Electrical Wholesale Distribution News Analysis

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Electrical Wholesale Distribution News Analysis

Key Takeaways

  • Wholesale distributors in the US will benefit from a $1.2 trillion infrastructure bill that was passed into law by President Biden on November 15, 2021. The bill is expected to motivate the distributors to embrace digital technology to improve their operations and increase efficiency, and the distributors will benefit by "upgrading existing US infrastructures and supporting a transition to cleaner energy."
  • BMI Mergers & Acquisitions helped Xebec Adsorption Inc. to acquire Wisconsin Compressed Air. Xebec's investment will allow the company to manufacture and supply biogas as electricity in Wisconsin, which is one of the highest biogas using states in the US.
  • Schaedler Yesco Distribution has invested in a new 40,000 square foot central distribution center that allows it to increase its pallet storage locations, receiving space, and dock doors. The company understands that supply line issues can prevent the firm from having sufficient inventory to meet customer needs and as such, its new center gives it the flexibility to increase its lighting offerings and ensure customer satisfaction.
  • Siemens Energy realizes the importance of hydrogen, and it has become the first company globally to be ranked as a “H2-Ready” power plant, meaning that it plans to use hydrogen to decarbonize its energy supply and thus contribute to a carbon-dioxide free environment. The company received the certification recently from TÜV SÜD, but it is already in the process of constructing various power plants that will be operated fully or partially using hydrogen power.

Introduction

This research presents insights into the electrical wholesale distribution industry. It focuses on the most relevant news about events, innovations, competitors, major players, and vendors in the past two weeks. The details are outlined below.

News and Publications in the Industry

Publication 1

  • Link to the article.
  • Article Headline: Infrastructure Bill Fuels the Wholesale Distribution Industry
  • Wholesale distributors in the US will benefit from a $1.2 trillion infrastructure bill that was passed into law by President Biden on November 15, 2021. The bill is expected to motivate the distributors to embrace digital technology to improve their operations and increase efficiency, and the distributors will benefit by "upgrading existing US infrastructures and supporting a transition to cleaner energy."
  • The article, published on November 19, 2021, is relevant because it provides information about a potentially beneficial technology-related government bill that will help the wholesale distribution industry to grow. Although the bill includes distributors from various industries, all of them are expected to secure the necessary talent, technology, and distribution capacity so that they can benefit from the proposed infrastructure spending. New and emerging technologies are the way forward in all industries, so it is important that electrical wholesale distributors leverage this opportunity to improve their operations.

Publication 2

  • Link to the article.
  • Article headline: "Done Deal: Rexel USA Completes Acquisition of Mayer"
  • Rexel USA acquired Mayer's 68 branches across 12 states on November 8, 2021. The transaction will increase Rexel's financial value, geographical footprint, and supplier network, but at the same time, it will allow Mayer to leverage Rexel's digital technologies, enhance operational efficiency, and develop new services.
  • The article, published on November 9, 2021, demonstrates the strategic business, operational, and technological benefits that firms in the industry can obtain when they collaborate. They can leverage each other's digital capabilities and thus retain competitive advantage in a highly dynamic and competitive industry.

Publication 3

  • Link to the article.
  • Article headline: "NAED Opens Registration For Western Region Conference"
  • NAED is preparing to host an in-person regional conference from January 17-19, 2021 at the JW Marriott Desert Springs Resort & Spa. The event's theme is “Recharge & Reconnect”, and its main goal is to help distributors network more with their peers, discuss business, and catch up on industry events.
  • The article in tED Magazine, published on November 16, 2021, is relevant because it demonstrates that the restrictions placed on firms due to the pandemic have limited their ability to network, so such events are important in bringing industry players together so to share and implement innovative ideas that will help the sector grow.

Publication 4

  • Article headline: "High Natural Gas Prices Make This The Time To Build Back Better - With Clean Electricity"
  • Most homes in the US use fossil fuels for heating, but the high cost of these fuels poses a challenge for financially crippled businesses and families. However, those that use electricity for heating are expected to experience only marginal cost increases, and the adoption of smart climate policies as well as acceleration of the transition to clean energy will make energy affordable for millions of Americans.
  • The article, published on November 15, 2021, is relevant because it demonstrates how the increased manufacture and supply of clean energy will impact wholesale distributors, as those who do not comply with the energy changes will be charged a methane fee, which in turn reduces fossil fuel production. Distributors should consequently adopt fossil fuel and energy alternatives to ensure they do not face legal issues and lawsuits related to non-compliance with the proposed energy policies.

Publication 5

  • Article headline: "BMI Targeted Acquisition Program Leads to Growth in Wisconsin"
  • BMI Mergers & Acquisitions helped Xebec Adsorption Inc. to acquire Wisconsin Compressed Air. Xebec's investment will allow the company to manufacture and supply biogas as electricity in Wisconsin, which is one of the highest biogas using states in the US.
  • The article is relevant because it highlights the innovations taking place in the industry. Biogas use is growing rapidly in the US, and Wisconsin is among the states leading the charge in biogas use. Therefore, such investments allow firms in the industry to shift from traditional energy-generation practices to effectively supply of greener and cleaner energy sources.


News on Competitors, Major Players, Vendors

Publication 1

  • Name of the company the article focuses on: City Electrical Supply
  • Link to the article.
  • Article's headline: "ACES Acquires Soligent"
  • City Electric Supply (CES) and solar equipment distributor Soligent announced on November 12, 2020, that the former will soon acquire 100% of the latter's operations. The two firms are yet to finalize the deal, but it is expected to be formalized by the end of November 2021.
  • The article is relevant because it provides news on a recent merger and acquisition as well as information about the potential development of and increased access to innovative solar energy equipment and solutions. If the two companies merge, this will enable them to increase their economies of scale and deliver high-quality customer experiences across the country.

Publication 2

  • Name of the company the article focuses on: Genuine Cable Group (GCG)
  • Link to the article.
  • Article's headline: "GCG Acquires Allied Wire and Cable"
  • The article, written on November 9, 2021, announces how GCG is investing in firms that will help drive its growth in the coming years. It acquired Allied Wire and Cable to add to its growing portfolio of companies, which includes the recent acquisition of C&E Advanced Technologies and Advanced Controls and Distribution (ACD).
  • The article is relevant because it provides news on a recent merger and acquisition and discusses how firms in the industry are investing in other firms that operate using advanced technologies.

Publication 3

  • Name of the company the article focuses on: Schaedler Yesco Distribution
  • Link to the article.
  • Article's headline: "Schaedler Yesco Distribution Completes CDC Expansion"
  • Schaedler Yesco Distribution has invested in a new 40,000 square foot central distribution center that allows it to increase its pallet storage locations, receiving space, and dock doors. The company understands that supply line issues can prevent the firm from having sufficient inventory to meet customer needs and as such, its new center gives it the flexibility to increase its lighting offerings and ensure customer satisfaction.
  • The article, published on November 9, 2021, focuses on growth and investment in the industry and showcases how one firm, Schaedler Yesco, is growing in spite of the challenges related to the COVID-19 pandemic and the resultant economic recession.

Publication 4

  • Name of the company the article focuses on: W.W. Grainger, Inc.
  • Link to the article.
  • Article's headline: "Grainger (GWW) Benefits From Non-Pandemic Product Demand"
  • The company's earnings per share and revenue have increased over the past two years as it recovers from the pandemic and increases sales of its non-pandemic products. Grainger has invested significantly in non-pandemic products in order to mitigate supply-related challenges, and its investment in eCommerce and digital capabilities is also expected to enhance business growth in the long term.
  • The article, written on November 15, 2021, is relevant because it provides industry news on the gains some distributors have achieved in spite of the prolonged economic recession. It showcases how distributors can expand their operations to ensure they remain competitive in the current business environment.

Publication 5

  • Name of the company: Eaton
  • Link to the article.
  • Article's headline: "Department of Defense selects Eaton to manufacture sensors for critical naval applications"
  • According to the article, the US Department of Defense (DoD) has given Eaton a tender to manufacture technologically advanced inductive proximity sensors that the DoD can use in its aircraft shipboard applications. The company's new line of proximity sensors are easy to seamlessly retrofit and replace, and they will enable the DoD to increase its operating reliability.
  • The press release, published on November 9, 2021, is relevant because it announces an innovation from the company and how this product will provide benefits for a major US agency. Eaton provides services in various critical markets such as aerospace, military, and marine, so its involvement in the DoD project enhances its credibility in the industry.

Publication 6

  • Article headline: "Siemens Energy Receives H2-Ready Certification"
  • Siemens Energy realizes the importance of hydrogen, and it has become the first company globally to be ranked as a “H2-Ready” power plant, meaning that it plans to use hydrogen to decarbonize its energy supply and thus contribute to a carbon-dioxide free environment. The company received the certification recently from TÜV SÜD, but it is already in the process of constructing various power plants that will be operated fully or partially using hydrogen power.
  • The article, published on November 19, 2021, is relevant because it outlines how hydrogen, an innovative energy source, is expected to play a major role in the operation of power plants in the future. Other firms in the sector should therefore adopt this fuel source if they are to help achieve the environmental sustainability and climate change goals established by the US and other countries.

Research Strategy

For news on the electrical wholesale distribution industry in the US, we read through various industry reports, publications, documents, and market reports. These included tED Magazine, NAED, IDEA, PR Newswire, and Electronic Wholesaling. While each of these data sources had a lot of relevant news and information on events in the electric wholesale distribution industry, most of the news was more than two weeks old and could therefore not be included in this research.

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