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-overyear 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.
Despite these challenges, on average, the 200+ respondents to a recent survey conducted by EW estimate that their firms recorded a 10.0% increase in sales during 2021. Similarly, a review of fourth quarter sales data from some of the largest distributors in the electrical wholesaling industry indicates that they, too, are experiencing a recovery in sales. These companies also anticipate an overall increase in sales during 2022.
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