It has been a very good year, and PHCP wholesalers surveyed by SUPPLY HOUSE TIMES are projecting more of the same for fiscal 2006. Last year we reported that a record percentage of responding wholesalers enjoyed higher sales in 2004 and about 95% projected sales would rise again in 2005. The number of responding PHCP wholesalers who achieved those sales increases in fiscal 2005 was even higher: 95.8%.
The volume of the total market of PHCP wholesalers in the United States and Canada was estimated at $65.92 billion (U.S.) for fiscal year 2005, up 8.8% from $60.6 billion (U.S.) in 2004.
Much of the sales gain was a function of higher prices, according to an industry insider. Inflation boosted the prices of copper tube and plastic pipe in particular. The Producer Price Index compiled by the U.S. Bureau of Labor Statistics revealed that the selling price for copper and copper alloy tube rose by 35.6% between December 2004 and December 2005; the selling price for plastic pipe and fittings jumped 48.3% in that same period. The Producer Price Index is the price at which a commodity or product is sold at its first sale. This refers to the first sale after it has been manufactured, mined, refined or produced.
Inflation also helped in the plumbing category, although not so dramatically.
Prices were up 4.3% for both vitreous china fixtures and fixture fittings and trim in December 2005 vs. December 2004, according to the Producer Price Index.