December 23, 2024
Electric Avenue — News Impacting Lighting Markets: December 2024
Distributor expansions and executive moves shape recent happenings in the electrical sector
Welcome to Electric Avenue, where each month we explore the intersections between the electrical industry and our beloved lighting industry.
With a focus on news, trends, and economic factors shaping the landscape of electrical distribution, construction, contracting, and manufacturing, Electric Avenue is your resource for staying informed of some of the more notable electrical industry events that may impact North American lighting markets.
Each month, Electric Avenue delivers important news on macro market conditions and changing business dynamics affecting commercial lighting projects and general lighting "stock & flow" distribution across North America.
Here's what's happening since our last Electric Avenue digest was published on November 20:
Electrical Distributor News
Atlantic Coast Electric Supply acquires Carolina Electric Supply Company
Electrical Trends reports that Atlantic Coast Electric Supply (ACES), based in Charleston, S.C., has acquired Carolina Electric Supply Company (CESCO), a single-location distributor in Rock Hill, S.C. This acquisition marks ACES’ eighth branch location and strengthens its presence in the Charlotte market, as Rock Hill increasingly integrates into the region’s economic landscape. Electrical Trends also notes that CESCO’s lighting showroom, which caters to contractors, builders, and homeowners, reflects a residential focus within its operations.
Irby Acquires Azotel Technologies’ Software Assets
Irby Utilities, a division of Sonepar, has acquired the software capabilities and assets of Azotel Technologies Limited, an Ireland-based company specializing in subscriber management, service provisioning, and network solutions for broadband operators. The acquisition, finalized on Dec. 11, 2024, will enhance Irby’s ability to deliver back-office solutions such as customer support, billing, invoicing, and network monitoring to broadband providers. Azotel’s proprietary platform, which functions as an enterprise resource management system, has been integral to Irby’s offerings for the past eight years.
The deal aligns with Irby’s strategy to provide comprehensive services to broadband providers, particularly in rural and underserved areas. Joe LeNoir, President of Irby Utilities, noted that bringing the technology in-house solidifies Irby’s position as a one-stop shop for design, engineering, material supply, and end-user support. Rob Taylor, President of Sonepar Americas, emphasized that this acquisition enhances Irby’s ability to help broadband providers streamline their operations and expand connectivity nationwide.
Lonestar Electric Supply Expands to Oklahoma
Lonestar Electric Supply, headquartered in Houston, Texas, is set to expand into Oklahoma, marking its first presence outside Texas and Louisiana, as reported by tED Magazine. The company plans to open a distribution center in Oklahoma City in February 2025 at 5601 SW 13th Street. Under the leadership of President Jason Rhines, the facility is expected to employ approximately 20 people and will partner with numerous suppliers including ABB Electrification, Southwire, and Orbit Industries to supply products to electrical contractors. This move follows Lonestar’s recent announcement of its expansion into Louisiana.
World Electric Opens Regional Distribution Center in Hialeah Gardens, Florida
World Electric, a Sonepar company, has launched a 266,000-square-foot regional distribution center (RDC) in Hialeah Gardens, Florida. The state-of-the-art facility includes climate control, automated lighting systems, and picking robots to serve residential, commercial, and industrial customers across south Florida. In addition to faster delivery times, the RDC offers specialty services such as kitting, prefabrication, Pro Logistic Services for material storage and logistics management, and a full line of color and parallel wire pulls.
The RDC will support World Electric’s branches throughout south Florida, which have expanded significantly in recent years through acquisitions and new openings. Managed by Rodrigo Aguilar, the facility reflects Sonepar’s commitment to innovation and customer-centric services. With more than 15 locations and 400 employees, World Electric claims to be Florida’s largest electrical distributor.
NorthEast Electrical Completes Rebranding of Rockingham Electric
NorthEast Electrical, a subsidiary of Sonepar, has finalized the rebranding of Rockingham Electric, which it acquired in 2022. The rebranding process included updated signage across Rockingham's locations, aligning the company with NorthEast Electrical’s established branding. According to NorthEast, customers will continue to receive the same level of service under the unified brand. This integration expands NorthEast’s offerings and enhances operations in the New England region, where it now operates 40 branches.
The rebranded entity will leverage combined resources to offer improved inventory, services, and solutions. Leadership from both companies reported a smooth transition and highlighted benefits for customers and employees, ensuring continued dedication to quality and service.
United Electric Supply Recognized as a Top Workplace
United Electric Supply has been named a 2024 Top Workplace by The Baltimore Sun, marking another achievement in its multi-year streak of recognition across multiple states. This honor is based on employee feedback through an anonymous survey evaluating key cultural drivers such as alignment, execution, and connection.
Leaders at the employee-owned company attribute the accolade to a strong emphasis on engagement, satisfaction, and fostering growth opportunities within an inclusive environment.
City Electric Supply Opens First Fulfillment Center in Canada
City Electric Supply (CES) has opened its first fulfillment center in Canada, a significant development for the company’s North American operations. Located in Toronto, Ontario, the 157,000-square-foot (14,589-square-meter) facility is CES's sixth fulfillment center in North America and the largest to date.
The center is designed to improve supply chain efficiency and support northern branches with advanced automation and streamlined logistics. This addition strengthens CES's ability to fulfill orders quickly and effectively across its growing network.
Executive Moves
Mayer Names Pat Daley as President
Mayer, a division of Rexel USA, has announced the appointment of Pat Daley as its new president, effective Jan. 2. Daley, formerly vice president of industrial sales and strategic accounts at Schneider Electric, brings extensive experience in driving growth and innovation within the industrial sector. The company expressed confidence in Daley's ability to build upon Mayer’s established foundation and guide its continued success in the electrical distribution industry.
Daley succeeds Mike Kidney, who is retiring after two years in the role. Mayer acknowledged Kidney's leadership and contributions during his tenure, highlighting his role in strengthening the company’s strategic direction.
Alabama-based Mayer Electric has a network of 69 branch locations predominantly covering the Southeastern United States, while also extending its reach from Pennsylvania in the northeast to Texas in the southwest.
Crescent Electric CEO Scott Teerlinck to Depart
Crescent Electric Supply Company, based in East Dubuque, Illinois, announced that President and CEO Scott Teerlinck will step down to pursue new opportunities. Teerlinck, who has led the company since 2021, will remain in his role until Jan. 31, 2025, to support a smooth leadership transition. The company’s Board of Directors has initiated its succession process and will begin searching for the next CEO. Kristi Dahlke, the company’s senior vice president and CFO, will serve as interim CEO during the transition.
Crescent Electric, one of the largest independent electrical distributors in the U.S., operates more than 140 branches across 28 states, serving a diverse range of customers including contractors, OEMs, and MRO clients. Crescent’s portfolio includes well-known regional brands such as Womack Electric Supply, Stoneway Electric, and Lowe Electric, alongside its flagship Crescent Electric brand.
Summit Electric Supply Names Dwayne Roberts as President
Albuquerque, New Mexico-based Summit Electric Supply, a Sonepar company, has appointed Dwayne Roberts as its new president, succeeding Ed Gerber, who will depart the company on January 3. Roberts, a key member of the leadership team for the past three years, has collaborated with Gerber on strategic growth initiatives and organizational development. Rob Taylor, president of Sonepar Americas, praised Gerber’s contributions and expressed confidence in Roberts' ability to maintain the company’s momentum and strengthen its customer and supplier partnerships.
What We are Reading
Gen Z Sees Skilled Trades as Promising Career Path Despite Training Barriers
According to Construction Dive, a recent report reveals that while over two-thirds of Gen Z high schoolers in skilled trades programs are committed to trade careers, many face significant obstacles such as training waitlists and limited access to necessary equipment.
Despite these challenges, optimism remains high, with 84% believing they’ll secure jobs immediately after graduation. However, concerns about work-life balance and advancement opportunities highlight the need for industry efforts to meet their expectations and sustain their interest in skilled trades.
Electrical Wholesaling forecasts modest 2% growth in 2025
Electrical Wholesaling forecasts a 2% increase in electrical sales for 2025, bringing total sales to approximately $150.4 billion. This projection, based on data from Electrical Marketing and the U.S. Bureau of Labor Statistics, suggests modest national growth, though certain states and metropolitan areas are expected to outperform.
Notably, Anchorage, Alaska, and Honolulu, Hawaii, are projected to experience double-digit growth rates of 16.15% and 15.3%, respectively. Additionally, major markets like Houston and Dallas are anticipated to see significant sales dollar increases, with Houston leading at an estimated $202 million rise. Despite the overall conservative national forecast, these regional hotspots indicate potential for higher-than-average growth within the industry.
How to Handle Immigration Visits at Your Job Site
According to Construction Dive, contractors should prepare for potential jobsite visits from Immigration and Customs Enforcement (ICE) agents under the incoming Trump administration, which has pledged to increase workplace raids.
Legal experts recommend developing a "Rapid Raid Response Plan" that includes verifying judicial warrants with counsel, training employees on their rights, and avoiding actions that could result in criminal charges, such as aiding unauthorized employees to flee. Employers are also advised to document raids and ensure compliance with legal protocols to protect both workers and the business.
Economic Factors
Construction Backlog Dips Slightly in October; Contractor Optimism Endures
The Associated Builders and Contractors (ABC) announced that its Construction Backlog Indicator held steady at 8.4 months in November, based on a survey conducted from November 20 to December 3. While the backlog is unchanged from October, it reflects a slight decrease of 0.1 months compared to November 2023. Backlog in the infrastructure category experienced a contraction for the month but remains the only category showing year-over-year growth.
Above: Construction Backlog data, courtesy of Associated Builders and Contractors
ABC’s Construction Confidence Index showed significant improvement in November, with expectations for sales, profit margins, and staffing levels all climbing above 50, signaling growth over the next six months. Chief Economist Anirban Basu attributed the surge in contractor confidence to greater policy clarity following the presidential election and optimism about falling borrowing costs. Despite declines in backlog for commercial, institutional, and heavy industry sectors, contractors anticipate increased activity in privately financed projects in the coming months.
Storms Curb Nonresidential Construction Spending
Nonresidential construction spending declined by 0.4% in October to an annualized $1.228 trillion, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data. Spending fell across 11 of 16 nonresidential subcategories, with private and public nonresidential spending dropping 0.3% and 0.5%, respectively. ABC Chief Economist Anirban Basu attributed the contraction to hurricanes Helene and Milton, which delayed projects in North Carolina and Florida while driving a sharp increase in residential repair spending. Basu expects nonresidential construction to rebound as storm-related disruptions ease and contractor optimism, as reflected in ABC’s Construction Confidence Index, remains strong.
Copper
Copper prices surged above $5.00 per pound in May but have recently retreated to slightly lower levels.
Global Container Freight Rates
Above: 90-day container rates from China to West Coast USA. Image: Courtesy of Freightos, used under license
The FBX01 global ocean freight container pricing index tracks the cost of shipping 40-foot containers between major ports in China and East Asia and the West Coast of North America. This index, developed in partnership with the Baltic Exchange, includes key Chinese ports like Shanghai (PVG) and Ningbo (NGB), and U.S. ports such as Los Angeles (LAX) and Chicago (ORD).
This trade route is a vital artery for global commerce, facilitating the movement of billions of dollars' worth of goods across the Pacific. Commonly shipped items on this route include electronics, clothing, furniture, toys, and machinery.
