The document summarizes key findings from the 2015 NAED State of the Industry survey. It provides demographic information about survey respondents and their expectations for 2015 US economic conditions. Distributors and manufacturers were surveyed about drivers of revenue growth over the next three years and the most challenging economic factors. Industry leaders commented on their biggest surprises and disappointments from 2014.

1. 2015 NAED
State of the
Industry
NATIONAL ASSOCIATION OF
ELECTRICAL DISTRIBUTORS

2. President
33% 33%
CEO
VicePresident
CMO
CFO
GeneralManager
RegionalManager
Other
Owner
20%
21%
7%
1%1%
3%
5% Distributor
Manufacturer
Manufacturer
Representative
Other
20%
64% 14%
3%
May not total 100% due to rounding
Multiple responses allowed
NAED State of the Industry
SURVEY DEMOGRAPHICS

3. EXPECTATIONS FOR 2015 - US ECONOMY
Manufacturer
3%
Distributor
5%
Manufacturer
33%
Distributor
54%
Manufacturer
63%
Distributor
41%
5%
50%45%
INDUSTRY
OVERALL
MANUFACTURER/
DISTRIBUTOR BREAKOUT
Worse
About the Same
Better

4. Distributor Manufacturer
DRIVERS OF REVENUE GROWTH
OVER THE NEXT THREE YEARS
Multiple responses allowed
EXPAND CORE MARKETS
EXPAND NEW MARKETS
ADDING CUSTOMERS
RETAINING CUSTOMERS
IMPROVED ECONOMY
PRODUCT INNOVATIONS
INCR. CONSUMER SPENDING
NO GROWTH
OTHER
28%
15%
12%
8%
23% 4%
9% 12%
16% 20%
1% 44%
2%
2%
2%

5. MOST CHALLENGING ECONOMIC FACTORS
4%
20%
76%
HEALTH-CARE
COSTS
1%
47%52%
OUTSIDE
COMPETITION
FOR SALES
Positively About the same Negatively
May not total 100% due to rounding

6. TOP FIVE ECONOMIC FACTORS COMPANIES
FEEL ARE LEAST CONTROLLABLE
INDUSTRY
CONSOLIDATION
POSSIBLE LIFO
REPEAL
75%
64%
TAXESCOST OF FUELEMPLOYMENT
MARKET
59%
54%
52%

7. Surprises…
• “The pace of manufacturer and channel consolidation.“
• “Price of copper.”
• “The ability of weak distribution companies to survive.”
• “Embracing of social media.”
INDUSTRY LEADERS COMMENT ON
THEIR BIGGEST SURPRISES IN 2014

8. INDUSTRY LEADERS COMMENT ON
THEIR BIGGEST DISAPPOINTMENTS IN 2014
…Disappointments
• “The speed with which distributors adapt to trends.”
• “Slow growth and market saturation.”
• “The loss of market position versus ESCO’s.”
• “The lack of long-term strategic planning/ thinking.”
• “Distributors are slow to embrace technological change
into their business causing them to miss out on new
market opportunities.”

9. DOWNLOAD
the complete
report.
NATIONAL ASSOCIATION OF
ELECTRICAL DISTRIBUTORS