Softens

market2011

S t a t E
O f  t H E  V E n D i n g
inDUStRyREpORt

StatEOftHEVEnDinginDUStRyREpORt

Recession softens,
giving a better
top line

Chart 3: MaChines by loCation, 4-year reView
● Manufacturing
● Offices
● Hotels/motels

● Elementary,middle,

● Retailsites

● Universities,colleges

● Militarybases

3.3%

1.5%
2.0%
8.0%

7.8%

2.2%0.7%

11.5%

36.2%

12.6%

33.5%

8.5%

1.1%
4.5%

3.6%
2007

7.0%
6.8%

8.3%

5.9%

33.2%

9.1%

22.4%

28.5%

1.3%
4.7%

5%

2008

26.8%

8.8%

7.3%

22.5%

1.5%

0.7%

0.9%
0.4%

9%

19.5%

● Correctionalfacilities
● Other

highschools

5%
5.8%

6.5%

6.2%
8%

homes

2009

2010

Chart 4a: staFFinG ChanGes,
3-yearreView

Chart 4b: areas where staFF
was reduCed, 3-year reView

Chart 4C: areas where staFF
was added, 3-year reView

● 2008● 2009● 2010

● 2008● 2009● 2010

● 2008● 2009● 2010

1.9%

23.5%
Added

Chart 1: industry reVenue in billions, 10-year reView
25
BILLIONS OF DOLLARS

F

● Hospitals,nursing

clubs

2.1%

Vending operatorscontinue profit protect measures;
more invest in technology By Elliot Maras, Editor

iscal 2010 brought some relief to the
vending industry as the recession
that decimated sales in the previous
two years grew less severe. While
vending operators continued to lose
sales on an aggregate basis, the dip
in 2010 was mild compared to 2008
and 2009.
According to the Automatic
Merchandiser State ofthe Vending
Industry Report, aggregate vending sales fell 3 percentage points in
2010, taking the industry to $19.25
billion, the lowest level since 1994,
which was $19.24 billion. The
3-point drop, however, was small
compared to the aggregate 15-point
fall from the prior two years.
The 18-point revenue loss in
the last three years reflected the
nation’s overall employment loss,
whichaffected every sector of the
U.S. economy. The nation’s unemployment rate since the recession
began in late 2007 reached a high
point of 10 percent in the fourth
quarter of 2009 before falling to
8.8 percent in the fourth quarter
of 2010.

● Restaurants,bars,

23.2

22.1

20

12.7%

Sales

19.85 19.25

Reduced

15

63.5%

40.9%

Delivery

28.6%

No change46.5%

Repair

% of 2010
opeRatoRS

pRojected
2010 SaleS

% of
2010
SaleS

pRojected
2009 SaleS

% of
2009
SaleS

Size
Small

under $1M

77%

$1.65B

9%

$1.51B

8%

Medium

$1M - $4.9M

15%

1.1B

6%

1.32B

7%

large

$5M - $9.9M

5%

2.38B

13%

2.83B

15%

extra large

$10M +

3%

13.17B

72%

13.2B

70%

total

$18.3Billion*

$18.85 Billion*

* oesnotinclude5percentoftotalindustryrevenueformachinesowned
D
andoperatedbylocations.
Editor’s Note: Revenue totals for individual groups were rounded off, therefore
the sums will not completely reflect the totals.

While employment improved in
2010, it remained at a historically

18 automaticMerchandiser VendingMarketWatch.comJune/July2011

low level. The employment gain in
2010 did not significantly reverse

the downward trend of the prior
two years.
High joblessness not only
reduced the number of vending customers. It also hurt the willingness
of consumers to spend money.
On the upside, many vending
operators noted high unemployment delivered a more dedicated
work force to their companies.
Operatorsalso noticed fewer
operators in the business. But they
were reluctant to cite this as a
benefit since the level of competition remained high. Many operators believed the increasing level
of investment required for vending
reduced the number of players, but

3.3%

28.6%

Repair

50%

15%
9.6%

0

Revenue
Range

50%
30.8%

3.9%

53.5%

Chart 2: operator sales

46.7%...