MAFSI Reps Report 4.9% Growth In Second Quarter

The foodservice equipment and supplies market continues to grow just under 5%, according to data on the second quarter 2016 from the Business Barometer maintained by the Manufacturers’ Agents Association for the Foodservice Industry. Reps reported growth of 4.9% 2Q, compared to 2Q/2015, following a 4.8% gain in 1Q and 4.9% 4Q/15. The four-quarter moving average for the Barometer remains at 4.9%. The 2Q gain exceeded the reps’ forecast of 4.6% growth.

Growth by product category was mostly consistent with recent trends. Equipment sales grew 5.1%, up from 4.8% in the 1Q. Sales gains exceeding 5% were recorded for refrigeration and ice machines, food prep and primary cooking equipment. Sales of warewashers and sanitation equipment rose 4.8%.

Sales of durable supplies rose 4.2%, matching the 1Q increase, while tabletop sales were up 5%, down only slightly from the 1Q gain of 5.1%. Furniture sales growth fell back to 3.5% from an unusually strong 4.8% 1Q, but still well above the 2.2% average growth rate for 2015.

Among the five MAFSI regions, sales were strongest in the South, which posted a 5.5% increase. Sales were up 4.9% in the Northeast and West and 4.7% in the Midwest. Canada, where overall economic growth remains affected by low oil and other commodities prices, saw E&S sales up a slower 3.5%.

In addition to forecasting somewhat slower growth of 4.2% for the 3Q, the reps also reported less robust quotation and consultant activity. The percentage of reps reporting more quotation activity was 48% 2Q compared to a remarkable 57% 1Q. Those reporting more consultant activity fell to 45% from 48% in the previous quarter. Still the differentials between those reporting more activity and those reporting less remained very positive at 33 for quotation activity and 35 for consultant activity.

The complete MAFSI Barometer is available at mafsi.org.   “””