Confidence in the vending industry dropped in the second quarter (Q2) of 2015. The Operator Confidence Index (OCI) decreased from 133.71 in Q1 to 128.9 in Q2 due to unstable and inconsistent hiring by locations, vending operators report.
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Emily Refermat: While operators were optimistic during the first quarter of 2015, confidence in the vending industry has slipped. Based on our operator confidence index board of industry members, the second quarter OCI number is 128.9, a drop of over three and a half percent compared to last quarter’s number of 133.7.
Unstable and inconsistent hiring by locations seems to be at the root of the drop in OCI. The downturn in the oil industry and a lack of workplaces really investing in more people and employee benefits has kept sales weaker than expected. Operators still see a positive short-term future with strong summer sales, but in the long-term, there is hesitation.
Vending was the only category to see growth this quarter. It increased 1 percent compared to last quarter to a strong 3.45. Vending sales have historically been a large core of the industry with little movement, although this quarter’s number is higher than the 3.41 it was during the same time period for 2014.
Micro markets dropped to a 3.9 index number after a substantial gain last quarter of 4.17. Operators are still installing the systems and many are excited about the boost it can give sales. However, adding micro markets into the operation takes time, as does selling them to locations. It’s an investment many operators report taking their time with.
The OCS outlook actually dropped this quarter, likely due to a warm summer. It had a similar drop last year during the same time period and overall the index number remains fairly high at 3.72.
Operators believe it will bounce back, especially if they add new lines.
After more than 6 months being above 130, the drop in OCI is to 128.9 is concerning. In order for the vending industry to bounce back, the economy will have to strengthen.
