Equipment And Supplies Price Increases Remain Moderate, Says AutoQuotes

Equipment and supplies manufacturers are not raising prices very much, according to the latest data from AutoQuotes Inc., presented at Foodservice Equipment Reports annual E&S Market Forecast President’s Preview July 24. List price increases averaged only 2.2% for the year ending June 30, based on an analysis of more than 350,000 products in the AQ database. This is down from last year’s average increase of 2.7%. With most materials and commodities prices—other than food—stable or falling, large customers are resisting increases, in spite of a strengthening market, FER Publisher Robin Ashton told attendees at the meeting.

Still, increases are more broadly based than last year. The median increase was 3%, well above last year’s median of only 0.3%. Manufacturers appear to be making small increases across a broader number of products than last year, when they sought increases on some products, but left prices for many items unchanged.

Manufacturers also are not raising prices as often this year. The number of increases has fallen 20% this year from January through July, AQ reports, from 330 last year to 265 this year. Only 18 increases were posted for July, the least since the recession year of 2009 and in ’03. Last year, 34 increases were posted for July. And in ’07 and ’08, years of dramatic increases in materials costs, 64 and 59 increases were posted in July.

Most product categories have seen increases in the average 2% to 3% range, like the overall average. But cooking- and coffee-equipment manufacturers have been a bit more aggressive, with 3.7% average increases in both categories. On the other hand, increases for refrigeration products other than ice machines and beverage equipment have averaged less than 1%.

The complete FER E&S Market Forecast is available for purchase for $1,295 ($895 for past attendees and purchasers of the forecast.) The forecast package includes data and analysis of macro-economic, operator and materials-price trends as they impact the foodservice E&S market, international economic and operator trends, as well as the E&S manufacturer list-price trends from AQ. Also included are FER‘s exclusive annual rankings of the top U.S. E&S manufacturers as well as additional data, buying group analysis and a full ranking of dealers based on FER‘s annual Top Dealers Report. The merger and acquisition activity in both communities also is detailed. The package concludes with the magazine’s hard-number forecasts of E&S market growth at the manufacturer level for next year and out through ’16. For the first time, FER details individual product category growth in the long-range forecast.

For information on the forecast and how to purchase it, click here.”””