Top 200 Respondents Say the Worst is Over

Like many if not most U.S. businesses, many respondents to Electrical Wholesaling’s 2010 Top 200 listing had to make some painful cuts in staff to get through the recession.

Several distributors had to lay off between 15 percent and 25 percent of their employees, and many others said they did everything they could to hang onto key employees until business improved. In addition to staff cuts, other profit-enhancement measures included cutting travel and business expenses, wage freezes, eliminating 401K matches and closing branches.

However, the general tone of the responses is that the worst is over, and that despite the recession some companies continued to make strategic investments in new markets or in personnel with desirable skill sets or market expertise.

Burke Herring, president, Womack Electric Supply Co., Danville, Va., is seeing some light at the end of the tunnel. “The free fall has ceased and there are many positive signs, but the effects are still being felt,” he said. “Residential is showing some improvement and there are opportunities in the energy sector, such as lighting retrofits and anything related to energy efficiency.”

He says Womack Electric Supply got through the downturn by strategically trimming expenses and inventory, only cutting personnel where performance was an issue, and by watching accounts receivables “like a hawk.” Herring is encouraged by the growth of green sales and said the company recently added a sales specialist for energy-efficient products and systems.

During the recession, many other Top 200 electrical distributors renewed their commitment to selling energy-efficient electrical products, and several electrical supply houses launched new energy divisions and/or added staff in this area. Doug Borchers, vice president of Dickman Supply Inc., Sidney, Ohio, said the company “attacked the green market full force with good success.” Dickman’s investment in its new energy division called “Green Energy Solutions,” appears to be paying off, as Borchers says Dickman Supply has seen its sales more than double in this area so far this year.