The New and Improved Hybrid Electrical Distribution Is Still Here and Growing

I came across another article by Jim Lucy, Chief Editor, Electrical Wholesaling magazine that brings us back to growing the hybrid electrical distribution channel in North America.

Jim and then the chief editor Andrea Herbert were actually the co-authors of the Electrical Pyramid back in 1994 where the hybrid distribution channel was not even mentioned. In 2004, Jim Lucy and Sahah Tobaben-Dolash updated the pyramid to include hybrid and niche distribution.

In Jim’s new article, we find this particular channel is alive and growing. Here is an excerpt.

Hybrid distributors

Hybrid distributors distribute electrical supplies, but they don’t operate like traditional electrical distributors. For the purposes of this analysis, hybrid distributors are large distribution companies where electrical products are part of a much broader portfolio, or firms with a truly unique blend of products, installation capabilities or service offerings.

Although a bit out of the mainstream of the electrical wholesaling industry, these companies offer manufacturers of electrical and electronic equipment additional channels to market, compete with full-line electrical distributors in many instances and are therefore important “bricks” in the electrical pyramid. Anixter Inc., Glenview, Ill.; Fastenal Inc., Winona, Minn.; and W.W. Grainger Inc., Lake Forest, Ill., are the three largest hybrid distributors selling electrical supplies into this market.

Niche distributors

More than a dozen distinct types of niche distributors exist. They specialize in many different products, including residential lighting fixtures, motors, automation products, lamps, industrial controls, wire and cable, energy-conservation products, utility products, VDV products, fuses and electrical insulation materials.

Some of these specialty distributors are strictly distribution firms and do not handle any design, installation or repair capabilities. Other niche distributors, such as automation specialists, energy-service companies and motor repair shops, offer other services along with distributing products. Although they sell electrical supplies, these repair/service distributors primarily focus on providing a complete service solution to their customers; product sales may not be their primary function.

In Mr.’s Lucy 2016 article we can find the following additions:

• product niche distributors
• service/product niche distributors
• hybrid distributors
• retailers selling electrical supplies
• distributors from other trades selling electrical supplies
• web-based companies

Bottom line: no matter where we live in North America we can find these new channels of distribution in the electrical industry. We all have seen how the solar and wind products lines have found there way to this new distribution channels. This is on top of the new lighting hybrid distribution channel, which has grown to include lighting control, security and LED product lines.

The real question is when and how our existing full line distributors will cross the line and invest the time, money and effort to include themselves in these fast growing markets in North America. Some have taken steps, but a majority of distributors is just watching this opportunity.

I can only suggest that you take the time to determine if you want to invest in this growing market.

Paul Eitmant is President and CEO of IP Group International, which serves the needs of business-to-business enterprises in over 30 countries worldwide by adding specialized expertise to the business planning and implementation process; Tel: 480.488.5646; paulipgroup@cox.net.