What is Happening in the Electrical Industry?
The National Association of Electrical Distributors (NAED) hosts three main conferences each year, and our team was thrilled to attend the Eastern Regional Conference in Tampa Bay, Florida last week. There were several key speeches, business conversations, and networking happy hours conversations that provided valuable insight. Our team walked away with three major takeaways regarding the climate of the industry. The three topics everyone shared were: Navigating Tariffs, Attracting New Talent to the Industry, and the Frictionless Sales Approach is becoming more prevalent.
Navigating Tariffs:
Elections have passed through another cycle, and we now have more clarity on the types of policies that will be implemented during this term. The policy with the most immediate impact for Electrical Distributors and Manufacturers are the proposed tariffs. Businesses were bracing for tariffs to hit China, but most were a little surprised that it could significantly impact Canada and Mexico as well. This is a major disruption to projects that have competitive bidding processes throughout the electrical industry – it makes term negotiations more important, may include contingency pricing for change orders, and affect supply chain. However, there was an overwhelming stance that executives are “cautiously optimistic.” That is correct, leaders for distributors are not thrilled to have a few more hoops to jump through, but the Covid-era of navigating unforeseen circumstances have prepared businesses to be more dynamic at embracing these impacts. For example, many manufacturing plants opened new facilities out of China due to shutdowns and established presences in Vietnam, South Korea, India, or areas within Latin and South America. Optimism comes from the fact that while Canada and Mexico were also big beneficiaries of manufacturers dispersing their operations, there is more flexibility now that just a few short years ago.
Recruitment Landscape:
The electrification of the USA is significantly impacting recruiting in the electrical manufacturing and distribution industry by driving a surge in demand for skilled workers, particularly electricians and electrical engineers. This demand stems from the need to support expanding infrastructure, such as EV charging stations, renewable energy systems, data centers, and grid upgrades, all of which rely heavily on electrical manufacturing and distribution products like transformers, switchgear, and power distribution equipment. As a result, the industry faces a dual challenge: a growing need for talent and a persistent shortage of qualified workers.
The increased production of electrification-related equipment has heightened the need for products, which seeps into every avenue of distribution. However, the industry struggles with recruitment due to an aging workforce, with many experienced workers retiring, and a limited influx of new talent. This gap is compounded by competition for skilled employees across related sectors.
The electrical industry is evolving rapidly, with tariffs, recruitment challenges, and frictionless sales strategies shaping the future. While these shifts present hurdles, they also create opportunities for businesses to adapt, innovate, and stay ahead of the curve. The key to success lies in proactive planning, navigating policy changes with agility, attracting fresh talent to sustain growth, and embracing digital sales solutions to enhance efficiency.
At GRN Coastal we understand these challenges and are here to help businesses in the electrical distribution industry build strong teams that drive success. Whether you’re looking to attract top talent, optimize your workforce strategy, or gain insights into industry trends, our expertise can support your growth. Let’s start a conversation—reach out to us today to see how we can help you stay competitive in this dynamic market.
