FE&S sat down with Rich Packer, CFSP, for a wide-ranging discussion on the state of the industry, supply chain challenges and more. Oh, and we managed to squeeze in a little dialogue about The NAFEM Show 2023, too.

Rich Packer, CFSPDuring the fall months you were able to attend several industry events, including conferences hosted by CFESA (Commercial Food Equipment Service Association) and FEDA (Foodservice Equipment Distributors Association). What’s the mood like among the members of the supply chain?

I am seeing people with a lot of fears, but those fears are being tempered by how excited they are to be together. We have the ‘great reopening’ being offset by the fears associated with whether we are in a recession. They are happy to be together, but they also know some tough times are coming.

What’s some of the feedback you’re getting about the state of the industry from your company’s customers?

I am intrigued by the level of dialogue we are having today that we have never been able to have before. It feels like we’ve been able to have more open and thought-provoking conversations. And that’s because, of all we’ve been through the past two years, our guards are down, and we are able to communicate a little bit better with each other.

That sounds like a positive thing.

Absolutely.

Some dealers have said that transparency is greater than it has ever been. They are asking factories more questions about how they source items, manufacture them and more.

You go back to three or four years ago, the conversations we had with customers were a lot different than what we are having today. Back then, a customer would have asked us when an order was due to arrive. Now the conversation focuses more on the entire cycle. We’ve opened up that dialogue quite a bit.

Does the fact that both sides are sharing more ultimately make the supply chain stronger?

It does help the supply chain, and the more we communicate, the better we can be.

We’ve talked about how things are among dealers, service agents and other members of the supply chain. How’s the mood among NAFEM members?

The membership is excited about the show coming up. They are excited about moving forward with business. They are nervous about legislative and regulatory challenges and issues coming down the pike that could cause some significant limitations on the equipment side, specifically in refrigeration and ice machines. As an organization, we are increasing our efforts to give our current team the support it needs to advocate for our members and the industry. We can continue to talk and put pressure on lawmakers and regulators, but we need more voices on the street. NAFEM will host its June 2023 board of directors meeting in Washington, D.C., to start that push. Having our board out there to have those conversations is a positive.

For the first time in NAFEM’s history, there has been a four-year gap in between shows. Does that add to the excitement? Do NAFEM members feel extra pressure to have a good show?

No, because the pressure is always on to have a good show. Former NAFEM president Rob Connelly of Henny Penny once said the only thing worse than no show is a bad show. That contributed to our decision to cancel the 2021 show. Once it goes bad, you are in trouble. I have served on NAFEM’s Trade Show Advisory Council for 10 shows and chaired two of those shows. I’ve been in those show planning meetings and know the pressure we put on ourselves to make sure the show is of value to all. The show is the lifeblood of our organization, too. So having a good show is incredibly important for both the industry and the association.

That pride of ownership the NAFEM members have is what differentiates The NAFEM Show from other industry events. This show is different because it’s run by NAFEM member companies.

There are a few things that really stand out to me about The NAFEM Show. One, there’s no food. It’s strictly equipment and supplies focused. That in and of itself is a huge thing for our attendees because it really allows them to focus on equipment and supplies. And if you look at our show, it’s the principals from each company in every booth. They are there to have a dialogue. It’s incredibly open. I love being able to walk through the show and see all of my peers.

Any changes in store for The NAFEM Show in 2023?

The biggest change is the part of the exhibit labeled “What’s Hot! What’s Cool!” has been replaced by @CenterStage. It will consist of panel presentations on specific segment trends in a format similar to TED Talks. There will be anchor-desk-style reports, too.

The show itself has not had much in the way of educational sessions like this in quite some time. What prompted the change?

The need to have some educational content at the show was something of a gap for us. We never wanted to take people off the show floor. So it will be on the show floor, but it will not be running continuously. You can add presentations of interest to your schedule. And, by the way, it’s surrounded by NAFEM member company booths. It’s our way of bringing additional educational content to the show but keeping it on the show floor. When we survey attendees, education is always something they value and ask for. And if you don’t continue to evolve and create additional value, then the show will suffer at some point.

This year’s show has a slightly different date pattern than previous shows, doesn’t it?

Yes. The NAFEM Show 2023 runs Wednesday, February 1, through Friday, February 3. We’re Wednesday to Friday in 2025 in Atlanta, then Thursday to Saturday in 2027 back in Orlando. In 2029, and beyond, we’re Wednesday to Friday permanently. The reason we are switching the date pattern is, as the world has changed the past 20 to 30 years, weekends have become what they should be: family time. So, we are trying to not have the show fall over a weekend whenever possible.

Supply chain issues have really been a hot topic the past couple of years. Any signs of improvement that you’re seeing? What are your members telling you?

Container costs have gone down considerably. That’s a huge benefit to the industry that can help alleviate some of the challenges. The ports are moving better, too. But the access to components, electrical components in particular, is still a challenge. I’ve talked to several of our members, and they are still struggling to get those things. And that might not get better for a while.

What’s the outlook from the manufacturers’ perspective for 2023?

In 2023, growth will be slow. The biggest challenge we will face is labor, and I don’t know when that is going to go away. We are all struggling to find the right people. This is by far our biggest challenge.

As you look forward to 2023, what’s one thing that excites you about the industry?

I think in 2023, we are going to feel more normal than we have in a long time. It’s a normal industry calendar once again. It’s normal travel. It feels comforting. What used to drive me crazy was the 20 different trips I had to take. I am now looking forward to taking those 20 different trips. Being with people and seeing people is exciting.