Q1 Pulse of Electrical Sales

The calendar has turned and Q1 is now history for electrical distributors. Based upon feedback from many it appears to have been a challenge for most. Reportedly a slow January with slightly better in February and some early sprouts of optimism in March, but … it’s cautious optimism.

And then I hear from others who had a good month. Is this activity in their market or things coming to fruition that were in their pipeline?

Backlogs seem to have come down for many as orders get filled, but the switchgear issue is a long-term industry challenge but, as they say, “it will be what it will be”. It’s the result of accelerated, and unexpected demand – datacenters, electrification trends, industrial activity, utility construction and more. And while the switchgear companies are investing in new facilities, that too takes time (and will take hiring and training people.)

Meanwhile, it will act as a restraint on industry sales.

Q1 also “suffered”, as it always does, by weather somewhere in the country. Early in the winter there was bitter cold. Some had snow. On the west coast they’ve had lots of rain. The result … lost days of customers doing work and, for some, lost billing days.

We also hear about lots of quotation activity. Is it for new projects or are customers hoping for lower prices?

Lots going on which is why we’re launching, with the support of another equity client, a quarterly Pulse of Electrical Sales survey.

At the end of each quarter, we’re asking electrical distributors for input on their overall business versus last year (and nothing confidential as it is multiple choice questions.)

Then, because our client is interested in selected companies who happen to be important to distributors, we’re asking about ABB (non-gear), Eaton (non-gear), Hubbell and nVent.

I only need 1-2 minutes of your time, depending upon which lines you represent. All input is confidential and we’re only asking for input in ranges. Respondents will receive a free report with the results so you can benchmark your performance and gain market insights.

We need your input by Friday, April 5th.

Thanks