3 MIN. READ
The service industry is generally described as the sector that provides intangible help rather than products. These services companies may give directly to customers, to a business or a combination of both.
The industry can be divided into four segments; physical, intellectual, aesthetic and experiential. Each of these segments requires different types of equipment based on the service provided.
What follows is an overview of the service industry jobs that require the use of equipment.
Service Rather than Manufacturing
Economic variations affect service industries more rapidly than manufacturing. The reason for this is that companies can defer or eliminate many services when there is a downturn and quickly add them when there is an upturn.
Manufacturing in most cases takes longer for a reduction or increase in demand to appear. With record low unemployment, our domestic service industry has rapidly expanded.
Manufacturers that supply equipment for sectors like food service, car washes, transportation and hospitality are reaping the benefits.
Multiple Reasons for Growth
Domestic outsourcing has also increased the need for service equipment. Rather than hiring its own janitorial or maintenance staff, many businesses will outsource these tasks to a local service provider.
Instead of having to manage more employees, the client business simply contracts the required services. Benefits include better cost control and more staffing flexibility, which the company can easily modify to deal with changes in growth such as opening new locations or longer hours of operation.
The service provider likewise is more efficient so its staff can attend to several buildings/businesses in a single day.
Faced with these high-paced operations, janitorial service providers require vast amounts of industrial cleaning supplies and equipment.
Technology has expanded the reach of the so-called gig economy and indirectly increased the demand for service equipment. Food delivery services such as Doordash and UberEats have allowed restaurants to sell more food to people who can't visit a physical location.
This has resulted in a need for industrial kitchen and food service equipment to deal with a higher number of remote orders.
Skills distribution apps like Fiverr have given motivated people the opportunity to provide services to literally anyone.
Rather than hiring a large landscaping firm, an individual may opt to hire a local small business or sole proprietorship. In many cases these "side hustles" can end up growing to become a primary source of income and another demand point for equipment.
Companies that make aesthetic service equipment such as landscaping implements and pressure washers have all felt the boost.
Information on the Industry
Data provided by MNI, compiler of the industrial information that powers IndustryNet, shows the service industry has grown in the past year both in terms of sales and employment.
There are currently 57,287 individuals employed, which represents a 10% increase in jobs compared to the same time last year.
Over the same interval, sales are up 1.3% to the current $18.5 billion. Most of the companies that manufacture service industry machinery are in Midwest and South with 31% and 32%, respectively.
The 1,464 companies in this industry have a very large international distribution market. At 53% it is nearly double the share of the manufacturing industry as a whole.
The service industry growth explosion means there are plenty of opportunities for businesses. Get a share of the bonanza by purchasing the equipment for the job.
If you need information on every manufacturer in the sector, look no further than IndustryNet. We offer professionally compiled data on the manufacturing sector, tools for buyers and suppliers and detailed profiles on companies. IndustryNet is free to use, so start your search today!
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Article Sources:
https://www.mobilemarketer.com/news/chipotle-boosts-delivery-orders-667-with-doordash/523262/
https://www.referenceforbusiness.com/management/Sc-Str/Service-Industry.html
https://www.detroitnews.com/story/business/2018/09/16/grubhub-uber-eats-postmates-door-dash-detroit-food-delivery/1011564002/
https://www.wisegeek.com/what-are-the-different-types-of-service-industry-jobs.htm
https://workforceinstitute.org/how-to-leverage-the-gig-economy-to-boost-your-business/
https://www.bls.gov/opub/mlr/2001/10/art1full.pdf
