'Data-Driven' Culture Fueling Watsco's Growth - Modern Distribution Management

Log In

‘Data-Driven’ Culture Fueling Watsco’s Growth

Distributor reaping benefits of tripling IT employee count and increasing technology spend.

When HVAC distributor Watsco Inc. announced record sales and income during its third-quarter earnings report this week, CEO Albert Nahmad was quick to credit the company's strategic focus on technology for the stellar performance.

Calling this "the most-exciting part of my career here," Nahmad said Miami, FL-based Watsco is succeeding in the digital age by investing "more money than anybody else that we compete with."

"We are looking to use our scale and size to bring technology and innovation to our business and our industry," Nahmad said. "Our investments have been in the development stage over the last two years and are now in various stages of implementation in our business units."

In the past few years the company has almost tripled its number of technology employees, from 60 to 170, and increased its annual run rate for technology-related costs to $20 million. Watsco also launched mobile apps in e-commerce "to enable customers to buy from us 24 hours a day every day, using the industry's largest source of digitized product information, which is presently over 300,000 SKUs," Nahmad said.

It also worked to create a "data-driven culture by developing business intelligence and data analytics capabilities to provide insight and support for greater decision making by our 700 profit-and-loss managers," Nahmad said. Watsco also is optimizing its supply chain through software implementation and targeting material reduction in infrastructure costs to increase operating margins.

"I don't care whether it's in the industry or some of these online companies. We have such a fulfillment capability with all the locations that we have and … the capital to invest in technology and compete with anybody," Nahmad said. "So, this is a very exciting time. This will separate us more and more from everybody else. We will open up channels of distribution online that haven't existed in the industry before."

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.