Commercial Equipment Wholesalers NAICS 423440

May 20, 2025 - Hotel Construction On The Rise

• Hotel construction is growing, with 6,376 projects (749,561 rooms) in the pipeline at the end of March, according to Lodging Econometrics Q1 2025 US Hotel Construction Pipeline Trend Report. First quarter totals represent a 5% year-over-year increase in projects and a 6% YoY increase in rooms. There are currently 1,152 projects (145,368 rooms) under construction, up 1% by projects and 3% by rooms YoY. Notably, project and room totals in the early planning stage experienced significant growth, rising 10% by projects and 13% by rooms YoY, standing at 2,938 projects and 340,823 rooms, respectively, per the report. The top five markets for new hotel construction are Dallas (203 projects), Atlanta (166), Nashville (127), Phoenix (126), and Austin, TX (124). Hotel pipeline growth is a leading indicator of demand for commercial equipment like bar/restaurant equipment, and ice and vending machines.
• As restaurants look to optimize the front-of-house experience for customers, they’re purchasing kitchen equipment with smaller footprints to reduce back-of-house space requirements. Driving on-premise traffic will be a higher priority for restaurant operators than capturing off-premise visits this year, according to the National Restaurant Association’s State of the Industry Report 2025. During the pandemic and recent aftermath, restaurants – by necessity – focused on their take-out and delivery services. Now, according to the report, 81% of consumers say they would eat at full-service restaurants more frequently if they had more money to spend. Across segments, restaurants are prioritizing on-premise service with 90% of fine dining operators saying on-premise visits would be more important in 2025 than off-premise. Major brands – notably Starbucks and Subway – are focusing their efforts on improving the dine-in experience and make their eateries more appealing places to linger.

• Trends in the food service industry impact purchasing decisions and demand for commercial equipment and supplies, according to Foodservice Equipment & Supplies (FE&S) magazine. Trends with equipment implications for 2025 include the restaurant industry’s ongoing focus on value to draw in cash-strapped customers. Value menus, like McDonald's $5 meal deal, come at a cost to operators who must reduce their own costs to keep prices low for consumers, leading to an increased emphasis on multiuse, programmable, automated, and robotic equipment to save on labor costs, according to FE&S. Innovation in beverages and the launch of beverage-focused concepts like McDonald’s spinoff CosMc’s require cold brewing equipment and supplies, higher-end soda and water taps and dispensers, blenders, and syrup dispensers, notes FE&S. Baked goods are also trending creating increasing demand for commercial baking proofers and ovens. Equipment wholesalers that track trends are better prepared to meet customers’ evolving requirements.
• Employment by commercial equipment wholesalers grew 1.6% in March compared to a year ago, while the average industry wage was relatively unchanged over the same period at $37.16 per hour, according to the latest US Bureau of Labor Statistics data. Sales for professional and commercial equipment distributors rose 4.2% year over year in February but fell 1.4% from January, according to the Census Bureau. Inventories increased by 5.5% over the same period and are approaching historically high levels. Sales for the US commercial equipment wholesalers industry are forecast to grow at a 3.31% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to the Interindustry Economic Research Fund.