Community and Economic Developers in the region know that they have an incredibly strong ally and partner in the form of Indiana Michigan Power Company, and they just got a major boost to their ongoing efforts at business attraction and expansion following completion of a significant report from a renowned consulting firm.
Indiana Michigan Power’s service area is well-known for manufacturing, agriculture and affordable energy, but now a study by Austin Consulting, a leading site selector, found the area’s strengths offer growth opportunities for food and beverage industries in Southwest Michigan, Northern and East-Central Indiana.
Cornerstone Alliance President Rob Cleveland cites AEP’s I&M unit and the Cook Nuclear Plant as “two of the strongest supporters of economic development, not just in Berrien County, but throughout its 11 state territory.” He adds, “The company truly understands the importance of its role in helping us recruit new business, and expand the businesses already here. That support is shown in the Food & Beverage Report commissioned by I&M.”
I&M sponsored the study as part of its emphasis on growing the economy and enhancing the quality of life for the communities and customers it serves.
The greatest opportunity, the study shows, is in these subsectors:
- Baking and snack food
- Dairy
- Meat and Poultry
- Beverage
The region offers numerous supply chain advantages with major suppliers of flour, oils, and potatoes as well as various types of packaging suppliers that support baking and snack food operations, according to the study.
It also specifically points to the community of Benton Harbor and Benton Township where, “There is easy access and proximity to I-94 and I-196,” which “allows a food processing company the ability to easily ship product to both Chicago and Detroit.”
From 2006 to 2016, employment in food and beverage industries within the I&M region grew by 24-percent, three times the national average. Over the last 10 years, the area’s beverage industry has exploded with a 248-percent increase in employment, driven in large part by the growing interest in local craft beer, wine and distillery businesses. Gross regional product in the food and beverage industry grew 92-percent in the area over the decade compared to 77-percent nationally.
The comprehensive, 162-page, report cites successes in the area such as Old Europe Cheese Company and it’s Reny Picot brand of top quality cheeses manufactured on Empire Avenue in Benton Harbor, and Pero Family Farms, which recently added a fresh-cut vegetable processing line to its existing cold storage and distribution operations in Benton Charter Township. That $2.7 million expansion announced in 2015 is estimated to create approximately 74 new jobs.
Also used as strong examples of the capabilities of our area are major fruit and vegetable processing companies like Burnette Foods in Hartford, Coloma Frozen Foods in Coloma, Dole Packaged Foods in Decatur, Flamm Pickle & Packaging of Eau Claire, Welch’s in Lawton, Freestone Pickle Company of Bangor, Pero Family Farms and others.
Collectively the fruit & vegetable processors accounted for 2,059 jobs in 2016 with a labor density 3.35 times the U.S. average and contributes approximately $161.2-million to the regions Gross Regional Product.
Another section of the report cites the exponential growth of the beverage industry led by folks along the Makers Trail producing craft beers, local wines and distilled spirits. The beverage sector alone increased employment by 248-percent in the decade from 2006 to 2016.
Cornerstone’s Cleveland says, “Austin Consulting has a long history of locating food processing companies, and have a well established program for a Food Processing Certified Site designation.” He adds, “The study highlighted the strong connection in Southwest Michigan to Fruit & Vegetable Processing, Dairy, and Meat & Poultry production, to name a few.” Of significance, Cleveland says, “The report also looked at the labor market as well as water and wastewater capabilities. It’s easy for us in the Midwest to forget how valuable a resource water can be. There are other parts of the country that would give a great deal to have the water resources we have at our disposal.”
Naturally, the company touts annual business costs of the region which include competitive electrical rates, noting that “I&M (markets here) have an average (annual business cost) of $7,347,389 — (which is) $1,896,771 less than that of its most expensive competitor, Des Moines. This is due to lower wages, building costs, electrical rates, and tax environment.”
It all makes for some pretty compelling arguments for the attraction of additional food and beverage players in the market as a target growth industry for our area an region.
I&M’s economic and business development professionals will be partnering with interested communities on outreach to existing businesses to identify missing value chain components and growth opportunities.
Marc Lewis is Vice President of Regulatory & External Affairs for I&M. He says, “I&M believes strongly in supporting the communities and customers we serve, and we are pleased to commission this study that shows the robust potential for success in food and beverage industries in the area.” Lewis adds, “I&M looks forward to sharing this valuable information with our economic development and community partners, and we welcome the opportunity to work with them to help grow the food, beverage and agricultural processing industry as it suits their individual communities.”
At Cornerstone, Cleveland says, “This study will help Cornerstone Alliance better identify the companies within the food processing and beverage supply chain that we have a better opportunity to recruit to Southwest Michigan.” He concludes, “We have a limited amount of resources, so studies like these allow us to better utilize those resources in order to strategically recruit new businesses.”
For the full report, click the link below and then follow the link under “Food Processing.”
https://indianamichiganed.aeped.com/what-we-do/target-industries/
