Food Engineering's 2019 Plant Construction Survey Shows Tax Cuts Spur Investment
Food Engineering's 42nd annual Plant Construction Survey reveals that construction projects in the food and beverage industry are increasing due to federal tax breaks, industry consolidation, and a need for production flexibility. However, the fast-track schedules and a shortage of skilled labor pose challenges. The survey shows that the ratio of new projects to expansion/renovation projects has reversed, with a higher percentage of new projects in 2018. Warehousing and distribution center projects reached a 13-year high. The report also highlights the impact of the Trump administration's tax cuts and eased regulations on capital spending. The shortage of skilled labor, especially in trades like machinists and engineers, is a common problem faced by companies across different sectors. The survey emphasizes the importance of fast project deployment and controlling costs in the current market. The shortage of subcontractors and skilled labor is driving up costs and causing schedule delays.