With 2020 now thankfully in the rear-view mirror, what does 2021 have in store for the
Electrical Equipment and Parts sector of the economy? While the stock market is not necessarily an indicator of economic conditions, it can be a harbinger of growth to come. The financial markets have been showing electrical equipment & parts distribution performing at or near the top of the industrial sector.
Source: NYSE
Electrical Distributor Inventory Reduced in Q3 2020
Companies like Rockwell Automation (Allen Bradley), Hubbell, General Electric, Siemens, Schneider Electric (Square D), ABB and Eaton are a handful of flagship names to watch.
This year has been especially challenging for electrical distributors who supply production facilities with electrical parts, especially when it comes to delivery lead times. According to one study done by
Electrical Trends, almost 50% of electrical distributors reduced their inventory during Q3 this year. The report goes on to say that distributors stock reorder business has declined. This almost certainly complicates and delays lead times.
Motor & Control Parts - “Workhorses of Industry”
Critical electrical parts include those used in electric motor
s and controls, often considered the workhorses of industry. Electrical parts replacement companies like REPCO, based in Marlton, NJ, help bridge the supply chain gap between manufacturers and electrical distributors. REPCO maintains a consistent, large inventory of carbon brushes, contact kits and operating coils to help solve electrical distributors’ inventory challenges.
Repco’s control offering spans 27 control manufacturers covering current and obsolete model series and brushes for over 30 motor manufacturers. Repco has been providing its “need-it-now” replacement parts solution since 1976. Repco offers its own brand of
electrical contacts,
motor brushes and
control coils that are the equivalent of the manufacturers’ in performance, fit, form and function.
Electrical Equipment Manufacturer Gearing Up
Preparing for a reopening of the economy and demand for electrical parts, this month, ABB, a leading manufacturer of electrical equipment, announced in TED Magazine that it will expand its manufacturing facility in Hackettstown, NJ.
“This expansion will reduce delivery times..." according to plant manager Steven Wright. “That will allow us to boost our capacity to meet the demands of a growing market in the US, especially for critical needs.”
Inventory management is an ongoing challenge facing manufacturers and distributors. Looking forward, the New Year will be no different. REPCO is uniquely positioned to be a reliable source for suppliers needing electric motor and control replacement parts to support the recovery in 2021.
