Electrical Equipment Distributors
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 7,500 electrical equipment and parts distributors in the US consolidate products across many manufacturers to offer customers wide selections, reasonable prices, and a single point of contact. Major product categories include switchgear and switchboard apparatus; wiring and cable; lighting fixtures; industrial controls; conduit, raceway, and fittings; power and distribution transformers; and motors and generators.
Competition from Alternative Channels
Electrical products are available through a wide variety of channels, including manufacturers, retailers, energy service companies (ESCOs), product specialists, niche service distributors, and distributors of other trades.
Counterfeit Electrical Products
Counterfeit electrical products, often produced outside the US, have infiltrated the supply chain and are raising distributors’ liability risk.
Industry size & Structure
A typical electrical distributor operates out of a single location, employs about 26 workers, and generates about $17 million in annual revenue.
- The electrical distribution industry consists of about 7,500 companies which generate $132 billion annually and employ 195,000 workers.
- Most electrical distributors are small, independent operations - 56% of electrical distributors have a single location and 68% employ fewer than 10 workers.
- Customers include building contractors (29% of sales), other wholesalers and distributors (24%), industrial businesses (10%), retailers (8%), businesses for their own use (19%), and government (4%).
- Large companies include International Electric Supplies, Rexel (Gexpro), Sonepar USA, WESCO Distribution, Graybar Electric, and Consolidated Electrical Distributors.
Industry Forecast
Electrical Equipment Distributors Industry Growth
Recent Developments
Mar 28, 2025 - Tariffs May Complicate Grid Expansion, Maintenance
- In recent annual reports filed with the Securities and Exchange Commission, some electric utilities named Trump administration tariff policy as a business risk, according to Utility Dive. Tariff-related trade strife could disrupt global supply chains, slowing development and maintenance of electricity infrastructure. An economy weakened by tariffs could reduce demand for electricity, especially from industrial customers. A recent report by the Atlantic Council think tank said tariffs could complicate access to key types of electrical equipment, including transformers. The group noted that about 80% of the transformers used in the US grid are imported. Mexico is the leading supplier. Trump’s 25% tariff on all steel and aluminum imports could drive up the costs for steel used to make transformers in the US.
- US electricity generation capacity additions in 2025 are expected to be led by solar and battery storage projects, according to the US Energy Information Administration (EIA). The US is projected to add 63 gigawatts (GW) of generating capacity in 2025, led by utility-scale solar with 32.5 GW, followed by battery storage (18.2 GW), wind (7.7 GW), and natural gas (4.4 GW). Additions in Texas (11.6 GW) and California (2.9 GW) will account for nearly half of the solar capacity additions in 2025. Other states that are expected to have significant upticks in solar additions in 2025 include Arizona, Florida, Indiana, Michigan, and New York.
- The Dodge Momentum Index (DMI) increased by 0.7% in February 2025 to 225.6 (2000=100), up from the revised January reading of 223.9. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the commercial planning component improved by 3.3%, but institutional declined by 4.6%. Dodge’s associate director of forecasting, Sarah Martin, said, “Planning momentum moderated in February, after a few months of stronger growth. Data centers continue to prop up growth in the overall index. Without them, the DMI would have decreased by 2% this month. Increased uncertainty around material prices and fiscal policies may begin to weigh on planning decisions, but for the time being, planning activity is largely continuing to move forward.”
- Some home builders are buying up extra lumber, fixtures, appliances, and other materials ahead of Trump administration tariffs, but the strategy could prove risky if high home prices keep buyers away, according to The Wall Street Journal. Some builders are pivoting to less expensive materials or reducing home sizes to offset the potential rise in materials costs brought on by tariffs. Industry observers suggest large home builders are better shielded from tariff-related uncertainty as their size gives them greater buying power to resist price hikes. However, smaller builders are more vulnerable. Building stockpiles of supplies presents risks for builders and distributors if demand dips and they are stuck holding unsold inventory. The National Association of Home Builders estimates that tariffs could increase the cost of building a single-family home by $7,500 to $10,000.
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