August 6, 2025
Electric Avenue — News Impacting Lighting Markets: August 2025
Large distributor chains see single-digit sales growth. Plus, constuction professionals react to interest rate decision.
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 in electrical circles the last 30 days:
Electrical Distributor News
Rexel USA's Talley LLC Acquires Connectronics
Talley LLC, a Rexel USA company and leading of wireless communications solutions, has acquired Connectronics, a Hiawatha, Iowa–based distributor with over 40 years of experience in wireless networking. This move expands Talley’s technical depth and nationwide service capabilities in support of system integrators, VARs, and carriers building next-gen wireless infrastructure. Connectronics will continue operations from its current location, now backed by Talley’s national footprint and Rexel’s resources.
Gross Electric Acquires Indiana Lighting Center
Gross Electric has acquired Indiana Lighting Center, including its two showrooms in Indianapolis and Greenwood, Indiana, President Laurie Gross announced. The acquisition expands Gross Electric’s presence in the Midwest and adds to its portfolio of independent lighting showrooms. Indiana Lighting Center’s team will join Gross Electric and continue serving homeowners, builders, and design professionals.
Power Electric Supply Acquires Meister Supply Company
Power Electric Supply has acquired Meister Supply Company, a Texas-based distributor specializing in telecom, electrical, and control products. Headquartered in San Antonio, Meister operates three locations—in San Antonio, Dallas, and Houston—and has served the market for over 21 years.
The acquisition expands PES’s footprint in Texas. PES is headquartered in Irving and operates multiple branch locations across the state. The company continues to grow through acquisitions aimed at increasing regional coverage and customer reach.
Graybar Receives Silver Stevie® Award for Leadership Development
Graybar has received a 2025 Silver Stevie® Award for Great Employers, recognized in the Leadership Development category. The company was acknowledged for initiatives such as AI-powered development tools, job guides, the Graybar Expand program, and an executive leadership course in partnership with the University of Richmond.
Graybar, one of North America’s largest employee-owned companies, also offers internship and trainee programs aimed at developing future talent. The Stevie Awards drew over 1,000 submissions from organizations worldwide across various HR-related categories.
Sonepar Recognized for Disability Inclusion Efforts
Sonepar has been named a “Best Place to Work for Disability Inclusion” for the second year in a row, earning a score of 80 on the 2025 Disability Equality Index. The designation reflects the company’s accessibility efforts, including inclusive employment policies, benefits, and employee resource groups such as ADAPT.
Above: Sonepar staff accept awards at Disability:IN conference
The recognition was announced at the Disability:IN conference in Orlando, where Sonepar was also a sponsor. The company continues to support disability inclusion through training programs and internal initiatives across its U.S. operations.
Winsupply Opens New Location in Marble Falls, Texas
Winsupply has opened a new location in Marble Falls, Texas, located 49 miles northwest of Austin, as part of its ongoing expansion in the state. The location will serve customers in the plumbing, PVF, water treatment, septic, and rainwater harvesting sectors.
Led by Local Company President Jeremy Hansche, the facility spans 9,000 square feet across two properties and features an open shopping layout. The Marble Falls opening is part of Winsupply Inc.’s plan to add 20 new Local Companies nationwide in 2025. The company currently operates more than 670 locations, following a model based on local ownership.
Mayer Launches Mobile Tech Van for Onsite Demonstrations
Mayer, a Rexel USA company based in Birmingham, Alabama, has launched its Digital Command vehicle — a mobile unit showcasing industrial automation technologies across the southern and eastern U.S., according to Electrical Wholesaling.
Developed in collaboration with Schneider Electric and other partners, the van features a modular display system and rotating products from brands including Cisco, Fluke, and Hubbell. The initiative provides hands-on demonstrations and technical support during visits to Mayer branches, universities, and manufacturing sites. Upcoming stops are planned in Pennsylvania and Virginia.
City Electric Supply Reports Sixth Consecutive Year of Growth
City Electric Supply (CES) has marked its sixth straight year of growth in North America, opening 36 new branches and recognizing 25-year anniversaries at 11 locations. The company also launched its first Canadian fulfillment center in Toronto to support its distribution operations.
In 2024, CES added over 1,000 new employees and made more than 227 internal promotions. Leadership changes included the appointments of Denton Muse as General Counsel and Sharon Hong as Chief Communications and Marketing Officer. CES now employs more than 5,000 people across the U.S. and Canada.
Quarterly Earnings News
Rexel Reports Modest H1 2025 Growth with Strong Q2 Momentum, Reaffirms Outlook
Rexel posted first-half 2025 sales of €9.78 billion ($11.44 billion), up 1.6% on a same-day basis, with Q2 growth accelerating to 1.8% driven by higher volumes in North America. While Europe remained challenging, profitability held firm with a 5.8% adjusted EBITA margin, supported by cost-reduction efforts including a 2.2% workforce decrease. Operating income reached €505.7 million, and free cash flow before interest and tax stood at €251 million. Digital sales rose to 33.6% of Q2 revenue. Rexel completed five acquisitions to support market expansion and value-added services. Full-year 2025 guidance remains unchanged.
Wesco Reports Strong Q2 2025 Growth, Raises Full-Year Sales Outlook
Wesco International reported second quarter 2025 net sales growth of 7.7% year-over-year, with organic sales up 7.2% and sequential growth of 6.2%. Data center sales surpassed $1 billion for the quarter, rising approximately 65% from the prior year.
Adjusted diluted EPS rose 6% to $3.39, while EBITDA margin improved to 6.7%. Backlog increased year-over-year across all business units, and the company completed its planned redemption of preferred stock in June. Citing strong sales momentum through July, Wesco raised its full-year organic sales growth outlook while maintaining its EPS midpoint.
Electrical Rep News
Yusen Associates and A.A. MacPherson Merge to Form Yusen-MacPherson Group
Yusen Associates and A.A. MacPherson have merged to form The Yusen-MacPherson Group, combining over 183 years of experience in the electrical industry across New England and Upstate New York. The new firm aims to broaden geographic reach and product representation in the commercial, industrial, and utility sectors.
Joe LiPuma and Joe Gately will serve as Co-Presidents, with the merger bringing both companies under a single brand.
Executive Moves
Warshauer Electric Supply Appoints a New Leader
Warshauer Electric Supply has appointed Jim Dunn as its new top executive, succeeding founder Jim Warshauer, who will move into an advisory role, according to Distribution Strategy Group. Dunn, a 30-year veteran of the company and former Executive Vice President, has led efforts such as the development of Warshauer Tech and the company’s generator division.
The leadership change follows Warshauer’s May 2025 acquisition by Rexel USA. The company is expected to continue expanding its presence in the Northeast as part of Rexel’s national network.
Graybar Names Jonathan Rayment District Vice President
Graybar has appointed Jonathan Rayment as District Vice President for its Seattle District, effective July 21, 2025. He succeeds Steve Breeden, who retired after 24 years with the company. Rayment brings 18 years of electrical industry experience and has been with Graybar since 2013, most recently serving as Director of Electrical and Industrial Sales. In his new role, he will oversee operations across Washington, Oregon, Idaho, Montana, Alaska, and Hawaii.
Dan Wise Named Region President of EW/HZ at USESI
HZ Electric Supply has appointed Dan Wise as Region President of EW/HZ, effective May 1, 2025. Wise, who has more than 20 years of experience in electrical distribution, will oversee both the EW/HZ and Monarch/Swift regions of USESI.
He previously served as Region President of Monarch Electric, where he helped lead the acquisition of Swift Electrical Supply. Wise succeeds Mark Osak, who retired after more than two decades with the company.
Serge Leblanc Named President of Sonepar Canada
Sonepar has appointed Serge Leblanc as the permanent President of Sonepar Canada. Based in Laval, Leblanc had been serving as interim president since May.
He brings more than 30 years of industry experience and has been with Sonepar’s Lumen brand since 1997, becoming its president in 2011. His tenure has included operational changes such as implementing North America’s first automated cable cutting and storage system and launching the Salon de Lumen trade show.
Sonepar Americas President Rob Taylor cited Leblanc’s leadership and long-term vision in the announcement.
What We are Reading
Border States Reports Rising Tariff Pressures
Border States reports that ocean shipping costs fell in June, with the Drewry Container Index dropping 24% from the previous month and 55% compared to a year ago. Import volumes remain about 10% above pre-pandemic levels, though imports from China declined nearly 30%, lowering China’s share to 28.8% of total U.S. imports.
The update also notes that Red Sea disruptions have forced many vessels to reroute via the Cape of Good Hope, adding 7–10 days to transit times.
Meanwhile, new U.S. tariffs are adding strain to global supply chains. These include 50% tariffs on steel, aluminum, and copper imports; 25% on autos; and a 10% baseline tariff on most other imports, excluding categories such as energy, pharmaceuticals, and semiconductors.
Construction Pros React to Interest Rate Decision
According to Construction Dive, the Federal Reserve’s decision to hold interest rates steady has forced contractors to recalibrate amid inflation and limited lending. With hopes for a summer rate cut dashed, many are shifting focus to public sector projects as private work slows. Contractors are emphasizing tighter planning, early procurement, and collaborative contracting. Rising material costs—especially copper—and cautious lenders are adding pressure, prompting the industry to prioritize quality pipelines and diversify project portfolios.
Electric Rate Shock: Data Centers Blamed for Regional Price Increases
Electric bills may rise in 2025 for residents in 13 states across the PJM Interconnection territory due to soaring demand from AI data centers. Business Insider reports wholesale electricity prices rose 22% in PJM’s latest auction, possibly increasing monthly bills by up to 5%. The grid operator cites data center growth in Northern Virginia and Columbus, Ohio. Experts warn of an affordability crisis as costs shift from corporations to residential customers.
Economic Factors
Contractor Optimism Grows as Backlog Indicator Rebounds
Contractor optimism is on the rise, according to Associated Builders and Contractors (ABC), as its Construction Backlog Indicator increased to 8.7 months in June, up 0.3 months year-over-year. Large contractors saw the biggest gains, while backlog declined for mid-sized firms. ABC’s Construction Confidence Index shows improved expectations for sales and profit margins, though staffing confidence dipped.
Above: Construction Backlog data, courtesy of Associated Builders and Contractors
“Despite a wide array of headwinds... backlog rebounded,” said ABC Chief Economist Anirban Basu, noting strong data center demand and warning that tariffs may impact future profit margins.
Nonresidential Construction Spending Contracts in 6 of Past 7 Months
Nonresidential construction spending fell 0.1% in June, marking the sixth decline in the past seven months, according to the Associated Builders and Contractors (ABC). Spending totaled $1.241 trillion on a seasonally adjusted annual basis, with private nonresidential spending down 0.3%, while public spending edged up 0.1%.
Above: Nonresidential Spending data, courtesy of Associated Builders and Contractors
“Recent declines would be worse if not for ongoing increases in public nonresidential spending,” said ABC Chief Economist Anirban Basu, noting a 5.1% year-over-year rise in public sector activity. Despite contractor optimism, Basu warned that broader economic trends suggest weakness could persist in coming months.
Daily Copper Prices
Data source: Yahoo! Finance
Global Container Freight Rates
Above: Container rates from China to West Coast USA. Data source: Freightos
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.
