Ferguson Profile
Ferguson plc (Ferguson )is a leading value-added distributor in North America providing expertise, solutions and products from infrastructure, plumbing and appliances to heating, ventilation and air conditioning (HVAC), fire, fabrication and more. The company exists to make its customers’ complex projects simple, successful and sustainable. The company sells through a common network of distribution centers, branches, counter service and specialist sales associates, showroom consultants and e-commerce channels.
Business segments
The company operates through two segments: United States and Canada.
United States
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 customers. Its products are delivered through a common network of distribution centers, branches, counter service and specialist sales associates, showroom consultants and e-commerce channels. The United States business operates branches and national distribution centers serving all 50 states with approximately 32,000 associates. In addition, the company the United States business operates three market distribution centers (MDCs) in Denver, Colorado, Houston, Texas and Phoenix, Arizona for branch replenishment and final mile distribution to customers.
Canada
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. The Canada business operates branches with national distribution center and approximately 3,000 associates.
Business Model
The company has a balanced approach to attractive end markets and serve customers principally in North America. Approximately 52% of the company’s net sales are to residential markets and 48% to non-residential markets with net sales within the residential and non-residential markets balanced between RMI (approximately 60% of its net sales) and new construction (approximately 40% of its net sales), based on management’s estimates. The company is positioned as one of the top distributors in most end markets it serves, including residential, commercial, civil/infrastructure and industrial.
The company’s business bridges the gap between a large and fragmented supplier base with an even larger and more fragmented customer base. As of July 31, 2023, the company had approximately 36,000 suppliers, with no supplier accounting for more than 5% of total inventory purchases, which provides it access to a diverse and broad range of quality products. The company serves its customers through a network of national distribution centers, MDCs, fleet vehicles, branches and approximately 35,000 associates, in each case, as of July 31, 2023.
Customers
The company exists to make its customers’ complex projects simple, successful and sustainable. The company offers expertise and a broad range of products delivered where and when its customers need them. Customers rely on the company to help them deliver critical infrastructure spanning almost every stage of projects within the residential and non-residential markets. The company partners with its customers to keep millions of homes and businesses operating while helping them to run their business more efficiently.
Value-Added Products and Solutions
The company’s value-added solutions include a variety of sales channels available to its customers ranging from inside and outside sales teams, sales centers, digital commerce capabilities, system-to-system capabilities, counter sales and showrooms. The company also offers customized solutions such as virtual design, fabrication, valve actuation, pre-assembly, kitting, installation and project management services.
The company sources, distributes and sells products from domestic and international suppliers. The company’s products include branded products and own brand products that the company sells exclusively in the market.
The company’s branded and own brand products are generally available from several sources and are not typically subject to supply constraints in normal market conditions. Fulfillment options for the company’s customers include delivery, customer pick-up from its branches, counters and locker locations, and direct shipments.
The company also offers after-sales support that comprises warranty, credit, project-based billing, returns and maintenance, repair and operations (MRO) support.
Global Supply Chain
The company has a global supply chain which provides access to approximately 36,000 suppliers and it sells more than 1 million unique products each year. The company operates an extensive network across North America, including import centers, national distribution centers and branch locations. The company’s network also includes three MDCs which provide greater access to key strategic markets and allows it to bring its products closer to its customers. These MDCs include automated picking and replenishment systems for the majority of items picked. This automation improves efficiency and reduces manual handling of certain products which supports associate health and safety.
History
The company was founded in 1887. The company was incorporated in Jersey in 2019. It was formerly known as Wolseley plc and changed its name to Ferguson plc in 2017.
