The Industrial business operates across all industries including energy, pulp and paper, chemical, mining, and food and beverage.
Key highlights 2019/20:
Key products and services:
Our Industrial customer group supplies pipe, valves & fittings (“PVF”) as well as specialized services including valve automation and supply chain management. Customers rely on our technical expertise when building, maintaining and repairing infrastructure for the industrial market.
The Industrial business operates across all sectors including energy, pulp and paper, chemical, mining and food and beverage. Customers include industrial contractors where Ferguson typically provides PVF products. We also sell directly to end users and manufacturers where we can offer both a wide variety of products and specialized services to ensure that facilities continue to operate safely and efficiently. Diversification across industries gives us a broader base of business leading to more stable profitability.
We have continued to expand the business ahead of the wider market during the year. Some industries such as chemicals and pulp and paper have traded reasonably well while COVID-19 and lower oil prices impacted on aerospace, automotive, mining and oil and gas customers in the latter part of the financial year.
Growing the valve automation business remains a priority. We acquired Process Instruments & Controls and Rencor Controls which build out our valve automation service offering on the West Coast and in the Northeast respectively. We continue to develop and expand the Industrial MRO service in a number of geographies in order to improve our service offering and grow wallet share with customers.
The industrial market is fragmented; we estimate our market share to be five per cent, with the market leader approximately two times larger and concentrated in the oil and gas sector.
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