Foodservice Equipment Reports

Growth Of Top 100 Manufacturers Slowed In 2015

Last year was a very unusual year for Foodservice Equipment Report’s Top 100 E&S manufacturers. For the first time since the magazine began this annual ranking in 2008, combined growth of the largest 100 equipment and supplies manufacturing companies in the U.S. was slower than total market growth.

The Top 100 grew combined revenues 3.5% in 2015 compared to our estimate of total industry nominal growth of 4.8% last year and 4.9% average quarterly growth for the MAFSI Barometer. This sluggish growth compares with a 5.6% increase for the Top 100 in 2014 and 7% in 2013. The revised Top 100 total for 2015 was $14.223 billion, up from revised $13.745 billion in ’14 and $13.022 billion in ’13. (Because of double counting and other factors, revenues do not align with those reported in NAFEM’s biennial “Size & Shape of the Industry” numbers.)

The slowdown was driven in part by sluggish or no growth at a number of the big public E&S companies and companies tied to McDonald’s and other big chains. Eight of the Top 25 companies saw sales contract in 2015. While the Top 10 companies matched the 3.5% growth of the Top 100, the top quartile grew only 3.2%, the weakest growth of any of the quartiles. Companies ranked 26 to 50 grew revenues a combined 4%, with those ranked 51 to 75 saw sales rise 4.8%. The final quartile grew 4.5%. Other factors behind the slowdown include structural issues at several big publicly held companies, their increased exposure to international markets and the impact of the rising dollar versus other currencies.

The complete FER E&S Market Forecast, which includes eight PowerPoint decks covering the general economy; U.S. and Canadian operator and international economic and operator trends; analysis of materials and commodities trends by Lisa Reisman, executive editor at MetalMiner; the manufacturer list-price data from AutoQuotes; exclusive rankings of the Top 100 E&S manufacturers and dealers; and FER’s hard-number forecasts out through 2020, is available for $1,595. For information e-mail Robin Ashton at rashton@fermag.com or call 847/910-5163.  

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