Foodservice Equipment Reports

E&S List Prices Increases Hit Low Point In 2009 and 2010

Average list prices for equipment and supplies products rose only 1.3% for the 12-month period ending June 30, 2010, according to data from AutoQuotes Inc. The new data were presented as part of the FER President’s Preview E&S Market Forecast meeting Aug. 4 in Evanston, Ill.

David Greene, AutoQuotes managing director, European Operations, said the small average increase was the lowest annual increase since AQ began tracking prices in the 1990s. Media prices for the 7/’09 to 06/’10 period rose 2.8%.

Greene said the severe recession in E&S sales combined with plunging commodity prices last year allowed E&S manufacturers to hold or even decrease list prices. In the 12-month period ending in June, only 43% of manufacturers increased prices, while 19% actually lowered prices.

The number of mid-year price increases (i.e., the number of manufacturers raising prices more than once in a 12-month period) has ground nearly to a halt. Only 14 of the AQ roster of more than 350 manufacturers had a two-time increase in the year ending June ’10. In comparison, 64 manufacturers had two or more increases in the same period ’06-’07.

Among the product categories, only prep equipment registered a price increase above 2%. Seven of 13 categories had price increases of 1% or less and three categories—cooking equipment, coffee equipment and tabletop—saw list prices decline.

With commodity prices moving higher, Greene does expect more price increase activity from E&S manufacturers during the coming year. He said there has been an increase in the number of manufacturers raising prices in recent months.

Information on AutoQuotes products is available at  Greene’s presentation is available as part of the FER E&S Market Forecast package. See further details below.

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