2011 Equipment Sales

[rph9168]

The ICA has released their 2011 Equipment Sales figures.

Interesting to note that while Friction Automatic sales were up almost 90% (92,985M) Touch Free were down almost 17% (55,848M) Total Sales (113,494M). Self Service was up 9% (17,411M). Tunnels were up 12.2% (92,985M). Overall equipment sales were up 7.5 % (223,890M).

PDQ, Belanger and MacNeil did not participate so the figures may be a little low.

 

[smokun]

Insight? Nothing New.

Numbers and their statistical byproduct have been created to lend a sense of value to the information purveyors. Absent a more comprehensive tally and impartial oversight, they can tell whatever story you wish to hear.

 

[rph9168]

To a certain extent I agree with you Steve but since these are the only figures we have we have to make the best of it. At least the ICA is trying to provide more information on the state of the industry.

I thought the most interesting point was the automatic numbers. While the over all sales indicated only a small increase the trending within the category towards friction and the decrease in sales in touchfrees was very revealing. It would have been interesting if all the manufacturers had submitted figures to see if that would have held up.

 

[robert roman]

The increase in sales should be taken in context. For example, it has taken nearly five years for carwash equipment spending to recover to previous levels.

So, the percent increases aren’t a sign of growth but rather a signal the precipitous decline in equipment spending may be over. In 2005, carwash equipment spending estimate was $582 million.

Another useful and telling statistic from ICA would be equipment sales in units, installs versus reload.

 

[soapy]

PDQ and Belanger are probably the 2 biggest suppliers of touchless equipment IMO. I think the survey would therefore favor the reporting of friction machines taking over when that may not be the case. Ryko is probably the largest friction machine supplier and they reported in the ICA survey.

 

[rph9168]

As big as the discrepancy is I doubt that touchfree would pass friction because both of those also sell friction automatics as well but it would obviously be a lot closer.

 

[robert roman]

The big three in sales today are thought to be PDQ, Sonny’s and WashTec AG.

Friction in-bays have been gaining share relative to touch-free since 2005. This was driven by higher cost to purchase and operate touch-free and improvements in friction technology.

Today, demand for friction is a function of increasing consumer demand (better quality, faster) and lower water consumption - reclaim is harder to get right with touch-free.

Considering market size and industry demand drivers, the needs of the gas station and convenience store industry will probably dominate in-bay trends for the foreseeable future.

Since the self-service industry is not growing, the trend towards friction in-bay should continue.