Cooling down: Higher levels of consumer spending will boost industry revenue

During the five-year period to 2018, the Refrigeration Equipment Wholesaling industry benefited from the steady fall in the national unemployment rate and an increase in demand from several key markets. Over the past five years, the national unemployment rate fell. This decline, coupled with rising income levels, encouraged consumers to dine out and travel more. As a result, hotels and food service businesses generated enough revenue to invest in new refrigeration equipment. Over the next five years to 2023, IBISWorld expects restaurants and food-service operators to continue to benefit from higher levels of consumer spending, leading to higher anticipated revenue for refrigeration wholesalers...purchase to read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 13-18
1.6%
Forecast Growth 18-23
Profit
Employment
13,825
Businesses
1,641
Market Share of Companies

Industry Threats & Opportunities

  • Commercial construction activity increased, fueling sales of refrigeration equipment
  • Since most refrigeration equipment is financed by credit, the availability of credit is crucial to sales of equipment
  • Consistently electricity prices are expected to encourage supermarkets to upgrade their refrigeration
  • Industry Report - Industry Investment Chapter

    The Refrigeration Equipment Wholesaling industry exhibits a low level of capital intensity. Using wages as a proxy for labor and depreciation as a proxy for capital, for every dollar spent on labor in 2018, an estimated $0.08 is spent on capital. Capital intensity varies according to the scale of a company's operations. In general, many of the smaller operators in the industry are more labor-intensive businesses where costs (as a share of revenue) are comparatively high, due to a lack of purchasing scale. While working capital is a significant area of financial expenditure, other areas of capital expenditure include delivery vehicles, warehousing and computerized logistics and inventory systems.Operators compete primarily on service, which is not a high capital component. The...purchase to read more.

    Additional Insights for the Refrigeration Equipment Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Refrigeration Equipment Wholesaling Industry are

  • Having a loyal customer base
  • Having links with suppliers
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Demand from food services and drinking places and Value of private nonresidential construction in the Refrigeration Equipment Wholesaling industry impact industry performance..

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    What's in this report

    What is the Refrigeration Equipment Wholesaling Industry?

    Wholesalers in this industry distribute commercial refrigeration equipment, including beverage coolers, cold storage machinery, refrigerator compressors, condensing units, refrigerated display cases and drinking fountains. This industry excludes the wholesaling of residential refrigeration and air conditioning equipment. Distributors of heating, ventilation and air conditioning (HVAC) equipment are also excluded.

    Industry Products
  • Commercial refrigerators
  • Unit coolers and condensers for commercial refrigerators
  • Refrigerants
  • Supplementary commercial refrigeration equipment
  • Labor charges and sales of miscellaneous parts
  • Industry Activities
  • Cold storage machinery wholesaling
  • Commercial refrigerator wholesaling
  • Refrigerated display case wholesaling
  • Water cooler wholesaling
  • Refrigeration compressor and condensing unit wholesaling
  • Ice making machine wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from food services and drinking places
  • Value of private nonresidential construction
  • Demand from food and beverage stores
  • National unemployment rate

  • Current Performance
  • Availability of credit and regulatory incentives
  • Industry structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Energy and environmental incentives
  • Gradual demand growth from supermarkets
  • Table: Refrigeration Equipment Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Refrigeration Equipment Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Truck & Bus Manufacturing
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Refrigerated Storage
  • Hotels & Motels
  • Chain Restaurants

  • Key Selling Industries
  • Heating & Air Conditioning Equipment Manufacturing

  • Products & Services
  • Supplementary commercial refrigeration equipment
  • Commercial refrigerators
  • Labor charges and sales of miscellaneous parts
  • Refrigerants
  • Unit coolers and condensers for commercial refrigerators
  • Chart: Refrigeration Equipment Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other wholesalers and retailers for resale
  • Businesses for end use
  • Other major markets
  • Restaurants, hotels, supermarkets and food services
  • Building contractors, heavy construction and special trade contracto
  • Chart: Major Market Segmentation for the Refrigeration Equipment Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Additional expenses
  • Chart: Cost Structure Benchmarking – Sector vs Refrigeration Equipment Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Refrigeration Equipment Wholesaling Industry

  • Industry Globalization
    Capital Intensity
  • Chart: Level of Capital Intensity for the Refrigeration Equipment Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Refrigeration Equipment Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of private non-residential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Hvac
  • An industry acronym used for heating, ventilation and air conditioning; HVAC/R is used for heating, ventilation, air conditioning and refrigeration.
  • Hydrochlorofluorocarbons (Hcfcs)
  • A common type of refrigerant used in refrigeration and air conditioning systems, which is commonly known as HCFC-22/R-22.
  • Original Equipment Manufacturer
  • A company that manufactures products or components that are purchased by a company and retailed under the purchasing company's brand name.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by continuously transmitting signals from a chip.
  • Refrigerant
  • A chemical compound or coolant used to achieve low temperatures in air conditioning and refrigeration equipment.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    The Refrigeration Equipment Wholesaling Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Refrigeration Equipment Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Refrigeration Equipment Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Refrigeration Equipment Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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