The National Association of Electrical Distributors (NAED), St. Louis, released its annual Performance Analysis Report (PAR) Highlights, which compiles performance data from NAED electrical distributors to provide a benchmark for distributor operations in the industry.
The report shows that electrical distributor profit margins increased to a median of 3.3% in 2012, up slightly when compared to the 2011 medians of 3%. Among the top performing “high profit” distributors, the 2012 profit margin was 6.3%, consistent with last year’s profit margin. The typical distributor surveyed, based on median figures, had annual sales of $70.7 million and achieved a gross margin of 21.6 percent in 2012. Inventory turnover was 4.3; payroll expenses were 13.1% of sales. Details