Addition of softlines testing & inspection laboratory in Bangladesh allows UL to locally serve manufacturers at the epicenter of high-growth textile industry.

New tool enables specifiers, purchasers, and other EPD users to access critical product impact information quickly, easily, and consistently.

Accredited laboratory and scientific acumen bolster UL’s position as a global leader in product emissions and chemical content testing and analysis.

Award-winning solution enables compliance, risk mitigation, workflow automation and improved business performance for FDA-regulated organizations

Addition of global assessment, inspection and advisory services to expand UL's capabilities in fast growing renewable energy sector

Leading secure transaction technology provider fulfills UL's comprehensive service line for card and mobile payment industry

Today UL, a leader in global safety science, announces its new educational partnership with The Shingo Prize for Operational Excellence. The Shingo Prize is a world standard in the application of business principles that build excellence in organizations.

NORTHBROOK, IL, March 6, 2012 – – UL (Underwriters Laboratories), a world leader in advancing safety, will offer four presentations at the NPE 2012 International Plastics Exposition in Orlando, Florida, April 2nd through the 5th. These panels will feature UL experts who will offer insights into the industry’s future, its challenges, and its opportunities for manufacturers to position themselves most effectively.

Recent Incidents are Grim Reminder to Prevent Accidents in Your Home and Safeguard Family

The “Product Mindset” Explores Impact of Consumer and Manufacturer Perceptions on the Building Materials Ecosystem

Product Reliability, Safety and Innovation Rise to the Surface as the “Product Mindset” Explores Impact of Consumer and Manufacturer Perceptions of the High-Tech Industry

The “Product Mindset” Explores Consumer and Manufacturer Perceptions of the Food Industry

NORTHBROOK, Ill., Jan 17, 2012 – When the temperature drops and families head indoors to escape the cold, improper use of heating equipment can put homes at risk for fire. According to the National Fire Protection Association (NFPA), heating equipment fires account for 18% of all reported home (second behind cooking) and 22% of home fire deaths . Specifically, most home heating fire deaths (79%) and injuries (66%) and half (52%) of associated direct property damage involved stationary or portable space heaters .

UL to support all parties in payment and security industry with leading information and hardware security testing.

NORTHBROOK, Ill., December 12, 2011 – UL (Underwriters Laboratories), a world leader in advancing safety, today announced it will present “Energy and the Smart Grid Home,” a panel series comprised of UL renewable energy experts and in partnership with 2012 CES conference track sessions. The UL-moderated discussions will explore energy savings and generation as well as the LED transformation on January 12, 2012, at the Las Vegas Convention Center (LVCC).

The “Product Mindset” Explores the Impact of Consumer and Manufacturer Perceptions on the Product Ecosystem

The “Product Mindset” Explores the Impact of Consumer and Manufacturer Perceptions on the Product Ecosystem

Addition of Comprehensive Workforce Health, Safety Solutions Will Enable Employers to Improve Business Performance, Address Compliance Requirements, Governance Issues.

National Campaign Encourages Families to Commit a Minute to Safety

As a world leader in developing safety standards, UL is now offering a new premium service that provides customers with access to UL’s Standards Certification Customer Library (“SCCL”) via their smart phones.

NORTHBROOK, Ill., September 7, 2011 – As part of Baby Safety Month this September, UL (Underwriters Laboratories), a world leader in advancing safety, is reminding parents to commit a minute to safety. Because 2.5 million children are injured in their homes every year, reducing children’s exposure to potential safety hazards is crucial.

UL, a world leader in advancing safety, today announced that it has completed the acquisition of the Quality Assurance business of STR Holdings, Inc. [NYSE: STRI], an Enfield, Connecticut-based company. The acquisition, a $275 million all cash transaction, is part of UL's strategy to expand its offerings to global retailing and manufacturing customers.

UL to Sponsor “Fire & Police Night” at U.S. Cellular Field for Fourth Year

Adds Full Range of Quality Assurance Services for Retailers, Manufacturers of Apparel, Toys, Food, Private Label Brands, Other Consumer Merchandise

Adds Analytical Testing to Current Capabilities to Expand Value Proposition in Global Medical Device Market Segment

Shift in UL leadership provides for growth in certification and environmental service offerings

NRTL status no longer a requirement for auditors of NFPA 72 Certificated Systems Code

First-of-its-Kind Web Portal Empowers UL Customers to Manage Certification Process On-Line

Northbrook, Ill. May 26, 2011 -- With the unofficial kickoff to summer vacation fast approaching, many families are taking ‘staycations’ to save money and keep close to home. That means a growing number of parents are considering their backyards as a place to enjoy time with friends, families and neighbors. But while you barbecue, splash in the pool or watch the kids play tag around the play set, it is also important to remember that these summertime activities are known to send 2.3 million kids to the emergency room each year .

Full-Breadth of Services for HVAC, Appliance, Component Customers Positions UL To Win In Fast-Growing ENERGY STAR®, Smart Appliance Segments

Preparing Audio/Video, Information and Communications Manufacturers for the global transition to new standard

UL Proactively Developing Light Testing Capabilities to Meet the Ever-Growing Demand for Independent Photometric Testing Services in the Lighting Industry

UL will once again be at the IPC APEX EXPOTM in Las Vegas, USA, this year. We invite you to stop by our booth (#2415) to talk with our global team about your products, projects, market trends, and anything else you would like to discuss.

Northbrook, IL., February 10, 2011 – UL, a world leader in advancing safety, today announced the release of a new framework for certifying the resiliency of network and data center products. UL 2825 marks the first deliverable in response to recently introduced U.S. legislation requiring independent certification of network and security-related product performance and protection.

Research Triangle Park, NC., February 9, 2011 – UL, a world leader in advancing safety, today announced UL International (UK) Ltd. (UL UK) has been appointed as a notified body to the European Personal Protective Equipment Directive (PPE). UL UK is now notified as a testing and certification organization for personal flotation devices (PFD) including life jackets, vests, seat cushions, deck suits and all other flotation devices. The company can now offer CE Marking services for Europe in addition to the already well-established UL and ULC Mark for the US and Canada. PFD manufacturers gain the benefit of being able to work with a single certification organization for access to both Europe and North America, reducing time and cost to gain market access.

UL Environment acquires indoor air quality market leaders Air Quality Sciences and its certifying body GREENGUARD Environmental Institute

UL, a global leader in advancing safety, announced today it will provide external Lean and Six Sigma certification programs for personnel across a wide range of industries, including consultancies, academic institutions and training organizations. The programs, available beginning February 2011 through UL University, capitalize on an opportunity to address the needs of customers around the world.

Blink Electric Vehicle Home Charging Station Receives Safety and FCC Approval

Underwriters Laboratories (UL), a world leader in safety testing and certification, announced today the release of a white paper that addresses the current and anticipated regulatory landscape for manufacturers of home healthcare equipment. The white paper, “Home Healthcare Equipment: An Overview,” examines the new IEC 60601-1-11 standard, and highlights the unique challenges for manufacturers with the U.S. Food and Drug Administration’s (FDA) recently announced Medical Device Home Initiative.

UL is debuting a redesigned corporate web site to reinforce our position as a facilitator of global market access and expert resource for product testing and certification, knowledge services, performance testing, and environmental assessment.

New combined UL Mark & new pan-European UL-EU Mark provide greater global market access for products covered under the Construction Products Directive (CPD)

Real or artificial? That’s been the longstanding debate for families decorating during the holiday season. While personal preference is a primary factor for choosing a type of holiday tree, recent research by Underwriters Laboratories (UL) shows that a pre-lit artificial tree can be as much of a fire hazard as a dry natural tree. The product safety testing organization is announcing new flammability requirements for pre-lit artificial trees based on recent research that confirms artificial trees can contribute significantly to the growth of a small fire in your home if the tree is ignited.

Downloadable FAQ Delivers Comprehensive Solutions as 2012 European and Canadian Deadlines Approach

Underwriters Laboratories (UL), a world leader in safety testing and certification released the first in a series of white papers that review evolving battery technology.

Underwriters Laboratories Encourages Families to Commit a Minute to Safety on November 25

UL's world-class facility to be built in Suzhou coincides with 30 years of service in China

Underwriters Laboratories Announces Launch of the ULtimate Fire Wizard

UL showcases important crime-fighting tool at global IP law enforcement conference

Underwriters Laboratories Offers Family-Friendly Decorating and Costume Tricks and Treats to Help Prevent Accidents

Underwriters Laboratories (UL) Offers Tips on What Families Can Do Today

Paper outlines standards for motors powering household appliances

Study by Underwriters Laboratories looks at best safety practices for cities and outlines tips to help parents reduce preventable accidents

Underwriters Laboratories (UL), a world leader in product safety testing and certification, announced today that it has been recognized by Verizon Communications, Inc. as an Independent Test Laboratory (ITL) for its Thermal Modeling, Simulations and Test (TMST) program. UL's testing and certification services will help Verizon attempt to achieve its goal of realizing a 20 percent reduction of overall power requirements in network gear.

New PV laboratory in Japan offers full portfolio of services and enables manufactures to speed up their time to market

NORTHBROOK, Ill., August 30, 2010 – Underwriters Laboratories (UL), a world leader in product safety testing and certification, standards development and research, today announced its participation in the 2011 International Roofing Expo (IRE) Education Alliance. UL’s 2011 participation in the IRE Education Alliance will mark its sixth year sharing insights and expertise for the IRE’s multi-track educational program covering technical issues, workplace safety, management, green building, finance, sales and general business. UL will help develop educational content for an expected 7,500 architects, facility managers, manufacturers and institutional, metal and residential contractors around safety and sustainability based on, testing and standards development efforts and UL-led research.

UL CEO Keith Williams to give 2010 keynote on the evolving convergence of technologies.

NORTHBROOK, Ill., August 16, 2010 – Underwriters Laboratories (UL), a world leader in product safety testing and certification, has announced actress Nicole Anderson as the international spokesperson of the UL Safety Smart Program.

Coordinated compliance solution expected to reduce time-to-market and product introduction costs

NORTHBROOK, Ill., August 11, 2010 – Underwriters Laboratories (UL), a world leader in product safety testing and certification, today announced it will once again host the Chicago White Sox’s Annual Fire & Police Night on Wednesday, August 11 at U.S. Cellular Field. UL has sponsored the event since 2008, which pays respect to the thousands of Chicago fire and police professionals for their commitment to protecting the community.

By partnering with equipment and infrastructure designers, manufacturers, installers and inspectors to promote consistent safety standards, UL is enabling faster market adoption of Electronic Vehicles

Melville, NY – July 14, 2010 – Underwriters Laboratories (UL), a recognized global leader in fire research, standards development and the testing and certification of products, has once again joined with the Long Island Ducks baseball team to promote a community Fire Safety Day. The event will be held at Suffolk County Sports Park, home of the Long Island Ducks baseball on Thursday, July 15, 2010. The Long Island Ducks are a Long Island-based independent, minor league professional baseball team and a staple of the Long Island, New York community.

NORTHBROOK, Ill., July 8, 2010 – Underwriters Laboratories (UL) and ICC Evaluation Service, Inc. ® (ICC-ES®), announced today that Measurement Specialties, Inc., has successfully completed the dual listing program for plumbing, mechanical and fuel gas (PMG) products. The Dual PMG Listing Program provides authorities having jurisdiction and construction professionals with the validation that PMG products are code-compliant and meet the rigorous testing requirements of both ICC-ES and UL.

Gruppo Cimbali to benefit from UL’s global market access strategy.

UL continues the effort to accelerate the electrification of the transportation industry

UL to Help Manufacturers Make Safety a Focus Among Emerging Wireless Technologies

Underwriters Laboratories (UL), a global leader in drinking water quality and safety, today announced that it has combined existing proprietary testing methods for identifying emerging contaminants in water.

Underwriters Laboratories (UL), one of the world’s leading product safety testing and certification organizations, announced that Stephen C. Coley has been elected chairman of UL’s board of trustees.

Underwriters Laboratories (UL) today announced that Richard P. Owen has been elected to UL’s board of trustees.

Safety Organization Offers Pool, Play Set and Grilling Safety Tips

Safety Organization Offers Pool, Play Set and Grilling Safety Tips

Deal expands UL global services for wireless and cellular communications and payment systems

NORTHBROOK, Ill., May 27, 2010 – Underwriters Laboratories (UL), a world leader in product safety testing and certification, and Cal Spas, a global provider of luxury hot tubs and home resort products, announced today that UL has Listed Cal Spas’ newest “Fitness Swim spa.” Swim spas, which are also known as Fitness Spas or hot tubs, are oversized self-contained spas with higher electrical power requirements and expanded fitness and exercise functionality compared with traditional spa products. This is the first UL Listing in this category.

NORTHBROOK, Ill., May 19, 2010 – Underwriters Laboratories (UL), a world leader in safety testing and certification, today announced the establishment of revised requirements addressing the safety of lithium batteries. The requirements, issued in December 2009 as UL Subject 2591, are designed specifically for separators, the porous film that keeps the anode and cathode components of batteries apart while still allowing ions to flow between them.

OTTAWA, May 4, 2010 – ULC Standards, an accredited standards development organization, announced today the publication of CAN/ULC-S801-10, Standard for Electric Utility Workplace Electrical Safety for Generation, Transmission and Distribution. The standard applies to workers who deal with the construction, operation, maintenance and replacement of electric utility systems that are used to generate, transform, transmit, distribute and deliver electrical power or energy to consumer services or their equivalents.

Underwriters Laboratories (UL), a world leader in safety testing and certification, announced today that photovoltaic modules produced by an Applied Materials SunFab Thin Film Line™ are the first to qualify for UL’s Master Certification Program for the solar industry.

Underwriters Laboratories will train and certify system installers to meet growing demand for clean-energy technologies

NORTHBROOK, Ill., April 19, 2010 – Today, Underwriters Laboratories (UL) released a white paper on the new industry standard for audio/video, information technology and communication technology equipment, IEC 62368-1.

Joint Effort Celebrates Earth Day 2010 with National Call-to-Action to “Save Play”

Kimberlite Chemicals becomes first Indian company to earn UL certification for antiscalant water treatment chemicals

Home Improvement Accidents Send More Than 200,000 People to the Hospital Each Year; Underwriters Laboratories (UL) Encourages Consumers to Take Safety Into Consideration

Underwriters Laboratories (UL), a global leader in safety testing and certification, was recently named the exclusive Nationally Recognized Testing Laboratory for The EV Project, a groundbreaking study of electric vehicle (EV) charging station infrastructure.

Underwriters Laboratories (UL), a global leader in product safety testing and certification services, worked with Better Place, the leading electric vehicle services provider, to address the necessary safety requirements needed to help the company bring the world’s first electric taxis with switchable batteries to Japan.

Underwriters Laboratories CFL safety study finds energy-efficeint lights more versatile

UL continues to expand its global footprint in renewable energy sector to meet growing demand

Microtek Laboratories Signs UL Preferred Partner Agreement: Enhanced services for PCB manufacturers will help them get to market quickly and economically

UL to Help Taiwan Manufacturers Meet Global Safety Standards and Accelerate Global Market Access

Two global players come together to meet testing capacity and durability needs of solar industry

Manufacturer Receives Dual Evaluation and Certification for its Fortacrete® Structural Panels

Underwriters Laboratories Inc. (UL), a world leader in product safety testing and certification services, announced today that UL UK (UL International (UK) Ltd.), a Notified Body to the Construction Products Directive, has signed an agreement with SP Technical Research Institute of Sweden.

Underwriters Laboratories (UL) today announced that Frank J. Coyne has been elected to UL's board of trustees.

Working in collaboration with the Chicago Fire Department (CFD) and a fire service advisory panel, Underwriters Laboratories (UL) recently began a research project that will help the fire service worldwide improve firefighting tactics and reduce firefighter fatalities and injuries.

Addition of LTL Strengthens UL’s Global Market Position, LED Testing Capabilities

There are no instant replays when it comes to hosting a party or playing it safe on Super Bowl Sunday.

It’s silent, deadly and can lurk in your home while your family sleeps. Dubbed the “silent killer,” carbon monoxide (CO) is a colorless, odorless and poisonous gas that kills 500 people and sends 20,000 more to the hospital each year.

Underwriters Laboratories (UL), a global leader in safety testing and certification, has recently signed a Memorandum of Understanding (MOU) with the non-profit Rocky Mountain Institute (RMI) to support Project Get Ready, an initiative to aid U.S. cities preparing for widespread adoption and use of electric vehicles (EVs) in their communities.

Memorandum of Understanding to advance renewable energy and power distribution.

Company expands European Standards testing capabilities and increases global market access.

Underwriters Laboratories offers home heating safety tips as temperatures bottom out.

Addition of CCS strengthens UL’s global market position, EMC/wireless testing / certification capabilities.

Energy efficiency is the No. 1 attribute consumers seek when purchasing new home appliances, according to a new survey from Underwriters Laboratories (UL). More than half of American homeowners (57 percent) ranked energy efficiency as one of their top two considerations when purchasing new appliances.

Company unveils new state-of-the-art IEC 60601-2-24 laboratory

Manufacturers can now have products certified by a combined UL Mark

Underwriters Laboratories (UL), the leading product safety testing organization, and ICC Evaluation Service, Inc® (ICC-ES®), the United States’ leader in evaluating building products for compliance with code, today announced a partnership that will provide the building materials industry with a Dual Evaluation and Certification Program for building products.

Underwriters Laboratories (UL), a world leader in safety testing and certification services, announced today the publication of ANSI/UL 8750, Safety Standard for Light Emitting Diode (LED) Equipment for Use in Lighting Products. The first edition standard creates a global platform of safety requirements for LED lighting equipment as well as the entire supply chain of components used in lighting products employing LED technology.

Surveys from the National Retail Federation and Information Resources, Inc. suggest that uber-competitive bargain-hunting will dominate as this year's trend among families who have spent the year making only purchases of necessity.

Symposium to offer an automotive industry perspective on how safety can be embraced as core to success; point of view may be a roadmap for the home building industry

New Texas laboratory doubles company’s industry performance testing capabilities.

Company helps prepare automotive manufacturers for surge in electric vehicle demands.

As Halloween marks the kick-off of the holiday season, Underwriters Laboratories reminds families to take the necessary steps to keep their homes and children safe.

UL is helping families stay safe from potential home burn hazards this Fire Prevention Week.

Underwriters Laboratories urges parents to take advantage of teachable moments and sharpen their family’s skills in disaster planning during National Preparedness Month this September.

Symposium to offer an automotive industry perspective on how safety can be embraced as core to success; point of view may be a roadmap for the home building industry.

Underwriters Laboratories (UL), a global leader in drinking water quality and safety, today announced it has made significant improvements to testing methods for taste and odor compounds in municipal drinking water, by making procedures more sensitive and faster.

New safety requirements for large battery cells and packs to help address industry’s concerns regarding public safety.

CTIA Authorized Test Lab accreditation enables UL to assist mobile phone battery manufacturers in meeting North American industry requirements.

New certification path addresses mid-level fuel blends.

U.S. Cellular Field plays host to annual Police and Fire Night

Underwriters Laboratories, a recognized global leader in fire research, standards development and the testing and certification of products, joined the Long Island Ducks baseball team to promote a community Fire Safety Day at Citi Field, home of the Long Island Ducks baseball on Wednesday, July 15, 2009.

Underwriters Laboratories, a recognized global leader in fire research, standards development and the testing and certification of products is pleased to announce two of its employees have been recognized with prestigious awards for their contributions to the industries they serve.

Underwriters Laboratories encourages parents to take advantage of teachable moments and help children get Safety Smart.

With 40 percent more testing capacity, UL’s San Jose laboratory helps deliver solar products to market faster than ever before

Underwriters Laboratories (UL) today announced that Marla Gottschalk has been elected to UL’s board of trustees.

Underwriters Laboratories (UL) today announced that James M. Shannon has been elected to UL’s board of trustees.

UL’s new service offering for Data Acceptance Program (DAP) & Manufacturer Test Laboratories (MTL) customers

Underwriters Laboratories (UL), an independent product safety certification organization, today announced they have established a framework for future cooperation with Rolf Jensen & Associates (RJA), a leader in fire protection engineering and life safety consulting services. The framework encompasses building fire/safety evaluations and inspections, enabling customers seeking these services to utilize the expertise of two premier life safety organizations working together to achieve the project goals.

UL looks to new countries and expanded laboratories

Keep safety top of mind when grilling, swimming, and playing in the backyard.

Underwriters Laboratories, a world leader in product safety testing and certification, announced that it will soon begin offering the testing and certification of wind turbines in accordance with new UL standard requirements for safety.

UL medical experts to provide instruction on guidance for risk management in IEC 60601-1:2005 at IECEE workshop

Ready, Set, Recovery: UL’s tips help families reduce the risk of weather-related deaths and destruction.

Underwriters Laboratories Inc. (UL), a world leader in product safety testing and certification services, announced today that it has entered into a strategic partnership with Luminaire Testing Laboratory, Inc. (LTL), an independent source of photometric test reports for the lighting industry. The partnership positions UL as the first NRTL to provide Energy Star testing of LED products.

Underwriters Laboratories Inc. (UL), a world leader in product safety testing and certification services, announced today that it will purchase the assets of the Thermoplastics Testing Center (TTC) of Bayer MaterialScience AG.

UL helps industry manufacturers get innovative products and systems into the US marketplace.

Beginning today, you will experience a vastly different Web site as Release 1.0 of the new UL.com debuts. As the first of many steps in rebuilding your UL online experience, the new UL.com looks to provide you with faster, more direct access to UL industry, service, certification and Standards information.

Underwriters Laboratories (UL) urges families to carefully inspect spring cleaning tools and supplies to reduce risk of injury.

Underwriters Laboratories (UL), an independent product safety certification and leading standards development organization, today announced the publication of UL 2201, a Standard for Portable Engine-Generator Assemblies. Prior to this standard, there was no voluntary safety standard for portable generators sold in the United States.

Support follows months of research; company continues participation in government examination of other blends.

Underwriters Laboratories (UL) and the National Institute for the Defense of Competition and the Protection of Intellectual Property (INDECOPI) announced today an agreement to promote the use of UL Standards for Safety in the ongoing development of national safety standards in Peru via formalized communication and information exchange protocols.

Bitter cold weather can bring more than just frosty mornings and runny noses. Along with the winter chill come the dangers of deadly carbon monoxide (CO), whose odorless reach extends into household living spaces as more families turn to alternative methods - such as a fireplace, wood stove or portable heater - to heat their homes and save a few dollars.

Underwriters Laboratories (UL), a world leader in product testing and safety certification, today announced a new global structure designed to further enable growth and the advancement of its public safety message worldwide. As part of this effort, UL has aligned the organization into five operating units reporting directly to UL CEO Keith Williams.

Underwriters Laboratories (UL), a world leader in product safety testing and certification, announced today that the National Fire Fighting Company (NAFFCO) headquartered in Dubai became the first company outside of North America to be certified by UL for safety in the Local, Auxiliary, Remote Station & Propriety Fire Alarm Service category.

Most everyone enjoys that first snowfall of the season … the beautifully covered trees, the peaceful quiet of the outdoors. But what happens if Jack Frost throws a curve ball and those few inches suddenly turn into a blizzard. Are you prepared? Underwriters Laboratories (UL) - one of the world's leading product safety organizations -- offers some tips to keep families safe before, during and after a severe winter storm.

Underwriters Laboratories, a world leader in product safety testing services, today announced Christian Anschuetz as chief information officer. In this role, Anschuetz will work with executive management to establish IT strategies, goals and priorities and will provide senior leadership on key technology initiatives in the areas of enterprise resource planning, business process automation, computer systems validation, and electronic communications. Anschuetz will report directly to Keith Williams, president and chief executive officer.

Underwriters Laboratories Inc. (UL), a world leader in product safety testing and certification services since 1894, is on a mission to help educate consumers on how to keep their families and homes safe his holiday season. To help deliver the message, UL has partnered with television and film actor and new mom, Keri Russell, to launch a safety movement called Just Look for UL. This long-term campaign is designed to teach consumers the easy steps for making their homes safe by simply looking for the UL Mark. This Mark means that a product has been evaluated by the world's most trusted independent test laboratory.

Underwriters Laboratories Inc. (UL), a world leader in product safety testing and certification services, announced today that it will acquire the assets of Wakefield Laboratories, an electrical testing laboratory located in Auckland, New Zealand. Financial terms have not been disclosed.

During the recent annual meeting of the International Electrotechnical Commission's (IEC) committee for the IECEx Conformity Assessment Scheme, Kerry McManama, general manager of HazLoc Services at Underwriters Laboratories (UL), was unanimously inducted as Chairman of the Management Committee.

On Thursday, Oct. 9, Keith Williams, president and CEO of Underwriters Laboratories (UL) spoke at the 14th Annual NEBS (Network Equipment Building Systems) Conference in Orlando, Fla. The event, which was sold out, focused on key industry topics affecting manufacturers, independent testing laboratories, suppliers and end-users of telecommunications equipment.

Underwriters Laboratories (UL), a world-leading standards setting and product safety testing organization, announced today the signing of a Memorandum of Understanding (MOU) with Quatest 3, Vietnam, one of the leading conformity assessment organizations in Vietnam. The signing ceremony was witnessed by, Dr. Ngo Quy Viet, Director General of Directorate for Standards and Quality (STAMEQ).

As money-conscious savers continue to lose sleep over the financial institution crisis, consumers are increasingly taking their nest egg back to their nest - and into a personal safe. Consumers are buying personal safes in record numbers as an alternative to storing cash as well as to maintain and store financial information, personal data and medical records. But before consumers run out and buy a safe, they should be aware of important information regarding how to choose a safe that is safe and where to place it in the home.

Underwriters Laboratories (UL) today announced that George Williams has been elected to UL's board of trustees.

In a unique six-day conference, fire service leaders from around the world will gather in Chicago and Washington D.C. to share best practices, sharpen their management and leadership skills and discuss life safety issues facing the fire industry today. The Global Fire Service Leadership Conference, presented by Underwriters Laboratories (UL), a product safety testing organization, will be the first of its kind. The event will start in Chicago on Sept. 21 - 24, and continue in Washington D.C. until Sept. 26. The conference will attract leading fire experts and industry leaders from more than 19 countries.

Lt. Governor Garamendi toured Underwriters Laboratories' (UL) new photovoltaic (PV) testing and certification facility in San Jose, California on Monday before unveiling his model to train Californians for jobs in the solar industry by creating partnerships between solar companies, colleges and labor. Garamendi gave UL high praise for its consistent efforts in growing new energy alternatives and demonstrating best practices in the solar industry.

Underwriters Laboratories (UL), a world leader of product safety testing and certification services, announced today that it will partner with Air Quality Sciences, Inc. (AQS), an indoor air quality solutions provider for healthy indoor environments, to test and certify indoor air devices against an improved UL 867 ozone emission standard. The partnership between UL and AQS was created to respond to manufacturers who must comply with a new regulation adopted by the California Air Resources Board (CARB) that limits ozone emissions from indoor air cleaning devices sold into California.

As part of the Chicago White Sox' Annual Police and Fire Night on Tuesday, Aug. 5 at U.S. Cellular Field, Underwriters Laboratories will honor the dedication and service of Chicago's finest and bravest while doing its part to raise fire safety awareness.

Underwriters Laboratories (UL), a world leader in product safety testing and certification, announced today the opening of North America's largest commercially focused photovoltaic (PV) testing and certification facility in Silicon Valley.

Underwriters Laboratories (UL) today announced that James Dollive has been elected to UL's board of trustees.

Underwriters Laboratories (UL) is notifying consumers and retailers that Mager Submersible Fountain Pumps bear a counterfeit UL Mark for the United States and Canada. The pumps have not been evaluated for safety by UL and are not eligible to bear the UL Mark.

Smoke alarms have been saving lives for decades, but today the technology behind them is making headlines thanks to changes in the modern home environment and recent scientific research.

Underwriters Laboratories (UL), the global, independent safety testing organization, and Lowe's Home Improvement stores today announced a consumer safety initiative to teach consumers about product safety. Beginning May 3, UL's high-tech and entertaining mobile safety exhibit will engage and entertain consumers at 63 Lowe's locations across the country.

Underwriters Laboratories (UL) and the Bureau of Standards Jamaica (BSJ) announced today an agreement to promote the use of UL Standards for Safety in the ongoing development of national safety standards in Jamaica via formalized consulting, communication and information exchange protocols.

Underwriters Laboratories (UL), a world leader of product safety testing services, announced today that its Management System Solutions business will merge with DQS, a leading global registrar in independent third party management system certification services headquartered in Frankfurt, Germany.

Underwriters Laboratories (UL) and the Saudi Arabian Standards Organization (SASO) announced today an agreement to promote the use of UL Standards for Safety in the ongoing development of national safety standards in Saudi Arabia via formalized consulting, communication and information exchange protocols.

Underwriters Laboratories Inc. (UL) and CSA International have implemented the full operational expansion of a Memorandum of Understanding (MOU) that allows manufacturers of electrical products to obtain both UL and CSA International certification marks for their products on the basis of a single test program carried out by either organization.

Noribachi, a leading smart energy LED and solar lighting company, recently saw its ultra-efficient, cold temperature compatible LED fixtures successfully installed by Mark Pereira of C.I.M. Electric at Agro-Jal Farms' new state-of-the-art cold storag [...more]

Mini indexing plungers are a vital part of many machines as they offer a quick, tool-free and positive positioning system in a very small package, consistent with standard engineering practices and suitable for fitment to even thin gauge sheet metal [...more]

Dow Electrical & Telecommunications (Dow E&T;) are increasing the prices on all its products in the US and Canada by $ 0.06 per pound to all Non-Contract customers. This is effective today, May 15, 2012. Customers have been informed of this necess [...more]

UPS Systems has launched a new range of high performance static inverters, aimed at the security industry. The inverters ensure central power supplies used to provide a source of independent power for security equipment, such as emergency lighting [...more]

The very first truly universal fire rated downlight with complete compatibility for retrofitting all lamp types has been developed by Aurora. It can be directly covered with insulation, has been tested in 30, 60 and 90 minute fire-rated ceilings a [...more]

Cerro Wire LLC launches its large print Max Print wire labeling system, available now on all sizes of its True Sequential Footage sequentially printed cables. Max Print enables contractors to easily identify the wire manufacturer and size and view [...more]

Perfect light source for directional and decorative applications with low thermal resistance and high performance Adding to the performance and popularity of Everlight's 6.4W and 8W Chip-on-Board (COB) LED series, one of the highest CRI and highes [...more]

Amerlux has partnered with Illuminating Concepts and IntelliStreets to create the SmartSite state of the art LED street lighting and network control system. Amerlux, a manufacturer of a broad array of optically superior, energy efficient lighting so [...more]

Farnell element14, the leading multi-channel electronics distributor has added an extensive range of ABCIRP connectors from TT electronics to its portfolio. The rugged connectors and accessories have already achieved successful implementation in a n [...more]

Light + Building 2012 (Hall 4.1, Stand C26) Verbatim has unveiled the world's first colour-tunable and dimmable OLED module that delivers brightness of up to 2,000 cd/m². The company's latest series of VELVE OLED modules are twice as bright as earli [...more]

Motor change-outs often occur under intense pressure, and the temptation to take shortcuts is strong

The grounded conductor of a circuit or system is one that's intentionally grounded [Art. 100]

When a motor fails, production often stops

Losses of plant air capacity have caused production issues

What about electrical tests on breakers?

The Multilin EPM 6100 and Multilin EPM 7100 meters offer users the ability to accurately allocate costs to individual tenants

The PRC-500 Series of DC/DC converters provides 500W of power

The Coax Clarifier layout/fault finder measures cable length up to 1,500 ft

The security industry may have turned a corner on the road to recovery, and that is good news for electrical contractors (ECs) looking to broaden their offerings into residential security.

Structured wiring in commercial buildings must be certified that the network meets industry standards.

1 Interactive Display > Honeywell by Notifier’s ONYX FirstVision touchscreen navigational tool for firefighters and other emergency responders graphically displays critical information on the origin and spread of a fire, allowing firefighters to quickly locate and extinguish it.

Never start in December what you can put off until January seems to be the mantra in some corners of the construction industry.

The wireless trend continues to flourish, and another era of new standards looms on the not-so-distant horizon.

Electrical safety is as much an individual responsibility as it is an organizational responsibility.

Editor's note: The following is the last article Brooke Stauffer submitted to ELECTRICAL CONTRACTOR; we've been holding it for some time because of the uncertainty of his status.

Beginning with the December issues of ELECTRICAL CONTRACTOR and TED magazines, we are embarking on a campaign against counterfeit electrical products.

On April 14, 2009, ELECTRICAL CONTRACTOR and TED magazines hosted a free Webinar on counterfeit electrical products.

When I was in college many years ago, my psychology professor said, “Every year, we give the same tests, but each year, the correct answers change.

From the technology with which Alexander Graham Bell yelled, “Mr.

If you haven't heard, ElectricTV is a Web site that features video newscasts regarding the electrical industry.

The US economy is troubled, and manufacturers are facing even more of a downturn.

It was just brought to our attention that WUSA 9 News, a local news station for the Washington DC area, posted a very good article about the correct way to dispose of compact fluorescent lamps (CFLs).

An electrical contractor can be a mobile army of thousands of vehicles, and a threat to the safety of workers is growing.

The variety of fiber optic cables and connectors has required several methods to test the insertion loss.

 Get the wit and wisdom of NEC guru Charlie Trout delivered right to your email every day with the NEIS Code Question of the Day.

If you find yourself on Twitter and would like to be able to keep up with ECmag.

Many of you have asked us questions regarding the functionality of our Web site.

It's our pleasure to announce Stephen Kolarik of Bishopville, Md, as the winner of the $100 Visa gift card awarded for participation in the user survey.

In an effort to keep you, the reader, up-to-date on every facet of the industry, we travel to almost every convention and special event we can, and a large part of going to all of these places and meeting all of those people (when we are fortunate, we meet readers like you) isn't included in the magazine.

ELECTRICAL CONTRACTOR and TED magazines are hosting a free, one-hour Webinar on counterfeit electrical products on April 14, 2009, at noon, EDT.

NFPA 70E, Standard for Electrical Safety in the Workplace defines safe work practices for electrical construction and maintenance; the primary message of NFPA 70E is to turn off the power before working on electrical equipment.

Most of the attention to fiber optic cable specifications is focused on the cable itself, not the fibers in it.

Since May is National Electrical Safety Month, Frank Abagnale, the subject of the Steven Spielberg film Catch Me If You Can, starring Tom Hanks and Leonardo DiCaprio, stopped by to help us remind you counterfeit electrical products are a danger, and we must remain vigilant and aware.

To make it easier for you to win cash prizes and possibly a tool set from Klein Tools, you can now submit your Ideas That Work on ECmag.

How many equipment grounding conductors (paths) are required to be installed for a branch circuit supplying patient care areas when the governing body of the healthcare facility specifies isolated grounding (IG) receptacles for specific medical equipment? This question comes up far too often in the field to be left without a thorough explanation.

Electrical Contractor magazine notes with sorrow the passing of our long-time National Electrical Code columnist, W Creighton Schwan.

Many of you are familiar with the Reader Service & Renewal Cards in the magazine; however, there's no longer a need to fill out the clunky "bingo cards.

A branch manager for an experienced cabling contractor with whom I have worked for years is known to get a special glimmer in his eye when he discovers extensive fiber optic cable in a project that he is bidding.

In 2002, responding to the consequences of continual updates in communications cable, the National Electrical Code (NEC) added a provision requiring the removal of abandoned cabling.

The most recent issue of ElectricTV.

Once a communications cable is installed, proof of proper installation is needed to get the customer to accept it (and pay your bill).

Fiber optic cables are designed to protect the fibers, ease installation, and meet building codes and/or industry standards.

Charles Lindberg, the last surviving member of the patrol that raised the first American flag at Iwo Jima in WWII and an International Brotherhood of Electrical Workers (IBEW) electrician for 40 years, died Sunday, June 24, 2007.

In 2002, the Smithsonian Institute’s National Air and Space Museum produced an IMAX film called “Straight Up: Helicopters in Action.

Higher speed fiber optic networks demand lower losses in fiber optic cabling.

I’ve been creating these quizzes for almost 10 years now, but in reviewing my list of past topics, I realized I have never done one on the basics of fiber optics.

Update: More than a month after Brooke and Karen went missing, the update is that there still is no news; at this point, friends and family are presuming the couple dead.

This month, NECA CEO John Grau launched his new web blog, NECA Transmissions; "NECA Transmissions isn't just a blog about the association," he said.

For most of 2008, my monthly columns in Electrical Contractor have been about fiber optic network design.

Just as we have seen new technologies in optical fibers, new choices of cables are available for fiber optics.

Some areas of the nation have already experienced the harsh, sometimes damaging effects of winter.

When installing recessed fixtures, carefully consider the location of the units.

Reed Construction Data (RCD) has announced a two-part effort, starting December 1st, to help stimulate local economies throughout Louisiana and Mississippi: areas still rebuilding after Hurricane Katrina.

Security + Life Safety Systems Editorial Advisory Board members recently gathered for a half-hour roundtable phone discussion on the latest issues, trends and new products in the six markets that S+LSS covers.

The University of Missouri-St Louis and pharmacy benefit manager Express Scripts Inc.

For electrical contractors, architects, engineers, security and life safety system vendors and others, the prospects of working on government construction projects may seem challenging, but efforts in learning the process and submitting bid proposals can be rewarding.

Security+Life Safety Systems (S+LSS) magazine has named Ed Brown its new managing editor; a senior electrical engineer, Brown was most recently the managing editor of necdigest, a publication of the National Fire Protection Association (NFPA) that covers the National Electrical Code.

In light of the recent tragic events taking place at Virginia Tech, ELECTRICAL CONTRACTOR and Security + Life Safety Systems magazines would like to weigh in on the topic of campus security.

In August, we looked at the historical development of unshielded twisted pair (UTP) cable.

It’s only temporary wiring, so what’s the problem? Ever get the feeling that temporary electrical wiring is treated as an afterthought, if even considered at all? Many electrical workers treat it as though it is less dangerous than permanent electrical installations and those associated hazards.

According to Daniel Feldman, Technical Chair of the Ethernet Alliance’s PoE subcommittee, the base definition of power over Ethernet (PoE) is, “a technology that allows for the powering of devices through Ethernet cables.

The Home Depot established its first-ever Trade Scholarship Program.

There’s a bright spot in the economy—security, and the burglar and fire alarm industry continues to grow, fueled by advancements in computing technology and Internet protocol (IP) devices, software, cellular and other systems and services.

Americans can once again pride themselves on setting an example for the rest of the world.

Historically, shock and electrocution have been seen as the primary electrical hazards to people, along with fires of electrical origin, but today, awareness is growing of two other electrical hazards: arc-flash and arc-blast.

Highlights from Security+Life Safety Systems (S+LSS) magazine's panel discussion at ISC East in NYC City; S+LSS explored the electrical contractor's growing role in integrated building systems.

Andrea Klee, editor of ELECTRICAL CONTRACTOR magazine, and Edward Brown, managing editor of SECURITY + LIFE SAFETY SYSTEMS, discuss their plans for 2009.

John Maisel, publisher of ELECTRICAL CONTRACTOR magazine, discusses the Anti-Counterfeit Initiative, which is a joint campaign between ELECTRICAL CONTRACTOR and TED magazines and has the support of the National Association of Electrical Distributors (NAED), the National Electrical Contractors Association (NECA), the National Electrical Manufacturers Association (NEMA), and Underwriters Laboratories (UL).

Over the past year, we’ve thought quite a bit about the content that should be included on a redesigned site, what we need to grow and how to make it more reader-friendly and visually pleasing.

As a continually growing school, Utah Valley State College (UVSC) looked to create a state-of-the-art network to accommodate the school’s remarkable growth and vision for the future.

Radio Frequency Identification (RFID) is a method of identification using radio waves.

Robert L. Higgins, NECA's executive vice president from 1965 through 1986, passed away May 14, 2012. NECA celebrates his accomplished life and his many contributions of lasting value to our association and industry.

NECA expressed deep disappointment over the vote by the House of Representatives to restrict the consideration of project labor agreements on military construction projects  

Nearly 150 NECA members visited their elected representatives last week in a series of over 200 meetings on Capitol Hill to voice their concerns on issues affecting the electrical construction industry, including the urgent need for multiemployer pension reform; permanent repeal of the estate tax, and incentives for energy-efficiency investments. 

Utility holding company Ameren has awarded scholarships to enable leaders from three of its suppliers — BRK Electric, Donco Electrical Construction, and Miller Construction — to attend the Minority Executive Business Program at the Tuck School at Dartmouth College. These minority/women-owned companies are NECA-member firms.

OSHA has just announced the availability of new resources aimed at reducing the number of illnesses and deaths caused by heat exposure this summer — including a free application for mobile devices that enables workers and supervisors to monitor the heat index at their work sites.

The day after NECA's 2012 Convention ends, the adventure continues on the NECA 2012 Post-Convention Tour, concentrating on the Grand Canyon and Sedona, Arizona, October 3-6.

The NECA Government Affairs website has been revitalized with a new section that offers downloadable position papers. Plus, we've relaunched our Twitter feed. Check it out!

NECA's Future Leaders enjoy a highly successful annual meeting and look forward to upcoming events.

OSHA is spearheading a new "awareness campaign" that will provide employers and workers with life-saving information and educational materials to help prevent deadly falls in the construction industry.

An article by Milt Plews, president of Oregon Electric, promotes a construction industry with zero injuries. Take a look!

Lawson Electric, based in Chattanooga, recently installed an impressive new 197.34kW photovoltaic solar system on the grounds of Baylor School. The contractor retains ownership of the system.

NECA's 2012 International Study Mission, October 17-November 2, explores Mynamar, Thailand, and Singapore. Trip payment due August 18.

There are now 25 NECA Student Chapters in operation with the establishment of new ones at the Rochester Institute of Technology and Ball State University.

The Women in NECA (WIN) Leadership Summit, April 20-21, in Chicago was the first official event for the group of NECA members and chapter managers formerly known as the NECA Women’s Peer Group.

Now, project participants can work on, and share, standard construction contracts from ConsensusDocs using Microsoft Word on a PC or Mac thanks to the introduction of cloud-based technology.

Teams from 15 NECA Student Chapters submitted entries for the 2012 Green Energy Challenge. With evaluation of the entries now in progress, the competition judges are identified. Finalists will be announced in June.

A new strategic collaboration between the NJATC and 3M's Electrical Markets Division is developing an online curriculum for electrical apprentices. The first training modules are expected to roll out this fall.

In light of conflicting decisions at the district court level, the DC Circuit Court of Appeals has temporarily blocked the NLRB's rule requiring the posting of employee rights under the National Labor Relations Act, which had been scheduled to take effect on April 30, 2012. In March, the D.C. District Court found that the agency has the authority to issue the rule. In April, the South Carolina District Court found that the agency does not.

In light of conflicting decisions at the district court level, the DC Circuit Court of Appeals has temporarily enjoined the National Labor Relations Board's rule requiring the posting of employee rights under the National Labor Relations Act, which had been scheduled to take effect on April 30, 2012. In March, the D.C. District Court found that NLRB had the authority to issue the rule. In April, the South Carolina District Court found that the agency did not.

The ELECTRI International Board of Directors has voted to accept recommended governance changes to help streamline the Foundation’s operations, effect April 10.

ROSSLYN, Va., — NEMA’s Primary Industrial Controls Index increased 11.3 percent on a quarter-to-quarter basis during the first three months of 2012.

ROSSLYN, Va., —The National Electrical Manufacturers Association (NEMA) has published ANSI ANSLG C38.377 Specifications for the Chromaticity of Solid State Lighting Products.

What You Should Know Before 'Going Electric' So -- you've decided it's time to buy a new car -- and you're thinking about 'going electric.' While an electric vehicle might very well be the right choice for you, there are still some things you need to consider before you drive one home.

ROSSLYN, Va.— NEMA welcomed introduction today of the Helium Stewardship Act (S 2374) by Senators Jeff Bingaman (D-NM) and John Barrasso (R-WY), which will modernize and reform federal policy to better secure future supplies of helium for U.S. industry and government uses.

ROSSLYN, Va,— NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions retreated nearly 13 points in April to 59.1, following a sharp run-up earlier in the year to its highest levels since 2005.

ROSSLYN, Va. — Maryland Governor Martin O’Malley (D) signed NEMA-backed legislation (HB 2/SB 173) into law today to require the installation of carbon monoxide (CO) detectors in new and substantially remodeled public schools in the state. “Enactment of this law will hel...

ROSSLYN, Va., — The National Electrical Manufacturers Association (NEMA) has published ANSI/NEMA MW 1000 Magnet Wire.

ROSSLYN, Va., — The National Electrical Manufacturers Association (NEMA) has published NEMA ICS 8 Application Guide for Industrial Control and Systems Crane and Hoist Controllers .

ROSSLYN, Va. — Following a run-up of more than 20 points in January and February to its highest level in more than six years, NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions retreated slightly in March, slipping 0.5 points to 72. The ...

NEMA’s indexes for incandescent and compact fluorescent (CFL) lamp shipments increased by 29.4 and 3.6 percent, respectively, during Q4 2011 compared to Q3 2011.

ROSSLYN, Va.,— The National Electrical Manufacturers Association (NEMA) has published ANSI/NEMA FB 1 Fittings, Cast Metal Boxes and Conduit Bodies for Conduit, Electrical Metallic Tubing, and Cable ; NEMA FB 2.10 Selection and Installation Guidelines for Fittings for use with Non-Flexible Conduit or Tubing (Rigid metal Conduit, Intermediate Metallic Conduit, and Electrical Metallic Tubing) ; and NEMA FB 2.20 Selection and Installation Guidelines for Fittings for use with Flexible Electrical Conduit and Cable.

ROSSLYN, Va. —NEMA, the association of electrical equipment and medical imaging manufacturers, encourages industry action to expand meter socket lifespan and inspections. As the result of the rapid expansion of Smart Grid and advanced metering infrastructure, many utilities around the coun...

ROSSLYN, Va. —The National Electrical Manufacturers Association (NEMA) on behalf of its Energy Storage Council today applauded Rep. Chris Gibson (R-NY) and Rep. Mike Thompson (D-CA) for introducing legislation to promote adoption of state-of-the-art energy storage technologies. The Storage...

ROSSLYN, Va,. —NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions jumped sharply in February, rising more than 18 points to 72.5, its highest level in more than six years. The survey’s measure of the degree of change in current...

ROSSLYN, Va ., — The National Electrical Manufacturers Association (NEMA) has published NEMA SSL 4 Retrofit Lamps:

A multiyear, multiphase installation in Decatur, Ill., will be the first in the world to inject two plumes of CO2 in the same saline formation.

The federal, state and local funding required to launch public building and transportation projects has yet to materialize.

Designers stumble amid a stalling economy.

After years of steady, if quiet, growth, HDR’s Chicago office is suddenly among the most sought after in the region.

Non-residential construction expected to remain soft nationwide during summer months.

Democratic governor, Republican lawmakers split on funding for project.

Plan expected to create 30,000 jobs in the next three years.

Rather than increase capacity, airport should upgrade its air traffic controls, he says.

American Wind Energy Association warns that expiration of the tax credit could curtail future projects in the Midwest and elsewhere.

Project would eliminate need for a third regional airport, says Mayor Rahm Emanuel.

Proposed coal gasification will cost Illinois customers more than originally promised, opponents say.

Some 8,000 tradesmen converge on a site in Whiting, Ind., that touches three cities.

Ambitious program calls for carbon neutrality and net-zero designs.

Despite promising signs, the past year ended much as it began, with little additional construction spending.

Non-residential construction primed for significant growth in 2012.

Casino projects dominate the top 5 project starts in the Midwest.

Overall index remained in positive territory for the fourth month in a row.

Investigation centers on failure of fractured diaphragm plates

Job losses remain particularly high in Chicago metro market.

This week we look at a rain screen facade from Knight Wall Systems and a digital torque tool tester from Snap-On Industrial.

But officials hope foreign investment and boosted infrastructure spending will move growth rates up again

Construction industry news for the week of 5-21-12

The owner of Opryland and others are charging the U.S. Army Corps of Engineers and National Weather Service with negligence and failure to act during the event.

EPA and state officials in Washington and Oregon have asked the Corps of Engineers for a collective revew of impacts from the six planned facilities

Jefferson County, Ala., mired in a $4.1- billion bankruptcy, has gotten one of its nine sewer treatment systems removed from federal court supervision and plans to have the remaining four plants out over the next three years.

A recent study, presented at the Groundbreaking Women in Construction conference, held in New York City May 7, shows that women could benefit from the sponsorship for higher positions beyond mentorship.

On May 4, Delaware Chancery Court Judge Leo E. Strine Jr. imposed a four-month injunction on Martin Marietta’s hostile takeover bid, saying the firm “improperly disclosed confidential information.

Product warranties can shift the risk back to the product developer in return for profit potential.

This week we look at a new riding trowel from Allen Engineering and a new accessory for Gomaco slipform pavers.

Environmental groups that are monitoring the migration of Asian carp to the Great Lakes region are hopeful that a recent plan by the U.S. Army Corps of Engineers will accelerate the timetable for keeping the aggressive species out of the lakes.

Work is under way on latest iteration of commercial buildings energy survey.

As deficit worries press the U.S. federal government to cut its infrastructure funding, states and localities are filling some of the gap by getting more active in advancing public-works projects, says a new report on infrastructure trends.

The $174-million commuter rail’s second phase—a 9.2-mile corridor running through urban neighborhoods south of Boston—includes construction of four new stations and three bridge replacements.

A trio of rare designs is expected to save millions in North Carolina and in at least one instance prove that bigger isn't necessarily more expensive.

Industry officials say negotiations over revenue issues will be a key to a House-Senate deal.

Bowing to state concerns, Tampa Bay Water is moving to cancel the $41-million, 3-billion-gallon planned expansion of its existing reservoir.

Firms reach into their ranks—and outside—for directors with financial smarts, vision, leadership and diversity.

ArchiCAD 16’s Morph Tool and Green Additions Separate it From Other BIM Software.

A free-for-now construction photo organizing service delights its early adopters

Construction will start this year on a museum dedicated to the work of artist Zhang Da Qian.

Beijing-based dEEP Architects has transformed a pair of old factories into an office building for Material ConneXion.

SWA has designed the public open spaces for Suzhou Center.

On Tuesday morning, the 11-member Eisenhower Memorial Commission (EMC) met in a Senate office building to review changes made by Gehry Partners for its design of a President Dwight Eisenhower memorial in Washington, D.C.

The firm unveils its design for a performance art training camp in upstate New York.

Despite declining attendance and revenue, many cities are expanding convention centers or building new ones.

According to construction-economics data from McGraw-Hill Dodge, U.S. tall-building construction is down significantly from its 2006 peak. However, a handful of high-profile projects continue to move forward.

Continuing a recent push into Latin America, Richard Meier has brought his taut and planar aesthetic to Brazil, where the New York architect has been hired to design a seven-story office in Rio de Janeiro.

RECORD sits down with the new architecture critic of the new york times to discuss his plans for covering the designs of buildings, new york, and the wider world.

The History Colorado Center, designed by native David Tryba, opens this Saturday.

The curators of Inventing the Modern World: Decorative Arts at the World’s Fairs 1851-1939 spent years tracking down the 200 objects now on view at Kansas City’s Nelson-Atkins Museum of Art.

May 17–19 at the Walter E. Washington Convention Center in Washington, D.C.

We recently launched the first-ever mobile app to allow design and construction professionals to earn CEU credits on the go.

Now in its fifteenth year, the Architectural Record Good Design is Good Business Awards celebrate architecture as a vehicle to enhance a company’s bottom line.

This is the Year of the Museum for Tod Williams Billie Tsien Architects.

No one has a résumé like Vishaan The noted urban planner Vishaan Chakrabarti recently became a partner at SHoP Architects.

Today, the American Institute of Architects’s Committee on the Environment (AIA–COTE) announced its Top Ten projects for 2012.

The AIA New York chapter held its annual awards ceremony today at Cipriani Wall Street, an elegant banquet hall within a Greek Revival landmark that once housed the New York Stock Exchange.

The National Mall’s tree-lined strip of monuments, which teems with tourists during the day, usually empties out just after sunset, creating a strangely depopulated blank space in the center of Washington, D.C.

With this app, design professionals can search for building product information quickly on iPhones and Android devices.

We've all heard the stories about customers, and distributors, who pushed back on price increases, considering them a mere request by manufacturers that, if not substantiated, are ignored.  In fact, when manufacturers plan price increases they first determine what they feel their realized price increase will be (and never the twain shall meet!)


Some distributors believe this provides them a pricing advantage (they don't have to pass on an increase whereas others do). Some, theoretically, could tell customers there is an increase but not accept one, hence increasing their margins. Some pass on an increase and recognize that this helps increase their GP$ as a % increase on a higher number is higher GP$. And some push back because ... they can!


We recently received an email that was correspondence between a large distributor and a reasonable size manufacturer (and we're protecting the names so as not to embarass anyone).  The email copy was:

We received a letter today referencing an (Month) letter about a (Month) price increase. We never received this letter. The last one we had was from summer 2011.



We need to respectfully push back on this increase especially given we are up over xx% (almost 100%) on our out the door sales. This increase will dampened and may even reverse this good trend.


Please respond back as soon as possible, thanks!

Nice letter.  Any surprise that they "never received" the letter? And a price increase, probably around 5% as that is what increases average, will "dampen or reverse" sales - only if management / purchasing decides to convert sales to a competitive product as odds are competitors are following suit (or the manufacturer is following their competitor(s).


But, those with purchasing power have the ability to wield it.


So, this then begs some questions...
Should manufacturers cave easily?
Are manufacturers entitled to price increases for their own reasons (be it cost recovery, profit improvement, etc)?
Should benefits accrue to large distributors because "they can"
If you are a distributor, do you do this? Should you? Could you? (and if you have, what is the result?)


And manufacturers ask us why distributors ask for "things" (price concesssions, triple dip on rebates, additional dating, funding of people, etc...)  The reason ... because they can and manufacturers don't say no.

The role of a manufacturer is to sell product.  While distributors may like to think that the manufacturers are supposed to sell product to / through them, the reality is that manufacturers, more than ever, are looking at alternative channels, including selling direct to the customer.

Why?

Either the customers are requesting it or other channels are seeking to diversify their product offerings to gain a greater share of the customer's wallet.

What other channels? There are distributors in the medical field, petroleum industry, building material distributors, plumbing distributors, online entities, catalogs, farm supply houses, ESCOs and more vying to take a piece of the electrical industry.

But direct?

Yes.  In speaking with manufacturers they are seeing an increase in the number of requests by end-users, typically for capital projects or by OEMs, for the manufacturer to serve them direct ... sometimes with the distributor's knowledge! The reason for the requests relate to:

• greater interaction and coordination with the manufacturer's engineering department
• an OEMs ability to provide demand forecasting to a manufacturer, and
• reduced pricing

The OEMs do not see the value in the distributor as an inventory resource, a customer service expeditor or as a resource for other value.

In a number of instances the manufacturers are providing a nominal commission - 2-5% - to the distributor (who is happy to take the money and not do much, if anything).  Sometimes the manufacturer is in the stream of commerce and hence can also make some back-end money.

And think of the myriad of lighting companies that sell direct (small to medium sized LED companies!)

No one knows what percentage of the business is bypassing the channel by going direct (and manufacturers don't say what percentage of their business is direct) but anecdotally it is growing. It seems like there may be a couple of opportunities here ...

• distributors need to better market themselves as a value-added resource for these types of companies
• for distributors to position themselves as an information conduit to coordinate engineering efforts (or have engineers on staff to support the interaction)
• alternative business models and pricing formats could be considered
• partnering with complementary suppliers to pursue OEMs within a marketplace (or vertical market)
• embrace the commission model

What do you think of manufacturers going direct? Is this a viable way for a manufacturer to grow their business? Should it be an opportunistic / defensive strategy for a manufacturer or should they actively market it as an alternative (and remember, they already have the sales organization in place - direct people and reps!)?

Much has been written and discussed about Amazon's entry into the industrial supplies space through www.amazonsupply.com over the past couple of weeks.  While today they don't have much, if any, electrical offering on www.amazonsupply.com, we're confident that it isn't far behind - especially given that

• www.amazon.com does offer electrical materials, hence it wouldn't be hard to reposition them onto www.amazonsupply.com
• www.grainger.com offers many electrical SKUs online, providing a roadmap for Amazon
• They can easily source from other electrical distributors (and are doing so)

Some observations and questions

• How competitive is its pricing? Distributors always say price is important and their margins aren't high enough. Customers, including industrial customers, state price is an issue.  If price is so much of an issue, then how come Grainger and AmazonSupply can either have much higher margins than distributors (Grainger) or source from distributors (Amazon)?
• Or are manufacturers providing SPAs (special pricing allowances) to distributors to allow them to sell to Amazon?
• Is Amazon committed to this space? There is precedent in the incentive merchandise industry where Amazon entered an industry, gained share and then decided to abandon the industry. What are their goals? Are they committed to marketing the name through various channels to gain awareness or do they expect it to solely be generated through PR and the Amazon brand?
• One of the reasons Grainger is successful is because it markets to its core customer base, has salespeople to sell the value and its local stores also provide an additional resource for customers.  Will Amazon market itself? Will it be able to compete for multi-facility opportunities? Or does it want to be a convenience / ad hoc resource?
• Amazon entering the industrial space validates the observations that industrial, commercial and institutional customers are more apt to purchase online than contractors. Our Industrial End-User / Contractor Insight Research Report shared how this is a growing procurement process for these types of customers.
• We've had some distributors ask "why would other distributors want to sell to Amazon and hence marginalize their value?" To which we respond, "first, maybe they are looking at this as another channel / customer base for themselves are are only interest and increasing the number of units that they sell and second, perhaps they think, 'if I don't, someone else will.""

The one thing we do know is that Amazon has transformed retail for a number of product categories (books, electronics) and is the largest internet retailer (and interestingly Staples is also right up there). According to eCommerce Insights, a blog on ecommerce for B2B manufacturers and wholesalers, "AmazonSupply.com will be a major competitor and influencer in the B2B ecommerce space and that B2B organizations should not dismiss the potential impact. Rather, they should create a strategy that boosts their performance in the ecommerce space before AmazonSupply.com eats their lunch."

While we don't think www.AmazonSupply.com will eat electrical distributors' lunch, they could take a nibble ... and the more nibbles that are taken from the industry, the smaller the pie.

The key is not thinking you know what your customers want, but knowing and anticipating what they need or will need.  An electronic order entry system will become an expectation - especially given the proliferation of ordering methodologies and electronic hardware that is available (phones, tablets, text, punch-outs, etc). Distributors need a strategy for addressing their local customer needs and can also consider ecommerce as another sales channel to pursue additional business (and take a nibble from someone else).

Last week I had the opportunity to attend ABB's Automation and Power World (this is a link to the show blog - overviews a number of the sessions) in Houston.  Impressive event. Had over 5000 customers, 1000 sales partners, 500 workshops (including 75 customer case studies) and 130,000 square feet of exhibit space - their biggest show ever.  While the show covered all of ABB, including Baldor and other divisions that operate under their own name, it was very educational.


Joe Hogan, CEO of ABB, and Enrique Santacana, U.S. region manager, had some interesting things to say about ABB's future which, considering the trends, represent significant opportunities for electrical distributors and many other manufacturers.


Some key points from Santacana's short presentation:

• ABB expects industrial automation and electric power to be robust markets for 2012 and beyond due to:
• continued productivity improvements
• grid infrastructure modernization
• data driven processes ... the more we go digital with information (and tools like smartphones and tablets), the more data centers will be needed and the more electricity will be used
• natural gas investments, which generate new fuel sources, lower generation costs
• initiatives and interest in energy efficiency

Economic and Industry MegaTrends
Seth Rao, VP Industrial Automation and Process Control at Frost & Sullivan presented megatrends, and how they project key impacts to the world, especially industrial automation and process control.
Mr. Rao used an acronym called "DEEP-KIC", which explains the key factors impacting business:

• DEEP - Demographic, Environmental, Energy, Politicial
• KIC   - Knowledge, Innovation, Collaboration

Additionally, by 2050, 50% of the world population will live in cities - hence the need for transportation, electrification adn digital information.

He opened his presentation with a graphic of Thomas and Betts products. Explained that this is a "game changer" for ABB, that TnB helps ABB in Europe and China, that TnB has a "world class distribution system" (in reference to its 6000 distribution locations) - this created some consternation for some distributors, that ABB Low Voltage Products could benefit from TnB's "fast cycle" logistics and that the products were complementary.  He cautioned that it will be a process integrating the two companies and that people shouldn't expect much change initially (the deal was approved by T&B shareholders today and the Department of Justice has given its blessing this week.  Government approval from other countries should happen shortly.)

Nothing was said about the name change but we're betting that there is no change.  Probably will be Thomas and Betts, a Member of the ABB Group (like Baldor and some other companies they've recently acquired.)

He emphasized the importance of the US to ABB explaining that the ABB is the largest growing market and that ABB has invested $11 billion in North America in the past 3 years.

In looking towards the future (2015), Hogan stated that the strategy is to:

• Drive competitiveness (cost, design, products, existing business relevancy)
• Capitalize on megatrends
• Expand the core business, especially with services
• Opportunistically consider acquisitions
• Identify disruptive opportunities

As expected, much couldn't be said regarding TnB due to the deal not having closed, but the event shared some insight into the "why" of the acquisition and shared some cool case studies, applications and product exhibits.

And I'm sure that TnB will be exhibiting at Automation and Power World next year in Orlando.

But, more to the point, as an electrical distributor, what are your concerns about ABB's acquisition of TnB? What opportunities do you see? Or will it make you make some changes?

Last week the NAED Annual was held in Washington DC and, while we're sure that NAED will announce strong attendance, it seemed like a very quiet event...perhaps because the hotel is a little spreadout, perhaps because many meetings took place in manufacturer suites and meeting rooms or perhaps many who registered did not attend (or only attended for a day as the meeting did conflict with A-D's network meetings.)

According to the registration list, 90 manufacturing companies attendeed, 83 distribution companies attended (and this included multiple divisions of Rexel and Sonepar) and 6 foreign distributors attended.  The booth section was quiet as only 52 manufacturers had booths as did 7 affiliate members.

Unfortunately can't share any insights regarding the educational sessions as was not able to attend any (arrived late due to flight issues and met with clients / prospects ... need to make the meeting revenue generating!) but also couldn't find anyone who did go to the sessions.  NAED said it would post the handouts online (here's the link to the materials).

So, what did we hear:

• Heard of a couple of pending acquisitions with two companies you wouldn't think of making the acquisitions.  Heard of a number of other companies that are reportedly in play.
• Many manufacturers and most distributors experienced a strong first quarter.  Typically a 6-8% growth coming from industrial and energy initiatives.  Multi-family projects are also becoming more prevalent.  A number reported a "choppy" March, although hitting there numbers at the end of the month.  It was felt that there is an inconsistency to the business ... more project-oriented with little stock business.
• There was some discussion of www.amazonsupply.com which, at this time, is not promoting electrical products. Interestingly, we learned of some large regional / national distributors who are selling to Amazon. Other distributors couldn't understand why electrical distributors would enable someone who essentially is 1) a reseller, 2) is disintermediating the industry and 3) does not offer value-added services to customers and undermines the role of a distributor. (And yes, manufacturers do sell Amazon direct, the same as they do to other retail / catalog / Internet companies.)
• LEDs are growing like "crazy" both sales through distributors and through other channels for manufacturers.  The pace of innovation continues to be dizzying.
• Spoke to a couple of distributors who have customer scorecards and utilize them in sales meetings with their customers. The concept has been well received by customers who seek distribution partnerships.
• There was some rumbling, again, about reducing the number of industry meetings.  Given the nominal company attendance, it appears that this meeting is being boycotted by small to medium size distributors and manufacturers.  Perhaps the national meeting is the one to be eliminated (but that might be politically incorrect as executive managment from manufacturers like to be seen!)

I did make it to 2/3rds of the general session (missed Charlie Cook's political commentary in lieu of a few meetings - felt we still have 5-6 months for things to change).

A couple of observations:

• Tom Naber emphasized that the groups work well with NAED (which they do) but that NAED represents the entire industry (which is interesting since there are about 400 NAED distributor members and the groups represent over 1200 distributors).
• The NAED component of the session emphasized the organization's training initiatives ... a number of niche meetings (which can be effective in getting more people from a company networking opportunities) and it's learning center.
• The keynote speaker, Eli Lustgarten, Senior Research Analyst Industrial Machinery & Equipment for Longbow Research (he reports on companies like Cooper Industries, Eaton, Emerson Electric, and other industrial companies) gave a very very detailed presentation (from 110 slides no one could read!)  In essence he sees the economy slowing down to a 2 - 2.5% GDP in the 2nd half with industrial production being 3-5% (3% is considered stable, 5% is growth). Part of the concern for the 2nd half is the potential for a politically induced slowdown / contraction due to the end of tax cuts expire, cuts in government spending and the implementation of universal healthcare ... uncertainty may / will cause businesses to hesitate about making investments. If we survive the slowdown, he is optimistic for a 3-5 year run due to the U.S. being a low cost natural gas exporter, increased spending on energy efficiency, onshoring (which benefits component suppliers).  He also feels that there will be price increases affecting the construction industry (not just electrical)... 7-10% so it is important to track units to see if you are really growing.

Key markets segments include aerospace, oil & gas, multi-family, healthcare, manufacturing and warehousing.

For the electrical industry he sees mid single digit increases driven by lighting, retrofits, LEDs (supposed to become 30% of the market) lighting controls and the smart grid...if government policy doesn't get in the way!

• Key takeaways
• if you have the resources
• good time to craft strategies to take market share by targeting specific competitors / customers
• invest in growth segments (and markets)
• and if you don't have the resources
• manage your inventory and receivables - be conservative.

If you attended, what was your experience / what did you hear? If you / your company didn't attend, why and what would get you too attend (or should this meeting be the one that is eliminated?)

Recently I was listening to an ESPN affiliated radio channel that was broadcasting an NBA game. Consider the demographics of people listening to a basketball game on the radio?  And consider who was sponsoring the broadcast?



Are they marketing to solely businesses? contractors? for MRO opportunities? Or are they trying to also gain share of mind and position themselves as the "Amazon of industrial, commercial, "fix-it" supplies? If you listen to the ad, they emphasize that they cover 31 product categories, in other words, you can find it on our site.

And do you think these DIY customers are buying at some type of a "trade" discount? Could Grainger also be looking to maximize it's margins?

Grainger has always been known for:

• its strong operational platform
• its superior technology and database management (how else to produce the catalog and manage the website)

And these generated strong margins (the envy of all distributors) due to Grainger positioning themselves as the "convenience house" rather than a "price house" (but they do compete for projects and can on price.)

Now they are positioning themselves with the third leg of differentiation - marketing.  They are branding themselves to become known as the one-stop shop.  And through radio they will also pick-up the handyman / DIY market at even higher margins.

Which begs the question, if Grainger can do it, why can't an electrical national chain? Or for that matter, an independent distributor with a technology aptitude? Granted it is not the right environment for switchgear or lighting projects or to service tomorrow's (or today's) wiring needs ... and maybe not the project market at all, but could general electrical materials be supported (and then other products?) Consider www.automationdirect.com, www.tools.com, www.lugsdirect.com; www.econolight.com. www.discountdimmers.com (nice Lutron ad on the home page), www.circuitbreakerstore.com, and the multitude of online lamp distributors and lighting fixture manufacturers that sell online. (Note:  The above names were found at www.electriciantalk.com, which tells you contractors are finding these companies and talking about them ... they obviously have some business - and some buy direct from manufacturers while others are distributors!)

And don't forget you have Amazon selling electrical materials (some of it being supplied by other electrical distributors), and some manufacturers have Amazon as a customer, and Gexpro selling material through Fastenal.

While today's contractors (your customers) may not be buying online today, some people are.  If Grainger can do it, couldn't an electrical distributor (and if not nationally, perhaps regionally)?  The key is operational excellence, technology excellence and an understanding (and commitment) to marketing.

Do you know how much business you're not seeing?

Happy Earth Day!

Many manufacturers have introduced EV charging stations to the market and most are trying to figure out the most effective sales channel (is it the electrical distributor, Best Buy, Home Depot, appliance stores, garage door installers / distributors, automotive dealers, direct to consumers, home automation dealers???)

Reports of distributors being successful have been few and far between.  We've heard of a few distributors in Texas and California with specific orders but the norm seems to be companies seeking publicity / being good "corporate citizens" and installing one or two at their facility or within their community.

All we do know is that car manufacturers are committed to electric vehicles.  As batteries improve and there become more publicly available charging stations (at homes but more importantly at commercial facilities - destinations), the EV market will grow.

One enterprising EV automotive manufacturer believes that electrical contractors will be on the forefront of installing charging stations (wonder where they'll buy them) and has established a national electrical contractor relationship.  Click here to read the article.  The chargers being installed? GE's WattStation.

We recognize that this is a small manufacturer, but if GM, Ford, Honda, Toyota, etal partnered with EV charger manufacturers or their dealer networks (possibly by state) partnered with contractors - or dare we say distributors - could the opportunity become reality (and yes, the charger and the vehicle pricing needs to get more competitive).

Just a thought.  The reality is alternative energies will drive tomorrow's electrical consumption - be it electric vehicles, natural gas in vehicles or as an increased energy source, solar, maybe wind (in some places) and who knows what else (tidal?), distributors, long-term, need to stay abreast of an industry infrastructure that is changing.  The adage of "follow the money" applies ... both upstream and downstream within an industry.

You remember the song by Queen ...

Anyways, more electrical distributor consolidation ... another southern California distributor has been acquired by a national chain.  What was an independent distribution market in less than a year has been largely converted to chains.  CED's acquisition of Walters Wholesale marks the latest chapter in the consolidation saga.  Walters, according to last year's EW Top 200 was ranked #28 in the country and had revenue in excess of $200M.

Many may wonder why the Coburn family, who own CED, wanted to acquire more distribution in California, where CED already has many branches (the largest distributor in the state). Especially given that Walters does not fit the prototypical CED profit center (their name for a branch) model where locations are essentially individual businesses.  Walters had a central distribution center (CDC) to serve its 20+ branches.

But remember, the Coburn family purchased USESI on the East Coast.  USESI's model is essentially a CDC model (Standard Electric, Electrical Wholesalers, Maurice Electric, and others).  And essentially CED and USESI are sister companies.  We've heard that Walters will essentially be another sibling ... a stand alone entity (and yes, for the time being it is staying in IMARK - another indication that it will be a separate company ... (and theoretically could make other acquisitions that fit its business model - either locations to be fed by its CDC or other CDC-oriented companies.)  John Walters and Bill Durkee will still be managing Walters ... so it's business as usual.

Which makes one wonder, which is more profitable, the profit center model where each location essentially has its own P&L or a CDC model (or is there a certain size where one becomes more profitable than the other)?

Some other thoughts...

• With Sonepar and CED / Coburn family in acquisition mode, how many others in the top 50 will be acquired this year?  Presumably at some time Rexel will offer someone enough money to get them interested. Theoretically Crescent could make an acquisition (but our money is that they will make smaller ones initially as they don't have a great track record on growth through acquisitions.) And when was the last time WESCO or Graybar made an electrical acquisition?
• As the "better / larger" distributors (or consider it the middle tier companies - $50-250M) are acquired, as a manufacturer, what changes in strategy should be considered?
• While IMARK benefits from the "rent a member" strategy for now, aside from volume, what's the benefit to members (and is it truly supporting "independent distribution"?)
• With access to capital tight, are their regionals with growth aspirations who are willing to take on partners to fund their growth (equity partners) like OneSource did a number of years ago or, with banks being the lender of choice, will regionals, however, large, stay within a tightly defined geographic area?
• And with the economy in slow grow mode, generational issues, upcoming capital gains issues and other business dynamics, will the next 3 years transform the industry and result in greater consolidation?  (there will still be lots of distributors, but not too many are worried about the smaller distributor (<$20M) who is essentially a cash flow business or a wealthy generator for a family)

If you were thinking of selling, why? what are your criteria in evaluating buyers and whom do you think you would sell to?

If you are a manufacturer, are these acquisitions starting to make you think about a changing industry?

And the beat goes on ... and more will bite the dust!



Pat and his daughter



Pat being shaved

 

The new Pat Pat raised over $10,500.  Congrats Pat!  Email Pat your comments on his new look, click here.

Over the past year or so Rexel corporate has made 14 acquisitions to drive their growth strategy, thereby consolidating much of the revenue in the electrical distribution industry. These acquisitions have been worldwide - Canada, UK, Belgium, Brazil, India and China.  But interestingly, none in the U.S. while their largest competitor, Sonepar, has acquired a few leaders in the U.S. (Independent Electric in California and OneSource in California (and remember, California is the 9th largest economy in the world.)

We surmise that Rexel has been targeting these areas due to:

• continued diversification
• seeking growth markets (given that Europe, especially southern Europe, isn't a growth market)
• seeking to diversify assets into non euro currencies

And, Rexel has just recently announced a $300M bond offering with the funds to be used for "general corporate expenses and funding of bolt-on acquisitions"

We find it interesting that Rexel hasn't been able to find an opportunity to acquire a quality electrical distributor in the U.S., Perhaps Rexel has some reticence with its management team or distributors are choosing not to "trust" Rexel with their employees?

Interestingly, according to our sources, Rexel was either not a serious consideration, or a non-option, in recent U.S. acquisitions. Some of this, we understand, is due to perceptions about the U.S. operation.

We also understand that Rexel has closed 6-10 locations in the U.S. so far this year.  And, when you compare growth rates of national chains such as WESCO, Graybar and even HD Supply (although they don't break out electrical numbers), Rexel's U.S. growth rate significantly lags (and lags that of most quality independent distributors). And conversations with manufacturers are not overly positive regarding the direction of Rexel.  And competing distributors relish, in most areas, the opportunity to compete against Rexel.

It's a challenging conundrum for the Rexel management in the U.S., and presumably in Paris.

And then, Fortune names Rexel the 4th most admired diversified wholesaler (up from #10 the prior year), in the world.  While Chris Hartmann tried to take some credit in the U.S. stating "“This acknowledgement from FORTUNE, one of the most respected business media outlets in the country, confirms that Rexel’s unwavering commitment to our customers and our employees is making a difference” the only rationale reason for the ranking can be the analyst voting as few distributors are publicly traded (and Rexel still has private equity ownership involved).  Makes one wonder about Fortune's scoring process.

If you were Rexel, what would you do with the U.S. operation, recognizing there is no way that they would divest of the division - it represents a significant percentage of corporate revenues.

And, on a slightly different, but complementary, subject ...

• Given Rexel's revenue in the U.S. (Rexel and Gexpro) and with more monies to make acquisitions, and
• Sonepar has grown into either the top or a top 4 U.S. distributor based upon revenues, and
• That Sonepar plans to double its size within ten years (to $34B by 2021)

how much of the U.S. electrical distribution market will be controlled by French entities? Should this be a concern for distribution sellers? A motivator for some acquirers? Or should it make any difference?

Sunday is March 18th, the day Pat Schrager from Panduit loses what little hair he has ... but in the name of a good cause.  Fighting cancer for children.

Last month ElectricalTrends highlighted Pat's efforts to raise $10,000 to support this effort.  Last year he raised over $7300 (so like a good salesman, he set himself a stretch goal!)

He's close (about $500 short at the time of this writing).

As an industry, let's help him exceed his goal (which he's always pushing salespeople and distributors to do).

Click here to donate

And hopefully he looks better than last year's picture.

He'll share the new photo with us and the industry will get to see him at the upcoming NAED Annual meeting in Washington DC

Road Rage

We just came back from the NAED South-Central in Orlando wanted to share our observations, in no particular order:

• The lobby seemed to be regularly packed, as was the 1st night reception (the 2nd night seemed to have 1/3rd the attendance of the first night as many were off to manufacturer dinners).  Reportedly the workshops were lightly attended and the general session speaker was good.  Unfortunately we didn't get to the NAED speakers / sessions due to client and prospect meetings (which means we're like many distributors and manufacturers - the need to generate a ROI for the meeting registration fee is greater than sitting in sessions that "may" have value.
• In the terms of a couple of manufacturers, the one-on-one area didn't have any "energy".  Many distributors were in manufacturer suites / meeting rooms throughout the meeting.
• Business sentiment is "decent".  The construction market appeared to many to have a slight uptick, however, it is very geographically dispersed with major cities leading the way. The industrial market continues to be strong.
• Manufacturer sales seemed to be "all over the place".  Some up and strong, some fair, some off.  No rhyme or reason.
• Some lamented that it seems like every distributor wants to get into the industrial market.  Many without experience (or minimal experience) are seeking industrial lines and market share ... meaning bringing limited value-added to the marketplace and seeking to erode margins as they pursue sales (cashflow) and some margin dollars.)
• We had a number of questions regarding Crescent joining IMARK. Most came from manufacturers. Some had spoken to Crescent and were told that it was about getting to know distributors so they can make acquisitions (and IMARK asks members to consider selling to another member first - hasn't been too successful of a strategy over the years as distributors seek to maximize their exit strategies.)  According to 2 manufacturers, IMARK distributors didn't know about Crescent (they had to tell the distributors). Some commented about lack of transparency in decision making and reported some unrest.  We heard some comments about calls being made to AD (don't know if true as no one would admit to making one.) And a few wondered why it seems like IMARK is growing for the sake of volume.
• Rexel continues to flounder.  Reportedly some received an email last week on 4 more branch closings, on top of what was closed in January.  Heard that there isn't "brotherly love" between the two divisions - might have something to do with performance and job security!
• Heard of peripheral distributors looking to get into the electrical market.  Companies like Fastenal, Anixter, Motion Industries beefing up staff to become one-stop-shops to their customers.
• Lots of conjecture about the ABB acquiring T&B.  All talk as the deal won't close till probably July and the sides can't really talk at this stage (only the lawyers can!) Only thing guaranteed is status quo for now.  Lot's of speculation of moves by others. Reportedly Rockwell asked distributors for advise and floated the idea of acquiring Cooper. Some thought Rockwell should by GE Gear. Some thought ABB should buy GE Gear (but GE may hesitate for strategic rest of world issues). Some think Cooper will going on buying spreee (and we know that ABB will look to make more acquisitions based upon public comments by ABB and we heard that T&B was looking at some deals prior to being acquired), and remember that T&B had eyes on Leviton for years (could they be an ABB target) and ....  Essentially no one knows but a chess game is one ... it's called electrical consolidation!

If you attended, your thoughts?

We frequently get the questions of "what marketing tools work for distributors?" and "how much do distributors budget (or spend) on marketing?" While we have our opinions, we decided to ask distributors.

Earlier this year, Channel Marketing Group surveyed a sampling of distributors in the electrical, plumbing, HVAC, drywall, industrial supplies and PVF industries.  Over 1000 companies in total were surveyed and we received almost 200 responses.

http://slidesha.re/wyqPZw

We've compiled their input into a research report entitled "Understanding Distributor Marketing Tool Usage & Effectiveness".
In total we inquired about 75 marketing activities.  We also asked:

• what percentage of marketing activities include suppliers?
• what percentage of a distributor's marketing budget (with and without personnel) is funded by suppliers?
• how much distributors invest in their marketing?

The report is available for free at  http://slidesha.re/wyqPZw or can be purchased for $29 here (on Electricaltrends in the Research section.)
Key findings included:

• Distributor marketing plans are stale with the same programs. Need imagination and change with the current thinking.
• Creating awareness with logo’d products is effective but not the total strategy.
• Brand Awareness requires better planning with more effective programs.
• Trip and premium programs are very effective. It should be part of any marketing plan to grow business.
• Joint sales calls remain the most effective program when correctly planned.
• Customers want training. How good the training is needs to be at a high level
• The pace of technology continues to accelerate and is impacting marketing – ranging from websites to e-newsletters to smartphone apps to tablet technology. New usages are found daily to increase sales and customer productivity. Distributors are challenged on capitalizing due to pace of change, initialization costs, skilled personnel, security concerns and questionable ROI.
• Distributors, who guarantee product availability can differentiate themselves.
• Customers are looking for VALUE ADDED SERVICES as an overall component of their purchasing relationship.
• 62.5% of distributors do not have a value added service brochure. How than do they differentiate themselves or compete with the ones that offer services? Do the presence of brochures infer potentially a more aware sales organization?
• 50% of distributors do not solicit what their customers think of them. This begs the question of “how do they expect to know, and meet, customer requirements?

And ...

• Distributors allocate .217% of sales to marketing, exclusive of manufacturer solicited funding and 68% of marketing activities reference a supplier (many times for funding support.)

Distributors - what works for you? Manufacturers - what do you find worthwhile to invest in? and whom do you think distributors should consider "best in class"? 

Each year Electrical Wholesaling publishes its thoughts on the prior year's movers and shakers. Sometimes these are people, sometimes companies, sometimes industry issues.  While we don't have a crystal ball and we're less than 60 days into the new year, but there are some early contenders (electrical distributors, electrical manufacturers, personnel) sure to be in next year's article ... and topics that are generating conversation.  They include, in order of occurrence:

• IMARK Expands ... First with Crescent Electric, next with Power & Telephone Supply.

IMARK surprised many with bringing in the 27 state Crescent Electric which, according to phone calls we've received, surprised many members, thinking Crescent was viewed more as a national chain. In the words of a couple of manufacturers "this redefines the definition of independent. Wonder if Graybar or CED is next?" (note: Only WESCO, Rexel, EIS (owned by Genuine Parts) and Grainger are publicly owned companies)

Recently IMARK added Power & Telephone Supply, a "leader in the procurement, sales, material management and distribution of product solutions to the worldwide telecommunications marketplace" based in Memphis, TN.  From looking at their website, aside from cable, there appear to be limited focus on the core electrical industry.  Again, people asked "why" and our response is "don't know and presume IMARK will inform it's membership of its direction" (some of the calls have come from manufacturers.

• ABB Grows

ABB's acquisition of Thomas & Betts has generated much conversation albeit little informed insight. Aside from the fact that ABB wants to grow its industrial business, this is an interesting move and will be closely watched.  We understand that Rockwell and others have solicited distributor input regarding moves they should consider. The beginning of more industry consolidation? Will "parts manufacturers" become more aligned with gear / control manufacturers? Industry veterans may remember when it was discussed that Cooper could become part of Rockwell or Eaton and when GE Industrial Systems was up for sale.

We'd expect to see more from ABB as an article stated they had $18B for acquisitions through 2016.  They spent $4.5B for Baldor, $3.9B for Thomas & Betts ... who's next after they digest T&B?

• The Year of Acquisition

While Sonepar made a number of acquisitions last year we're hearing a number of a number of distributors putting out feelers. It seems that there is a confluence of generational issues, a flat market, eroding margins and the fact that the capital gains tax is expected to increase 12/31/12 are conspiring to accelerate distribution consolidation.

On the manufacturer side we're hearing that European companies are eyeing the US market due to the US being one of the few developed countries that is expected to have some growth and that European companies are seeking to convert euros into another currency.

Typically the EW list highlights a top 10.  3 spots may be gone in less than 60 days.  What are your thoughts on these market movers?  Conversation fodder for the NAED SouthCentral?

With no insight, perhaps given the convergence of datacom and electrical they are looking for acquisitions? Perhaps another way to improve profitability in some manufacturers / product categories? Perhaps IMARK wanted them for the sake of volume to further off-set its nominal operating expenses? Perhaps IMARK is planning on starting a telecom / datacom supply group and Power & Telephone is the catalyst to recruit new suppliers?  Other rational ideas? (DG)

IMARK definitely has the size, question is, will members and manufacturers benefit? And can a group of IMARK's size address the needs of its members or is management responsible to only a small group of board members (who all have full-time jobs). Perhaps at the upcoming Showcase IMARK members will hear the rationale and the vision?

For these moves, Bob Smith (IMARK) and Marty Burbridge (Crescent) get nominated for the 2013 list.

At ElectricalTrends our goal is to share industry observations and trends to help electrical distributors and electrical manufacturers with their business as well as comment on industry activities.  We gather our insights from publicly available information, which can include industry newsletters.  Occassionally we see something that we want to share and ask for permission.  Sometimes we solicit, or accept, guest contributors.


Last week, Egret Consulting, a premier recruitment firm that specializes in the electrical and lighting industries, published its newsletter, The Buzz.  We asked Ted Konnerth, an industry veteran whom many know, if we could share his thoughts on channel expansion, selling vs. fulfillment, the upcoming NAED SouthCentral and what it all may mean:

We were in attendance at the annual Strategies in Light conference last week. Strategies is the largest conference on high brightness LED in the world. Held annually in Santa Clara, CA (Silicon Valley), it features a remarkable collection of interests: component manufacturers, tooling manufacturers, fixture manufacturers, consultants, specifiers, engineers and techies. Attendance was somewhere over 5,000 people and the resounding sense of the conference was that LED has finally arrived at the mental state of acceptance. The attendees have always been ahead of the curve in understanding the full concept of solid state lighting, but this year was the first year where the topics of brightness and price point were virtually non-existent; it is now simply assumed that lighting will convert to LED. The only question is the speed of transition. So, now that LED is officially 'here,' the only remaining issue is... who's gonna sell this stuff?

I just reviewed the attendees to the Central Meeting of NAED, upcoming at the end of the month and as usual, the attendees are largely the same for the distributor members. BUT, within the manufacturing registrations, there are very, very few senior executives attending. Of over 100 registered manufacturers, there are fewer than a dozen CEO's, Presidents or Sr. VP's making the trip to Orlando.


The manufacturers are the leaders of the industry, attending a conference of their largest regional and national distributors and yet, the principle leaders are mostly staying away. These are channel partners who collaboratively figure out how to sell more stuff, together. But the Presidents of the largest manufacturers of switchgear, lighting, fuses, dimming, wire, conduit and controls are staying home. I presume they already know the distributors well enough that their presence isn't necessary. But it is also very true that the industry is changing rapidly; and channel relationships are straining.


The major gear manufacturers all have factory-direct sales models for developing the energy remodel (ESCO) segment of the industry; without traditional channel partners. The major lighting manufacturers have developed their own direct sales representatives to call on end-users to promote energy saving solutions; without channel partners. The most successful entrants into LED all have a direct to end-user sales model that eschews channel partners. Wire companies have always had narrowly defined channel sales organizations to promote specialty products into process industries or government sales, or mining, or under-sea cables, or utility, etc. But now, there is a rapid influx of new technologies that can only be promoted with a well-trained professional sales organization that is trained in the technical attributes of the technologies, plus the financial impacts to an end-user of applying those new technologies. Who can sell that kind of stuff?


Bob Reynolds, CEO Graybar recently posited a premise that wholesale distribution has largely abdicated the process of true 'sales' in favor of fulfillment. In short, sell what your customers ask you for. But what if your customers don't know anything about variable speed drives, or LED lighting or wireless environmental controls or solar energy? Or even worse, what if they do know about those technologies but also know that their regular distributor doesn't have the technical acumen to professionally advise them on which manufacturer is better, or how to qualify for rebates or tax incentives to support the decision? Customers, who have a need, will find answers to their questions. Will they find them within the traditional confines of a NAED conference? Not likely.

So what's a distributor to do?

Now that technology is here, what's the future for an electrical industry that is swimming in electronic solutions? I believe the future is channel expansion. I heard the term 'LED ESCO' several times during my Strategies in Light conference meetings. I'd never heard that before. We regularly talk to solar installers, who buy some of their material from electrical distributors, but more and more buy their electrical material from solar integrators; who buy wire/cable, connectors, panels, inverters, etc. and package them together into a contractor-friendly system that can be easily priced and installed. They buy all of those electrical supplies from varying sources; distributors, direct from manufacturers and from value-added resellers who can customize cables to lengths with connectors or terminations pre-installed. Inevitably, solar is moving to new channels of distribution.

The construction market is recovering, but it'll take a couple more years before it's recovered to levels of 2006-2007. The money is there now for those who understand how to sell something that few people know they need. Carefully crafting a professional financial presentation on capital investments to a CFO, President and Plant Manager will return profits that make buying group rebate dollars look like pocket change.
Who's gonna sell this stuff? The channels are emerging rapidly, whether or not the traditional partners will enjoy those opportunities is up to them. But when the Presidents of the major manufacturers in the industry choose to not attend a meeting of the largest regional distributors, they've already figured where their future lies.

Your thoughts on Ted's observations? What does the declining role of manufacturer / distributor relationships portend?

Last week the industry's electrical supply reps got together in San Diego with their manufacturers. Like other NEMRA meetings I've been at, there was much work conducted with everyone in one-on-one meetings for 2 1/2 days (at least) plus manufacturers having group meetings with their sales teams. For many manufacturers, this is their national sales meeting.

Some observations and feedback we heard:

• NEMRA had a very good turnout.
• While I didn't get to the opening session (sorry Ken), many people commented on the powerful message of the keynote speaker.
• Many reps had a good / decent year. While this may conflict with a number of manufacturers, remember that reps carry a plethora of lines and typically call on multiple market segments (as well as geographic areas).  Some commented about a few manufacturers that have cut margins over the years, said they were going to re-instate them, haven't, but expect a much higher level of performance (and paperwork).
• Some expressed frustration with multiple manufacturers going to Salesforce.com, forcing them to use the same system differently for each manufacturer.  One Pass & Seymour rep mentioned that they originally fought the Salesforce.com initiative but have since come to embrace it as they use it as a tool to also discuss all of the lines that they could sell on a project that is being tracked in the "P&S" system.
• There was some comments regarding the ABB acquisition of T&B with a number of people trying to understand 1) why and 2) what will happen to T&B reps (either full-line or Ocal only).
• A number of reps and manufacturers were trying to understand Crescent joining IMARK but took it as "we have no choice". Those who expressed themselves felt Crescent was looking for acquisitions (and maybe IMARK wanted to have an acquirer within the group.)
• Christian Siebens of AD gave a very good presentation on the opportunities in Clean Energy. If you are an AD distributor, you should call Christian to get a copy of the presentation (or perhaps he'll do a webinar for the membership).  IMARK members should also be able to get a copy as Steve Ruane sat in the session and took copious notes. If you are a manufacturer interested in understanding this segment better, Christian is probably one of the most knowledgeable in the industry on the topic - and sees how these opportunities can be monetized for distributors.

A few reps mentioned that NEMRA is settling into a 3 city rotation of San Diego, Chicago and either New York or Boston. This was viewed favorably.  The only comment is that Saturday morning was relatively quite as the last bank of flights back east is around noon, so people were looking to leave early, hence shortening the opportunity for one-on-one meetings.

Overall, a very profitable and worthwhile meeting for a manufacturer.

Pat Schrager

Knowing Pat's sales tenacity and, more importantly, the great work that St. Baldrick's does in helping kids with cancer, it was easy to say "yes".

Upon reaching his goal (which every distributor person knows Pat will do), Pat will be shaving his head.  Last year he did and we've got the pictures to prove it.



A Hairless Pat Schrager Shaven for 2011 St Baldrick's Foundation


 (and he's promised to share another picture of his shaved head with us!)

Click here to donate

Click here to learn more about St Baldrick's

Last week IMARK announced that Crescent Electric had joined IMARK, which blurs the definition of "independent".  While Crescent is technically an independent distributor (it's not publicly owned), within the industry they've been considered a quasi-national chain as they have operations in 27 states and over 100 locations. Additionally, revenues approach $1 billion.  A little different than the typical single state / regional distributor.
In talking with some IMARK distributors, they could understand the desire to increase the group's volume but were puzzled by bringing in such a large company.  Additionally, they wondered if IMARK's deals were so much better than Crescent's.

A couple of observations / questions:

• Are IMARK's deals better than Crescent's or is this an opportunity for Crescent to utilize IMARK's deals and "double dip"? Over 10 years ago IMARK and Crescent did talk about Crescent joining (with the IMARK Board of Directors approval).  A dividend estimate showed a slight improvement for Crescent with the benefit coming from IMARK having deals with suppliers that Crescent did little with.  Perhaps Crescent will renounce double dipping and commit to suppliers that it will only take the IMARK rebate?
• Is Crescent joining so that it can get to know IMARK distributors better to facilitate acquisition opportunities?
• What is the benefit of being in a group when all of your competitors are in the same group? While the rebate helps ensure profitability, the original premise of the groups was to put small / mid-sized independents on a more level playing field with the larger, national distributors?
• Who's next? HD Supply's Utility / Electric division? HD Supply's Facility Maintenance division? - both are technically independent? Perhaps Sonepar (who may be in less states than Crescent)?
• From a manufacturer viewpoint, if such a high percentage of their business is rebatable, and with the same rebate, should they consider the new JC Penny pricing model and reduce their pricing by the rebate amount and offer "everyday" pricing (aside from projects) and let distributors be responsible for their own margins? Is the value of the group(s) being devalued?

While I can see the benefit for IMARK - more volume, potential acquirer to retain volume in the group -

• What is the benefit for Crescent (aside from introductions)?
• Will most IMARK distributors do best practice sharing with Crescent (unless the information comes from Crescent!)
• What is the benefit for IMARK distributors (doubtful that suppliers increased their rebates)
• What is the benefit for manufacturers?

And does anyone really care and just view this as business as usual?

Lot's of questions, no answers.

Changing of the Guard

Recently I was reading a couple of articles, 1 that was forward by a client entitled "Five Ways Leaders Must Get Their Hands Dirty in 2012" and a newsletter I received that entitled "How to Generate Repeat Business".

While many manufacturers and distributors benefit from repeat business, the essence of why, and how to generate more, is embodied in these two articles.

• Rebuild trust & earn relationships
• Share your points of view
• Reconnect yourself with the business
• Ask for help and find growth from within your organization
• Showcase your creativity and get involved on the front lines.

In the spirit of welcoming in the New Year, first we wanted to wish you a Happy New year and best wishes for a happy, healthy and prosperous one.


Secondly, we recently talked about the coming year and thought we'd take the opportunity to share some thoughts on what we think we are thinking (currently) about issues for the coming year (in no particular order):

1. Sonepar, now the largest electrical distributor in North America with its 2011 acquisitions, is poised to further grow - organically, but more importantly, through acquisition. We expect by the end of 2012 they'll still be the largest, driven by more acquisitions. Questions become - how do distributors compete against someone who looks like them? As the company grows, what is the impact on manufacturers? What will other chains do? How will this impact the buying groups from which these distributors come from?
2. Electrical distributors may become electrical specialists with other types of distribution seeking to enter into the electrical space and offer a "one stop shop" service as their core value-added (think Grainger, Fastenal, MSC, Motion Industries, Kaman, etc). What else should you be selling?
3. The solar market is exploding ($12 billion in 2011). Will more electrical distributors finally jump into the fastest growing energy market segment? Is it to late? Or is it a market left to larger distributors / groups that can fund specialists, manage volatile industries and finance large projects?
4. There are contractors who are smarter than the average bear.  Understanding your customer is critical. Some more advanced contractors are diversifying into other markets, market segments, trades; maximizing usage of technology (systems and hardware - iPads); becoming more professional at purchasing and more. Our upcoming 2012 Contractor Insights research will share more info.
5. Customer intimacy will become more important. Knowing if you are servicing your customers better than your competition is critical to delivering on your service promise (otherwise promises are just words). Customer intimacy relates to really understanding your customers' needs, business issues, processes and how you can benefit them. (And we'll be launching a strategy to support clients in this area during the first quarter.)
6. Margins will continue to be under pressure. Technology utilization and process improvement, especially in the back of the house, is required to achieve acceptable profitability.  
7. With everyone carrying essentially the same thing, and saying that they offer the same service (and remembering that people's perception equals their reality), marketing is becoming more and more important for distributors
8. Sales processes, and channels, are becoming more complex and diffused. Multi-sales channels, for distributors and manufacturers, will be necessary to sustain growth.
9. With distributors marketing themselves more rather than promoting the benefits of their manufacturers, essentially marginalizing manufacturer brands, manufacturers need to ensure that they reach their end-user market ... the person making the brand / product decision. The usage of technology from a sales and marketing application viewpoint will accelerate and be more prominent.
10. Data is more important. Market research to understand customer needs, product opportunities, competitive positioning, share opportunities, product sales gaps and much more is becoming more important as ingredients to develop sales and marketing strategies. Gone are the days where "gut feel" should be solely used for making decisions. Research will become the mantra in the coming year for progressive distributors or those seeking to make changes.
11. Targeting niches will continue to be essential to growth for manufacturers and distributors. Reaching those segments is the real challenge.

We've kept this limited to sales and marketing related initiatives as affecting the "front of the house" is critical to ensuring the "back of the house" has business to process.
What do you see as key issues for distributors and /or manufacturers in 2012?

Recently we were conducting some research on non-traditional competitors and unearthed some information that could represent opportunity (through insights) from a couple of companies:


Grainger

• While many have heard the news of Grainger closing 25 locations and inquisitive minds have only been able to identify 1 location (Redding, CA) - and there are 5 closing in California - we've learned that most, if not all, of these locations are either old, in close proximity to another Grainger location, there are multiple in the same marketplace or are in areas where the customer base has left the marketplace (i.e. manufacturing was moved).
• Grainger is distribution's marketing maven. They are using radio advertising extensively focusing on ESPN, sporting events, country western music and rural areas. Seems like they've done a pretty good job of profiling their customer base. We've also seen Grainger billboards!
• Grainger has launched at least 16 print and online catalogs targeted at market niches such as ranching, paper, farming, wine producing, etc. While most full-line electrical distributors may not look at this as competition, Grainger looks at what the total customer spend could be. If they only sell a little electrical, that is a little less for the traditional distributor who is not tailoring their message to customer segments.
• A recent radio ad focused on how Grainger can help companies of all sizes manage their supply storerooms. They are emphasizing the value-addeds they provide. None of their ads mention manufacturers.
• We've also heard that they'll offer discounts to various groups, with minority-owned businesses also being a targeted market.

Fastenal

• Reportedly Fastenal is looking to expand its business into complementary product categories. They "feel" that they have the fastener business in a facility, why not pursue the electrical, or HVAC, or tool, etc business within a customer. They are seeking "share of overall spend." Don't be surprised if they become an acquirer of companies that have high-turn products that can easily be taken nationally.

WESCO

While they are not an "outsider", WESCO recently announced that they have acquired RS Electronics, a $60 million electronics and electrical distributor in Michigan.  This is a diversification move. RS focuses on serving  companies in the industrial, medical equipment, automotive and contract manufacturing markets.  The company has a commerce-enabled website that could provide WESCO with other opportunities to expand in niche environments ... possibly replicating come of Grainger's concepts but more focused on electrical and electronics.

This leads to some questions:

• With an increased level of acquisitions coming, could more "outsiders" come in? Other distributors (Motion, Kaman, AIT, Ferguson, Anixter, etc) or could private equity return?
• How should manufacturers handle these supply chain-oriented companies vs supporting traditional full-line electrical distributors?
• Should manufacturers consider them as transactionally-oriented distributors and let them have access to their products or should they insist on distributors providing more than delivery services?

And maybe the biggest questions are:

• What do customers want?
• Where do customers want to buy from?
• Are you thinking the proverbial "outside the box" on how to market and grow your business?

Last week was a busy week for the French.  While the European economy may be having challenges, their is one French-owned company continuing to make acquisitions while another continues its transformation.

Sonepar announced that it's Irby group is acquiring Treadway Electric, a 14 location electrical distributor in Arkansas.  As many may recall, Elliott Electric acquired 2 Treadway locations back in March.  According to the press release, Sonepar acquired the assets of Treadway, a member of IMARK.  Sonepar, as many know, has been on a buying spree, having acquired Independent Electric (CA) and OneSource this summer.  With these acquisitions (over $800M in electrical distribution revenue), Sonepar is now the largest electrical distribution material distributor in the U.S. - with much of that revenue emanating from acquisitions.

A couple of thoughts on this:

• Given that Sonepar will continue to make acquisitions (there are major markets where they still do not have presence), what percentage of the U.S. market could they conceivably control?  Is this good for manufacturers? Will manufacturers acquiesce to Sonepar demands, especially if they are doing business worldwide with them?
• Sonepar's current strategy is to operate as "local operating companies".  Are they gaining all of the potential sales, marketing and operational efficiencies they could? If they did, how would this impact independent distributors?
• With Sonepar growing, does this become the new "threat" to independents and hence distributors in marketing groups? What will be needed in the future from marketing groups to support their distributors - especially if there is no potential U.S. acquirer? (Could larger independents form a separate group (or combine into one of the existing ones) to then either pool resources, or identify a funding source, to acquire strong independents - essentially creating their own "roll-up" / holding company or chain?
• Or is it inevitable that the "Top 200" will quickly become the Top 100, then the Top 50 and consolidation of industry revenues occur pretty quickly - afterall, when it comes time to exit the business, owners have a tendency to sell to much larger companies so that they can ensure a short-term payout.

Secondly, Rexel is closing three locations in southwestern Ohio.  CBT is acquiring certain assets but more importantly taking over the Rockwell APR (area of primary responsibility) for these nine counties.  For CBT, which is already a Rockwell distributor, this is a significant expansion.  Interestingly, CBT is looking at only 12 of the 45 employees that worked for Rexel (probably salespeople or Rockwell-trained personnel).

Some thoughts:

• Could this mean that Rexel is now open to selling underperforming pieces of its business to local distributors?
• Was the hidden hand of Rockwell involved? If these were underperforming branches and Rexel was not performing, or resourcing, the locations as Rockwell thought appropriate, could Rockwell have "encouraged" the parties to work something out?
• Is this the beginning of the "Rockwell consolidation" which has long been talked about throughout the channel?
• Rexel has talked about becoming more industrially-oriented (as have many distributors since this part of the business is outperforming other sectors). Why relinquish the premier automation line in an industrial state versus resourcing and identifying how to grow the business (unless it was untenable due to overhead costs)?
• If Rexel was closing here, where else are they closing?

What do you think about these two moves? What do you think about Sonepar? Rexel? Or that two of the top distributors (revenue-wise) are foreign companies? What impact can this have on manufacturers? On marketing groups? And it's interesting that WESCO doesn't appear to be an electrical acquirer (and Crescent is historically a quiet company? Or will sellers sell to the highest bidder?

• Flat
• 3-5% for construction
• 6-8% for industrial
• a national chain thinking 7-9% for their total business
• a couple of large companies, in the same product category - one says 4%, the other 12%
• Herm Isenstein, of DISC fame, predict overall flat
• Electrical Wholesaling predicting, based upon its distributor survey, 5.1% nationally and from 3.9%-8.6% depending upon your region.

But here's some interesting news to factor into your crystal ball:

• Reed Construction provides its Expansion Index on a monthly basis.  This is their 12-18 month outlook for the construction industry (yes, much more than the electrical market, but at least a barometer.)  The blue denotes "shrinking", yellow is "expanding", and red is "hot spots."  In watching this over the past couple of months, the number of red and yellow spots have increased.  The next update is December 1.
• Construction employment rose in half the states and decreased in half in October and during the past year, closely matching the static national employment picture, according to the Associated General Contractors' analysis of Labor Department data. The even split between gains and losses reflects the accelerating improvement in apartment and private nonresidential construction, offset by a declining public market and stalled single-family sector.