Market overview

We operate in large, fragmented markets with strong growth characteristics

The USA continues to be our largest market with the greatest growth opportunities. It is highly fragmented with no market dominated by any single distributor.

Market characteristics and opportunities

Customers’ needs are local

The customer base is fragmented. Professional contractors typically operate within 20 miles of their home base and may visit their local branch several times per week. In addition, they continue to increase the usage of digital channels which complement their working patterns.

Large supplier base

Ferguson distributes over one million products from over 39,000 suppliers across the world.

Clear need for distributors in the supply chain

Distributors, including Ferguson, bridge the gap between a fragmented supplier base and the large and geographically dispersed professional customer base.

Highly fragmented industry

Our markets are typically highly fragmented, with few large players in the industry.

Benefits of scale

Due to scale benefits, market leaders can perform better through the economic cycle and customers have quicker access to products.

Strong organic growth opportunities

Market characteristics support long-term organic growth opportunities.

Bolt-on acquisition opportunities

Ferguson has a large database of targets to support continued growth.

Market growth drivers in the USA

Population growth >5%

Total population growth of more than five per cent is expected in the USA in the next decade.

Source: United Nations Department of Economic and Social Affairs.

Housing transactions 5.0–5.5m

Existing home sales continued to average between 5.0–5.5 million, remaining significantly below the 2005 peak.

Source: National Association of Realtors.

Consumer confidence Moderate

Consumer confidence was lower in 2019/20 due to COVID-19 concerns. There is a correlation between consumer confidence and activity levels in our markets.

Source: The Conference Board.

Aging housing stock 43 years

The median age of homes in the USA is 43 years. There is high demand for repairs, maintenance and improvement in the large installed base of existing homes.

Source: US Department of Housing and Urban Development.

Increased comfort levels in homes 95%

95 per cent of new single family homes in the USA have two or more bathrooms. There is a trend towards increasing levels of comfort in homes.

Source: US Department of Housing and Urban Development

Disposable income No. 1

The USA has the highest levels of disposable income per household in the OECD.

Source: Organisation for Economic Co-operation and Development (“OECD”).