Despite the uncertainty in the U.S. economy, electrical distributor that made Electrical Wholesaling's 2023 Top 150 ranking proved once again that they are a resilient bunch. For some companies, 2022 was a banner sales year, and many others saw their revenues blow past the +4% to +8% annual revenue increase range in the electrical market.
Electrical Wholesaling magazine has been ranking the industry's largest distributors since the late 1970s, and this year's ranking will be published in the magazine's May/June issue. Click here to download the 2023 Top 150 Electrical Distributors ranking.
Here’s what Top 150 distributors are saying about their business prospects.
Mike Pratt, CEO, American Electric Supply, Corona, CA, said supplier support and the strong Southern California economy contributed to his company’s sales increase in 2022. Pratt sees a +8% sales increase in 2023 and says the continuing construction projects at Los Angeles’ LAX airport and anticipated revenues from work related to the 2028 Los Angeles Olympics will support good future growth.
At OmniCable, West Chester, PA, Greg Lampert, president & CEO, said the company’s 2022 sales increase was due to the new products, new markets and investment in inventory to serve customers when supplies are tight. Lampert is optimistic about 2023 and is forecasting a +51% increase in revenues.
For some companies, price increases due to inflation accounted for a major portion of revenue increase. In the utility market, Matt Brandup, CEO, Rural Electrical Supply Cooperative (RESCO), Middleton, WI, says inflation accounted for two-thirds of his company’s 2022 sales growth. He’s expecting a +30% increase in 2023 revenues.
TEC Manufacturing and Distribution Services, Georgetown, TX, is another utility specialist expecting a double-digit increase in 2023 sales. Johnny Andrews, the company’s COO, is forecasting a +11% increase in revenues. He said that last year, the biggest driver for the company’s sales increase was adding new sole source alliances for electric cooperatives and municipal electric systems. “TEC manages the total supply chain for those organizations (demand planning, procurement, warehouse operations, inventory management, job kitting, and freight logistics),” he said in his response.
City Electric Supply, Dallas, continued adding new branches on a grand scale, and over the past year has opened 50 new locations. The company currently has 592 U.S. branches and 76 locations in Canada.
A prosperous Canadian economy and growth in the greater Toronto market supported a 2022 revenue increase for O’Neil Electric Supply, Woodbridge, ON. Stephen Kleynhans, the company’s president, said other contributing factors included immigration, an increase in construction spending and enhanced customer service. Kleynhans is forecasting a +15% increase in 2023 revenues.
At Jo-Kell Inc., Chesapeake, VA, a tightly defined OEM niche is producing solid growth. “The largest projects we have seen (and see in the immediate future) are in the automatic car wash OEM sector,” said John Kelly, the company’s chief corporate officer. “Our business in that market tripled in the past year, and we expect even more growth over the next year.”
Larry Swink, president, Jackson Electric Supply, Jacksonville, FL, said that while his company had its second-best year in 2022, it was a decrease from 2021. “The largest impact was the delays in the switchgear market resulting in 52 week-plus lead-times. The backlog carried over from these orders would have been another 35% in revenue with typical 12-week to 16-week lead times.” Swink expects sales to increase +20% in 2023.
Lead times were a challenge for K/E Electric Supply, Mount Clemens, MI, said Rock Kuchenmeister, CEO and president. “Vendor improvements in fulfillment during the second half of 2022 allowed K/E Electric to begin the process of shrinking our customer backlog. However, customer expectations quickly recovered (from COVID levels) and the company backlog has actually grown to unprecedented levels.” He is forecasting a +14% increase in K/E Electric’s 2023 sales.
Click here to download the 2023 Top 150 Electrical Distributors ranking.