press release - Rexel Holdings USA

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BUSINESS
WHAT YOUR BUSINESS
CAN DO WITH 140
CHARACTERS OR LESS
FEATURE
A SOLUTION FOR THE
ENERGY SOLUTIONS
BUSINESS
the ELECTRICAL DISTRIBUTOR
MEN
WITH A
Mission
A UNIQUE
BUSINESS
MODEL
DRIVES
GROWTH
AT MES
Mike Blanchard
VICE PRESIDENT
OF SALES & MARKETING
Mark Johnson
VICE PRESIDENT
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feature STORY
FROM CUTTING EDGE TO COMMONPLACE:
GREEN IS EVERYWHERE
FIVE ELECTRICAL DISTRIBUTORS LOOK BACK ON HOW “GOING GREEN”
HAS MOVED FROM NOVEL TO NORM AND CONTEMPLATE THEIR FUTURE
ROLE AS STEWARDS OF ENERGY EFFICIENCY. By Susan Bloom
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Nov. 11 • the ELECTRICAL DISTRIBUTOR
© CLAUDELLE GIRARD/ISTOCKPHOTO
Ask Frank Millard if his 91-year-old distributorship—Linden, New Jersey-based
Turtle & Hughes—was focused on green business and energy efficiency back in 1968 when he
first joined the company, and this COO will respond with an emphatic “No.” Times were different
then, and the country was too. In the midst of war, political upheaval, and social revolution, green
products and practices were embraced by only a small slice of early adopters and had not yet entered mainstream consciousness. But as the nation would soon face a series of energy crises, economic recessions, and a growing environmental awareness over the ensuing decades, green business would become a new standard and the electrical distribution industry a mirror of America’s
changing times. Here, we talk with five in the industry about past practices and future prospects.
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Participating in this article are:
• Rick Eckman, market manager,
Border States Electric (BSE), Fargo, N.D.
Established in 1952 in Grand Forks,
N.D., BSE has 58 branches in 13 states.
• Mike Lakin, vice president of
sales, Stokes Electric, Knoxville, Tenn. A
family-owned and operated electrical
supply distributor, Stokes was founded
in 1933 by A. D. Stokes and has four
branches in East Tennessee.
• Scott Munro, CEO, Munro Distributing, Fall River, Mass. Founded in
1946 by Munro’s grandfather, Alexander Munro, the company operates 11
branches (in California, Massachusetts,
Rhode Island, New Jersey, and New
York).
• Kelly Vliet, vice president/sales
manager, Medler Electric, Alma, Mich.
Established in 1918, Medler grew from
humble beginnings of just one location
to 14 locations today.
• Mitch Williams, senior vice presi-
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the ELECTRICAL DISTRIBUTOR • Nov. 11
dent and CEO, Gexpro, Shelton, Conn.
Gexpro, which is part of Rexel Holdings
USA, has been in business since 1904.
Q: When would you say your distributorship first began taking a
green approach and why did you
start?
Lakin: Stokes was selling green
before it was used in that context, but
our true emphasis on green business
started when Philips introduced its
ALTO fluorescent solution. This new
product really helped push Stokes into
using the word “green.”
Vliet: In the 1980s we began pursuing energy audit concepts to drive sales
of energy-efficient products to specific
end-users, providing value-added benefits by showing energy reduction and
ROI.
Munro: We did our first green energy
job in 1989 when the utility on Cape
Cod [Mass.] donated the project to 14
schools in the PlymouthCarver school system. Back
then, the hot ticket was T12
electronic ballasts and 34W
lamps, which seems funny
now. That job, however, came
during a serious recession in
the Northeast. Being a very
small distributor at the time,
we wrestled with a lot of issues concerning the size of
the job and our unfamiliarity
with these “newfangled”
lighting products. But that
job really helped propel us
into the new world of green
lighting products.
Eckman: We started our
green efforts when alternative
products started becoming
available (such as soybean oil
for utility transformers), when
RoHS-compliant products
began to surface, and when
lower-wattage lighting came
into the market.
Williams: Our green
approach started back in the
1970s with our entry into the
solar market. Gradually we
continued increasing our
product offerings as efficient
lighting technology progressed in the
1980s. We were one of the first distributors to sell low-voltage lighting control
including light-sensing devices made by
GE at the time. However, there was a
huge thrust in the 1990s when the electronic ballast was introduced. That was a
game changer for us and for the entire
industry. Looking back, I think we understood early on both the importance
and the potential of the green marketplace. We recognized there was an opportunity that provided a broader base
of solutions while at the same time having a positive impact on our business.
Q: To help reflect your distributorship’s green evolution, please
share some of the green products and
services you offered or green-related
activities you pursued through the
last several decades.
Lakin: The 1960s and 1970s were before my time in the industry, although
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we did have many walk-in customers
at that time requesting the most efficient HID lights—not trying to be green,
I suspect, but rather growing green
product. But in the 1980s and 1990s, we
were promoting Philips ALTO lamps,
CFLs, electronic ballasts, and occupancy
sensors.
Vliet: In the 1970s, the only energyrelated attention paid here was related
to the fact that a gallon of gas, which
had cost less than a quarter, shot up in
price overnight and everybody lined up
to purchase gas. In the 1980s, any facility with linear fluorescent lighting became a target for energy-efficient retrofit
proposals to high-pressure sodium. We
definitely saw a huge opportunity to
convert nearly every gymnasium in
Michigan. Exterior lighting conversions
from mercury vapor to high-pressure
sodium were an opening to upgrade
lighting. Compact fluorescent lighting
was another offering that allowed
Medler Electric to drive energy retrofits. By the 1990s, utility incentives drove
business through ESCOs in industrial
and institutional markets and boosted
sales of reduced-wattage linear fluorescent lamps and ballasts. We saw an opportunity with energy audits to open
new doors and grow the market, so we
created an energy specialist position to
provide energy audits and offer products
to reduce energy consumption.
Munro: In 1989, I remember we purchased all the available ballast inventory
from EBT and Triad, which were the big
names at the time. As time went on,
utilities in Massachusetts and the
Northeast got more involved in rebate
programs and Munro tried to be on the
forefront of these programs; through the
early 1990s, this newfound business
helped Munro grow when others were
having a hard time. Over time, our
green business became known as our
“energy” department. During the late
1990s and early 2000s, our business
was about a 50/50 split between traditional construction products and
energy-saving products.
Eckman: In the 1960s and 1970s, we
were selling mercury vapor and highpressure sodium lighting, as well as
F34T12 fluorescent lamps and incandes-
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cent dimmers. In the 1980s, we moved
these energy-efficient products, and
to metal halide lighting, T8 fluorescent
high-bay T8 and T5 fluorescent systems
lamps, and fluorescent dimmers. In the
have led the charge in recent times.
1990s, it was soybean or edible seed oil
Over the coming years, clean energy
transformers, quality electronic ballasts,
from wind generation and solar solufluorescent dimming ballasts, and dimtions, along with LED, induction, and
ming systems.
fluorescent lighting technology, as well
Williams: In the 1960s and 1970s,
as the ability to offer financial services
solar was gaining popularity on the
will become increasingly important to
West Coast and high-pressure sodium
our business. Sustainability is the driver
lighting was replacing fluorescent techtoday and beyond.
Munro: In the past few years, the
nology. During the 1980s, we were
green side of the business has far outretrofitting with fluorescent parabolic
paced the construction side, although
fixtures and reducing the number of
both have grown. Munro entered the
lamps; also, low-voltage lighting consolar market about four years ago and
trol, including first-generation daylight
we’re starting to see some benefits, alsensing, was brought to the market by
though it’s a very
GE Wiring Devices. In
competitive climate
the 1990s, we were
—not so much from
promoting electronic
Rick Eckman
other distributors,
ballasts and sensing.
MARKET MANAGER,
BORDER STATES
but from specialty
ELECTRIC
FARGO, N.D.
Q: Please share the
solar companies.
types of products, serEckman: In the
vices, and activities
past
decade, we foMike Lakin
VICE PRESIDENT
you’ve been involved
cused
on CFL and
OF SALES, STOKES
ELECTRIC
with recently and
T5 fluorescent
KNOXVILLE, TENN.
where you’re headed
lamps, ceramic
over the next five to
metal halide and
10 years.
induction technolScott Munro
CEO, MUNRO
Lakin: In the past
ogy, LEDs, CFLs,
DISTRIBUTING
FALL RIVER, MASS.
decade, we’ve been
and LED dimmers,
emphasizing T5 fluoas well as solar and
rescent high-bays and
wind opportunities.
Kelly Vliet
VICE PRESIDENT/
LED lamps and fixLooking ahead,
SALES MANAGER,
MEDLER ELECTRIC
tures. Looking ahead,
we’ll be seeing an
ALMA, MICH.
Stokes is seeing more
increasing number
specification in the area
of lighting upgrades
Mitch Williams
of LED lamps and fixusing highly effiSENIOR VICE PRESIDENT
AND CEO, GEXPRO,
tures. Retail customers
cient fluorescent,
A DIVISION OF REXEL
SHELTON, CONN.
are asking questions
induction, and LED
concerning LED lamp
technology, along
applications and how
with occupancy senthis will save them
sors, dimmers, and
money over time on their electric bills.
daylight harvesting. We also expect
Vliet: Since 2000, we again added
growth in the use of power control deanother energy specialist to drive
vices for phantom loads, water coolers,
turnkey energy service business based
and vending machines and the inon leads generated by our existing sales
creased popularity of solar, wind, and
force. We routinely audit educational,
submetering systems.
Williams: Since 2000, we’ve been
industrial, and government facilities and
promoting LED lighting, solar and wind,
provide analysis of footcandle measuresensing, motors, drives, and managements and payback and ROI opportuniment software and hardware. As a functies on upgrades to help educate endtion of the current recession, we needed
users. Utility rebates have provided
to find market segments that would
additional incentives to drive sales of
Nov. 11 • the ELECTRICAL DISTRIBUTOR
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feature STORY
continue to develop and offer long-term
distributor on the front end of the
prospects for growth. We considered
decision-making process. The
the green market a strong opportuprofitability on these projects is
nity for us largely due to financial
good, but probably no differincentives made available by
ent today than it was 20 to
the government and utilities.
30 years ago.
Vliet: Education is
Today, we’re increasing our
the key component; do
emphasis on renewables
your homework and
and most recently the
investigate all options.
electric vehicle market.
Munro: We beWe see the wind market
lieve that products
growing as products
will continually be
become more efficient
introduced to the
and less obtrusive, with
w years, the green side
e
f
t
s
market that will proa sweet spot in smaller
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ct ion
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ings and
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side, a
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commercial
mercial market
opportunity to
and very little on the
distributors.
The
residential side. The
M
,
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O
n
E
r
C
o Distribu
t Munro,
ting
key to success is
game changer for our
-Scot
staying on the
industry is solar; based
forefront of the
on rapidly dropping
new technologies and marketing
prices and increased
form of fewer greenhouse gases, imyour company so it’s in a position to
flexibility in the technology, we see
take advantage of new opportunities.
enormous potential for solar in our busi- proved air quality, and avoiding the
Eckman: It’s never too late to do the
need for new generation plants; comness. Electric cars and charging stations
right thing for the environment, save
munities are increasingly wanting to do
are a very new development for us.
energy, and help your customer’s botthe right thing for the environment.
That’s definitely a market where we see
tom line.
Some of the largest drivers have been
potential, but it will need some evoluWilliams: The active green apthe Kyoto Protocol, EPAct, EISA, LEED,
tion to reach maturity.
proach we’ve taken has required us to
Energy Star, and ASHRAE 90.1.
Q: To what do you attribute the
Williams: At the end of the day, it
change the way we do business in some
growth in demand for green prodall comes back to finances. Without the
areas; for example, education has beucts and services over the years?
incentives and rebates, this market
come increasingly important in our
What factors are driving that market
would grow much more slowly and take business. We advise all distributors to
today?
be open to change and to investing rethat much longer to achieve its energyLakin: The largest influence over the
efficient objectives, so the investments
sources in training—not just training
past 10 years has been the cost of enthat government and utilities have made of staff, but also training for customers
ergy. Customers have always been inin incentives have gone a long way toon the latest technology, products, and
terested in being more efficient and are
ward helping us achieve the scale for a
solutions. I’d say that overall, it’s an
always looking for ways to save money
exciting time to be in this business—
viable business. As the market matures
to add to the bottom line of profitability. over time, costs come down to parity
demand was high for energy-efficient
The current market is driven more than
and then we no longer need the incenproducts 20 years ago, but the products
ever before by government-sponsored
tives; we just need the push up-front.
and solutions were limited. Today, detax rebate programs.
mand is still very high, but there’s so
Vliet: Influential factors include the
Q: Any final thoughts about your
much more innovation out there to
distributorship’s green evolution/
threat of global warming (driving govmeet it, and it’s a profitable business
position or any advice for other disernmental regulation), utility incentives,
segment—one where we can offer solutributors on their approach to today’s tions that are priced right and that offer
a declining economy in late 2008 to
green market?
2009, increased energy costs, and the
customers a reasonable to excellent reLakin: In many ways, the green mar- turn on investment. ■
need to save energy by reducing costs
ket is like any new market within the
to enhance company profitability.
Eckman: Factors include greater
Bloom is a 20-year veteran of the lighting
electrical industry—profitability of projawareness of the benefits of energy
ects depends solely on the customer and and electrical products industry. Reach her
reduction on the environment in the
at [email protected].
how well the project is managed by the
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the ELECTRICAL DISTRIBUTOR • Nov. 11
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