(AP) Researched by Industrial Info Resources (Sugar Land, Texas) -- The year ahead is shaping up to be tough for contractors and suppliers that provide services to industrial manufacturing plants. Capital expenditures are down as project cancellations and deferrals seem to be the ongoing theme, as the global economic slump shows fewer signs of improvement. While many companies are already looking to 2010 to possibly resume spending to levels prior to the economic downturn, manufacturers of food and beverage products are moving forward with spending plans for this year.
Industrial Info has identified more than 200 capital and maintenance projects across North America worth more than $3 billion scheduled to begin construction this year. Projects range from $1 million to more than $100 million and include greenfield construction, plant expansions and upgrades.
According to Randy Godet, Vice President for Industrial Info's Food and Beverage Group, moving forward -- one of the key strategies for food and beverage companies -- will be to identify weaknesses in businesses and take measures to improve upon them in order to capitalize on markets when the economy rebounds. This may result in acquisitions and plant consolidations, as well as efficiency and automation improvements. Apart from that, some investments in manufacturing assets will come out of bare necessity to meet demand for foods prepared at home and meat and poultry products.
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