|Last Quarterly Update:||9/16/2013|
|SIC Codes:||5063, 5072, 5074|
|NAICS Codes:||4237, 42361|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry distribute electrical, plumbing, and HVAC materials and supplies, as well as hardware, handtools, and other equipment. Major companies include Ace Hardware, Anixter, Graybar Electric, True Value, and WESCO International (all based in the US), as well as Rexel (France) and Wolseley (UK).
Distributors may have operations in multiple countries to meet the needs of customers with global operations. Many larger US companies have operations in Canada, Mexico, and Europe.
The US electrical, plumbing, and hardware wholesalers industry includes about 30,000 establishments with combined annual revenue of about $230 billion. Key growth drivers include the volume of home construction, renovations, and repairs.
Sales are driven by demand from the construction, telecommunications, and hardware retailing industries. Profitability depends largely on merchandising and efficient inventory management. Large companies have wide distribution networks and may offer customers a broad selection of products and services. Small operators can compete successfully by stocking specialty products, stocking all of the parts that their particular customers need, or delivering superior service.
The hardware, plumbing, and heating equipment and supplies segment of the industry is fragmented: the 50 largest companies generate about 45 percent of revenue. The electrical apparatus and equipment, wiring supplies, and related equipment segment is more concentrated: the 50 largest companies generate about 50 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Companies in this industry typically buy large quantities of products from hundreds of manufacturers, then "break bulk" ...
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