Not only is construction buoyed by the fact business is good, more and more food processing companies are building plants to manufacture specialty items and closing their huge multi-purpose facilities.

"By constructing a plant for your specific needs, the company can concentrate on, and tailor the facility to, that item," said Ron Vallort, P.E., vice president of architecture and engineering at the Haskell Co., one of the nation's leading design-build firms. "It then becomes easier for the company to justify and receive capital funds for constructing the plant."

Among the many projects the Haskell Co. recently has completed is a 175,000 square foot facility for Quaker Oats in Louisville, Ky. The factory was built to produce ready-to-bake biscuits for the fast food industry. The plant layout provides for receipt of raw material at a central tank farm, a major mixing room, processing and baking, spiral freezers, packaging, and a finished product freezer.

I & K Distributors, a manufacturer and distributor of wet salads, pizzas, Amish noodles and mash potatoes for Boston Market restaurants, recently expanded the back end of its Delphos, Ohio, distribution facility by 30,000 square feet to accommodate 6,000 pounds of mash potatoes.

The company ships over 200 products nationwide on its own fleet of trucks "faster than United Parcel Service (UPS)," said Ron Klausing, I & K president. Among the shipments, 1.2 million pounds is shipped per week to Boston Market distributors.

"If we end up with another mash potato account, we will open another plant," Klausing said.

The quality of water (excessive lime deposits) and sewage is inadequate in Delphos where I & K uses 70,000 gallons of water a day. But while the home-grown company could move its operations to another location where these are not an issue, the company is content with its location.

"We are committed to the community," he said. "The people are hard working and the old German work ethic is excellent here."

Instead, Klausing wants to automate the factory more so that he can hire more skilled workers at a higher wage.

"It's tough to find people who will work for $7 an hour and pass our drug test," he revealed.

Nasoya Foods, Inc., a Leominster, Mass., producer of soy-based food products, found increased consumer demand for tofu and soymilk necessitated the company to acquire additional production space.

A three-year search turned up two desirable sites: an abandoned building formerly used by the New England Shrimp Co. in Ayer, Mass., and a facility in Upstate New York. Corporate executives found it attractive because the facility could be easily configured for making tofu and soymilk. It was also only 10 miles from Leominster.

To assist, the Massachusetts Office of Business Development helped the company negotiate a purchase price of the Ayer facility. The Commonwealth's Economic Development Incentive Program offered a 10 percent abandoned building tax deduction and a 5 percent state investment tax credit for tangible, depreciable property.

California is not only among the leaders in food processing, it has been a top exporter of U.S. foods for nearly 50 years. In 1995, the latest financial data available, California shipped $47.9 billion worth of processed food products worldwide.

Agriculture there represents one in every 10 jobs in the state and one in three jobs in the Central Valley. In fact, California is considered the most diversified agricultural economy in the world, producing more than 250 crop and livestock commodities.

Speaco Foods Inc. of Kansas City, Mo., recently purchased a 44,000 square foot facility in Lodi, Calif., formerly used by General Mills to produce a specialty line of its vinegars. The plant is the company's fourth U.S. processing and bottling facility. Not only did the West Coast market bring the company to California; the site's interstate access were important factors for locating in Lodi.

An additional plus, the company is being granted a 10 percent discount for electric usage, a benefit offered to all new companies relocating or expanding in Lodi.

Some companies that want the benefits of having a Western location, along with access to the Southern California and Mexico markets without being actually located in California, have made Arizona their home.

Lisanti Foods, a New Jersey processing company of quality pizza items such as cheese and meat, recently invested $5 million in a facility in Talleson outside of Phoenix, a move that created 60 jobs. Holsum Bakery spent $3 million to expand its operation in Phoenix.

"One of the benefits these companies see to being located in Arizona is our great transportation system for air, rail and truck," said Don Harris, a spokesman for the Arizona Department of Commerce.

For one, most produce from Mexico enters the U.S. through the Nogales Customs District. Containers and cartons are produced locally, and the Los Angeles market is within a day's haul. Interstate highways I-8, I-10, I-40, I-17 and I-19 traverse Arizona. The Burlington Northern Santa Fe, Union Pacific, and California-Arizona railroads provide transcontinental and intrastate freight service.

"As to the myth that Arizona is running out of water: we have plenty due to the Central Arizona Project, which pulls an adequate supply of water from the Colorado River," he added.

The food, fiber and natural products industry is one that the state is currently targeting. The state already has a solid foundation in this group. According to Commerce figures, Arizona produces enough beef to feed 7 million people each year. Arizona is also a leading producer of citrus. Citrus is grown on nearly 45,000 acres in the state.

Looking toward the Midwest, the Directory of Indiana Food Processing and Related Industries counts over 500 food processing, manufacturing and services equipment companies in Indiana. PYA/Monarch, Inc. of Greenville, S.C., decided to join their ranks in July by locating its Midwest distribution center in Bloomington. The company, a subsidiary of the Sara Lee Corp., will invest $23.7 million in the facility and create 365 new full-time jobs.

To assist, the company was offered a $175,000 "Training 2000" grant, $165,000 infrastructure grant and Economic Development for a Growing Economy tax credits up to $1,440,672.

The South is especially known for food processing.

In Arkansas, more than 20 percent of the manufacturing work force is employed in the business. With companies like Tyson, the state is the No. 1 chicken producer in the nation. To attract more business, the entire state has been designated an Enterprise Zone, meaning tasty tax breaks.

Frito-Lay, Inc., recently began operation at its first manufacturing plant and distribution center in Jonesboro, Ark. The company chose the site because of the area's economy and location near growing markets.

Last year, Frito-Lay also added 300 workers to its acquired snack food manufacturing facility in Fayetteville, Tenn. The company is producing Lay's and Ruffles Potato Chip, Doritos and Tostitos Tortilla Chips there. Frito-Lay also runs a plant in Pulaski.

Fulton County, Ga., a state often known for peaches, peanuts and Coca-Cola, has attracted a $50 million investment by Quaker Oats where it will bottle its Gatorade and Snapple drinks.

"The Southeast has historically been a Gatorade stronghold, and we anticipate good growth for both Gatorade and Snapple," says James F. Doyle, executive vice president of Quaker's beverage division.

Aquaculture is also being promoted in Maryland. The state's big news is the investment by Chestertown Foods in a former Campbell Soup Co. facility, which shut down less than a year ago. To help with the $4.9 million bill to acquire and refurbish the plant, the state has offered a $1.5 million low-interest loan from the state's community development block grant program.

"Since 1990, our exports have doubled, with most exports going to the United States and Mexico," says Jim Slobodzian, investment promotion consultant for Manitoba Trade and Investment Corp. "Whereby we had only a few companies exporting to Mexico, we now have 40."