2017 NAED Market OverviewPublished April 2017

NATIONAL ASSOCIATION OFELECTRICAL DISTRIBUTORS

NATIONAL ASSOCIATION OFELECTRICAL DISTRIBUTORS

INTRODUCTION

The National Association of Electrical Distributors (NAED) has more than 400 distributor companies, serving nearly 5700 locations, and 230 allied and associate partners.

Purpose • This report provides key information regarding sales, customers, and services as

it pertains to members of NAED.

Data• NAED member product offerings• NAED member service offerings• Key customer segments for NAED members• Key industry segments for NAED members

Electrical Equipment Wholesaling Sales Trends• Industry customers by percent• Industry products by percent• Sales for full line distribution vs. total electrical equipment wholesaling• Full line distribution sales change by product line

32%

ESCO

Market Overview: At a Glance*

67%

Building Efficiency Solutions

Top Electrical Products Sold

Other Products SoldFire/ Smoke/ Life Safety

Energy Management/Green Technology Products

Industrial Control & Automation Devices

Power Quality/ Stand-by Power

Lighting Efficiency Solutions

94% 69% 66%

Energy Audits

Energy/Sustainability

Solutions

Energy Management Services Currently Offered

Top Three Customers

Industrial/ Original Equipment Manufacturer

36%

Electrical Contractors - Residential

Electrical Contractors - Commercial

*According to all distributor respondents

97%

Braker & Load Centers

97%

Fuses

97%

Cable Ties

96%

Wire and Cable

96%

Light Fixtures

96%

Conduit & Cable Fittings

96%

Ballasts

95%

Receptacles

95%

Lamps

95%

Connectors

95%

Dimmer Switches

95%

Timers

95%

Wall Switches

95%

Wire Terminals

95%

Occupancy Sensors

19%

16%

85%

77%

74%

68%

Economic Expectations for 2017

*According to all distributor respondents

Worse

About the Same

Better

U.S. Economy 29%

59%

12%

ElectricalIndustry

35%

62%

3%

Company’sRevenue

74%

22%

4%

ConstructionIndustry

33%

63%

4%

Who are our customers?*Average percent of customer segments for NAED distributor members

*These results are based on the average percentage of distributors reporting customers of each type. They will not total 100%.

36%

Electrical contractors- Commercial

19%

Electrical contractors- Residential

16%

Industrial/Original Equipment Manufacturer

3%

Utility

2%

DIY (Do-It-Yourself) buyers

2%

Other

7%

Electrical contractors- Other

4%

Commercial facilities

4%

Hotels/Hospitals/Schools/Malls/ Office complexes

4%

Government

What kind of green products do you offer?

Energy management/Green Technology

Products

2016

80%

2015

89%

2017

77%

Solar Energy

2016

36%

2015

42%

2017

37%

Electric Vehicle Supply Equipment

2016

39%

2015

48%

2017

34%

Wind Energy

2016

10%

2015

21%

2017

18%

*Multiple responses allowed*Percentage of distributors respondents offering these products

48%Sequencing

Orders

Services offered

*Multiple responses allowed

93%Wire and cable

cutting, stripping

87%Lighting layout

and design

56%Kitting/Assembly

services

57%Layout and design work

48%Customized

packing

47%PullingHeads 42%

Customized labels

23%

Din rail assembly, cutting, punching

25%

Power cord modification

and termination

15%

Radio-Frequency Identification

Labeling (RFID)

11%

Building Information Modeling (BMI)

Inventory management services offered

*Multiple responses allowed

Job site

delivery

Emergency

deliveryEarly

a.m.

delivery Staging

orders

Vendor managed

inventory

On-site containers

inventory

Project logist

ics

management

Night delivery to

a

secure containerCusto

ms

brokerage

96% 92% 89% 87%

67%

55%

47%

34%

9%

2017 Full-Line Electrical DistributionMarket Share

1Source: IBISWorld calculated the total Electrical Equipment Wholesaling Market size based on government defined NAICS data as of 1/2016. This report covers NAICS category, 423610 Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers. For more information about NAICS, see the Appendix.

* Note Data for IBISWorld reports are calculated independantly and are not meant to be compared year over year.

2Source: Epicor Vista Information Services, 3/2016. For the purposes of this report, a full line distributor is one that carries all types of electrical products. This compares to specialty distributors that only carry one type of electrical product i.e., a lighting distributor or an industrial distributor

2016 Year End Sales

Total Electrical Equipment Wholesaling1

Full-Line Electrical2

$174B

$63B

63111

Full-Line Electrical Distribution

Other Distributors

billion

billion

Download the full report at naed.org/marketoverview