Vending Machine Operators NAICS 445132

Mar 21, 2025 - Tariffs Expected to Push Costs Higher

• According to Vending Market Watch, new tariffs imposed by the Trump Administration could drive up food prices for manufacturers, which could have a trickle-down effect on the vending industry as manufacturers absorb the higher costs. President Donald Trump has enacted numerous tariffs including 20% tariffs on imports from China, a 25% tariff on imported steel and aluminum, and 25% tariffs on imports from Canada and Mexico expected to roll out fully in April. Categories affected by the tariffs include fruits and vegetables, grains, sugar, tree nuts, coffee, soda, and livestock. Major US food companies including PepsiCo, J.M. Smucker, and Conagra have petitioned the Trump Administration for specific tariff exemptions on imports of cocoa, coffee, spices, and tropical fruits, which are essential to products but not produced domestically. The Consumer Brands Association, which represents the companies, said a tariff exemption would help manage manufacturing costs and reduce the impact on consumer prices.
• According to a report in CFO Dive, consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”

• Hotels continue to invest in grab-and-go markets and vending machine options to streamline their food and beverage offerings for customers, according to a recent Hotel News Now report in CoStar. Hotels have boosted these options to bring customers convenient food and beverage options and better compete with food delivery services. Many of the grab-and-go pantries, which often include ready-to-go meals, specialty coffees, alcoholic beverages, and snacks, have a self-serve checkout option, which meet guests’ preferences for contactless service without any additional hotel staff required. According to Brick Hospitality COO Sarah Lynch, data indicates that 60% of lobby market purchases occur between 7 p.m. and 7 a.m., when hotel staffing is typically reduced. She noted, "Implementing self-checkout kiosks allows our guests to make purchases conveniently at any time, enhancing their experience and increasing operational efficiency.”
• US office vacancy rates fell to 18.9% in the fourth quarter of 2024 compared to the previous quarter, according to real estate firm CBRE’s 4Q office report in Facilities Dive. The US office markets tracked by CBRE in Q4 saw positive net absorption, with 10.3 million square feet of net absorption. The net absorption was the highest quarterly total in three years. The report cites stronger demand for high-quality space in prime locations during the period while commodity buildings continued to draw limited tenant interest. Workplace occupancy levels are a demand indicator for vending machine operators.