Supply Experts for the plumbing industry
As more and more customers look online for their purchasing needs there are still many in the plumbing industry that have not cultivated the e-commerce marketplace.
With growing demand for plumbing services North American wholesalers have an opportunity to grow their customer base through e-commerce and mobile sales.
SNAPSHOT OF CANADIAN PLUMBING WHOLESALE MARKET IN NORTH AMERICA
Ontario, Quebec and Alberta are the provinces with the strongest wholesale market, according to Statistics Canada. The data shows there has been a six percent increase in sales over last year.
The electrical, plumbing, heating and air-conditioning equipment and supplies merchant wholesalers revenue increased 2.6 per cent between January and February and 16.9 per cent over last year. Between 2013 and 2016 sales in the industry rose from just over $26 million to $28.8 million.
The biggest industry organization, the Canadian Institute of Plumbing & Heating, is an association of manufacturers, wholesale distributors, manufacturer’s agents and other related businesses. They have over 270 members, according to their website. These members work in the plumbing, heating, pipe valves and fittings industries. The non-profit association estimates the industry is worth $6 billion and over 20,000 Canadians work in it. Yet that is nothing in comparison to the over $300 billion that the United States industry has been estimated to be worth.
In total, the Canadian Mortgage and Housing Corporation (CMHC) reported there were 44,000 plumbers across Canada. This makes up a large, mostly untapped group of online shoppers.
That is one of the biggest reasons that Supply Expert has included plumbing wholesalers in its plan for the top ecommerce marketplace.
E-COMMERCE AND MORE
Amazon Supply has been taking the e-commerce industry by storm.
In comparison, tED Magazine reports that half of distributors don’t have an online sales component to their websites. Many of the websites that the magazine reports on are in need of an upgrade.
There has also been a prediction that more money will be spent by companies on e-commerce efforts in the future.
However, by using Supply Expert wholesalers can mitigate the costs of updating their website and incorporating an e-commerce feature. With a standard platform and a user-friendly look both customers and companies will appreciate what Supply Expert has to offer.
Another challenge to the plumbing industry that has been identified by the CIPH is data error. The association has warned its members that mismatched invoices or orders has become a serious problem in the plumbing and heating industry.
Yet, e-commerce isn’t the only activity that businesses have been advised to focus on. Companies have also been told they should invest more into content marketing, virtual showrooms and local advertising.
There is also a need to invest in mobile offerings as the spread of smartphones has increased and so have mobile shoppers, according to research by IBIS World.
FUTURE OF THE INDUSTRY
An expected boost in residential renovations and new construction projects revenue in the plumbing industry has been expected to increase over the next few years. Despite IBIS World’s anticipation of a decline in non-residential construction for Canada. Housing starts have been increasing across the country, as shown by recent statistics from the CMHC, which will have a ripple effect on the plumbing industry.
As well, Statistics Canada’s research has shown a slow and steady increase in wholesales sales in electrical, plumbing, heating and air conditioning equipment. In 2012 the revenue for the market was $25,781 million and in 2016 that had risen to $28,891 million.
The construction market in North America is expected to keep growing.
Many studies have shown there will be growth for the plumbing industry, which in turn means growth for wholesalers that supply the industry.
One of the best ways for plumbing wholesalers to meet rising demand in the market is to enhance their e-commerce capabilities.
Companies like Supply Expert who have been taking the lead in the e-commerce space and adapting to meet the changing needs of consumers will be at the forefront of the growth.