Data from Harvard University points to a food manufacturing boom in the Chicago area, a century-long trend that continues to keep manufacturing jobs stable in one of America's largest metropolitan areas. Although the massive meat-packing industry isn't as prominent as it was in the early 1900s, Chicago remains a huge force in terms of factory-based foods.
Statistics
Chicago remains America's second-largest city for food manufacturing behind only Los Angeles. The Windy City has around 4,500 companies related to food and beverage production, packaging and distribution. The sector goes beyond just pure factories that make the food. There are companies that make equipment, tools and machines for food-related facilities, and wholesalers for farm products sell and distribute their wares.
More than 130,000 people have manufacturing jobs in these plants. Companies as a whole produce $32 billion in sales. Meanwhile, Chicago has moved away from meat and grains, both longtime staples of its food-based sectors, to eight total subsections of food manufacturing.
What This Means
All of these jobs are a boon to Chicago's overall economy. Even during downturns, recessions and offshoring of manufacturing positions by major corporations, food manufacturing remains a steady staple of the region's economic engine. However, with the advent of technology and health trends in American eating habits, Chicago's manufacturers face challenges.
Older and larger companies are slow to adapt to changes in American buying habits. Consumers are trending toward natural and gourmet foods, such as the gluten-free foods that made up more than $4.2 billion in sales in 2012. Food manufacturers must keep up with demand, so they must be agile enough to shift production. Skills gaps and lack of qualified employees also present a problem for companies seeking employees to fill open positions created by expansion.
Outreach
Another difficulty facing Chicago-based food manufacturing is the large amount of small companies. As many as 94 percent of Chicago's facilities belong to smaller manufacturers, and they have trouble keeping up with larger companies that have more financial backing. Smaller companies have trouble creating outreach funnels to keep jobs flowing to facilities that have work. To solve the problem with smaller companies and a lack of investment, an initiative through the Chicagoland Food & Beverage Network seeks to create avenues for inclusive job growth in Chicago.
The nonprofit network distributes money to help food manufacturers reach high school students, vocational students and college graduates. The idea is that manufacturers need people of all backgrounds and educational levels. For example, a high school graduate may work on the factory floor on a production line, but a person with a four-year degree may work as a technician for high-tech equipment used in the factories. CFBN wants to create targeted training programs for students to get them interested in higher-paying jobs while creating a tailored workforce for companies. It notes that inclusive hiring should be a priority because of the quick-changing landscape of manufacturing that relies less on manual labor and more on technology.
Chicago's food manufacturing sector remains a gem in the overall picture of America's manufacturing footprint. As such, the connections and initiatives companies create make a better situation for workers and the overall economic stability of the region.
Photo courtesy of Kevin Koltz at Flickr.com
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