Foodservice Equipment Reports Revises E&S Market Forecast Up Slightly

Improved sales of foodservice equipment and supplies during the second half of 2010 and a more positive outlook for operator sales next year has led Foodservice Equipment Reports to revise upward its forecasts for the E&S market in both years.

The magazine now expects E&S sales at the manufacturer level to fall a more moderate 2.4% in real terms and 3.1% in current dollars in ’10. FER previously forecast a 5% real and 5.7% nominal decline. E&S sales have fallen for three consecutive years.

“Two quarters of positive sales reports by the big public E&S companies,” (see related story below) “as well as improving numbers from the MAFSI Barometer and an uptick in operator traffic and sales lead us to believe this year will be better than we previously forecast. The market has clearly turned,” FER Publisher Robin Ashton said.

The forecast for ’11 was also raised slightly, from the original forecast done last July. “We still see moderate real and nominal growth for ’11,” Ashton said. The original ’11 forecast was for real growth of 0.9% and current-dollar growth of 1.6%. The revised forecast calls for 1% real and 2.1% nominal growth.

“Significant segments of the E&S market have yet to recover, particularly the spec markets,” Ashton said, explaining the rationale for only moderate growth.  “There is also a bit more pressure for E&S price increases as materials costs are continuing to rise.”

The magazine has incorporated into its forecast revisions the latest E&S market numbers from the North American Association of Food Equipment Manufacturers’ “Size & Shape of the Industry 2010” study released last fall.

A brief overview of the forecast will be published next month in the magazine’s annual January forecast issue. The complete FER E&S Market Forecast, a six PowerPoint deck, plus the forecast revisions and an update of critical industry data, are available for purchase by e-mailing Chris Palmer at cpalmer@fermag.com or calling the magazine at 800/986-9616. Those who purchased this year’s forecast and/or attended the magazine’s annual forecast meeting in August will be sent the update and revisions during the next few weeks.”””

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