Heating up: Improving downstream demand will boost revenue, but rising imports will threaten margins

The Commercial Cooking Equipment Manufacturing industry has been both hot and cold over the five years to 2018. Over this five-year period, industry operators have struggled to generate consistent revenue growth even amid economic growth. Prior to the five-year period, demand for commercial cooking equipment tanked as consumer spending and corporate profit remained low. Additionally, foodservice establishments withheld extra spending on cooking equipment due to sluggish economic activity. However, strong economic performance over the five-year period stimulated demand for industry products, stimulating industry revenue. Industry operators will likely experience many of the same challenges over the next five years, although the role of import-based competition will diminish slightly. A...purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
1.7%
Forecast Growth 18-23
Profit
Employment
8,702
Businesses
242

Industry Threats & Opportunities

  • Alongside industry revenue growth, the number of enterprises has grown tepidly
  • Operators have increased their capital spending to focus on automating their production lines
  • The evolution of restaurant dining is expected to fuel the industry’s growth
  • Industry Report - Industry Analysis Chapter

    The Commercial Cooking Equipment Manufacturing industry has grown moderately amid an uptick in equipment replacements and upgrades by foodservice establishments over the past five years. During periods of economic growth, restaurants and other end users of commercial cooking equipment ramp up their capital spending on cooking equipment to replace older models in disrepair, construct new dining facilities or comply with various safety and energy requirements. Consequently, industry revenue is expected to grow at an annualized rate of 1.7% to $3.3 billion over the five years to 2018, as the industry’s typical customers show improving interest in pursuing major capital projects. Whi...purchase to read more.

    Additional Insights for the Commercial Cooking Equipment Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Cooking Equipment Manufacturing Industry are

  • Automation reduces costs, particularly those associated with labor
  • Having a good technical knowledge of the product
  • Provision of superior after sales service
  • IBISWorld analysts also discuss how external factors such as Demand from food services and drinking places and Consumer spending in the Commercial Cooking Equipment Manufacturing industry impact industry performance..

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    What's in this report

    What is the Commercial Cooking Equipment Manufacturing Industry?

    This industry manufactures commercial cooking equipment for end consumers such as restaurants, hotels and military establishments. Products the industry manufactures include coffee makers, fryers, microwaves, ovens and ranges, corn poppers, stoves, warmers, hot plates, steamers and water heaters. Enterprises that manufacture commercial dishwashers, refrigerators, laundry dryers and washing machines are not included in this industry.

    Industry Products
  • Primary cooking equipment
  • Serving, warming and storage equipment
  • Industry Activities
  • Manufacturing commercial fryers
  • Manufacturing commercial microwaves
  • Manufacturing commercial ovens
  • Manufacturing commercial ranges
  • Manufacturing commercial steam cookers
  • Manufacturing commercial deep-fat fryers
  • Manufacturing commercial coffee makers and urns
  • Manufacturing commercial hot plates
  • Manufacturing commercial stoves
  • Manufacturing commercial food warming equipment
  • 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
  • Consumer spending
  • World price of steel
  • Corporate profit
  • Trade-weighted index

  • Current Performance
  • Consolidation
  • Automation intensifies
  • Imports and exports rise
  • Chart: Revenue Growth

  • Industry Outlook
  • Foodservice evolution
  • Exports and imports
  • Industry employment
  • Table: Commercial Cooking Equipment Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Cooking Equipment Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Hotels & Motels
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Food Service Contractors
  • Coffee & Snack Shops
  • Fast Food Restaurants

  • Key Selling Industries
  • Electrical Equipment Manufacturing
  • Hose & Belt Manufacturing
  • Laminated Plastics Manufacturing
  • Polystyrene Foam Manufacturing
  • Steel Rolling & Drawing

  • Products & Services
  • Primary cooking equipment
  • Serving, warming and storage equipment
  • Other
  • Chart: Commercial Cooking Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Household income
  • Price of equipment
  • Input costs

  • Major Markets
  • Equipment and supplies dealers
  • Exports
  • Other
  • Foodservice distributors
  • Online retail
  • Institutions and restaurants
  • Chart: Major Market Segmentation for the Commercial Cooking Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Cooking Equipment Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Cooking Equipment Manufacturing Industry

  • Industry Globalization
    Illinois Tool Works Inc., Welbilt Inc., Middleby Corporation,
  • Table: Illinois Tool Works Inc. - financial performance
  • Table: Welbilt Inc. - financial performance
  • Table: Middleby Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Cooking Equipment Manufacturing 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 Commercial Cooking Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Demand from food services and drinking places (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Chain Restaurants
  • Restaurants owned and directly operated by a single company
  • Fast-Casual Restaurant
  • A type of restaurant that does not offer full table service, but promises a higher quality of food and atmosphere than a fast food restaurant
  • Full-Service Restaurant
  • A food establishment where customers can be served their meal at a table, receive waiter or waitress services and typically pay at the end of the meal
  • Quick-Service Restaurant
  • A specific type of restaurant characterized both by its fast food cuisine and by minimal table service
  • 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 releasing continuous signals from a chip
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Commercial Cooking Equipment Manufacturing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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 Commercial Cooking Equipment Manufacturing:
    • 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 Commercial Cooking Equipment Manufacturing 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 Commercial Cooking Equipment Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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