Furniture Segment Leads Sales Gains in MAFSI’s Quarterly Report
The MAFSI Business Barometer measured 1.8 percent overall growth in Q2/18, a slight increase from the 1.5 percent growth observed in the first quarter of the year. The growth is relatively modest, yet still signals the beginning of the ninth year of expansion for the foodservice industry, according to MAFSI.
As the industry recovered from the Great Recession, growth rates fluctuated between 3.5 and 5.5 percent annually from 2010 to 2016. Since then, the industry has settled into a new normal of growth between 1.5 and 3.5 percent and MAFSI projects that level of expansion will continue for the foreseeable future. However, MAFSI notes that a number of variables, such as the impact of tariffs, full employment, and the effects of the corporate tax cut, could impact the industry’s health. As of now, the association forecasts a 3.7 percent sales growth for the entire year.
For Q2/18, the fastest growth was reported in the furniture segment, which rose 2.3 percent from Q1/18. Equipment and supply grew by 1.8 percent, while tabletop rose 1 percent. When breaking down expansion by region, the South led with 3.2 percent growth, followed by the Midwest at 1.9 percent and the West at 1.7 percent. Canada expanded only 0.3 percent and the Northeast was flat for the quarter.
See the full Q2 2018 Commercial Foodservice Business Barometer.