News

Jul 19, 2023

Ferguson

The United States segment operates primarily under the Ferguson brand and

The United States segment operates primarily under the Ferguson brand and provides expertise, solutions, and products, from infrastructure, plumbing and appliances to HVAC, fire, fabrication and more, to residential and non-residential contractors. Our products are delivered through a common network of distribution centers, branches and specialist sales associates, counter service, showroom consultants and e-commerce. As of July 31, 2022, the U.S. business operated 1,509 branches and 10 national distribution centers serving all 50 states with approximately 33,000 associates. These locations provide same-day and next-day product availability, which we believe to be a competitive advantage and an important requirement for customers. In addition, our U.S. business operates two market distribution centers ("MDCs") in Denver, Colorado and Phoenix, Arizona for branch replenishment and final mile distribution to customers. Our operations and associate expertise align with the nine customer groups where we predominantly serve trade customers. By differentiating between the customer types, we are able to provide bespoke services and better cater to specific requirements. Each group has its own set of competitors that range from large national companies, including trade sales by large home improvement chains, to small, privately owned distributors. To learn more about our U.S. business, visit www.ferguson.com.

Operates a national network of 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.

Key products and services:

To find a local showroom, visit Ferguson's Bath, Kitchen & Lighting Gallery here.

Provides commercial plumbing and mechanical contractors with products and services including bidding and tendering support and timeline planning to assist with their construction projects.

We often serve plumbers and mechanical contractors focused on new commercial construction projects or repair and remodel 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.

Key products and services:

To learn more about Ferguson's Commercial/Mechanical business, visit here.

Facilities Supply operates across several repair, maintenance and improvement markets. The majority of deliveries are made from Ferguson's distribution center network directly to customer facilities. Typical customers include multi-family properties, hospitality, education, healthcare, commercial properties or building service contractors.

Key products and services:

To learn more about Ferguson's Facilities Supply business, visit here.

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.

Key products and services:

Sales are typically made to plumbing contractors across both RMI and new construction. RMI contractors usually operate with a small number of vehicles and associates, working on small projects and day-to-day residential repair work. In these instances, their work is awarded based on their availability and the price and severity of the plumbing problem. The business is characterized by high order volumes, though average order size for RMI customers tends to be smaller. New construction contractors work on a range of projects from single homes to mid-sized housing developments and are typically contracted by construction firms. This type of work is usually awarded through a tender process in advance of the project.

We continue to diversify our product offering through multiple brands to attract and retain a larger base of customers and have ensured better national price alignment during the year. We also continue to work on our digital presence providing mobile and inventory management for our customers.

Residential Trade: To learn more about Ferguson's Residential Trade business, visit here.

Within our Fire and Fabrication customer group we fabricate and supply fire protection products, fire protection systems and fabrication services to fire contractors. These contractors work on new installations, renovations and servicing of fire systems principally in commercial buildings but also in some residential facilities. Purchasing decisions are made based on service, relationships and inventory availability.

Key products and services:

To learn more about Ferguson's Fire and Fabrication business, visit here.

Residential Digital Commerce sells home improvement products directly to professional trade customers and consumers online predominantly using Ferguson's existing product lines and distribution network.

The majority of Residential Digital Commerce is conducted through Build with Ferguson (Build.com), which is supported by a dedicated customer support center. The center is staffed with knowledgeable Ferguson associates who deliver expert advice across all product categories. This differentiation gives us a competitive advantage against the other large competitors in the space.

Key products and services:

Additionally, we have expanded capabilities within our showroom network by leveraging our Build with Ferguson platform. This allows a seamless omnichannel experience for the customer as they can place orders directly from the showroom. By leveraging the Build with Ferguson platform and our projects tool, a home improvement tool designed to gather inspiration, plan, organize and collaborate with others in real-time, we are better able to service the project-minded consumer.

To learn more about Ferguson's Residential Digital Commerce business, visit here.

Typical customers include specialty and multi-trade contractors focused on installing, repairing and maintaining heating, ventilation and air conditioning ("HVAC") units serving single and multi-family residential developments in addition to light commercial markets. We also sell to contractors working on large RMI projects in the commercial market with the majority of trade going through the branch network.

We partner with a variety of HVAC manufacturers, providing distribution services across different geographies in the USA.

Key products and services:

To learn more about Ferguson's HVAC business, visit here.

The Industrial business operates across several niche sectors including energy, pulp and paper, chemical, mining, pharmaceutical and food and beverage. Customers include industrial contractors where Ferguson typically provides pipe, valves & fittings ("PVF"). 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.

Key products and services:

To learn more about Ferguson's Industrial business, visit here.

Waterworks distributes pipe, valves and fittings ("PVF"), hydrants, meters and related water management products alongside related services including water line tapping and pipe fusion often to civil or municipal organizations.

Key products and services:

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, sewer and stormwater management markets.

Municipal customers purchase products to repair their water and sewer systems or for capital improvement projects such as meter systems or pipelines. We sell to utility contractors who tend to focus on water, sewerage and storm drainage construction for residential or commercial construction projects. Water/wastewater treatment plant contractors, which are large regional or national players, typically work on very large long-term capital intensive projects. We also sell to utility pipeline contractors who install and maintain publicly funded water and sewage line projects.

To learn more about Ferguson's Waterworks business, visit here.

Customer groups

Locations

Distribution centers

Associates

* Data as of FY2022

The Canada segment operates primarily under the Wolseley brand and supplies plumbing, HVAC and refrigeration products to residential and commercial contractors. The Canada segment also supplies specialist water and wastewater treatment products to residential, commercial and infrastructure contractors, and supplies pipe, valves and fittings ("PVF") solutions to industrial customers. As of July 31, 2022, the Canada business operated 211 branches with one national distribution center and approximately 3,000 associates. To learn more about Ferguson's Canadian business, visit www.wolseleyinc.ca.

Business units

Locations

Distribution center

Associates

* Data as of FY2022