In this piece, we will take a look at the 20 biggest plumbing supply companies in the world. For more companies, head on over to 5 Biggest Plumbing Supply Companies in the World.
While not as glitzy or glamorous as high technology, the plumbing industry is still one of the most important ones out there. The ability of humans to live and grow in large cities is dependent on modern day necessities such as plumbing, which includes services like hot water and waste disposal. Broadly speaking, there are six kinds of plumbing, including water supply, sanitary, gas fitting, drainage, roofing, and other services. And while modern day plumbing quietly chugs away at the bottom of cities and megastructures, systems such as sewage drainage have been around for thousands of years.
The Plumbing Industry: An Analysis
The growth in human population and the corresponding rise in living standards has also transformed the plumbing industry into quite a lucrative sector. For instance, a research report from Allied Markets Research believes that the plumbing components industry was worth $58.5 billion in 2019, and from then until 2027, it will grow at a compounded annual growth rate (CAGR) of 5.6% to sit at an estimated $78 billion by the end of the forecast period. The research firm divides the industry across both product categories and end use. For the former, the sector is segmented along fittings, manifolds, pipes, and valves. Out of these, pipes is the largest segment, accounting for a higher share than the other three categories combined. However, the fittings segment is expected to outpace the industry in terms of overall growth, through an estimated CAGR of 7.5%. The low share, high growth rate mix is also mirrored in products end use since while residential demand holds the higher market share, the nonresidential segment is expected to have the highest growth.
As is the case with nearly every other sector, the plumbing industry is also witnessing the growing adaptability of technology. These include interesting new devices such as water leak detection devices and brain pipes. The former is part of a group of gadgets called the Internet of Things (IoT) and they include leak detectors that connect to the home WiFi network and are also capable of detecting moisture and humidity levels. These devices also feature automatic water shut-off features that aim at preventing water loss and drainage in case of a leak. The latter arguably sound more interesting, since they are called ‘brain pipes’. These are part of a system that monitors all the pipes in a house and then monitors water usage for off nominal events such as a leak. If the system detects any such occurrence, it notifies the user and then shuts off the water supply to prevent potential damage and water loss.
These days, all that anyone can talk about (or worry about) is recession. Last year’s global energy and commodity price shocks coupled with rising inflation and high interest rates have created concerns for an economic downturn necessary to bring down prices and to ensure that elevated inflation does not become permanent. Well, according to the private equity industry, this might not be the case for the plumbing industry since investments in the sector grew significantly even during the peak of the coronavirus pandemic when most cities and counties were in lockdown. This stability for the sector even during an economic downturn is aided by the fact that home repairs continue even when business is down, particularly since plumbing is an essential service. Another reason plumbing tends to stay resilient in a volatile economy is that it is easier to scale the business up or down by adding or removing variable capacity markers such as vans or employees. Other businesses, such as large scale manufacturing operations, do not have such flexibility.
Looking at the broader macroeconomic outlook, the U.S. economy is refusing to slow down despite the Fed’s best efforts. This is partly due to large homeowner savings, which is enabling them to maintain buying behavior. These were also on the mind of Lowe’s Companies, Inc. (NYSE:LOW) chief executive officer Mr. Marvin Ellison, who shared during the firm’s Q4 2022 earnings call that:
From our perspective the core drivers of our business, disposable personal income, home price appreciation, and the age of housing stock, remain supportive. Consumer savings are still roughly $1.5 trillion higher than pre-pandemic, with 85% concentrated in the top 40% of income owners who are more likely to be homeowners. Homeowners continue to enjoy record levels of equity in their homes, nearly $330,000 on average.
Even if there is a modest decline in home prices, the level of equity built up during the pandemic would not be meaningfully eroded. And the housing stock continues to age with 50% of US homes over 41 years old, the oldest since World War II. These factors, along with strong millennial household formation, baby boomers’ increasing preference to age in place, and more widespread remote work will continue to be tailwinds for our business. And given the slowdown in housing turnover is driven by higher rates and low supply rather than demand, we continue to see a nationwide trend of trading up in place with consumers opting to upgrade their existing home to meet their evolving needs. All of these dynamics give us confidence in the medium and longer term outlook for the industry.
Today, we’ll look at some of the largest plumbing supply companies in the world, with the largest being Compagnie de Saint-Gobain S.A. (OTCMKTS:CODYY), CRH plc (NYSE:CRH), and Lowe’s Companies, Inc. (NYSE:LOW).
Photo by Brett Jordan on Unsplash
Our Methodology
We researched for plumbing supply companies that are the most valuable in terms of market capitalization. Then, their latest twelve month revenue was estimated, and the top picks are listed here.
Biggest Plumbing Supply Companies in the World
20. Watts Water Technologies, Inc. (NYSE:WTS)
Latest 12 Month Revenue Estimate: $1.9 billion
Watts Water Technologies, Inc. (NYSE:WTS) is an American company headquartered in North Andover, Massachusetts. The firm makes and sells water regulation products such as pressure regulators, relief valves, backflow protectors, and leak protection devices among others.
21 of the 943 hedge funds polled by Insider Monkey during Q4 2022 had bought Watts Water Technologies, Inc. (NYSE:WTS)’s shares. Out of these, Ian Simm’s Impax Asset Management is the firm’s largest investor through a $284 million stake.
Along with CRH plc (NYSE:CRH), Compagnie de Saint-Gobain S.A. (OTCMKTS:CODYY), and Lowe’s Companies, Inc. (NYSE:LOW), Chemed Corporation (NYSE:CHE) is one of the biggest plumbing supply companies in the world.
19. Chemed Corporation (NYSE:CHE)
Latest 12 Month Revenue Estimate: $2.1 billion
Chemed Corporation (NYSE:CHE) is an American firm that supplies different plumbing services such as drain cleaning and water restoration through its Roto-Rooter business segment. The firm is based in Cincinnati, Ohio.
Insider Monkey dug through 943 hedge fund portfolios for their December quarter of 2022 investments and found out that 23 had bought Chemed Corporation (NYSE:CHE)’s shares. Out of these, Henry Ellenbogen’s Durable Capital Partners is the firm’s largest investor. It owns 193,448 shares that are worth $98 million.
18. A. O. Smith Corporation (NYSE:AOS)
Latest 12 Month Revenue Estimate: $3.7 billion
A. O. Smith Corporation (NYSE:AOS) makes and sells a wide variety of plumbing products such as boilers, tanks, water softeners, water filtration systems, and solar water heaters. The firm is based in Milwaukee, Wisconsin.
26 of the 943 hedge funds part of Insider Monkey’s Q4 2022 survey had bought A. O. Smith Corporation (NYSE:AOS)’s shares. The firm’s largest hedge fund shareholder is Ian Simm’s Impax Asset Management which owns four million shares that are worth $232 million.
17. MSC Industrial Direct Co. Inc. (NYSE:MSM)
Latest 12 Month Revenue Estimate: $3.8 billion
MSC Industrial Direct Co. Inc. (NYSE:MSM) is an American company headquartered in Melville, New York. The firm sells plumbing tools such as bending tools and drain cleaning equipment as well as pumps, filtration, and metalworking products.
By the end of 2022’s last quarter, 30 of the 943 hedge funds surveyed by Insider Monkey had held a stake in the company. Seth Rosen’s Nitorum Capital is MSC Industrial Direct Co. Inc. (NYSE:MSM)’s investor through a $78 million stake that comes via 956,071 shares.
16. Toto Ltd. (OTCMKTS:TOTDY)
Latest 12 Month Revenue Estimate: $5.09 billion (1JPY = 0.0074USD)
Toto Ltd. (OTCMKTS:TOTDY) is a Japanese firm headquartered in Kitakyushu, Japan. It supplies a variety of different plumbing products such as toilet seats, urinals, toilet basins, and more. It is also one of the oldest companies out there since it was set up in 1917.
15. Reece Limited (OTCMKTS:REECF)
Latest 12 Month Revenue Estimate: $5.6 billion (1AUD = 0.67USD)
Reece Limited (OTCMKTS:REECF) is an Australian company headquartered in Cremorne, Australia. The firm sells home improvement and plumbing products through its stores in the U.S., Australia, and New Zealand. Some products that it sells include valves, hot water systems, and pipes.
14. Pool Corporation (NASDAQ:POOL)
Latest 12 Month Revenue Estimate: $6.1 billion
Pool Corporation (NASDAQ:POOL) is a pool plumbing company headquartered in Covington, Louisiana. It provides products such as filters, heaters, pumps, and tubs.
By the end of Q4 2022, 37 of the 943 hedge fund part of Insider Monkey’s database had bought Pool Corporation (NASDAQ:POOL)’s shares. The firm’s largest shareholder is Robert Joseph Caruso’s Select Equity Group which owns 1.5 million shares that are worth $454 million.
13. Fastenal Company (NASDAQ:FAST)
Latest 12 Month Revenue Estimate: $6.9 billion
Fastenal Company (NASDAQ:FAST) is an industrial products manufacturer that is headquartered in Winona, Minnesota. The firm makes and sells products such as valves, pipes, fittings, faucets, heaters, and more.
Insider Monkey researched 943 hedge fund portfolios for last year’s fourth quarter and found out that 40 had bought a stake in the company. Fastenal Company (NASDAQ:FAST)’s largest investor in our database is William Von Mueffling’s Cantillon Capital Management which owns 5.3 million shares that are worth $251 million.
12. Watsco, Inc. (NYSE:WSO)
Latest 12 Month Revenue Estimate: $7.2 billion
Watsco, Inc. (NYSE:WSO) makes and sells building equipment such as bathroom supplies and plumbing products. It is based in Miami, Florida.
Insider Monkey dug through 943 hedge fund portfolios for last year’s fourth quarter and found out that 32 had bought the firm’s shares. Out of these, Tom Gayner’s Markel Gayner Asset Management is Watsco, Inc. (NYSE:WSO)’s largest shareholder with a $124 million stake that comes via 500,250 shares.
11. WSP Global Inc. (OTCMKTS:WSPOF)
Latest 12 Month Revenue Estimate: $8.22 billion (1CAD = 0.73USD)
WSP Global Inc. (OTCMKTS:WSPOF) is an engineering consultancy company that provides plumbing services to different industries. It is headquartered in Montreal, Canada.
10. Masco Corporation (NYSE:MAS)
Latest 12 Month Revenue Estimate: $8.6 billion
Masco Corporation (NYSE:MAS) is a building products maker headquartered in Livonia, Michigan. The firm has a dedicated plumbing segment with several products such as shower trays, valves, shower heads, and plumbing system components.
As part of their December quarter of 2022 investments, 28 of the 943 hedge funds polled by Insider Monkey had held a stake in the company. Masco Corporation (NYSE:MAS)’s largest investor in our database is Natixis Global Asset Management’s Harris Associates which owns 8.3 million shares that are worth $391 million.
9. UFP Industries, Inc. (NASDAQ:UFPI)
Latest 12 Month Revenue Estimate: $9.6 billion
UFP Industries, Inc. (NASDAQ:UFPI) is an American firm headquartered in Grand Rapids, Michigan. It makes and sells wood and non-wood composite products, and also distributes plumbing supplies and water heaters after it acquired Service Supply Distribution Company’s assets in 2010.
As part of their Q4 2022 investments, 19 of the 943 hedge funds part of Insider Monkey’s survey had bought UFP Industries, Inc. (NASDAQ:UFPI)’s shares.
8. EMCOR Group, Inc. (NYSE:EME)
Latest 12 Month Revenue Estimate: $11 billion
EMCOR Group, Inc. (NYSE:EME) is an American company headquartered in Norwalk, Connecticut. The firm provides a variety of plumbing services such as process piping, prefabrication, and air and water balancing.
By the end of 2022’s December quarter, 29 of the 943 hedge funds polled by Insider Monkey had bought EMCOR Group, Inc. (NYSE:EME)’s shares. Out of these, Cliff Asness’ AQR Capital Management is the firm’s largest investor as it holds a $63 million stake that comes via 428,286 shares.
7. Canadian Tire Corporation, Limited (OTCMKTS:CDNAF)
Latest 12 Month Revenue Estimate: $13.09 billion (1CAD = 0.74USD)
Canadian Tire Corporation, Limited (OTCMKTS:CDNAF) is a Canadian firm headquartered in Toronto, Ontario. The firm operates as a diversified retailer that also sells a variety of plumbing supplies such as pipes, pumps, and faucet repair parts.
6. W.W. Grainger, Inc. (NYSE:GWW)
Latest 12 Month Revenue Estimate: $15.2 billion
W.W. Grainger, Inc. (NYSE:GWW) is an American firm headquartered in Lake Forest, Illinois. The firm sells plumbing equipment and pumps. Some of its products include drains, drinking fountains, faucets, gaskets, water line connectors, plumbing valves, toilets, water heaters, plumbing hoses, and water filtration systems among others.
34 of the 943 hedge funds polled by Insider Monkey for their December quarter of 2022 investments had owned a stake in the company. Out of these, W.W. Grainger, Inc. (NYSE:GWW)’s largest investor is Jim Simons’ Renaissance Technologies which owns 185,100 shares that are worth $102 million.
Compagnie de Saint-Gobain S.A. (OTCMKTS:CODYY), W.W. Grainger, Inc. (NYSE:GWW), CRH plc (NYSE:CRH), and Lowe’s Companies, Inc. (NYSE:LOW) are some of the largest plumbing supply companies in the world.
Click to continue reading and see 5 Biggest Plumbing Supply Companies in the World.
Suggested Articles:
- 15 Biggest Airplane Manufacturing Companies in the World
- 25 Best Countries to Start a Business
- 21 Next Generation Battery Technology Companies
Disclosure: None. 20 Biggest Plumbing Supply Companies in the World is originally published on Insider Monkey.
