September 30, 2026
Electric Avenue — News Impacting Lighting Markets: September 2026
Distributors invest in branches, AI and specialty capabilities as data center demand accelerates
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 September 2026 Electric Avenue examines the business and market developments shaping today's electrical industry. This month's highlights include continued acquisition activity, new branches and service centers, executive succession, data and AI investments, rising commodity prices and construction indicators that show how heavily data center activity is supporting nonresidential spending.
Distributor Acquisitions
Rexel to Acquire Specialty Wire and Cable Platform GCG for $1.4 Billion
Rexel has agreed to acquire GCG, a Chicago-based provider of specialty wire and cable, connectivity, power and engineered solutions, from Audax Private Equity in a deal valuing GCG at an enterprise value of approximately $1.4 billion. GCG operates 16 locations with about 950 employees and is expected to top $1.1 billion in revenue in 2026.
More than 60% of GCG's revenue comes from segments such as data centers, utilities and grid modernization. Rexel plans to fund the deal with cash, roughly €800 million in debt and up to €500 million in new equity. Closing is expected by year-end 2026.
Electrical Distributor News
Kovalsky-Carr Opens Regional Service Center in Syracuse
Kovalsky-Carr has opened a new Regional Service Center in Syracuse, New York, expanding inventory availability and wire capabilities for Central New York and surrounding markets. The Rochester-based distributor has been part of employee-owned United Electric Supply since 2024.
The facility extends Kovalsky-Carr's delivery territory and offers same-day and next-day delivery along with specialized wire services. "The Syracuse location is a long-term investment to support customers and the growing market," said Matt Winters, president of Kovalsky-Carr.
Revere Unveils Refreshed Brand Identity Within Rexel USA
Revere has introduced a refreshed brand identity, simplifying its name to Revere as it continues its evolution within Rexel USA, which agreed to acquire the Midwest distributor in May 2026.
The company says the update aligns the brand with its long-term vision while keeping its service model intact. Revere now stands alongside Rexel USA banners including Platt, Mayer and Gexpro. "This refreshed identity honors that legacy while positioning us for the future," said John Cady, president of Revere and Rexel SVP and Midwest Region president.
FSG Climbs to No. 18 on EC&M's Top Electrical Contractors List
Facility Solutions Group (FSG) has climbed to No. 18 on EC&M magazine's annual ranking of the top electrical contractors in the United States, up from No. 22 a year earlier. The ranking is based on reported electrical and datacom revenue.
"This ranking belongs to our people," said Jason Zipprian, CEO of FSG. The Austin, Texas-based company, which generates more than $1 billion in annual revenue, also ranked No. 47 on Electrical Wholesaling's 2026 Top 100 electrical distributors list and No. 2 among specialty lighting distributors.
Rexel Reports Measurable Progress on Sustainability Targets
Rexel has published its 2025 sustainability brochure, reporting a 42% reduction in Scope 1 and 2 emissions and a 38% reduction in Scope 3 emissions compared with 2016. The group ties its sustainability roadmap to its Axelerate 2028 strategy and a net-zero goal for 2050.
Other highlights include a 10% drop in workplace accidents, training for 86% of employees and women holding 32% of management roles. Rexel's responsible supplier charter now covers 82% of direct purchases, and nine major suppliers have joined its new Sustainability Shapers program.
World Electric Opens Port St. Lucie Branch as Florida Expansion Continues
World Electric, a Sonepar company, has opened a new branch in Port St. Lucie, Florida. The Tampa-based distributor plans to open branches in Homestead and St. Augustine this fall, bringing its total to 23 locations across Florida and Georgia, and will add a central distribution center in Lakeland in 2027.
The branch offers panelboard assembly, material cages, fixture carts and online job management tools, backed by specialists in switchgear, lighting, data center and DOT projects. "We are excited about the continued growth of our company," said Tammy Livers, president of World Electric.
EB Horsman & Son Opens Grande Prairie, Alberta, Branch
EB Horsman & Son opened its new Grande Prairie, Alberta, branch on September 16, bringing local electrical and industrial supply to the Peace Region. The branch holds approximately $10 million in local inventory with an industrial focus, including heat trace, cable tray, enclosures, industrial lighting, process instrumentation and automation products.
The location is backed by two Canadian distribution centers and a 21-branch Western Canadian network. "This branch represents an important step in our continued growth," said Tim Horsman, president and CEO. David Thorne manages the branch.
Sonepar Deploys Global Data and AI Platform
Sonepar has rolled out a global Data & AI platform built with French consulting firm Onepoint, calling it the first of its kind in electrical distribution. Based on Microsoft Fabric and Azure AI Foundry, the platform continuously analyzes sales, customer histories and logistics flows to modernize the supply chain and sharpen demand forecasting.
Sonepar plans to add use cases in personalized product recommendations, inventory optimization and sales team support. "AI is a truly strategic lever for Sonepar," said Jérémie Profeta, chief transformation officer.
Executive Moves
Wesco Names Ben Jaffe VP of Supplier Relations for EES
Modern Distribution Management reports that Wesco International has promoted Ben Jaffe to vice president of supplier relations for its Electrical & Electronic Solutions (EES) organization, effective September 7. He succeeds Peter Bordonaro, who retired after 34 years with the company.
Jaffe joined Wesco in 2018 and most recently served as senior director of global supplier relations for its Communications & Security Solutions unit. Based in Glenview, Illinois, he reports to Danny Castillo, executive vice president and general manager of EES, and leads supplier strategy, pricing and assortment.
Crescent Electric Promotes Kristee Mitchell to Chief Supply Chain Officer
Crescent Electric Supply Company has promoted Kristee Mitchell to chief supply chain officer, effective August 31. Mitchell joined Crescent in 2023 and most recently served as vice president of supply chain fulfillment.
In the new role, she oversees supplier partnerships, supply chain fulfillment, distribution center operations, transportation management and operational excellence across the enterprise. She holds an executive MBA in global supply chain management from the University of Tennessee. "We congratulate Kristee on this well deserved promotion," said Penny Cotner, president and CEO.
Crescent Electric CEO Penny Cotner to Retire in April 2027
Crescent Electric Supply Company has announced that president and CEO Penny Cotner will retire in April 2027, roughly 18 months after taking the top job at the East Dubuque, Illinois-based distributor. Cotner will remain CEO through April and work with the board on the transition while it conducts a national search for her successor.
"This is a deeply personal decision, driven by a shift in my own circumstances," Cotner said. She joined Crescent in October 2025 after 12 years at Infinite Electronics, including seven as CEO.
Crawford Names Wade Moore VP of Operations
According to tED Magazine, Crawford, a Sonepar company, has named Wade Moore vice president of operations. Moore leads operational strategy across the Houston-based distributor's network, overseeing fulfillment, transportation, logistics, inventory management and safety.
Moore brings more than 30 years of leadership experience in large-scale operations and network transformations. Crawford operates 68 branches supported by a distribution center and regional wire centers. "Wade brings operational expertise and a track record of leading through growth," said Michael Font, senior vice president of business advancement.
What We Are Reading
Dodge Economist Examines Data Center Backlash in Texas
Writing for Dodge Construction Network, chief economist Eric Gaus examines growing pushback against the AI buildout after Texas regulators were directed to audit large-load projects and temporarily halt new data center grid connections. Before the pause, ERCOT's pipeline held 474 GW of requested demand, roughly 90% from data centers. Gaus expects development to slow but not stop.
NAED Responds to Executive Order on Bulk-Power System Security
tED Magazine reports that the National Association of Electrical Distributors supports the goal of Executive Order 14420, which declares a national emergency to secure the U.S. bulk-power system. NAED President and CEO Wes Smith said the association will push for clear standards and reasonable timelines so implementation preserves access to grid products and avoids shortages or project delays.
Phased Upgrades Offer a Cost-Effective Path for Class B Buildings
Facilities Dive reports that Class B office owners can attract tenants at manageable cost by staging upgrades around leasing cycles. Todd Sims of the National Electrical Manufacturers Association recommends starting with LED lighting and controls, submetering and variable-frequency drives, then using the savings to fund later phases. One Washington, D.C., building recovered its investment in just over two years.
More Distributors Named in PVC Price-Fixing Case as Settlements Top $415M
Modern Distribution Management reports that the distributors identified as alleged co-conspirators in the PVC pipe price-fixing litigation have doubled to six, adding Hajoca, Porter Pipe & Supply and United Pipe & Steel to Core & Main, Ferguson and Fortiline Waterworks. None is a defendant, and the allegations are unproven. Settlements now total about $415 million.
Border States: Copper Hits Record High on Tariff Expansion Fears
The September Commodity Update from Border States reports that copper reached record highs in early September on expectations that U.S. Section 232 tariffs will expand to refined copper, with prices up 48% year over year. Aluminum rose 38% amid renewed U.S.-Canada trade tensions, while steel and PVC suppliers raised prices on hyperscale demand.
Economic Factors
Construction Spending: Data Centers Drive Slim Gain
Nonresidential construction spending rose 0.1% in July to a seasonally adjusted annualized rate of $1.286 trillion, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data. Spending fell in eight of 16 nonresidential subcategories. Private nonresidential spending rose 0.4%, while public nonresidential spending slipped 0.2%.
"The increase in nonresidential construction spending that occurred in July was entirely due to data centers," said ABC Chief Economist Anirban Basu, adding that excluding data centers, spending fell to its lowest level since September 2023.
Construction Backlog: Indicator Rebounds to 8.5 Months in August
Associated Builders and Contractors reports that its Construction Backlog Indicator rebounded to 8.5 months in August, up 0.5 months from July and unchanged from a year earlier. Only the largest contractors saw backlog decline.
Confidence readings for sales and profit margins rose while staffing fell, though all three remain above 50. Contractors with data center work reported 9.9 months of backlog versus 8.3 months for others. Roughly 1 in 6 ABC members is now under contract on a data center, the highest share on record, said ABC Chief Economist Anirban Basu.
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.
