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Commercial

Commercial is part of our Blended Branches business and provides commercial plumbing and mechanical contractors with products and services including bidding and tendering support and timeline planning to assist with their construction projects.

Key highlights 2018/19:

  • Diversified our product range by partnering with new suppliers
  • Focused on integrating Building Information Modelling (“BIM”) systems with our software to improve ordering efficiencies
  • Broadened offerings to include equipment and other technical products

Key products and services

  • Plumbing parts and supplies
  • Pipes, valves and fittings
  • Hangers, struts and fasteners
  • Quotation services (partnering with customers on bids/tenders)
  • Jobsite deliver and logistics

Projects span weeks or months with Ferguson’s established supply chain logistics ensuring the appropriate products are delivered at the correct time throughout the course of the job.

We typically serve plumbers and mechanical contractors focused on new commercial construction projects including schools, hospitals, office buildings and hospitality venues. The plumbing contracts are often awarded based on bids from a set of building plans and specifications. For the mechanical contractor, whose primary focus is the heating, cooling and water delivery systems in the building, contracts are awarded based on bids and specifications but also take into account the relationship and service provided when supporting the design of these intricate systems. We also sell to service contractors affiliated with either customer type mentioned above focused on smaller jobs, remodels and immediate service needs in those building types.

During the year we have continued to expand our supplier base, diversifying our product range and reducing the risk of supply disruption. For example, in one of many key product categories, copper press fittings, we have added three new supplier partners and successfully integrated them into our supply chain. In line with our strategy, our own brand sales growth continues to outpace the growth of sales for the commercial business overall.

When it comes to digital innovation we are leading the way in integrating our ordering systems with customer BIM systems. This makes the ordering process highly efficient to our commercial customers who use BIM as the system maps what products are required when and where for the construction project. The idea being that the customer can place an order for a construction project with the systems working together seamlessly to co-ordinate products and delivery schedules.

In 2018/19 we focused on expanding our services to facilitate sales growth in equipment and other technical products, increasing our value to the mechanical contractor. We also added project managers to our inside sales support team across all markets and geographies with the aim to provide a higher level of focused support to help our contractor partners bring a job to completion on time and under budget.

Ferguson is the number one in the USA with an estimated market share of 20 per cent, roughly twice the size of its nearest competitor.

To read more around how our associates live our values in the commercial business click here