Hardware, Equipment, and Services Distributors: Channel Strategies for the Water Sector

U.S. infrastructure is having a moment, and leading hardware, equipment and services distributors—key vendor channel partners—are adapting their strategies to meet the industry’s changing requirements. Major national players like Core & Main, Ferguson, and DXP Enterprises are calibrating their own geographic and product & service strategies to address the growing complexity of the water sector. It is increasingly influenced by new digital solutions, advanced treatment, and (most importantly), customer requirements for specialized training and support. 

At a market level, which is highly fragmented among local and regional suppliers, the enterprise value of the three leading companies is US$40 billion. Since 2015, Bluefield Research has tracked a wave of M&A activity among these leading players seeking to expand their reach and offerings. With over 130 M&A deals completed in the past decade—particularly in high-growth regions like the Southeast—distributors are also benefitting from recent federal and state infrastructure spending. 

As the market shifts toward increased hardware and software connectivity, including IoT-enabled monitoring and predictive maintenance, distributors are poised to take the next step in driving operational efficiency and enhanced asset management. The well-established relationships between distributors and end users have given distributors a strong market position and enabled them to lead in sales and critical areas, such as training and aftermarket services.

This Insight Report evaluates channel strategies for hardware, equipment, and services distributors for the water sector. This analysis provides comprehensive analyses of the market trends and evolving company strategies of leading U.S. hardware equipment, and services distributors.