Commercial Equipment Wholesalers NAICS 423440
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Industry Summary
The 3,180 commercial equipment wholesalers in the US sell and distribute equipment and supplies used in restaurants, hotels, and retail stores, except for computers and office equipment and refrigeration units. In addition to selling equipment and supplies, firms may also provide installation and maintenance services.
Dependence on Health of Foodservice Sector
About two-thirds of the commercial equipment wholesaler industry’s revenue comes from food service equipment and supplies, so they are highly dependent on the health of the food service industry, particularly restaurants.
Smaller Equipment Footprints
Food service equipment manufacturers are developing new smaller models that combine multiple functions and take up less space.
Recent Developments
May 20, 2026 - Dishwashers Wanted
- Restaurants are facing growing operational challenges due to a severe shortage of dishwashers, a critical but hard-to-fill role, The Wall Street Journal reports. Stricter immigration enforcement by the Trump administration is reducing the available labor pool, while fewer young workers are willing to take these low-paying, physically demanding jobs. As a result, many restaurants are struggling to maintain adequate staffing levels for essential kitchen support. A survey by the National Restaurant Association found that 54% of sit-down restaurants had fewer-than-average applicants for kitchen-support positions last year. The shortage is increasing labor costs, as operators raise wages, offer incentives, or share tips to attract and retain workers. High turnover, already a persistent issue, further adds to hiring and training expenses. To cope, some restaurants are turning to automation, such as robotic dishwashers, to offset labor gaps.
- The potential decline in the number of full-service restaurants, with 9% at risk of closure this year, portends a challenging environment for commercial equipment wholesalers serving restaurants, FE&S reports. As closures outpace new openings, demand for new kitchen equipment, dining furnishings, and large capital purchases may weaken, particularly among casual dining operators. This contraction could reduce large, one-time equipment orders tied to new restaurant builds or major remodels. However, the fact that 93% of FSR operators still view on-premises dining as their strongest segment suggests existing restaurants will continue investing in maintaining and optimizing their operations, supporting replacement and maintenance-driven equipment sales. Additionally, ongoing pressure in the FSR segment may push operators to focus on efficiency, cost control, and durability, increasing demand for equipment that improves productivity or reduces labor costs.
- Despite declines in customer traffic (more than half of restaurant operators report year-on-year drops), many restaurant owners remain committed to investing in equipment, the Foodservices Equipment Distributors Association reported in November. According to FEDA, more than half (52%) of operators made a capital expenditure (equipment, expansion, or remodeling) in the past three months, and 51% plan such spending in the next six months, representing the sixth consecutive month where a majority of operators planned for capital spending. Such resilience suggests that even with traffic challenges, operators are prioritizing long-term operational efficiency and capacity upgrades. For suppliers of commercial restaurant equipment, this steady demand for capital goods could sustain sales in a choppy operating environment for the restaurant industry. It signals that restaurants are not just cutting costs, but investing strategically, potentially favoring suppliers who offer value-oriented, efficient, and state-of-the-art equipment.
- The Producer Price Index for professional and commercial equipment and supplies merchant wholesalers hit another record high in April, up 8.6% compared to a year ago, after posting a 1.3% rise in the previous April-versus-April annual comparison, according to the latest US Bureau of Labor Statistics data. Sales for professional and commercial equipment distributors jumped 15.6% year over year in February and were up 0.9% versus January. Employment by commercial equipment wholesalers shrank 0.9% year over year in March, while the average industry wage rose 9.4% over the same period to a new high of $40.55 per hour, BLS data show.
Industry Revenue
Commercial Equipment Wholesalers
Industry Structure
Industry size & Structure
The average commercial equipment wholesaler has 15 employees and generates $10.5 million in annual revenue.
- The commercial equipment wholesalers industry in the US consists of 3,180 firms with 47,854 employees and $33 billion in annual revenue.
- About 87% of firms operate a single location.
- The industry is somewhat concentrated, as the largest 50 firms represent about 57% of industry revenue.
- Large food service equipment wholesalers include TriMark USA, Edward Don & Co., Wasserstrom Co., Clark Associates, and Singer Equipment.
Industry Forecast
Industry Forecast
Commercial Equipment Wholesalers Industry Growth
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