Electrical Distributor Profit Margins Highest Since 1997, with Sales also on the Rise


The electrical distribution industry’s financial performance levels continue to improve, according to a recently released report from the National Assn. of Electrical Distributors ( NAED ). The 2005 PAR Highlights , in its third consecutive year, tracks financial growth among NAED members.

The Performance Analysis Report (PAR) is a benchmark for electrical distributor operations. Results profiled in the 2005 PAR Highlights are based on 2004 financial survey data of 166 participating NAED distributor members throughout the U.S. Findings are broken down in two categories: “typical” and “high profit.” Nearly all figures provided in the report are medians.

Signaling a continued upward trend for “typical” distributors was an increased net profit margin that grew from 1.3% in 2003 to 2.1% in 2004. While margins have increased during the last three years, this level was last achieved in 1997. Profit margins for “high profit” distributors increased from 3.5% in 2003 to 4.6% in 2004.

The PAR Highlights also includes a five-year trend analysis of key ratios to help distributors improve and grow their business. Additional data revealed increases in sales volume, return on net worth and inventory turnover. For example, sales growth for the “typical distributor” showed an increase of 16.5% compared to 2.3% in 2003 data.

Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
How to use IPD; 2017 Commissioning Giants; CFDs and harmonic mitigation; Eight steps to determine plumbing system requirements
2017 MEP Giants; Mergers and acquisitions report; ASHRAE 62.1; LEED v4 updates and tips; Understanding overcurrent protection
Integrating electrical and HVAC for energy efficiency; Mixed-use buildings; ASHRAE 90.4; Wireless fire alarms assessment and challenges
Power system design for high-performance buildings; mitigating arc flash hazards
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Commissioning electrical systems; Designing emergency and standby generator systems; VFDs in high-performance buildings
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me