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..

Economy EmploymentAs a result of widespread measures taken to contain the spread of COVID-19, the Canadian economy contracted 11.6% in April, following a 7.5% drop in March. By the end of May, many businesses had begun to adapt to the new reality by shifting to teleworking, reducing hours, laying off staff, applying for government funding or seeking rent relief.

As pandemic-related restrictions were gradually lifted throughout the summer, the business climate began to improve slightly. For example, real gross domestic product grew 1.2% in August, the fourth consecutive monthly increase, which continued to offset the steepest drops in Canadian economic activity on record that were observed in March and April. 

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Swati Vora-PatelBy Swati Vora-Patel

“As a distributor, we need to build capabilities around experiences, data and the technologies that are driving change… It’s important that we listen, experiment and help lead our customers forward.” Chief Marketing Officer, Distributor — from the book Innovate to Dominate: The 12th Edition in the Facing the Forces of Change Series

Mapping your company’s digital transformation begins with an outside-in approach. 

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COVID AirBy Angela Jamieson and Marc Laplante

The importance of clean air has been thrust into the spotlight with the emergence of COVID-19 and the rapidly spreading infections related to it. Examples have emerged around the world showing how aerosols may be playing a role in transmission; the choir practise in Washington State where over 80% of their members were infected (primary or secondary)1 after their final practice before shutting down for COVID restrictions, or the restaurant in Guangzhou, China where COVID-19 was theorized to have spread according to the air movement from an air conditioning system2. 

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Carol McGloganBy Carol McGlogan


When it comes to marketing and customers, some things never change, while some things are always evolving! The parts that never change for marketers are that we need to be where our customers are, when they need us, and with the right information. The parts that are in constant flux are our customers’ buying behaviours and the technologies available to intervene and influence the customer experience.

COVID-19 has forced us all into new habits both personally and in business. For instance, social isolation has caused us to rely more heavily on technology to fill in the gaps. 

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Changing Scene

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Schneider Electric announced today the promotion of Adrian Thomas to country ...
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ETIM North America (NA) is pleased to announce that the National Electrical Manufacturers ...
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Power management company Eaton Corporation plc announced that earnings per share were $1.11 for the ...
 We may not be able to celebrate in person this year, but EFC would like to invite you to ...
Since 1945 the Stamm family has proudly owned Powrmatic of Canada. Despite this 75 yearlong history ...
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IMARK Canada is pleased to announce that Concord Electric Supply, Concord, ON is a member of IMARK ...
E.B. Horsman & Son is excited to announce EMPOWER, their Employee Share Ownership Plan ...
 

 

Zigbee AllianceThe Zigbee Alliance, an organization of hundreds of companies creating, maintaining, and delivering open, global standards for the Internet of Things (IoT), announced an important movement within the Project Connected Home over IP initiative, forming a team dedicated to the development and promotion of the standard for commercial markets.

This move is in alignment with the overall vision for the initiative, which is to develop and promote the adoption of a new, royalty-free connectivity standard, simplifying development for manufacturers and increasing compatibility for customers and consumers.

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EatonPower management company Eaton Corporation plc announced that earnings per share were $1.11 for the third quarter of 2020. Excluding charges of $0.05 per share related to acquisitions and divestitures and $0.02 per share related to a multi-year restructuring program, adjusted earnings per share were $1.18.

Sales in the third quarter of 2020 were $4.5 billion. Organic sales were down 9 percent, and the divestitures of the Lighting and Automotive Fluid Conveyance businesses reduced sales by 8 percent, partially offset by 2 percent growth from acquisitions.

 

 

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CEW Stelpro flextherm 400The Stelpro Group, owner of Stelpro, is pleased to announce that it has acquired Flextherm, the electric floor heating industry. Flextherm was founded in 1991 by Philippe Charron, who brought a new vision to the market. Sustained work with the standard-setting bodies made it possible to revolutionize the industry by certifying heating cable installations directly on plywood, making the technology accessible to a greater number of people.

Many other innovations, including a complete range of heating cable products and controls and focus on quality and service helped build a strong brand over the years and raised the company to the enviable status it has today. 

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Adrian Thomas and Annette ClaytonSchneider Electric announced today the promotion of Adrian Thomas to country president, Canada, effective January 1, 2021. Mr. Thomas succeeds Susan Uthayakumar, who held the role of country president for the past three years. Mr. Thomas will report to North American CEO & President, Annette Clayton.

Susan Uthayakumar, has been appointed as the global leader for Schneider Electric's Sustainability Business Division, reporting to Chief Strategy & Sustainability Officer, Olivier Blum. 

 

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EFC 2020 Industry Awards

EFC 2020 Industry AwardsWe may not be able to celebrate in person this year, but EFC would like to invite you to their premier Industry Awards in a new and exciting virtual format. 

This year’s Electro-Federation Canada's 2020 Industry Awards will recognize member recipients through a virtual presentation honouring their strong leadership and commitment to contributing to the health of the industry. EFC's National Advisory Council chairman, Steve Branscombe, Independent Electric Supply, will emcee the Awards on Thursday, December 10th, 2020 at 4:30 pm EST.

 

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Peers & Profiles

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Headquartered in Concord, Ontario, Mercury Lighting services national retail, ...
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Bogdan Botoi is Division Manager for Automation and Control with E.B. Horsman out of British ...
Mission Technical Solutions is a recently established sales agency founded by industry veteran ...

ElectrimatElectrimat is an independent Quebec-owned company that has specialized for 40 years in the distribution of electrical and lighting products. The company is headquartered in Brossard, Quebec and has four branches on the south shore and north shore of Montreal and Montérégie. It serves the industrial, commercial, institutional, residential, and public service sectors.

Christian Grenier and Mathieu Legris have been leading Electrimat for 10 years. Two friends in life who complement each other at work, and whose company regularly finds itself in the business sections of daily newspapers highlighting their exceptional performance. 

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MercuryBy Blake Marchand

Headquartered in Concord, Ontario, Mercury Lighting services national retail, multi-residential/commercial property management, energy service companies (ESCO), and auto dealerships.

“From design to specifications, we offer turn-key services that go beyond the typical distributor model,” explained Mercury Lighting Vice President, Eric Tordjman. Their value-added approach leverages well-established supplier relations to help clients find a lighting solution that suits their needs.

 

 

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Jason PrevostBy Line Goyette

“Never forget to look at the big picture.” These words of advice are from the father of Jason Prevost, his first mentor, who worked as a marketing specialist. Jason has repeated them often over the past two years during what might have been the hardest personal crisis of his life.

At a time when he was forced to reassess his professional future, his wife and the mother of his two teenage children was diagnosed with a virulent cancer.

 

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