January 25, 2022

Pittsburgh Shift Creates Market Uncertainty

One agent exits. Another is being acquired. And dozens of lighting lines are "up for grabs."

One Source Paolicelli Associates has announced that it is exiting the Western Pennsylvania and West Virginia marketplace. The company represents over 60 lighting and controls manufacturers including Hubbell Lighting, Lutron, Lumenwerx and Ecosense. In addition, the agent has an electrical supply division that supports numerous lines including Caddy, Halco Lighting and Universal Lighting Technologies (ULT).

In 2016, Maryland-based One Source Associates merged with Pittsburgh-area electrical supply agent, Paolicelli & Associates to serve the territories of Western Pennsylvania and West Virginia with expanded manufacturer offerings. One Source told us that the agency will now "focus efforts in its core market of Greater Baltimore – Washington D.C.” and that the exit will be official as of March 31. One Source’s Capitol Region representation of Hubbell Lighting, Lutron and other brands is unaffected by the move in Western Pennsylvania and West Virginia.

Enter Lester Sales

One Source Paolicelli Associates is selling some of its assets to supply agent Lester Sales. Lester Sales enters the market as a supply-focused agent that already covers seven other states – and is described to be strongest in Indiana, Ohio and Kentucky. Sources tell us that Lester Sales is also extending employment offers to up to seven current One Source Paolicelli electrical-supply-focused employees to join Lester Sales. We’ve also learned that Lester Sales is pursuing the same Carnegie, PA office and warehouse currently utilized by One Source Paolicelli.

Lester Sales is seeking to represent many of the supply lines currently represented by One Source Paolicelli.

Cardell-Criste is being Acquired

As of February 1, Lester Sales will be acquiring Western Pennsylvania stock & flow agent Cardell-Criste – a supply-focused agency that represents numerous brands including General Cable and Atlas Lighting.

WHAT’S NEXT FOR LIGHTING SIDE OF THE BUSINESS?

On the Lighting side of One Source Paolicelli, the future is more uncertain. Lester Sales is not expected to pursue lighting and controls lines, including Lutron. People close to the situation have described the lighting lines currently represented by One Source Paolicelli as being “up for grabs” and the destiny of at least three local lighting-focused employees as being “up in the air right now.”

One Source Paolicelli had tapped into the Maryland headquarters for sales support and other administrative functions, but local lighting employees in Western Pennsylvania have been offered jobs with One Source in the Maryland-Washington D.C. market.

What Happens with Hubbell Lighting?

Local sources estimate that Hubbell Lighting is doing “mid-seven figures” in revenue in the Western Pennsylvania and West Virginia marketplace. The next Hubbell Lighting agent will be the brand’s fifth marketplace partner since the year 2000.

Hubbell Lighting informed us that they are in the process of evaluating options in the Western PA and West Virginia markets.

Most locals with whom we spoke believe that the current Acuity Brands, Cooper Lighting and Genlyte Solutions agents will likely not have an interest in Hubbell Lighting. Or, put another way, Hubbell Lighting likely wouldn’t be able to make an offer appealing enough to win over Laface & Mcgovern, Architectural Lighting Sales (PA Only), Robert S. Kimball Associates (WV only) or REPCO II. Most of those agents have been entrenched with their current anchor brands since the 1990’s or earlier.
With GE Current, a Daintree company, expected to close on the acquisition of Hubbell Lighting next week, will the new regime take a different look at the Current agent, REPCO II? If so, would that be acceptable to Genlyte Solutions?
Will Hubbell Lighting consider reuniting with its former agent, Gormley Farrington?
Philadelphia-based Hubbell Lighting agent, Diversified, expanded its footprint into Northern New Jersey last year. Will they look to expand west?
Upstate New York Hubbell Agent, Lightspec has expanded into Toronto and Ohio in recent years. Will they make a play for another puzzle piece in the Ohio Valley?
Or will the Cleveland Hubbell Lighting agent, Lighting Dynamics, who recently expanded into Columbus, try to expand its eastern territory border beyond Youngstown?
Will Hubbell help create a new agent from scratch? They tried that many years ago with Pittsburgh Lighting Solutions and eventually moved on.

What Happens With Lutron?

Lutron has a frequent history of finding partnership success with agents primarily focused on the electrical supply channel – and/or a hybrid agent that has both lighting and electrical divisions.

Lutron did not answer questions in our Monday email related to current status and next steps.

Locals expect Lutron to reach out to Gormley Farrington and other existing agents, but there doesn’t seem to be any de facto “no brainer” existing agency that is a perfect fit for Lutron at the moment.
Synergy Electrical Sales in Philadelphia has recently expanded its territory into New York City. Will we see them work a deal with Lutron to expand westward?

What Happens With All of the Other Lighting Lines?

Other notable brands like ALW, Hess, Ecosense, Lumenwerx, MaxLite, WAC and others will soon begin looking for new representation. With one less agent in town (at the moment) it will be hard for soon-to-be orphaned lighting brands to find an existing agent that doesn’t already have some potential product category conflicts.

NOTE: An earlier version of this article cited Cardel Criste as the Fulham agent. While the agency cites the brand on its line card, Fulham is not represented by Cardel Criste. We regret the error.