Hardware, Plumbing & HVAC Distributors

The 9,400 hardware, plumbing, and HVAC/R distributors in the US consolidate a variety of products from many different manufacturers to offer customers wide selection, reasonable prices, and a single point of contact. Distributors may sell a combination of product categories or specialize.

Construction Drives Demand

Hardware, plumbing, and HVAC distributors depend on construction projects as major sources of revenue.

Consolidation Continues

Distributors continue to expand into new industries and geographical markets or gain market share via acquisitions.

Jul 23, 2026 - Remodeling Index Remains Positive

• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the second quarter of 2026 was 61, down one point from the first quarter, according to a July 2026 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the second quarter, the Current Conditions Index portion of the RMI remained unchanged at 70 compared to Q1 2026. The Future Indicators Index component of the RMI declined by two points to 52. The NAHB noted that the lock-in effect of high mortgage rates may incentivize existing homeowners to renovate rather than move, but that inflation may prompt some projects to be postponed, especially larger ones.
• The New York Times reports that the 21st Century ROAD to Housing Act uses modest federal incentives and regulatory changes to encourage more housing construction. The law rewards communities that ease permitting and zoning restrictions, streamlines some affordable housing inspections, protects build-to-rent development, and removes a costly chassis requirement for manufactured homes. It also directs federal officials to study ways to expand modular construction. Increased housing production and greater use of factory-built methods could raise demand for pipes, fixtures, heating and cooling equipment, tools, and related supplies sold by hardware, plumbing, and HVAC distributors. However, local land-use rules, limited federal funding, high interest rates, and lengthy development timelines are likely to restrain the law's immediate effect on housing affordability and construction activity.
• New US Census Bureau data shows that while more than 90% of US households have air conditioning, adoption varies widely by region, according to Builder Magazine. Washington, Vermont, Montana, California, and Wyoming report the highest shares of homes without cooling systems. The findings suggest builders should evaluate demand at the neighborhood level because statewide averages can mask significant local differences. For HVAC equipment manufacturers, regions with older housing stock and lower AC penetration represent potential growth opportunities for new system installations and replacement demand as consumer expectations and migration patterns increase interest in cooling. In contrast, Southern states such as Florida, Oklahoma, Texas, and Georgia have nearly universal AC adoption, shifting demand toward higher efficiency, durability, and energy performance.
• Home builder confidence in the single-family market fell in July as builders remain concerned about housing affordability, higher construction costs, and elevated interest rates, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), dropped two points to 34 in July 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. July marked the 15th consecutive month the HMI remained below 40, a level not seen since the housing crisis in 2012. The survey also showed that 36% of builders reduced home prices in July to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged from June. While the NAHB noted that the recent enactment of the 21st Century ROAD to Housing Act is a positive step in expanding the US housing supply, it added that more reforms are needed at the state and local levels.

Industry size & Structure

A typical hardware, plumbing, HVAC and refrigeration distributor operates out of a single location, employs about 33 workers, and generates $30.2 million annually.

• The hardware, plumbing, and HVAC/R distributor industry consists of 9,400 companies, employs 315,000 workers, and generates about $284.4 billion annually.
• Most distributors are small, independent operations - 47% operate out of a single location and 78% have fewer than 20 workers.
• Customers include building contractors, residential and commercial builders, dealers, hardware retailers, government accounts, and industrial and institutional customers.
• Large companies include Ace Hardware, Ferguson, MRC Global, Hajoca, Watsco, DNOW (formerly NOW Inc.), and HD Supply.