Trends and markets: IARW Food Industry’s Return on Investment Guidelines

The IARW Food Industry's Return on Investment Guidelines provide valuable information regarding cold storage construction costs and trends in 2010. There are a number of variables that affect the cost of a project, ranging from building size to site conditions. The average size of facilities ranges from 3500 m2 in China, 4000 m2 in Central Europe, 5000 m2 in India, 6000 m2 in Latin America, 6500 m2 in Western Europe to 18000 m2 in North America. According to variables such as the construction cost per m2 and the cost of labour, the total cost to build ranges from 3.5 million USD in Latin America and 4 million USD in China to 23 million USD in North America. The 2009 economic downturn has impacted cold storage construction around the world. Cold storage construction will be likely to remain flat for the next few years in Western Europe. However, IARW anticipates moderate growth in cold storage construction in North America, Central Europe, the former Soviet Union and Russia. Moreover, an overall 10% per year expansion of cold storage capacity is anticipated in Latin American countries such as Mexico, Venezuela and Brazil. China is considered "the most promising region for cold storage construction and cold chain development". Current construction starts are up an estimated 10% and are anticipated to hold that level for a few years. Much of the development will be focused on urban areas. Source: Cold Facts, March-April 2010