Refrigeration Equipment and Supplies

SIC 5078

Companies in this industry

Industry report:

This industry consists of companies primarily engaged in the manufacture of wholesale refrigeration equipment and supplies. Industry products include beverage coolers, refrigerated display cases, drinking water coolers, ice cream cabinets, ice-making machines, walk-in and reach-in commercial refrigerators, and refrigerated soda fountain fixtures. Companies that primarily install refrigeration equipment from their own stock are discussed in SIC 1711: Plumbing, Heating, and Air-Conditioning.

According to the U.S. Census Bureau, there were 1,296 establishments involved in the industry of wholesale refrigeration equipment and supplies in 2009. There were approximately 12,811 employees in the industry, earning a combined total payroll of around $654 million. A majority of the establishments in this industry were small, with almost half employing fewer than 20 workers and 62 percent employing fewer than 100.

In September 1995, the EPA enacted its Clean Air Act Amendment, tightening leak repair requirements for owners and operators. Nevertheless, as the economy began to improve and interest rates dropped, refrigeration equipment and supplies sales rose during the mid-1990s.

In 1999 the Environmental Protection Agency flexed its muscles by enforcing its 1992 Refrigerants Recycling regulations. First, the EPA fined New York City $50 million for venting refrigerants into the atmosphere by not removing them before crushing refrigerators and air conditioners for disposal. The EPA also enforced its anti-leakage regulations by fining GTE in California $85,000 for insufficient repair work on its refrigeration system. The agency simultaneously proposed lower allowable leakage rates, dropping the acceptable level from 35 percent to as low as 5 percent, depending on the type of system.

A poor economy during the early 1990s lowered refrigeration equipment sales. Large refrigeration equipment buyers, such as supermarkets, had trouble obtaining credit, and slim profit margins affected industry expansion. Mobile vehicle refrigeration systems sales fell from 60,070 units in 1989 to 50,800 in 1990. Sales of drinking water coolers also dropped from 984,061 units in 1989 to 886,175 in 1990.

Sales of ice-making machines rose from 195,959 units in 1989 to 200,818 in 1990, but stayed below the 243,771 units sold in 1988. Among other factors, lower sales were blamed on slow growth in the fast food restaurant industry. According to one account, about 70 percent of ice machine shipments during the early 1990s were replacements rather than new purchases. In addition to the fast food industry, which uses ice machines for soft drinks, other ice machine buyers include hospital emergency rooms, food processors, and pre-cast concrete pourers.

In 2005 the industry experienced an acute shortage of R-134a, a key refrigerant for production. The shortage was due to increased demand in a variety of uses, including commercial refrigeration, home and auto air conditioners, and insulating agents, as well as the phase-out of CFCs in 113 countries worldwide. The price of R-134a tripled as a result. In the early 2010s, organizations like the Air-Conditioning, Heating, and Refrigeration Institute continued to support efforts to find alternative refrigerants with low GWP (global warming potential).

Like most industries in the United States, refrigeration equipment wholesales suffered during the economic recession at the end of the first decade of the 2000s. According to a 2011 report by IBISWorld, challenges that lie ahead for the industry included tighter environmental regulations and a trend to bypass wholesalers. However, the report also indicated that, "Revenue will begin to revive due to improved downstream demand from restaurants and supermarkets." Slow growth in the nonresidential construction industry was also expected to help boost growth. By 2016 IBISWorld predicted industry value would decline 4.4 percent, compared to a 2 percent increase in U.S. GDP during the same time.

Industry leaders in the early 2010s included Ingersoll-Rand Industrial Technologies of Davidson, North Carolina, a subsidiary of Ireland-based Ingersoll-Rand plc, and Carrier Corp. of Farmington, Connecticut, a subsidiary of United Technologies Corp. Johnson Controls Inc. of Milwaukee, Wisconsin, was a major producer of air-conditioning equipment for automobiles and other applications.

© COPYRIGHT 2018 The Gale Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. For permission to reuse this article, contact the Copyright Clearance Center.

News and information about Refrigeration Equipment and Supplies

USPTO ISSUES TRADEMARK: ALLIED REFRIGERATION
US Fed News Service, Including US State News; March 30, 2011; 691 words
...conditioning and refrigeration equipment and supplies; business information...conditioning and refrigeration equipment and supplies, chemicals, and instruments...air conditioning and refrigeration equipment and supplies, namely, cooling...
F.W. Webb Adds Pennsylvania Location
Supply House Times; May 1, 2014; 425 words
...quality products for residential trades and fuel dealers, including propane, plumbing, heating, HVAC and refrigeration equipment and supplies. F.W. Webb Propane and Natural Gas General Manager Pete Dwyer told Supply House Times the propane and...
F.W. Webb Company Expands into Pennsylvania
Fuel Oil News; July 1, 2014; 530 words
...products for the residential trades and fuel dealers including propane, plumbing, heating, HVAC and refrigeration equipment and supplies. F.W. Webb's unique "open concept" store layout will save contractors time, allowing them to get...
Uspto Issues Trademark: Afd Supply
US Fed News Service, Including US State News; February 26, 2016; 324 words
...COMMERCE: 20160104Wholesale store services featuring industrial, commercial, and residential HVAC and refrigeration equipment and supplies; and industrial, institutional, commercial janitorial equipment and supplies. FIRST USE: 20160104...
Uspto Issues Trademark: Ur Uri.com
US Fed News Service, Including US State News; August 1, 2014; 294 words
...COM"."Goods and Services: Wholesale distributorship of warm air heating, air-conditioning and refrigeration equipment and supplies. FIRST USE: 19971231. FIRST USE IN COMMERCE: 19971231For any query with respect to this article or...
ACR Reports Fiscal Year-end Financial Results.(Brief Article)
Ozone Depletion Today; May 21, 2004; 347 words
...Houston, TX-based ACR Group, Inc., a "leading wholesale distributor of air conditioning, heating and refrigeration equipment and supplies," recently announced its financial results for the fiscal year ended February 29, 2004, reporting a...
ACR Group Reports 2nd-quarter, 6-month Financial Results.
Ozone Depletion Today; October 26, 2004; 386 words
Houston, TX-based ACR Group, Inc., a wholesale distributor of air conditioning, heating and refrigeration equipment and supplies, recently announced its financial results for the second quarter and six months ended August 31, reporting...
ACR Group Announces New Financing Arrangement.
Ozone Depletion Today; September 15, 2004; 256 words
Houston, TX-based wholesale air conditioning, heating and refrigeration equipment and supplies distributor ACR Group, Inc. recently announced it has concluded a new financing arrangement with Wells Fargo Bank, replacing...

Search all articles about Refrigeration Equipment and Supplies