Canadian Electrical Wholesaler

April 18, 2022

CEW HELUKABEL Logo 400At the beginning of 2022, global material shortages and rapidly increasing costs havenow become the new reality. The types of materials that have suddenly become difficult to procure are wide-ranging and include computer chips for automotive manufacturing, wood for new construction, and electrical components – just to name a few.

These shortages have created great uncertainty, which is reflected in a recent poll of contractors in the U.S. by the Chamber of Commerce. They reported:

  • 83% are experiencing product delays.
  • 71% are struggling to meet schedule requirements.
  • 68% are experiencing delays expected into 2023.
  • 58% are putting in higher bids on projects.
  • 53% are saying major project shutdowns/delays are a top concern.
  • 41% are saying material shortages continue.
  • 39% are turning down work opportunities.

One of the major material components that affect the cost and availability of wire and cable is copper. This widely used metal, which traditionally has been a volatile commodity, has been steadily increasing in price, which is due to several supply and demand issues.

On the supply side, some of the largest copper mines are seeing their reserves dwindle; they are having to dramatically slow production due to major capital-intensive projects to move operations from open pits to underground.

The world’s second-largest copper mine, Grasberg, located in Indonesia is emblematic of the problems copper miners are facing. The mine began as a large open pit, but after decades of extraction operations the easy-to-reach ore is gone and future production is expected to come from a deep cave deposit known as the Deep Mill Level Zone. Copper concentrate exports have plunged dramatically as operations shift from open pit to underground according to Reuters.com.

Major South American copper mines have also been forced to cut production. State-owned Codelco has said it will scale back an ambitious $40-billion plan to upgrade its mines over the next decade. The world’s largest copper company also said it will reduce spending through 2028 by 20 percent, or $8 billion.

On the demand side, copper’s widespread use inconstruction wiring, piping, and electrical transmission lines, makes it a key metal for civil infrastructure.

Additionally, the continued move towards electric vehicles (EVs) places a huge demand on copper. In EVs, copper is a major component used in electric motors, batteries, inverters, and wire harnesses. An average electric vehicle contains about four times as much copper as a regular, gas-powered vehicle.

Copper is also found in the charging stations, which are continuing their own infrastructure ramp up to support the growth of the EV market. A Level 2 charging station requires 15 pounds of copper, a direct current fast charger (DCFC) or a Level 3 station uses 55 pounds.

BloombergNEF forecasts by 2040 there will be a need for 12 million charge points, each requiring about 22 pounds of copper. Currently, the number of charging stations recently passed the one million mark.

Due to the shortages in supply and increases in demand forcopper, significant disruptions to electronic and electrical component supply chains are occurring, which result inlonger lead times. Unfortunately, they are not product, series,or manufacturer specific, so the best way to mitigate this issue is to give full visibility to your manufacturing partners and allow them to manage and leverage the supply chain effectively.

When selecting a wire and cable manufacturing partner during these uncertain times there are a few key factors to consider:

Inventory

One of the best ways to mitigate ever-changing lead times with wire and cable is choosing a manufacturer that iscommitted to inventory. Many manufacturers have scaled back inventories in fear of rising copper costs. HELUKABEL maintains a significant amount of inventory in a wide variety of single and multi-conductor cables at our North American warehouses with additional stock at our automated, 1.8-million-square-foot logistics center in southern Germany. Having multi-million dollars of stock on the shelf serves as a hedge to minimize lead times.

Lead Times

As manufacturing continues to manage supply chain shortages, delivering product solutions rapidly is critical to customers. At HELUKABEL, we pride ourselves on industry-leading logistics and are committed to quick deliveries. With the significant amount of inventory in North America, orders placed will ship the same day or within a few business days to our valued distributor partners or direct to our customers. Every week we receive an air shipment from Germany, which allows us to provide access to our European-stocked materials in as little as four days. For those customers that want to have material on order, but don’t need it immediately, bi-monthly ocean shipments from Germany to North America are available, and products can be reserved/staged for future shipping when customers need it, just-in-time.

Flexibility

Finding stock on wire and cable and having it delivered quickly are important, but minimum order requirements can be equally crushing to manufacturing. When a customer needs 350 feet of cable, but is forced to purchase a 5,000-foot reel, especially as copper costs continue to escalate, it can be devastating. All that extra cable provides no return on investment and ultimately affects a project’s profitability. HELUKABEL offers little to no minimum order requirement and provides the service of cutting and re-spooling cable as needed.

Customization

When it comes to sourcing, purchasing material that is on the shelf is always ideal. At HELUKABEL, we have a portfolio of over 33,000 products. Occasionally, there is a need for something unique because what is on the shelf just won’t work. Designing and manufacturing a custom solution is another advantage where we can partner with you. HELUKABEL is at the forefront of the cable and wire industry with our innovative and cutting-edge designs.Our customers expect extreme resistance to chemical, electrical and mechanical stresses, small bending radii, a high number of flexing cycles, and an outstanding lifespan. Our research and development team is constantly working on creating new, top-of-the-line products that meet and exceed our customers’ ever-changing application requirements.

Responsiveness

The phrase “time is money” is more apparent now than ever. For mission-critical projects, a delayed response, or worse yet no response, can make the difference in meeting a deadline or failing to do so. It can be frustrating to leave an important message in a voicemail system with the hope that it may be listened to and responded to at some point in the future. HELUKABEL strives to have every call answered with a knowledgeable inside or outside salesperson to assist our customers with their requests.

Local Support/Global Reach

At HELUKABEL we achieve quick deliveries by having our North American operations strategically located near Chicago, Illinois(US), Toronto, Ontario (CA) and El Marqués, Querétaro (MX). We also provide local support with a sales team throughout each country. Additionally, with 59 locations in 37 countries throughout the world, we can support our customers that heavily export or may also have global locations to provide seamless support around the globe.

Stability

We live in uncertain times. As our industry continues to consolidate, there is often news of acquisitions and mergers. These can create confusion as contacts can change and new relationships have to be made. HELUKABEL has been privately held for more than 40 years and stands ready to serve our customers today and into the future.

As our industry continues to experience historic material shortages, longer lead times, and rocketing material costs, it is more important than ever to partner with a manufacturer that is positioned to weather this storm. We maintain our commitment to inventory and stand ready to quickly respond to any wire, cable or cable accessory you need and provide you with a truly worry-free experience!

Source

GescanMeet Doug Palmer, Lighting Specialist for the Manitoba region working out of Gescan's Winnipeg office. He helps determine the most efficient and cost-effective lighting solutions for your commercial or industrial project. From new-build layouts to retrofit of existing spaces and interior/exterior lighting solutions, Doug provides a one-stop-shop of lighting expertise.

In addition, Doug supports the application process that allows business owners to receive rebates through Efficiency Manitoba’s Business Lighting Program.

 

 

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Statistics CanadaInvestment in building construction increased 4.0% in February, reaching $20.0 billion for the first time. Most provinces reported gains, with Quebec accounting for over 50% of the increase. On a constant dollar basis (2012=100), investment in building construction increased 3.9% to $12.7 billion.

Residential construction continues to show strength

Investment in single family homes rose 4.9% to $8.0 billion in February. Increases were posted in seven provinces, led by Ontario (+5.3%) and Quebec (+8.2%).

 

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HousingBy Linda Longo, Managing Editor, Electrical Trends

Electrical distributors who do big business with contractors and electricians in new home construction will struggle through another tumultuous year of trying to satisfy record-setting demand while facing down materials shortages. According to recent housing reports, home buyer demand remains strong, but supply chain troubles are holding back growth.

Nationally the numbers will be challenging while within specific markets there could be growth, but supply chain issues could dominate and prolong residential construction projects.

 

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Electric Shock Podcast Interviewby Daniela De Marco, Marketing Manager, EFC

"Electrical work is evidently dangerous. Electrocution is one of the top six causes of occupational deaths in Canada and the U.S." according to Canadian Standards Association & the U.S. Department of Health & Human Services (2012). More often than not, electrical workers are taking unnecessary risks by working on a job site energized. 

In EFC's electro|POD "Electric Shock" podcast episode, Gurvinder Chopra, VP of Standards and Regulation, and I connected with experts to explore this topic further. We interviewed Robert Mitchell from Electrical Safety Authority (ESA), the Safety and Technical Program Advisor, and Kaylyn Kretschmer...

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Franklin EmpireThe year was 1942 and Abraham Backman began humbly, working out of his garage in his Montreal home, until he slowly built up a volume of business to afford a modest storefront. This year Franklin Empire celebrates our 80th anniversary, with the 4th generation of family at the helm.

"Today, we are the largest independently owned electrical distributor in Canada, with over 500 employees, 23 branch locations, five assembly and repair shops. and an inventory investment exceeding $35 million," said the company via LinkedIn.

 

 

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Changing Scene

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Gerrie ElectricThe Executive of Gerrie Electric Wholesale Limited announced the acquisition of FM Supply, effective April 1, 2022. They will continue to operate as FM Supply and do not anticipate changes in the way they currently do business with their locations in Waterloo and Stratford; they will now however have access to Gerrie’s inventory and a broader range of products and services.

“The team at FM Supply have a great reputation for treating their customers’ business like our business and work together to deliver an outstanding customer experience. When Colin Moore, Chris Watamanuk and I came to the decision to sell, we wanted to ensure that these customer traditions would be continued and supported in the future” 

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Johnson ControlsJohnson Controls announced findings from the 15th annual Energy Efficiency Indicator Survey, which revealed that 62 percent of organizations surveyed expect to increase investments in energy efficiency, renewable energy, or smart building technology in 2022, indicating a return to pre-pandemic levels.

The latest report by the United Nations Intergovernmental Panel on Climate Change advised that global scale transformation is urgently needed to combat climate change, however, the Johnson Controls Energy Efficiency Indicator Survey found that organizations are still facing challenges to accelerate their sustainability efforts in key areas. 

 

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John RichardsonThe EFC announced the appointment of John Richardson to the executive position of Vice-Chair for the CMG Committee.

John is Vice-President, Sales with ANAMET Canada and has been in the electrical industry for more than 30 years. ANAMET manufactures flexible conduits in a newly expanded factory in Eastern Ontario. John has served on the CMG Committee for the past few years and has joined the ranks of leading the committee with CMG Chair, Jeff Beare, Stanpro. Both John and Jeff will work closely with CMG Team Lead, Nathalie Lajoie, EFC.

 

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Sandra PedroThe EFC announced that Sandra Pedro will be joining the company as the new Vice President of Membership and Corporate Partners, effective Monday, April 18, 2022. John Jefkins is retiring from his position on May 6th and will work with Sandra over the next three weeks to ensure a smooth transition.

Sandra comes with strong industry experience, previously with Schneider Electric in the Global Digital Energy Division as Director of Global Offer Management, and various sales and channel roles throughout her career at Schneider.


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Nexans Completes Centelsa AcquisitionNexans recently announced the successful completion of its acquisition of Centelsa, a premium cable manufacturer in Latin America specializing in building and utilities applications, from Xignux S.A. (headquartered in Mexico) following receipt of regulatory clearance. This transaction completes an additional milestone of Nexans’ strategy to become a Pure Electrification Player focusing on the overall value chain originating in generation, and flowing through transmission, distribution, and usage of sustainable energy.

With a total turnover  of more than US$ 339 million in 2021, Centelsa’s three manufacturing plants in Cali, Colombia and their distribution center in Ecuador will complement Nexans’ presence in Latin America. 

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Peers & Profiles

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  The Sonepar Ontario Region is proud to announce the relocation of their SESCO Central ...
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SESCO CDCThe Sonepar Ontario Region is proud to announce the relocation of their SESCO Central Distribution Centre (CDC) to its new location in Brampton, ON.

This move has facilitated an amalgamation between Texcan’s large Brampton branch and SESCO’s CDC, as both businesses work together within one facility for the first time. The expansion of the building and the merging of the Operating Companies (OpCos) will assist with facilitating their customer service value proposition.

 

 

 

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Copper $US Dollar price per pound

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