This industry classification is comprised of establishments primarily engaged in the wholesale distribution of commercial machines and equipment, not elsewhere classified. Products of the industry include commercial cooking and food service equipment, partitions, shelving, lockers, store fixtures, electrical signs, balances and scales (except laboratory), mannequins, and vending machines.
421440 (Other Commercial Equipment Wholesalers)
The commercial equipment, not elsewhere classified industry was valued at an estimated $13 million in 2003. There were 9,516 establishments, with about 69,425 employees in 2003. This segment is part of the professional and commercial equipment and supplies market, which made up 23 percent of the entire wholesale distribution of durables in 2003, totaling $1.9 million. Two key lines of business characterize the industry: restaurant and hotel equipment, and store machines and equipment. Restaurant and hotel suppliers produced about 54 percent of the industry's sales versus store machine wholesalers' about 22 percent share. Sales in the hospitality side of the industry have generally grown faster than those of the store equipment segment.
The industry employed approximately 53,002 workers in 2001, with an annual payroll totaling slightly more than $2 million. According to the U.S. Census Bureau, the industry had approximately 5,071 establishments in 2001, down from 5,152 in 2000. Overall, the majority of the establishments were small. In 2001, 1,973 companies had fewer than 5 employees; 1,013 companies had between 5 and 9 employees; 743 had between 10 and 19; 640 had between 20 and 99; 198 had between 100 and 499; and 155 had 500 or more employees. The majority of establishments were in California and New York.
In the late 1990s, domestic restaurant chains and their suppliers increased their presence overseas. Unit openings in Europe and elsewhere by restaurant chains were expected to be twice that as in the United States. Since these restaurants prefer American equipment, this growth offered opportunities for both manufacturers and distributors. Distributors supporting overseas markets must be able to handle post-sales service requirements, local order fulfillment, and language barriers.
Sales of store fixtures increased dramatically during the 1970s and the 1980s, but stalled during the first years of the 1990s. Growth was attributed to the number of shopping malls under construction during the period. According to the report, the number of shopping malls in the United States had increased from 3,500 in the mid-1970s to about 35,000 in the early 1990s. As a result, the combined value of wood and nonwood store fixture shipments went from $1.75 billion in 1975 to $6.19 billion in 1990. As the construction of retail outlets slowed and overall economic growth lost momentum, demand for industry products leveled off.
During the mid-1990s, suppliers of store fixtures expected growth to come from three areas: renovations necessitated under the provisions of the Americans with Disabilities Act; government requirements; and vendor shops—distinctive spaces within retail establishments devoted to specific products. These three areas, however, were not expected to provide growth as dramatic as had been experienced during the previous two decades. By the late 1990s, wholesalers faced competition from manufacturers as they began selling via the Internet. For instance, St. Louis-based NU-ERA Group developed an online catalog and Newark, New Jersey-based HandyStore Fixtures, Inc. offered more than 2,000 store fixtures for sale on their Web site.
The majority of firms that distribute miscellaneous commercial equipment in the United States are typically quite small. Leading firms by revenues in the mid-2000s, most of which were restaurant and hotel suppliers, included Gordon Food Service Inc. of Grand Rapids, Michigan; Performance Food Group Co. of Richmond, Virginia; SYSCO Food Services of Walnut, California; International Dairy Queen Inc. of Minneapolis, Minnesota; Golden State Foods of Irvine, California; and Nobel (subsidiary of Sysco Food Services) of Denver, Colorado.
D&B Sales & Marketing Solutions, 2003. Available from http://www.zapdata.com .
Hoover'sCompany Profiles, 2004. Available from http://www.hoovers.com .
U.S. Census Bureau. Statistics of U.S. Businesses 2001. Available from http://www.census.gov/epcd/susb/2001/US421420.HTM .
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