1. 1. 2017 NAED Market OverviewPublished April 2017 NATIONAL ASSOCIATION OF ELECTRICAL DISTRIBUTORS
2. 2. NATIONAL ASSOCIATION OF ELECTRICAL DISTRIBUTORS INTRODUCTION The National Association of Electrical Distributors (NAED) has more than 400 distributor companies, serving nearly 5700 locations, and 230 allied and associate partners. Purpose This report provides key information regarding sales, customers, and services as it pertains to members of NAED. Data NAED member product offerings NAED member service offerings Key customer segments for NAED members Key industry segments for NAED members Electrical Equipment Wholesaling Sales Trends Industry customers by percent Industry products by percent Sales for full line distribution vs. total electrical equipment wholesaling Full line distribution sales change by product line
3. 3. 32% ESCO Market Overview: At a Glance* 67% Building Eciency Solutions Top Electrical Products Sold Other Products Sold Fire/ Smoke/ Life Safety Energy Management/ Green Technology Products Industrial Control & Automation Devices Power Quality/ Stand-by Power Lighting Eciency Solutions 94% 69% 66% Energy Audits Energy/ Sustainability Solutions Energy Management Services Currently Oered Top Three Customers Industrial/ Original Equipment Manufacturer 36% Electrical Contractors - Residential Electrical Contractors - Commercial *According to all distributor respondents 97% Braker & Load Centers 97% Fuses 97% Cable Ties 96% Wire and Cable 96% Light Fixtures 96% Conduit & Cable Fittings 96% Ballasts 95% Receptacles 95% Lamps 95% Connectors 95% Dimmer Switches 95% Timers 95% Wall Switches 95% Wire Terminals 95% Occupancy Sensors 19% 16% 85% 77% 74% 68%
4. 4. Economic Expectations for 2017 *According to all distributor respondents Worse About the Same Better U.S. Economy 29% 59% 12% Electrical Industry 35% 62% 3% Companys Revenue 74% 22% 4% Construction Industry 33% 63% 4%
5. 5. Who are our customers?*Average percent of customer segments for NAED distributor members *These results are based on the average percentage of distributors reporting customers of each type. They will not total 100%. 36% Electrical contractors - Commercial 19% Electrical contractors - Residential 16% Industrial/Original Equipment Manufacturer 3% Utility 2% DIY (Do-It-Yourself) buyers 2% Other 7% Electrical contractors - Other 4% Commercial facilities 4% Hotels/Hospitals/Schools/ Malls/ Oce complexes 4% Government
6. 6. What kind of green products do you oer? Energy management/ Green Technology Products 2016 80% 2015 89% 2017 77% Solar Energy 2016 36% 2015 42% 2017 37% Electric Vehicle Supply Equipment 2016 39% 2015 48% 2017 34% Wind Energy 2016 10% 2015 21% 2017 18% *Multiple responses allowed*Percentage of distributors respondents oering these products
7. 7. 48% Sequencing Orders Services oered *Multiple responses allowed 93% Wire and cable cutting, stripping 87% Lighting layout and design 56% Kitting/Assembly services 57% Layout and design work 48% Customized packing 47% Pulling Heads 42% Customized labels 23% Din rail assembly, cutting, punching 25% Power cord modication and termination 15% Radio-Frequency Identication Labeling (RFID) 11% Building Information Modeling (BMI)
8. 8. Inventory management services oered *Multiple responses allowed Job site delivery Emergency delivery Early a.m. delivery Staging orders Vendor managed inventory On-site containers inventory Project logistics management Night delivery to a secure container Customs brokerage 96% 92% 89% 87% 67% 55% 47% 34% 9%
9. 9. 2017 Full-Line Electrical Distribution Market Share 1 Source: IBISWorld calculated the total Electrical Equipment Wholesaling Market size based on government dened NAICS data as of 1/2016. This report covers NAICS category, 423610 Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers. For more information about NAICS, see the Appendix. * Note Data for IBISWorld reports are calculated independantly and are not meant to be compared year over year. 2 Source: Epicor Vista Information Services, 3/2016. For the purposes of this report, a full line distributor is one that carries all types of electrical products. This compares to specialty distributors that only carry one type of electrical product i.e., a lighting distributor or an industrial distributor 2016 Year End Sales Total Electrical Equipment Wholesaling1 Full-Line Electrical2 $174B $63B 63 111 Full-Line Electrical Distribution Other Distributors billion billion
10. 10. Download the full report at naed.org/marketoverview