Electrical Industry Roundtable 2014 - 12

KERR: Dave?
SYER: Your question about a hybrid specialty distributor as it relates
to globalization is interesting. I think consolidation is fostering that.
So if consolidation is a function of globalization then the two are
related, but I don't think that globalization alone creates the space
for specialist channel partners. Consolidation certainly does, and I
think Murray talked about companies becoming experts in plumbing,
electrical...why not add HVAC? Such companies cannot truly be
expert at anything but logistics. Consolidation comes at the expense of
expertise. Th at's the space, and the opportunity for the specialist.
Canada is much more consolidated than many other markets. In
Western Canada, there may be a number of entrepreneurs in the
making. It is going to be an interesting time. Th ere is opportunity for
specialists in Canada because it's so consolidated.
CHAMNEY: We have fi red ourselves from a few
manufacturers' lines because we don't want to go
into a specifi c channel when we are not experts at it.
We've walked away saying that they need to
hire an expert in that particular fi eld; we're not
prepared to do this.
KERR: Well, you can see some of the established
electrical wholesalers now buying those integrators
to get that hold on the lighting and controls side.
David Syer, John Kerr.
SYER: ...Right, they're hiring specialist groups within a generalist
organization.
SENCICH: I'm not sure globalization is driving consolidation.
Globalization helps bring products in from all over the world to the
potential benefi t of the customer. I think it's customer preferences
that's generating the opportunity for consolidation. Customers (for
example a contractor or an industrial user) are looking to lower their
cost of doing business. Everyone has that pressure. Customers are
asking, " instead of buying from 18 diff erent sources, how can I bring
that cost down?'' So I think the channel is responding to that- and that
is where you're starting to see the complementary products coming
together: for example electrical controls coming together with HVAC
12
Canadian Electrical Wholesaler JUNE 2014
www.electricalwholesaler.electricalindusrty.ca
http://www.electricalwholesaler.electricalindusrty.ca
Electrical Industry Roundtable 2014

Table of Contents for the Digital Edition of Electrical Industry Roundtable 2014
