The 2017 NAED Market Overview Report provides an overview of the sales, customers, and services as it pertains to the electrical distribution industry in the past year, including: • Largest customer segment remains commercial electrical contractors (36%) • Top product categories sold include: Wire & Cable, Breakers & Load Centers, and Fuses • 77% of respondents offer energy management and green technology products The information was provided by NAED members working in sales, marketing and other key positions.

1. 2017 NAED Market OverviewPublished April 2017
NATIONAL ASSOCIATION OF
ELECTRICAL DISTRIBUTORS

2. NATIONAL ASSOCIATION OF
ELECTRICAL DISTRIBUTORS
INTRODUCTION
The National Association of Electrical Distributors (NAED) has more than 400 distributor
companies, serving nearly 5700 locations, and 230 allied and associate partners.
Purpose
• This report provides key information regarding sales, customers, and services as
it pertains to members of NAED.
Data
• NAED member product offerings
• NAED member service offerings
• Key customer segments for NAED members
• Key industry segments for NAED members
Electrical Equipment Wholesaling Sales Trends
• Industry customers by percent
• Industry products by percent
• Sales for full line distribution vs. total electrical equipment wholesaling
• Full line distribution sales change by product line

3. 32%
ESCO
Market Overview: At a Glance*
67%
Building
Efficiency
Solutions
Top Electrical Products Sold
Other Products Sold
Fire/ Smoke/ Life Safety
Energy Management/
Green Technology Products
Industrial Control &
Automation Devices
Power Quality/
Stand-by Power
Lighting
Efficiency
Solutions
94% 69% 66%
Energy
Audits
Energy/
Sustainability
Solutions
Energy Management Services Currently Offered
Top Three Customers
Industrial/ Original
Equipment
Manufacturer
36%
Electrical Contractors
- Residential
Electrical Contractors
- Commercial
*According to all distributor respondents
97%
Braker & Load Centers
97%
Fuses
97%
Cable Ties
96%
Wire and Cable
96%
Light Fixtures
96%
Conduit & Cable Fittings
96%
Ballasts
95%
Receptacles
95%
Lamps
95%
Connectors
95%
Dimmer Switches
95%
Timers
95%
Wall Switches
95%
Wire Terminals
95%
Occupancy Sensors
19%
16%
85%
77%
74%
68%

4. Economic Expectations for 2017
*According to all distributor respondents
Worse
About the Same
Better
U.S. Economy 29%
59%
12%
Electrical
Industry
35%
62%
3%
Company’s
Revenue
74%
22%
4%
Construction
Industry
33%
63%
4%

5. Who are our customers?*Average percent of customer segments for NAED distributor members
*These results are based on the average percentage of distributors reporting customers of each type. They will not total 100%.
36%
Electrical contractors
- Commercial
19%
Electrical contractors
- Residential
16%
Industrial/Original
Equipment Manufacturer
3%
Utility
2%
DIY (Do-It-Yourself)
buyers
2%
Other
7%
Electrical contractors
- Other
4%
Commercial facilities
4%
Hotels/Hospitals/Schools/
Malls/ Office complexes
4%
Government

6. What kind of green products do you offer?
Energy management/
Green Technology
Products
2016
80%
2015
89%
2017
77%
Solar Energy
2016
36%
2015
42%
2017
37%
Electric Vehicle Supply
Equipment
2016
39%
2015
48%
2017
34%
Wind Energy
2016
10%
2015
21%
2017
18%
*Multiple responses allowed*Percentage of distributors respondents offering these products

7. 48%
Sequencing
Orders
Services offered
*Multiple responses allowed
93%
Wire and cable
cutting, stripping
87%
Lighting layout
and design
56%
Kitting/Assembly
services
57%
Layout and
design work
48%
Customized
packing
47%
Pulling
Heads
42%
Customized
labels
23%
Din rail assembly,
cutting, punching
25%
Power cord
modification
and termination
15%
Radio-Frequency
Identification
Labeling (RFID)
11%
Building Information
Modeling (BMI)

8. Inventory management services offered
*Multiple responses allowed
Job site
delivery
Emergency
delivery
Early a.m.
delivery
Staging
orders
Vendor managed
inventory
On-site containers
inventory
Project logistics
management
Night delivery to a
secure container
Customs
brokerage
96%
92%
89% 87%
67%
55%
47%
34%
9%

9. 2017 Full-Line Electrical Distribution
Market Share
1
Source: IBISWorld calculated the total Electrical Equipment Wholesaling Market size based on government defined NAICS data as of 1/2016. This report covers NAICS
category, 423610 Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers. For more information about NAICS, see the Appendix.
* Note Data for IBISWorld reports are calculated independantly and are not meant to be compared year over year.
2
Source: Epicor Vista Information Services, 3/2016. For the purposes of this report, a full line distributor is one that carries all types of electrical products. This compares
to specialty distributors that only carry one type of electrical product i.e., a lighting distributor or an industrial distributor
2016 Year End Sales
Total Electrical Equipment Wholesaling1
Full-Line Electrical2
$174B
$63B
63
111
Full-Line Electrical
Distribution
Other
Distributors
billion
billion

10. Download the full report at
naed.org/marketoverview