Welcome to the inaugural post of ElectricalTrends. We’ve talked about it for a couple of months, and this weekend it became reality. Sometimes the marketers need to take a break and do some marketing for themselves!
Allen and I have been looking forward to this forum as there is much happening within the electrical industry and we felt a blog would enable us to freely share some thoughts and observations, and hopefully provide a venue for the industry to share. Some of our postings will focus on strategic issues, others will be ideas that are germinated from everyday business issues (many times from other industries) that may have applicability to the electrical industry, and others may come from an industry “grapevine” (but we’ll strive for verification, or state otherwise). The key is hopefully making you more informed, and mostly, more profitable.
As an aside, it appears that companies are back on the acquisition trail. In the past month, NESCO (Canton, MA), Rexel, State Electric and USESI have all made acquisitions. And HD Supply has openly said that acquisitions will be a major component of their growth strategy (along with private labeling – but more on that another time) which means that Sonepar will probably also become aggressive. Could make for an active summer and early fall!
3 Comments
Hi Guys,
I’m glad to be the first blogger to respond, and I wish you the best with your blog. The question I have has to do with HD Supply and their place in the market. My understanding is that HD is no longer a factor in B2B distribution, so they would not be acquiring any additional distributors. Is that still the case, or have things changed again?
With Home Depot selling, yes, you won’t find Home Depot purchasing more distribution businesses given their focus on the retail customer (although they will still serve pro customers as they always have). They sold HD Supply to three private equity firms. Expect them to grow through acquisition, development of private label brands to improve margins and improved operational efficiency. Also wouldn’t be suprised if they sold some companies in niche market segments or developed multiple focused areas as separate companies.
A local electrical company in Chicago, Electrical Experts wish you all the best in the future work and good blogs.
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