Understanding and Responding to Disparity
Never in my career in the electrical industry have I witnessed a more uneven, choppy start to a year. Some provincial markets are performing well; others are having difficulty. Some product sections are having good starts to the year, other segments are doing poorly. In short, we have some members pleased and others are disappointed.
So why the disparity in performance?The obvious explanation is to tie it to the economy. However, I believe that this is just one of the reasons.
The bumpy market can also be explained by the following:
• Disruptive technologies — product change in the lighting product section is occurring at a remarkably fast rate. Some member companies are taking risks and applying resources in developing/introducing new products, while others are getting left behind BY clinging to old technology.
• The channel is changing — click and order is here to stay. Some members are making the electronic commerce investments, others are slow to invest.
• Industry consolidation — the big are getting bigger and are just getting tougher to compete with.
• Globalization/harmonization — new competitors are entering the Canadian market and with the trend towards harmonized codes, nothing is holding them back.
• Lower Canadian dollar — if you import from the U.S., you’re experiencing margin pressure; if you manufacture domestically and export to the U.S., your margins have improved.
• Local technical resources — customers want answers fast; if you can supply them quickly, you get the orders.
• Attracting and developing industry talent — some members have a knack for attracting, training and keeping young talent.
• Innovative marketing and sales— there are some pretty good examples of creative promotions and advertising in our industry.If they are catching my attention, they are certainly getting the attention of contractors and end-users.
• Increased sustainable/environmental focus — some members are strongly pushing energy-efficient products that save their customers money and are good for the environment.
It’s easy to attribute this uneven performance strictly to economic conditions.However, as I have stated in the past, success is all about establishing an edge over your competition. You establish the edge through good strategic planning and taking some educated risks with investment.As often has been said — nothing ventured, nothing gained.
Read more in CEW from Jim Taggart:
– We Need to Engage More Women in the Industry. Me included
– Not Your Typical Industry Association
– Breaking Through the Age Barrier
– Amazon: Friend, Foe or Frenemy?
– Electrical Industry – Mergers and Acquisition
– Understanding and Responding to Disparity
Profile: Jim Taggart: A Steady Hand, A Stellar Career
Jim Taggart is President, Electro-Federation Canada.
