REFINING AND BLENDINGFATS AND OILS

BUSINESS OPPORTUNITIES

1 | Fats and Oils Refining and Blending

ABOUT THIS INDUSTRYFats & Oils Refining & Blending is a subsector of Margarine & Cooking Oil Processing as operators blend vegetable oils and purchased animal fats with vegetable fats. Fats & Oils Refining & Blending accounts for 21.1% of industry revenue in Margarine & Cooking Oil Processing. This industry supports approximately 6,609 direct jobs in the United States at about 141 different facilities.1 Regional and statewide demand for blended fats and oils creates opportunities for this industry.

Fats & Oils Refining & Blending is a major industry and economic driver in the United States (U.S.), but is not manufactured in West Virginia or Advantage Valley despite significant demands at the regional level. Fats & Oils produced from Refining & Blending processes includes cooking products such as margarine cooking oil, and shortening. Health conscious consumers have decreased demand for traditional products, but innovative trans-fat free products and oils made with more nutritious ingredients are being offered in response to these trends, such as olive, sesame, and grapeseed oil.2

RATIONALE FOR STARTING, EXPANDING, OR LOCATING A FATS & OILS REFINING & BLENDING OPERATION IN ADVANTAGE VALLEYThe Fats & Oils Refining & Blending industry provides opportunity for entrepreneurs and business leaders to be successful in the Advantage Valley Region. This is demonstrated by the Region’s significant unmet regional demand, high-wages, and growth trajectory. The West Virginia Manufacturers Association and Marshall University Robert C. Byrd Institute for Advanced Flexible Manufacturing could be relevant resources to the manufacture of refined or blended fats and oils as these processes require large scale manufacturing equipment such as conventional crushers or solvent extraction technology.3 Chemical Alliance Zone or Mid-Atlantic Technology, Research & Innovation Center could be loosely related resources for this industry, as the extraction process of oils from oilseeds relies on the chemical hexane.4 Entrepreneurs with a background in areas including quality control, process control, dairy farming and processing, agriculture, or food production and preparation can successfully enterthis market.

Fats & Oils Refining & Blending currently has no industry presence in the Advantage Valley Region or West Virginia creating strong opportunities to fill regional demand of $43.6M – demonstrating the

OPPORTUNITIES IN FATS AND OILS REFINING AND BLENDINGAdvantage Valley is an economic development organization and region that lies in the heart of the Eastern United States and encompasses two Metropolitan Statistical Areas (MSA) including Charleston and Huntington, West Virginia. Through an extensive research and stakeholder engagement process we have identified Fats & Oils Refining & Blending as a significant business opportunity for entrepreneurs and growing businesses in Advantage Valley.

1 Emsi, 2018.2. 2 IBIS World Reports “Margarine & Cooking Oil Processing in the US”3 Ibid.4 “Hexane PDF” EPA.gov, https://www.epa.gov/sites/production/files/2016-09/documents/hexane.pdf (Accessed May 23, 2018)

Fats and Oils Refining and Blending | 2

significant market opportunity in the Advantage Valley Region. Job prospects are strong based on national trends. Average earnings for the industry at the national level are high at $77,185 and it is expected that jobs in the industry will expand nationally by 9% over the next five (5) years.

Key Data for the Fats and Oils Refining and Blending Industry in Advantage Valley

NAICS Code 311225

2017 Jobs 0

2022 Jobs Projection 0

2017-2022 Change 0

2017-2022 % Change 0%

2017 Total Demand $43,622,001

2017 Demand Met In-Region $0

2017 % Demand Met In-Region 0%

2017 Demand Met by Imports $43,622,001

2017 % Demand Met by Imports 100%

Average Earnings per Job $0

Industry Profit $0

3 | Fats and Oils Refining and Blending

ENTREPRENEURIAL SKILLS In addition to the opportunity-specific competencies described in Suggested Career Pathways, it is important that potential small business owners also demonstrate proficiency in key entrepreneurial and management competencies. The U.S. Department of Labor, Employment and Training Administration has identified the following competencies, which cross sectors, size, and typeof business.5

ENTREPRENEURIAL SKILLS MANAGEMENT COMPETENCIES

� Staffing

� Informing

� Delegating

� Networking

� Monitoring Work

� Supporting Others

� Motivating and Inspiring

� Developing and Mentoring

� Strategic Planning/Action

� Preparing and Evaluating Budgets

� Clarifying Roles and Objectives

� Managing Conflict and Team Building

� Developing an Organizational Vision

� Monitoring and Controlling Resources

� Principles of Entrepreneurship

� Entrepreneurial Process

� Leadership and Team Building

� Managing Growth

� Innovation and Invention

� Opportunity Orientation

� Research and Development

� Technology Transfer

� Planning

� Venture Analysis

� Stages of Planning

� Marketing

� Marketing Analysis and Strategy

� Product/Service Management

� Pricing

� Selling

� Promotion

� Financial Management

� Financing

� Accounting

� Money Management

� Business Management

� Operations Management

� Human Resources Management

6https://www.careeronestop.org/CompetencyModel/competency-models/entrepreneurship.aspx and https://www.careeronestop.org/CompetencyModel/competency-models/building-blocks-model.aspx

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SUGGESTED CAREER PATHWAYSSimilar to Ethyl Alcohol Manufacturing, Fats and Oils Refining and Blending would be a good fit for someone with a Quality Control or Process Control background; biofuel or biodiesel expertise would also show aptitude in this area. Individuals with a background in dairy farming and processing, agriculture, or food production and food preparation would also have relevant transferable skills for this opportunity. Educational backgrounds could vary widely, from advanced education at the product development level or primarily hands-on, work-based experience at the production level.

COMPETENCY PROFILE

� Experience in manufacturing, refining, and blending products such as shortening and margarine; vegetable, oilseed, and tree nut oils; and animal fats

� Knowledge of techniques and equipment for planting, growing, and harvesting food products and by-products

� Knowledge of public safety demonstrated through use of equipment, policy, and strategies

� Excellent physical ability to control and handle equipment and processes

� Knowledge of engineering, technology, and mathematics

� Ability to inspect equipment for causes of error or other problems; ability to troubleshoot and make repairs

CREDENTIALS AND EDUCATIONAssociate’s DegreesIndustrial Maintenance

Technology

CertificationsMaintenance TechnologyIndustrial MechanicMachinery MechanicAmerican Composites

Manufacturing Association

American Petroleum InstituteNational Institute for

Certification in Engineering Technologies

Association of Technology, Management, and Applied Engineering

Institute of Packaging Professionals

Bachelor’s DegreesOperations Management Industrial EngineeringChemical and Biomolecular

Engineering

Advanced DegreesIndustrial Engineering

TECHNICAL ASSISTANCEAdvantage Valley – Regional Economic Development Between Charleston and Huntington

The Advantage Valley Region is rich with organizations that support new and growing businesses. As an entrepreneur in the Region, we recommend connecting with your county-level economic development organization as the first point of contact to align resources for the launch or expansion of your business. If you are undecided as to where to locate your business in the Region, please contact us at Advantage Valley, and we can help guide you through the site selection process. Additionally, you may want to contact other groups including local / municipal economic development organizations; industry associations; chambers of commerce; workforce training and education institutions; and entrepreneurial support networks, accelerators, or incubators. A comprehensive list of these contacts is available through your county-level economic development organization or by contacting us at Advantage Valley. As a collective region, we are focused on supporting entrepreneurs and small businesses, and we look forward to connecting you with resources to streamline the formation and growth of your business in Advantage Valley.

5 | Fats and Oils Refining and Blending

CountyType of Support

Organization Address Website Phone

AllEconomicDevelopment

Advantage Valley

1045 Bridge RoadCharleston, WV 25314info@advanta-gevalley.com

http://advanta-gevalley.com/

304-342-6972

Boone County

EconomicDevelopment

Boone County Community and Economic Development Corporation

1 Avenue C, Suite 101 Madison, WV 25130

http://www.boonecounty-wv.org/devel-opment-office.php

304-369-9127

Cabell County

EconomicDevelopment

Huntington Area Development Council (HADCO)

916 5th Ave, Ste. 400Huntington, WV 25701

http://www.hadco.org/

304-525-1161

Clay County

EconomicDevelopment

Central Appalachia Empowerment Zone

4208 Wallback RoadClay, WV25043

http://www.caez-wv.org/

304-587-2034

Kanawha County

Economic Development

Charleston Area Alliance

1116 Smith St, Charleston, WV 25301

http://charles-tonareaalli-ance.org/

304-340-4253

Lincoln County

Economic Development

Lincoln Economic Development Authority

6888 McClellan St., 2nd Floor, Ste. 2, West Hamlin, WV 25571

http://www.lincolneda.com/

304-824-3838

Putnam County

EconomicDevelopment

Putnam County Development Authority

971 Street Route 34, Hurricane, WV 25526

http://pcda.org/

304-757-0318

Wayne County

EconomicDevelopment

Wayne County Economic Development Authority

25 Elm School Lane, P.O. Box 519, Wayne, WV 25570

http://www.wceda.org/

304-272-9050

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For more information, visit our website at www.advantagevalley.com.304-342-6972 | info@advantagevalley.com