Interesting Development in Food Equipment Manufacturing World

Implications: Food equipment manufacturing is a growing market that several years ago was very fragmented. It is getting to be more consolidated now. Initially, a UK group Enodis was very carefully and successfully acuiring various European, UK, US and Asian based food equipment manufacturers. Now it is being purchased by a US based Manitowoc Company, part of which is manufacture commercial ice making machines and beverage systems. This fact is very interesting and deserves special analysis.

Analysis: Food equipment manufacturing market is being conolidated. If eight years ago we had Garland, Convotherm, Lincoln, Wellbuilt, Frymaster, Scotsman, Ice-O-Matic, Jackson, MerriChef, NewTon, etc., yesterday we had one consolidating name Enodis, which is being changed to Manitowoc.
On one hand, the food equipment manufacturing industry is labor and material intensive, it has very tough standards, warranties, and uses a lot of special grade stainless steel.

On the other hand,  in the everyday world, the clockless living, lifestyle and career options are changing traditional eating patterns driving expansion to 24-hour operation to meet consumers’ needs with the knock-on effect on equipment usage levels and life cycles.
Health is becoming increasingly important, particularly with respect to issues such as trans-fats.

Consumer food safety concerns are requiring operators to update their equipment to meet stringent safety levels. In addition to these health and safety drivers, food and beverages must continue to appeal to our senses including sight, taste, smell and general ambience. 

Convenience – time pressured consumers rely on eating out as an alternative to cooking. Increasingly they are looking for faster service and the ability to “take-away” which require convenient and easy to find locations. It is estimated that with emerging economies of China, India, Russia and Middle East, production of food and beverages will reach US $3,000 Billon mark. It will require increase in production of the food service equipment.

Apparently, part of the Manitowoc Group, i.e. Manitowoc Crane Group operates in global environment and is familiar with the growth issues of emerging economies.

The potenial of commercial food equipment and its various derivatives is also known to its Food Service Group specializing in commercial ice makers and beverage system. With all of the technologies owned by Enodis and its subsidiaries on one hand, global market reach and cfatsmanship in manufacturing of Manitowoc products on the other hand, this acquisition makes Manitowoc Company one of the global leaders in Food Equipment Manufacturing field.