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News

Industry News…National Association of Electrical Distributors'

December 1, 2006

National Association of Electrical Distributors’ most recent Quarterly Sales Change Expectation Survey revealed that sales growth for electrical distributors slowed in the third quarter of 2006. Of distributors surveyed, 80.6% estimated sales growth for the third quarter ended Sept. 30 - a drop from the last four quarters in which 85.5% to 89.9% reported sales increases. Third quarter sales increases of 10% or more were reported by 48% of those surveyed, a decline from the second quarter’s record 59.4%. The number of distributors seeing sales declines grew to 12.8% from 8.8% in the second quarter. Distributors predict the slowdown in growth will continue in the winter months, as 70% forecast sales growth in the fourth quarter now under way. Distributors are split between optimism and pessimism: 26.4% look forward to sales growth above 10%, and 26.4% expect flat or declining sales.

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