Robbins & Myers Competition
Now Viewing Robbins & Myers's competition in: Electrical, Plumbing, and Hardware Distributors (primary)
Recent Developments
Strong Nonresidential Construction Demand - The nonresidential construction sector's high demand for electrical, plumbing, and hardware goods is helping mitigate distributor sales lost due to the weakened housing market. Total nonresidential construction spending rose 13.4 percent in January 2008 from the previous year; lodging construction climbed 55.4 percent; office, 8.3 percent; and healthcare, 6.9 percent.
Inventory Costs Climb - Distributors paid more to replenish inventories as manufacturers raised prices of electrical, plumbing, and hardware goods. The producer price of hardware increased 3.2 percent in 2007 from a year earlier; metal plumbing fixtures and fittings, 6.6 percent; wiring devices, 3.3 percent; and transformers and power regulators, 12.9 percent. Plastic plumbing fixtures and fittings fell 1.5 percent after skyrocketing 14.5 percent in 2006. Distributors must pass the added cost to customers or suffer pinched profit margins.
Distributor Employment, Wages Expand - Employment in the industry is expanding, but a wage gap among the various types of distributors remains. Hardware and plumbing distributor employment rose 1.6 percent in 2007 from a year ago, while wages jumped 8.2 percent to $18.53 per hour. Electrical goods wholesaler employment grew 2.4 percent as wages increased 2.1 percent to $23.05 per hour. The wage gap is likely due to the greater complexity of electrical products, and subsequently, the training required to sell them.
Competitive Landscape
Sales are driven by demand from the construction, electrical distribution, telecommunications, and hardware retailing industries. Profitability depends largely on merchandising and efficient inventory management. Small operators can compete successfully by stocking specialty products, stocking all the parts their particular customers need, or delivering superior service. The industry is highly automated: average annual revenue per employee is around $450,000.
Full Industry Overview For Electrical, Plumbing, and Hardware Distributors
Electrical, Plumbing, and Hardware Distributors Industry Forecast
from Hoover's/D&B subsidiary First Research
The value of US metal products and electrical lighting and wiring equipment, a major indicator for electrical, plumbing, and hardware distributors, is forecast to grow at an annual compounded rate of 4.5 percent between 2007 and 2012.
Electrical, Plumbing, and Hardware Growth Flattens
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Depends on construction activity
- Need good inventory management
- Risk: Housing slump lasts years
Industries Where Robbins & Myers Competes
- Industrial Manufacturing
- Fluid Control Equipment, Pump, Seal & Valve Manufacturing (primary)
- Industrial Automation & Industrial Control Products Manufacturing
- Industrial Machinery & Equipment Manufacturing
- Construction
- Construction Materials
