It’s never too tough to get electrical contractors to speak out on their biggest industry concerns.
A research study commissioned by the Electro-Federation of Canada and presented at the Electrical Supply & Distribution Conference held June 4-7 in Charlevoix, Quebec, offers a fascinating snapshot of what Canadian electrical contractors think about the services they require of electrical distributors, product branding and a broad range of other industry issues.
The study, “Understanding the needs, wants and trends of large electrical contractors in Canada,” was done by Pembroke Consulting Inc., a Philadelphia-based research firm that focuses on wholesale- distribution markets. It was based on more than 30 in-person interviews with electrical contractors and over 300 survey returns from Canadian electrical contactors.
For electrical manufacturers, independent manufacturers’ reps and distributors, the contractors’ opinions on product brands may be of particular interest. For roughly half of the product categories in the study, brand held little value and the contractor’s buying decision was based on source. The product categories where contractors were most willing to buy a different brand from a preferred distributor if that supplier did not carry their preferred brand were wire and cable, electrical connectors, (wire, grounding and termination), electrical fittings and boxes, lamps and conduit and raceway accessories.
The product areas where the electrical contractors would contact a different distributor to get a preferred brand if their first-call electrical distributor didn’t stock the product were motor control and automation products, lighting fixtures and telecommunications products. The buying preferences of smaller electrical contractors (five employees or less in this study) tended to follow those of larger contractors surveyed, but with wire and cable, they had less concern with brand than did the larger contractors.
The study also highlights the value-added services that contractors value most from electrical distributors. The top five services for large contractors were (in descending order) timely response to bids, ease of ordering, availability of specific brands, lowest possible prices and immediate product availability. Smaller contractors had similar concerns, but they ranked “quality of the brands carried” and “in-depth product knowledge” in their top five concerns.
The topic of distributor relations sparked some spirited responses. Said one respondent, “I can tell you that after 40 years in the industry, relationships with distributors area at an all-time low.”
One concern that surfaced was that the largest distributors had lost the personal touch that many contractors want. “Larger distributors have become too corporate,” said one respondent. “The people I am forced to deal with don’t have any knowledge of the trade.”
“Large electrical contractors voiced many frustrations with the distributor supply chain, but over 90 percent said they were looking to establish even closer working relationships with their best suppliers,” said Mark Dancer, vice president, Pembroke Consulting. “This finding opens the door for distributors to develop creative, customer-driven value-added services and strategies.”
“This report will help our members better serve large electrical contractors, both collectively as a supply chain and as individual distributors and manufacturers,” added Rick McCarten, vice president of the Electro-Federation Canada’s Supply and Distribution Council. “Our goal is to remain the channel of choice for large contractors.”
Electro-Federation Canada is a national, not-for-profit industry association representing over 250 member companies in the electrical, electronics and telecommunications industries in Canada. The study is available in its entirety at www.PembrokeConsulting.com.