August 26, 2026
Electric Avenue — News Impacting Lighting Markets: August 2026
Channel expansion, record quarterly results and regulatory challenges shape the electrical market's outlook
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.
The August 2026 Electric Avenue examines the business and market developments shaping today's electrical industry. This month's highlights include record quarterly earnings driven by data center demand, distributor facility and channel expansion, executive leadership changes, workforce development initiatives and supply chain conditions that may influence lighting and construction activity in the months ahead.
Distributor Acquisitions
EECO Acquires Foster Electric
Electrical Equipment Company (EECO) has acquired Foster Electric, an independent electrical supply distributor based in Lynchburg, Virginia. The deal closed Aug. 11, and terms were not disclosed. The acquisition comes as Raleigh, North Carolina based EECO marks its 100th year in business, having been founded in 1926.
Foster Electric will keep its name, location and its 25 person team. "Joining EECO gives us access to greater resources while allowing us to keep operating the way our customers have come to expect," said Duane White, Foster Electric president. EECO president and CEO Mark Holmes called the pairing a natural fit as EECO celebrates a century of service.
Electrical Distributor News
Lonestar Electric Supply Plans El Paso Distribution Center
Lonestar Electric Supply announced plans to open a 78,000-square-foot distribution center in El Paso, Texas, this fall, expanding the Houston-based distributor's footprint into West Texas. The facility, located at 1325 Pendale Road, is expected to employ about 20 people who will manage distribution of electrical supplies from manufacturers including ABB Electrification, Southwire and Orbit Industries.
"El Paso has seen tremendous growth in the past few years thanks to available land and business-friendly government," said Lonestar Market Leader Ric Flores, according to KFOX14. The company, founded in 2015, now operates more than 30 distribution centers nationwide, having expanded outside Texas with a New Orleans location in late 2024 and additional facilities in Oklahoma and Tennessee in 2025.
AD Reports Record Member Sales of More Than $58 Billion in First Half of 2026
AD reported that member sales for the first six months of 2026 increased 15% to more than $58 billion across the buying group's 13 divisions in the United States, Canada and Mexico. Same-store sales among existing members grew 10%, while member purchases from AD suppliers climbed 24%.
AD's net member count increased by 79 during the period, and member distributors completed 28 acquisitions of non-AD companies. "Our strong first-half results reflect the growth of our members, the addition of new members to our community, and the strength of member partnerships with AD suppliers," said AD Chairman and CEO Bill Weisberg.
City Electric Supply Announces 2026 Brighter Future Scholarship
City Electric Supply, through its CES Cares social impact division, is now accepting applications for the 2026 Brighter Future Scholarship. Ten winners across North America will each receive $2,000 toward their education and a Milwaukee Tool starter kit to help launch their careers. Applicants must be planning to attend a trade school or complete a certification program.
"We're proud to continue to support the next generation of electricians as they begin their careers," said CES Cares Social Impact Manager Karen Gray. Applications are open through Sept. 30, 2026, with winners notified in early November.
Sonepar Named a Top Disability Inclusive Business by Disability:IN for Third Consecutive Year
Sonepar has been recognized by Disability:IN as one of the world's top 2026 Disability Inclusive Businesses for the third consecutive year, reflecting steps the company has taken to support associates with disabilities and caregivers. Sonepar accepted the recognition at the Disability:IN Global Conference & Expo in Dallas.
"This recognition reflects our commitment to creating an environment where every associate feels included and empowered," said Selenah Seabrooks, Inclusion Director at Sonepar. Over the past year, the company implemented an inclusive workplace checklist across its largest offices and expanded resources for associates and caregivers through its ADAPT employee resource group.
Earnings Reports
Rexel Lifts Guidance After Data Centers Power Second-Quarter Growth
Rexel raised its full-year outlook after reporting accelerating second-quarter sales growth across every geographic region, led by data center activity in North America. The Paris-based distributor posted second-quarter sales of about $6.0 billion, up 6.1% year over year on a reported basis and 6.7% on a constant, same-day basis, with positive volume growth in every region for the first time since the second quarter of 2023.
"Rexel delivered particularly good results in H1 2026," said Rexel CEO Guillaume Texier. The company completed three North American acquisitions in the first half, including Illinois-based Revere Electrical Supply and Iowa-based DEE Electronics, and now expects full-year same-day sales growth of about 5%, up from its earlier 3% to 5% range.
Wesco Reports Record Second-Quarter Net Sales
Wesco International reported record second-quarter net sales of $6.7 billion, up 13% year over year, with data center sales climbing to about $1.5 billion, up roughly 45%. Total company backlog reached a new record, up approximately 60% compared with the same period last year.
"We delivered another exceptional quarter marked by continued market outperformance and accelerating business momentum," said Wesco Chairman, President and CEO John Engel. The company posted record adjusted diluted earnings per share of $4.57, up 35% year over year, and is significantly raising its full-year 2026 outlook.
Graybar Announces Record Results in Second Quarter
Graybar reported the highest quarterly net sales and net income in company history for the second quarter of 2026, with net sales of $3.8 billion, up 11.8% from the same period last year, and net income of $158.6 million, up 14.8%. For the first six months of 2026, net sales reached $7.1 billion, a 12.1% increase.
"Achieving record second quarter results reflects the dedication of our employees and their commitment to delivering the best customer experience in the industry," said Graybar Chairman, President and CEO Kathleen M. Mazzarella. During the quarter, the company acquired American Electric Supply to expand its presence in Southern California and announced several senior leadership appointments effective July 1.
Grainger Raises Outlook as Second-Quarter Sales Increase
Grainger reported second-quarter 2026 sales of $5.0 billion, up 10.3%, or 13.7% on a daily, organic constant currency basis, along with diluted earnings per share of $12.01, up 20.5% compared with the second quarter of 2025.
"Looking ahead, we are increasing our outlook to reflect our strong first half performance and the continued momentum we are seeing across the demand environment," said D.G. Macpherson, Grainger Chairman and CEO. The company raised its full-year 2026 guidance to net sales of $19.4 billion to $19.7 billion.
Executive Moves
Kelly Rudolf Named Border States VP of Information Security
Border States has named Kelly Rudolf VP – Information Security. Rudolf joined the Fargo, North Dakota-based distributor in 2003 and has advanced through a series of leadership roles, most recently serving as Information Security Director, where he helped develop and execute the company's enterprise security strategy.
"The impact of Kelly's leadership extends beyond technology," said Jason Stein, Chief Information Officer at Border States, according to Border States. "As VP Information Security, Kelly will continue leading Border States' efforts to enhance cyber resilience, manage enterprise risk and support the company's ongoing growth and digital transformation."
Graybar Names Michelle Reckelhoff Vice President – Human Resources
Graybar announced that Michelle K. Reckelhoff has joined the company as Vice President – Human Resources. In the role, Reckelhoff will provide strategic leadership for Graybar's HR centers of excellence, including people operations, total rewards, talent attraction and talent management.
Reckelhoff brings more than 20 years of experience with Caleres, where she most recently served as Senior Director, Human Resources Business Partnerships. "As we transform Graybar for the future, our people and our employee ownership culture remain vital to our success," said Beverly Propst, Senior Vice President – Human Resources at Graybar.
Wesco Promotes Veteran Sales Leader to VP of Global Channel Sales
Wesco International announced that it has promoted Greg Lindblad to Vice President of Global Channel Sales for converging technologies within its Communications & Security organization. Lindblad, an 11-year Wesco/Anixter leader, previously served as Senior Director of Global Sales and Strategy for Security Solutions and brings more than 20 years of experience across technology manufacturing and distribution.
In his new role, Lindblad will work with Wesco's largest global integrators to leverage the company's converging technologies portfolio, which spans security, professional audiovisual, networking, infrastructure, software and services, according to Modern Distribution Management.
Rexel USA Names Mike Hanna Chief Revenue Officer
Rexel USA has appointed Mike Hanna as Chief Revenue Officer, a move aimed at strengthening the company's commercial leadership as it advances its growth strategy. In the role, Hanna will oversee Sales Operations, Sales Enablement, Marketing, Pricing and Supplier Relations. Roger Little, president and CEO of Rexel USA, said the appointment reflects the company's commitment to aligning its commercial organization around its Axelerate 2028 priorities. Hanna said he is focused on building a more aligned commercial business that can grow with discipline and speed, delivering value for customers and supplier partners alike.
Agent News
JD Martin Expands Into Mexico, Latin America With Mersen, Dialight, Hammond Lines
According to Electrical Wholesaling, JD Martin International has been named the new manufacturers' representative for Mersen throughout Mexico and for Dialight and Hammond Power Solutions LATAM across Latin America. The new partnerships build on relationships JD Martin companies already hold with the three manufacturers in the United States. Juan Villasana, president of JD Martin International, said the additions draw on the firm's regional market knowledge and local presence, strengthening technical support and channel partnerships for distributors, contractors and end users throughout the region.
What We Are Reading
tED Magazine: NAED Distributors Report Strong Second Quarter Growth
The exclusive tED magazine/Baird Electrical Distribution Survey found that electrical distribution outperformed overall distribution in the second quarter of 2026, with growth of 5.8% in April, 4.9% in May and 10.1% in June compared with the same months in 2025. Twenty-three distributors with combined annual revenue of more than $10 billion took part in the survey.
Pricing also increased compared with a year earlier, with electrical products up 4.6% and Datacomm up 3.6%. Respondents cited data center demand as a primary growth driver while flagging concerns about the midterm election and ongoing international unrest.
Carrier Management: Construction Jobsite Theft Nearly Doubled Between 2024 and 2025
A joint industry report highlighted by Carrier Management from jobsite security and response firms TrueLook and Noonlight found that construction jobsite break-ins nearly doubled between 2024 and 2025, rising to 2,639 incidents from 1,750. More than 800 break-ins have already been reported across the U.S. this year, with thieves most commonly targeting copper wire, tools and unsecured Conex boxes.
The report found that more than 40% of thefts occur on weekends, with a peak window between 11 p.m. and 3 a.m., and recommends pairing physical controls like gates and locks with cameras and active monitoring.
Construction Dive: Construction's Warning Lights Are Blinking
In an opinion piece for Construction Dive, RubinBrown construction accountant Chris Coleman writes that climbing interest rates and high inflation are slowing demand even as the data center boom continues, and warns that many firms are unaware of the danger signs already visible in their own financials. He urges contractors to establish stronger monthly close-out processes and track job fade, underbilling and change orders as early indicators of financial trouble.
Coleman also points to bidding outliers — unusually high win rates or new competitors entering a market — as signals that broader demand may be contracting.
Border States: Supply Chain Update — August 2026
Border States' latest Supply Chain Update reports that U.S. tariff policy has shifted from broad announcements toward implementation, compliance and product-level cost impact. New Section 301 duties of 10% to 12.5% took effect July 24 on goods from 60 countries, Section 232 tariffs on copper, steel and aluminum remain active with 14 additional derivative categories proposed, and an additional 50% tariff on certain Canadian goods is set to take effect Aug. 19.
The update also points to a weakening labor market, with nonfarm payrolls falling by 23,000 in July and the prior two months revised down by a combined 103,000, alongside continued cost pressure across copper, steel and PVC and a domestic trucking market that remains historically tight despite easing slightly from its recent three-month run-up.
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).
FBX1 reflects what shippers typically pay on an all-in basis. Lower numbers often seen online are ocean-only quotes that exclude many real costs and may only be valid for a single sailing.
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.
