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Online Plumbing and Electrical Supply Sales in the US Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Feb 06, 2014, 03:00 ET

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The development of predictive analysis is expected to capture consumers' intents and price preferences

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New York, NY (PRWEB) February 06, 2014 -- The Online Plumbing and Electrical Supply Sales industry sells electrical wiring and cables, relays and industrial controls, plumbing fixtures, metal and plastic pipe valves and fittings to other businesses, contractors and do-it-yourself customers. According to IBISWorld Industry Analyst Sarah Kahn, “The downturn in construction and home improvement markets during the recession curtailed revenue growth in 2009 but, more importantly, introduced consumers to the advantages of e-commerce.” Consumers on a tight budget turned to the internet for the convenience of at-home shopping and the savings achieved by comparing prices. By the time the housing market recovered, consumers had already experienced the advantages of e-commerce, ensuring strong demand for industry products during the recovery. Over the past five years, revenue increased at an average annual rate of 14.7%, reaching an estimated total of $5.2 billion in 2014.

The number of broadband and mobile internet connections grew consistently in the five years to 2014, increasing the percentage of services conducted online. Industry operators have had to keep up with changing consumer expectations, offering services that have been cutting into profit. Technological advances will continue offering a greater experience for consumers. “The development of predictive analysis is expected to capture consumers' intents and price preferences, allowing companies to offer the right product at the right price,” says Kahn. More secure platforms will further encourage the sale of products online, while mobile friendly apps and social media usage help target consumers with growing accuracy. In 2014 alone, revenue is expected to increase 17.3%.

In the next five years, revenue is expected to increase further. Improving consumer sentiment coupled with more construction and private spending on home improvements are expected to stimulate industry growth. Aging electrical infrastructure will need to be replaced with more energy-efficient fixtures, increasing demand for industry products. A sales tax for web retailers looms in the future, possibly providing state governments with the authority to compel remote sellers to collect sales tax at the time of a transaction. Although this may neutralize the industry's advantage over its brick-and-mortar rivals, revenue is expected to continue increasing over the next five years.
For more information, visit IBISWorld’s Online Plumbing and Electrical Supply Sales in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Online Plumbing and Electrical Supply Sales industry comprises e-tailers that sell plumbing and electrical supplies. Brick-and-mortar sales of plumbing and electrical supplies are not included in the report.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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