NAICS 312113 Quarterly Industry Report
Ice Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 312113Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 312113 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the ice manufacturing sector, drawing on data from the U.S. Census Bureau[5] and SBA lending records. Additional data is drawn from Bureau of Labor Statistics[8].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 312113 establishments, enabling informed decisions for buy-sell agreements, territory acquisitions, SBA-financed purchases, and litigation support engagements.
Industry Snapshot
Key metrics for the ice manufacturing industry.
Industry Definition & Overview
Ice Manufacturing (NAICS 312113) encompasses establishments primarily engaged in manufacturing ice for sale, including packaged ice, block ice, and specialty ice products. This sector serves a diverse customer base spanning convenience stores, grocery chains, restaurants, hospitals, fisheries, and industrial applications. According to the U.S. Census Bureau[5], the industry comprises approximately 200 active establishments generating combined annual revenues approaching $1 billion, with significant regional concentration in warmer climates where year-round demand supports higher use rates.
The industry operates on a route-based distribution model where manufacturers deliver directly to retail and foodservice accounts using company-owned refrigerated trucks. This distribution-intensive model creates natural geographic barriers to entry, as transportation costs limit the economical delivery radius for each production facility. The SBA Office of Advocacy[6] notes that small ice manufacturers maintain viable businesses by serving local markets where national competitors lack distribution density, particularly in rural areas and seasonal resort communities.
Regulatory oversight includes FDA[7] food safety standards treating ice as a food product, requiring compliance with Current Good Manufacturing Practices, water quality testing, and facility sanitation protocols. State health department inspections, water source testing, and food handler certifications apply to all ice manufacturing operations. Energy costs represent the single largest variable expense, as continuous refrigeration and freezing operations consume substantial electricity, making utility rate negotiations and energy efficiency investments critical to maintaining competitive margins.
What's Included in This Industry
- Valuation multiples benchmarked to ice manufacturing and distribution companies
- Revenue and EBITDA trends for packaged and block ice producers
- SBA lending data and financing terms for NAICS 312113
- Comparable transaction data from recent ice industry consolidation
- Industry risk factors including energy costs and seasonal demand volatility
- Workforce composition and labor cost benchmarks for route-based operations
- Regional market concentration analysis reflecting climate-driven demand patterns
- Distribution route analysis covering retail, foodservice, and industrial channels
- Growth projections tied to convenience store expansion and foodservice trends
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Beverage and Tobacco Product Manufacturing | 312 |
| Industry Group | Beverage Manufacturing | 3121 |
| NAICS Industry | Soft Drink and Ice Manufacturing | 31211 |
| National Industry | Ice Manufacturing | 312113 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 312111 | Soft Drink Manufacturing | Soft drink manufacturers sharing convenience store and foodservice distribution channels, with ice often merchandised alongside cold beverages at retail |
| 312112 | Bottled Water Manufacturing | Bottled water manufacturers using similar water purification systems and serving overlapping retail and foodservice customers through comparable distribution models |
| 333415 | Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing | Air conditioning and warm air heating equipment manufacturers producing industrial refrigeration and freezing systems used in ice production facilities |
| 312120 | Breweries | Breweries requiring large volumes of ice for production cooling and sharing overlapping foodservice and convenience store distribution accounts |
| 424490 | Other Grocery and Related Products Merchant Wholesalers | Other grocery product wholesalers distributing packaged ice alongside beverage and food products to retail and foodservice accounts |
| 445110 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | Supermarkets and grocery stores representing major retail accounts for packaged ice through self-service freezer merchandising at store entrances |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 10.2% | 39 |
| 2 | Florida | 8.4% | 32 |
| 3 | California | 6.8% | 26 |
| 4 | Pennsylvania | 5.0% | 19 |
| 5 | New York | 3.9% | 15 |
| 6 | Missouri | 3.1% | 12 |
| 7 | Georgia | 3.1% | 12 |
| 8 | Michigan | 2.9% | 11 |
| 9 | Oregon | 2.9% | 11 |
| 10 | Ohio | 2.9% | 11 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
88
Total SBA Loans
$46.4M
Total Loan Volume
$528K
Average Loan Size
12 yrs
Average Loan Term
9.54%
Average Interest Rate
520
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Ice manufacturers seeking SBA financing typically qualify under the SBA size standards[9] for NAICS 312113, which set the threshold at 750 employees for small business classification. The SBA 7(a) loan program[10] provides up to $5 million for business acquisitions, refrigeration system upgrades, and fleet expansion. Most CDC/504 loan program[11] offers long-term fixed-rate financing for production facility construction, cold storage expansion, and major industrial refrigeration equipment. Route-based ice businesses with established customer contracts and owned delivery fleets typically receive favorable SBA lending terms based on tangible asset backing.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | TD Bank, National Association | 16 | $29.6M | $1.8M |
| 2 | Open Bank | 8 | $6.6M | $820K |
| 3 | JPMorgan Chase Bank, National Association | 8 | $5.8M | $725K |
| 4 | Manufacturers and Traders Trust Company | 16 | $2.4M | $150K |
| 5 | NexTier Bank, National Association | 8 | $800K | $100K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for an ice manufacturing business?
Ice manufacturing businesses typically trade at 3x to 6x EBITDA, with route density, customer contract stability, and geographic exclusivity driving valuations toward the upper range. Smaller single-facility operations may trade at 2.5x to 4x seller's discretionary earnings. Per U.S. Census Bureau[5] data, the industry's consolidation trend has pushed acquisition multiples upward for well-positioned regional operators.
What SBA loan options are available for acquiring an ice manufacturing business?
The SBA 7(a) loan program[10] provides up to $5 million for acquisitions and equipment purchases, while the CDC/504 program[11] finances major refrigeration equipment and facility construction. Ice businesses with owned delivery fleets, established route contracts, and real estate typically qualify for favorable advance rates given the strong tangible asset base.
What are the main revenue drivers for ice manufacturers?
Revenue depends on route density, customer account count, seasonal volume patterns, and product mix between retail packaged ice and bulk foodservice delivery. Companies operating in warm-climate markets generate higher year-round use compared to northern operators facing pronounced seasonal demand. Growth comes from expanding convenience store networks and increasing restaurant delivery frequency.
How do energy costs affect ice manufacturing profitability?
Energy costs typically represent 15-25% of total operating expenses, making electricity the single largest variable cost after labor. According to the Bureau of Labor Statistics[12], utility costs in food manufacturing have risen alongside broader energy price increases. Ice manufacturers mitigate costs through off-peak production scheduling, energy-efficient compressor systems, and negotiated commercial electricity rates with local utilities.
What equipment is needed for ice manufacturing?
Core equipment includes industrial ice-making machines, water filtration systems, cold storage rooms, packaging and bagging machinery, and refrigerated delivery trucks. A mid-scale ice plant with production capacity of 50-100 tons daily requires $500,000 to $2 million in equipment investment. Per SBA[13] lending data, equipment represents the primary collateral category in ice manufacturing transactions.
What regulatory requirements affect NAICS 312113 businesses?
Ice is classified as a food product by the FDA[7], requiring compliance with Current Good Manufacturing Practices, water quality testing, and facility sanitation standards. State health departments conduct regular inspections of production facilities, testing water sources and finished products for contamination. Per EPA[14] regulations, facilities using certain refrigerants must comply with leak detection and emission reporting requirements.
How does route density affect business value?
Route density is the most critical value driver in ice manufacturing because delivery costs represent 20-30% of total operating expenses. Businesses with tightly clustered customer accounts achieve lower per-delivery costs and higher driver productivity. Acquirers pay premium multiples for operations with dense route networks because incremental customers can be added at minimal marginal delivery cost.
What consolidation trends exist in ice manufacturing?
The ice industry has experienced significant consolidation as larger regional operators acquire smaller independent producers to achieve distribution scale and reduce per-unit production costs. Per U.S. Census Bureau[5] data, establishment counts have declined while average revenue per establishment has increased, reflecting this consolidation pattern. Remaining independent operators often find acquisition offers attractive given capital expenditure pressures from aging refrigeration equipment.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA Office of Advocacy advocacy.sba.gov
- [7]FDA fda.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA size standards sba.gov
- [10]SBA 7(a) loan program sba.gov
- [11]CDC/504 loan program sba.gov
- [12]Bureau of Labor Statistics bls.gov
- [13]SBA sba.gov
- [14]EPA epa.gov
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