Are Automation Manufacturers Seeing Channel Convergence or Are They Dissatisfied with Electrical Distribution Efforts?

Last summer we saw Kaman increase it’s involvement in the electrical industry with their purchase of Zeller Electric.  Then Schneider Electric authorized them nationally for its automation line. Then Kaman’s Neal Keating is a panelist at the NAED Annual.

Now, BDI, one of Kaman’s competitors in the power transmission business, has been authorized by Siemens for Siemens’ motor controls, variable frequency drives, circuit protection, motors (inclusive of NEMA, IEC and Above Nema) and Siemens Engineering Services for “Siemens has selected BDI to distribute a portion of its electrical control and automation products in Ohio, Indiana, Michigan and Kentucky.”  And BDI has 179 locations worldwide and is in 28 states in the US.  According to the press release, BDI also is a Littelfuse and a Sola Hevi/Duty distributor

This generated some thoughts.  Are automation manufacturers:

• responding to a distributor that wants their line and saying “additional distribution can help us achieve our market share goals?
• is it a commentary on their existing automation distributors (and those in specific markets)?
• are they seeing channels converging and trying to get a “jump start” on the competition?
• if they see channels converging, from a customer perspective, is this becoming a significant trend
• or, is this a case that Kaman and BDI are seeking expansion by offering broader product offerings to their customers.

And, from an electrical distributor viewpoint:

• what are your thoughts on increased competition?
• if channel convergence with power transmission is a trend, should electrical distributors with significant automation business consider acquiring power transmission distributors?
• will other automation manufacturers (Rockwell, Eaton, ABB (or T&B)) pursue these channels – (in our opinion, very doubtful for Rockwell, less doubtful for Eaton, questionable for ABB)