Hard data tends to paint some powerful pictures.
In the case of PHCP-PVF distributors that responded to the 2018 Supply House Times Premier 150 distributor survey, market conditions continue to trend on an upward trajectory and more good news seems to be in the offing for the remainder of this year.
The annual Premier 150 survey is conducted by Supply House Times and BNP Media Market Research. BNP Media is the parent company of Supply House Times, as well as BNP Media Plumbing Group publications Plumbing & Mechanical, PM Engineer (pme) and West Coast-based Reeves Journal.
The Premier 150 survey ranks the top PHCP-PVF distributors by their reported sales for the past year. The 2018 survey is based on sales for fiscal 2017. Individual company sales never are disclosed and in some cases editor estimates are used if companies did not respond to the survey, which is made readily available through a number of different industry channels and partners at the beginning of each year.
While expectations from a year ago did not quite meet actual performance, the 2017 numbers are most definitely nothing to frown upon. This year’s survey reveals 89% of respondents had an increase in sales in 2017, while only 7% saw a decrease and 4% reported flat sales.
Looking at 2017 Premier 150 prognostications, 92% predicted sales would increase in 2017, while 2% predicted flat sales — so predictions vs. actual sales were not too far off.
These numbers paint an even brighter industry landscape compared to the 2016 Premier 150 survey where 75% of respondents reported increased sales while 86% predicted sales would increase.
The four most recent Premier 150 surveys show the percentage of respondents with actual sales increases as 83% in 2014, 79% in 2015, 75% in 2016 and now a robust 89% in 2017.
Shops responding to the survey that reported a decrease in sales fell from 14% in the 2017 survey to only 7% this time around.
“We had a great 2017 with many jobs pending and starting for 2018,” said Stuart Berke, president of South Florida-based Action Supply.
Morris Cregger, chairman of Columbia, South Carolina-based Cregger Co., once again reported positive gains for his company.
“It was another solid performance with same-store sales growth of 8.2%,” he explained. “We were disappointed in the commercial market as it did not appear to be as strong as we had anticipated. We’ll continue to develop our retail sales, which have grown to around 12% of our business with plans for additional offsite showrooms.”
TORRCO CEO Joel Becker reported improving conditions in the Connecticut region. “2017 saw some mild economic recovery in Connecticut after almost nine years of depressed conditions post-Great Recession,” he said. “We expect 2018 to show continued recovery.”
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Major news from 2017
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Ferguson acquired P.V. Sullivan Supply Co., in an asset transaction. Sullivan is a supplier to the commercial market in the Northeast region.
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Navien announced its New Jersey Training Academy and tech call center doubled in size with a move to a larger facility.
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Bradford White acquired production assets from the heat-pump water-water operations of GE Appliances, a Haier company.
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Aaron & Co. co-owner Richard Laudino died in early February at the age of 62.
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Columbia, South Carolina-based Gateway Supply opened a new location in Lexington, South Carolina.
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Winsupply opened a fire and fabrication location in Lake Elsinore, California, and also opened Winwater of Northeast Arkansas.
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First Supply opened another Kohler Signature Store in the Kansas City, Kansas region.
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Ferguson CEO Frank Roach announced his retirement. Kevin Murphy was named Ferguson’s new CEO.
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WILO USA acquired pump manufacturers Weil Pump Co., Scot Pump Co., and component manufacturer Karak Machine Corp.
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Waterbury, Connecticut-based TORRCO acquired Pramar Plumbing Supply out of Port Chester, New York.
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Aquatherm opened its new Utah headquarters and fabrication facility.
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Minnesota-based Bongard Corp. was named the 2017 Supply House Times Manufacturers Representative of the Year.
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Winsupply opened Winsupply of Houston — Plumbing and Mechanical.
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Ferguson acquired Custom Lighting & Hardware and Lighting Unlimited, both located in Houston.
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AFGlobal Corp. filed for Chapter 11 bankruptcy protection.
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Industrial PVF distributor Yeager Supply celebrated its 50th anniversary.
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Davis & Warshow owner Irving Finkel died in April at the age of 103.
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Gerhard’s Kitchen & Bath Stores by First Supply was named the 2017 Supply House Times Showroom of the Year.
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Edison, New Jersey-based General Plumbing Supply opened a Staten Island, New York location.
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PVF distributor The Macomb Group announced branches in Jeffersonville and Evansville, Indiana, formerly operated by Lockwood International, joined the company.
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F.W. Webb opened two New Jersey locations in Piscataway and one via acquisition of Master Wholesale Supply in Vernon.
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Manufacturers rep firm A.H. Deveney acquired fellow Louisiana firm Parks-Peyton.
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Viega broke ground on its new Broomfield, Colorado headquarters.
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Winsupply named Santa Fe Springs (California) Winwater its 2016 company of the year.
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Bradford White promoted R. Bruce Carnevale to president and COO of the water-heater manufacturer.
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Bensalem, Pennsylvania-based J. Lorber Co., opened a fourth location in Newtown Square of Delaware County.
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New Bedford, Massachusetts-based Plumbers’ Supply Co., acquired South Shore Supply of Brockton, Massachusetts.
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Former Conbraco President and CEO Carl Mosack died at the age of 86.
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Dakota Supply Group was named the 2017 Supply House Times Supply House of the Year.
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Winsupply opened four new companies in Maryland, Boston, Tennessee and Maine.
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The WIT & Co., buying group named Brandy Reed as the candidate selected to replace current Executive Vice President Charlie Moorhead upon his retirement.
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The American Supply Association named Jim Kendzel its new codes and standards director.
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The Forte buying group introduced Cindy Hall as its new CEO.
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Anvil International acquired the Grinnell mechanical product suite.
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Blackman Plumbing Supply announced 13 members of its management team, together with President and CEO Robert Mannheimer, purchased 100% of the company from the estate and trust of Richard Blackman.
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Winsupply acquired Certified Plumbing and Electric Supply out of Live Oak, Florida.
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Charlotte Pipe and Foundry’s Roddey Dowd Sr., died in September at the age of 85.
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The Wieland Group acquired master distributor Kessler Sales & Distribution.
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Bradford White’s Carnevale was the recipient of ASA’s Plumbing Division Award of Excellence.
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Phoenix Forge Group President Larry Dildine was the recipient of the ASA Industrial Piping Division Award of Excellence.
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United Pipe & Steel Corp. was named the 2017 Supply House Times PVF Ring of Honor recipient.
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Winsupply acquired APCO, a Lansing, Michigan-based distributor.
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F.W. Webb acquired Harbor Plumbing & Heating Supply in Mamaroneck, New York.
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Worly Plumbing Supply opened a new branch in Cincinnati, Ohio.
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Luxury Products Group named Jeff MacDowell its new director.
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First Supply celebrated its 120-year anniversary with a major gala in Madison, Wisconsin.
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Supply House Times parent company BNP Media named Darrell Dal Pozzo its new senior group publisher for the company’s Plumbing Group. Dal Pozzo took over from Plumbing Group Publisher Bob Miodonski, who retired in late December after 10 years with the company.
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NIBCO Vice Chairman and Chief Revenue Officer Alice Martin died Dec. 10.
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Munch’s Supply acquired Midwest-based O’Connor Co.
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Fairmont Supply announced the acquisition of Industrial Pipe & Supply of Omaha and Industrial Pipe & Valve of Portland.
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This annual PHCP survey, conducted by Supply House Times, ranks the top plumbing, heating, cooling and piping wholesalers and distributors by their reported sales for the past year. The 2018 Premier 150 Sales Trends are as follows:
Sales Trends for 2018 Premier 150
(Year-To-Year Comparison And Projection)
Chart totals may not add up to 100% due to rounding.
Source: Supply House Times/ BNP Media Market Research 2018
For more information please view the image in the slideshow.
Select another reportThis annual PHCP survey, conducted by Supply House Times, ranks the top plumbing, heating, cooling and piping wholesalers and distributors by their reported sales for the past year. The 2018 Premier 150 Combined Sales and Consolidation Update are as follows:
Combined Sales
Source: Supply House Times/BNP Media Market
Research 2018 All sales in U.S. dollars
Consolidation Update
Source: Supply House Times/BNP Media Market Research 2018
For more information please view the image in the slideshow.
Market segments
As always, respondents were heavily involved in the sales of plumbing and hydronic heating equipment to the tune of $13.9 billion, up from last year’s total of $12.8 billion and up slightly from the 2016 total of $12.2 billion. An increase in companies in those spaces taking the survey likely accounts for some of that bump.
From the PVF standpoint, where market conditions in recent times have been less than stellar, respondents in that space had a grand total of $15.8 billion in sales, up slightly from the $15.1 billion tally a year ago, well ahead of the anemic $12.2 billion figure in the 2016 survey and right on par with the $15.7 billion total from the 2015 survey.
“2017 was a strong year for us and we look for 2018 to be strong as well,” said Mike Abeling, president of Fontana, California-based Consumers Pipe & Supply.
HVAC-focused company sales dropped from near $13 billion last year to just more than $12 billion in this year’s survey with a decreased number of HVAC-focused survey respondents likely factoring in here.
Once again, the largest number of respondents to this year’s survey falls into the $50 million-$99 million category with the $100 million-$199 million following. Those two categories comprise just about 50% of all survey respondents.
Crystal ball time
While that 89% number on the increased sales front for 2017 looks stellar, so does the predicted increased sales number for 2018. Of all survey respondents, 92% tell Supply House Times they predict increased sales in 2018, while a scant 1% say sales will decrease and only 4% predict flat-lining sales.
“The past year we were up 10% and we project a 6% to 10% increase,” an industry resource said.
Howard Frankel, president of Central Plumbing Specialties/Grande Showrooms of New York, classified his 2017 as being “a rocky year ending in a small gain over 2016,” he said. However, Frankel sees stronger headwinds this year. “We are very optimistic with the way the first months of 2018 have already turned out,” he added.
Ernie Coutermarsh, senior vice president of industrial business development at Bedford, Massachusetts-based F.W. Webb sees an even stronger 2018 for the distributor. “2017 was a good year and 2018 will be a great year,” he said. “We have more dots on the mat and our new 1-million-square-foot central distribution center will be feeding the growth.”
Jeff New, president of Elkhart, Indiana-based Mid-City Supply, credits his staff for the company’s growth in 2017. “Last year was a great year thanks to the hard work of our associates,” he said. “We are optimistic our growth will continue in 2018 and beyond.”
Eric Loudon, director of marketing at Western Water Works Supply Co., in Chino Hills, California, noted the beginning of 2017 was slower due to increased rain totals in the company’s markets. “The rest of 2017 was fairly strong and we anticipate 2018 will be much better in the Southern California PVF and waterworks market.”
Jim Fabricatore, vice president at Edison, New Jersey-based Dasco Supply, said the company is preparing for even more growth through back-office enhancements. “2017 was a decent year with pretty stable growth,” he said. “We used it to situate ourselves for the anticipated increase in the commercial market. Already, we have tripled the size of our estimating department and number of employees in our shop. We also started a partial night shift four days a week. We expect, due to the rising commodity increases and the rise in commercial projects, a minimum 15-18% sales growth for 2018 and a similar number for 2019.”
The 2019 Premier 150 survey will be available for PHCP-PVF distributors to take in January 2019. If you would like to be added to the survey distribution list, contact Group Editorial Director Mike Miazga at miazgam@bnpmedia.com.
