In talking to distributors and manufacturers, business in the electrical industry remains tough with many “cautiously optimistic”. Challenges range from uncertainty created by the media continual harping on negativity (BP spill, North Korea, euro problems, Israel and the Gaza strip … you get the picture) which then impacts Wall Street which, for many people, is a visible barometer of the U.S. economy, to continued slow bank lending and the dearth of construction throughout the country (and yes there are pockets that do have construction going on.)
The cautious optimism is felt mostly by those distributors who serve industrial customers.
A brief article in the WSJ succinctly explained why … inventory restocking. The article, “Restocking the Shelves of Economic Recovery” states “As companies ramp up inventory levels, it should benefit railroads, shippers, large industrial manufacturers like Honeywell and even midsize banks that lend to these businesses.”
In other words, if restocking happens, which it will, someone has to produce the material. And even if it is produced in China, it still needs to be shipped and warehoused here in the U.S.
So, if you sell to industrial customers
- talk to your customers and reinforce your value proposition
- get your salespeople calling on more levels within these customers
- survey your geographic area to identify companies you don’t call on (don’t leave this to your salespeople, use lists and compare to your sales reports)
- conduct a customer level product mix analysis … what are you not selling them
- beef up online resources
- market MRO products and services to your customers (this is the part of the business that takes off first, energy efficiency will follow)
The industrial business will eventually drive the commercial market, and possibly resi (albeit more the remodeling market vs new construction in most areas.
If you are selling into the industrial market, where are you seeing opportunities and what is helping you differentiate yourself?
4 Comments
I know you guys have gone easy on NAED.
But in today’s mail came TED magazine telling distributors how to get out of their business… How smart is NAED?
Just when NAED will start looking for renewal memberships and giving manufacturers a reason to re-up and attend…..good ole NAED is telling distributors how to find a way out of their business. Great timing
Someone at Corporate NAED needs to step out, wet their finger and check the direction of the wind.
From a manufacturer in Chicago.
NAED could solve their problems of timing and foot in mouth disease by electing a distributor Chairman for two or three years in a row. Pay them to herd that group that is called a corporate staff. I am puzzled why NAED requires so much staff.I’m sure the people who work for NAED are fine people, but year after year the President manages to run members off and is unwilling to change the business model to where distributors and manufacturers have some value.
Another Puzzled Manufacturer
I remember a Regional Conference some years ago when there was a video with all the NAED HQ staff giving a brief statement as to their particular job. No one could believe how many NAED people there were – thought there was going to be a riot. This was right after the move to MO from CT. I like the idea above – put a businessman in there instead of a journalism major.
Speaking of where the business is, today’s article in the WSJ was entitled “Industry Speeds Recovery, And Housing Slows It Down”. Here’s the link to the article http://online.wsj.com/article/SB10001424052748704009804575309692681916212.html?mod=WSJ_WSJ_US_News_5.
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