Canadian Electrical Wholesaler

David Gordon

February 7, 2018

by David Gordon

In Part 1, David Gordon discussed IoT lighting, mission critical service, wireless IoT solutions, and competing wireless protocols. In this issue, new wireless solutions, utility lighting control rebates, and challenges for distributors.

The recently released Bluetooth Mesh standard was developed with lighting as a target application, but many commercial lighting manufacturers are currently developing or supporting their own proprietary or existing Zigbee mesh ecosystem until Bluetooth Mesh is field proven. Zigbee is an open standard, and with more than one hundred million devices deployed, in theory sensors, switches, and lights can interconnect independent of fixture manufacturer. Bluetooth also has compatibility built-in, but researchers have raised concerns that Bluetooth Mesh’s communication algorithm, combined with heavy sensor integrated luminaires, could generate extreme heat and so much data that it overloads a network.

New wireless solutions use a single radio-chip to perform multiprotocol communications that address some of the challenges with all of the protocols available. One example is to combine ZigBee plus Bluetooth. The two complementary protocols enhance user experience and security. Luminaries can be commissioned easily with a mobile device via Bluetooth, while the primary network uses another secure protocol with mesh capabilities like ZigBee, Thread, or a manufacturer’s proprietary solution. Manufacturers can achieve all of this with a single radio chip that reduces size and cost, or with a faster option using pre-fabricated modules that include all of the software, antennas, and wireless know-how.

Utility rebates and the DLC NLC spec

There are interesting things happening with the Design Lights Consortium (DLC) Networked Lighting Controls (NLC) spec as well as utility rebates based on the DLC NLC spec. This year, the DLC analyzed savings from NLC installations and found an average of a 47% savings across all buildings, but this was extremely variable by building type and from building to building in the same use or type. This DLC NLC analysis will likely be used by utility rebate programs to not only expand the number of incentive programs for NLC systems, but also increase data and reporting requirements, in addition to meeting the technical NLC spec.

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Note: While other companies may offer solutions, as of the above date, they are not DLC NLC qualified. Distributors should not view this list as “endorsed / recommended” lines by Electrical Wholesaling and/or this article’s authors.

More than 20 utilities and other energy efficiency program sponsors now require networked control systems be on the DLC NLC QPL to qualify for their incentives. Some have simple prescriptive rebates (per luminaire), while others have performance rebates (per watt saved). For more information on lighting control rebates, check the “Utility Rebates for Networked Lighting Controls” on https://lightingcontrolsassociation.org.

Challenges for distributors

There are "lots of companies", and technologies, in the space which can make it daunting. This is coupled with the fact that controls are a small percentage of a distributor’s business and customer demand, at this time, is low.

But the opportunity is coming.

Selling of the technology requires commitment. This is not a product where salespeople “accept” an order. If they do, someone has speced the job and the opportunity will devolve to a price game.

Selling infers generating demand, which requires sales training, continuous product education, marketing, recommending the “right” product for the solution (and hence understanding customer needs), and then there is the potential for add-on services and revenue streams. And the “sale” for lighting controls will frequently occur at higher levels of customer contacts than the traditional electrical distributor calls upon. The applications and benefits of the sale are more conceptual and focus on information gathering, cost reduction and revenue generation. It is not solely a feature/benefit sale.

Leading companies in this space are educating management, their salespeople and their customer, and are investing in lighting control specialists. And some are targeting market segments to pursue and proactively generate demand.

A concern for distributors is their contractors. With many distributors being contractor oriented, distributors are waiting for contractors to request. Waiting equals quoting, not selling. Consider how you can arm your contractors, or preferred contractors, with tools for them to recommend… or to bring you into an opportunity as the “local expert.” Or consider how you can differentiate yourself in the market and drive business to contractors who have expertise in installing controls.

From a supplier support viewpoint, distributors should consider the pros/cons of solely understanding, selling, marketing and training on proprietary systems, as well as having knowledge and access to open systems. This is an Apple vs. Google scenario. You need to support your key package lighting lines, but you also need alternatives so that you can make the best recommendation and/or value engineer projects with technology that enables you to mix and match fixtures.

And don’t be afraid of FOBO (fear of a better option). These are technology platforms. They will change and this change requires you to maintain your product knowledge but it also can provide a potential upgrade revenue stream.

Of concern is that if electrical distributors do not take the lead, manufacturers will seek the channels that will generate the revenue. This could be direct sales, reps going direct as well as selling through other channels (which they are starting to do). And we have not touched on the integration into building management and security / alarm systems which can open the door to distributors from those channels.

Controlling your IoT lighting solutions

IoT. IIoT. Smart. Connected. Connectivity. The bottom line is that whatever term you prefer, it comes down to technology. The nature of technology is forever evolving. What exists today will change as tomorrow’s solutions are already in development. This creates relationship, purchasing, marketing, training, sales and other challenges for manufacturers and their channels, as well as distributors and their “supply chains”.

Decisions need to be made by distributors whether they plan to be a market leader and create demand and/or add value or provide traditional distribution services and be dependent upon others to create demand. Manufacturers can try to be the next “Apple” or participate in a “Google” ecosystem.

We’re in the very early innings of a rapidly changing market. We’ve passed the “bleeding edge” as the technology is proven and sales potential determined. Now the market is positioning to the cutting edge and will quickly be determined by those who want to be on the leading edge. Waiting to decide may relegate you to being on the bench.

David Gordon is President of Channel Marketing Group. Channel Marketing Group develops market share and growth strategies for manufacturers and distributors and develops market research. CMG’s specialty is the electrical industry. He also authors an electrical industry blog, www.electricaltrends.com. He can be reached at 919-488-8635 or This email address is being protected from spambots. You need JavaScript enabled to view it..

Read Part 1 here: www.canadianelectricalwholesaler.ca/latest-news/1954-making-sense-of-the-rapidly-changing-iot-lighting-market

 

Hubbell

 

The University of Strathclyde in Glasgow, Scotland has named Hubbell Lighting executive licensee of a technology that can suppress bacteria in the air and on surfaces using a narrow spectrum of visible light. The high intensity narrow spectrum lighting technology has been shown to reduce bacterial pathogens in the environment at a far greater rate than cleaning and disinfection alone.

“Our agreement with Hubbell Lighting opens the door for the food and beverage industry and other sectors to benefit from our continuous disinfection technology, helping them keep consumers even safer,” says Scott MacGregor, vice-principal of the University of Strathclyde and leader of the research team that developed the technology.

Read More

 

Study


A confirmation: the winds of change are now howling.

Several years ago, in a workshop at Electro-Federation Canada’s annual conference, a roundtable session described and debated the numerous disruptive technologies that are forcing us to think differently.

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Michael Gentile, President and CEO of Philips Lighting Canada, has had a long and distinguished career in the electrical industry and more recently the lighting industry. None of this is by chance. Always in decision-making circles since beginning his career, Michael spends the first 10 years first at Siemens, and subsequently in lighting at Osram as Vice President Finance and Vice President Sales and Marketing. After that, he joins Philips Lighting.

Michael agreed to share a few moments with us to discuss his career trajectory, the industry, trends, worries, and wishes. A tour of his career is also a tour through a key period in the industry and a reflection of its adaptability to new technologies — from an expert's point of view.

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Changing Scene

  • Prev
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Electro-Federation Canada’s 6th Annual Future Forum, Thinking Smarter — Channel Products, Energy, ...
In partnership with Habitat for Humanity Québec, Convectair is donating two heating units ...
Do you know an industry member who has greatly contributed to the Canadian electrical industry and ...
Kendra Smith will be joining the company’s Nationals Accounts team as the Key Accounts ...
Blueway has been added as a division within Sonepar Ontario, reporting directly to Sonepar Ontario ...
Pilz Canada has added Marcus Graham to its family. Marcus is now serving a wide base of customers ...
Christopher Balleine has been appointed Stelpro’s Sales Representative, Maritimes, ...
Based in Ottawa, Lafontaine will be responsible for building on Schneider Electric’s ...
Bill Smith from Electrozad Supply Company Limited has been selected as this year’s recipient ...

Peers & Profiles

  • Prev
Sales of electrical supplies from full-line electrical distributors capture the geographic ...
I've known John Sencich since CEW began publishing. He agreed from the outset to be part of the ...
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 ...
Gordon MacDonald is a cheerful, driven individual who loves to be challenged, a trait that suits ...
  Jordan Prins is an account manager at Wesco Distribution in Abbotsford, British Columbia. ...
Mike Marsh, President and CEO of SaskPower, has been a leading figure in Saskatchewan’s electricity ...
I didn’t wake up one day and go, “I want to work for my dad!” Actually, it was ...
    Ouellet Canada is celebrating 50 years in the Electrical Heating ...
  On February 27th Lumen opened their 36th branch in Ottawa, Ontario. ...

Laura Dempsey

Owen Hurst

Laura Dempsey has been working as an outside sales representative for E.B. Horsman & Son for over 15 years, and is a member of the BCEA U40 network of young professionals. She lives in Langley, BC and is proud of her position and work with E.B. Horsman, particularly as she is the second Dempsey generation to work for the company.

Laura’s mother Shelly has worked at E.B. Horsman for over 25 years, and instilled in Laura a determination to succeed. Laura followed in her mother’s footsteps after witnessing how much her mother enjoyed her work and the people she works with at E.B. Horsman.

Read more: Laura Dempsey

Laura Dempsey

Line Goyette

I've known John Sencich since CEW began publishing. He agreed from the outset to be part of the newsletter’s Editorial Board. His contribution was regular and sustained. Always present to answer my technical questions, and refer me to the right person for additional information as needed. Always available despite his role as senior leader of an influential company.

Over the past five years, many industry insiders have cited John Sencich when I asked them to name someone who had made a difference in their lives or had inspired them as a leader.

Read more: John Sencich

Looking Back

  • Prev
  As 2017 marks the 150th anniversary of Confederation, we take a look back at an aspect of ...
The resource-based industries of the Maritimes are looking to electronics to make their operations ...
  Electrical distributors must remain in both the electronic and electrical ends of the ...
  The public’s strong interest in energy-saving products should continue in the ...
  Even in a principally agricultural province like Saskatchewan, the impact of electronics ...
Electrical distribution companies operating in British Columbia will continue to get larger while ...
Golden anniversaries are celebrated by the mature, and our industry is allowed to celebrate ...
The last 50 years have been exciting ones for the electrical industry but they won’t compare to ...
The ceiling that had been placed on membership fees remained a point of contention among ...
The year 1982 started on a relatively good note for electrical distributors. Sales in the first ...

DIgitalDigitalization is set to take a strong hold of all business models, transforming how companies access, monitor, engage with and service customers. Today’s customers are not passive consumers; they rely on real-time digital access to information to make purchasing decisions. Businesses must consider how to apply digital technologies and digitized data to connect with customers to help reshape their paths to purchase. This digital lens provides improvements to business functions, operations and overall processes by creating stronger insight and knowledge so businesses can take action.

The path towards digitalization has put the electrical supply channel at an important crossroad: the entire electrical value chain (suppliers, manufacturers, distributors, customers) will need to strongly consider how to move from a traditional model that has served the market well for decades, towards a new model that is connected, smart and highly efficient. But how does the industry evolve from a traditional model to an integrated ecosystem?

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EFC 2018 Scholarship Program

This year Electro-Federation Canada (EFC) will award $156,250 across 62 scholarships supported by manufacturers, distributors and associations.

The annual EFC Scholarship Program reflects an industry that understands its responsibility to attract future talent. In the face of technological, demographic, and socio-economic evolution, the employment landscape is in constant transformation resulting in substantial challenges for companies as they work to define and redefine their recruitment practices. Furthermore, as competition for the brightest and the best of the next generation of business leaders intensifies, it’s more important than ever to engage young people. 

Read more...

 

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