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SIC 3581 Automatic Vending Machines
Encyclopedia of American Industries
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2005
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COPYRIGHT 2005 The Gale Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group.
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SIC 3581
AUTOMATIC VENDING MACHINES
This industry consists of establishments primarily engaged in manufacturing automatic vending machines and coin-operated mechanisms for such machines.
NAICS Code(s)
333311 (Automatic Vending Machine Manufacturing)
Industry Snapshot
The vending machine industry generated U.S. sales of about $22.1 billion annually in the late 1990s. With significant advances in technology and innovation, the vending machine industry served numerous markets. In 2000, shipments of coin-operated vending machines by manufacturers totaled $1.24 billion, up from $767 million in 1995, though lower than shipments in both 1998 and 1999 of $1.44 billion.
The industry segments itself by the kind of service provided by the vending operator. Some of the major categories include: the 4 C's, which include coffee, club soda, candy, and cigarettes; full-line vending, which includes hot food, canned soda, and diary and frozen food; specialty vending, which encompasses such special products as pizza or french fries; OCS, or office coffee service; bulk vending, focusing on such unpackaged items as gum or nuts; and street vending, which includes music machines, video games, and other vending machines used in public places.
Organization and Structure
Vending is essentially a three-step process involving three separate industries: manufacturing companies, distributors, and vending machine operators. This industry group (SIC 358l) primarily covers the manufacturing step in this multi-stage industrial sequence.
About 90 U.S. companies produced automatic vending machines or parts for them in the 1990s. Although a vast majority of vending machines were manufactured by large companies, the industry did sustain quite a few smaller firms. The merchandise vending industry is essentially part of the small business community.
The U.S. Department of Commerce reported that 45 companies were engaged in manufacturing coin-operated vending machines in 1996. Thirty-five of the companies produced beverage machines, 27 were involved in manufacturing machines that sold food and confections, and 31 manufactured other types of vending machines, including those selling cigarettes, water, and postage stamps. As the numbers indicate, many of the companies manufacture machines for several segments. Canned and bottled soft drink machines made up by far the largest share of beverage machines manufactured in 1996, totaling 316,362 units. Among confection and food vending machines, those that sold bulk confections and charms predominated,...
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