HD Supply Earnings call notes
deflationary and pricing environment and implications for operating leverage, we have not seen a material change in the impact of the deflationary environment versus our last call.
The commodity market continues to be volatile, but as we previously stated, we sell relatively few pure commodity products. We do sell PVC and ductile iron pipe in Waterworks and steel rebar in construction and industrial. As a data point, the rebar categories from construction and industrial has been one of our most improved categories, benefiting from category management processes and disciplines. It is a solid example of the power of category management and value-added offerings for our customers.
Our end market views are unchanged from our disclosure in July. We believe the construction end markets continue to be solid. The most recent housing data shows single family starts up approximately 11% on a year-to-date basis through July, which is generally consistent with our previous expectations of a more moderated extended recovery.
Most of our growth comes from selling more to existing customers. We’ve got longstanding relationships with most of the large REITs and hospitality players in the space. Year over year we typically add a little over 100 salespeople per year, anywhere from 100 to 125. We do that pretty consistently
we participate in an $80 billion market so the question is, would we be adding something else to be in addition to the $80 billion market. The answer is no. When you’re an 8% share play in an $80 billion market, you focus on capturing what you don’t have. And of that $80 billion market Facilities Maintenance is $50 billion of that market.
We keep an eye on all of our competitors. We fear none, we respect all. We know what everybody’s doing in the marketplace. But most importantly we know our customers in the marketplace better than anybody else out there and that’s where we’re going to concentrate all of our efforts.