Canadian Electrical Wholesaler

manufacturing relationships By Paul Eitmant

I know most of you think that things are different today than they were few years ago. However, as I look back over 40 years at electrical distributors’ relationships with manufacturers, I’m reminded of an old saying, “The only thing you can count on is change.” Back in the 70s we had national, regional and local independent distributors who had strong relationships with their primary manufactures. In addition, a typical distributor would have 25% of their business in wire and cable, 25% in lighting products, 25% in motor controls, and the remaining 25% in electrical products and accessories.   Typically, full line electrical distributors had strong relationships with three to five manufacturers in each these major categories:
•    wire and cable
•    lighting
•    motor control

However, for the remaining 25% of a distributor’s business there could be as many as 100 to 160 different manufacturers. Most of us refer to this time as “the good old days.” Things were simple if you had the product in stock and available at a good a price; we entered and shipped the order. This was before we had an extra 5% discounting, buying/marketing groups, and an avalanche of acquisitions in the electrical distributor or in manufacturing side of the fence.

Now we’re in 2014 and things have changed. Today we have international distributors in Canada as well as manufacturers growing their product offerings either through in-house product development or the acquisition of other companies.

Things that have stayed the same
The following list contains just a few examples.
•    relationships between distributors’ and manufacturers’ management teams are still a major contributor to sales growth for both parties
•    electrical distributors still stock, take lines of credit from the end user, and multiply manufacturers’ sales and marketing efforts at a local level
•    managing relationships with end users (contractors, industrials, utility, hospitals, schools, OEMs, etc.) are still a primary role for the electrical distributor
•    training and educational seminars

Things that have changed
As stated above, these are just examples for consideration. Most of you deal with these issues every day:
•    market growth. In 2003 the total electrical market in Canada was $5.4 billion. By 2013 it had grown to $7.4 billion
•    market share controlled by national and International electrical distributors. It just keeps growing
•    fewer electrical manufacturers, representing a larger share of distributors’ business, as a result of  industry consolidation and product line expansion
•    the growing role of buying/marketing groups in marketing/sales efforts at the distributor and manufacturer level
How these changes could affect your future decisions
Acquisitions by distributors and manufacturers will continue. The question is, how will business decisions today and in the future affect the big boys as well as the smaller manufacturers and independent distributors.
 
Today, from 12 to 20 manufacturers represent 65% to 80% of total electrical distributor sales. Does this same percentage also represent the profitability and value of those particular distributors? If the answer is no, then smaller distributors could be more profitable. Therefore, the big boys may control a larger share of manufacturers’ sales but growth in manufacturers’ profitability may actually come from the smaller distributors representing the 1% of total sales. And if so, are manufacturers who focus most of their time and effort on larger distributors missing growth opportunities offered by those smaller, independent distributors?

Paul Eitmant is President and CEO of IP Group International, which serves the needs of business-to-business enterprises in over 30 countries worldwide by adding specialized expertise to the business planning and implementation process; Tel: 480.488.5646480.488.5646; This email address is being protected from spambots. You need JavaScript enabled to view it..

Contribute Your Product Knowledge to Develop the Industry’s Harmonized Data Model (HDM)

IDEA Harmonized Data ModelHave you heard about the industry’s Harmonized Data Model (HDM) initiative? IDEA, in partnership with NAED, is calling all product experts to get involved and be recognized by the industry. People who join the Product Expert Task Force will impact the future of the electrical distribution channel.

In the next 6 months, subject matter experts (SMEs) will be harmonizing the categorization for dozens of product categories. It’s an opportunity for industry experts to participate as a SME in the HDM initiative.

 

 

 

For more information Go Here.


 

 

McKenna

By Rhonda Cox, Regional Sales Manager, Western Canada, EGLO Canada

It is with pleasure that EGLO Canada annouces the nomination of McKenna Agencies as our representation in the specification market as well as electrical distributor channel for the markets of Alberta, Yukon, Northwest Territories and parts of B.C.

Covering various interveners within the specification market (engineers, architechts and designers), McKenna Agencies is a privately-owned-andoperated company whose history under its current ownership dates back to 1988. 

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Sonepar CioffiRenato

Sonepar has officially signed an agreement for the acquisition of 100% of shares in CioffiRenato. Founded in 1974, CioffiRenato is a company active in the distribution of electrical material operating in the Lecce province, with its headquarters in Casarano.

In 2021, with its two branches serving all the area, the company recorded sales of around €10 million. It employs 17 associates and 2 sales representatives. Thanks to this acquisition, Sonepar, already present in Puglia with six branches, will strengthen its business in the region.

 

 

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Chris Farrah

Electrozad have recently announced the retirement of Sales Representative Chris Farrah, on July 29th, 2022. Chris began his career with Electrozad on February 20th, 1983. His first position was doing deliveries as a truck driver, then advanced to a warehouse position, then a Customer service/Counter sales representative.

Finally in 1991, Chris was promoted to the position of Sales Representative where he continued to excel and increase his relationships with customers and vendors for the remainder of his career. Chris had been a valuable member not only of Electrozad's business but of the Electrozad family too. 

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Franklin Electric

 

Franklin Electric Co., Inc. released its third annual Sustainability Report this month, once again providing transparency, insight and data related to the Company’s performance toward Environmental, Social and Governance (ESG) initiatives and goals. The commitment to these initiatives and goals led the Company to be named to Newsweek’s 2022 list of America’s Most Responsible Companies.

This year’s report includes several details related to product advancements, employee health and wellness programs, and manufacturing initiatives. 

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Changing Scene

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Doug Bunting

I am pleased to announce the appointment of Doug Bunting as Senior Sales Manager, Western Ontario District effective Aug 2nd, 2022. Doug will continue to report directly to me. Doug is a well-known industry veteran who has held many leadership positions over his 35 years with Westburne.

In this role, Doug will drive commercial sales activities and will help recruit, mentor, and develop our team of commercial account managers, branch staff, and project managers. He will focus on accelerating sales growth in the Western Ontario District and will play a key role in supporting vendor and customer relationships.

 

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Greg Parsons

It is with mixed feelings that Stanpro recently announced that Greg Parsons, Vice-President of Sales, will be retiring at the end of the year. Greg has been with Stanpro for the last 18 years as well as four years with Standard prior to joining Stanpro. Greg has been a key contributor to the success and growth Stanpro has known. He has been the face and leader of the sales force; he has built strong long-lasting relationships with customers and partners and he has been a pillar and mentor for many.

With Greg retiring, Stanpro are very pleased to announce the nomination of Adam Silverman as the National Sales Director. This nomination is effective immediately. 

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Jennifer Penton

Magic Lite is proud to announce the appointment of Jennifer (Jen) Penton to the position of National Sales Manager. Jen joins the team with a proven track record having spent the last 10 years in business development and project management with engineering consulting firm GHD.


Prior to this she earned a PhD at the University Of Western Australia. As the daughter of Magic Lite founder and CEO Tom Penton, Jen is very familiar with the company and its operations and is looking forward to bringing her passion and drive to the family company.

 

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AES Acquisition

RESA Power, LLC has recently announced the acquisition of Advanced Electrical Services, Ltd. Based in Alberta, Canada, Advanced Electrical Services (AES) is a NETA accredited company that has two locations in Calgary and Edmonton from which it has been providing electrical testing services since 2008 throughout Western Canada.

AES specializes in providing medium and high voltage services and products into the renewable energy, mining, commercial, utility, and oil & gas market segments in Western Canada. RESA Power was acquired by Investcorp, a leading global alternative investment firm, in December 2021 and this marks the first add-on acquisition under their ownership.

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Peers & Profiles

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Illumisoft Lighting is an innovative company headquartered in Ottawa that focuses on suspended ...
Electrimat is an independent Quebec-owned company that has specialized for 40 years in the ...
In July, Eaton announced that Vice President, Channel – Electrical Sector, Matt Cleary would be ...
Mission Technical Solutions is a recently established sales agency founded by industry veteran ...
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