Arizona Company Pivots to Help Electrical Contractors

Tempe Trophy, an Arizona-based business specializing in engraving has come to the rescue of its local Tempe electrical and solar contractor customers by shifting its focus toward bolstering inventory levels of copper and electrical wire.    

Citing the global shortages of primary construction materials, such as copper and electrical wire, and the resulting spike in pricing, Tempe Trophy has pivoted its business model to increase inventory and keep costs relatively stable for local electrical and solar contractors.

According to National Association of Homebuilders (NAHB) statistics, retail prices on copper wire have soared 40 to 50% in recent months and 77% of electrical contractors surveyed report a shortage. Compounding the problem is Arizona’s population growth and ensuing construction boom.

Happy to help

“Just like what we saw at the start of the pandemic, when there was a run on essentials like hand sanitizer and masks, the electrical industry supply chain has been disrupted significantly,” says Jason Hood, the third-generation owner of Tempe Trophy. “Over the last few months, I’ve had several suppliers warning me of increased shortages and a 90% increase in the cost of steel, among other supplies. With my clients being primarily electrical contractors, it’s upsetting to see the massive blows they are about to be hit with. Tempe Trophy will do what we can to help ease some of the challenges as we’re working in collaboration with the Electrical Trade Organization and the Tempe Chamber of Commerce to find solutions to keep production up and construction deadlines on time.”

Since it was founded more than 35 years ago, Tempe Trophy has become the largest supplier of panel tags used in electrical and solar safety labels for the electrical industry throughout the Southwest. The company is working with its manufacturers to maintain inventory so it can offer long-term price stability on in-demand electrical supplies to reduce volatility in the market and ease bidding estimates. It is also increasing automation in its engraving process to ensure accurate timing estimates and prevent further delays.

Unfortunately, until the supply chain stabilizes, electrical contractors will need to be creative in how they bid and how they source low-priced electrical supplies such as copper and wire to complete their jobs.

Looking ahead

According to research released by Knoema® in July, the copper price forecasts issued by each of the leading international agencies are as follows:

•The World Bank’s commodity forecast estimates the spot price for copper will average $8,500 per metric ton by the end of 2021. The price is expected to decrease to $7,500 in 2022 and then grow to $8,250 by 2035.

•The IMF projects the price of copper will grow from an average of $6,174 per metric ton in 2020 to $8,313 in 2021, followed by a gradual decline to $7,600 per metric ton by 2026.

•The Department of Industry, Science, Energy, and Resources of Australia also expects the price of copper to rise sharply to $8,257 in 2021, with a slight decrease to $7,724 in the following two years and consequent growth to $8,876 by 2026.