Electrical Industry COVID-19 Market Sentiment
Understanding the financial impact of COVID-19 on the electrical channel is a real challenge. That’s why we launched, and can now report from, our Electrical Industry COVID-19 Market Sentiment Report. (available for $50 with 50% of proceeds to the Gary Sinise Foundation.)
The marketplace dynamics change daily, Two weeks ago we had zero states mandating “stay at home / shelter-in-place”. Today there are twenty-eight states and over 250 million people covered by such declarations (and who ever knew governments could declare these!)
While most states deem the electrical industry “essential”, some have decreed that construction must stop or no new projects be started. Conversely, in areas where COVID-19’s impact appears nominal, business continues although under a different model.
The channel has moved to remote working, curbside pick-up instead of counters and much cleaning.
The hallmark of the last two weeks has been change … and leadership by management for issues where no one has any experience.
Ever looking forward, many have asked “how long COVID-19’s impact will last”, “when will the electrical industry rebound” and “how much of a decline will be experienced (and for how long)”.
The reality is these are naïve questions given that the coronavirus is uncontained. Any answer is guesswork.
With this backdrop, Channel Marketing Group, in conjunction with DISC Corp, and with the support of NEMRA and others, conducted an industry-wide survey to gain market sentiments regarding COVID-19’s impact on the electrical channel between March 16-March 27. Over 400 people participated.
COVID-19 Electrical Industry Market Sentiment highlights
The following are some of the survey highlights:
- Reporting distributors are down at least 10%, manufacturers report being down 8% and reps are down 15%
- And we spoke to some who are down 50% and others who are flat … and in-between.
- Almost 50% of distributors in the East are down at least 10% with over 25% down more than 21% (21% was the max “down” in the survey).
- Distributors in metropolitan areas are down the most
- Some have already implemented layoffs, furloughs or have made compensation adjustments.
- While distributors are accepting orders via text, less than 20% report an increase in online orders.
- The usage of digital tools defined as webinars, Zoom / Go to Meeting and digital marketing have accelerated.
- Distributors and reps are concerned about their employees, safety, cash flow and business viability. Manufacturers, in the survey, expressed more sales outlook concerns.
- Leadership, throughout the channel, is rated an 8.5-9.0, indicating a vast majority have risen to the occasion. Communication with staff and customers has been the key. Daily / weekly meetings and daily implementation of new ideas has enabled teams to come together.
- The report has 11 pages of best practices and concerns.
The full findings were shared with survey respondents as well as with the NEMRA membership.
The complete report is available for $50, with $25 of the fee being donated to the Gary Sinise Foundation, which supports veterans. To order the Electrical Industry COVID-19 Market Sentiment Report, click here and it will be emailed to you.
Channel Marketing Group and DISC Corp will be updating this research and asking other questions later this month as COVID-19 continues to impact the electrical channel. The next survey will focus on monthly performance, quarterly outlook and employment changes among other issues. The survey will be launched via ElectricalTrends, but it you’d like to receive an email, please send your contact information.