Prairie Industry Perspective - Electrical Distribution - March 2022

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Electrical Wholesaling (“EW”) reports that, during 2021, the performance of the electrical distributors industry improved substantially from the downturn experienced in 2020 following the onset of the COVID-19 pandemic.

At the same time, the publication reports that, during 2021, “Historic double-digit, year-over-year price increases for all sorts of electrical products…sent shockwaves up and down the supply chain.” During 2021, electrical distributors experienced a rise in the cost of commodities utilized by the industry, including steel, copper and plastic. Additionally, according to EW, the supply chain was “out of whack, with shipping delays at ports rippling through trucking routes and freight-rail lines.” Analysts note that, while supply chain difficulties are impacting the electrical distribution industry as a whole, perhaps the biggest impact is being felt by electrical manufacturers that rely on China and other Pacific Rim nations for their supply of semiconductors.

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