Electrical Industry Roundtable 2014 - 14

CHAMNEY: I think you're going to see consolidation, as John was
saying. Large distributors will try to strengthen in-not necessarily
geographic areas-but in various expertise. Every time that happens,
new distributors spring up. We see it all the time-especially in the
Ontario and Quebec markets, particularly around the GTA. Whenever
there is a major acquisition, there are at least two or three new ones
that start up. However, they may or may not be specialty. Secondly,
because of the consolidation of power of manufacturers, smaller
manufacturers are forced to fi nd a place to go to
market. And these little independents create a
chain event.
BERCIER: I don't think we'll stop seeing
acquisitions, but in terms of more branches in
places for markets like up north (mining) and
in other re mote areas. For example, look at
FuturPlus-they used to have a few distributors
and now they've grown to include more in the last
12 months. I see a lot of movement with branches
up north, other than that it might be in other
territories...
Murray Chamney.
BRANSCOMBE: Th ere will defi nitely be a mix of both. I don't think
we will see a lot of new start-up full-line electrical distributors but
rather companies targeting and growing niche markets who are
looking to add value and bring something diff erent to an area, that's
where you're going to start to see smaller branches pop-up. Depending
on the success of those branches, you'll start seeing acquisitions from
companies that want to get to those niche markets faster. Also, a lot of
companies are investing in technology. I'm not sure which one is the
right one yet, but I think we'll start seeing winners who are developing
and implementing successful technology portfolios - the companies
that fi gure this out the best will be very attractive commodities.
SENCICH: Th e other challenge is fi nding qualifi ed people. We were
talking earlier about the remote areas in Canada. Fewer prospects
want to work in remote areas and once you fi nd somebody, the cost
can be higher than larger more populous centres.
KERR: In a more general way, when companies are required to have
growth beyond organic growth, is that going to foster more
consolidation?
14
Canadian Electrical Wholesaler JUNE 2014
www.electricalwholesaler.electricalindusrty.ca
http://www.electricalwholesaler.electricalindusrty.ca
Electrical Industry Roundtable 2014

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