Commercial Equipment Wholesalers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 3,400 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 foodservice equipment and supplies, so they are highly dependent on the health of the foodservice industry.

Smaller Equipment Footprints

Foodservice equipment manufacturers are developing new smaller models that combine multiple functions and take up less space.

Industry size & Structure

The average commercial equipment wholesaler has 15 employees and generates $7-8 million in annual revenue.

    • The commercial equipment wholesalers industry in the US consists of over 3,400 firms with 52,000 employees and $26 billion in annual revenue.
    • About 87% of firms operate a single location.
    • The industry is fragmented, as the largest 50 firms represent about 48% of industry revenue.
    • Large foodservice equipment wholesalers include TriMark USA, Edward Don & Co., Wasserstrom Co., Clark Associates, and Singer Equipment.
                                    Industry Forecast
                                    Commercial Equipment Wholesalers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    May 14, 2022 - Job Growth to Spur Demand
                                    • Job growth in the leisure and hospitality sector, a leading indicator of demand for commercial equipment used in restaurants and hotels, increased in April, adding 78,000 jobs, according to the Bureau of Labor Statistics. Restaurants and bars added 43,800 jobs, while hotels and other lodging businesses tacked on 22,300. Among sectors tracked, the leisure and hospitality sector saw the largest one-month net increase in jobs, followed by manufacturing (+55,000), and transportation and warehousing (+52,000). The wholesale trade added more than 22,000 jobs in April.
                                    • Evidence suggests that the popularity of ghost kitchens will persist long after the specter of another lockdown passes, according to The Blog of the BDO Restaurant Practice. The rise of digitally-enabled ghost kitchens — typified by lean operations without an on-site dining option — was a survival tactic for restaurants during the pandemic. “Ghost kitchens’ cost efficiency and ability to tap into consumer demand make a well-managed ghost kitchen a viable investment in a restaurant industry that places increasing importance on digitalized convenience,'' according to the BDO blog. The global ghost kitchen market, estimated at $43.1 billion in 2019, is forecast to reach $71.4 billion by 2027.
                                    • Commercial equipment wholesalers stand to benefit from a projected surge in capital investment in the service sector. In a recent survey by the Institute of Supply Management, service firms plan to increase capital spending by 10.3% in 2022. Firms are looking to increase worker productivity and efficiency in efforts to operate with fewer workers.
                                    • Bankruptcies are an indicator of the health of the commercial sector and its ability to purchase equipment. Commercial bankruptcy filings decreased 25% in the first quarter of 2022 compared to a year ago, according to Epiq Bankruptcy Solutions. New Chapter 11 filings, including Sub Chapter V, decreased 43% year over year. While filings fell, analysts are closely watching small business activity and government action to make permanent the expanded eligibility limits for small businesses filing subchapter V under chapter 11 bankruptcy.
                                    • Employment in the commercial equipment wholesaler industry increased 4.2% year over year in March 2022 and was up 0.17% compared to a previous industry high set in 2020, just before the pandemic. Industry employment has generally recovered.
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