Canadian Electrical Wholesaler

 

October 17, 2016 

By John Kerr

With the recent publishing of our annual Pathfinder Report we get a perspective few have of the industry. Annually this journey allows us many touch points on the market and a view of the evolving sources of supply few others see. They say there is nothing as constant as change, but what are you and your teams doing to address it?

With increasing competition coming at the full-line channel model from a myriad of directions, many electrical wholesalers in Canada are for the first time taking stock of who and what they must deal with in the future.

Traditional full-line models are being attacked by new specialty and focused hybrid type distributors that offer technical expertise and more often than not newer brands as well as those familiar to us here in Canada. The full-line model no longer holds its dominant position that once approached 80%. 

While the lighting market rolls along and has most recently bloated line cards significantly, other segments like wire and control continue to roll along with more aggressive stances than before.

The control segment is a huge market and its crossover between industrial and commercial allow it a nice foundation to roll more easily with shifts from industrial to commercial, for example.

The wire distribution model is being stood on its head as Anixter appears headed to attack the full-line model as it increases its product offering to its unique client base.

Electrical wholesalers in Canada have been a bit slow to get off the mark as well in their collective approach to adopting the Internet and online offerings. Realizing this is an important initiative, many have spent considerably in establishing these sites, only to fall victim to a marketing approach used to communicate to who they know and not to who they don’t. What many forget is they are now able to attract new types of customers from a wider geography that wasn’t previously available. More importantly, they are able to compete and attract customers they did not know.

The total available electrical market here is approaching $10 billion, and never before have there been so many companies competing for their piece of this. Control, wire and lighting distributors are in fact building their share.

All this sets the stage for a challenge to building your war room and a more detailed competitive and marketing analysis. 

Here are a few questions for you to ask and challenge your company.

1.     Have we really looked at our competitive landscape?

2.     Have we assessed the speciality, lighting, control, utility and wire and others who live in our current territory as to location, size, employee make-up (technical versus sales), etc.

3.     Have we done an audit of the customer base that may be being served by these competitors like panel shops, motor rewind, control and OEM? 

4.     Have we researched the system integrators market in our area?

5.     Have we looked at how to leverage our Internet and or online investments to better serve existing clients and more importantly gain new clients?

6.     What are we doing with our marketing mix?

7.     Have we been selling our own brand effectively?

8.     Do we have the market intelligence to confirm our assumptions?

9.     Do we have a set of benchmarks we benchmark to?

10.   How old is our customer research and market intelligence, and do we have a solid grasp on the total market available to us?       

 John Kerr is Publisher of Electrical Industry News Week. John’s long-standing rapport and knowledge of the electrical market and his commitment to best practices in online publishing drive the electrical industry.ca initiative. His annual Pathfinder report has been the cornerstone of market data for many of the Canadian electrical industries leading companies; This email address is being protected from spambots. You need JavaScript enabled to view it..

 

 

 

OlsonBy Katrina Olson

A recent CEW article by David Gordon caught my eye. The headline was, Are Your Sales and Marketing Teams Inhibiting Growth?

As a marketing consultant, writer, and trainer, I recognized the challenges and barriers that David was writing about. We agree on many issues (and their causes) facing electrical distributors and marketers. But I also hear from marketing people all the time that the C-Suite is hindering their efforts which, in turn, hinders the company’s growth.  

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2018 Electrical North American MeetingOn October 29-31, 2018, the AD Electrical North American Meeting drew over 1,000 attendees. This event attracted 151 first time attendees and representatives from over 362 companies in the United States, Canada and Mexico.

Attendees benefited from a variety of agenda topics, including: Network Meetings, Emerging Leaders Session, and Country-specific Business Meetings. New to this year’s agenda was a SPA Optimization Workshop led by industry veteran Mo Barsema. In addition, members and suppliers also attended a panel discussion on managing and measuring your digital success.

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CEW 6 HR 400People with low levels of coping skills are at higher risk for mental health issues and mental illness than those with high levels. Gaps in coping skills inhibit the ability to solve problems and to make healthy and effective decisions.

To examine how coping skills can predict health outcomes, Dr. Bill Howatt facilitated a doctoral research study that examined the question: “What role does an individual’s coping skills have in predicting psychological and physical health outcomes?” The study found that coping skills mattered and were, in fact, a moderator that partially explains why some individuals had better physical and psychological health outcomes than others. The study concluded that when combining a person’s coping skills with their perceived stress levels, coping skills were significant in predicting which employees were at more or less risk for health issues.

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Changing Scene

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Desdowd Inc. has been chosen to serve as Thermon’s manufacturer's agent for the province of Quebec ...
Gerrie Electric Wholesale Limited’s website has a fresh new look but continues to offer the same ...
Following a record 2018, Westburne continues its investment in its British Columbia team with two ...
Cree, Inc. has signed an agreement to sell its Lighting Products business unit, which includes the ...
On March 1 Eaton announced intentions to spin off its lighting business, creating an independent, ...
John Wade’s tenure of over 25 years working in the electrical industry in various capacities were ...
At least 17 privately-owned companies in Canada’s electrical industry continue to earn Canada’s ...
From February 25 to 27, 2019, AD welcomed more than 280 AD independent distributors and service ...
Liteline Corporation has named Eric Teacher as Liteline's newest Regional Sales Manager — ...
  The Canadian Electrical industry is at the forefront of innovation. Our products help ...

 

 EFC Announces 2018 Marketing Awards Winners

2018 Marketing Awards WinnersElectro-Federation Canada (EFC)’s Marketing Awards program recognizes member organizations that demonstrate marketing excellence and innovation within the Canadian electrical manufacturing and distribution industry. Winners of this year’s awards were recognized at EFC’s 8th Annual Future Forum, held earlier this month. (Shown in photo: EFC President and CEO Carole McGlogan with representatives from Bartle & Gibson, winners of the Integrated Marketing Award — distributor under $50 million.)Electro-Federation Canada (EFC)’s Marketing Awards program recognizes member organizations that demonstrate marketing excellence...

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CEW 6 ShowReport 400Leaders and innovators from business, government and the education sector gathered for this ABB premier collaboration event. More than 11,000 delegates attended the bi-annual ABB Customer World Houston 2019 from March 4 to 7 in Houston, Texas. ABB’s latest pioneering technologies were displayed over 150,000 sq ft of a colourful, buzzy display of futuristic conveyor belts and robots, an ABB Formula E Generation 2 car, and much more groundbreaking technology. ACW attendees also took part in keynote sessions and seminars focused on realizing the tremendous productivity and performance improvements that digitalization delivers for companies of any size and from any industry.

In his keynote address at the event, ABB CEO Ulrich Spiesshofer explained how ABB was shaping its business for leadership in digital industries to support its customers in a time of unprecedented technological change and digitalization. He was joined by Hewlett Packard Enterprise CEO Antonio Neri. 

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Changing Scene: 

Cree logo 2 400Cree, Inc. has signed an agreement to sell its Lighting Products business unit, which includes the LED lighting fixtures, lamps and corporate lighting solutions business for commercial, industrial and consumer applications, to Ideal Industries, Inc. for approximately US$310 million before tax impacts, including up-front and contingent consideration and the assumption of certain liabilities. Cree expects to receive an initial cash payment of US$225 million, subject to purchase price adjustments, and has the potential to receive a targeted earn-out payment of approximately US$85 million based on an adjusted EBITDA metric for Cree Lighting over a 12-month period beginning two years after the transaction closes.

The agreement continues Cree’s strategy, announced in February 2018, to create a more focused, powerhouse semiconductor company, providing growth capital for Wolfspeed, its core Power and RF business, and equips Cree with additional resources to expand its semiconductor operations. The deal also enables Cree Lighting to gain additional global focus, channel support and investment as it becomes a growth engine for the IDEAL team.

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Peers & Profiles

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On a regular basis, our publications profile members of our industry through their responses to a ...
First and foremost, sitting down with Susan Uthayakumar feels more like sitting down and conversing ...
Sales of electrical supplies from full-line electrical distributors capture the geographic ...
Laura Dempsey has been working as an outside sales representative for E.B. Horsman & Son for ...
Michael Gentile, President and CEO of Philips Lighting Canada, has had a long and distinguished ...

 

 Young Leaders: Taylor Gerrie

Taylor GerrieOn a regular basis, our publications profile members of our industry through their responses to a Q&A. It’s a way of recognizing industry movers and shakers, and helping our readers get to know them better. 

Recently we launched an initiative with Electro-Federation Canada's Young Professionals Network to include profiles of up-and-coming leaders. We provided the list of questions below to Taylor Gerrie, Automation Account Specialist at Gerrie Electric Wholesale Ltd. in Burlington, Ontario. Here are Taylor’s responses.

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Susan Uthayakumar, President of Schneider Electric Canada: Driving Success

Susan UthayakumarBy Owen Hurst

First and foremost, sitting down with Susan Uthayakumar feels more like sitting down and conversing with a friend than conducting an interview with the Canadian president of one of the world’s largest electrical manufacturers. Of course, she exudes the confidence and knowledge her position demands, but equally identifiable are an open and engaging nature.

In a recent sit-down, we learned a little about Susan’s history and what drives her to succeed.

To begin, Susan was born in Sri Lanka and immigrated to Canada at a young age. She went to high school in Canada and attended the University of Waterloo where she earned undergraduate and graduate degrees.

Upon completing university Susan began her working career with Deloitte, which she describes as a great starting point as she was surrounded by highly driven and intelligent individuals. She welcomed being in a position that was demanding and helped nurture a strong work ethic. Her work with Deloitte also instilled a great interest in acquisitions, which would serve her well as her career unfolded.

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CEW 3 Perspective 400

We often learn how to look forward by first looking back, or at the very least we realize that despite our best efforts we have not truly advanced quite so much as we had thought. Sure, technology is rapidly advancing. That’s beyond question. But what about our approach to selling it? Have we changed that much in the last 20, 40, 60 years? Inevitably there have been advances and changes in marketing, the Internet causing the biggest shift, but many of the concerns and directives that have driven the distribution and marketing of industrial electrical products remain, or at least planted the roots of the concerns of manufacturers and distributors today. 

To gain perspective of the perceptions and directions of electrical product distribution in 1960, we turn to Edwin H. Lewis. In 1960 Lewis published “The Distribution of Industrial Electrical Products” in the Journal of Marketing.

To fully define electrical product distribution in 1960, Lewis broke his study into several categories. We will follow his direction and provide his insights on the industry in each of the categories he identified.

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Looking Back

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The best memory I keep from CEDA is the way that they accepted me when I came into the business. ...
In the 1930s to 1940s, CEDA’s Western Canada membership was very stable with old line independent ...
Prior to the late 1950s there was little if any involvement in CEDA by the so-called “national ...
  As 2017 marks the 150th anniversary of Confederation, we take a look back at an aspect of ...

Looking BackThe best memory I keep from CEDA is the way that they accepted me when I came into the business. The welcome they gave to me, all of them men. (In those days there were not many women in business.) This welcome I will always remember. CEDA has played a very important role in my success.

One year our conference was in Hamilton, Ontario. Mr. Caouillette, our speaker, got lost and instead of going to Hamilton went to Toronto. I think that that was the longest cocktail hour that CEDA ever had… waiting for him to arrive. Certainly that night the head table and everyone were in good spirits.

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Looking BackLooking BackIn the 1930s to 1940s, CEDA’s Western Canada membership was very stable with old line independent companies like Horsman, Ashdowns, Brettell, Marshall Wells, Electrical Supplies Ltd., etc.

Small electrical distributors just were not acceptable for membership as they did not carry the main-line manufacturers’ goods, publish a wiring device catalogue, or employ four to five salesmen as CEDA requested.

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