Trystan Casey
The electrical distribution market in the US is a dynamic and resilient industry, with hundreds of distributors operating across the country. Electrical Wholesaling Magazine annually publishes a list of the Top Electrical Distributors, which provides valuable insights into the size, scope, and performance of these businesses. This year's list has seen a reduction from 150 to 100 companies, reflecting the increasing pace of mergers and acquisitions in the industry. Despite economic uncertainties, many distributors are investing in their businesses and positioning themselves for future growth. This competitive landscape is driven by acquisitions, with larger companies acquiring smaller, independent distributors to expand their market share. The electrical distribution market is estimated to generate billions in sales, highlighting its significance to the US economy.
| Characteristics | Values |
|---|---|
| Number of electrical distributors in the US | 200+ |
| Number of largest electrical distributors in the US | 50 |
| Number of largest electrical distributors in the US (as of 2023) | 150 |
| Number of largest electrical distributors in the US (as of 2024) | 100 |
| Number of largest electrical distributors acquired since 2020 | 30 |
| Number of largest electrical distributors acquired since 1980 | 60+ |
| Number of employees in the 10 largest electrical distributors | 51,000+ |
| Number of locations in the 10 largest electrical distributors | 4,000+ |
| Number of companies with increased revenues in 2023 | 39% |
| Number of companies forecasting flat sales in 2023 | 10% |
| Number of companies with sales growing at a rate of 10% or more in 2024 | 37% |
| Average annual sales increase for electrical distributors | 4% to 8% |
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What You'll Learn
Largest electrical distributors in the US
The electrical wholesaling industry in the US has seen a surge in acquisition activity, with many family-owned independent distributors selling to larger companies. This has resulted in a reduction in the number of companies featured in the annual rankings of top electrical distributors, from 200 to 150, and now to 100.
Despite this, there are still several thousand independent electrical distributors in the US. The 2023 Top 150 Distributors list, published by Electrical Wholesaling, included companies that saw their annual revenues surpass the 4% to 8% annual revenue increase range typical in the electrical market. The 50 largest electrical distributors in 2022 had combined revenues of $88.3 billion, according to Electrical Wholesaling magazine estimates.
The 10 largest distributors in 2023 were:
- Wesco (Pittsburgh)
- Sonepar USA (Charleston, South Carolina)
- Graybar Electric Co. (St. Louis)
- Rexel (Dallas)
- Consolidated Electrical Distributors (Irving, Texas)
- City Electric Supply (Dallas)
- Border State Electric (Fargo, North Dakota)
- Elliott Electric Supply (Nacogdoches, Texas)
- U.S. Electrical Services (Middletown, Connecticut)
- McNaughton-McKay Electric (Madison Heights, Michigan)
These companies accounted for $65 billion in total sales, at least 40% of the market's $140 billion in total sales. They employ at least 51,000 people and operate more than 4,000 locations.
Other notable electrical distributors in the US include:
- Inline Electric Supply (Huntsville, Alabama)
- Coburn Supply (Beaumont, Texas)
- Butler Supply (St. Louis)
- CEEUS Inc. (West Columbia, South Carolina)
- Chelsea Lighting (New York)
- Clayton Engineering (Wheeling, West Virginia)
- Metro Wire & Cable Corp. (Sterling Heights, Michigan)
- FSG Electric & Lighting
- Jo-Kell Inc. (Chesapeake, Virginia)
- Green Mountain Electric Supply (Colchester, Vermont)
- Schaedler YESCO Distribution (Harrisburg, Pennsylvania)
- American Electric Supply (Corona, California)
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Mergers and acquisitions
In the past two years, Sonepar or its subsidiaries have acquired seven large independent distributors, including Electric Supply Center, Madison Electric Co., Standard Electric Co., Electrozad, Billows Supply, Sunrise Electric Supply, and Electric Supply of Tampa. Other major national or super-regional distributors that have been active acquirers include Rexel, Graybar Electric, Consolidated Electrical Distributors, and Border States Electric. These acquisitions have resulted in the consolidation of the electrical wholesaling industry, with a handful of large national and regional distributors gaining a significant market share.
The electrical wholesaling industry is currently in one of its most acquisitive cycles, with Electrical Wholesaling magazine counting more than 60 mergers or acquisitions in the past five years. These deals have involved the sales of electrical products from numerous family-owned independent distributors to large national and regional distributors, representing millions of dollars in sales. The 10 largest electrical distributors in the US are estimated to account for at least 40% of the market's total sales, with combined revenues of $65 billion to $75.5 billion.
The impact of mergers and acquisitions on the industry is evident, with concerns about the increasing competition and challenges faced by smaller independent distributors. However, it also provides opportunities for growth and expansion, as larger companies can leverage their stronger vendor relationships and economies of scale to gain a competitive edge.
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Sales growth
The electrical distribution industry has seen steady growth, with the average annual sales increase ranging from 4% to 8%. In 2018, the Top 200 distributors forecasted a 7.5% growth, which was at the high end of the industry's historical annual growth range. This growth has been driven by various factors, including federal tax cuts, construction projects, and the retrofit of existing industrial facilities with LED lighting.
Inflation has also played a significant role in revenue increases for some companies. In the utility market, Matt Brandup, CEO of Rural Electrical Supply Cooperative (RESCO), stated that inflation accounted for two-thirds of his company's sales growth in 2022, with a considerable increase in transformer sales. RESCO is expecting a 30% revenue increase in 2023. TEC Manufacturing and Distribution Services, another utility specialist, forecasted an 11% revenue increase for 2023, driven by new sole-source alliances.
Despite economic uncertainties, the Top 150 distributors in 2023 remained optimistic about increased revenues. Larger distributors have been expanding their market share through acquisitions and geographic expansion, while smaller distributors remain competitive by reacting faster to market opportunities and leveraging their relationships with local talent.
Looking at the 2024 rankings, 39% of respondents reported sales growth between 1% and 5%, while 37% experienced growth above 10%. The largest distributors in 2024, the Top 100, accounted for $95 billion in revenues, with the Top 10 contributing to an estimated $75.5 billion in sales, making up 52% of total industry sales.
Overall, the electrical distribution industry in the US has demonstrated resilience and growth, with sales increases driven by various economic and market factors.
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Employee count
In recent years, the list has been pared down from 150 companies to 100, reflecting the dynamic nature of the electrical distribution market, with mergers and acquisitions playing a significant role. Despite the reduction in the number of companies listed, the employee count for these distributors remains substantial.
The 10 largest distributors in the United States, including Wesco, Sonepar USA, Graybar Electric Co., and Rexel, among others, account for at least 51,000 employees and over 4,000 locations. These companies are industry leaders, capturing a significant market share and driving the electrical distribution sector forward.
While the exact employee count for each distributor can vary, it is safe to assume that the largest distributors have a considerable workforce. This enables them to handle large-scale operations, manage extensive supply chains, and provide nationwide coverage. Electrical distribution is a complex and technical field, requiring a skilled workforce to ensure safe and efficient operations.
In addition to the employee count, it is worth noting that electrical distributors also rely on a network of independent contractors and partners. These individuals or small businesses work closely with the distributors to provide specialized services, ensuring that projects are completed smoothly and to the highest standards.
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Independent distributors
The number of electrical distributors in the US is challenging to pinpoint, as the market is constantly changing due to acquisitions and mergers. Electrical Wholesaling Magazine, which publishes an annual list of the Top 150 Electrical Distributors in the United States, decided to scale down its list to the top 100 in 2024 due to the increasing number of acquisitions.
Despite the challenges, there are still thousands of independent electrical distributors thriving in the US market. These independent distributors play a crucial role in the industry, offering unique advantages that contribute to their resilience and growth.
One significant advantage is their agility in responding to market opportunities. Smaller independent distributors can often react faster to market changes and trends, allowing them to stay competitive. This agility also extends to their talent acquisition strategies. For example, Inline Electric Supply, a multi-location independent distributor, highlights their ability to attract top talent by offering the flexibility and advantages that come with being an independent company.
Additionally, independent distributors often have strong relationships with local businesses and contractors, which can account for a significant portion of their business. Electrical contractors, in particular, are loyal customers, often accounting for 50% or more of an independent distributor's clientele.
While the larger distributors have the advantage of economies of scale and stronger vendor relationships, independent distributors are not intimidated. They recognize the importance of providing excellent service, reasonable pricing, and understanding their customers' unique needs to gain a competitive edge.
In conclusion, while the exact number of electrical distributors in the US is difficult to determine due to the dynamic nature of the industry, independent distributors make up a significant portion of the market and continue to thrive by offering agility, strong local connections, and tailored services to their customers.
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Frequently asked questions
There are over 200 electrical distributors in the US, with the top 10 accounting for at least 40% of the market's total sales.
The top 10 electrical distributors in the US include:
- Wesco
- Sonepar USA
- Graybar Electric Co.
- Rexel
- Consolidated Electrical Distributors
- City Electric Supply
- Border State Electric
- Elliott Electric Supply
- U.S. Electrical Services
- McNaughton-McKay Electric
The top electrical distributors in the US are ranked annually by publications like Electrical Wholesaling Magazine and EC&M.
The ranking criteria include each company's sales, number of employees, number of locations, and ability to manage their business through economic cycles, acquisitions, and new market opportunities.
Yes, there is a notable trend towards mergers and acquisitions, with larger companies acquiring smaller distributors to gain a competitive edge and increase their market share.
