Maintenance, Repair & Operations
In the Maintenance, Repair & Operations market sector, our Facilities
Maintenance and Home Improvement Solutions business units serve customers across
multiple industries by primarily delivering supplies and services needed to
maintain and upgrade multifamily, hospitality, healthcare and institutional
facilities. Facilities Maintenance is a distribution center-based model, while
Home Improvement Solutions operates through retail outlets primarily serving
cash and carry customers. We estimate that this market sector currently represents
an addressable market in excess of $51 billion annually with demand driven primarily
by ongoing maintenance requirements of a broad range of existing structures
and traditional repair and remodeling construction activity across multiple
industries. We believe Facilities Maintenance customers value speed and product
availability over price. We believe our maintenance, repair and operations business
focused on living spaces, including apartment units, hotel or motel rooms and
senior care living facilities, provides stable demand, particularly in a challenging
economic environment, when new construction tends to decrease.
Facilities Maintenance: Electrical and lighting items, plumbing, HVAC products,
appliances, janitorial supplies, hardware, kitchen and bath cabinets, window
coverings, textiles and guest amenities, healthcare maintenance and water and
wastewater treatment products.
Home Improvement Solutions: Kitchen cabinets, windows, plumbing materials,
masonry, electrical equipment, lumber, flooring and tools and tool rentals for
small remodeling, home improvement and do-it-yourself residential projects.
Infrastructure
In the Infrastructure market sector, our Waterworks business unit supports
both established infrastructure and new projects by meeting demand for critical
supplies and services used to build and maintain water systems. We estimate
that this market sector currently represents an addressable market in excess
of $11 billion annually with demand in the U.S. driven primarily by an aging
and overburdened national infrastructure and general population growth trends.
The broad geographic presence of our Waterworks business unit, through a regionally
organized branch distribution network, reduces our exposure to economic factors
in any single region. We believe we have the potential to capitalize on a substantial
backlog of deferred projects that will need to be addressed in the coming years
as a result of our customers delaying much needed upgrades or repairs during
the recent economic downturn as well as a continued recovery in the non-residential
and residential construction markets.
Waterworks: Water and wastewater transmission products including pipe (PVC,
Ductile Iron, HDPE), fittings, valves, fire protection, metering systems, storm
drain, hydrants, fusion machine rental, valve testing and repair.
Specialty Construction
In the Specialty Construction market sector, our Construction & Industrial—White
Cap and Interior Solutions business units serve professional contractors and
trades by meeting their distinct and customized supply needs in non-residential,
residential and industrial applications. We estimate that this market sector
currently represents an addressable market of approximately $25 billion annually
with demand driven primarily by residential construction, non-residential construction,
industrial and repair and remodeling construction spending. Construction &
Industrial—White Cap is our primary business unit serving this sector
through the broad national presence of its regionally organized branch distribution
network, as well as branches in six Canadian provinces. Interior Solutions serves
its market through a network of branches and design centers. We believe we are
well-positioned to benefit from the continued recovery from historical lows
within the non-residential and residential construction end-markets.
Construction & Industrial—White Cap: Concrete accessories and chemicals,
tools, engineered materials and fasteners, safety, erosion and waterproofing.
Interior Solutions: Flooring, cabinets, countertops and window coverings,
along with comprehensive design center services, for the interior finish of
non-residential, residential and senior living projects.