
territory, wastewater rates ranged from $2.99 to $8.56 per 1,000 gallons in
Livonia, MI and Evansville, IN respectively, with a median rate of $5.66 per 1,000
gallons. Selected cities among the AWWA data set representing the United
States included wastewater rates from $1.46 per 1,000 gallons to $17.29 per 1,000
gallons, with a median rate of $3.79 per 1,000 gallons.
Figure WW.2. Wastewater rates per 1,000 gallons among responding communities within Indiana Michigan
Power territory and representative larger communities within Indiana and Michigan, and selected cities
across the United States. Box and whisker plots represent minimum, 25th percentile, median, 75th percentile,
and maximum values.
Although firm conclusions cannot be made based on the limited data set and
simplified approach, some general trends can be observed based on
commodity charges for large volume users. Water and wastewater rates in the
Indiana Michigan service territory compare somewhat favorably to other larger
cities in Indiana and Michigan outside the territory. Compared to the nation,
water rates in the territory trend lower, but wastewater rates trend higher. Within
the territory, water rates tend to be lower in Indiana, but wastewater rates trend
lower in Michigan. Combined, large water users with high-volume wastewater
discharges may favor Michigan over Indiana for locations within the I&M territory
(Figure 3).
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
Indiana Michigan
Power Territory
Major Cities in Indiana
and Michigan
United States - AWWA
Data
Ra
te (
/1,0
00
ga
llon
s)
Highest rates (25% of data)
Middle rates (50% of data)
Lowest rates (25% of data)
Water and Wastewater
115
Figure 3. Water and wastewater rates per 1,000 gallons for high volume users among responding communities within the Indiana Michigan Power service territory. Rates presented include flat and tiered rates. When tiered, the rate presented is the highest volume tier.
Dunkirk, INGas City, INMarion, IN
Muncie, IN
Portland, IN
Redkey, IN
Elkhart, INLaPorte, IN
South Bend, IN
Butler, IN
Decatur, IN
Fort Wayne, IN
Kendallville, IN
Dowagiac, MI
Kalamazoo, MI
Paw Paw, MI
Portage, MI
Three Rivers, MI
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
$0 $1 $2 $3 $4 $5 $6 $7
Wa
ste
wa
ter
Ra
tes
(/1
,00
0 g
allo
ns)
Water Rates (/1,000 gallons)
East Central Indiana North Central Indiana Northeast Indiana Southwest Michigan
Appendices
116
APPENDICES
Appendix A: North American Industry Classification System Codes
The NAICS code definitions in this appendix provide detailed information on
product inclusions for each industry category. This information is meant to be
used as a quick reference for readers looking to learn more about the types of
products included in specific industry categories. These definitions were taken
directly from the U.S. Census Bureau website. Further information and illustrative
examples of products can be viewed directly on the NIACS portion of the U.S.
Census Bureau’s website.
311111 Dog and Cat Food Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
dog and cat food from ingredients, such as grains, oilseed mill products, and
meat products.
311119 Other Animal Food Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
animal food (except dog and cat) from ingredients, such as grains, oilseed mill
products, and meat products.
311211 Flour Milling
This U.S. industry comprises establishments primarily engaged in (1) milling flour or
meal from grains (except rice) or vegetables and/or (2) milling flour and
preparing flour mixes or doughs.
311212 Rice Milling
This U.S. industry comprises establishments primarily engaged in one of the
following: (1) milling rice; (2) cleaning and polishing rice; or (3) milling, cleaning,
and polishing rice. The establishments in this industry may package the rice they
mill with other ingredients.
311213 Malt Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
malt from barley, rye, or other grains.
311221 Wet Corn Milling
This U.S. industry comprises establishments primarily engaged in wet milling corn
and other vegetables (except to make ethyl alcohol). Examples of products
Appendices
117
made in these establishments are corn sweeteners, such as glucose, dextrose,
and fructose; corn oil; and starches (except laundry).
311224 Soybean and Other Oilseed Processing
This U.S. industry comprises establishments primarily engaged in crushing oilseeds
and tree nuts, such as soybeans, cottonseeds, linseeds, peanuts, and sunflower
seeds. Examples of products produced in these establishments are oilseed oils,
cakes, meals, and protein isolates and concentrates.
311225 Fats and Oils Refining and Blending
This U.S. industry comprises establishments primarily engaged in one or more of
the following: (1) manufacturing shortening and margarine from purchased fats
and oils; (2) refining and/or blending vegetable, oilseed, and tree nut oils from
purchased oils; and (3) blending purchased animal fats with purchased
vegetable fats.
311230 Breakfast Cereal Manufacturing
This industry comprises establishments primarily engaged in manufacturing
breakfast cereal foods.
311313 Beet Sugar Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
refined beet sugar from sugar beets.
311314 Cane Sugar Manufacturing
This U.S. industry comprises establishments primarily engaged in (1) processing
sugarcane and/or (2) refining cane sugar from raw cane sugar.
311340 Nonchocolate Confectionery Manufacturing
This industry comprises establishments primarily engaged in manufacturing
nonchocolate confectioneries. Included in this industry are establishments
primarily engaged in retailing nonchocolate confectionery products not for
immediate consumption made on the premises.
311351 Chocolate and Confectionery Manufacturing from Cacao Beans
This U.S. industry comprises establishments primarily engaged in shelling, roasting,
and grinding cacao beans and making chocolate cacao products and
chocolate confectioneries.
Appendices
118
311352 Confectionery Manufacturing from Purchased Chocolate
This U.S. industry comprises establishments primarily engaged in manufacturing
chocolate confectioneries from chocolate produced elsewhere. Included in this
industry are establishments primarily engaged in retailing chocolate
confectionery products not for immediate consumption made on the premises
from chocolate made elsewhere.
311411 Frozen Fruit, Juice, and Vegetable Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
frozen fruits; frozen vegetables; and frozen fruit juices, ades, drinks, cocktail mixes
and concentrates.
311412 Frozen Specialty Food Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
frozen specialty foods (except seafood), such as frozen dinners, entrees, and
side dishes; frozen pizza; frozen whipped topping; and frozen waffles, pancakes,
and french toast.
311421 Fruit and Vegetable Canning
This U.S. industry comprises establishments primarily engaged in manufacturing
canned, pickled, and brined fruits and vegetables. Examples of products made
in these establishments are canned juices; canned jams and jellies; canned
tomato-based sauces, such as catsup, salsa, chili sauce, spaghetti sauce,
barbeque sauce, and tomato paste; and pickles, relishes, and sauerkraut.
311422 Specialty Canning
This U.S. industry comprises establishments primarily engaged in manufacturing
canned specialty foods. Examples of products made in these establishments are
canned baby food, canned baked beans, canned soups (except seafood),
canned spaghetti, and other canned nationality foods.
311423 Dried and Dehydrated Food Manufacturing
This U.S. industry comprises establishments primarily engaged in (1) drying
(including freeze-dried) and/or dehydrating fruits, vegetables, and soup mixes
and bouillon and/or (2) drying and/or dehydrating ingredients and packaging
them with other purchased ingredients, such as rice and dry pasta.
311511 Fluid Milk Manufacturing
This U.S. industry comprises establishments primarily engaged in (1)
manufacturing processed milk products, such as pasteurized milk or cream and
Appendices
119
sour cream and/or (2) manufacturing fluid milk dairy substitutes from soybeans
and other nondairy substances.
311512 Creamery Butter Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
creamery butter from milk and/or processed milk products.
311513 Cheese Manufacturing
This U.S. industry comprises establishments primarily engaged in (1)
manufacturing cheese products (except cottage cheese) from raw milk and/or
processed milk products and/or (2) manufacturing cheese substitutes from
soybean and other nondairy substances.
311514 Dry, Condensed, and Evaporated Dairy Product Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
dry, condensed, and evaporated milk and dairy substitute products.
311520 Ice Cream and Frozen Dessert Manufacturing
This industry comprises establishments primarily engaged in manufacturing ice
cream, frozen yogurts, frozen ices, sherbets, frozen tofu, and other frozen
desserts (except bakery products).
311611 Animal (except Poultry) Slaughtering
This U.S. industry comprises establishments primarily engaged in slaughtering
animals (except poultry and small game). Establishments that slaughter and
prepare meats are included in this industry.
311612 Meat Processed from Carcasses
This U.S. industry comprises establishments primarily engaged in processing or
preserving meat and meat byproducts (except poultry and small game) from
purchased meats. This industry includes establishments primarily engaged in
assembly cutting and packing of meats (i.e., boxed meats) from purchased
meats.
311613 Rendering and Meat Byproduct Processing
This U.S. industry comprises establishments primarily engaged in rendering animal
fat, bones, and meat scraps.
Appendices
120
311615 Poultry Processing
This U.S. industry comprises establishments primarily engaged in (1) slaughtering
poultry and small game and/or (2) preparing processed poultry and small game
meat and meat byproducts.
311710 Seafood Product Preparation and Packaging
This industry comprises establishments primarily engaged in one or more of the
following: (1) canning seafood (including soup); (2) smoking, salting, and drying
seafood; (3) eviscerating fresh fish by removing heads, fins, scales, bones, and
entrails; (4) shucking and packing fresh shellfish; (5) processing marine fats and
oils; and (6) freezing seafood. Establishments known as "floating factory ships"
that are engaged in the gathering and processing of seafood into canned
seafood products are included in this industry.
311811 Retail Bakeries
This U.S. industry comprises establishments primarily engaged in retailing bread
and other bakery products not for immediate consumption made on the
premises from flour, not from prepared dough.
311812 Commercial Bakeries
This U.S. industry comprises establishments primarily engaged in manufacturing
fresh and frozen bread and bread-type rolls and other fresh bakery (except
cookies and crackers) products.
311813 Frozen Cakes, Pies, and Other Pastries Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
frozen bakery products (except bread), such as cakes, pies, and doughnuts.
311821 Cookie and Cracker Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
cookies, crackers, and other products, such as ice cream cones.
311824 Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour
This U.S. industry comprises establishments primarily engaged in (1)
manufacturing dry pasta and/or (2) manufacturing prepared flour mixes or
dough from flour ground elsewhere. The establishments in this industry may
package the dry pasta they manufacture with other ingredients.
311830 Tortilla Manufacturing
This industry comprises establishments primarily engaged in manufacturing
tortillas.
Appendices
121
311911 Roasted Nuts and Peanut Butter Manufacturing
This U.S. industry comprises establishments primarily engaged in one or more of
the following: (1) salting, roasting, drying, cooking, or canning nuts; (2)
processing grains or seeds into snacks; and (3) manufacturing peanut butter.
311919 Other Snack Food Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
snack foods (except roasted nuts and peanut butter).
311920 Coffee and Tea Manufacturing
This industry comprises establishments primarily engaged in one or more of the
following: (1) roasting coffee; (2) manufacturing coffee and tea concentrates
(including instant and freeze-dried); (3) blending tea; (4) manufacturing herbal
tea; and (5) manufacturing coffee extracts, flavorings, and syrups.
311930 Flavoring Syrup and Concentrate Manufacturing
This industry comprises establishments primarily engaged in manufacturing
flavoring syrup drink concentrates and related products for soda fountain use or
for the manufacture of soft drinks.
311941 Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
mayonnaise, salad dressing, vinegar, mustard, horseradish, soy sauce, tarter
sauce, Worcestershire sauce, and other prepared sauces (except tomato-
based and gravy).
311942 Spice and Extract Manufacturing
This U.S. industry comprises establishments primarily engaged in (1)
manufacturing spices, table salt, seasonings, flavoring extracts (except coffee
and meat), and natural food colorings and/or (2) manufacturing dry mix food
preparations, such as salad dressing mixes, gravy and sauce mixes, frosting
mixes, and other dry mix preparations.
311991 Perishable Prepared Food Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
perishable prepared foods, such as salads, sandwiches, prepared meals, fresh
pizza, fresh pasta, and peeled or cut vegetables.
Appendices
122
311999 All Other Miscellaneous Food Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
food (except animal food; grain and oilseed milling; sugar and confectionery
products; preserved fruits, vegetables, and specialties; dairy products; meat
products; seafood products; bakeries and tortillas; snack foods; coffee and tea;
flavoring syrups and concentrates; seasonings and dressings; and perishable
prepared food). Included in this industry are establishments primarily engaged in
mixing purchased dried and/or dehydrated ingredients including those mixing
purchased dried and/or dehydrated ingredients for soup mixes and bouillon.
312111 Soft Drink Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
soft drinks and artificially carbonated waters.
312112 Bottled Water Manufacturing
This U.S. industry comprises establishments primarily engaged in purifying and
bottling water (including naturally carbonated).
312113 Ice Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
ice.
312120 Breweries
This industry comprises establishments primarily engaged in brewing beer, ale,
lager, malt liquors, and nonalcoholic beer.
312130 Wineries
This industry comprises establishments primarily engaged in one or more of the
following: (1) growing grapes and manufacturing wines and brandies; (2)
manufacturing wines and brandies from grapes and other fruits grown
elsewhere; and (3) blending wines and brandies.
312140 Distilleries
This industry comprises establishments primarily engaged in one or more of the
following: (1) distilling potable liquors (except brandies); (2) distilling and
blending liquors; and (3) blending and mixing liquors and other ingredients.
322211 Corrugated and Solid Fiber Box Manufacturing
This U.S. industry comprises establishments primarily engaged in laminating
purchased paper or paperboard into corrugated or solid fiber boxes and
related products, such as pads, partitions, pallets, and corrugated paper
Appendices
123
without manufacturing paperboard. These boxes are generally used for
shipping.
322212 Folding Paperboard Box Manufacturing
This U.S. industry comprises establishments primarily engaged in converting
paperboard (except corrugated) into folding paperboard boxes without
manufacturing paper and paperboard.
322219 Other Paperboard Container Manufacturing
This U.S. industry comprises establishments primarily engaged in converting
paperboard into paperboard containers (except corrugated, solid fiber, and
folding paperboard boxes) without manufacturing paperboard.
322220 Paper Bag and Coated and Treated Paper Manufacturing
This industry comprises establishments primarily engaged in one or more of the
following: (1) cutting and coating paper and paperboard; (2) cutting and
laminating paper, paperboard, and other flexible materials (except plastics film
to plastics film); (3) manufacturing bags, multiwall bags, sacks of paper, metal
foil, coated paper, laminates, or coated combinations of paper and foil with
plastics film; (4) manufacturing laminated aluminum and other converted metal
foils from purchased foils; and (5) surface coating paper or paperboard.
326111 Plastics Bag and Pouch Manufacturing
This U.S. industry comprises establishments primarily engaged in (1) converting
plastics resins into plastics bags or pouches and/or (2) forming, coating, or
laminating plastics film or sheet into single-web or multiweb plastics bags or
pouches. Establishments in this industry may print on the bags or pouches they
manufacture.
326112 Plastics Packaging Film and Sheet (including Laminated) Manufacturing
This U.S. industry comprises establishments primarily engaged in converting
plastics resins into plastics packaging (flexible) film and packaging sheet.
326130 Laminated Plastics Plate, Sheet (except Packaging), and Shape
Manufacturing
This industry comprises establishments primarily engaged in laminating plastics
profile shapes such as plate, sheet (except packaging), and rod. The lamination
process generally involves bonding or impregnating profiles with plastics resins
and compressing them under heat.
Appendices
124
326140 Polystyrene Foam Product Manufacturing
This industry comprises establishments primarily engaged in manufacturing
polystyrene foam products.
326150 Urethane and Other Foam Product (except Polystyrene) Manufacturing
This industry comprises establishments primarily engaged in manufacturing
plastics foam products (except polystyrene).
326160 Plastics Bottle Manufacturing
This industry comprises establishments primarily engaged in manufacturing
plastics bottles.
326199 All Other Plastics Product Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
plastics products (except film, sheet, bags, profile shapes, pipes, pipe fittings,
laminates, foam products, bottles, and plumbing fixtures).
327212 Other Pressed and Blown Glass and Glassware Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
glass by melting silica sand or cullet and making pressed, blown, or shaped glass
or glassware (except glass packaging containers).
327213 Glass Container Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
glass packaging containers.
327215 Glass Product Manufacturing Made of Purchased Glass
This U.S. industry comprises establishments primarily engaged in coating,
laminating, tempering, or shaping purchased glass.
332431 Metal Can Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
metal cans, lids, and ends.
332439 Other Metal Container Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
metal (light gauge) containers (except cans).
333241 Food Product Machinery Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
food and beverage manufacturing-type machinery and equipment, such as
Appendices
125
dairy product plant machinery and equipment (e.g., homogenizers,
pasteurizers, ice cream freezers), bakery machinery and equipment (e.g.,
dough mixers, bake ovens, pastry rolling machines), meat and poultry
processing and preparation machinery, and other commercial food products
machinery (e.g., slicers, choppers, and mixers).
333993 Packaging Machinery Manufacturing
This U.S. industry comprises establishments primarily engaged in manufacturing
packaging machinery, such as wrapping, bottling, canning, and labeling
machinery.
493110 General Warehousing and Storage
This industry comprises establishments primarily engaged in operating
merchandise warehousing and storage facilities. These establishments generally
handle goods in containers, such as boxes, barrels, and/or drums, using
equipment, such as forklifts, pallets, and racks. They are not specialized in
handling bulk products of any particular type, size, or quantity of goods or
products.
493120 Refrigerated Warehousing and Storage
This industry comprises establishments primarily engaged in operating
refrigerated warehousing and storage facilities. Establishments primarily
engaged in the storage of furs for the trade are included in this industry. The
services provided by these establishments include blast freezing, tempering, and
modified atmosphere storage services.
493190 Other Warehousing and Storage
This industry comprises establishments primarily engaged in operating
warehousing and storage facilities (except general merchandise, refrigerated,
and farm product warehousing and storage).
Appendices
126
Appendix B: EMSI Developer
Input-Output Data
The input-output model is EMSI's gravitational flows multi-regional social account
matrix model (MR-SAM). It is based on data from the Census Bureau's Current
Population Survey and American Community Survey; as well as the Bureau of
Economic Analysis' National Income and Product Accounts, Input-Output Make
and Use Tables, and Gross State Product data. In addition, several EMSI in-house
data sets are used, as well as data from Oak Ridge National Labs on the cost of
transportation between counties.
Cost of Living Data
EMSI cost of living data is based on the Cost of Living Index published quarterly
by the Council for Community and Economic Research (C2ER).
Industry Data
EMSI industry data have various sources depending on the class of worker. (1)
For QCEW Employees, EMSI primarily uses the QCEW (Quarterly Census of
Employment and Wages), with supplemental estimates from County Business
Patterns. (2) Non-QCEW employees data are based on a number of sources
including QCEW, Current Employment Statistics, County Business Patterns, BEA
State and Local Personal Income reports, the National Industry-Occupation
Employment Matrix (NIOEM), the American Community Survey, and Railroad
Retirement Board statistics. (3) Self-Employed and Extended Proprietor classes of
worker data are primarily based on the American Community Survey,
Nonemployer Statistics, and BEA State and Local Personal Income Reports.
Projections for QCEW and Non-QCEW Employees are informed by NIOEM and
long-term industry projections published by individual states.
State Data
EMSI uses state data from the following agencies: Indiana Department of
Workforce Development; Michigan Department of Labor and Economic
Growth, Bureau of Labor Market Information and Strategic Initiatives
EMSI U.S. Data Sources
• U.S. Department of Commerce
o Bureau of Economic Analysis
▪ State Personal Income and Employment (SPI)
▪ Local Area Personal Income and Employment (LPI)
▪ National Income and Product Accounts (NIPA)
Appendices
127
▪ Annual Input-Output (I-O) Accounts
▪ Benchmark Input-Output (I-O) Accounts
▪ GDP by State
o U.S. Census Bureau
▪ American Community Survey (ACS)
▪ County Business Patterns (CBP)
▪ ZIP Code Business Patterns (ZBP)
▪ Nonemployer Statistics (NES)
▪ Quarterly Workforce Indicators (QWI)
▪ OnTheMap (OTM)
▪ TIGER/Line File (with additions by DM Solutions Group)
▪ Population Estimates
▪ U.S. National and State Population Projections
▪ Census 2000 & 2010 Summary Files
▪ Census of Government — State and Local
▪ Government Finances by State
▪ Journey-to-Work (JtW)
▪ Consumer Expenditures Survey (CEX)
▪ Current Population Survey (CPS)
▪ Commodity Flow Survey (CFS)
• U.S. Department of Health and Human Services
o National Center for Health Statistics
▪ Health, United States
• U.S. Railroad Retirement Board
o Annual Railroad Retirement Act and Railroad Unemployment
Insurance Act Statistical Tables
• Oak Ridge National Laboratory
o County-to-County Distance Matrix (Skim Tree)
• U.S. Department of Labor
o Bureau of Labor Statistics
▪ Quarterly Census of Employment and Wages (QCEW)
▪ Current Employment Statistics (CES)
▪ Current Population Survey (CPS)
▪ Local Area Unemployment Statistics (LAUS)
▪ National Industry-Occupation Employment Matrix (10-year,
current/projected)
▪ Occupational Employment Statistics (OES)
Appendices
128
▪ Occupational Education and Training Projections
o Employment and Training Administration (ETA)
▪ Characteristics of the Insured Unemployed
▪ National O*NET Consortium, O*NET Production Database
o Wage and Hour Division
▪ Minimum Wage Laws in the States
• U.S. Department of Education
o National Center for Education Statistics
o Integrated Postsecondary Education Data System (IPEDS)
o Classification of Instructional Programs
o Common Core of Data
• U.S. Postal Service
o USPS Delivery Statistics
o USPS City State Product
• Private Sources
o DatabaseUSA
Appendices
129
Appendix C: I&M Major Food and Beverage Companies
I&M Region Company List
Company Industry HQ City State
Alpha Baking Co., Inc. Baking and Snack N La Porte IN
American Licorice Company Confectionery Y La Porte IN
Bell's Brewery Beverages Y Galesburg MI
Bimbo Bakeries Baking and Snack N Elkhart IN
Burnette Foods Fruit and Vegetable
Processing N Hartford MI
Café Valley Bakery Baking and Snack N Marion IN
Clemens Food Group Meat and Poultry N Coldwater MI
Coca-Cola Consolidated Beverages N Portland IN
Coloma Frozen Foods Fruit and Vegetable
Processing Y Coloma MI
Culver Duck Meat and Poultry N Middlebury IN
Dairy Farmers of America Dairy N Goshen IN
Dean Foods (Land-O-Sun Dairies) Dairy N Decatur IN
Dean Foods (Schenkel's Dairy) Dairy N Huntington IN
Dole (Dole Packaged Foods) Fruit and Vegetable
Processing N Decatur MI
Echo Lake Foods Meat and Poultry N Huntington IN
Eden Foods (Meridian Foods) Fruit and Vegetable
Processing N Eaton IN
Ellison Bakery Baking and Snack Y Fort Wayne IN
Appendices
130
Company Industry HQ City State
Flamm Pickle and Packing Co. Fruit and Vegetable
Processing y Eau Claire MI
Freestone Pickle Company, Inc. Fruit and Vegetable
Processing Y Bangor MI
Hearthside Food Solutions Baking and Snack N Michigan
City IN
Holsum (Lewis Brothers Bakeries) Baking and Snack N Fort Wayne IN
Holsum (Lewis Brothers Bakeries) Baking and Snack N La Porte IN
HRR Enterprises, Inc. Meat and Poultry Y La Porte IN
International Bakers Services, Inc. Flavorings, Dressings and
Seasonings Y South Bend IN
Inventure Foods, Inc. Baking and Snack N Bluffton IN
Kalsec Inc. Flavorings, Dressings and
Seasonings Y Kalamazoo MI
Knouse Foods Fruit and Vegetable
Processing N Paw Paw MI
McCormick & Company, Inc. Flavorings, Dressings and
Seasonings N South Bend IN
Michigan Milk Producers
Association Dairy N Constantine MI
Michigan Milk Producers
Association (Heritage Ridge
Creamery)
Dairy N Middlebury IN
Miller Poultry Meat and Poultry Y Orland IN
Monogram Food Solutions Meat and Poultry N Bristol IN
National Flavors Flavorings, Dressings and
Seasonings Y Kalamazoo MI
Nestlé USA Beverages N Anderson IN
Nestlé USA (Edy's) Dairy N Fort Wayne IN
Appendices
131
Company Industry HQ City State
New Horizons Baking Co. Baking and Snack N Fremont IN
Olde York Potato Chips (Saratoga
Potato Chips) Baking and Snack N Fort Wayne IN
Packer Canning Company, Inc.
(Honee Bear Canning Co.)
Fruit and Vegetable
Processing Y Lawton MI
Perfection Bakeries, Inc. (Aunt
Millie's) Baking and Snack
N (Fort
Wayne) Kalamazoo MI
Pero Family Farms Fruit and Vegetable
Processing N
Benton
Harbor MI
Plumrose USA Meat and Poultry N Elkhart IN
Prairie Farms Dairy Dairy N Fort Wayne IN
Prairie Farms Dairy (East Side
Jersey Dairy) Dairy N Anderson IN
Pretzels, Inc Baking and Snack Y Bluffton IN
Pretzels, Inc Baking and Snack N
(Bluffton) Plymouth IN
Red Gold, Inc. Fruit and Vegetable
Processing Y Elwood IN
Red Gold, Inc. Fruit and Vegetable
Processing N Elwood IN
Red Gold, Inc. Fruit and Vegetable
Processing N Geneva IN
Red Gold, Inc. Fruit and Vegetable
Processing N Orestes IN
Reny Picot (Old Europe Cheese) Dairy N Benton
Harbor MI
Sechler's Pickles Fruit and Vegetable
Processing Y Saint Joe IN
The Coca-Cola Company (Minute
Maid)
Fruit and Vegetable
Processing N Paw Paw MI
The Kraft Heinz Company Confectionery N Kendallville IN
Tyson Foods Baking and Snack N Portland IN
Appendices
132
Company Industry HQ City State
Walmart (Under Construction) Dairy N Fort Wayne IN
Weaver Popcorn Baking and Snack Y Van Buren IN
Welch's Fruit and Vegetable
Processing N Lawton MI
WellPet LLC Pet Food N Mishawaka IN
Wicks Pies Inc. Baking and Snack Y Winchester IN
Wild Flavors and Speciality
Ingredients (A.M. Todd)
Flavorings, Dressings and
Seasonings N Kalamazoo MI
Zentis North America LLC Fruit and Vegetable
Processing N Plymouth IN
Appendices
133
Appendix D: Nearby Grain and Oilseed Milling and Refining Operations
Grain and Oilseed Milling & Refining Operations near the I&M Region
Company Industry City State
ADM Wheat (Flour) Milling Chicago IL
ADM Wheat (Flour) Milling Indianapolis IN
ADM Wheat (Flour) Milling Mt Vernon IN
ADM Wheat (Flour) Milling Beech
Grove IN
Ardent Mills Wheat (Flour) Milling Columbus OH
Ardent Mills Wheat (Flour) Milling Loudonville OH
Ardent Mills Wheat (Flour) Milling Alton IL
Ardent Mills Wheat (Flour) Milling Chester IL
Grain Craft Wheat (Flour) Milling Cleveland OH
Keynes Bros Inc Wheat (Flour) Milling Logan OH
King Milling Company Wheat (Flour) Milling Lowell MI
Knappen Milling Company Wheat (Flour) Milling Augusta MI
Prairie Mills Wheat (Flour) Milling Rochester IN
Siemer Milling Company Wheat (Flour) Milling West
Harrison IN
Siemer Milling Company Wheat (Flour) Milling Teutopolis IL
Star of The West Milling Co. Wheat (Flour) Milling Frankenmuth MI
Star of The West Milling Co. Wheat (Flour) Milling Quincy MI
Star of The West Milling Co. Wheat (Flour) Milling Willard OH
Star of The West Milling Co. Wheat (Flour) Milling Ligonier IN
The Mennel Milling Co. Wheat (Flour) Milling Dowagiac MI
The Mennel Milling Co. Wheat (Flour) Milling Fostoria OH
The Mennel Milling Co. Wheat (Flour) Milling Bucyrus OH
The Mennel Milling Co. Wheat (Flour) Milling Mt Olive IL
ADM Oilseed processing /
refinery Quincy IL
ADM Oilseed processing /
refinery Decatur IL
ADM Oilseed processing /
refinery Frankfort IN
Bunge North America Oilseed processing /
refinery Decatur IN
Bunge North America Oilseed processing /
refinery Morristown IN
Appendices
134
Company Industry City State
Bunge North America Oilseed processing /
refinery Bellevue OH
Cargill Oilseed processing /
refinery Sidney OH
Incobrasa Oilseed processing /
refinery Gilman IL
Zeeland Farm Soya Oilseed processing /
refinery Zeeland MI
ADM Corn Mill (Wet) Decatur IL
ADM Corn Mill (Dry) Peoria IL
Agricor Inc Corn Mill (Dry) Marion IN
AZTECA MILLING LP Corn Mill (Dry) Evansville IN
Bunge Corn Mill (Dry) Worthington IN
Bunge Milling, Inc.. Corn Mill (Dry) Danville IL
Bunge Milling, Inc.. (former J.R. Short
Milling) Corn Mill (Dry) Bradley IL
Cargill Corn Mill (Wet) Dayton OH
Cargill Corn Mill (Dry) Paris IL
Cargill Corn Mill (Dry) Indianapolis IN
Cargill Corn Mill (Wet) Hammond IN
GRAIN PROCESSING CORP Corn Mill (Wet) Washington IN
Ingredion Corn Mill (Wet) Mapleton IL
Ingredion Corn Mill (Wet) Bedford Park IL
Ingredion Corn Mill (Wet) Indianapolis IN
Tate & Lyle Corn Mill (Wet) Decatur IL
Tate & Lyle Ingredients Americas LLC Corn Mill (Wet) Lafayette IN
Tate & Lyle Ingredients Americas LLC Corn Mill (Wet) Lafayette IN
Prairie Mills Corn Mill (Dry) Rochester IN
Appendices
135
Appendix E: Microclimates
The narrow coastal area along the eastern shore of Lake Michigan has long
been heralded as Michigan’s Fruit Belt due to its unique ability to cultivate fruit.
This area benefits from a microclimate largely attributed to its location on the
leeward coast of Lake Michigan. With consistent lake breezes, the Lake acts as
a heat source during the times when the larger region begins to cool and as a
heat sink when the surrounding area begins to heat up. These effects help to
moderate temperature extremes that may be experienced beyond the roughly
30-mile width, as impact decreases further from the lake. Air is cooled by a cold
lake in spring which delays fruit bud development and reduces potential
impacts by frost. Spikes in summer air temperature are moderated by the slowly
warming lake. As fall arrives and temperatures begin to drop with the potential
for early frost, the warm lake extends the growing and harvest season with
warmer air temperatures.
Increasing seasonal temperatures have been observed in this region over the
past decade — attributed to climate change — and with these changes, an
evolving fruit landscape is expected as new varieties become viable.
Appendices
136
Appendix F: Soils
A close relationship exists between the physical / chemical properties of soil and
plant growth. Among physical characteristics, the most important for
determining productivity include soil texture, density, aggregation, drainage
and infiltration rates, slope and the degree of erosion. Based on the
understanding that geography, soils, and climate largely influence vegetation,
the USDA’s Natural Resources Conservation Services (NRCS) produced
Agricultural Handbook 296. This document divided the United States into Land
Resource Regions (LRRs) that share similar climate, soils, and land use activities
and further subdivides these regions into Major Land Resource Areas (MLRAs).
The Indiana Michigan Power service territory is located within two LRRs and
predominately includes four MLRAs:
• (L) Lake States Fruit, Truck Crop, and Dairy Region
o 97 – Southwestern Michigan Fruit and Truck Crop Belt
o 98 – Southern Michigan and Northern Indiana Drift Plain
• (M) Central Feed Grains and Livestock Region
o 111A – Indiana and Ohio Till Plain, Central Part
o 111B – Indiana and Ohio Till Plain, Northeastern Part
Other MLRAs also reach into small portions of the territory (99 – Erie-Huron Lake
Plain, 110 – Northern Illinois and Indiana Heavy Till Plain, 111C – Indiana and Ohio
Till Plain, Northwestern Part, and 111D – Indiana and Ohio Till Plain, Western Part).
The map below further describes MLRA’s.
Appendices
137
USDA classifies soils to reflect primary Soil Forming Factors. Much of the soils
within the service territory is dominated by the soil orders Alfisols and to a lesser
extent, Mollisols.
• Alfisols are formed under forest vegetation and found extensively in the
Mississippi and Ohio River valleys. They are generally very fertile (less so
than Mollisols) with high concentrations of nutrients and the ability to hold
and supply moisture due to accumulated clay in the subsoil. Suborders in
the area include Aqualfs (found with water table at or near the surface)
and Udalfs (found in humid climates).
• Mollisols are mineral soils developed under grassland vegetation and are
the dominant soil of the Great Plains region. They are considered very
fertile, consisting of rich organic topsoil and saturated with essential
Appendices
138
nutrients. The suborder in the area is Aquolls (found with water table at or
near the surface).
Soils in the Lake States Fruit, Truck Crop, and Dairy Region include added
variability with soil orders, Entisols and Histosols.
• Entisols often occur where soil deposition or erosion rates outpace soil
development. The soils are variable in productivity. Here, the suborder
Psamments is prevalent, noted for being dry and sandy.
• Histosols are often produced in wetlands in saturated and aerobic
conditions, and as such they are high in organic content. Here, the
suborder Saprists is prevalent, which consists of highly decomposed
organic materials, often called muck.
Soils throughout the service territory are very deep. Along Lake Michigan (MLRA
97), soils are excessively drained to very poorly drained. Further from Lake
Michigan (MLRA 98), soil drainage varies more from well drained to very poorly
drained. Within the Central Feed Grains and Livestock Region (MLRAs 111A and
111B), soils are very poorly drained to somewhat poorly drained, and described
as loamy and clayey.
Appendices
139
Appendix G: Rail Lines and Intermodal Stations
Appendices
140
Appendix H: Ports and Interstates
Appendices
141
Appendix I: Education Institutions and Programs
Universities and colleges within the counties serviced by Indiana Michigan Power
offer numerous opportunities for students pursuing careers in the value-added
agriculture and food processing industries. Associate, Bachelor, and Graduate-
level degrees are available at many institutions within and around the service
territory. These institutions act as educational assets by producing a highly-
educated labor pool prepared for jobs focused on agriculture, animal science,
botany, dietetics, farming, food sciences, horticulture, and nutrition. Beyond the
schools within the territory, many companies indicated direct major recruitment
efforts towards food science graduates of Michigan State University, Purdue
University, and The Ohio State University.
Relevant programs are presented below:
Ancilla College – Donaldson, Indiana
Associate Degree Programs:
• Agriculture: Crop Science
• Agriculture: Animal Science
Andrews University – Berrien Springs, Michigan
Associate Degree Programs:
• Agriculture, Crop Production Emphasis
• Agriculture, Dairy Herd Management Emphasis
Bachelor Degree Programs:
• Agriculture
• Agriculture, Agribusiness Emphasis
• Agriculture, Animal Husbandry Emphasis
• Agriculture, Crop Production Emphasis
• Animal Science, Management Emphasis
• Animal Science, Pre-Veterinary Medicine Emphasis
• Horticulture, Horticultural Crop Production Emphasis
• Nutrition Science & Dietetics
Pre-Professional Program
• Pre-Professional Program in Veterinary Medicine
Certification
• Graduate Certificate in Nutrition & Dietetics (Dietetic Internship)
Ball State University – Muncie, Indiana
Bachelor Degree Programs:
• Nutrition and Dietetics
Appendices
142
Huntington University – Huntington, Indiana
Bachelor Degree Programs:
• Agricultural Studies
International Business College – Fort Wayne, Indiana
Associate Degree Programs:
• Veterinary Technology
Ivy Tech Community College of Indiana – Various Locations, Indiana
Associate Degree Programs:
• Agriculture
Kalamazoo Valley Community College – Kalamazoo, Michigan
Associate Degree Programs:
• Culinary Arts & Sustainable Food Systems
Manchester University – North Manchester, Indiana
Bachelor Degree Programs:
• Pre-Veterinary (Biology-Chemistry)
Southwestern Michigan College – Dowagiac, Michigan
Associate Degree Programs:
• Agricultural Technology
University of Saint Francis – Fort Wayne, Indiana
Bachelor Degree Programs:
• Nutrition
• Pre-Veterinary
Western Michigan University – Kalamazoo, Michigan
Bachelor Degree Programs:
• Dietetics
Michigan State University* – East Lansing, Michigan
Bachelor Degree Programs:
• Agribusiness Management
• Agriculture and Natural Resources
• Agriculture, Food and Natural Resources Education
• Animal Science
• Crop and Soil Sciences
• Dietetics
Appendices
143
• Environmental Biology/Plant Biology
• Fisheries and Wildlife
• Food Industry Management
• Food Science
• Horticulture
• Plant Biology
• Preveterinary
Master Degree Programs:
• Agricultural, Food and Resource Economics
• Animal Science
• Crop and Soil Sciences
• Fisheries and Wildlife
• Food Safety (Online Program)
• Food Science
• Horticulture
• Plant Biology
• Plant Breeding, Genetics and Biotechnology - Crop and Soil
Sciences
• Plant Breeding, Genetics and Biotechnology-Horticulture
• Plant Breeding, Genetics and Biotechnology-Plant Biology
• Plant Pathology
Doctoral Degree Programs:
• Agricultural, Food and Resource Economics
• Animal Science
• Crop and Soil Sciences
• Crop and Soil Sciences - Environmental Toxicology
• Fisheries and Wildlife
• Food Science
• Horticulture
• Plant Biology
• Plant Breeding, Genetics and Biotechnology - Crop and Soil
Sciences
• Plant Breeding, Genetics and Biotechnology-Horticulture
• Plant Breeding, Genetics and Biotechnology-Plant Biology
• Plant Pathology
Purdue University* – West Lafayette, Indiana
Associate Degree Programs:
• Veterinary Technician
Bachelor Degree Programs:
• Agribusiness: Agricultural Finance Concentration
Appendices
144
• Agribusiness: Agricultural Marketing Concentration
• Agribusiness: Commodity Marketing Concentration
• Agribusiness: Food Marketing Concentration
• Agribusiness: Agribusiness Management Concentration
• Agricultural Communication
• Agricultural Economics: Applied Agricultural Economics
Concentration
• Agricultural Economics: Commodity Marketing Concentration
• Agricultural Economics: Quantitative Analysis Concentration
• Agricultural Engineering
• Agricultural Systems Management
• Agronomy: Agronomic Business and Marketing Concentration
• Agronomy: Crop and Soil Management Concentration
• Agronomy: International Agronomy Concentration
• Animal Sciences: Animal Agribusiness Concentration
• Animal Sciences: Behavior/Well-Being Concentration
• Animal Sciences: Biosciences Concentration
• Animal Sciences: Pre-Veterinary Medicine Concentration
• Animal Sciences: Production Concentration
• Animal Sciences: Products Concentration
• Crop Science
• Farm Management
• Fisheries and Aquatic Sciences
• Food Science
• Foods and Nutrition in Business
• Horticulture: Horticultural Production and Marketing Concentration
• Horticulture: Landscape Enterprise Management Concentration
• Horticulture: Plant Science Concentration
• Horticulture: Public Horticulture Concentration
• Nutrition and Dietetics
• Nutrition Science, BS
• Plant Genetics, Breeding, and Biotechnology
• Plant Science
• Pre-Veterinary Medicine
• Soil and Water Sciences
• Sustainable Food and Farming Systems
• Veterinary Technology
Graduate Programs:
• Agricultural & Biological Engineering
• Agricultural Economics
• Agronomy
Appendices
145
• Animal Sciences
• Food Science
• Nutrition
• Nutrition Science
• Veterinary Clinical Sciences
• Veterinary Medicine
The Ohio State University – Columbus, Ohio
Bachelor Degree Programs:
• Agribusiness and Applied Economics
• Agricultural Communication
• Agricultural Systems Management
• Agriculture, Exploring
• Culinary Science
• Food Business Management
• Food Science and Technology
• Food, Agricultural and Biological Engineering
• Forestry, Fisheries and Wildlife
• Meat Science
• Medical Dietetics
• Plant Health Management
• Plant Pathology
• Pre-Veterinary Medicine
• Sustainable Plant Systems
Master Degree Programs:
• Agricultural and Extension Education
• Agricultural and Extension Education, Distance Learning
• Agricultural, Environmental and Development Economics
• Animal Sciences
• Food Science and Technology
• Food, Agricultural and Biological Engineering
• Horticulture and Crop Science
• Plant Health Management
• Plant Pathology
• Veterinary Medicine
Doctoral Degree Programs:
• Agricultural and Extension Education
• Agricultural, Environmental and Development Economics
• Animal Sciences
• Food Science and Technology
• Food, Agricultural and Biological Engineering
Appendices
146
• Horticulture and Crop Science
• Ohio State Nutrition Program
• Plant Pathology
• Translational Plant Science
• Veterinary Medicine
*Note: Main campus locations are outside of the Indiana Michigan Power
service territory.
Appendices
147
Appendix J: Location Quotients
Location quotients are used to quantify the density of a particular industry,
cluster, occupation, or demographic group in a region when compared to the
nation as a whole. It is used to identify the uniqueness of a specific region from a
comparative point of view. For example, if a particular industry makes up 10
percent of the jobs in a region but 1% nationally, this region’s particular industry
has a location quotient of 10. This means that this specific regional industry is 10
times larger than that of the same industry nationally, thus having a
disproportionately larger share of the total jobs for this industry. Location
quotients are always greater than zero, and a location quotient that is greater
than one shows a larger share than the nation and less than one shows a smaller
share than the nation. An industry with a location quotient that is one has the
same concentration of the industry as the nation, and these industries tend to
be either service or retail related.
Appendices
148
Appendix K: Shift Share Analysis
A shift share analysis is used to determine what portions of regional economic
growth or decline can be attributed to national, industrial, and regional factors.
The main purpose of this analysis is to identify industries where a regional
economy has competitive advantages over a larger economy (usually the
nation). This is accomplished by taking the changes over time of an economic
variable, such as employment, within industries of a regional economy and
dividing the change into components.
There are three components in a shift share analysis. The national growth effect
shows the change of the economic variable (e.g. employment) that can be
expected based on national trends across all industries. The industry mix effect
shows the change of the economic variable that can be expected based on
trends of the specific industry. Together the national growth effect and industry
mix effect show the total change that can be expected in a given industry
based on national industrial trends. The third effect is the most important to a
region, and is called the regional competitive effect. This effect is the difference
between the change that a region is expected to have in a given industry and
the change that actually happens in the same regional industry. A positive
value suggests that the region has some sort of competitive advantage while a
negative value suggests a competitive disadvantage. The base value for this
analysis would be zero and a value close to zero would suggest that the specific
industry is aligned with national and industry trends. It is important to note that
this method does not identify what the competitive advantage may be; this is
left up to the local officials to determine.
Appendices
149
Appendix L: Supply Chain Analysis
The purpose of a supply chain analysis is to show backward (purchases) and
forward (sales) linkages in a targeted industry’s supply chain. From determining
these linkages, gaps or leakages can be identified for a specific region.
Generally, gaps occur when purchases are made from companies outside the
region and leakages occur when sales are made to companies outside the
region. These gaps and leakages may represent opportunities to attract new
businesses to the region that could provide the supplies (purchases) or further
process food products (sales). The goal of this exercise is twofold: 1.) to identify
supply chain linkages of the value-added agriculture and food and beverage
processing industry, and 2.) to identify any gaps or leakages of this industry
outside of the Indiana Michigan Power (I&M) service territory. Outcomes and
significant findings of this analysis were used to conduct further industry analyses
and ultimately be incorporated into the marketing and business development
strategy.
The primary source used for distinguishing a supply chain of an industry is the U.S.
Bureau of Economic Analysis’ (BEA) Input-Output (I-O) Accounts Data. The I-O
accounts show how industries provide input to, and use output from, each other
to produce Gross Domestic Product GDP. These data are presented in a set of
tables: Use, Make, Direct Requirements, and Total Requirements. Of these tables,
the Use table is the most important for this analysis because of its applications to
the estimates of GDP. The Use table shows the inputs to industry production and
the commodities that are consumed by final users. These are otherwise known
as backward linkages in the supply chain.
The Direct Requirements table shows the amount of a commodity that is
required by an industry to produce a dollar of the industry’s output. Of the three
Total Requirements tables, the most useful for the purposes of this study is the
Industry by Industry Total Requirements table. This table shows the production
that is required, directly and indirectly, from each industry to deliver a dollar of a
commodity to final users. The information displayed by this table is useful for
showing forward linkages in the supply chain, however it only highlights industries
that are major contributors. This means that a large proportion of an industry
must be aided by contributing industries to matter. Additionally, this table only
displays the relationship of an industry to its end users, otherwise known as the
place that is directly selling the good or service to consumers. Any “middle-
man” is left out of the equation including distributors, wholesalers, and
warehousing. Because of this, Austin has had to supplement this information
based on experience in the industry.
Appendices
150
To conduct this analysis, codes from the U.S. Census Bureau’s North American
Industry Classification System (NAICS) were used for categorization and
organization purposes. These codes are broken down to the 6-digit level, which
is the most detailed level available. The EMSI Developer tool was employed to
conduct the bulk of this analysis. This tool was selected because it unsuppresses
data that would otherwise be unavailable at the 6-digit level using federal data
sources. Additionally, the tool has an Industry Purchases module that tracks the
purchases of one industry to another. These purchases are the backward
linkages in the supply chain that are desired for this type of analysis. These data
include purchases both inside and outside of the target region. The backbone
of this module in EMSI is the aforementioned I-O Accounts Data from BEA.
Value-added agriculture and food and beverage processing is a uniquely titled
industry sector which is meant to encompass a multitude of industry subsectors.
At the essence of this title is the food and beverage processing industry sector
which is clearly defined by NAICS codes. Food and beverage manufacturing
(processing) is listed under the Manufacturing industry sector as industry
subsectors 311 (Food Manufacturing) and 312 (Beverage and Tobacco
Manufacturing), with the exception of Tobacco Manufacturing (3122). The
omission of the Tobacco Manufacturing sector was made because it not only
doesn’t fit in the food and beverage categorization but also does not have a
significant enough presence in the region to warrant further inclusion.
Altogether, this gave Austin a clearly defined way of categorizing data for
analysis within 43 six digit NAICS codes.
Because food and beverage products are used by a myriad of different
industries, there are many other industries that could have been included at the
beginning of this analysis. However, by using food and beverage processing as
the foundation, all other significant contributors to the value-added agriculture
and food and beverage processing sector would be captured. Basically, by
starting with a food processing industry group the inputs can be traced back to
agricultural suppliers. This means that inputs for food and beverage processing
are also inclusive of value-added agriculture as well.
Once Austin determined the NAICS codes to be used in this analysis, data could
be collected. These data were gathered from three different methods:
literature, numbers, and interviews. Data were collected from these methods
simultaneously because of territory visit scheduling.
Appendices
151
Previous work and literature was reviewed to discover any relevant and useful
insight into the potential supply chain for the I&M territory. Information from BEA
and StatAmerica gave particularly useful understanding into which industries
may be included in a supply chain. However, these sources did not describe
industry sectors within the I&M territory, so they were instead used to verify the
final supply chain results.
During visits to companies within the study region, Austin specifically asked
questions to managers about business relationships in the area. Learning the
reasons why companies chose to locate in the region were particularly
interesting. Many of the operations were located within the region to be close to
where their inputs are produced (i.e. farms and natural assets). Company
managers also shared detailed information on their suppliers and to whom they
sell. Information gleaned from interviews was imperative to the early design and
running of the supply chain analysis in EMSI Developer.
Austin employed the EMSI Developer tool to do most of the heavy lifting for the
supply chain analysis in the I&M territory. Data were primarily collected from the
tool’s Industry Purchases and Industry Sales modules. These two modules
represent backward and forward linkages in the supply chain of an industry.
From this Austin determined the most valuable relationships to local companies.
These data also helped in understanding whether or not there are any gaps or
leakages in the supply chain. A detailed description of the supply chain analysis
process is provided below:
1. All 43 industries were run through both modules (purchases and sales) to
collect the unique backward and forward linkages in each industry
sector.
2. The totals and percentages were looked at to determine significance to
each industry.
3. All industry purchases and industry sales were combined (separately) and
sorted based on contribution.
4. A threshold of 2% was used to filter out any linked industry sector that was
less than this mark. This threshold seemed to be a natural break in data.
5. Industry sectors were categorized into where each fit into the overall
supply chain. Categories include:
a. Raw – Farmers, Growers, Raisers, etc.
b. Processed – Food and Beverage Processors
c. Packaging – Bottles, Cans, Boxes, Jars, etc.
d. Services – Freight, Trucks, Warehouse, Cold Storage, Corporate
Services, Trade Brokers, etc.
Appendices
152
6. Graphics were created for each industry group for both the purchases
and sales modules.
a. Purchases were separated into the four categories listed above
i. In the EMSI model, purchasing data for the I&M region did not
differ from data for the U.S.
b. Because data differed at the regional and national levels for sales,
these data were separated into processing and final categories
and compared with sales within the same categories for the nation.
As research was furthered, it became clear which industry subsectors had a
presence in the I&M region. In fact, Austin was able to identify the major
companies in the region. These companies fit into nine major groups:
1. Pet Food
2. Flour Milling
3. Starch and Vegetable Oil and Fats
4. Confectionary
5. Dairy
6. Meat
7. Baking and Snacks
8. Flavors and Ingredients
9. Beverages
Of these categories, only 8 were selected to have a dedicated section in the
final report. The Starch and Vegetable Oils and Fats category was covered
under the Baking and Snack Food section, and is also mentioned throughout
the report because of its importance in the supply chain of other categories.
From the development of these eight groups, other analyses were carried out to
provide more detail on the overall health of the Food and Beverage Processing
subsector. Detailed tables of supply chain purchases and sales are included
below. These tables showcase all industry categories that were above the 2%
threshold for each industry group.
Appendices
153
Baking and Snack Food
Purchases from NAICSIn-region
Purchases
% In-region
Purchases
Total
Purchases
% of Total
Purchases
Corporate, Subsidiary, and Regional Managing Offices 551114 6,124,987$ 6% 99,471,863$ 12%
Crop Production 111000 32,014,355$ 49% 65,496,961$ 8%
Flour Milling 311211 12,775,810$ 23% 55,545,228$ 7%
Animal Production 112000 6,170,961$ 19% 32,351,074$ 4%
Fats and Oils Refining and Blending 311225 893,653$ 3% 29,463,628$ 4%
Plastics Bottle Manufacturing 326160 1,592,538$ 8% 19,688,376$ 2%
Corrugated and Solid Fiber Box Manufacturing 322211 4,697,489$ 26% 18,305,178$ 2%
Wholesale Trade Agents and Brokers 425120 4,198,002$ 24% 17,627,115$ 2%
Baking and Snack Food - I&M Region Industry Purchases
Source: EMSI 2017.3 Class of Worker
Sales to NAICSIn-Region
Sales
% of In-
Region Sales
Limited-Service Restaurants 722513 4,489,135$ 13%
Full-Service Restaurants 722511 3,182,423$ 9%
Commercial Bakeries 311812 2,554,458$ 7%
Colleges, Universities, and Professional Schools 611310 2,508,945$ 7%
All Other Miscellaneous Food Manufacturing 311999 2,450,965$ 7%
Fruit and Vegetable Canning 311421 2,056,721$ 6%
Light Truck and Utility Vehicle Manufacturing 336112 2,015,983$ 6%
Cookie and Cracker Manufacturing 311821 1,303,683$ 4%
Nonchocolate Confectionery Manufacturing 311340 1,016,158$ 3%
Ice Cream and Frozen Dessert Manufacturing 311520 814,329$ 2%
Baking and Snack Food - I&M Region Industry Sales
Source: EMSI 2017.3 Class of Worker
Sales to NAICS Total Sales% Total
Sales
Limited-Service Restaurants 722513 3,862,500,286$ 19%
Full-Service Restaurants 722511 3,365,550,080$ 16%
Colleges, Universities, and Professional Schools 611310 1,251,684,394$ 6%
Commercial Bakeries 311812 984,636,733$ 5%
State Government, Excluding Education and Hospitals 902999 798,202,597$ 4%
Local Government, Excluding Education and Hospitals 903999 577,802,489$ 3%
Fruit and Vegetable Canning 311421 475,961,896$ 2%
Hotels (except Casino Hotels) and Motels 721110 412,658,011$ 2%
Baking and Snack Food - National Industry Sales
Source: EMSI 2017.3 Class of Worker
Appendices
154
Dairy
Purchases from NAICSIn-region
Purchases
% In-region
Purchases
Total
Purchases
% of Total
Purchases
Animal Production and Aquaculture 112000 85,733,186$ 14% 614,577,750$ 45%
Fluid Milk Manufacturing 311511 57,396,495$ 46% 123,482,538$ 9%
Dry, Condensed, and Evaporated Dairy Product Manufacturing 311514 54,478,761$ 66% 82,748,083$ 6%
Corporate, Subsidiary, and Regional Managing Offices 551114 2,337,233$ 6% 38,684,160$ 3%
Cheese Manufacturing 311513 6,474,785$ 21% 31,540,719$ 2%
Dairy - I&M Region Industry Purchases
Source: EMSI 2017.3 Class of Worker
Sales to NAICSIn-Region
Sales
% of In-Region
Sales
Dry, Condensed, and Evaporated Dairy Product Manufacturing 311514 53,900,993$ 32%
Fluid Milk Manufacturing 311511 45,307,773$ 27%
Ice Cream and Frozen Dessert Manufacturing 311520 22,212,214$ 13%
Limited-Service Restaurants 722513 7,023,015$ 4%
Cheese Manufacturing 311513 6,517,614$ 4%
Full-Service Restaurants 722511 5,493,770$ 3%
General Medical and Surgical Hospitals 622110 3,979,047$ 2%
Source: EMSI 2017.3 Class of Worker
Dairy - I&M Region Industry Sales
Sales to NAICS Total Sales% of Total
Sales
Cheese Manufacturing 311513 11,923,836,518$ 20%
Limited-Service Restaurants 722513 8,057,701,159$ 13%
Full-Service Restaurants 722511 6,936,971,375$ 12%
Fluid Milk Manufacturing 311511 4,556,529,614$ 8%
Dry, Condensed, and Evaporated Dairy Product Manufacturing 311514 3,099,740,760$ 5%
State Government, Excluding Education and Hospitals 902999 2,481,419,172$ 4%
General Medical and Surgical Hospitals 622110 2,091,676,905$ 3%
Ice Cream and Frozen Dessert Manufacturing 311520 1,953,655,571$ 3%
Local Government, Excluding Education and Hospitals 903999 1,785,013,802$ 3%
Frozen Specialty Food Manufacturing 311412 1,528,090,571$ 3%
Hotels (except Casino Hotels) and Motels 721110 1,258,330,419$ 2%
Source: EMSI 2017.3 Class of Worker
Dairy - National Industry Sales
Appendices
155
Fruit and Vegetable Processing
Purchases from NAICSIn-region
Purchases
% In-region
Purchases
Total
Purchases
% of Total
Purchases
Flavoring Syrup and Concentrate Manufacturing 311930 7,313,736$ 18% 41,093,920$ 7%
Fruit and Vegetable Canning 311421 31,998,298$ 82% 39,090,948$ 6%
Corporate, Subsidiary, and Regional Managing Offices 551114 2,149,662$ 6% 37,531,411$ 6%
Metal Can Manufacturing 332431 982,384$ 3% 35,882,615$ 6%
Crop Production 111000 22,861,809$ 67% 34,086,820$ 6%
Spice and Extract Manufacturing 311942 2,755,602$ 13% 21,754,865$ 4%
Other Metal Container Manufacturing 332439 2,115,289$ 11% 19,059,822$ 3%
Coffee and Tea Manufacturing 311920 731,747$ 5% 16,003,575$ 3%
Wholesale Trade Agents and Brokers 425120 4,261,575$ 30% 14,256,526$ 2%
Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing 311941 626,633$ 5% 13,644,562$ 2%
Corrugated and Solid Fiber Box Manufacturing 322211 2,865,268$ 22% 13,275,522$ 2%
Fruit and Vegetable Processing - I&M Region Industry Purchases
Source: EMSI 2017.3 Class of Worker
Sales to NAICSIn-Region
Sales
% of In-Region
Sales
Fruit and Vegetable Canning 311421 34,444,412$ 63%
Frozen Specialty Food Manufacturing 311412 5,354,465$ 10%
Limited-Service Restaurants 722513 1,732,248$ 3%
Spice and Extract Manufacturing 311942 1,464,800$ 3%
Full-Service Restaurants 722511 1,422,059$ 3%
Fruit and Vegetable Processing - I&M Region Industry Sales
Source: EMSI 2017.3 Class of Worker
Sales to NAICS Total Sales% of Total
Sales
Frozen Specialty Food Manufacturing 311412 1,987,806,009$ 13%
Fruit and Vegetable Canning 311421 1,870,879,821$ 12%
Full-Service Restaurants 722511 1,345,479,066$ 9%
Limited-Service Restaurants 722513 1,332,052,623$ 9%
Frozen Fruit, Juice, and Vegetable Manufacturing 311411 1,064,153,131$ 7%
State Government, Excluding Education and Hospitals 902999 850,870,510$ 6%
Commercial Bakeries 311812 656,268,283$ 4%
Local Government, Excluding Education and Hospitals 903999 612,642,707$ 4%
General Medical and Surgical Hospitals 622110 432,727,466$ 3%
Specialty Canning 311422 372,347,863$ 2%
Colleges, Universities, and Professional Schools 611310 364,489,279$ 2%
Dried and Dehydrated Food Manufacturing 311423 327,546,353$ 2%
Soft Drink Manufacturing 312111 313,705,470$ 2%
Source: EMSI 2017.3 Class of Worker
Fruit and Vegetable Processing - National Industry Sales
Appendices
156
Meat and Poultry
Purchases from NAICSIn-region
Purchases
% In-region
Purchases
Total
Purchases
%of Total
Purchases
Animal Production and Aquaculture 112000 110,114,741$ 35% 316,414,778$ 58%
Poultry Processing 311615 36,840,546$ 94% 39,007,686$ 7%
Animal (except Poultry) Slaughtering 311611 9,030,345$ 24% 37,722,840$ 7%
Meat Processed from Carcasses 311612 13,088,608$ 36% 36,823,222$ 7%
Corporate, Subsidiary, and Regional Managing Offices 551114 2,148,345$ 10% 20,659,416$ 4%
Meat and Poultry - I&M Region Industry Purchases
Source: EMSI 2017.3 Class of Worker
Sales to NAICSIn-Region
Sales
% of In-
Region Sales
Poultry Processing 311615 34,362,664$ 33%
Meat Processed from Carcasses 311612 17,831,212$ 17%
Limited-Service Restaurants 722513 8,608,383$ 8%
Animal (except Poultry) Slaughtering 311611 6,757,495$ 7%
Full-Service Restaurants 722511 6,406,373$ 6%
General Medical and Surgical Hospitals 622110 3,592,061$ 3%
Pharmaceutical Preparation Manufacturing 325412 3,322,926$ 3%
Meat and Poultry - I&M Region Industry Sales
Source: EMSI 2017.3 Class of Worker
Sales to NAICS Total Sales% of Total
Sales
Animal (except Poultry) Slaughtering 311611 12,095,868,401$ 14%
Meat Processed from Carcasses 311612 11,802,533,935$ 14%
Poultry Processing 311615 9,377,231,710$ 11%
Full-Service Restaurants 722511 8,413,402,251$ 10%
Limited-Service Restaurants 722513 8,365,753,966$ 10%
General Medical and Surgical Hospitals 622110 3,259,872,711$ 4%
Dog and Cat Food Manufacturing 311111 2,820,122,373$ 3%
State Government, Excluding Education and Hospitals 902999 2,441,152,637$ 3%
Local Government, Excluding Education and Hospitals 903999 1,754,868,590$ 2%
Meat and Poultry - National Industry Sales
Source: EMSI 2017.3 Class of Worker
Appendices
157
Beverage
Purchases from NAICSIn-region
Purchases
% In-
region
Purchases
Total
Purchases
% of Total
Purchases
Corporate, Subsidiary, and Regional Managing Offices 551114 2,202,390$ 5% 45,122,219$ 14%
Flavoring Syrup and Concentrate Manufacturing 311930 6,314$ 0% 23,766,489$ 7%
Plastics Bottle Manufacturing 326160 1,933,533$ 10% 20,311,674$ 6%
Metal Can Manufacturing 332431 665,304$ 5% 12,764,944$ 4%
Wet Corn Milling 311221 -$ 0% 12,537,533$ 4%
Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) 533110 3,452,620$ 31% 11,117,739$ 3%
Glass Product Manufacturing Made of Purchased Glass 327215 5,805,508$ 66% 8,740,529$ 3%
Other Aluminum Rolling, Drawing, and Extruding 331318 5,935,693$ 70% 8,452,211$ 3%
Crop Production 111000 6,234,565$ 78% 7,979,189$ 2%
Corrugated and Solid Fiber Box Manufacturing 322211 3,236,096$ 41% 7,806,752$ 2%
Aluminum Sheet, Plate, and Foil Manufacturing 331315 203,592$ 3% 7,125,548$ 2%
Other Metal Container Manufacturing 332439 399,629$ 6% 6,780,374$ 2%
Flour Milling 311211 3,574,525$ 54% 6,640,360$ 2%
Beverage - I&M Region Industry Purchases
Source: EMSI 2017.3 Class of Worker
Sales to NAICSIn-Region
Sales
% of In-Region
Sales
Limited-Service Restaurants 722513 8,694,619$ 23%
Full-Service Restaurants 722511 8,216,537$ 21%
Colleges, Universities, and Professional Schools 611310 4,021,442$ 10%
Distilleries 312140 3,145,003$ 8%
Hotels (except Casino Hotels) and Motels 721110 1,187,762$ 3%
Wineries 312130 1,126,029$ 3%
Dog and Cat Food Manufacturing 311111 1,054,833$ 3%
Source: EMSI 2017.3 Class of Worker
Beverage - I&M Region Industry Sales
Sales to NAICS Total Sales% of Total
Sales
Full-Service Restaurants 722511 6,065,395,364$ 24%
Limited-Service Restaurants 722513 5,725,919,906$ 22%
Hotels (except Casino Hotels) and Motels 721110 1,550,780,802$ 6%
Distilleries 312140 1,441,954,030$ 6%
Soft Drink Manufacturing 312111 932,916,162$ 4%
Other Animal Food Manufacturing 311119 883,840,746$ 3%
Colleges, Universities, and Professional Schools 611310 848,683,647$ 3%
Wineries 312130 558,385,565$ 2%
Source: EMSI 2017.3 Class of Worker
Beverage - National Industry Sales
Appendices
158
Alcoholic Beverage
Purchases from NAICSIn-region
Purchases
% In-region
Purchases
Total
Purchases
% of Total
Purchases
Corporate, Subsidiary, and Regional Managing Offices 551114 1,561,721$ 6% 28,163,420$ 18%
Metal Can Manufacturing 332431 638,413$ 5% 11,626,436$ 7%
Glass Product Manufacturing Made of Purchased Glass 327215 5,670,930$ 67% 8,440,764$ 5%
Crop Production 111000 6,231,843$ 78% 7,974,920$ 5%
Flour Milling 311211 3,574,507$ 54% 6,640,338$ 4%
Other Metal Container Manufacturing 332439 380,336$ 6% 6,175,631$ 4%
Corrugated and Solid Fiber Box Manufacturing 322211 1,935,260$ 39% 4,912,469$ 3%
Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) 533110 1,022,591$ 27% 3,782,168$ 2%
Distilleries 312140 2,958,846$ 80% 3,715,031$ 2%
Glass Container Manufacturing 327213 1,007,155$ 29% 3,503,251$ 2%
Other Pressed and Blown Glass and Glassware Manufacturing 327212 126,012$ 4% 3,409,910$ 2%
Source: EMSI 2017.3 Class of Worker
Alcoholic Beverage - I&M Region Industry Purchases
Sales to NAICSIn-Region
Sales
% of In-
Region Sales
Limited-Service Restaurants 722513 7,598,320$ 24%
Full-Service Restaurants 722511 7,445,430$ 23%
Colleges, Universities, and Professional Schools 611310 3,970,563$ 12%
Distilleries 312140 3,144,878$ 10%
Wineries 312130 1,125,731$ 4%
Hotels (except Casino Hotels) and Motels 721110 1,118,454$ 3%
Dog and Cat Food Manufacturing 311111 1,054,444$ 3%
Other Animal Food Manufacturing 311119 659,487$ 2%
Source: EMSI 2017.3 Class of Worker
Alcoholic Beverage - I&M Region Industry Sales
Sales to NAICS Total Sales% of Total
Sales
Full-Service Restaurants 722511 4,390,027,846$ 25%
Limited-Service Restaurants 722513 3,858,404,908$ 22%
Distilleries 312140 1,500,946,035$ 9%
Hotels (except Casino Hotels) and Motels 721110 1,321,815,845$ 8%
Other Animal Food Manufacturing 311119 904,717,727$ 5%
Colleges, Universities, and Professional Schools 611310 814,173,003$ 5%
Wineries 312130 578,210,100$ 3%
Dog and Cat Food Manufacturing 311111 483,269,381$ 3%
Source: EMSI 2017.3 Class of Worker
Alcoholic Beverage - National Industry Sales
Appendices
159
Confectionery
Purchases from NAICSIn-region
Purchases
% In-region
Purchases
Total
Purchases
% of Total
Purchases
Crop Production 111000 10,659,017$ 48% 22,252,334$ 10%
Corporate, Subsidiary, and Regional Managing Offices 551114 1,468,515$ 7% 20,588,148$ 9%
Confectionery Manufacturing from Purchased Chocolate 311352 2,552,791$ 14% 18,670,311$ 8%
Nonchocolate Confectionery Manufacturing 311340 8,317,540$ 56% 14,931,145$ 7%
Chocolate and Confectionery Manufacturing from Cacao Beans 311351 -$ 0% 7,296,696$ 3%
Cane Sugar Manufacturing 311314 -$ 0% 6,007,891$ 3%
Fluid Milk Manufacturing 311511 831,112$ 14% 5,819,773$ 3%
Corrugated and Solid Fiber Box Manufacturing 322211 1,328,677$ 23% 5,745,121$ 3%
Wet Corn Milling 311221 -$ 0% 5,675,555$ 3%
Wholesale Trade Agents and Brokers 425120 1,538,903$ 32% 4,841,685$ 2%
Beet Sugar Manufacturing 311313 -$ 0% 4,780,984$ 2%
Source: EMSI 2017.3 Class of Worker
Confectionery - I&M Region Industry Purchases
Sales to NAICSIn-Region
Sales
% of In-
Region Sales
Nonchocolate Confectionery Manufacturing 311340 9,380,986$ 47%
Cookie and Cracker Manufacturing 311821 1,847,676$ 9%
Confectionery Manufacturing from Purchased Chocolate 311352 1,489,344$ 8%
Commercial Bakeries 311812 1,285,842$ 6%
Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour 311824 657,240$ 3%
Fluid Milk Manufacturing 311511 571,968$ 3%
Fruit and Vegetable Canning 311421 571,393$ 3%
Ice Cream and Frozen Dessert Manufacturing 311520 518,995$ 3%
Dry, Condensed, and Evaporated Dairy Product Manufacturing 311514 495,228$ 2%
Colleges, Universities, and Professional Schools 611310 404,221$ 2%
Source: EMSI 2017.3 Class of Worker
Confectionery - I&M Region Industry Sales
Appendices
160
Sales to NAICS Total Sales% of Total
Sales
Confectionery Manufacturing from Purchased Chocolate 311352 1,088,812,170$ 15%
Nonchocolate Confectionery Manufacturing 311340 868,305,228$ 12%
Commercial Bakeries 311812 546,893,100$ 7%
Cookie and Cracker Manufacturing 311821 454,690,829$ 6%
Chocolate and Confectionery Manufacturing from Cacao Beans 311351 422,435,584$ 6%
Cane Sugar Manufacturing 311314 347,625,651$ 5%
Breakfast Cereal Manufacturing 311230 323,952,181$ 4%
Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour 311824 310,814,433$ 4%
Beet Sugar Manufacturing 311313 275,053,396$ 4%
Retail Bakeries 311811 205,449,030$ 3%
Tortilla Manufacturing 311830 194,691,905$ 3%
Full-Service Restaurants 722511 177,512,277$ 2%
Ice Cream and Frozen Dessert Manufacturing 311520 160,185,627$ 2%
Source: EMSI 2017.3 Class of Worker
Confectionery - National Industry Sales
Appendices
161
Flavors, Dressings, and Seasonings
Purchases from NAICSIn-region
Purchases
% In-region
Purchases
Total
Purchases
% of Total
Purchases
Crop Production 111000 16,950,371$ 73% 23,366,024$ 11%
Plastics Bottle Manufacturing 326160 991,381$ 7% 15,214,215$ 7%
Fats and Oils Refining and Blending 311225 326,314$ 2% 15,120,311$ 7%
Corporate, Subsidiary, and Regional Managing Offices 551114 810,950$ 6% 13,397,779$ 6%
Fluid Milk Manufacturing 311511 1,774,930$ 22% 8,099,237$ 4%
Animal Production and Aquaculture 112000 916,691$ 15% 6,130,791$ 3%
Fruit and Vegetable Canning 311421 1,587,078$ 29% 5,453,698$ 3%
Wet Corn Milling 311221 -$ 0% 4,710,809$ 2%
All Other Plastics Product Manufacturing 326199 1,658,056$ 37% 4,538,478$ 2%
Paper Bag and Coated and Treated Paper Manufacturing 322220 1,692,578$ 39% 4,333,204$ 2%
Source: EMSI 2017.3 Class of Worker
Flavors, Dressings, and Seasonings - I&M Region Industry Purchases
Sales to NAICSIn-Region
Sales
% of In-
Region Sales
Fruit and Vegetable Canning 311421 10,692,605$ 54%
Spice and Extract Manufacturing 311942 1,863,860$ 9%
Limited-Service Restaurants 722513 1,385,476$ 7%
Full-Service Restaurants 722511 957,788$ 5%
Colleges, Universities, and Professional Schools 611310 664,720$ 3%
Source: EMSI 2017.3 Class of Worker
Flavors, Dressings, and Seasonings - I&M Region Industry Sales
Sales to NAICS Total Slaes% of Total
Sales
Soft Drink Manufacturing 312111 4,166,199,788$ 22%
Fruit and Vegetable Canning 311421 2,691,081,739$ 14%
Limited-Service Restaurants 722513 2,038,301,828$ 11%
Full-Service Restaurants 722511 1,927,672,739$ 10%
Bottled Water Manufacturing 312112 793,980,150$ 4%
Specialty Canning 311422 535,586,799$ 3%
Dried and Dehydrated Food Manufacturing 311423 471,144,110$ 3%
Fluid Milk Manufacturing 311511 388,281,275$ 2%
Flavors, Dressings, and Seasonings - National Industry Sales
Source: EMSI 2017.3 Class of Worker
Appendices
162
Animal Food
Purchases from NAICSIn-Region
Purchases
% of In-Region
Purchases
Total
Purchases
% of Total
Purchases
Crop Production 111000 11,771,837$ 55.5% 21,209,695$ 14%
Animal (except Poultry) Slaughtering 311611 337,516$ 3.4% 9,952,098$ 7%
Meat Processed from Carcasses 311612 1,046,222$ 10.8% 9,714,759$ 6%
Metal Can Manufacturing 332431 271,654$ 3.5% 7,653,712$ 5%
Soybean and Other Oilseed Processing 311224 1,349,794$ 20.5% 6,584,371$ 4%
Wet Corn Milling 311221 -$ 0.0% 6,011,035$ 4%
Fats and Oils Refining and Blending 311225 136,170$ 2.3% 5,898,442$ 4%
Corporate, Subsidiary, and Regional Managing Offices551114 540,634$ 9.7% 5,593,803$ 4%
Distilleries 312140 1,634,019$ 33.1% 4,929,700$ 3%
Medicinal and Botanical Manufacturing 325411 3,005$ 0.1% 4,642,114$ 3%
Other Metal Container Manufacturing 332439 778,416$ 19.1% 4,065,433$ 3%
Rail transportation 482110 2,760,262$ 75.6% 3,652,402$ 2%
Wholesale Trade Agents and Brokers 425120 1,197,534$ 33.4% 3,590,109$ 2%
Flour Milling 311211 505,066$ 16.0% 3,162,013$ 2%
Animal Food - I&M Region Industry Purchases
Source: EMSI 2017.3 Class of Worker
Sales to NAICSIn-Region
Sales
% of In-Region
Sales
Animal Production and Aquaculture 112000 11,072,360$ 82.42%
Veterinary Services 541940 1,087,738$ 8.10%
Dog and Cat Food Manufacturing 311111 377,041$ 2.81%
Animal Food - I&M Region Industry Sales
Source: EMSI 2017.3 Class of Worker
Sale to NAICS Total Sales% of Total
Sales
Animal Production 112000 26,673,176,264$ 88%
Veterinary Services 541940 621,042,444$ 2%
Animal Food - National Industry Sales
Sourec: EMSI 2017.3 Class of Worker