2015 NAED State of the Industry
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The document summarizes key findings from the 2015 NAED State of the Industry survey. It provides demographic information about survey respondents and their expectations for 2015 US economic conditions. Distributors and manufacturers were surveyed about drivers of revenue growth over the next three years and the most challenging economic factors. Industry leaders commented on their biggest surprises and disappointments from 2014.
2015 NAED State of the Industry
- 1. 2015 NAED State of the Industry NATIONAL ASSOCIATION OF ELECTRICAL DISTRIBUTORS
- 2. President 33% 33% CEO VicePresident CMO CFO GeneralManager RegionalManager Other Owner 20% 21% 7% 1%1% 3% 5% Distributor Manufacturer Manufacturer Representative Other 20% 64% 14% 3% May not total 100% due to rounding Multiple responses allowed NAED State of the Industry SURVEY DEMOGRAPHICS
- 3. EXPECTATIONS FOR 2015 - US ECONOMY Manufacturer 3% Distributor 5% Manufacturer 33% Distributor 54% Manufacturer 63% Distributor 41% 5% 50%45% INDUSTRY OVERALL MANUFACTURER/ DISTRIBUTOR BREAKOUT Worse About the Same Better
- 4. Distributor Manufacturer DRIVERS OF REVENUE GROWTH OVER THE NEXT THREE YEARS Multiple responses allowed EXPAND CORE MARKETS EXPAND NEW MARKETS ADDING CUSTOMERS RETAINING CUSTOMERS IMPROVED ECONOMY PRODUCT INNOVATIONS INCR. CONSUMER SPENDING NO GROWTH OTHER 28% 15% 12% 8% 23% 4% 9% 12% 16% 20% 1% 44% 2% 2% 2%
- 5. MOST CHALLENGING ECONOMIC FACTORS 4% 20% 76% HEALTH-CARE COSTS 1% 47%52% OUTSIDE COMPETITION FOR SALES Positively About the same Negatively May not total 100% due to rounding
- 6. TOP FIVE ECONOMIC FACTORS COMPANIES FEEL ARE LEAST CONTROLLABLE INDUSTRY CONSOLIDATION POSSIBLE LIFO REPEAL 75% 64% TAXESCOST OF FUELEMPLOYMENT MARKET 59% 54% 52%
- 7. Surprises The pace of manufacturer and channel consolidation. Price of copper. The ability of weak distribution companies to survive. Embracing of social media. INDUSTRY LEADERS COMMENT ON THEIR BIGGEST SURPRISES IN 2014
- 8. INDUSTRY LEADERS COMMENT ON THEIR BIGGEST DISAPPOINTMENTS IN 2014 Disappointments The speed with which distributors adapt to trends. Slow growth and market saturation. The loss of market position versus ESCOs. The lack of long-term strategic planning/ thinking. Distributors are slow to embrace technological change into their business causing them to miss out on new market opportunities.
- 9. DOWNLOAD the complete report. NATIONAL ASSOCIATION OF ELECTRICAL DISTRIBUTORS