Wolseley Canada Inc
Our Market
Plumbing, heating and building materials distribution in the USA, Canada, UK, Nordic region, France and Central Europe.
Growing markets
Demand for plumbing and heating and building materials is cyclical and influenced by macroeconomic factors such as gross domestic product (“GDP”), unemployment and consumer confidence.
Other key factors supporting long term growth in the markets are as follows:
Population growth – Growth of one per cent per year is expected in the USA in the next decade¹. Population is expected to grow in almost all the countries we operate in.
Ageing of housing stock – The median age of homes in the USA is 39 years. As housing stock ages there is increased demand for repairs, maintenance and improvement work².
Changing tastes and fashions – Changing tastes, combined with increases in disposable income, will continue to support demand in the home improvement market.
Trend towards increased comfort levels in residential houses – There is a continuing trend towards increasing levels of comfort in residential houses, such as increased use of heating and air conditioning and a higher number of bathrooms. 85 per cent of new homes in the USA have two or more bathrooms².
Technological change – Continued technological advances drive the market for replacement. For example, the best modern high efficiency condensing boilers convert more than 90 per cent of fuel into heat, compared to just 55 per cent for some old boilers5.
Sustainable development and environmental factors – Environmental concerns and a drive towards sustainable development and energy efficiency, including regulation in many countries, will drive demand for the renovation of existing buildings. For example, the EU plans that all new public buildings are to be ‘nearly zero-energy’ by 2019 and other buildings after 20216.
Very large after-market, with repairs, maintenance and improvement spend often in excess of new construction spend
A key characteristic of the plumbing, heating and building materials distribution markets is that the aftermarket is very large, providing an ongoing and less cyclical source of demand. For example, Euroconstruct estimates the size of the building repair market in Western Europe in 2013 to be around €543bn. 59 per cent of Wolseley’s sales in the year ended 31 July 2013 were to the repairs, maintenance and improvement markets.
1. Source: United Nations Department of Economic and Social Affairs
2. Source: US Department of Housing and Urban Development
3. Source: US Census Bureau
4. Source: US Census Bureau PDF (0.02Mb) 
5. Source: http://www.sedbuk.com
6. Source: ECEEE European Commission for an Energy Efficient Economy
Source: http://www.wolseley.com/index.asp?pageid=337
