SPA Featured in ElectricalTrends Article on Affiliated Distributors’ Electrical Divisions’ North American Meeting in Dallas, TX
The ElectricalTrends article, “AD’s 2015 Electrical Division Meeting Update”, discusses observations gleaned from conversations with a number of distributors and manufacturers about their revenue and margin pressures and how they are looking to strategic tools to address them.
“The theme was Together, We Win”
The meeting attracted about 1,000 people. 134 distributors with almost 500 attendees and over 100 manufacturers. Much interaction between distributors and manufacturers compressed into two days.
“Practically all distributors who are involved in the industrial market are down.“
The decline has accelerated during the summer. The amount down varied from “a little” to “double digit”. Declines were due to oil / gas markets, OEM focus (especially for OEMs selling to Europe and Asia), the agricultural market and overall industrial.
“industrially-oriented manufacturers are considering layoffs if the market does not turnaround shortly”
It was rumored, and in some cases confirmed, that industrially-oriented manufacturers are considering layoffs if the market does not turnaround shortly.
Initial forecasts for 2016 is 0-3% even though an economist who presented at the Graybar national meeting the prior week, according to manufacturers, is projecting a 9% increase. While no one could understand how he got to 9%, this is a projection based upon assumptions. If the price of oil increases “significantly” (from where it currently is), this could change market dynamics as the oil / gas industry (and the ripple effect from this industry) could benefit the electrical industry.
“A number of distributors are adopting CRM tools.”
Some of this reportedly is due to Rockwell’s reappointment process; some of it is companies recognizing the need to have better systems for customer databases, marketing automation and sales analytics.
“When the economy slows it’s interesting how pricing becomes more of an issue.”
There was a session for AD financial networks on pricing. Over 50 CFO’s attended a session conducted by Strategic Pricing Associates.
Click here to read the complete article.
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