Provide a paper that gives (1) an Industry Overview of the vending machine business as a whole in the United States (2) a description of the Local vending machine Market in Nashville, TN/ the Southeast and (3) market trends.
See attached document on the HVAC business as an example. Include citations similarly and include market statistics:
Industry Overview
The HVAC industry is a mature industry with a national revenue of $87.3 billion and a profit of $3.9 billion (IBIS, 2018). In the past five years, the annual growth rate has averaged 2.6%, and it is expected to grow to 2.8% in the next five years (IBIS, 2018). Rapid growth in residential building and construction is leading to an increase in the HVAC industry which is much faster than the average for other occupations (BLS, 2018). The number of new houses being built is expected to grow by 4.3% annually for the next five years, substantially benefitting both the housing market and the HVAC industry (IBIS, 2018). Employment of HVAC technicians is expected to grow by 15% between 2016 and 2026 because of the boom of new construction (BLS, 2018). Gage Reynolds, the service manager of Precision Air, a 26-year-old company located in Nashville, Tennessee, stated, This is the south. It seems like it is getting hotter and hotter every summer. Nobody is going to go without their air conditioning anymore. If you can fix it for them, great, but the real trick is getting them to like you better than the next company (personal communication, February 12, 2018). The market for HVAC companies is consistently growing. The number of HVAC companies in the country is expected to increase 2.8% annually for the next five years, but the increasing demand for residential HVAC should more than support the new companies in the market (IBIS, 2018).
Local Market
In Montgomery, Alabama, one of the major areas Next Level Heating & Air services, owners of HVAC companies operating in the revenue class of $1 million to $2.49 million make an annual profit of 12.71% as of 2017 (Biz Miner, 2017). By year 2 of operation, that is the bracket in which Next Level should be categorized. In 2017, seven other companies in the Montgomery area were collecting that amount of revenue as well (Biz Miner, 2017). A meeting was hosted by Southeast Alabama Works for HVAC industry players to come together to discuss a recent problem in the industry (Crews, 2017). This meeting took place in Dothan, Alabama, a city just outside our service area. This new problem is the level of demand in the industry is too high for the number of students exiting high school and pursuing HVAC careers (Crews, 2017). In this meeting, competitors met together to discuss a strategy to promote the valuable, profitable, and exciting nature of the HVAC industry (Crews, 2017). This report supports the increasing demand in the residential HVAC industry, particularly in Alabama.
Trends
One of the most critical trends in the HVAC industry is the gradual phase-out of R-22 refrigerant and the systems that use them (Grasso, 2016). The Environmental Protection Agency, EPA, passed regulations in 2010 to begin removing this harmful chemical from use (Service Experts, 2017). By 2020, R-22 will be banned entirely (Service Experts, 2017). Until then the price of R-22 is about $152 per pound and climbing, which is exponentially higher than its replacement, R-410A at $80 per pound (Darryl Otto, personal communication, February 15, 2018). The good news for HVAC companies is that clients that have willingly paid the higher prices to keep their R-22 systems operating will no longer have that option. They can hold out until 2020, but at that point, they will have no choice, but to replace their system with something more environmentally friendly (Service Experts, 2017).
Another trend sweeping across the HVAC industry is the new attention to Indoor Air Quality, or IAQ (EPA, 2017). The EPA defines IAQ as air quality within and around buildings and structures, especially as it relates to the health and comfort of building occupants (EPA, 2017). Large companies like Aprilaire and Honeywell are designing and marketing products to improve the IAQ in personal residences, and these products can kill mold, improve side effects of allergies, COPD, and asthma, and control humidity levels (EPA, 2017). This will particularly benefit Next Level Heating & Air because we want to make the homes of our clients as comfortable as possible, and we believe that these new products can significantly benefit their daily lives in a noticeable way.
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