Ferguson is the leading distributor of plumbing and heating products in the USA. It operates nationally serving the residential, commercial, civil and industrial markets.
The US business operates primarily under the Ferguson brand and is the market leading distributor of plumbing and heating products in the USA. It operates nationally serving the residential, commercial, civil and industrial markets. The largest end market for Ferguson is residential which represents about 50 per cent of sales, commercial about 35 per cent of sales and the remainder is split between civil/infrastructure and industrial. Ferguson predominantly serves the Repair, Maintenance and Improvement (“RMI”) markets, with relatively low exposure to the new construction market.
Ferguson operates 1,448 branches serving all 50 states with 26,501 associates. The branches are served by 10 distribution centres, providing same day and next day product availability, a key competitive advantage and an important requirement for customers.
In line with the Group’s strategy the business aims to strengthen its position in existing and adjacent markets through bolt-on acquisitions. Nine bolt-on acquisitions were completed during the year across a majority of the business units and product categories.
For strategic planning purposes we have nine customer SBUs. Blended Branches predominantly splits into three SBUs (Residential trade, Residential showroom and Commercial) with the remaining revenue allocated to the corresponding standalone business unit.
Serves the residential RMI and new construction sectors with a large proportion of sales through the branch counters. It provides plumbing and sanitary supplies, tools, repair parts and bathroom fixtures to plumbing contractors. Ferguson is the number two in the USA with an estimated market share of 16 per cent. The estimated combined market share of the top three companies is 50 per cent with the remainder of the market fragmented between mid-size regional distributors and small, local distributors.
Operates a national network of 276 showrooms, serving consumers and trade customers. Showrooms display bathroom, kitchen and lighting products and assist customers by providing advice and project management services for their home improvement projects. Ferguson is the market leader with an estimated 11 per cent market share, the next largest competitor is about one third of the size.
Provides commercial plumbing and mechanical contractors with products and services including bidding and tendering support and timeline planning to assist with their construction projects. Ferguson is the number one in the USA with an estimated market share of 19 per cent, roughly twice the size of its nearest competitor.
Sales tend to be part of large planned projects to public and private water authorities, utility contractors, public works/line contractors and heavy highway contractors on residential, commercial and municipal projects across the water, sanitary sewer and storm water management markets. Ferguson is the largest operator in the USA, with an estimated market share of 22 per cent, slightly higher than the number two. Outside the top two, no other company holds greater than 5 per cent market share.
HVAC supplies heating, ventilation, air conditioning and refrigeration equipment, parts and supplies to specialist contractors. The business predominantly serves the residential and commercial markets for repair and replacement. Ferguson is the third largest distributor in a highly fragmented market. The market leader is about twice the size of Ferguson with an estimated 8 per cent market share.
The Industrial business is a supplier of PVF and maintenance specialising in delivering automation, instrumentation, engineered products and turn-key solutions. We also provide supply chain management solutions. The Industrial business operates across all sectors including oil and gas, mining, chemical and power. The industrial market is fragmented, we estimate our market share to be 5 per cent, with the market leader about three times larger.
Fire and Fabrication services to fire protection contractors and engineers offering fire protection products, fire protection systems and bespoke fabrication services to commercial contractors for new construction and major renovation projects. Ferguson is the number one with about 20 per cent market share and the two next largest competitors hold an estimated 25 per cent market share between them.
Provides products, services and solutions to enable reliable maintenance of facilities across several RMI markets including multi-family properties, government agencies, hospitality, education and healthcare. The market is highly fragmented with no competitors holding more than 5 per cent market share.
The B2C business sells directly to consumers and trade customers online predominantly using Ferguson’s product range and distribution network. The majority of our B2C business is conducted through Build.com which is supported by a call centre of sales consultants to provide advice and support customers. The market is predominantly comprised of large competitors with the top four businesses holding an estimated 75 per cent of the market, Ferguson is estimated to be number two.