As you’d expect, the electrical market continues to change. Forget about the macro-economic dynamics and the geopolitical implications that trickle down and impact the business, let’s just think about some things occurring in the business.

The data center market. Yes, some are benefiting from having one in their backyard or being able to sell to, or fulfill orders, for one or some. There is also a commercial, and sometimes residential, ripple effect in the local community. And there are OEMs supplying equipment to companies selling to data centers. Yes, the electrical industry is benefiting from the data center ecosystem. But not all distributors participate.

We also have the supply chain repercussions, especially in some product categories, from data centers, but we’ll put that aside.

According to the DISC Flash Reports, the healthcare and educational markets continue to represent opportunities. Same for the industrial segments. Mining will be good (but doesn’t help many). Petrochem is good. Perhaps some other niches (and yes, we need to eat so the food processing / ag markets will always be here.)

Residential? Unless you are having multi-family occurring in your territory or service the renovation market, there may not be a residential market. Interest rates approaching 7%. Don’t plan on much for 2027, at this point.

Commercial construction? Very market specific. Perhaps more renovation / remodel than new construction. Large projects? Not many in most markets.

But, the good thing for the electrical industry is every market is a local market.

So, let’s talk about local markets and a disruption that is coming and will play out over the next 6-9 months.

Consolidation.

While distributors continue to consolidate, their efforts affect a small amount of the overall industry.

Manufacturer consolidation. We say two major ones this year – Hubbell acquiring NSI and Prysmian acquiring Atkore. These have channel implications … reps and distributors. And then there are manufacturers such as nVent, ABB, Rockwell, Schneider, Siemens, and some others that are serial aggregators. Are they planning on being portfolio holding companies holding many brands with their own strategies or will they seek to bring some of those acquired companies into the electrical channel and create additional opportunities?

An effect of manufacturer consolidation is rep line changes. There will be many in the next 6-9 months due to Prysmian / Atkore and Hubbell / NSI. Some may result in rep consolidation. You’re also seeing reps merging / selling to either “get larger”, “line synergy”, or principal’s retiring. You’re also seeing reps entering new territories either because they want to grow and they pull along a manufacturer or because a manufacturer pulls them along.

What does this all get to? Planning. Some is scenario planning. Some is strategic planning.

But all planning starts with some data. We’re in planning season … for 2027 … but, with the changes mentioned above, understanding where you are, where you want to go, and sometimes needing to “justify your existence” means you should know your share, and your share by product category … and maybe even by line (especially if you are a rep.)

You can use a “back of the napkin.” Perhaps you are old school and use “intuition” but, manufacturers respect using industry data … because they need to justify to their bosses!

Most know that DISC has been serving the industry for over 40 years. Chris Sokoll and I were recently talking about these industry dynamics and I encouraged him to write about the role that industry data plays, or should play, in the planning process.

Using Data to Upscale Your Market Intelligence

Why Market Intelligence Is No Longer Optional for the Electrical Distribution Community

The electrical parts distribution industry has always been driven by relationships, product availability, technical expertise, and customer service. However, in today’s increasingly competitive marketplace, those traditional strengths alone are no longer enough. Distributors, manufacturers, and sales organizations are facing rapid changes in customer demand, supply chain dynamics, pricing pressures, geographic shifts, and competitive activity. To stay ahead, companies need something more valuable than instinct alone: actionable market intelligence.

Market intelligence is the process of collecting, analyzing, and interpreting internal and external data to understand market conditions, customer behavior, competitive positioning, and future opportunities. For electrical distributors, it provides a clear view of where business is being won, where it is being lost, and where untapped growth potential exists.

Understanding Market Share Through Data

One of the most important questions every distributor and manufacturer should be asking is, “What is our actual market share?”

Many organizations track their internal sales performance but lack visibility into the total addressable market. Without understanding the size of the market and the activities of competitors, it becomes difficult to determine whether growth is being driven by market expansion, share gains, or simply favorable economic conditions.

Market intelligence bridges this gap. By combining industry data, customer trends, geographic analysis, and historical performance metrics, organizations can measure their position within specific territories, product categories, industries, and customer segments. This insight allows leadership teams to move beyond assumptions and make decisions based on facts.

For example, a distributor may discover that while overall sales have increased by 5%, the market itself grew by 10%. What initially appeared to be positive performance may actually indicate a loss of market share. Conversely, a distributor experiencing flat sales in a declining market may actually be outperforming competitors and gaining share.

Without reliable market intelligence, these distinctions often go unnoticed.

Identifying Growth Opportunities

The most successful distributors are not simply managing current business; they are constantly searching for new opportunities.

Market intelligence helps organizations identify underserved regions, expanding industries, emerging customer segments, and product categories experiencing accelerated demand. Rather than relying on broad sales strategies, distributors can target specific opportunities with greater precision and confidence.

Consider a sales team preparing territory plans for the coming year. Access to detailed market data can reveal which counties, metropolitan areas, or industrial sectors are growing faster than others. Instead of spreading resources evenly across all territories, leaders can allocate investments where the greatest potential return exists.

This targeted approach improves sales productivity, strengthens strategic planning, and helps organizations maximize their return on investment.

Learning from the Past to Prepare for the Future

One of the greatest benefits of market intelligence is its ability to provide both retrospective and predictive insights.

Historical performance data allows organizations to evaluate what has worked, what has not, and why. By analyzing trends over multiple years, distributors can identify recurring patterns, seasonal fluctuations, market cycles, and customer purchasing behaviors.

However, understanding the past is only part of the equation.

Businesses that consistently outperform their competitors use historical data as a foundation for forecasting future performance. Reliable forecasting enables better inventory planning, resource allocation, territory management, strategic investments, and revenue projections.

When distributors can anticipate market conditions rather than react to them, they gain a significant competitive advantage.

How DISC Supports Better Decision-Making

For companies seeking deeper market visibility, DISC provides comprehensive databases and reporting tools designed specifically to support strategic decision-making within the electrical products marketplace.

DISC’s data resources help distributors and manufacturers move beyond internal sales reports by providing a broader view of market activity, customer opportunities, regional demand patterns, and performance trends.

By leveraging DISC databases and reports, organizations can:

• Measure market share by geography, product category, or customer segment.
• Identify underpenetrated markets and growth opportunities.
• Analyze historical performance trends and benchmark results.
• Support annual planning and sales territory optimization.
• Evaluate market potential before making strategic investments.
• Develop more accurate forecasts based on data-driven insights.
• Improve resource allocation and sales coverage decisions.
• Strengthen strategic discussions with measurable market evidence.

Perhaps most importantly, DISC helps organizations transform raw information into actionable intelligence. Rather than relying on intuition or anecdotal evidence, leadership teams gain access to meaningful data that can guide growth strategies and improve business outcomes.

Turning Information into Competitive Advantage

The electrical distribution market continues to evolve at an accelerating pace. Companies that rely solely on historical practices or incomplete information risk being overtaken by competitors that embrace data-driven decision-making.

Market intelligence is no longer a luxury reserved for large organizations. It is a critical business tool for distributors and manufacturers of every size. The ability to understand market share, identify opportunities, analyze performance, and forecast future demand has become essential for sustainable growth.

Organizations that invest in quality market intelligence gain clarity. They make better decisions, allocate resources more effectively, respond faster to changing conditions, and position themselves to capture a larger share of the market.

In an industry where small advantages can create significant long-term gains, insight is often the difference between leading the market and following it.

Call to Action

Are you making strategic decisions based on assumptions or on market facts?

Discover how DISC‘s industry databases and reporting solutions can help your organization measure market share, uncover new opportunities, evaluate historical performance, and forecast future growth with confidence.

Whether you are a distributor looking to expand territory coverage or a manufacturer seeking deeper market visibility, DISC provides the intelligence you need to make smarter, faster, and more profitable decisions.

Visit DISC today to learn how data-driven market intelligence can help your organization gain a competitive edge and unlock its next stage of growth.

Thoughts

1. If you do not receive the DISC Flash reports, you should or, at least, the latest one (it’s only $100) to get a sense of the market and insights into 2027 at the national level.
2. My initial takeaway for 2027, other than some local dynamics that you may know (i.e. a major project), expect 2026 2.0 with the unknown of commodity pricing. Expect that growth will come from 1) homeruns, 2) commodities (which could be up, could be down), 3) intentional focused strategies to pursue “niches / segments” and 4) strategy taking shares (and if you haven’t thought of a true incentive program to pursue independent customers, you are missing a differentiable opportunity.
3. If you haven’t had a demo of DISC’s Data Search or Market Track offerings, you should. Worst case, to be aware. I work with these when I’m helping clients determine their market size, their market share, and the share of product categories (especially for reps and manufacturers.)