Our friends at Electrical Wholesaling magazine (in the November 2016 issue) have projected the size of the electrical distribution industry in 2017 to exceed $102.8 billion, an increase of 3.1 percent over 2016. All in all, this is an indicator of a stable and growing industry.
At the same time, most would agree that IMARK members of all sizes are facing unprecedented levels of business challenges and potential disruptors.
At our recent Showcase meeting in Chicago, the members of our Board of Directors and our marketing committee helped us to develop a list of the most pressing business challenges to be faced by IMARK members in the coming years. Here is a partial list of what they shared with us.
- Labor shortage in the trade, which results in further demands for services from distributors—including services that should generate revenue for members.
- The strategic use of data to guide business decisions and resource allocations.
- The sales force of the future as e-commerce plays a larger role for younger people entering the customer base.
- Dealing with increased turnover and lack of employee loyalty (faced by all businesses everywhere).
- Mitigating business risk that comes from customer terms and conditions (Ts and Cs) that were prepared by “lawyers on steroids” and can expose members to great risk.
- Developing a practical planning template which can help members to proactively navigate these trends and disrupters.
- Successfully exploiting the opportunities in the solid-state lighting and controls arena. “We’re in the computer business, not the lighting business,” said one member.
Whether these challenges are seen as a threat or opportunity (neither or both) is a function of the attitude and capabilities of company leadership.
Like many people, we believe that the position of the electrical distribution industry as the “channel of choice” is strengthened by a strong and vital IMARK Group membership.
To assist our membership in dealing with the challenges above, we intend to put our strong and unique culture to work in support of IMARK members committed to a bright future.
Effective immediately, we are forming the IMARK Member Growth Committee.
Our intent is to attract the best and brightest from our pool of large, medium and small IMARK members. This committee will be made up of 15 people who have a passionate interest in and knowledge of the electrical industry. They will be “students” of the changes facing the electrical distribution industry and business in general. And, like us, they believe that all members of the electrical distribution channel benefit when there is a strong and growing core of “independent” distributors throughout North America.
A key challenge for the committee will be to determine and guide the appropriate role for IMARK Group to play to support members facing business change or disruption. All possibilities are on the table.
The first meeting of the IMARK Member Growth Committee will be held on October 13-14.Our friends at Electrical Wholesaling magazine (in the November 2016 issue) have projected the size of the electrical distribution industry in 2017 to exceed $102.8 billion, an increase of 3.1 percent over 2016. All in all, this is an indicator of a stable and growing industry.