Recent Industry Performance
According to Electrical Wholesaling (“EW”), during 2022, participants in the electrical distributors industry faced an assortment of market conditions that impacted sales, which will likely continue into 2023. For instance, while the construction market performed well in 2022, distributors also had to deal with trickier issues such as rising costs and supply chain delays. Still, in its “2023 Market Planning Guide,” EW estimates that, in 2022, electrical distributors’ sales grew by approximately
9.7%.
Similarly, Christian Sokoll of DISC Corporation (“DISC”), a provider of sales forecasts and related market data for the electrical wholesaling market, estimates that 2022 sales by electrical distributors increased, totaling $136.6 billion, up 11.0% from 2021. Like EW, Sokoll alludes to the fact that not all of the year’s sales gains were due to demand. Indeed, he specifically states that a 16.0% year-over-year price increase “contributed significantly” to 2022’s returns.
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