Trends in Green / Energy Efficiency

As many electrical distributors are planning for 2010 to be flat, if not slightly down, there remains an area of hope for distributors who are pursuing green / energy efficiency initiatives.

Consider:

• Wesco, which successfully conducted 7 energy summits for senior executives throughout the country, will be conducting more sessions in 2010. A company such as Wesco only repeats activities which were successful (revenue generating). Must mean that they know that attendees are willing to allocate funds to energy initiatives.
• Border States is getting more heavily involved with LEDs, but the solar powered type. They recently became one of seven new distributors for Visible Light Solar Technologies. Interesting whom the other six are … none in the electrical industry! Visible Light Solar is based in Albuquerque and is backed by some early stage private equity money (and perhaps it is only a coincidence that Border States has a significant presence in New Mexico – may have helped in becoming aware of the opportunity.) With solar and LEDs being early stage industries, partnering with start-ups can provide unique opportunities.
• GE announced a LED module technology that is upgradeable and replaceable, enabling companies to upgrade their fixtures as LED technology improves.
• Green “tools” are being developed for architects, designers and contractors to facilitate their selling of green. Check out this ecoScorecard which is a web-based tool that helps architects and designers measure the environmental impact of specific products and materials and quickly produce the necessary documentation to apply for LEED certification.

What this all means is that green / energy efficiency may be one of the few “growth” segments in 2010. Distributors can choose to either

• wait for the order, or
• create the opportunity.

To create the opportunity it is important to have someone / a department that focuses on these areas and maintains their product and market knowledge as well as actively market themself as “the energy efficiency expert”. For an industry where marketing is traditionally not a core competency, this can be challenging, enabling companies like Grainger and others to fill the caps (and taking business aware from the electrical distribution channel). And don’t forget, Grainger just purchased an ESCO.

Manufacturers will support whomever has the business. For distributors who want growth and profitability, a broader definition of distribution may be needed.

And staff needs to be trained. Perhaps distributors who are serious about lighting efficiency should consider having their lighting personnel certified and should look into NAILD’s Lighting Specialist program?

Are you planning to capitalize on the energy / green opportunities in your market or are you waiting for the order? What should distributors be doing or is it solely the manufacturers’ responsibility to create demand?