California refrigerated food processors relocate to the Midwest.

California refrigerated food processors relocate operations to Midwest.

California refrigerated food processing companies now are searching for refrigerated buildings to for sale or to refrigerated buildings to lease an existing refrigerated food processing plant within the Midwest. A number of motivating factors have developed as a result of the current economic climate that have caused refrigerated building real estate searches for existing refrigerated food processing facilities or refrigerated buildings that are for sale or for lease or sublease.

The primary reason that California and other West Coast based food processing companies began searching to purchase or lease refrigerated food processing building locations in the Midwest is that the cost of transportation of their finished products to the massive consumer markets along the Atlantic seaboard, and in particular the Northeast. The price of diesel fuel has never gone down. However as consumer demand and income has remained constant over the last four or five years there has been a reluctance to accept price increases and in particular food prices increases. Food processing companies continue to reduce their manufacturing costs to avoid price increases of their refrigerated products. Some refrigerated food processors are now looking to relocate their refrigerated buildings to further reduce their cost of food manufacturing.

A Midwest refrigerated food processing plant would make significant reductions in their transportation costs associated with the delivery of food products to the Northeast, as compared to transportation costs from California to the Northeast.

The Midwest provides a better logistical platform to acquire commodities used in refrigerated food processing operations. Further the purchase price or lease rental rates of a refrigerated building in the Midwest are significantly less when compared to California are other West Coast locations.

Hawk Distribution Services LLC ( http://www.hawkds.com/ ) provides refrigerated building real estate brokerage services in the Midwest. The St. Louis, Missouri and Kansas City, Missouri real estate brokerage offices offer only refrigerated food processing buildings or freezer and cooler warehouse buildings for sale or lease. To learn more about refrigerated food processing or warehouse buildings available in Missouri, Kansas, Indiana, Illinois contact Jim Cronin at 314-994-0577 or j.cronin@hawkds.com