Canadian Data for Canadian Electrical Marketers. Coming together for new benchmarking tools in Canada

Transcription

1 Canadian Data for Canadian Electrical Marketers Coming together for new benchmarking tools in Canada

2 What we know? as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns --the ones we don't know we don't know. Pathfinder reports from the Distributor to the End user EFED reports from the Manufacturer to the Distributor Donald Rumsfeld From Department of Defense news briefing, February 12, 2002

3 Canadian Information first EFED Pathfinder Industry input Future Opportunities can include; 1. Market research by segment, product, channel 2. Specific product opportunity analysis 3. Competitive channel reviews 4. Help in Strategic planning 5. End user out reach 6. Lead Generation programs 7. Membership growth WIN WIN approach EFED provides collective data (not individual company data) Pathfinder extends beyond to those who do not report Industry collaboration leads to better data and better definition Canada Only focused data Findings are Channel is growing by its definitions and business models 1000 branches analyzed More suppliers tracked than ever before based on line cards

4 Canada US market Map CANADA USA North America TOP 7 Distributors Share 33.27% 36.21% 71.20% TOP 7 -Sales ANIXTER CED GRAYBAR HD SUPPLY REXEL SONEPAR WESCO 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

5 The Branch footprint CANADA, 862, 16% USA, 4638, 84% 5500 branches in North America Canada has 16% of all branches The top seven distributors have 48.6 % of all branches in North America and 55.4 % in Canada CANADA 55.40% USA 47.11% North America 48.61% 42.00% 44.00% 46.00% 48.00% 50.00% 52.00% 54.00% 56.00% 58.00%

6 How do we compare to the US? CANADA USA

7 Canada -a New perspective Electrical Channel by type of Distributor Canada Number % % Square % Square Branches Geography Branches Branches Employees Employees feet feet 4 branches or Independent less local % 1, % 1,047, % More than 3 Regional 5+ provinces % 1, % 897, % Multinational provinces % 7, % 4,076, % Source Pathfinder Research ,000 10,919 6,021,065 Defines the market: Full line Electrical wholesalers both members and non members

8 2013 review 2013 Flat to negative 1.6 % 2014 Flat Full Line Electrical Distributors 83.3% of market Total available market (TAM) $8.9 billion $1.3 billion in retail, hybrid(catalogue) Specialty channel on the rise Have identified 30+ Utility supply businesses in Canada Fastenal and Grainger increasing penetration in TAM With Concentration of ownership will the next plays be more regional/specialty Enter IMARK

9 Electrical -Economics 101 June thru August were tough months Quebec construction issues Alberta projects off in electrical spend Construction down 2% Low volumes thru summer across all products ED Inventory at nominal level $1.4 Billion estimated Good news oil/gas but the related project capital spend is off and maybe for a while yet Bad news is manufacturing is down and stagnant at best this could be the new reality here (-3% year over year) Business investment is also down ( the 5-7 year cyclical spend from mining, forestry etc. has not offset) Our electrical take is flat through 2013 balance and 2014

10 Pathfinder Data Industry Data EFED Data Company specific data Private confidential sales data Some regional break outs but limited End user study EFED Section Data Regional data Private confidential sales data Competitive study Distributor specific data EFED data Product mix (basket) Line CARD Control, lighting, wire, distribution Customer data End User database Regional data Branches, footprint, employees

11 Process Branch by branch review includes; Line card determines focus and product mix skew ( lighting, control, wire etc.) Local market dynamics determines potential, market mix (Resi, Commercial, Industrial) Employee counts Facility size

12 The market as we see it today 1. Full Line distribution 2. Product Niche 3. Service product niche 4. Hybrids 5. Retailers selling electrical 6. Other trade 7. Other channels What we measure Is the total served market

13 Canada Channel profile The average electrical distributor branch in Canada is 5,993 square feet not including outdoor storage space On average 10.8 employees work in every branch in Canada up from 10.3 in 2012 The median foot print per branch is 3,500 square feet not including outdoor storage space The median employee size is 7 The largest electrical equipment facility in Canada is 240,000 square feet

14 Canada Total available market Percentage Total Available Market Electrical Wholesalers full Line $6,230,565, % Speciality $370,112, % Retail $1,200,000, % Hybrid Distributors $200,000, % Catalogue Houses 0.0% Datacom $178,450, % Utility Distributors $532,000, % Sales Direct $200,000, % Other (HVAC, Industrial etc.) $0 0.0% TOTAL $8,911,127, %

15 Electrical Equipment at Retail Estimated Sales of Electrical Equipment at Retail Electrical Equipment representing 3% of total sales of $40 Billion Estimated sales (Billions) Lighting products $0.90 Other electrical (connectors, tools, wire, datacom) $0.30 Market Share Percentage Total $ % Source Pathfinder Research % 25%

16 Sales of Electrical Equipment at Hybrid Distribution Company Canadian Sales Branches Canada Electrical Equipment Hand Tools * Lighting Motors Acklands Grainger ** $1,000,000, $70,000,000 $70,000,000 $60,000,000 $20,000,000 Fastenal $224,050, $20,164,568 $0 $0 $0 Total $90,164,568 $70,000,000 $60,000,000 $20,000,000 Source Pathfinder Research 2013 * including electrical focused tools ** from 2013 annual report

17 Total served market Table 7: Electrical Channel by Type 2013 Type Sales 2013 percentage of market Full Line Electrical Distributors $6,230,565, % Speciality $370,112, % Utility including wire $532,575, % Datacom $178,450, % Other $168,652, % Source Pathfinder Research 2013 $7,480,355, %

18 Product Mix Canada

19 The Customer Mix Buy Specify, Install, Maintain Driving more specific product distribution Lighting Power Quality Structured cabling Utility Energy management Panel Building Evolving business models Distributors providing in house customization in panels Acquisition of aligned businesses in HVAC, etc. Surplus Direct New Buying teams thatbuy, specify install and maintain electrical equipment Electrical Engineer Plant operations(mro) Engineering Electrical maintenance

20 Market/Customer Mix Canada Market Mix Customer Mix Government /other 22% Residential 23% Other including Utlities 13% Industrial 27% Contracting 43% Industrial 33% Commercial 22% Commercial/ Institutional/ Government 17%

21 The Electrical Contractor SNAPSHOT! D i s t r i b u t o r Small contractors - Small firms 5 and less employees - Counter market - Last minute /specific job - Why they buy 1. Ease of product installation 2. One stop shopping 3. Ease of handling return/replacement 4. Location 5. Brand manufacturer reputation Large contractors 15 + employees Not typically counter traffic - Why they buy 1. Product Quality 2. Availability at preferred Distributor 3. Familiarity with Brand 4. Manufacturer reputation 5. Warranty

22 Market Mix How Do we compare to USA Canada US Electrical Contractors 39.9% 36.3% Contractors other than electrical 4.1% 4.2% Commercial 7.9% 10.6% Institutional 3.3% 3.5% Industrial MRO 15.2% 14.5% Industrial OEM 8.8% 9.0% Factory Automation 3.9% 3.3% Utilities 5.2% 5.5% Retail 1.5% 1.5% Retailers for resale 1.2% 1.4% Government 4.2% 4.3% Export 1.6% 0.5% Other Wholesalers 1.5% 1.2% Other ( farming, agriculture) 1.9% 4.2% Total 100.0% 100.0%

23 Information platforms WHERE THE ELECTRICAL INDUSTRY GOES FOR ITS INFORMATION NEED The reach of the Business to business platforms How often do you use the following information sources for electrical industry-related content? Percentage of who use each Websites 96% Print magazines 91% E newsletters 78% Print newsletters 50% OPT in Newsletters direct from supplier 45% Digital version ( 100% replication of print) 31% Social media 21% On line purchasing of electrical equipment 19% Mobile 17% Source Pathfinder Research 2013

24 Continuing Goals Bring more Canada Specific data Gain more insight Drive collaboration Channel Segmentation study in 2014 of specialty and niche markets, control, utility, lighting Close loop to understand end users Support more marketing data Develop more section support data to determine new competitors Help grow EFED membership and footprint

25 In closing..so when we do the best we can and we pull all this information together, and we then say well that's basically what we see as the situation that is really only the known knowns and the known unknowns. And each year, we discover a few more of those unknown unknowns. Donald Rumsfeld November 2002