The market continues to be slow, and we continue to hear about the switchgear delays, and construction disruptions, for some companies and product categories. Distributors are resigned to “this is the way it is, and probably will be.”
And that is an early finding from our current Pulse of Switchgear survey which we’re (Channel Marketing Group) currently conducting.
Similar to COVID and the supply chain disruption area when the DIY chains received material, but electrical distributors did not, and part of the reason was that the DIY companies charge manufacturer penalties for missed shipments, similar is happening now with data centers receiving priority.
Although, each of the switchgear manufacturers have announced plant investments, it takes time to build the plant, get the equipment, recruit and train staff (and then recruit again when they have churn in the first year), so … it’s a process.
And there are some other interesting findings regarding pricing, local support, and more.
The survey only takes a few minutes and asks about each of the major players. The survey is only for distributors. Those who share will receive an aggregated copy of the results.
A continuing trend is distributors purchasing from, what I’ll call, “switchgear assemblers.” These are companies that have the resources to provide solutions within a reasonable time frame to keep jobs on-track / allow them to be completed. They are the epitome of “I’m willing to pay for product availability.” There are a number of companies that sell through distribution and are reputable companies. I’ve been told of a number of companies and have names of 5-6. If you know of some, let me know as I’m considering a survey to ascertain the level of awareness. In many instances the Big 4 prefer distributors not know, but customers need the resource (and have others that they can buy direct from … perhaps we can keep the revenue in the channel.
Do you have a few minutes today to help me out with the Pulse of Switchgear survey? Your help is much appreciated.
2 Comments
Demand is at an all time high and some manufacturers are still trying to catch up. Because our capacity investment started in 2018 after the acquisition of GEIS, ABB has 15 week switchboard offerings and 25 week LV Swgr offerings.
Sully – Early feedback from distributors is that some companies, including ABB, have improved in some categories. We’re also hearing about other companies that are able to be very responsive to distributors and assemble components. While many think they sell direct, the ones I’m referring to sell through distribution and now sell through manufacturer representatives. Collectively they are taking some share but, more importantly, helping distributors meet their customers’ needs … and they are distributor agnostic.
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