5/23/2016

Plumber industry analysis US market Report Paper

Author [COMPANY NAME]

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Table of Contents

1. INTRODUCTION ...................................................................................................................... 2

2. MARKET OVERVIEW ................................................................................................................ 3

Competition ...................................................................................................................................... 5

Salary ............................................................................................................................................... 10

Trends & Challenges ....................................................................................................................... 10

Digital marketing ............................................................................................................................. 12

The advantages of digital marketing .............................................................................................. 12

Recommendations .......................................................................................................................... 12

Conclusion ....................................................................................................................................... 13

3. REFERENCES ......................................................................................................................... 14

4. APPENDICES ........................................................................................................................ 16

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1. INTRODUCTION

Two years ago, the plumbing industry in the United States was as strong as $95 billion. This was

according to the industry research firm IBIS World. The plumbing industry is normally

dependent on the condition of the construction industry. However, the industry will continue

to thrive as long as there are sinks, pipes, toilets and heating and air conditioning equipment

around. There will invariably be a need for plumbers. During the period of recessions where

the construction of new households and commercial buildings have slowed down, the demand

for plumbers still continues since there are repairs needed in existing installations.

Plumbing and HVAC, or heating, ventilation, and air conditioning contractors, are often grouped

together as an industry. Plumbers install and repair toilet and kitchen fixtures and may install

gas appliances as well, while HVAC contractors repair and install air conditioning, furnaces and

refrigeration systems. In 2014, the HVAC industry accounted for 292,000 jobs, expected to grow

by 14% by 2024; the plumbing sector accounted for approximately 425,000 and is expected to

grow 12% over the same time period. The industries combined accounted for $174 billion in

revenue in 2014.

The US Census Bureau lumps up together the industries heating, air conditioning and plumbing

industry. According to IBIS World, the businesses within the industry totals to roughly 154,000

and there are over 715,000 employees. With the economic problems and recession faced in

2008, the industry considered a decline by about 1.3 percent on an annual basis. But years after

the recession, it has already picked up and resumed back to its normal annual growth rate at 2.5

percent as the remodeling activities and building projects are pouring in

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2. MARKET OVERVIEW

Home improvements: Number of people living in households that had plumbing

improvements within the last 12 months in the United States (USA) from autumn 2012 to

spring 2015 (in millions)

This statistic illustrates the number of people living in households that had plumbing

improvements within the last 12 months in the United States from fall 2012 to spring 2015. In

spring 2013, the number of people living in households that had plumbing improvements within

the last 12 months in the United States (USA) amounted to close to 26.94 million.

The figures above demonstrate that there is a drop in plumber services since Autumn 2012 till

Spring 2015. The number of people living in households that had plumbing improvements

within the last 12 months in the United States decreases of 5.01 since 2012.

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Revenue of plumbing fixtures & bathroom accessories manufacturing (NAICS 32711) in

the United States from 2008 to 2013 (in billion U.S. dollars)

This statistic displays annual revenue figures of the plumbing fixtures & bathroom accessories

manufacturing industry in the United States from 2008 to 2013. From 2008, the revenue of

plumbing fixtures & bathroom accessories manufacturing in the U.S. ranged at about 2.1 billion

U.S. dollars.

Following research and statistics indicates that there is a drop in revenue in plumbing industry

in the US market of plumbing during 2008-2013 years. Overall tendency was caused by

recession time, and currently the market recovering and getting back to stability from the Global

Economic Crisis. Revenue from plumbing in USA market dropped down to 0,09 billion $.

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Competition

The plumbing market is rather competitive and consequently in order to reap decent profits,

large quantity of work must be done. Competitors can be split down into three groups:

1. Chains- these plumbing companies are a dealership or a division of a larger chain. The chains

typically do repair work instead of new building construction, but sometimes they do operate

with new builds.

2. Private companies- These fellowships are typically local companies that provide plumbing

services. In order to get sufficient revenue, they will offer a wide range of services.

3. Large commercial & residential companies- These are the local Starbucks of the plumbing

world and will bid on any type of plumbing project, whether commercial or residential, repair

or new builds. The majority of jobs that this competition will work on being the larger

commercial projects, merely getting a contract with a volume home builder would be attractive.

The buying habits of the target segments are based mainly on networking. Once a relationship

is proven, the builder will typically give the plumber one to two jobs to display their work before

any type of long term contract/relationship is developed.

Bath fixture brands used the most by construction firms in the United States in 2014

The statistic depicts bath fixture brands used the most by U.S. construction firms in 2014. The

survey revealed that 46 percent of the respondents use Kohler brand bath fixtures the most.

(For more details, check Appendices section, figure 1)

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This section represents competitors in the New Orleans area, as well as their analysis

and services:

1. Roto-Rooter Plumbing & Drain Services

Website link

New Orleans, LA Plumber, Providing Emergency Plumbing and Drain Services

Being below sea level can cause some major water problems in a house or business. No

worries! New Orleans, LA Roto-Rooter plumbers can diagnose any plumbing problem

and fix it quickly.

Roto-Rooter plumbers in New Orleans provide full=service plumbing maintenance,

repairs and clogged=drain cleaning, 24 hours a day, seven days a week, 365 days a year.

And they never charge more for work on holidays or weekends. Roto-Rooter's New

Orleans plumbers offer residential and commercial plumbing services that customers

depend on for all of their local plumbing needs. No problem is too big or too small for our

plumbers.

2. Rooter-Man

Website link

Rooter-Man grew to become one of the largest plumbing, sewer, and drain cleaning

companies in the North America. In 1981 Rooter-Man began franchising, selecting only

the best of the best in the plumbing, sewer, and drain cleaning industries to operate

under the Rooter-Man trademark. As a result of tremendous growth and success, Rooter-

Man has grown to a network of over 450 locations across the United States and Canada

and has been named the #1 Plumbing Franchise by Entrepreneur Magazine for the last

12 years.

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3. Pipes “R” Us

Website link

Pipes “R” Us is a locally established and locally grown plumbing company that has been

committed to the rebuilding and growth of our beautiful New Orleans metro area for the

past 12 years. From the very beginning, a commitment to personal excellence and to

outstanding business practices in our community was the goal of Pipes “R” Us. Our

owner, Danny Griffin, has 22 years of experience as a master plumber, and our current

rating from the Better Business Bureau is an A+. They offer plumber services for both

residential and commercial plumbing for the metro area, including Jefferson, Orleans,

and the 10 Parish area. No job is too insignificant or too daunting for us to tackle.

4. National Economy Plumbers

Website link

Licensed Master Plumber David Howard Senior manages the day-to-day operations and

supervises the plumbing technicians in the National Economy Plumbers fleet along with

his son David Howard Jr. Unlike some of our competitor’s fantastical claims of over 300

years’ experience, David Howard Senior has over 43 years of actual experience in the

plumbing industry and many times can be seen in the field insuring quality

craftsmanship and superior service. Continuing the tradition like his father Earl Howard

before him and one thing is for certain in the last 72 years; at National Economy

Plumbers they have perfected giving superior service at great prices without

disappearing when the job is done.

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5. Accardo & Lambert Plumbing & Heating

Website link

Since 1983, the company provides outstanding plumbing, drain cleaning, and water

heater services to residents throughout New Orleans. With extended weekday and

weekend hours, they can get repairs completed on schedule. Don’t put up with plumbing

problems! Accardo and Lambert Plumbing provides comprehensive services when

needed.

Company cover following services:

Repairs

Remodeling

New construction

Drain cleaning

Gas and plumbing inspections

Tankless water heater

Pipe video inspector

Backflow preventer certified

6. Bienvenu Brothers Enterprises, Inc.

Website link

A plumbing and HVAC company in Metairie, LA that has a solid history serving this

community, Bienvenu Brothers is the obvious choice. Since 1937, the Bienvenu family

has provided outstanding service and has earned a reputation to match. In 1937, they

are known as Louis A. Bienvenu & Son Plumbing, and their goals were to provide

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unmatched prompt and courteous service at fair and honest prices. Now, the third

generation thrives on as Bienvenu Brothers, always keeping those same goals in mind.

7. Beep Me Plumbing & Heating

Website link

Beep-Me is a locally owned and operated experienced residential plumbing contractor

business in the New Orleans area. With extensive experience and knowledge of

construction dwellings they offer advanced plumbing services for all types of homes.

With technologies becoming more affordable every day they can offer long run savings

on new construction homes and home renovation projects.

Beep-Me is the ideal local plumber in New Orleans for toilet replacement, a full bathroom

remodel, or installing the shower or whirlpool.

Here are the services:

New Constuction

Renovations

Gas Line Installation

Inspections

Sewer Video Inspections

All Plumbing repairs

Unstop sewer, kitchen, dish washer, tub and toilet drains

Specialize in Restaurant Plumbing

Specialize in French Quarter Plumbing projects

City, State, Federal Plumbing Projects

Insurance Jobs

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Golf Courses

Left Station Installation

Specialize in Gas Station Plumbing

Project Cost Analysis

Total number of competitors in New Orleans area: 170 (Google, 2016)

Salary

Men account for the majority of Plumbers in the United States. The overall average income for

this group is approximately $20.10 per hr. Total cash compensation to Plumbers approaches

anywhere from $29K on the lower end to $76K on the high end; in special cases, this can include

more than $2K from bonuses and upwards of $18K from profit sharing. Compensation for this

group is principally affected by geography, but tenure and the individual firm are influential

factors as well. Most Plumbers like their work and job satisfaction is high. More than two-fifths

of professionals in this melodic phrase of work do not receive benefits; however, the greater

part report medical coverage and approximately one in three claim dental coverage as well. The

data from this snapshot was collected from individuals who took the PayScale's salary survey.

Trends & Challenges

The industry is composed of franchises as well as independent owner operated companies. But

there is not really one company that stands out and dominates the market place. This makes the

market an even playing ground for these businesses. Franchises present marketing, training as

well as management tools that elevate the independent plumber into another level of

professionalism as a plumbing technician, complete with utility vehicles and uniforms. The

result of this type of service is better visibility and greater consistency in the business.

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Going green” is no longer a fad; it is now deeply ingrained into today’s society. According to

Hardware Retailing, 47 percent of retailers who sell plumbing products indicated that they had

customers actively seeking green products for their plumbing systems. For modern plumbers,

adding these into their service offerings is not just a good idea for customer inspection and

repair, but also a good idea for overall business growth

An ongoing obstacle for businesses in the industry is the lack of skilled professionals - hence the

strong job growth estimates! Demand for services will come both from new constructions as

well as older buildings with newly required higher efficiency standards. There is a wonderful

opportunity in this field to update and retrofit house built in the post-World War II boom.

Technology is helping in several ways: Consider, for instance, the dishwasher. A new

dishwasher technology that recycles rinse water for the wash cycle can bring through the

average family as much as 700 gallons of water a year. Home automation technology that

automatically shuts off sprinkler systems based on weather reports can also help deliver water.

Plumbing contractors that can offer these services will recover themselves in high demand.

Using greywater (water tharacesns down the sink drain or shower drain) for other purposes in

the home, such as flushing the toilet, is another water-saving innovation, and this is one area

where the services of a plumber are absolutely necessary.

Once installed, a greywater system can deliver a significant amount of money, but only a

licensed plumber is able to set up the complicated system. Plumbing professionals that can

learn how to provide these services will be in an excellent position to gain new clients.

There are certain issues that dazzles the industry among these are business continuity concerns,

especially those relating to taxes. There are also worker safety issues being produced as they

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deal occasionally with toxins. Plumbers of M & S Plumbing are assured of a safe environment

when working as they follow the statutory requirements when doing field works. Other issues

raised are the work site conditions which include climbing in high places like ceilings and high

decks as well as crawling in the spaces under large structures.

Digital marketing

Today, digital marketing is very important almost for every company in the world. It is not only

the Internet and social networks – it is a much larger direction. It helps to reach millions of

potential and existing customers, and save costs for advertising. Digital marketing is very

important almost for every company in the world. It is not only the Internet and social networks

– it is a much larger direction. It helps to reach millions of potential and existing customers, and

save costs for advertising.

The advantages of digital marketing

Social media, and digital marketing give a great opportunity for segmentation. It’s much easier

to collect information about customers through applications and social networks. There are

many analytical and statistical tools on the Internet, which can give a good picture about

segments (for example Google’s analytics, or website statistics). Digital marketing gives

opportunity to reach millions of customers. Opportunity to reach millions and save on

advertising expenses.

Recommendations

The web site is a good source to collect demographic data and contacts of existing and

potential customers, therefore it is essential to develop a registration form for

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customers, and encourage them to register, for example: every family will receive a

bonus £5 for registration on the website, or it can be a free lesson or training.

Facebook page will also help to perform market segmentation

Use services such as http://mailchimp.com/ in order to send emails with offers to

existing customers. And monitor statistics. Free for 2000 recipients.

Use services such as https://www.surveymonkey.com/ and http://fluidsurveys.com/ in

order to get more information about customers. They can provide the ability to make

free and paid surveys.

Create a mobile application (contemporary market trends requires to reach customers

through mobile and portable devices), furthermore, it is the most cost efficient and direct

way to reach customers, due to the fact that they carry the mobile devices with them.

Conclusion

The competition is pretty high in the New Orleans area, however, there is a place for different

and unique approach for costumers. For example – the vast majority of companies is ignoring

digital marketing and its potential. Almost all websites, doesn’t have major tools such as social

media buttons, registration forms and other useful staff for online presence. Contemporary

customers are heavy users of social media, and online presence is essential. It is necessary to

create and develop social media profiles such as: Facebook, LinkedIn, Twitter, YouTube channel

and others. This will give a competitive advantage over competitors.

Obviously, the development of a good landing page and website is essential for every

contemporary business.

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3. REFERENCES

Beep-Me Plumbing Heating & Air. (2016). Beep-Me Plumbing Heating & Air. [online] Available

at: http://www.beep-meplumbing.com/#!services/c10r4 [Accessed 24 May 2016].

Changnon, R. (2015). Where the Water is Flowing: New Trends in Plumbing Technology. [online]

Hardware Retailing. Available at: http://www.hardwareretailing.com/where-the-water-is-

flowing-new-trends-in-plumbing-technology/ [Accessed 23 May 2016].

Franchisehelp.com. (2016). Home Services Industry Analysis 2016 - Cost & Trends. [online]

Available at: https://www.franchisehelp.com/industry-reports/home-services-industry-report/

[Accessed 22 May 2016].

Google.com.ua. (2016). Plumber Competition in New Orleans. [online] Available at:

https://www.google.com.ua/maps/search/plumber+near+New+Orleans,+LA,+United+States/@

29.9141837,-90.331387,12z/data=!3m1!4b1?hl=en [Accessed 24 May 2016].

Insights, 2. (2016). Mansfield Plumbing: Beautiful design. Reliable performance. Affordable price..

[online] Mansfield Plumbing. Available at: http://www.mansfieldplumbing.com/news/2015-

industry-insights/ [Accessed 23 May 2016].

Inter Memory. (2015). An Analysis Of The Industry Of Plumbing - Inter Memory. [online] Available

at: http://www.intermemory.net/an-analysis-of-the-industry-of-plumbing/ [Accessed 23 May

2016].

Mplans.com. (2016). Plumbing Sample Marketing Plan - Situation Analysis - Mplans. [online]

Available at: http://www.mplans.com/plumbing_marketing_plan/situation_analysis_fc.php

[Accessed 23 May 2016].

Nationaleconomyplumber.com. (2016). New Orleans Plumbers Since 1939. [online] Available at:

http://www.nationaleconomyplumber.com/about-us/ [Accessed 24 May 2016].

Payscale.com. (2016). Plumber Salary. [online] Available at:

http://www.payscale.com/research/US/Job=Plumber/Hourly_Rate [Accessed 24 May 2016].

Perspective, P. (2015). Construction Outlook Positive for 2015 | Plumbing Perspective. [online]

Plumbingperspective.com. Available at: http://www.plumbingperspective.com/construction-

outlook-positive-2015/ [Accessed 23 May 2016].

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Perspective, P. (2015). Technology Trends For The Plumbing Service Industry. [online]

Plumbingperspective.com. Available at: http://www.plumbingperspective.com/technology-

trends-for-the-plumbing-service-industry/ [Accessed 23 May 2016].

Plumbingengineer.com. (2015). The Year Ahead: Experts predict continued growth for the industry

in 2015 | Plumbing Engineer. [online] Available at: http://plumbingengineer.com/content/year-

ahead-experts-predict-continued-growth-industry-2015 [Accessed 24 May 2016].

Rotorooter.com. (2016). New Orleans, LA Plumber | Roto-Rooter Plumbing & Drain Services.

[online] Available at: http://www.rotorooter.com/neworleans/ [Accessed 24 May 2016].

Safeplumbing.org. (2016). Current Statistics. [online] Available at:

https://www.safeplumbing.org/what-is-safeplumbing/by-the-numbers/current-statistics

[Accessed 24 May 2016].

Statista. (2016). Most used bath fixture brands in the U.S. 2014 | Statistic. [online] Available at:

http://www.statista.com/statistics/307392/most-used-bath-fixture-brands-in-the-us/ [Accessed

22 May 2016].

Statista. (2016). People living in households that had plumbing improvements, USA 2015. [online]

Available at: http://www.statista.com/statistics/370003/people-living-in-households-that-had-

plumbing-improvements-usa/ [Accessed 23 May 2016].

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4. APPENDICES

Figure 1