NAED Releases 2010 Performance Analysis Report (PAR) Highlights
The National Association of Electrical Distributors (NAED), St. Louis, released its annual Performance Analysis Report (PAR) Highlights this week. The report shows that electrical distributor profit margins decreased to a median of 1.1% in 2009, compared to medians of 2.6% in 2008, 3.2% in 2007, 3.7% in 2006, and 2.9% in 2005. Among the top performing 25% of "high profit" distributors, the 2009 profit margin was more than four times as high at 4.7%.
The report also showed 2009 median sales decreases of 22.4%. The typical distributor surveyed, based on median figures, had annual sales of $48.7 million and achieved a gross margin of 21.7% in 2009. Inventory turnover was 3.8; payroll expenses were 14.6% of sales. For more information on NAED's PAR report click here.
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Jim Lucy Blog
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Jim Lucy has been wandering through the electrical market for more than 30 years, most of the time as an editor for Electrical Wholesaling, Electrical Marketing newsletter and CEE News. During that time he and the editorial team for the publications have won numerous national awards for their coverage of the electrical business. He showed an early interest in electricity, when as a youth he had an idea for a hot dog cooker. Unfortunately, the first crude prototype malfunctioned and the arc nearly blew him out of his parents' basement. Before becoming an editor for Electrical Wholesaling magazine and Electrical Marketing, he earned a BA degree in journalism and a MA in communications from Glassboro State College, Glassboro, NJ., which is formerly best known as the site of the 1967 summit meeting between President Lyndon Johnson and Russian Premier Aleksei Nikolayevich Kosygin, and now best known as the New Jersey state college that changed its name in 1992 to Rowan University because of a generous $100 million donation by N.J. zillionaire industrialist Henry Rowan. Jim is a Brooklyn-born Jersey Guy happily transplanted in the fertile plains of Kansas for the past 20 years.