Switchgear & Utility Market

For the past few years, the distribution equipment / switchgear market has been a blessing and a curse to many.

Sales in this category have accelerated, and hence benefited, many distributors but at the same time seemingly all lament the backlogs that have been created. Further, these backlogs have impacted other product categories.

The same can be said of transformers as utilities and industrial businesses have accelerated demand.

Suppliers have been striving to improve and many have announced major investments in expanded / new plants … to the tune of about $1 – 2 billion with those factories in the US, but it takes time.

Growth has been driven by the data center market, electrification (inclusive of the entire EV complex), industrial segment growth, and the utilities upgrading equipment (and the grid) and increasing capacity (to support the EV complex, especially the anticipated demand for EV vehicles.)

There is minimal expectation of change given that the trends that have driven growth will continue and, in the case of data centers, especially because of the power needs for data centers that support AI, will use utilize more power.

The delays can be significant. One contractor in the Northeast shared electrical material backlog, at least from their perspective, with their customers to help set expectations. The results are startling.

This information was shared by Gaston Electrical to their customers via their newsletter

As many know, Channel Marketing Group conducts a quarterly Pulse of Lighting survey on behalf of a client, with respondents also receiving a complimentary copy of the results.

We’re now expanding our Pulse series to the Switchgear / Distribution Equipment and Utility market for another client. The survey will take 2-4 minutes to complete and is only open to distributors. Respondents can request a complimentary copy of the results. Please click here. The survey is open till February 29.

What is your take on the distribution equipment market? Is it affecting other aspects of your business in the sense of delaying sales?

Your input on our Pulse of the Switchgear & Utility Markets is most helpful. We’ll be updating this periodically throughout the year.