Canadian Electrical Wholesaler

June 30, 2020

LDS CS q2 pulse 400Channel Marketing Group’s 2020 Q2 Pulse of Lighting Report projects that the lighting market, through electrical distribution, contracted by 20%.

The survey, conducted the third week in June, received responses from 164 individuals who equally represented industry stakeholders.

Distributor Performance

  • Very few distributors reported either flat or positive performance with over 30% reporting declines of over 30% for the quarter.
  • While a 19% decline is significant, this is in light of a number of major markets having construction stopped for an extended time. April’s performance, anecdotally, was worse, however, due to the bi-coastal nature of COVID-19 in the beginning, performance in other regions supported the lighting industry. Distributors, and businesses in general, accelerating growth in May and June helped flatten the decline.
  • No market segment was overly busy, with most reporting “okay” except large to mid-sized renovations.
  • Inventory levels remained the same. There is some evidence that conglomerates and Tier 2 companies may have picked up some stocking positions from Asian imports. This could be timing due to Chinese New Year, COVID-19 supply chain issues from China (product availability) and especially Tier 1 companies seeking to focus on this area.
  • Backlog declined by 50% for 25% of respondents. 40%, surprisingly, reported, backlog increased, however, feedback is that this is due to projects being delayed due to COVID-19.
  • Q3 outlook is for a nominal 2% increase, essentially flat. This performance correlates with results found for the broader electrical distribution market in our 4thCOVID-19 Electrical Market Sentiment Report that covers May performance and June projections.

Manufacturers

  • Manufacturers reported a 19.8% decline with only 14% of respondents reporting flat / any growth. 20% reported declines of 31%+.
  • Manufacturer expectation for Q3 is for -2.5%
  • Insights shared by manufacturers include
    • Continued pricing pressure which is inhibiting them from seeking price increases / margin improvement.
    • Project delays
    • Supply chain issues impacting product availability. Mostly this has been COVID-19 in factories.
    • Some suppliers had projects pulled forward as contractors sought to complete outside work

Manufacturer Reps / Lighting Agents

  • Sales agencies reported a decline of 19.4% with 23% reporting flat and over 30% reporting a decline of 31+%
  • Q3 expectations are for a decline of 6%
  • Marketplace insights included:
    • Access to customers inhibits the specification process.
    • Stock business down due to distributor counters being closed
    • Activity in the residential home builder market and for small renovation

UV-C lighting

  •  Each audience was asked about UV-C lighting, which has recently been in the news due to its potential to kill 99.99% of the COVID-19 virus.
  • About 40% of distributors are receiving requests for UV-C lighting and 67% of agents have a line that has a UV-C offering, however, less than half shared that they are getting a significant number of requests.
  • The challenge appears to be that this product offering needs to be promoted to the applicable end-user markets to stimulate interest and demand. This represents a distributor opportunity. It is expected that the profitability potential in this segment will decline as more suppliers begin to provide the offering, hence competing for limited business.

Project Activity

  • Each audience was asked about their project activity based upon the project ship date to gain a sense of future activity as there is concern in the industry regarding late Q3 and Q4 projects given increased delays and some cancellations.
  • Feedback from all three audiences confirmed that project quotation activity is “fair to okay” through Q1 2021 with less insight further into 2021. Q3 is “fair to good” as it is deemed “short-term”.

Overall, given the state of Q2, worse was feared by many (and some have had much worse). The decline was mitigated due to new construction activity, COVID-19 being bi-coastal and therefore activity continued and the reopening of the economy. The outlook is concerning due to continued COVID-19 concerns, workplace social distancing rules, supply chain delays, project delays, investment funding for new construction and companies that may have been considering renovations or capital investments redirecting funding to supporting payrolls and PPE investments.

Lighting represents 15-30% of distributor sales, and 25% of overall industry sales, so, “as goes lighting goes the industry for many.”

Click here to purchase the complete copy of the 2020 Q2 Pulse of Lighting Report

A complimentary copy of the report is provided to survey respondents.

Source

Pulse of Lighting is originally published by Electrical Trends

David Gordon New 400Everyone is an expert in pricing. It’s either too high or too low based upon your role. Salespeople like it low. Management wants it high. The customer wants it “right” which, usually means “competitive” or “It’s reasonable for the value I am receiving.”

And the term “value” is intriguing as it infers that you understand
• the value that you bring
• the value that your product / service brings
• the competitive landscape (which also includes alternatives and inertia)

But I digress. 

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LDS Magiclite LS 400Magic Lite has announced the signing of Lightspec Canada Inc. as their Specification Sales Agent for the GTA.

As the Canadian Division of Lightspec, LLC, NY, this agency is headed by Steve Danzig as President and Neil Whiteford as Sales Manager. This talented sales team has over 150 years combined experience with Lighting Design, Applications, Lighting Controls, Distribution and Project Management. They are committed to bringing attentive service and expertise to their clients for their designs, projects, lighting requirements and acting as their trusted advisor and partner.

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In June 2019, the U.S. grid regulator, NERC, issued a warning that a major hacking group was conducting reconnaissance into the networks of electrical utilities. Just one month later, several major industrial firms announced they had been victims of a state-sponsored hacking campaign.

A year later, hackers targeted over 75 organizations around the world in the manufacturing, media, healthcare, and non-profit sectors, as part of a broad-ranging cyber espionage campaign.

 

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Value of Building Permits - JuneThe $687 million Oakridge Centre mixed use redevelopment project in the city of Vancouver helped raise the total national value of building permits 6.2% to $8.1 billion in June, to a level comparable to pre-COVID levels. Overall, seven provinces reported gains for the month.

Residential permits rise

The total value of residential permits was up 7.0% to $5.3 billion, with gains posted in six provinces. British Columbia posted its third largest value on record for residential permits in June, up 20.4% to $1.3 billion due to large projects such as the Oakridge Centre redevelopment. 

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The 2019 report highlights all areas of sustainability at Southwire and showcases the company’s most significant impacts by focusing on its five key tenets – Growing Green, Living Well, Giving Back, Doing Right and Building Worth.

 

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CSAOn May 8, 2020, Gianluca Arcari was appointed Executive Vice President & Chief Commercial Officer at CSA Group, reporting to David Weinstein, President & CEO. In this role, Gianluca will be responsible for growing CSA’s global Testing, Inspection and Certification (TIC) organization. Leading a team of more than 200, Gianluca will guide and develop global commercial market sector strategies across CSA Group’s global business units in Home and Commercial, Industrial and Healthcare.

“Gianluca is widely known and respected for his technical and business skills both within CSA Group and in the global TIC market, making him an excellent choice for this role,” said David Weinstein.

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Robin Billingsley"It is with heavy hearts that we inform you of the passing of our longtime Marketing Manager, Robin Billingsley," said Beghelli General Manager, Bruno R. Ardito in a heartfelt letter to Beghelli customers.

"Robin had been battling breast cancer for the past few years and on July 23rd, Robin’s battle ended at 40 years young. We have had the pleasure of working with Robin for 13 years and in those 13 years, she executed many of the products and programs we have today. Robin truly represented Beghelli/Beluce ideals, philosophy and vision. 

 

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Obviously with the global pandemic there has been increased focus on PPE and other sanitary products like hand sanitizer, disinfectant wipes, as well as Ultraviolet light that kills germs. LDS has published several reports from industry organizations that have recently conducted research studies on the effectiveness of T-UV lamps on neutralizing the COVID-19 virus. 

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