Industry Brief: FOOD & BEVERAGE PROCESSING
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19,800+ EMPLOYEES FOOD & BEVERAGE PROCESSING Industry Brief: Cost-Quality Assessment: Food Processing 960+ ESTABLISHMENTS $2.36B DEMAND 1,500+ GRADUATES Hampton Roads, VA Qualitative Score (0 to 10) PV of Operating Cost (index, average = 100) 50 70 90 110 5.3 5.8 6.3 6.8 Savannah, GA New Orleans, LA Miami, FL Richmond, VA Houston, TX New York, NY Charlottesville, VA Major Competitive Strengths Hampton Roads, Virginia is positioned with a competitive combination of above-average quality labor and competitive operating costs as it relates to food & beverage processing. Specifically, the region offers a competitive advantage for businesses relying on raw materials handled through The Port of Virginia, notably in U.S. context. • Established cluster base • Diverse student base • Good access to raw materials • Strong port access and multimodal connectivity • Good pool of experienced staff • Access to relevant real estate Hampton Roads Economic Development Alliance www.hreda.com Virginia Beach-Norfolk-Newport News Metropolitan Statistical Area February 2019
Transcript of Industry Brief: FOOD & BEVERAGE PROCESSING
19,800+EMPLOYEES
FOOD & BEVERAGE PROCESSINGIndustry Brief:
Cost-Quality Assessment: Food Processing
960+ ESTABLISHMENTS
$2.36BDEMAND
1,500+GRADUATES
Hampton Roads, VA
Qual
itativ
e Sc
ore
(0 to
10)
PV of Operating Cost(index, average = 100)
50 70 90 110
5.3
5.8
6.3
6.8
Savannah, GA
New Orleans, LAMiami, FL
Richmond, VA
Houston, TX
New York, NY
Charlottesville, VA
Major Competitive Strengths
Hampton Roads, Virginia is positioned with a competitive combination of above-average quality labor and competitive operating costs as it relates to food & beverage processing. Specifically, the region offers a competitive advantage for businesses relying on raw materials handled through The Port of Virginia, notably in U.S. context.
• Established cluster base• Diverse student base • Good access to raw materials• Strong port access and multimodal connectivity• Good pool of experienced staff• Access to relevant real estate
Hampton Roads Economic Development Alliance www.hreda.comVirginia Beach-Norfolk-Newport News Metropolitan Statistical Area February 2019
Food Batchmakers
$11.77
2017 AVERAGE HOURLY WAGE
$12.12
Food Processing Workers, All Other
$26.61
Computer Numerically Controlled Machine Tool Programmers
$26.43
Food Scientists & Technologists
$18.15
Computer Controlled Machine Operators
$14.83
Agricultural and Food Science Technicians
8,200 establish residency in Hampton Roads.
REGIONAL WORKFORCE DEVELOPMENT
TALENT & WORKFORCE14,000+ military personnel exit the services in Virginia yearly.
1,800+ are within production related occupations.
58%of Virginia’s exiting military choose to live in Hampton Roads
Smithfield Foods, Inc.
High Liner Foods / Icelandic USA
Anheuser-Busch - InBev
Sysco Hampton Roads
Green Mountain Coffee Roasters / Keurig
Kraft Heinz Foods
Unilever / Lipton Tea Company
Massimo Zanetti Beverage USA.
Marva Maid
Pepsi-Cola Bottling Company
KEY EMPLOYERS2,500+
500+
500+
400+
400+
300+
300+
300+
200+
200+ WAGES & OCCUPATIONSHampton Roads offers competitive cost savings compared to the national average for many food & beverage processing occupations.
#In Hampton Roads, 1 in 8 manufacturing jobs are in the food & beverage processing.
The following occupations boast regional LQs more than twice as concentrated as the national average:
3.13
2.17
Agricultural Engineers
Food Machine Operators
Food & Tobacco Roasting, Baking & Drying Operators
$10.21
$14.36
Regional Average for Highlighted Jobs
US AVERAGE, $17.52 — $3.16/HR SAVINGS
REGIONAL WORKFORCE DEVELOPMENTA robust workforce development board and a number of educational institutions offer flexible programs and customizable training opportunities to both individuals and employers in the region.
20,500+ Customers Served Annually
70+ Fast Track Certifications and Degree Programs
INDUSTRY SPOTLIGHT
The City of Suffolk boasts itself as the “Caffeine Capital”. There are a number of coffee companies located in Suffolk. Most recently, Peet’s Coffee strategically opened an East Coast roasting facility in the CenterPoint Intermodal Business Park. The expansion into Hampton Roads represented a $58MM investment and 135 jobs. Access to the Port of Virginia, which has received a certification as an exchange port for coffee imports, allows the facility to intake fresh beans to be roasted in Suffolk and then distributed up and down the East Coast. “We knew we wanted to roast in the East Coast and we looked at a lot of states and a lot of mid-Atlantic states because of their location,” Peet’s Coffee CEO Dave Burwick said. “With the port, this will enable us to get the coffee to people’s homes much faster.” With coffee timing is critical. The faster roasted beans go home with consumers, the fresher the coffee tastes.
sq. ft. of freezer and cooler space with a 20 minute drive3MM
Colleges & Universities
Trade & Technical Institutions
1221
EDUCATION
Annual Graduates in Production Related Programs1,500+
60%2017 Graduates who Obtained a Degree in Two Years or Less
91%Population with a High School Diploma or Higher
in infrastructure investments to be completed within two years$700MM
refrigerated warehouses with rail service directly from terminals6
THE PORT OF VIRGINIA
TEU throughput in 20182.9MM
increased capacity and 1.2 million additional containers by 202040%
The Port of Virginia is highly experienced in handling refrigerated cargo.
With a corporate income tax rate of only 6% that has not increased since 1972, streamlined permitting processes, a right-to-work law and minimal union activity, Virginia hosts a stable and inviting operating environment.
OPERATING COSTS
U.S. AVERAGEHAMPTON ROADS, VA
$5.34
Warehouse Market
$6.62$6.06
Total Industrial Market
$7.68
U.S. AVERAGEHAMPTON ROADS, VA
OPERATING COSTS: INDUSTRIAL SPACE UTILITY COSTS: ELECTRIC
5.3¢
6.9
8.2
9.7
HAMPTON ROADS, VA
NATIONAL AVERAGE
SOUTHEAST AVERAGE
EAST COAST AVERAGE
Average Industrial Rate, In Cents per Kilowatt Hour
Boston
New York
Philadelphia
Washington D.C.
Charlotte
Orlando
LOCATION
OUR SERVICES
The Hampton Roads region is a tightly integrated, diverse collection of 11 localities, all of which help to provide a wealth of benefits for businesses and organizations of every variety. Our communities are connected by a convenient and accessible transportation network which allows multiple methods for moving goods and services between national and international markets. In fact, 47% of all United States consumers are within a one day drive of the region and our daily flights from two airports provide easy connections to all major international gateways.
Virginia Beach
Norfolk
Hampton
PoquosonNewport
News
Portsmouth
ChesapeakeSu�olk
Franklin
Isle of Wight
Southampton
Chicago
Atlanta
Detroit
Indianapolis
The Hampton Roads Economic Development Alliance is dedicated to assisting you with your business relocation or expansion needs across our 11 localities.
The decision to invest in a new or expanded operation is never taken lightly. Our goal is to match the business needs required for your company to be successful with the assets found in Hampton Roads, Virginia. Our objective is to facilitate the evaluation process and provide powerful tools that save you time and money as you seek to locate your new business operations in the Hampton Roads region. Connect with us today.
@HamptonRoadsEDAwww.hreda.com
+1-757- 627-2315 [email protected]
economic development alliance
500 Main St, Suite 1300 • Norfolk, VA 23510 • USA
