Playing it cool: Downstream markets are warming up, but industry growth will be minimal

In the five years to 2017, growth in the Refrigeration Equipment Wholesaling industry has largely been driven by an increase in consumer spending and an improvement in several key downstream markets, including transportation and food service establishments. In addition, greater commercial construction from 2012 onward, including the building of hotels and restaurants, has aided industry revenue. Moving forward, the industry will experience muted growth. The trend of manufacturers becoming more involved in the distribution process, dealing directly with downstream markets, will continue to be a threat to industry wholesalers, in addition to rising steel prices affecting equipment prices...purchase to read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 12-17
2.1%
Forecast Growth 17-22
Profit
Employment
13,437
Businesses
1,664
Market Share of Companies

Industry Threats & Opportunities

  • Hotels and food service businesses generated enough revenue to invest in new refrigeration equipment
  • An expedient decline in global commodity prices helped stall purchase cost growth
  • Thin profit margins and increased competition are expected to hamper industry participation
  • Industry Report - Starting a New Business Chapter

    The industry has a medium level of barriers to entry. As with most wholesale industries, potential new entrants to the industry require moderately high levels of capital investment in buildings and other structures to establish a warehouse and distribution system. Brand loyalty among consumers is high. Customers are very aware of the brand name of key components (e.g. Thermo King for transportation refrigeration, Carrier Corporation for commercial refrigeration). Branding benefits manufacturers, as high brand loyalty enables manufacturers to easily pass along any increase in price to wholesalers. Industry operators may reluctantly accept these increases, which eat into profit margins. Bra...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 Value of private nonresidential construction and Demand from food services and drinking places 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
  • Value of private nonresidential construction
  • Demand from food services and drinking places
  • Demand from food and beverage stores
  • National unemployment rate
  • Price of steel

  • 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
    ProfitPurchasesWagesAdditional 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Value of private non-residential construction (2008-2022)

  • 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?

    IBISWorld’s Industry Market Report on Refrigeration Equipment Wholesaling is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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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