John Moxon, business development director at Clegg Food Projects, has seen a ‘dam burst’ with an influx of new work coming into the sector post-recession. Here he tells us the reasons why and talks about how the food building industry has changed.
The sector in which we operate – design, engineering and construction for the food manufacturing industry – has seen some big changes in the last six years. Representing more than 18 per cent of manufacturing turnover and employment, the food and drink industry is a core element of the UK manufacturing economy.
Through the recent recession, according to government figures it was the sector that reduced its output the least and has returned to pre-recession output levels the fastest. Since this time, there has been a dam burst in investment towards factory expansion and building services as confidence has grown.
The amount of expansion work being done across the UK’s factories in the food industry has increased significantly over the last 18 months. Compared to how the food and drink manufacturing industry was functioning pre-recession, its needs have now altered drastically.
To meet the demand for an emerging ready-meal seeking audience pre 2008, new factories were built regularly with production and output at an all-time high. Manufacturers required more space and advanced machinery to meet a rapidly snowballing need for packaged meals.
The industry appears to have now reached the capacity necessary for this significant increase in demand for prepared food.
Although the industry has been steadily recovering since 2008, it was not until mid-2013 that the sector saw a substantial increase in capital investment and growth – creating a ‘dam burst’ type effect. Manufacturers are again looking to invest to improve processes and outcomes in factories and be best in their industry. In particular within their existing manufacturing estate.
A crucial part of this development needs to be that production is maintained throughout the transition process. It is key to the food and drink manufacturing industry that output remains at peak levels throughout any building work.
If you take what is happening in the Midlands for example – an area where Clegg Food Projects serves a large client base – manufacturers are looking to invest in their already established sites. A pattern which is being replicated across the UK.
The demand for the extension and improvement of units has recently outstripped supply. This type of work creates more jobs and is a great opportunity for the food and drink sector to develop.
The future is unclear but looking forward to 2015 the peak in demand for capital investment has eased off and appears to be plateauing. Manufacturing is an important industry for the Midlands and I think the market will only continue to demand these types of services and investment going into 2015.
Clegg Food Projects provides design, engineering and construction expertise on creating processing and distribution facilities for the UK food and drink industry. It has more than 30 years’ of experience and has delivered £500 million worth of projects in the field.
Providing everything from new methodologies and manufacturing processes through to complete turnkey solutions – using its specialist team and extensive expertise .
“Tips for Food and Drink Industry Infrastructure Capital Investment”
1. Focus on products and processes first
It’s pretty obvious but as the food and drink products manufactured are the basis for the business then these need to be what the customer wants, any changes to the facilities need to reflect this. Start from the product then consider the process and finally design the structure and services to meet the needs of these.
2. Treat the building services and structure with equal importance as the process
Once the product and process design are right, whilst it may be the latter part of developing the project, give an equal amount of effort to the building and services, not just a last minute review. If possible re-visit the process to see if small changes that have no adverse impact could have a significant effect and benefit to the building.
3. Work with specialists with a proven track record
Whether it’s a multi-million pound new food facility, or you are looking to improve your existing manufacturing processes, it is important to involve a team of specialists who can help come up with the best solutions for your project.
It is always beneficial to get the technical know-how and engage with a third party, their experience of similar challenges you face can be invaluable.
4. Involve design and construction partners early and extract their practical knowledge
Partner with specialist construction companies at the very beginning of a project, ideally at the ideas stage when a new food or drink product is being developed.
By getting involved right at the start, the process runs so much more smoothly and you will have that continuity to discuss everything from feasibility – right through to design, planning and completion.
5. Create an open and collaborative working relationship
It is important to build up strong working relationships in the industry. We have worked on several projects doing repeat business.
We find that by building up a working relationship, we understand client products and processes and how they work, they in turn benefit from our ability to ask the pertinent questions. You can build a better trust with partners and achieve better results.
6. Accept that change of product or process will impact on capital projects, acknowledge and communicate the change to your delivery partners quickly
At the core of all projects are the products for your customers whose expectations are constantly changing. Acknowledge and accept the impact this may have on your plans and discuss them with the team straight away.
An early response and change can prevent costly project or operating impacts later. If the method is right, and the equipment is right, then your business will thrive.
