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..

 

 

In-House or Managed EDI: How to Determine the Right Fit for Your Business

IDEA  EDIElectronic data interchange (EDI) is the most commonly used B2B eCommerce technology. Based on standards, this computer-to-computer exchange of business documents between trading partners increases efficiency while cutting costs by simplifying processes across the entire supply chain.

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CEW-31-UNEnvironment-WorldAccreditation-400.jpgClimate change poses very real risks to people and the environment. Extreme weather events like the destructive storm we just saw in Ottawa that left thousands without electricity for days, and damaged homes and critical infrastructure, are a stark reminder that we must take action, now.

Countries around the world agree – achieving a more sustainable future is a top priority. Commitments like the UN’s Sustainable Development Goals (SDGs), the landmark Paris Agreement and the ISO London Declaration, bring nations into a common cause to undertake the ambitious efforts it takes to tackle one of our time’s most critical challenges.

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Selling ServicesBy David Gordon, President, Channel Marketing Group

As every distributor knows, there is a labor and driver crisis in every market. It affects hiring warehouse staff as well as drivers. Today’s competition for labor is further exacerbated by competitive environments that can pay $20 / hour plus benefits (aka Amazon and others.) Further, within the electrical industry, many electrical contractors are faced with their own staffing challenges.

Industries have talked about fee-based services and many industry leaders are seizing upon the opportunity to diversify their income stream, improve profitability AND add a valuable service to their customers.

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Eplan Elements CollaborationWhy Use Elements Collaboration

Elements Collaboration represents a new alternative to conventional Project Data Management softwares. It is is a low cost and effective alternative to your dedicated PDM. Here's why:

EPLAN is built from the ground up with features you value in a Project Data Management software. As such, it is faster and can be better integrated to your workflow. This means that you can potentially save on the cost of an additional software without sacrificing productivity.

 

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BirdRecently, Bird Construction Inc. was pleased to announce that it has been selected to lead the design and construction of a state-of-the-art, net-zero plant protein processing facility for Phyto Organix Foods Inc. in Strathmore, Alberta. The value of the progressive design-build contract is approximately $125 million.

Bird will lead the design and construction of the facility and the 3D connectivity to the processing equipment. The 100,000 square foot facility will be the first net-zero plant protein processing facility in North America, employing industry-leading technology solutions to recycle and reuse water, leverage low emission energy sources, and reduce overall energy consumption. 

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Statistics CanadaReal gross domestic product rose 1.1% in February, the largest monthly growth rate since March 2021. Inflationary pressure remained in April 2022, when the Canadian Consumer Price Index (CPI) rose 6.8% year over year, a slight increase from March 2022 (+6.7%).

After surging by nearly 340,000 in February, employment rose by an additional 73,000 in March as Omicron-related restrictions eased, and was little changed in April. After reaching a record low of 5.3% in March, the unemployment rate edged down 0.1 percentage points to 5.2% in April.

 

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Become a Wiser Approved Installer

SchneiderGet access to exclusive benefits, product discounts and resources that will help you drive more business, and lower energy bills for your clients.

 

 

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Changing Scene

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AD and TORBSAAD and Torbsa Limited are announcing an agreement to merge the two groups. The merger is expected to close July 1, 2022. Established in Ontario in 1966, Torbsa is a shareholder-owned group made up of twenty-seven independent building supplies distributors, with 48 locations across Canada.

Rob Dewar, president of AD Canada, discussed how Torbsa's strong leadership and financial success made the buying group an ideal match for AD. Rob Dewar, president of AD Canada, discussed how Torbsa's strong leadership and financial success made the buying group an ideal match for AD.

 

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IDEAThe Industry Data Exchange Association, Inc. (IDEA), in collaboration with the National Electrical Manufacturers Association (NEMA) and the National Association of Electrical Distributors (NAED), announces the launch of the Harmonized Data Model (HDM) Advisory Council.

The Harmonized Data Model (HDM) initiative is defining a unified data model in IDEA Connector that enables manufacturers to easily syndicate to multiple formats and empowers distributors’ eCommerce experiences with more consistent, normalized product data.

 

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AimliteAimLite is proud to announce that its Products Warranty has been awarded certification by the National Lighting Bureau’s (NLB) Trusted Warranty Program. The NLB Trusted Warranty Program recognizes excellence in lighting companies that meet objective quality standards and practices regarding their warranty administration.

In order to obtain that certification, AimLite was assessed based on five criteria: formal warranty process, warranty language, length of business/warranty insurance, technical evaluation, and claims review evaluation. By complying with the five evaluation criteria, AimLite clearly demonstrates its commitment to providing quality products and services to its customers.

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EIN FE LEED 400

Franklin Empire Inc., the largest independently owned electrical distributor in Canada, and MONTONI are excited to launch the construction of the company’s new headquarters designed to support future growth. This family-owned 4th generation company is also celebrating its 80th anniversary this year. In summer 2023, Franklin Empire employees will move into their new facility of nearly 190,000-square-feet, conveniently located along Autoroute 40 at the junction of Autoroute 13 in Saint-Laurent and close to the Ericsson and VSL campuses developed by MONTONI. The building, which will be targeting a LEED certification, will triple the firm’s warehouse space and double its office area, while improving the customer experience and providing employees with a work environment adapted to the new reality of today’s job market.

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S&C Electric CompanyS&C Electric Company recently announced Anders Hultberg as its new president of S&C Electric Canada Ltd. Hultberg will assume his new role as the existing president, Angelo Gravina, transitions into retirement.

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Peers & Profiles

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Larry SternThe Industry Data Exchange Association, Inc. (IDEA), the electrical industry-endorsed technology service provider and eBusiness standards body, announces its 2022 Board of Directors. Larry Stern, President of Standard Electric Supply, is the IDEA Board Chair for the coming year.

“Larry’s experience and strong leadership are a driving force to tackle industry challenges and pursue IDEA’s roadmap. Today, with the increasing complexity and the increasing volume of data that needs to be exchanged, IDEA is focused on our mission to facilitate the exchange of complete, high-quality transactional and eCommerce product content and serve as the standards body for the electrical industry.” said David Oldfather, President and CEO of IDEA.

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