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Electrical Equipment Wholesale

Electrical Equipment Wholesale

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Executive summary

The Electrical Equipment Wholesaling industry comprises companies that distribute essential electrical materials such as wiring supplies, light fixtures and bulbs, electrical power equipment, circuit breakers and fuses. Due to a wholesaler's role as a supply chain intermediary between manufacturers and end users, namely construction and industrial industries, industry operators are reliant on demand from these downstream markets. Since industrial and construction activities generally follow broader macroeconomic patterns, wholesalers experience heightened demand during periods of economic expansion. Thus, over the five years to 2022, an increasing GDP has supported strong investment in construction projects, computer and software development and utility upgrades, benefiting industry wholesalers. Moreover, to keep up with increasing need for electrical equipment, the current period has been marked by acquisition activity among the industry's largest players seeking to expand distribution networks. Overall, industry revenue is expected to increase an annualized 2.6% to $211.1 billion over the five years to 2022.
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Each report includes:

industry revenue;

industry profit;

industry margin;

industry employment;

industry major players;

industry key external drivers;

industry product & structure segmentation;

industry key trends;

industry Life Cycle;

industry Geographic Breakdown;

industry Key Success Factors;

industry Key statistics for previous years;

forecast of industry Key statistics for the next 5 years;

Reference Wordlist

BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor.

CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

Colloquial Terminology

E-COMMERCE
The buying and selling of products or services over electronic systems, such as the internet and other computer networks. Businesses engaged in e-commerce are often called e-tailers.

INDUSTRIAL CONTROL
Systems that control industrial production and distribution.

RELAY
An electromechanical or solid-state device operated by variations in the input which, in turn, operate or control other devices connected to the output.

Details

In 2020, the industry was disrupted by the global COVID-19 (coronavirus) pandemic and the economic slowdown that followed. Amid economic uncertainty, companies reduced investment in new construction projects, a key market for industry operators. At manufacturing facilities, supply chain disruptions reduced electrical equipment output, which both limited the supply to industry wholesalers and reduced sales to other manufacturing industries. However, improving economic conditions in the latter half of the year supported growth in housing starts and utilities construction, which offset the initial declines in industry revenue. Revenue is expected to rise 15.9% in 2022 alone as improving economic performance invigorates demand from the industry's primary markets, although industry growth remains capped by supply chain woes and long lead times.

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