Food industry execs report recession rebound: Survey

15-Jul-2010

Related topics: Food finance and prices, Financial & Industry

The food and beverage industry is beginning to emerge from recession, with two-thirds of executives saying they are seeing better revenues and profits compared to the same period last year, according to a new survey.

Nevertheless, the poll of industry executives – conducted by Clarion Research, Inc. on behalf of the audit, tax and advisory firm KPMG – found it will take until 2011 to see improvement in the jobs market for the industry. Thirty-nine percent of the 61 top-level industry executives interviewed said they were more optimistic about employment in the sector for the coming year – up seven percentage points from the same time last year.

Patrick Dolan, KPMG LLP national line of business leader, consumer markets and US sector leader, food, drink and consumer goods, said: "Food and beverage executives are seeing a better economic picture this year relating to their overall business. However, significant concerns remain over the employment outlook and the continued challenges of heightened competition and aggressive pricing and discounting practices.”

More than half (51 percent) of those surveyed said they expected to add employees, but most expected this to be in the range of one to three percent. Meanwhile, 23 percent said they expected to cut the number of employees this year and 26 percent expected no change.

One of the biggest shifts was seen in the proportion of respondents who thought profitability was better now than a year ago, at two-thirds of those surveyed, compared to less than one-third last year, KPMG said