Food industry

iStock_000001095558SmallIncreasing change requires proper financing

The food industry has experienced rapid development in recent decades and the need to manage the change requirements has long been a success criterion.

Having a proper balance in relation to the structure of the company can be a challenge in an industry characterised by changes and consolidation. Having a good balance, having a key performance indicator effect and operational leasing, is an important tool in the toolbox to orchestrate the right balance.

The changes in the food industry are many and they come from many different sources. On the one hand, the authorities place requirements on everything from tracking and the environment, both locally and via EU directives. At the same time consumers demand information, presentation and packaging. Consolidation in the market means that demands from fewer buyers weigh heavier and heavier.

While there is ever-increasing pressure on margins, it is extremely important to have the financial strength to continuously implement changes. Many facilities require investment to increase efficiency.

It is expensive to adapt or replace production equipment. Maybe the production line, which in principle should be written off after 8 years, is rebuilt to support the F-pack or D-pack. A production line that previously had a service life of 6-7 years will today perhaps only last 3-4 years.

With the new time perspectives, operational leasing is still an increasingly important tool to instead implement adjustments as operating costs to create balance.

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