Canadian Electrical Wholesaler

 June 29, 2018

What You Told UsBy CEW Editorial Team

To gain a broader understanding of the Canadian market as a whole, CEW recently conducted a survey of electrical companies from across Canada. As always, our readers rose to the occasion, providing the data that we discuss below.

In our initial question we asked respondents to compare their last quarter results from 2018 against those from the same quarter last year. The survey results show a promising upward trend of growth, which in some cases has shown substantial gain. The largest growth revealed that 20% of respondents report revenue up 4-6% over the same quarter last year. In total 71% of respondents identified growth over last year.

The positive results reflect the stability of the electrical market and general economic stability of the country, as new construction and renovation projects continue to rise. The growth may also result from an expanding electrical industry in terms of product offerings and deliverables. The push for a greener economy, the rising adoption of renewables, EVs, Low-voltage products and various other popular avenues are driving market growth that is having a positive impact on the year over year growth rates for electricians and electrical contractors. However, the survey was conducted prior to the current ongoing trade dispute escalation between Canada and the U.S.

Some respondents did reveal negative results, with 11% identifying a loss greater than 15%. In total 29% of respondents noted a loss in this quarter over last quarter, and although the results overall demonstrate a positive growth trend the negative results are also revealing about the direction of the industry. As companies continue to grow competition will increase, inevitably resulting in losses for some business. However, with a rapidly growing industry and new directions available to companies (renewables, automation, etc,), those that advance their capabilities and offerings are likely to remain on the growth side of the chart.

What You Told Us 2Thinking forward will help companies maintain a competitive edge in the marketplace. And for those surveyed there is a high expectation of growth in the next quarter. This positive outlook is also held by a number of companies that showed a loss the last quarter. Figure 2 shows that 24% of respondents expect to see revenue growth of 1-3%, while 31% expect to see growth of 4-6% and 21% a growth of 7-10%. The expected revenue growth reveals a positive industry outlook for the future of the market. When we include the 9% of respondents that expect revenue growth of more than 11% in the next quarter 85% of those surveyed expect to see growth. The numbers reveal that 14% of respondents that identified a loss in the last quarter expect to rebound in the next quarter, leaving only 15% of companies expecting to continue seeing a drop in revenue growth.

Finally, in terms of revenue growth we asked companies to consider their expected revenue growth for all of 2018, and again received  positive results that reveal a promising outlook for the year. The most promising expectations have 59% of companies anticipating annual revenue growth between 4 and 10%, with a further 10% expecting growth between 11 and 15%, and 6% expecting growth greater than 15%. In total, 91% of companies are expecting to see growth in their annual revenue. This number is quite high but keep in mind this is an expectation of growth rather than retrospective figures.

What You Told Us 3Considering that 71% of companies recorded revenue growth in the last quarter, 85% expect to see growth in the coming quarter and 91% plan to see annual growth, the outlook from within the industry appears positive and progressive.

What You Told Us 4

 

 

 

 

 

 

 

One of the key components to successful growth is determined by product prices. Cost has a major impact on competition among electricians and electrical contractors who often bid on the same projects but use different suppliers. We asked if suppliers were raising their product costs in 2018. Not surprisingly, 92% of respondents identified a raise in product prices by their suppliers.

What is most interesting however are the results we received when we asked companies to compare their selling costs from the last quarter versus the selling costs from the same quarter last year. And keep in mind that 92% of these respondents noted that prices in 2018 have risen. In the last quarter 33% of respondents raised prices by 1-3% and a further 26% went up by 4-6% over the same quarter last year. This was the expected response, with most companies implementing a gradual increase of selling costs in line with increases by manufacturers and distributors. A further 18% identified higher increases over last year, with a total of 77% of respondents increasing their selling costs.

What is most interesting is that 92% of respondents identified that suppliers were raising costs but only 77% of the same respondents have increased their selling costs. In total 26% of respondents noted a decrease in their selling costs. There are a number of variables that be the driving force behind some company’s lower costs at the same time that suppliers are raising prices, including savings made in other areas to offset the raise in prices, the need to maintain competitive, expanding the business into new avenues or simply using various suppliers to ensure the lowest costs possible. Either way it is worth noting that not all electricians and electrical contractors seem to feel the need to make immediate selling cost increases as a result of suppliers raising prices.

What You Told Us 5As we noted above expansion may play a role in the ability to offset raising costs, particularly if that expansion reaches into new areas with products that are more competitively priced or that have a wider product offering. To gain insight into the potential for expansion, we asked companies if talent recruitment and expansion will be a priority in 2018. 62% of companies responded that they will be making talent recruitment and expansion a priority. With the continued broadening of the electrical industry to include focuses such as automation and control many companies are expanding their services into these areas. The expansion is opening the industry to new talents and a wider customer base that means companies moving in these directions can increase revenue and offset raising product costs within heir traditional offerings.

What You Told Us 6

Overall 2018 is proving to be a growth year within the electrical industry, with positive results and expectations.

Carolina GalloAmong the recipients of the 2021 Clean50 Awards announced last month is Carolina Gallo, Vice President Government and Institutional Relations Canada, for Hitachi ABB Power Grids Canada. CEW reached out to Gallo, about the experience. But first, a little about the Clean50 Awards.

These annual awards recognize Canadian leaders in sustainability for their contributions over the prior two years. Created by Delta Management, Canada’s leading sustainability, ESG and clean tech focused search firm, the awards recognize remarkable and inspiring leaders and try to connect these leaders in order to bridge those gaps...

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RittalIt is April 1, 1961, when an international success story begins in a small weaving mill in central Hesse — the standardization of enclosures. Rudolf Loh founds the Rittal company and changes the industry with one idea. The standard enclosure is used in millions of product solutions in over 90% of all industries worldwide. Rittal is the innovation and world market leader for enclosure technology and IT infrastructure.

10,000 employees worldwide work on new innovations, industry solutions and business models. A small steel manufacturing company has become a global digital enterprise. 

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David GordonBy David Gordon

Electrical distributors are at a unique moment in time where they have an opportunity to leverage technology to utilize the data it can unleash to accelerate profitability and sales cost-effectively.

Being in an information age is only beneficial if the information is utilized. Enhanced sales models, sales opportunities and servicing systems are combining to help differentiate distributors. Aside from a distribution divide being created by digital and supplier selection, analytics can either widen or tighten the divide.

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GDP - January 2021Real gross domestic product (GDP) rose 0.7% in January, following 0.1% growth in December. This ninth consecutive monthly increase continued to offset the steepest drops on record in Canadian economic activity observed in March and April 2020. However, total economic activity was about 3% below the February level before the COVID-19 pandemic.

Both goods-producing (+1.5%) and services-producing (+0.4%) industries were up in January as the 20 industrial sectors were nearly evenly split between expansions and contractions.

 

 

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Swati Vora-PatelBy Swati Vora-Patel

April has been a flagship month for new milestones: it has been one full year since many of us began working from home; Zoom and other such virtual platforms have been in play for a year to keep us connected – and the reliance on digital systems has heightened over the past year to populate the influx of online catalogues and eCommerce sites.

April also marks one year since I took over the reins of EFC’s Supply Chain Network to support the electrical industry’s digital transformation journey. 

 

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Wayne Long (left) will serve as thier Electrical Division Sales Manager. Wayne spent 11 years with Ideal Supply in the early years of his career, and was with Benshaw Canada for 20 years in senior sales management roles in Canada and the USA before re-joining Ideal in 2017, as thier Industrial Division Sales Manager. Long is a seasoned executive and has a proven track record of building strong relationships with customers and suppliers, and as a coach to sales teams to grow businesses.

 

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OmnicableOmni Cable located in Brampton, ON, is proud to announce it received IMARK’s 2020 Order of the Golden Maple Leaf Award in its first year eligible for the award.

The Order of the Golden Maple Leaf Award is an annual award that is presented to all IMARK suppliers who meet the set requirements, including supporting members and participating in IMARK Canada’s marketing programs.

 

 

 

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POW-R-Line CS Switchboards by EatonThe Solution to Your Switchboard Needs Now and for the Future.

Introducing Eaton’s Pow-R-Line CS switchboard, the most compact, expandable, service entrance and distribution solution in Canada. This versatile design allows for top or bottom service entrance cables, and expansion sections to the main structure to suit any design requirement.

Eaton’s Pow-R-Line CS switchboard provides a space-saving design advantage with a smaller footprint than any comparable switchboard in the market.

 

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LitelineLiteline has announced they will be establishing a Western Canada Regional Office and Distribution Center. Currently under construction in Langley, British Columbia, the new facility will service British Columbia to Saskatchewan in Canada, as well as the Pacific Northwest and California in the United States.

"As we lightly refer to the facility as “BC/DC”, the new operation will relieve some load for our 160,000 sq ft HQ in Richmond Hill, Ontario, and our other distribution points in Montreal, QC, and Dallas, TX," said the company via press release. 

 

 

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Eaton AR AppAdd or remove switchboard structures according to your construction needs, such as the main incoming with or without Canadian metering requirements, distribution loads, and submain sections. Verify your assembly footprint with thermal magnetic devices such as breakers and fusible switches (with or without meter sockets). Check for clearances and cable landing locations.

No need to guess what configuration will best suit your needs or wonder how the Pow-R-Line CS switchboard will fit in your location.

 

 

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Marcos has been with WESCO since 2015. We remember that in 2020, WESCO proposed a merger with Anixter...

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