Increased demand from the renovation market is anticipated to accelerate
New York, NY (PRWEB) October 25, 2014
The Plumbing, Heating and Air-Conditioning Equipment Wholesaling industry is anticipated to grow over the five years to 2014. Renovation, maintenance and repair work comprises the majority of industry demand, and thanks to its steady growth amid the recession, losses were relatively minimal despite declining demand from new construction. As a result, however, industry gains have been less pronounced in contrast to other upstream building equipment distributors over the past five years. Demand has continued to rise from the renovation market, albeit a slower rate than new construction, therefore moderating growth.
This industry comprises a number of small players that serve their respective regional markets. Based on data sourced from Statistics Canada, IBISWorld estimates that many industry distributors operate as nonemployers. While the Plumbing, Heating and Air-Conditioning Equipment Wholesaling industry remains highly fragmented, many larger operators are acquiring smaller players to expand their market share. Most notably, major player Emco purchased Rona's commercial and professional market divisions. IBISWorld Economic Analyst Britanny Carter says in the new report “eco-friendly renovation tax credits have spurred demand among consumers for industry products, such as low-flow shower heads and toilets” For example, the ecoENERGY Retrofit program offered up to $5,000 toward energy efficiency improvements for low-rise properties through March 2012. Provincial initiatives include Quebec's EcoRenov tax credit of up to $10,000 for all energy-related renovation work undertaken in October 2013 through November 2014.
Over the next five years, demand from downstream construction markets will continue to rise. While new construction growth is expected to slow, increased demand from the renovation market is anticipated to accelerate. This includes a notable jump in residential renovation expenditure during 2014, boosting industry revenue during the year. “Eco-friendly plumbing and HVAC equipment are anticipated to grow as a share of industry revenue as consumers and businesses opt for energy-efficient products that reduce utility costs,” Carter says in the new report. These products can be sold at premium prices, expanding industry profit. Overall, revenue is forecast to rise over the five years to 2019.
For more information, visit IBISWorld’s Plumbing, Heating and Air-Conditioning Equipment Wholesaling in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry buys, sells and distributes plumbing, heating, ventilation and air conditioning (HVAC) equipment. Wholesalers in the industry purchase products directly from manufacturers and subsequently distribute products to contractors and retailers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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