TED Magazine - May 2017

ELECTRICAL INDUSTRY LEADERS HAVE REGARDED the outlook for 2017 as positive for the U.S. econ- omy, construction, and electrical industry. While both manufacturers and distributors anticipate company growth in the coming year, they identify health- care and labor costs as the biggest challenges to business performance in 2017. These were among the key takeaways from an online survey of elec- trical distributors and manufacturers that NAED fielded in the fall of 2016. Eighty-five industry leaders an- swered questions con- cerning their economic expectations in 2017. Many respondents also contributed comments reflecting their perspec- tives on the industry. More than half of respondents predict an increase of 1% to 5% in capital spending, while a quarter are expecting an increase of 6% and above. However, re- spondents also listed several significant concerns: 1. Improving part- nerships. Strengthen- ing the distributor/ manufacturer relation- ship was identified as a top concern for many participants. Closer communication and ties were cited as para- mount for the health of the industry. 2. E-commerce and technology. E-commerce, a long-standing priority, proved once again to be a central focus for distributors looking to withstand competition from other outlets like Amazon. 3. Hiring and training. Hiring a skilled, diverse, and technically competent workforce remains a concern. Participant Breakdown Survey respondents hold a variety of high- level positions in their companies. Nearly half are president (19%), CEO (12%), or owner (12%). A similar share is vice president (29%) or general manager (16%), with the remain- der spread among other titles. The companies themselves are highly diverse. Just over half (54%) are distributors, 41% are manufactur- ers, and 5% are manu- facturer reps. About 38% each are located in NAED’s Eastern and South Central regions, 21% in the NAED Western Region, and 3% outside the United States. While the most com- mon employment size (counting both head- quarters and branches) is 100 to 499 employees (36% of respondents’ firms), sizes range from fewer than 25 employ-
INSIGHTS FROM THE C-SUITE
The 2017 State of the Industry survey reveals optimism mixed with caution. by Ken Simonson