As commercial building owners continue to navigate economic uncertainty, labor shortages and changing customer demands, retrofit and renovation work is becoming a key opportunity across the plumbing market. Supply House Times spoke with Christopher Peterson, director of sales and national accounts at Saniflo, about where the commercial market is headed and how manufacturers, wholesalers, and contractors can adapt.

What are the biggest trends you’re seeing right now in the commercial market?

Christopher Peterson: For the industry, I would say the biggest things are data centers and healthcare, which may surprise some people. When you look at infrastructure, hospitals are doing retrofits and looking at specialized plumbing applications.

Education is another big one. A lot of older facilities are going through renovations. Campuses are making adjustments and upgrades, whether that is water savings, energy efficiency or modernizing older buildings.

For Saniflo, the biggest accelerant is really retrofit and adaptive reuse. Converted office buildings, malls and apartments are taking existing infrastructure and upgrading it. A lot of it comes down to modernizing aging buildings, reducing downtime, addressing staffing issues and making better use of available space instead of relying only on new construction.

Are there specific commercial sectors driving the most demand?

Peterson: Healthcare and hospitality are two strong areas.

In healthcare, aging-in-place applications are important. We offer solutions that work well for aging facilities and for adapting spaces to the needs of tenants or patients. They may need a sink or a bathroom nearby, and the buildings being retrofitted may not already have those facilities in place.

Hospitality is interesting as well. Older hotels are creating spas, adding bathrooms and working toward ADA compliance. We are also seeing demand tied to Airbnbs, rental properties and accessory dwelling units. If someone wants to convert a detached studio or create a rental space, that space needs plumbing.

Multifamily is really about adaptive reuse. For us, that makes a lot of sense because owners do not want to create unnecessary waste, cut concrete or add labor if there is a faster way to complete the project.

Education is another opportunity. Portable classrooms, dormitories and athletic facility expansions all create demand for plumbing solutions that can be installed efficiently.

How are labor shortages impacting commercial projects?

Peterson: It comes down to education and the skilled trades. There are fewer apprentices entering the trades, and we have a retiring workforce. That is a shame because there is a great future in this industry.

Because of that, manufacturers need to help create technologies that allow contractors to do more work in less time. That is where we fit in. In remodeling, time equals money. We provide a quicker solution and give plumbers a way to complete more work efficiently.

Our technology is simple. There is not a lot of labor involved, and you do not need a huge workforce to install it. Most of our installations are six to eight hours of work, so it is a quick in-and-out application.

Across the industry, you are seeing more products designed to streamline installation, whether that is fittings, connections or other plumbing technologies. The goal is to create quick, easy solutions for plumbers.

How are sustainability and water efficiency shaping demand?

Peterson: Key drivers include LEED requirements, water conservation mandates and carbon reduction goals. Here in Arizona, water conservation is a major need.

For Saniflo, the reuse aspect is important because our products can help avoid destroying concrete or using additional materials compared to traditional plumbing methods. We can lower the amount of construction material needed to get the job done.

Low-flow toilets are also part of the conversation. We continue to see demand for smarter flushing systems and ways to reduce water use while also lowering construction disruption and material needs.

What role is retrofit and renovation playing compared to new construction?

Peterson: Interest rates are a major factor. New construction is expensive, and there are other financial pressures, including economic uncertainty and questions about whether spaces can be filled.

If there is a more affordable way to use existing infrastructure, why not capitalize on it? Retrofit work can improve occupancy and make a building more adaptable for companies looking for space.

It is also quicker in many cases. New construction has improved with modular and prefabricated methods, but retrofit work can reduce permitting challenges, avoid unnecessary labor and allow smaller crews to complete projects faster.

What is the current reality around supply chain, inventory, lead times and pricing?

Peterson: For us, we have not been hit as hard. Saniflo takes raw materials to finished products, so sourcing has not been as big of a challenge for our production process.

For others, that is not always true. Electrical component shortages, global sourcing risks and tariffs can all impact lead times and pricing. Many manufacturers are also looking at moving manufacturing to North America because they understand those risks.

For Saniflo, we have strong logistics and safety stock throughout the country. Our lead time is about two and a half days. I talk to other manufacturers and distributors, and it is all over the board. I have heard of some lead times being years out, which makes it very difficult to price projects.

What should wholesalers, contractors, and facility managers prepare for over the next 12 to 18 months?

Peterson: Economic uncertainty is the number one factor. Labor shortages are also a major challenge.

Education is another key area. There are more digital resources now, and people can learn right on their phones. When I started with Saniflo, you had to get 30 people in a room to train them. Now, you can send out a video.

For wholesalers, labor costs and retention are major concerns. You need people in the warehouse, on deliveries and at the counter. Inventory costs are also important. Wholesalers need to make sure they are carrying the right products and using analytics to make good decisions.

What is the biggest takeaway for the commercial market?

Peterson: Our industry is rewarding solutions that reduce labor, improve speed of installation, support retrofit applications and provide a sustainable strategy moving forward.

Diversification is important, whether you are a wholesaler or manufacturer. If you stay on top of trends, stay adaptive and provide the solutions plumbers and tradespeople are looking for, you will be successful.