City Electric Supply | Market Analysis

Part
01
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Part
01

City Electric Supply | Market Size

Revenue for the US electrical wholesale market for 2017 was reported to be $173 billion. For 2016 the officially reported number was $160 billion. The annual growth rate for this industry between 2012 and 2017 was recorded to be 3.2%. Details are included below.

MARKET SIZE

In 2017, the revenue for the US electrical wholesale market was reported to be $173 billion. That was a growth over the 2016 revenue, which was reported to be $160 billion. The annual growth rate for this industry between 2012 and 2017 is recorded to be 3.2%.

FINDINGS SUPPORTING THE JUMP IN GROWTH FOR 2017

The US electrical wholesale growth rate will change along with national rates of construction. Since the great rescission construction spending has been on the rise, but public construction spending growth has been flat and commercial construction spending has not risen as fast as in the years previous to the great recession. In 2016 non-residential construction spending plateaued and has picked up halfway through 2017.
The rate of growth in electrical distributor sales from 1967-2017 is reported to be 6%. The same growth rate for 2008-2017 is 1.5%. Projected growth in electrical distributor total sales for the years 2017-2021 is estimated to be 3.9%. For the year of 2016 growth of electrical industry total sales outlook dropped into negative territory. For 2017 these numbers rose back above 4% for total sales.
The industry experienced a lull in 2016. This fact may also be derived from the shared price share chart for WESCO International (WCC). The company experienced a 60% drop in stock price from January 2014 to January 2016. The bulk of it occurring from May 2015 to January 2016. Since then the price has nearly doubled.
Taking all of these factors into consideration, it is understandable why IBIS World, a private market research company, produced such a number for the 2017 electrical wholesale market revenue.

Conclusion

With annual revenue of the US electrical wholesale market showing steady growth from $160 billion in 2016 to $173 billion in 2017 and a 3.2% growth rate for this industry from 2012 - 2017, it is evident that the industry is experiencing a period of prolonged growth. The annual projected growth rate from 2017-2021 is expected to be 3.9%, showing that this growth will likely continue.
Part
02
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Part
02

City Electric Supply | Market Share

From the total electrical wholesale market valued at $173 billion in 2016, and City Electric Supply's reported revenue of $911 million in 2016, the company had a market share of 0.5%. Although they had a market share of 1% in 2015, it is assumed that they still hold on to their 2016 market share pending the release of their latest financial report. However, the top 5 companies in the electrical wholesale market by market share are Sonepar — 5.5%; WESCO International — 4.2%; Graybar — 3.7%; Anixter International Inc. — 3.7%; and Rexel Holdings USA — 2.7%. Meanwhile, in MDM's 2017 ranking of the top 25 electrical supply market, City Electrical Supply was ranked number 9 by revenue, hence, an indication that they may grab a bigger share of the market come their next financial report.

Methodology

After a rigorous research, there were no publicly available sources that published the current market share of City Electric Supply. However, extending our research beyond Wonder's standard two-year timeline, we researched sources that confirmed City Electric Supply's 2015 market share. Although their 2015 was good as a basis, we extended our research approach to source City Electric Supply's most recent market share. Hence, we resorted to researching the most credible and authoritative electrical wholesale market size. Handy with the electrical wholesale market size, we researched and sourced the most recent City Electric Supply's financial report. Next, we triangulated their revenue against the industry's market size to arrive at their market share.

City Electric Supply's Market Share

Off an official statement on City Electric Supply blog in 2015, their market share of the electrical wholesale market was reported to be 1%, although their current revenue in that year was not stated. Fast forward 2016 and City Electric Supply's market share dropped by 50% to settle at 0.5%. This was triangulated given that the total market size of electrical wholesale market in 2016 was $173 billion and City Electric Supply's revenue in the same year was $911 million.

Top players and outlook

Amongst the companies with the most respective share of the electrical supply market, none boasts of a two-figure share of the industry. However, the top 5 companies all amassed revenues in billions and the competition for a share of the market looks like a hot contest with no clear leader. The top 5 companies by market share are Sonepar — 5.5%; WESCO International — 4.2%; Graybar — 3.7%; Anixter International Inc. — 3.7%; and Rexel Holdings USA — 2.7%.

Ranked amongst MDM's top 25 electrical wholesale companies in 2017 by revenue, City Electric Supply was number 9 on the ranking. Although their revenue figure was not stated, it leaves clues that being in the top of half of the ranking, City Electric Supply may grab a bigger share of the market come their next financial report and that of the industry.

Conclusion

With City Electric Supply's reported revenue of $911 million in 2016, and the electrical wholesale market valued at $173 billion in 2016; City Electric Supply has a 0.5% of the electrical wholesale market.
Part
03
of three
Part
03

City Electric Supply | Competitive Landscape

In our research, we have found Anixter, Graybar and Crescent Electric Supply Company are competitors of City Electric Supply. We have created a competitive landscape in the spreadsheet as requested. You will find the methodology for our findings below that provides an understanding of the companies we have chosen and insights about the companies that we have made in the spreadsheet below.

Methodology

To find competitors of City Electric Supply, we first researched companies that provide similar products that services similar target markets. We believed that researching these two areas for a competitive landscape would create a foundation for compatible competition for the companies. Within this research, we found many companies that followed these two targets. Therefore, we further researched our group to find 3 companies that supply the most similar products to City Electric Supply.

Once we solidified Anixter, Graybar and Crescent Electric Supply Company as our 3 companies for the competitive landscape, we did extensive research to find the necessary information for the companies. Unfortunately, there was not available demographic information when considering target market; so we focused on the specific industries that consisted for each target market. The company website for each company provides the majority of the information that was needed for the competitive landscape.

conclusion

To wrap it up, please find a competitive analysis of Anixter, Graybar and Crescent Electric Supply Company on the attached spreadsheet.
Sources
Sources