Founded in 1956 as a manufacturer, Watsco shifted its focus entirely to distribution in 1989 and has since grown into the dominant player in the HVAC/R supply chain. The company generates the majority of its revenue from the sale of HVAC equipment, with the remainder coming from other HVAC products and commercial refrigeration supplies. Watsco operates through a vast network of nearly 700 locations, serving over 125,000 active contractor customers. A key competitive advantage is its exclusive distribution rights and joint ventures with major original equipment manufacturers (OEMs) like Carrier Global. By leveraging technology, e-commerce platforms, and a decentralized operating model, Watsco provides critical inventory availability and logistics support to local contractors in the replacement and new construction markets.