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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].