Recent Industry Performance
Similar to participants in many other industries, electrical distributors faced a number of challenges over the past several years. During the COVID-19 pandemic, electrical distributors not only had difficulty getting in contact with customers due to COVID lockdowns but dealt with slowing construction starts—first in the nonresidential sector and, more recently, in the residential sector. Electrical distributors also experienced significant price increases due to inflation along with snarled supply chains that resulted in product shortages. Some distributors were forced to decide whether to buy costly-but-available inventory based on their best guess as to whether it would sell before prices dropped lower than their purchase price.
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