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<strong>Technical</strong> <strong>solutions</strong> <strong>provider</strong> <strong>to</strong> <strong>electrical</strong> industry professionals<br />

2008–2009


<strong>Sonepar</strong> <strong>USA</strong><br />

Companies<br />

Contents<br />

4 2008 has been a contrasted year, Paul Klasing<br />

6 2008 Financials, Kathy Rusko<br />

8 Networking Events<br />

10 Expanding Our Reach<br />

12 2008 Key Cus<strong>to</strong>mer Projects<br />

14 <strong>Sonepar</strong> <strong>USA</strong> Organization<br />

16 Leveraging Technology<br />

18 BlueWay<br />

20 Merchandising<br />

21 Son@cademy<br />

22 Vendor Relations<br />

23 Logistics<br />

24 <strong>Sonepar</strong> Worldwide


2008 has been a contrasted year<br />

$3.3 Billion US Sales revenue<br />

240 branches<br />

0.2<br />

0.6<br />

Paul Klasing<br />

President<br />

<strong>Sonepar</strong> <strong>USA</strong><br />

0.7<br />

0.8<br />

0.9<br />

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008<br />

1.1<br />

1.4<br />

2.4<br />

2.9<br />

3.3<br />

In 2008, our associates successfully<br />

developed sales in new market sec<strong>to</strong>rs<br />

despite the continued decline of the<br />

residential market.<br />

The first three quarters of 2008 show a<br />

sales increase of 13%, but in the fourth<br />

quarter our sales grew only 2%, limiting<br />

our yearly progression <strong>to</strong> a solid 10%,<br />

compared <strong>to</strong> 2007.<br />

Overall, our associates did a great job in<br />

developing our sales–—delivering a 2%<br />

organic growth and a 4.5% increase, if<br />

we include our new branches.<br />

<strong>Sonepar</strong> <strong>USA</strong>’s growth has been supported<br />

by several acquisitions:<br />

• ESSCO, Ariz., which covers Arizona<br />

and Southern California<br />

• Tennesco, Tenn., and Equity Utility Service,<br />

Ga., joined Stuart C. Irby, Miss.<br />

• Superior, Wis., joined Viking Electric, Minn.<br />

• Robson Electric Supply, N.Y., joined<br />

Friedman Electric, Pa.<br />

• Mountain Vista, Ariz., joined ESSCO, Ariz.<br />

We are pleased <strong>to</strong> welcome their associates<br />

in<strong>to</strong> the <strong>Sonepar</strong> family of businesses.<br />

<strong>Sonepar</strong> <strong>USA</strong> revenue pro forma for 2008<br />

is $3.3 billion, and we would like <strong>to</strong> thank<br />

our former president Tony Burr for his<br />

legacy in developing our substantial<br />

presence in the US <strong>to</strong>day.<br />

2008 was a major stepping<br />

s<strong>to</strong>ne for <strong>Sonepar</strong> <strong>USA</strong><br />

In May 2008, <strong>Sonepar</strong> <strong>USA</strong> celebrated 10<br />

years in the US, highlighting an average<br />

annual sales growth of 67% since 1998.<br />

For the first time, 350 <strong>Sonepar</strong> <strong>USA</strong><br />

associates from 11 operating companies<br />

gathered in Philadelphia, Pa., <strong>to</strong> network,<br />

share best practices, and understand<br />

the group’s strategy and unique model.<br />

The key objective of the convention was<br />

<strong>to</strong> create awareness of the large group<br />

<strong>Sonepar</strong> <strong>USA</strong> associates belong <strong>to</strong> and<br />

the initiatives each <strong>Sonepar</strong> business is<br />

successfully driving. New technologies,<br />

the green business wave and the<br />

electronic business are also incredible<br />

competitive advantages that we have <strong>to</strong><br />

focus on. In 2009, these new opportunities<br />

will determine our ability <strong>to</strong> strengthen<br />

our market performance.<br />

During the convention, there was a special<br />

emphasis on:<br />

• Technology is key as a new way for<br />

cus<strong>to</strong>mers <strong>to</strong> access information<br />

• The importance of identifying new services<br />

and products in the market<br />

• How eBusiness has become a must <strong>to</strong><br />

offer the iPod generation<br />

The downturn of the last quarter of 2008<br />

and the dramatic decrease in copper value<br />

illustrates more accurately the emergency<br />

we face in doing our business differently.<br />

Whenever I get the opportunity <strong>to</strong> travel<br />

<strong>to</strong> our operating companies, I see that we<br />

have talented and motivated associates who<br />

are very knowledgeable of their cus<strong>to</strong>mers,<br />

products and services. We have a lot<br />

of opportunities <strong>to</strong> grow both sales and<br />

earnings, but <strong>to</strong> win market share we must<br />

address these opportunities with urgency.<br />

2009 is the starting point<br />

of new challenges for our<br />

distribution business<br />

This year will be a difficult one for our<br />

business and for the global economy.<br />

The first two months already show a<br />

decrease of our sales compared <strong>to</strong> our<br />

2009 budget and 2008 results. It is time <strong>to</strong><br />

look at the way we do business in terms<br />

of efficiency, productivity and costs. At the<br />

same time, the “stimulus package” recently<br />

passed offers a large scope of opportunities<br />

in different markets like transportation,<br />

energy savings, retrofit for public buildings,<br />

schools, healthcare, federal buildings, water<br />

and environment. A stimulus package of<br />

almost $70 billion will directly impact the<br />

<strong>electrical</strong> industry.<br />

The green building trend of the market<br />

is a reality and by 2013, green products<br />

and services should represent 60% of all<br />

projects in office, residential, government,<br />

education and healthcare buildings. The<br />

good news is that <strong>electrical</strong> supplies and<br />

building au<strong>to</strong>mation systems are part of the<br />

most-used green products in construction.<br />

Our <strong>Sonepar</strong> BlueWay programs have<br />

prepared us for this market evolution.<br />

Finally, even before the slowdown began,<br />

value for money had again become a<br />

strategic imperative. Business purchases<br />

depend on low costs <strong>to</strong> gain a competitive<br />

advantage; therefore we always look for<br />

value when we buy equipment and services.<br />

As distribu<strong>to</strong>rs, we have <strong>to</strong> develop and<br />

promote innovations in products and<br />

services that will add value <strong>to</strong> our brands.<br />

We all will need <strong>to</strong> move aggressively <strong>to</strong><br />

drive sales, gross margins and productivity<br />

<strong>to</strong> protect our profits, which are necessary<br />

for continued growth opportunities for each<br />

associate of <strong>Sonepar</strong> <strong>USA</strong>.<br />

5


2008 Financials<br />

Kathy Rusko<br />

Sales Breakdown<br />

By Cus<strong>to</strong>mer<br />

Others 5%<br />

Utility 13%<br />

West 7%<br />

Midwest 13%<br />

By Region<br />

NorthEast/<br />

Mid-Atlantic 33%<br />

CFO<br />

<strong>Sonepar</strong> <strong>USA</strong><br />

By Product<br />

Cable and Wire 26%<br />

<strong>Sonepar</strong> <strong>USA</strong> experienced profitable<br />

sales growth of 13% through the first<br />

three quarters of 2008, but the last quarter<br />

was severely impacted by the economic<br />

slowdown and the copper collapse, whose<br />

related products lost almost 60% of their<br />

pick value, eroding profits, margins and<br />

asset values across operating companies.<br />

We anticipate a challenging 2009 as most<br />

markets are still experiencing compression<br />

in the residential sec<strong>to</strong>r, and declining growth<br />

in the commercial and industrial sec<strong>to</strong>rs.<br />

Thanks <strong>to</strong> the dedication of our associates,<br />

in 2008, <strong>Sonepar</strong> <strong>USA</strong> achieved its key<br />

financial targets:<br />

• Free cash flow increased 90%<br />

• Working capital is 11%<br />

• Balance sheet strengthened<br />

• Integration of six acquisitions<br />

Along with a strong and long-term<br />

sustainable commitment and the dedication<br />

of our associates, our financial targets<br />

were reached through improved<br />

standardized processes and functions,<br />

performed in a more integrated, efficient<br />

and cost effective manner.<br />

Continue <strong>to</strong> leverage<br />

our investments<br />

For the past four years we have focused on<br />

integrating key business activities and data<br />

utilizing a unique IT Platform.<br />

Our ongoing plan, driven by a team of<br />

experts, shows its efficiency through a<br />

process which allows conversions from<br />

existing legacy and stand-alone systems<br />

<strong>to</strong> an integrated platform, without any<br />

disruption of our daily business and<br />

cus<strong>to</strong>mer service.<br />

Together with our Business Intelligence<br />

initiative, <strong>Sonepar</strong> <strong>USA</strong> has a better<br />

business visibility <strong>to</strong> share data, work<br />

on best practices, enable efficiencies<br />

and create opportunities.<br />

In addition, our Shared Service Centers<br />

offer areas of efficiency in terms of:<br />

• Common products management<br />

• EDI capability with our cus<strong>to</strong>mers<br />

and vendors<br />

• Accounting and administrative activities<br />

Globally, our Shared Service Centers<br />

are key for <strong>Sonepar</strong> <strong>USA</strong> businesses <strong>to</strong><br />

constantly improve and offer the most cost<br />

effective access <strong>to</strong> markets, cus<strong>to</strong>mers<br />

and vendors.<br />

Last, but certainly not least, our Son@biz<br />

program is moving along for deployment<br />

in each of our businesses. Son@biz is a<br />

common electronic platform which allows our<br />

cus<strong>to</strong>mers <strong>to</strong> look for any product information<br />

and purchase online. Son@biz offers our<br />

companies their own branded website and<br />

marketing programs, and an enhanced<br />

user-friendly selling <strong>to</strong>ol. Cooper Electric<br />

online and Capital Lighting online offer their<br />

cus<strong>to</strong>mers new services for a better and<br />

easier shopping experience.<br />

Turmoil Presents<br />

Challenges and<br />

Opportunites<br />

In this challenging market and economic<br />

environment there is a great opportunity <strong>to</strong><br />

move faster and offer value-added services<br />

<strong>to</strong> our cus<strong>to</strong>mers.<br />

We are better positioned <strong>to</strong>day <strong>to</strong> reinforce<br />

our current relationships with cus<strong>to</strong>mers and<br />

discover new ways <strong>to</strong> offer them products,<br />

technologies and services beyond current<br />

offerings. While our overall goal is <strong>to</strong> take<br />

market share, <strong>to</strong>day’s climate and the future<br />

demands greater productivity and value,<br />

and we must move with urgency <strong>to</strong> take full<br />

advantage of these opportunities.<br />

Again, this hard economic environment is<br />

a great opportunity <strong>to</strong> look at our business<br />

differently—innovate and be creative.<br />

This is key for our success in the future.<br />

Industrial 15%<br />

Contrac<strong>to</strong>r 67%<br />

South 47%<br />

Electrical<br />

Products 44%<br />

Others 11% Tools 1% Lighting 18%<br />

4,400 associates 2% organic growth 10% <strong>to</strong>tal sales growth<br />

7


Events <strong>to</strong> Share Major Initiatives<br />

<strong>Sonepar</strong> <strong>USA</strong><br />

Celebrates 10<br />

years in the US<br />

Philadelphia – <strong>Sonepar</strong> <strong>USA</strong> celebrated<br />

10 years in the US with a networking event<br />

for over 350 associates from all operating<br />

companies. From May 1 – 3rd, 2008,<br />

<strong>Sonepar</strong> <strong>USA</strong> associates gathered<br />

in Philadelphia <strong>to</strong> share best practices,<br />

learn about future market trends and<br />

discuss major <strong>Sonepar</strong> <strong>USA</strong> initiatives.<br />

In just 10 years, <strong>Sonepar</strong> <strong>USA</strong> grew in<br />

revenue from $0 in 1998 <strong>to</strong> $1.4 billion in<br />

2004, and has doubled over the past three<br />

years <strong>to</strong> reach close <strong>to</strong> $3 billion at the end<br />

of 2007—making the US one of the largest<br />

countries within the <strong>Sonepar</strong> Group.<br />

In large part, this extraordinary growth is<br />

due <strong>to</strong> our associates’ passion <strong>to</strong> serve<br />

cus<strong>to</strong>mers and their company each and<br />

every day. It’s this passion that will keep<br />

<strong>Sonepar</strong> <strong>USA</strong> moving forward, and hence<br />

the theme of the convention was “Passion<br />

Drives Our Future.”<br />

<strong>Sonepar</strong> Strategy and<br />

Initiatives<br />

The three-day event included presentations<br />

on the company’s future strategy and<br />

initiatives, best-practice workshops, vendor<br />

booth visits, employee networking activities,<br />

and market trends through guest speakers.<br />

Create Awareness<br />

Workshops were conducted over the<br />

course of the convention by <strong>Sonepar</strong> <strong>USA</strong><br />

operating companies and experts from the<br />

industry, with content covering everything<br />

from energy savings <strong>to</strong> employee training<br />

practices <strong>to</strong> emerging LED technologies.<br />

These sessions allowed associates <strong>to</strong><br />

learn best practices and share experiences<br />

with their <strong>Sonepar</strong> <strong>USA</strong> colleagues, as<br />

well as create awareness of the new<br />

market trends, opportunities, and the<br />

different initiatives deployed by other<br />

<strong>Sonepar</strong> <strong>USA</strong> businesses.<br />

Understand market trends<br />

and challenges<br />

Sustainable development and <strong>Sonepar</strong>’s<br />

BlueWay Program were major focuses<br />

during the convention, and a number of<br />

vendors were on-hand <strong>to</strong> explain their<br />

BlueWay concepts, and how these<br />

products can help distribu<strong>to</strong>rs leverage<br />

the industry’s growing demand for<br />

sustainable business practices.<br />

Guest speakers shared their perspectives<br />

on market trends, multi-generational<br />

challenges and eBusiness. But the highlight<br />

of the entire event was Marie-Christine<br />

Coisne Roquette’s speech on the 10th<br />

Anniversary and her ambition for <strong>Sonepar</strong>.<br />

The presentations were well received,<br />

and offered associates practical, handson<br />

information <strong>to</strong> bring back <strong>to</strong> their<br />

respective branches.<br />

<strong>Sonepar</strong>’s 3rd<br />

International<br />

Convention<br />

Chicago – On September 29th, 2008, more<br />

than 650 associates from all over the world<br />

converged on Chicago for <strong>Sonepar</strong>’s 3rd<br />

International Convention under the theme,<br />

“On the move <strong>to</strong>gether!”<br />

The three-day event was devoted <strong>to</strong> three<br />

<strong>to</strong>pics—“People, Innovation, Ambition.”<br />

Presentations by <strong>to</strong>p management,<br />

discussions by guest speakers, reports<br />

from country organizations, networking and<br />

visits <strong>to</strong> a variety of booths all contributed <strong>to</strong><br />

the powerful momentum that characterized<br />

the conference.<br />

People<br />

Since the first <strong>Sonepar</strong> convention in 2001,<br />

the group has enjoyed sustained growth.<br />

<strong>Sonepar</strong> has broken in<strong>to</strong> new markets,<br />

raised profit margins and integrated<br />

additional companies. The group has<br />

also recently established new country<br />

organizations in Australia, Malaysia,<br />

Thailand and Singapore. It is through the<br />

strength of its people that <strong>Sonepar</strong> was able<br />

<strong>to</strong> grow and expand, and Marie-Christine<br />

Coisne-Roquette, <strong>Sonepar</strong>’s Chairman<br />

and CEO, stressed the importance of<br />

developing employees through International<br />

Committees and Son@cademy, <strong>Sonepar</strong>’s<br />

Training Program.<br />

Innovation<br />

Innovation exists in many forms, and<br />

Lorraine Bolsinger, Vice President of<br />

Ecomagination, explained how innovative<br />

thinking led GE <strong>to</strong> develop a green-energy<br />

approach. Her statements provided the ideal<br />

transition <strong>to</strong> a discussion on BlueWay, an<br />

innovation that means a great deal <strong>to</strong> <strong>Sonepar</strong>.<br />

Ambition<br />

Along with understanding the financial<br />

goals of the company, <strong>Sonepar</strong> associates<br />

will focus on three key objectives in 2009:<br />

Cus<strong>to</strong>mers, BlueWay, and Developing<br />

its People.<br />

Amazing Booth Exhibition<br />

Implemented by different groups within the<br />

<strong>Sonepar</strong> organization, the booths were<br />

meant <strong>to</strong> address three major objectives:<br />

Growing product and application segments;<br />

Learning about our newest colleagues,<br />

Hagemeyer, and their businesses; and<br />

Understanding how the Group’s initiatives<br />

support our business development.<br />

<strong>Sonepar</strong> <strong>USA</strong>’s operating company, Stuart<br />

C. Irby Co., made great contributions <strong>to</strong> the<br />

booth displays. Together with SLO/<strong>Sonepar</strong><br />

Finland, Irby developed panels, videos and<br />

presentations <strong>to</strong> explain the specifics of the<br />

Utility market.<br />

9


Eoff Electric Supply<br />

Eoff’s leadership in the green market allowed<br />

the company <strong>to</strong> gain market share despite the<br />

<strong>to</strong>ugh economic downturn. Energy savings is<br />

nothing new <strong>to</strong> Eoff. Since 1996, the company has<br />

had an Energy Savings Department dedicated<br />

<strong>to</strong> providing their cus<strong>to</strong>mers with cost effective<br />

<strong>solutions</strong> while using less energy and fewer<br />

natural resources. In 2008, Eoff coordinated<br />

projects saving over 2.5 million kWh for<br />

businesses and organizations in Oregon and SW<br />

Washing<strong>to</strong>n, and was named the Energy Trust of<br />

Oregon <strong>to</strong>p distribu<strong>to</strong>r, for the fourth time in a row.<br />

In addition, the commercial contrac<strong>to</strong>r business<br />

was strong for the first three quarters of 2008 and<br />

the industrial business remained steady helping <strong>to</strong><br />

drive sales and market share.<br />

Internally, Eoff launched several employee<br />

training programs <strong>to</strong> develop associates’<br />

product knowledge and their ability <strong>to</strong> serve<br />

cus<strong>to</strong>mers. BlueWay training, particularly in the<br />

areas of retrofits and energy-saving lamps, was<br />

implemented throughout all the branches. Also,<br />

a Professional Difference Initiative was deployed<br />

<strong>to</strong> all associates <strong>to</strong> increase their ability <strong>to</strong> work<br />

professionally with both cus<strong>to</strong>mers and vendors.<br />

In 2009, Eoff will celebrate 90 years of service<br />

<strong>to</strong> the Oregon and SW Washing<strong>to</strong>n community<br />

with a large cus<strong>to</strong>mer and employee<br />

event held in central Oregon.


Warren del Caribe<br />

In 2008, Warren’s market shares grew due<br />

<strong>to</strong> the company’s focus and investment in<br />

strengthening its position in each of the five<br />

major market segments the company serves:<br />

contrac<strong>to</strong>r/commercial & residential; industrial;<br />

lighting; datacom; and utility.<br />

Warren’s export business (WDC Miami) grew<br />

85% in 2008 and the company expects <strong>to</strong> see<br />

continued success in this business. WDC Miami<br />

relocated <strong>to</strong> a new facility, giving them more space<br />

and capability. A tailored logistics program was<br />

installed allowing WDC Miami <strong>to</strong> better manage<br />

overseas operations in Puer<strong>to</strong> Rico, Dominican<br />

Republic and Trinidad and Tobago.<br />

Warren also opened a new branch in Carolina,<br />

Puer<strong>to</strong> Rico in early 2008. Over 120 cus<strong>to</strong>mers<br />

were on hand opening day <strong>to</strong> view vendor product<br />

samples and literature, and enjoy food, music<br />

and prizes. In just a year, the new branch has<br />

already resulted in new business due <strong>to</strong> new<br />

cus<strong>to</strong>mer accounts in this area.<br />

Focused on medium <strong>to</strong> large contrac<strong>to</strong>rs<br />

in commercial, residential and industrial markets,<br />

Warren delivered a number of major projects<br />

including power distribution for a beer plant,<br />

lighting for national chain hotels, and various<br />

pump and filtration controls for the Water<br />

Authority. Warren has highly trained<br />

and knowledgeable individuals in the areas<br />

of Cable/Bulk, Lighting and Gear, which<br />

helped the company drive its continued<br />

growth in the Caribbean market.


Expanding Our Reach<br />

<strong>Sonepar</strong> <strong>USA</strong><br />

Expansion<br />

<strong>Sonepar</strong> <strong>USA</strong> expands<br />

on the West Coast<br />

<strong>Sonepar</strong> <strong>USA</strong> had been looking <strong>to</strong> expand<br />

on the West Coast for some time and in<br />

June 2008, the company made its move<br />

with the acquisition of ESSCO Wholesale<br />

Electric marking the first time <strong>Sonepar</strong><br />

has had a presence in Arizona and<br />

Southern California.<br />

Company<br />

Acquisitions<br />

Stuart C. Irby Co.<br />

welcomed two in 2008<br />

Stuart C. Irby Co. strengthened its footprint<br />

with two acquisitions—Tennesco in<br />

Chattanooga, Tenn., and Equity Utility<br />

Service in Marietta, Ga.<br />

Tennesco gave Irby an opportunity <strong>to</strong><br />

move in<strong>to</strong> Chattanooga’s commercial and<br />

industrial markets, where the company<br />

had only a utility presence for many years.<br />

Established in 1985, Tennesco’s location<br />

is close in proximity <strong>to</strong> Irby’s Regional<br />

Distribution Center in Nashville allowing<br />

Tennesco <strong>to</strong> expand their product and<br />

service offerings.<br />

relationships while serving adjacent<br />

geographic markets and this merger<br />

provided an opportunity for further<br />

expansion of Viking’s business in<br />

eastern Wisconsin.<br />

Friedman Electric expands<br />

<strong>to</strong> New York<br />

Friedman increased its footprint in the<br />

Northern Pennsylvania and Southern New<br />

York regions with the acquisition of Robson<br />

Electric Supply in Johnson City, N.Y.<br />

Over 40 long-established businesses from<br />

different geographical areas with specific<br />

product segments have joined <strong>Sonepar</strong> <strong>USA</strong><br />

in the past 10 years.<br />

1964<br />

1986<br />

1973<br />

Headquartered in Chandler, Ariz., ESSCO<br />

is a full-line commercial and residential<br />

contrac<strong>to</strong>r supply house with 15 locations<br />

including metropolitan Phoenix and Tucson<br />

markets as well as Orange and Riverside<br />

counties in California.<br />

Equity Utility Service was established in<br />

1966 and is a full-line s<strong>to</strong>cking distribu<strong>to</strong>r of<br />

utility products. This acquisition allowed Irby<br />

<strong>to</strong> fill a notable gap within the company’s<br />

geographical footprint.<br />

Robson is a single-branch <strong>electrical</strong> distribu<strong>to</strong>r<br />

with a separate lighting showroom and<br />

combined space of 20,000 square feet.<br />

Mountain Vista goes<br />

Full Circle<br />

1999<br />

1999<br />

1958<br />

1981<br />

1926<br />

1937<br />

2.4<br />

2.9<br />

3.3<br />

Founded in 1973, the original name was<br />

Electric Surplus Sales Co. In Oc<strong>to</strong>ber 1976,<br />

Don R.Tapia purchased the company and<br />

changed the name <strong>to</strong> ESSCO. Since then,<br />

he has developed the company in<strong>to</strong> a<br />

leading player in the Southwest market.<br />

Superior Electric Supply<br />

joined Viking Electric<br />

Founded in 1964, Superior is a single<br />

branch distribu<strong>to</strong>r located in Sheboygan,<br />

Wis., primarily serving the contrac<strong>to</strong>r and<br />

industrial markets. Viking and Superior<br />

shared many of the same key vendor<br />

Essco brought back Mountain Vista<br />

Supply from Ron and Joanne Wagner,<br />

who purchased the business from ESSCO<br />

in 1991. Since then, the Wagners developed<br />

a reliable and cus<strong>to</strong>mer-service oriented<br />

operation, now recognized as a leading<br />

<strong>electrical</strong> distribu<strong>to</strong>r in the Cochise County,<br />

Ariz., market.<br />

1938<br />

1961<br />

0.2<br />

1998 1999<br />

Sales Evolution (B$)<br />

1927<br />

0.6<br />

2000<br />

0.7<br />

2001<br />

1919<br />

0.8<br />

2002<br />

0.9<br />

2003<br />

1.1<br />

2004<br />

1.4<br />

2005<br />

2006<br />

2007<br />

2008<br />

11


2008 Key Cus<strong>to</strong>mer Projects<br />

Friday Night<br />

Lights<br />

NorthEast Electrical Distribu<strong>to</strong>rs–Eagle<br />

Electric Supply launched the second<br />

annual Friday Night Lights Community<br />

Sweepstakes, with co-sponsor WEEI Sports<br />

Radio. This contest gives cities and <strong>to</strong>wns<br />

throughout New England the chance <strong>to</strong> win<br />

a brand-new, fully-installed outdoor lighting<br />

system for their youth football league field.<br />

Friday Night Lights’ first year winner, Legion<br />

Field in Bridgewater, Mass., received its<br />

installed lighting system in Oc<strong>to</strong>ber 2008.<br />

Worth over $60,000, the state-of-the-art<br />

lighting system makes evening sporting<br />

events a new reality for the community.<br />

Friedman<br />

Upgrades<br />

Municipalities<br />

Friedman’s au<strong>to</strong>mation group worked with<br />

several municipalities <strong>to</strong> implement variable<br />

frequency drive control in their pumping<br />

stations. This increased the level<br />

of control the cities and <strong>to</strong>wns have over<br />

their processes and saved taxpayer money<br />

in the form of <strong>electrical</strong> savings.<br />

The company also served the OEM<br />

market helping <strong>to</strong> develop new and more<br />

cost efficient technologies by converting<br />

older systems <strong>to</strong> newer more compact<br />

and functional versions. Friedman<br />

supported the system integra<strong>to</strong>r market<br />

with product <strong>solutions</strong> that allow them <strong>to</strong><br />

be more efficient. By combining its product<br />

knowledge with an understanding of enduser<br />

product needs, Friedman was able <strong>to</strong><br />

give the cus<strong>to</strong>mer a more robust, readily<br />

available, and financially viable solution.<br />

Cus<strong>to</strong>m Design<br />

by NorthEast–<br />

Eagle<br />

NorthEast’s switchgear department provided<br />

over 1,000 feet of cus<strong>to</strong>m measured busway<br />

in an existing cell phone switching location.<br />

The four new runs traveled between two<br />

adjacent buildings built over 100 years<br />

ago and traveled five floors <strong>to</strong> provide<br />

emergency power <strong>to</strong> existing switchgear.<br />

All drawings for fabrication were done<br />

in-house and the fabricated busway was<br />

delivered within seven weeks.<br />

Additionally, NorthEast provided a $4M<br />

switchgear package for a project in Kuwait<br />

in which five power centers with pressurized<br />

enclosures were shipped overseas for<br />

a local Massachusetts specialty pump<br />

manufacturer. Fabrication, export packing<br />

and shipment were all coordinated by<br />

NorthEast–Eagle.<br />

Eoff Lights Up<br />

the Courts<br />

Eoff Electric retrofitted a tennis club in the<br />

Portland area with new, high-efficiency<br />

lighting. This project saved $14,619 per year<br />

for the cus<strong>to</strong>mer, with an additional $16,515<br />

in Energy Trust of Oregon incentives. The<br />

return on investment for the cus<strong>to</strong>mer was a<br />

<strong>to</strong>tal of 75.9%.<br />

Irby Shines Bright<br />

for Gulf Coast<br />

Utilities<br />

On September 2, 2008, Hurricane Gustav<br />

hit land near Ba<strong>to</strong>n Rouge, La. The s<strong>to</strong>rm<br />

brought heavy rains and winds in excess<br />

of 115 mph. When the power went out,<br />

Stuart C. Irby Co. was one of the first<br />

responders. With a disaster recovery<br />

plan already in place, Irby’s Ba<strong>to</strong>n Rouge<br />

facility had a supply kit on hand, complete<br />

with a genera<strong>to</strong>r, in the event the branch<br />

lost power. The kit also included portable<br />

lighting, ice chests, water coolers and other<br />

essentials <strong>to</strong> support recovery efforts.<br />

As damage and power outages from<br />

Hurricane Gustav spread, Irby employees<br />

worked around the clock supplying<br />

cus<strong>to</strong>mers with all the material they needed<br />

<strong>to</strong> res<strong>to</strong>re power <strong>to</strong> ravaged communities.<br />

When Hurricane Ike hit land just two weeks<br />

later, Irby was again posed with a difficult<br />

task. Although its Hous<strong>to</strong>n branch was<br />

spared from any serious damage, there<br />

were several large utilities in the Hous<strong>to</strong>n<br />

area that needed help res<strong>to</strong>ring power <strong>to</strong><br />

their cus<strong>to</strong>mers. Irby had over 100 people<br />

involved in the recovery effort over a<br />

three-week period.<br />

Volunteers came <strong>to</strong> the Hous<strong>to</strong>n branch from<br />

Irby locations all over the country. Several<br />

groups cycled through Hous<strong>to</strong>n, working<br />

16–18 hours a day, five–seven days per<br />

week. Irby maintained a 24-hour, sevendays-per-week<br />

operation for several weeks<br />

in order <strong>to</strong> service local Hous<strong>to</strong>n utilities<br />

as they worked <strong>to</strong> res<strong>to</strong>re power <strong>to</strong> the<br />

surrounding areas.<br />

With over 800 employees nationwide, Stuart<br />

C. Irby Co. was able <strong>to</strong> deploy over 20%<br />

of its work force <strong>to</strong> help with the recovery<br />

efforts in Hous<strong>to</strong>n and Ba<strong>to</strong>n Rouge. It is<br />

an example of the amazing teamwork and<br />

positive team spirit that exists at Irby.<br />

Brook uses<br />

LED lighting<br />

<strong>to</strong> brighten<br />

Chicago’s famous<br />

‘L’ train station<br />

platform<br />

In an effort <strong>to</strong> enhance and beautify the<br />

theater and shopping district of Chicago,<br />

the city enlisted the help of Brook Electrical<br />

<strong>to</strong> install colored LED lighting on a station<br />

platform of Chicago’s famous ‘L’ train.<br />

Brook worked with architects and Chicago<br />

Department of Transportation (CDOT) from<br />

design stage through coordination of LEDs<br />

and cus<strong>to</strong>m materials <strong>to</strong> complete this<br />

project. The platform did not have lights<br />

before, so the new colored LED lights<br />

improves the ambience of the area while<br />

providing the city with the latest in energyefficient<br />

technology. The platform was<br />

later filmed by the Chicago 2016 Olympic<br />

Committee for their marketing materials.<br />

Green is<br />

Business as<br />

Usual at Capital<br />

Lighting<br />

Lincoln Property Company (LPC), a property<br />

management and real estate consulting<br />

agency in the Washing<strong>to</strong>n, DC, area, has<br />

more than 29 million square feet under its<br />

control. Obviously, LPC can’t afford <strong>to</strong> take<br />

energy use lightly and partnered with Capital<br />

Lighting Supply (CLS) <strong>to</strong> offer its cus<strong>to</strong>mers<br />

the best in energy efficiency. CLS’s Energy<br />

and Maintenance Services division worked<br />

hand-in-glove with LPC <strong>to</strong> offer energy<br />

audits, the latest in energy-saving products<br />

and robust web-based recycling services.<br />

CLS provides that extra support <strong>to</strong> PLC <strong>to</strong><br />

make ‘green’ a reality instead of a gimmick.<br />

13


Crawford Electric Supply<br />

Crawford continues <strong>to</strong> grow its market share<br />

in Texas and Louisiana with the opening of three<br />

new branches. In 2008 Crawford’s immediate<br />

success prompted the company <strong>to</strong> move in<strong>to</strong><br />

a new, larger facility five miles from down<strong>to</strong>wn<br />

New Orleans. The new building is over 60,000<br />

square feet. The increase in space presents an<br />

opportunity <strong>to</strong> expand even further in the market,<br />

and allows Crawford <strong>to</strong> service a wide variety<br />

of cus<strong>to</strong>mers, from large commercial developers<br />

<strong>to</strong> smaller private contrac<strong>to</strong>rs.<br />

In addition, Crawford opened two new branches<br />

in Texas—New Braunfels and Conroe. Both<br />

locations are approximately 25,000 square feet<br />

and incorporate many green initiatives within the<br />

<strong>Sonepar</strong> BlueWay Program, including energysaving<br />

lighting controls throughout the office<br />

and counter areas, efficient fluorescent lighting<br />

units in the warehouse, and energy efficient air<br />

conditioning and heating units.<br />

Crawford understands staying close <strong>to</strong> cus<strong>to</strong>mers<br />

require more than just opening branches. In 2008,<br />

the company provided a number of value-added<br />

services for cus<strong>to</strong>mers, including training<br />

seminars. In New Orleans, Crawford hosted a<br />

four-hour seminar on the importance of <strong>electrical</strong><br />

safety around high voltage <strong>electrical</strong> systems. The<br />

seminar drew an attendance of 25 local industry<br />

professionals, including many <strong>electrical</strong> engineers,<br />

hospital and plant maintenance managers, and<br />

other qualified <strong>electrical</strong> personnel. The seminar<br />

allowed Crawford <strong>to</strong> showcase its services <strong>to</strong><br />

the <strong>electrical</strong> community, and further spread the<br />

Crawford name <strong>to</strong> the local industry professionals.


Stuart C. Irby Company<br />

Despite a <strong>to</strong>ugh economic environment,<br />

Stuart C. Irby grew 6.8% in revenues from 2007.<br />

Growth came in part from the expansion of Irby’s<br />

footprint in<strong>to</strong> Georgia and Tennessee, with the<br />

acquisitions of Equity Electric in Marietta,<br />

Ga., and Tennesco in Chatanooga, Tenn.<br />

Tennesco gave Irby an opportunity <strong>to</strong> move<br />

in<strong>to</strong> Chattanooga’s commercial and industrial<br />

markets, while Equity helped fill a notable gap<br />

within Irby’s geographical footprint.<br />

Additionally, Irby’s lighting division has also<br />

helped <strong>to</strong> drive sales and cus<strong>to</strong>mers are<br />

increasingly interested in energy saving <strong>solutions</strong>.<br />

In 2008, Irby increased its BlueWay lamp sales<br />

over 122% compared <strong>to</strong> 2007. Sales through large<br />

commercial end-users, retrofit successes,<br />

and cus<strong>to</strong>mized BlueWay counter displays<br />

jointly created by Sylvania and Irby drove<br />

this outstanding result.<br />

2008 was an award winning year for Irby.<br />

The company won TED Magazine’s “Best of<br />

the Best” Award in the Literature and Selling<br />

Tools category. Capital Lighting and Supply also<br />

received an award for Best Publication, making<br />

<strong>Sonepar</strong> <strong>USA</strong> the company with the most awards<br />

among large distribu<strong>to</strong>rs.<br />

In early 2009, Irby opened it’s second regional<br />

distribution center in Mobile, Alabama. Joined<br />

by more than 250 cus<strong>to</strong>mers and 40 vendor<br />

partners, Irby celebrated its new facility with<br />

training classes, facility <strong>to</strong>urs and product<br />

demonstrations. Irby’s new distribution center<br />

provides <strong>electrical</strong> products, services and project<br />

support <strong>to</strong> commercial, contrac<strong>to</strong>r and industrial<br />

branches in Alabama and surrounding states.


Les Williamson<br />

Don Tapia<br />

Scott Tonn<br />

Greg Hames<br />

Jeff Metzler<br />

Mike Wig<strong>to</strong>n<br />

Mike Wall<br />

Robert Friedman<br />

Mike Dudas<br />

Dick Coates<br />

Don Block<br />

John Hardy<br />

Mark Alspaugh<br />

President<br />

EOFF ELECTRIC<br />

Paul Leveaux<br />

Chris Butterfield<br />

CEO<br />

ESSCO<br />

President<br />

ESSCO<br />

Jodi Robinson<br />

Mark VanderLinde<br />

Michael Willhide<br />

Rick Wiley<br />

President<br />

VIKING<br />

ELECTRIC SUPPLY<br />

Doug Herberg<br />

Randal Artus<br />

Anthony Rongstad<br />

Jeffrey Wanner<br />

Stacy Stanslaski<br />

Rich Passmore<br />

CEO<br />

CRAWFORD<br />

ELECTRIC SUPPLY<br />

Larry Mallery<br />

Gigi Pace<br />

Curtis Enke<br />

David Watkins<br />

Jason Roberson<br />

President<br />

STUART C. IRBY<br />

Andy Waring<br />

Jim Cameron<br />

Doug Walo<br />

Michael Leech<br />

Edward Moak<br />

Jack May<br />

Kirk Hughes<br />

Lonny Thimjon<br />

Gary Bodam<br />

President<br />

BROOK<br />

ELECTRICAL<br />

DISTRIBUTION<br />

Jeffrey Byrd<br />

Gino Frigo<br />

Rick Gerbatsch<br />

President<br />

FRIEDMAN<br />

ELECTRIC<br />

Robert Statsman<br />

Jim Semyon<br />

Tom Pritchard<br />

President<br />

COOPER<br />

ELECTRIC<br />

SUPPLY<br />

Paul Leveille<br />

David Cooper<br />

Ronald Reffler<br />

Charles Colella<br />

Thomas Brady<br />

Brian Streiter<br />

President<br />

WORLD ELECTRIC<br />

SUPPLY<br />

Paul Leveille<br />

Bill Olson<br />

President<br />

NORTHEAST<br />

ELECTRICAL<br />

DISTRIBUTORS;<br />

EAGLE ELECTRIC<br />

SUPPLY<br />

Peter Jacobson<br />

Frank Marandino<br />

Shawn Mumma<br />

Patrick Blake<br />

President<br />

CAPITAL<br />

LIGHTING &<br />

SUPPLY<br />

Jean-Emmanuel Enaud<br />

Alan Rosenfeld<br />

Ken Avery<br />

Mike Bourn<br />

Mike Hensley<br />

Ken Cain<br />

Tim McGowan<br />

David Webber<br />

President of Caribbean<br />

Region<br />

WARREN DC<br />

Marcelo S<strong>to</strong>piello<br />

Juan Riera<br />

<strong>Sonepar</strong> <strong>USA</strong> Organization<br />

12 Businesses in 35 states<br />

<strong>Sonepar</strong> <strong>USA</strong> Support<br />

Jay Bricker<br />

Francois Chatin<br />

Grace Migliaccio<br />

Jeff Davidson<br />

Charmienne Ganao<br />

Joe Kidd<br />

Karen Monte-Dunn<br />

Matt Pothier<br />

Frank Toczylowski<br />

Paul Trudel<br />

Steve Weyler<br />

Business Development<br />

and Vendor Relations<br />

Marketing and<br />

Communications<br />

Human Resources<br />

Process Improvement<br />

Treasury<br />

Data Center/<br />

Network Applications<br />

Finance Operations<br />

Information<br />

Technology<br />

Corporate Controller<br />

General Counsel<br />

Business Controller


Leveraging Technology<br />

Son@Biz<br />

Son@biz is a major <strong>Sonepar</strong> <strong>USA</strong> initiative<br />

<strong>to</strong> develop a single technical eBusiness<br />

<strong>to</strong>ol that can be deployed <strong>to</strong> all our<br />

operating companies while promoting<br />

each distribu<strong>to</strong>r’s local branding.<br />

In early 2007, <strong>Sonepar</strong> <strong>USA</strong>, with the help<br />

of its operating companies, completed<br />

cus<strong>to</strong>mer expectation interviews and<br />

assessment of our existing technology.<br />

A steering committee composed of<br />

representatives from each business was<br />

created <strong>to</strong> define best functionality for<br />

a well-designed online ordering <strong>to</strong>ol.<br />

External eBusiness specialists were<br />

also on-hand <strong>to</strong> help develop the <strong>to</strong>ol.<br />

Today, an eOrdering website has been<br />

completed, and on January 1, 2009,<br />

Cooper Electric was the first operating<br />

company <strong>to</strong> go live on this new <strong>to</strong>ol.<br />

Modeled after other well-known online<br />

ordering systems on the market, Cooper<br />

Electric Online was designed <strong>to</strong> make its<br />

cus<strong>to</strong>mer’s job easier. It allows cus<strong>to</strong>mers<br />

<strong>to</strong> do business with Cooper not only during<br />

normal business hours, but also after<br />

hours—thus always being connected <strong>to</strong><br />

Cooper. Cus<strong>to</strong>mers can gather product<br />

information, view real-time pricing and<br />

availability, track orders, access account<br />

information, and most importantly, order<br />

products online anytime, from anywhere.<br />

Capital Lighting will go live May 2009 with<br />

additional operating companies <strong>to</strong> follow...<br />

Eclipse IT<br />

Platform<br />

Eclipse is a common operating platform<br />

that allows <strong>Sonepar</strong> <strong>USA</strong> <strong>to</strong> streamline<br />

processes, standardize business practices<br />

and improve financial performance.<br />

In the past three years, World, Cooper<br />

and Capital have completed major<br />

conversions <strong>to</strong> Eclipse. In 2008, NorthEast–<br />

Eagle also converted 300 users and over<br />

400 machines and equipment <strong>to</strong> Eclipse<br />

thanks <strong>to</strong> a well coordinated team<br />

of IT support and operational staff.<br />

“<br />

We have found tremendous<br />

improvement in our ability <strong>to</strong><br />

manage the business through<br />

the Eclipse system. Our people<br />

have also gained efficiency.<br />

”<br />

—Capital Lighting and Supply<br />

Today, a <strong>to</strong>tal of 1,200 users and four<br />

operating companies access Eclipse with<br />

no reported performance issues. By the end<br />

of 2009, <strong>Sonepar</strong> <strong>USA</strong> will have more than<br />

60% of its business on Eclipse.<br />

Business Intelligence<br />

In addition <strong>to</strong> Eclipse, <strong>Sonepar</strong> <strong>USA</strong> launched a Business Intelligence initiative in 2007<br />

<strong>to</strong> consolidate the data of its companies. The au<strong>to</strong>mation of data collection has allowed<br />

our companies <strong>to</strong> strengthen business processes, and provide operational analytics and<br />

benchmarking for better strategic and local business decisions.<br />

Shared Services<br />

In an effort <strong>to</strong> consolidate resources and improve efficiencies, <strong>Sonepar</strong> <strong>USA</strong> opened<br />

two Shared Service Centers in 2008—Maitland, Fla., and Hamil<strong>to</strong>n, N.J. The goal of these<br />

service centers is <strong>to</strong> merge standardized processes and functions, such as some financial<br />

and technology tasks, so they can be performed in a more integrated, efficient and cost<br />

effective manner.<br />

17


Viking Electric Supply<br />

Viking continued its expansion strategy in 2008 by<br />

acquiring Superior Electric Supply in Sheboygan,<br />

Wisconsin. This location provides market share<br />

growth in southeast Wisconsin.<br />

In 2008, Viking launched a successful marketing<br />

initiative, Viking Electric Television or VETV, which<br />

combined sales, promotions, merchandising and<br />

training in an organized and structured framework.<br />

This marketing program has increased business,<br />

improved training, developed better vendor<br />

planning, and enhanced merchandising displays.<br />

Many products and vendors have seen 20% <strong>to</strong> 40%<br />

growth during their featured month.<br />

Viking’s project job market was also a major focus<br />

in 2008. The sales team was successful in growing<br />

this business by 15% over 2007 and as this<br />

business continues <strong>to</strong> gain recognition, cus<strong>to</strong>mers<br />

are turning <strong>to</strong> Viking for their added-value service.<br />

Like all <strong>Sonepar</strong> <strong>USA</strong> companies, Viking has<br />

taken large steps <strong>to</strong> reducing its carbon footprint<br />

in 2008. The company recycles all internal use<br />

of lamps, wood pallets, cardboard, shrink wrap,<br />

paper, cans, glasses and plastic. Metals such as<br />

copper scrap wire, aluminium and steel scraps are<br />

also sent <strong>to</strong> recycling centers.<br />

All new trucks are equipped with nose cones and<br />

smaller delivery trucks are used when applicable<br />

<strong>to</strong> increase fuel efficiency. Routes and logistics<br />

were reviewed <strong>to</strong> maximize efficiencies. By<br />

combining or eliminating delivery terri<strong>to</strong>ries<br />

whenever possible and making all deliveries from<br />

the closest Viking location, Viking was able <strong>to</strong><br />

significantly reduce its fuel consumption.


Friedman Electric Supply<br />

Friedman continues <strong>to</strong> grow its market share<br />

in Pennsylvania and the southern tier of New<br />

York with the acquisition of Robson Electric<br />

in March 2008. Located in Johnson City, NY,<br />

Robson fits Friedman’s growth plan as<br />

it provides a convenient hub between<br />

Athens, Pa., and Ithaca, NY.<br />

In 2008, Friedman focused on several marketing<br />

efforts <strong>to</strong> promote the company’s brand and drive<br />

sales. Three company-wide promotions—March<br />

Madness, Rob Friedman’s Secret Salsa, and the<br />

Holiday Tool Sale—ran throughout the year.<br />

As well, each large branch held mini trade<br />

shows with up <strong>to</strong> 40 vendors in attendance.<br />

Each tradeshow had one-day special pricing,<br />

vendor promotions and giveaways.<br />

Merchandising was also a large push in 2008, and<br />

the company completed 8 remodels in the year.<br />

Branches implemented free residential recycling<br />

of CFLs in the lighting showrooms <strong>to</strong> help promote<br />

recycling and environmental conservation.<br />

This program received local media attention,<br />

including front page coverage in the business<br />

section of The Times Leader, a popular local<br />

newspaper in the Pennsylvania area.<br />

To provide cus<strong>to</strong>mers with products and <strong>solutions</strong><br />

that consume less energy, Friedman added the<br />

Energy Solutions Division <strong>to</strong> their long list of<br />

expertise. This group has already seen much<br />

success with a number of retrofit projects<br />

throughout the year, and many cus<strong>to</strong>mers using<br />

the BlueWay Recycling Program. Friedman also<br />

added a Tools and Fastener Division in 2008.


BlueWay<br />

<strong>Sonepar</strong><br />

Sustainable<br />

Development<br />

Reference<br />

Go Green. Think Blue.<br />

Sustainable<br />

Development<br />

BlueWay is <strong>Sonepar</strong>’s formal sustainable<br />

development program. Developed at the<br />

international level and implemented in all<br />

<strong>Sonepar</strong> countries, BlueWay is meant <strong>to</strong><br />

promote eco-friendly products that use<br />

less energy and fewer natural resources.<br />

<strong>Sonepar</strong>’s commitment <strong>to</strong> promoting<br />

sustainable development is by no means<br />

recent. It reflects the company’s longstanding<br />

belief that you have <strong>to</strong> build <strong>to</strong> last.<br />

<strong>Sonepar</strong> <strong>USA</strong>’s BlueWay<br />

Program<br />

<strong>Sonepar</strong> <strong>USA</strong>’s BlueWay Initiative is<br />

three-fold:<br />

1. Increase sales of energy-saving lamps<br />

through Lamp 20+ program<br />

2. Encourage lamp, battery and<br />

electronic recycling through<br />

BlueWayRecycling.com<br />

3. Promote Energy Saving Products<br />

Since the launch of BlueWay, <strong>Sonepar</strong> <strong>USA</strong><br />

companies have been active in educating its<br />

cus<strong>to</strong>mers and associates on the benefits of<br />

energy efficiency.<br />

BlueWayRecycling.com<br />

With the increase in popularity of highefficiency<br />

fluorescent lighting, <strong>Sonepar</strong><br />

<strong>USA</strong> partnered with a third-party vendor in<br />

2007 <strong>to</strong> provide a simple, turn-key solution<br />

for lamp, ballast, battery, and electronics<br />

recycling needs. This nationwide program<br />

provides specially discounted pricing,<br />

cus<strong>to</strong>m report generation, and Recycling<br />

Certificates all available online. Cus<strong>to</strong>mers<br />

simply sign up online, order their service,<br />

and our recycling vendor ships and picks up<br />

their box or container via Fed Ex.<br />

Our Commitments and Actions<br />

Cooper goes Green.<br />

Thinks Blue.<br />

Cooper educates and promotes green<br />

products <strong>to</strong> cus<strong>to</strong>mers while practicing<br />

green methods within the company.<br />

At its central distribution center in Linden,<br />

N.J., Cooper executed a complete retrofit,<br />

including an initial energy audit and<br />

re-lamping of the 85,000-square-foot<br />

warehouse, and installed energy saving<br />

lamps and sensors. The retrofit project has<br />

improved the overall interior lighting in the<br />

distribution center by 40% and has saved<br />

thousands of dollars in energy. Additionally,<br />

delivery trucks at the distribution centers<br />

were equipped with nose cones, effectively<br />

reducing drag and wind resistance by 70%<br />

of its delivery fleet, and increasing the mpg<br />

by four miles per gallon. This cuts down on<br />

wear and maintenance, making the vehicles<br />

much safer <strong>to</strong> operate and insure. The result<br />

is an annual savings of 15,000 gallons of<br />

diesel fuel.<br />

By educating and practicing green methods<br />

with associates, Cooper is better equipped<br />

<strong>to</strong> offer green expertise <strong>to</strong> its cus<strong>to</strong>mers.<br />

ESSCO Develops Solar<br />

Expertise<br />

In 2009, Essco rolled out its fully<br />

engineered Solar Pho<strong>to</strong>voltaic (PV)<br />

Systems and Services program. In<br />

partnership with manufacturers of solar<br />

panels, inverters and racking, and mounting<br />

systems, Essco provides modular and<br />

fully expandable kits for future upgrades.<br />

The company is also providing additional<br />

services <strong>to</strong> its cus<strong>to</strong>mers including<br />

engineering, design, layout, permitting,<br />

documentation for carbon credits, tax credits<br />

and utility rebates, site survey, build and<br />

start-up supervision, and training.<br />

Eoff wins Energy Trust<br />

of Oregon Award—<br />

four times in a row!<br />

Gil Ames<strong>to</strong>y of Eoff Electric Supply<br />

in Portland, Oregon, was awarded the<br />

Energy Trust of Oregon <strong>to</strong>p distribu<strong>to</strong>r<br />

award in January 2009. This is the fourth<br />

year in a row that Ames<strong>to</strong>y and Eoff<br />

received this award.<br />

Eoff coordinated projects saving over<br />

2.5 million kWh for businesses and<br />

organizations in Oregon and SW<br />

Washing<strong>to</strong>n in 2008.<br />

Crawford Greens New<br />

Locations<br />

Between 2008 and early 2009, Crawford<br />

opened three new locations including New<br />

Braunfels and Conroe, Texas, and New<br />

Orleans, La. In each location, the company<br />

incorporated many “green” initiatives<br />

throughout the new facilities, including<br />

motion sensors and efficient fluorescent<br />

lighting units throughout the office and<br />

warehouse. In addition, the New Braunfels<br />

location includes tilt wall/cement building<br />

with a double insulated roof, the highest<br />

rated Seasonal Energy Efficiency Ratio<br />

(SEER) air conditioning and heating units,<br />

double-paned energy efficient windows and<br />

doors, and T-5 fluorescent highbays lighting<br />

up the warehouse. The T-5 fluorescent<br />

highbays will produce an annual energy<br />

savings of $6,150, and Crawford forecasts<br />

a significant amount of savings on overall<br />

utility costs for the facilities.<br />

World Shows Cus<strong>to</strong>mers<br />

How <strong>to</strong> Save<br />

As the cost of energy rises, World Electric<br />

has been able <strong>to</strong> help many of its cus<strong>to</strong>mers<br />

save money and the environment at the<br />

same time. From lighting <strong>to</strong> controls and<br />

everything in between, World Electric is<br />

staffed with lighting and product specialists<br />

knowledgeable in the latest energy-saving<br />

technology. In 2008, the company became<br />

a certified Energy Star partner and held<br />

several LEED workshops and seminars,<br />

which were met by such enthusiasm by<br />

cus<strong>to</strong>mers that World Electric plans on<br />

repeating the seminars in 2009.<br />

19


NorthEast Electrical<br />

Distribu<strong>to</strong>rs–Eagle<br />

Electric Supply<br />

NorthEast-Eagle’s focus in 2008 was one<br />

of growth, cus<strong>to</strong>mers and consolidation.<br />

The company opened a new branch in Milford,<br />

Mass., in mid- 2008. The new location occupies<br />

7,400 <strong>to</strong>tal square feet, including a 1,400-squarefoot<br />

s<strong>to</strong>refront and merchandised counter area.<br />

NorthEast–Eagle has been serving contrac<strong>to</strong>rs in<br />

this area for quite some time, and in order <strong>to</strong> meet<br />

all the needs of current and future cus<strong>to</strong>mers, the<br />

company elected <strong>to</strong> be closer <strong>to</strong> their day-<strong>to</strong>-day<br />

business in the greater Milford area.<br />

In 2008, the first ever NorthEast–Eagle and Ralph<br />

Pill joint mini trade shows were held. Regional<br />

Trade Shows have proven <strong>to</strong> be valuable anchors<br />

in the marketing calendar for cus<strong>to</strong>mers, suppliers<br />

and NorthEast–Eagle, and will continue in 2009.<br />

The NorthEast Advantage Cus<strong>to</strong>mer loyalty<br />

and growth program rolled over in<strong>to</strong> 2008 with<br />

participation from just under 1,000 contrac<strong>to</strong>r<br />

members. In a challenging economic year,<br />

the program resulted in an overall 5% increase<br />

in sales from manufacturers’ product lines.<br />

The program consists of monthly product<br />

specials, dedicated manufacturer incentive<br />

promotions, cus<strong>to</strong>mer rewards, and<br />

integrated marketing materials.<br />

In terms of commercial initiatives, NorthEast–Eagle<br />

successfully combined the operations of its Mod<br />

Shop and Bee-Line Boards panel assembly shop.<br />

Located in a single operations center within<br />

NorthEast–Eagle’s Woburn branch, these two<br />

capabilities give the company a unique position<br />

among <strong>electrical</strong> distribu<strong>to</strong>rs in the New England<br />

market when it comes <strong>to</strong> supplying assembled<br />

panelboards, molded case breakers and accessories,<br />

and modifications <strong>to</strong> contac<strong>to</strong>rs and starters.


Brook Electrical<br />

Distribution Co.<br />

In 2008, Brook Electrical strengthened its position<br />

in the Chicago market by expanding in<strong>to</strong> a new,<br />

larger CDC and headquarters in Addison, IL. The<br />

new location increased Brook’s square footage by<br />

over 100,000 sq. ft., and the company went from<br />

having a <strong>to</strong>tal of four shipping docks <strong>to</strong> sixteen.<br />

Additionally, Brook opened a new facility in<br />

Libertyville, IL. The new branch occupies 4,900<br />

sq. ft. Conveniently located in a high-traffic retail<br />

strip mall, the new location supports the continued<br />

growth and expansion that Brook has experienced<br />

throughout the entire Chicago metro area.<br />

Brook continues <strong>to</strong> stay close <strong>to</strong> the cus<strong>to</strong>mers<br />

through a number of major events in 2008.<br />

One of the most successful events was the Tool<br />

Roadshow, which traveled from one location <strong>to</strong> the<br />

other within five consecutive weeks. Together with<br />

eight <strong>to</strong>ol manufacturers, Brook’s <strong>to</strong>ol specialists<br />

demonstrated products and built deeper<br />

relationships with cus<strong>to</strong>mers. The Roadshow<br />

was promoted through local papers and radio<br />

media. The company teamed up with ESPN<br />

Radio with weekly ads building up <strong>to</strong> a personal<br />

appearance by Steve McMichael, former Bear’s<br />

Super Bowl champion, at the final event at the new<br />

Addison location. It was such a success that the<br />

company plans repeating the event in 2009.


Merchandising<br />

Promoting<br />

Products<br />

<strong>Sonepar</strong> <strong>USA</strong> understands that sales<br />

counters are distribu<strong>to</strong>rs’ most valuable<br />

real estate. That’s why the company<br />

launched a merchandising program<br />

<strong>to</strong> improve counter locations and offer<br />

products and services <strong>to</strong> cus<strong>to</strong>mers in an<br />

attractive and more efficient environment.<br />

The program encourages merchandising<br />

managers <strong>to</strong> exchange ideas and share best<br />

practices, ensuring cus<strong>to</strong>mers have a good<br />

shopping experience each and every time<br />

they visit our counters.<br />

As Seen on VETV<br />

Viking, with support from <strong>Sonepar</strong> Canada,<br />

launched a successful marketing and<br />

merchandising program, Viking Electric<br />

Television (VETV), in September 2008.<br />

By adopting <strong>Sonepar</strong> Canada’s effective<br />

processes and methods, Viking created<br />

its own program relying fully on in-house<br />

expertise. On a monthly basis, Viking<br />

develops 15–20 minute videos consisting<br />

of three primary vendor sponsors, two<br />

secondary vendors (usually <strong>to</strong>ol and data<br />

com products), informational and Blueway<br />

segments that play on flat screen televisions<br />

installed in all 24 show floors and controlled<br />

through a dedicated network.<br />

To ensure all sales and counter associates<br />

understand each month’s promotion,<br />

associates take a locally created<br />

Son@cademy class before a new<br />

segment airs.<br />

VETV is supported by displays of the<br />

featured products on the show floors and<br />

distribution of “As Seen on VETV” flyers<br />

by the sales force. The sales results have<br />

been very encouraging. Many products<br />

and vendors have seen 20% <strong>to</strong> 40%<br />

growth during their featured month.<br />

Capital Television<br />

In the fall of 2007, Capital Lighting & Supply<br />

piloted a new program, Capital Television<br />

(CTV). Even with the limited content, this<br />

new program captured the attention of<br />

every cus<strong>to</strong>mer who walked through the<br />

door. Rotating through product slides and<br />

product installation videos, cus<strong>to</strong>mers were<br />

mesmerized and so <strong>to</strong>o were the vendors.<br />

Throughout 2008 and 2009, CLS continued<br />

<strong>to</strong> expand the CTV program in<strong>to</strong> each of<br />

their locations and ultimately created six<br />

advertising regions. With the creation of<br />

the regions, CLS has the ability <strong>to</strong> target<br />

specific geographies <strong>to</strong> address cus<strong>to</strong>mers<br />

regarding code issues as well as <strong>to</strong><br />

advertise counter days at a specific location<br />

in that particular region.<br />

Also, throughout 2008, vendors began<br />

expressing their desire <strong>to</strong> provide additional<br />

content which provided the catalyst <strong>to</strong> turn<br />

this pilot program in<strong>to</strong> reality.<br />

An advertising program was developed<br />

and funding was provided for additional<br />

flat screen televisions and content. To<br />

date there have been over 500 CTV slides<br />

created showcasing products, promotions,<br />

specials, and installation videos from their<br />

<strong>to</strong>p 40 vendors. Additional slides have<br />

been created from pho<strong>to</strong>s of the many CLS<br />

sponsored events featuring the faces of their<br />

cus<strong>to</strong>mers and vendors reminding everyone<br />

why they do business with CLS.<br />

For Capital, CTV has proven <strong>to</strong> be a new,<br />

innovative way <strong>to</strong> introduce and highlight<br />

products <strong>to</strong> <strong>electrical</strong> contrac<strong>to</strong>rs.<br />

Training<br />

Son@cademy is a web based Learning<br />

Management System that offers <strong>Sonepar</strong><br />

associates instruc<strong>to</strong>r-led or self-pace<br />

training <strong>to</strong> improve industry knowledge,<br />

vendor product knowledge and cus<strong>to</strong>mer<br />

service skills. Our goal is <strong>to</strong> make all<br />

employees the best in the industry.<br />

Son@cademy offers employees<br />

the opportunity <strong>to</strong>:<br />

• Develop and improve their skills<br />

• Increase their product knowledge<br />

• Prepare for new jobs or new job<br />

responsibilities<br />

• Learn about new products<br />

• Keep abreast of industry changes<br />

The <strong>to</strong>ol was implemented <strong>to</strong> all operating<br />

companies in 2007. In 2008, over 3,000<br />

different <strong>Sonepar</strong> employees <strong>to</strong>ok over<br />

7,000 courses <strong>to</strong> improve themselves and<br />

their ability <strong>to</strong> serve cus<strong>to</strong>mers.<br />

“<br />

This is a great training <strong>to</strong>ol<br />

that helps you achieve your<br />

career goals. The online vendor<br />

training helps you learn more<br />

about products. This program<br />

helps me <strong>to</strong> gain more knowledge<br />

and be prepared for any<br />

situation that can arise.<br />

”<br />

—Rick Savage,<br />

Counter Sales, Cooper Electric<br />

“<br />

I feel Son@cademy finally<br />

brings <strong>to</strong> Cooper what I like <strong>to</strong><br />

call a ‘build a bench’ program.<br />

It enables us <strong>to</strong> both improve<br />

our staff in their present positions<br />

while getting them ready<br />

for newer opportunities as<br />

they arise. I always prefer <strong>to</strong><br />

promote from within whenever<br />

possible. This is one of the best<br />

messages we can send <strong>to</strong> our<br />

employees!<br />

”<br />

—Mike Dudas, president,<br />

Cooper Electric<br />

To keep the infrastructure simple <strong>to</strong> use<br />

while maintaining maximum flexibility, a<br />

Son@cademy Committee was created<br />

consisting of representatives from each of<br />

the operating companies. The purpose of<br />

the group is <strong>to</strong> design, develop and deploy<br />

educational and developmental activities<br />

that all the companies can use <strong>to</strong> meet the<br />

developmental needs of their employees.<br />

In 2009, the group plans <strong>to</strong> continue <strong>to</strong><br />

refine learning activities that can be used<br />

by everyone as well as rollout a new<br />

version of Son@cademy.<br />

<strong>Sonepar</strong> People<br />

Our company is made up of a number<br />

of well-run, successful businesses that<br />

have joined forces with <strong>Sonepar</strong> <strong>to</strong> form<br />

a family that is stronger than any one<br />

company would be alone. As a result, our<br />

culture is an unusual combination: we have<br />

small-company values and big company<br />

opportunities.<br />

We think that combination makes us not<br />

only better than the competition because<br />

we are closer <strong>to</strong> our cus<strong>to</strong>mers, but makes<br />

our working environments a place where<br />

people want <strong>to</strong> be and stay. At <strong>Sonepar</strong>,<br />

leaders are involved with their employees<br />

and care about their professional and<br />

personal welfare. Personal values matter.<br />

The person working next <strong>to</strong> you is as likely<br />

<strong>to</strong> be a friend as a co-worker. Tenure is<br />

measured in years, sometimes decades,<br />

not days or months. We hear it over and<br />

over again: “I came for a job. I stay<br />

because of the people.”<br />

The big company opportunity comes in<br />

exposure <strong>to</strong> global training programs, such<br />

as the <strong>Sonepar</strong> Junior Committee. It comes<br />

from being on national committees such<br />

as the American Logistics Committee, or<br />

attending the 10th Anniversary Celebration<br />

in 2008. It comes from career opportunities<br />

within and across operating companies. And<br />

it comes from more productive relationships<br />

with world-class suppliers and vendors.<br />

We have over 4,400 people on the team<br />

at <strong>Sonepar</strong> <strong>USA</strong>. Among them are some<br />

of the most knowledgeable and most<br />

seasoned professionals in our industry.<br />

—Grace Migliaccio, Chief Human<br />

Resource Officer<br />

21


Cooper Electric<br />

2008 was an extremely active year for Cooper<br />

Electric. The company launched two major<br />

initiatives focused on technology, innovation<br />

and sustainable development—BlueWay<br />

progam and Son@Biz.<br />

In early 2008, Cooper established an internal<br />

“Green team” made up of employees who are<br />

experts in energy savings and new lighting<br />

technologies. Tasked with guiding the company<br />

<strong>to</strong> become more environmentally responsible,<br />

team members visited branches and educated<br />

employees about green opportunities for their<br />

locations as well as for cus<strong>to</strong>mers. Additionally,<br />

each department and branch committed <strong>to</strong> green<br />

sustainability efforts such as the installation of<br />

energy-saving lamps and occupancy sensors <strong>to</strong><br />

save on energy and lighting costs. These very<br />

simple actions will be the backbone of Cooper’s<br />

internal efforts <strong>to</strong> become more environmentally<br />

friendly. Externally, Cooper will embark<br />

on a series of ‘green’ road shows at all the<br />

branches educating cus<strong>to</strong>mers on<br />

Cooper’s green capabilities.<br />

As an additional added-value service for<br />

its cus<strong>to</strong>mers, Cooper launched a new online<br />

ordering <strong>to</strong>ol called Cooper Electric Online.<br />

Cooper Electric Online provides cus<strong>to</strong>mers with<br />

a more comprehensive and streamlined way<br />

of getting product information and ordering<br />

products at their convenience. This exciting<br />

new selling <strong>to</strong>ol is an extension of the company’s<br />

sales team and distribution centers, thus providing<br />

value <strong>to</strong> its cus<strong>to</strong>mers and differentiating<br />

Cooper from the competition.<br />

In 2008, Cooper certainty s<strong>to</strong>od out from the rest.<br />

The company won the Kohler Distribu<strong>to</strong>r of the<br />

Year Award and was recognized as One of the<br />

Best Places <strong>to</strong> Work in New Jersey by NJ Biz, a<br />

leading local newspaper in the New Jersey area.


World Electric Supply<br />

Despite the negative impact of the residential<br />

market collapse in Florida and the weakened<br />

economy, World saw much success with it lighting<br />

business and <strong>to</strong>ol and fastener market in 2008.<br />

World’s Lighting Department delivered<br />

several large retrofit projects <strong>to</strong> commercial<br />

and institutional cus<strong>to</strong>mers. The company<br />

hosted a LEED seminar for cus<strong>to</strong>mers, became<br />

a certified energy star partner, and has several<br />

LEED-certified associates on staff, making<br />

World a leader in energy saving in the Florida<br />

market. World is also actively involved<br />

in offering recycling services <strong>to</strong> cus<strong>to</strong>mers<br />

through BlueWayRecycling.com—<br />

a great added-value service.<br />

The <strong>to</strong>ol and fastener initiative has been another<br />

high priority for World. In 2008, the company<br />

opened a <strong>to</strong>ol repair center located within the<br />

Jacksonville branch and has realized an increase<br />

in sales in this product category. The key drivers<br />

for the <strong>to</strong>ol and fastener program include <strong>to</strong>ol<br />

specialists on staff, branch trainings, marketing<br />

support, and vendor partnerships.<br />

World plans <strong>to</strong> continue its push in the lighting,<br />

and <strong>to</strong>ol and fastener markets, as well as focusing<br />

on the industrial and government markets in 2009.


Vendor Relations<br />

Logistics<br />

Supplier of<br />

Choice<br />

Building productive, lasting relationships<br />

with suppliers is one of the keys <strong>to</strong><br />

<strong>Sonepar</strong>’s success. For that reason,<br />

<strong>Sonepar</strong> <strong>USA</strong> works with its suppliers<br />

<strong>to</strong> continuously provide <strong>solutions</strong> that<br />

streamline new product introductions,<br />

and offer efficient data and information<br />

exchange. We also advance eBusiness<br />

systems <strong>to</strong> improve the efficiency of our<br />

vendor relationships and take cost out<br />

of the channel.<br />

<strong>Sonepar</strong> <strong>USA</strong> offers manufacturers<br />

access <strong>to</strong> an efficient distribution network<br />

supported by experienced, well-trained and<br />

knowledgeable associates. Additionally,<br />

marketing support, cus<strong>to</strong>mer feedback and<br />

other services tailored <strong>to</strong> local cus<strong>to</strong>mer<br />

needs is part of the package manufacturers<br />

receive when they work with <strong>Sonepar</strong> <strong>USA</strong>.<br />

In return, <strong>Sonepar</strong> <strong>USA</strong> expects<br />

manufacturers <strong>to</strong> innovate and meet the<br />

changing need of cus<strong>to</strong>mers, maintain<br />

pricing that is competitive with market<br />

trends, and of course, <strong>to</strong> optimize product<br />

quality and availability.<br />

This win-win model developed between<br />

<strong>Sonepar</strong> <strong>USA</strong> and manufacturers produces<br />

joint market share growth.<br />

Stuart C. Irby Company<br />

host Rockwell<br />

Au<strong>to</strong>mation’s 17th annual<br />

Au<strong>to</strong>mation Fair<br />

In the fall of 2008, Irby served as the<br />

host distribu<strong>to</strong>r for Rockwell Au<strong>to</strong>mation’s<br />

17th annual Au<strong>to</strong>mation Fair. The 2008<br />

festivities were held in Nashville, Tenn.,<br />

where over 9,600 industry professionals<br />

gathered for the two-day show. After<br />

spending the day learning about the latest<br />

developments in au<strong>to</strong>mation technology at<br />

the his<strong>to</strong>ric Opryland Hotel, over 1,500 Irby<br />

cus<strong>to</strong>mers were treated <strong>to</strong> a memorable<br />

night out in the legendary Music City,<br />

including an unforgettable performance<br />

by the Charlie Daniels Band.<br />

According <strong>to</strong> Rockwell, Irby cus<strong>to</strong>mers<br />

made up a significant portion of this<br />

year’s turnout. In fact, from a <strong>to</strong>tal of<br />

5,090 Rockwell cus<strong>to</strong>mers at the show,<br />

2,366 were also current cus<strong>to</strong>mers of Irby.<br />

This represents an increase of over 300<br />

cus<strong>to</strong>mers compared <strong>to</strong> last year’s host<br />

distribu<strong>to</strong>r in Chicago, IL.<br />

Delivering Value<br />

Intently focused on delivering unequaled<br />

service and value <strong>to</strong> its cus<strong>to</strong>mers, the<br />

<strong>Sonepar</strong> <strong>USA</strong> Logistics Team strives<br />

<strong>to</strong> perform at the highest levels while<br />

effectively managing costs and maintaining<br />

a safe, compliant environment.<br />

In partnership with its operating companies,<br />

<strong>Sonepar</strong> <strong>USA</strong> evaluates its distribution<br />

networks at all points in the supply chain<br />

and continually refines the network(s) <strong>to</strong><br />

meet our cus<strong>to</strong>mer’s service expectations.<br />

Through a nationwide Logistics Council,<br />

the company leverages its size, systems<br />

and capabilities by sharing knowledge, new<br />

ideas, optimizing processes, implementing<br />

best practices and most importantly, keeping<br />

our cus<strong>to</strong>mers in the forefront of all we do.<br />

Capital Lighting & Supply’s<br />

New CDC & Headquarters<br />

Completed<br />

In the fall of 2008, Capital Lighting & Supply<br />

(CLS) opened a new central distribution center<br />

and headquarters in Upper Marlboro, Maryland.<br />

The 220,000 square foot facility features<br />

a state of the art distribution center with<br />

the latest in warehouse technology. Over<br />

20,000 products are in s<strong>to</strong>ck and available<br />

<strong>to</strong> cus<strong>to</strong>mers every day. A 3,000-squarefoot<br />

full service counter and will call are<br />

also located on the property. CLS used<br />

many energy-saving techniques and<br />

products when designing this new location,<br />

including high efficiency windows and<br />

HVAC systems that use at least 25% less<br />

energy over building standards, recycled<br />

concrete, and a roof membrane designed<br />

<strong>to</strong> reflect heat away from the building.<br />

In terms of lighting, the company installed<br />

435 T5 High Bay Fixtures with sensors,<br />

and painted the ceiling and walls white <strong>to</strong><br />

increase reflecting surfaces thus requiring<br />

fewer fixtures. The results equal 30% less<br />

energy or an estimated annual savings of<br />

$50,000–70,000.<br />

The corporate headquarters, formerly in<br />

Alexandria, Virginia, was also relocated <strong>to</strong><br />

this new site. The headquarters features a<br />

fully equipped training facility with computer<br />

and audiovisual capabilities. The training<br />

rooms are available for CLS cus<strong>to</strong>mers and<br />

vendors <strong>to</strong> use for training and company<br />

meetings.<br />

Brook Electrical Debuts<br />

New Headquarters<br />

Brook moved its headquarters <strong>to</strong> Addison,<br />

Illinois on March 17, 2008. The new<br />

central distribution center occupies over<br />

170,000 square feet, and employs over<br />

100 associates. The new headquarters<br />

represents an upgrade in both space and<br />

capabilities for Brook, which increased its<br />

square footage by over 100,000 square<br />

feet, and went from having a <strong>to</strong>tal of four<br />

shipping docks <strong>to</strong> 16 at the new location.<br />

It is strategically located in a central location<br />

<strong>to</strong> the company’s delivery terri<strong>to</strong>ry, which<br />

provides more flexibility when serving<br />

cus<strong>to</strong>mers in all locations around Chicago.<br />

The new headquarters is equipped with<br />

energy-efficient lighting throughout the<br />

entire facility, with occupancy sensor<br />

technology installed in each office for<br />

additional energy savings.<br />

Warren Del Caribe (WDC)<br />

relocates its Export<br />

Division<br />

WDC’s Export Division grew 85% in 2008.<br />

The huge demand for its services prompted<br />

the company <strong>to</strong> move <strong>to</strong> a larger facility in<br />

Miami, Fl. Additionally, WDC installed and<br />

configured cus<strong>to</strong>mized logistic software<br />

with many tailored functions <strong>to</strong> help meet<br />

the needs of its overseas operations in<br />

Puer<strong>to</strong> Rico, Dominican Republic and<br />

Trinidad and Tobago.<br />

23


Capital Lighting and<br />

Supply<br />

Capital Lighting and Supply (CLS) opened its<br />

state-of-the-art CDC and headquarters in 2008,<br />

enabling the company <strong>to</strong> provide a broader and<br />

deeper selection of products, more value-added<br />

services, and even more training programs.<br />

Additionally, CLS opened a branch in Annapolis,<br />

MD, <strong>to</strong> increase its footprint and provide greater<br />

flexibility for its growing local cus<strong>to</strong>mer base.<br />

As the demand for energy efficiency has become<br />

greater over the past year, CLS invested in an<br />

Energy Management Services (EMS) division<br />

<strong>to</strong> provide cus<strong>to</strong>mers with energy audits, utility<br />

rebate information, energy-saving products,<br />

and recycling services of lamps, ballasts and<br />

other electronics. The department saw terrific<br />

growth since its inception in 2007. In 2008,<br />

energy-saving lamp sales alone grew over 150%<br />

from the previous year. EMS has completed<br />

several energy-saving retrofits and have<br />

several more waiting <strong>to</strong> start.<br />

CLS also had some key events and programs<br />

that helped drive sales and market share growth.<br />

In February 2008, the company hosted two 2008<br />

NEC Code Seminars preceded by Electrical Expo<br />

and Product Fairs in Baltimore, MD, and Chantilly,<br />

VA. Both seminars were taught by nationallyrenowned<br />

code instruc<strong>to</strong>r Mike Holt.<br />

The seminars covered material on grounding<br />

vs. bonding, 1999–2005 code issues by<br />

jurisdiction, and included important updates on<br />

2008 code changes. The seminar was approved<br />

by the local jurisdictions for Continuing Education<br />

Units. Over 1,000 people attended both seminars<br />

and Electrical Expos. Providing these educational<br />

seminars is just one way for CLS <strong>to</strong> be a valueadded<br />

resource for our cus<strong>to</strong>mers, and represents<br />

the company’s commitment <strong>to</strong> be the<br />

<strong>electrical</strong> distribu<strong>to</strong>r of choice.


ESSCO Wholesale<br />

Electric<br />

Joining <strong>Sonepar</strong> <strong>USA</strong> in mid-2008, ESSCO is<br />

one of the largest distribu<strong>to</strong>rs in the Arizona<br />

and Southern California markets, and leader in<br />

the alternative energy market place. In 2008, the<br />

company launched ESSCO Technology Solutions<br />

(ETS), a division dedicated <strong>to</strong> offering cus<strong>to</strong>mers<br />

renewable energy <strong>solutions</strong> such as solar panel<br />

installation and retrofits. To ensure associates are<br />

aware of the latest technology in energy efficiency,<br />

the company offered a number of product training<br />

sessions throughout the year, including a seminar<br />

on ‘the complete solar kit’ program that was<br />

developed with the help of key partners.<br />

ESSCO is one of the few distribu<strong>to</strong>rs in the<br />

southwest market who is offering this advanced<br />

technology <strong>to</strong> their cus<strong>to</strong>mers.<br />

In addition, ESSCO relocated many branches<br />

in 2008 including Yuma, Ariz.; Palm Desert, Calif.;<br />

and Los Angeles, Calif. The company also opened<br />

a new branch in Tucson, Ariz., and converted<br />

their acquired Mountain Vista Electric <strong>to</strong> ESSCO<br />

Sierra Vista, Ariz. When relocating or revamping<br />

other facilities <strong>to</strong> fit ESSCO’s model, the company<br />

always practices in-house energy savings. ESSCO<br />

used energy efficient bulbs, electronic ballasts,<br />

and HO fluorescent warehouse fixtures instead<br />

of HID highbays in each of its locations and<br />

continues <strong>to</strong> look for ways <strong>to</strong> find costand<br />

environment-saving technology.<br />

In accordance with the <strong>Sonepar</strong> BlueWay<br />

program, in 2009, the company will continue<br />

<strong>to</strong> grow its renewal energy division, and<br />

look <strong>to</strong> develop educational programs<br />

for cus<strong>to</strong>mers and associates on energy<br />

saving products and <strong>solutions</strong>.


<strong>Sonepar</strong> Worldwide Presence<br />

A family-owned business committed <strong>to</strong> the entrepreneurial spirit<br />

Founded in 1969 by Henri Coisne, <strong>Sonepar</strong> is a private, family-owned group organized on the basis of trust and empowerment.<br />

The company maintains a genuinely entrepreneurial culture by leveraging a decentralized structure with strong local roots.<br />

A close-knit management team helms the group, supported by a streamlined holding-company structure and more than 160<br />

operating companies worldwide.<br />

Finalized in 2008, <strong>Sonepar</strong>’s acquisition of leading companies from Hagemeyer greatly expands the group’s footprint in<br />

North America, the Asia region, Europe and Oceania.<br />

<strong>Sonepar</strong> Canada<br />

Canada<br />

<strong>Sonepar</strong> Belgium<br />

Belgium<br />

<strong>Sonepar</strong> Nederland<br />

The Netherlands<br />

<strong>Sonepar</strong> France<br />

France, Monaco<br />

<strong>Sonepar</strong> Deutschland<br />

Germany, Austria, Czech Republic,<br />

Hungary<br />

<strong>Sonepar</strong> Nordic<br />

Denmark, Sweden, Norway, Finland,<br />

Latvia, Es<strong>to</strong>nia, Lithuania, Poland<br />

<strong>Sonepar</strong> Russia<br />

Russia<br />

<strong>Sonepar</strong> China<br />

Thailand, Singapore,<br />

Malaysia<br />

<strong>Sonepar</strong> Mexico<br />

Mexico<br />

<strong>Sonepar</strong> <strong>USA</strong><br />

<strong>USA</strong>, Dominican Republic<br />

Trinidad and Tobago, Puer<strong>to</strong> Rico<br />

<strong>Sonepar</strong> South America<br />

Brazil<br />

Close To Our Cus<strong>to</strong>mers<br />

160 Companies in 34 Countries<br />

<strong>Sonepar</strong> Iberica<br />

Spain<br />

<strong>Sonepar</strong> Italia<br />

Italy<br />

<strong>Sonepar</strong> Suisse<br />

Switzerland<br />

<strong>Sonepar</strong> Romania<br />

Romania<br />

Austria<br />

Australia<br />

Belgium<br />

Brazil<br />

Canada<br />

China<br />

Czech Republic<br />

Denmark<br />

Dominican Republic<br />

Es<strong>to</strong>nia<br />

Finland<br />

France<br />

Germany<br />

Hungary<br />

Italy<br />

Latvia<br />

Lithuania<br />

Luxembourg<br />

Malaysia<br />

Mexico<br />

Netherlands<br />

Norway<br />

Poland<br />

Puer<strong>to</strong> Rico<br />

Romania<br />

Russia<br />

Singapore<br />

Spain<br />

Sweden<br />

Switzerland<br />

Thailand<br />

Tobago<br />

Trinidad<br />

<strong>USA</strong><br />

25


<strong>Sonepar</strong> Worldwide Key Facts<br />

Four Main Markets<br />

The Hagemeyer Deal, a new dimension for the Group<br />

The deal represents six strategic levers:<br />

1. Strong turnover growth from $14 <strong>to</strong> $18 Billion (pro froma) in 2007—the basis for consolidating <strong>Sonepar</strong>’s global leadership.<br />

2. A much greater footprint in North America, with sales up <strong>to</strong> more than 50% ($5.2 billion pro forma in 2007).<br />

3. Vastly expanded scope in Asia and Oceania, with pro forma sales of more than $800 million in 2007 and the resources<br />

needed <strong>to</strong> deploy an aggressive strategy in high-growth markets.<br />

4. A strengthening of the network in Europe through integration of complementary companies.<br />

5. Enhanced “people” input with new staff bringing new expertise <strong>to</strong> the group and an expanded cus<strong>to</strong>mer base.<br />

6. Commercial opportunities <strong>to</strong> expand the cus<strong>to</strong>mer base and product and service offerings.<br />

18.9*<br />

residential<br />

industrial<br />

Four Benefits of Hagemeyer<br />

• Integrated Supply<br />

• MRO (Maintenance, Repairs and Operations) products distribution<br />

• Broader product ranges<br />

• Strong industrial cus<strong>to</strong>mer base<br />

commercial<br />

utility<br />

Sales Expansion<br />

in billions $<br />

* 1 euro=$1.47 US for 2008<br />

7.7<br />

8.8<br />

9.4<br />

average annual growth of 10% for 20 years<br />

10.4<br />

12.4<br />

14.5<br />

Sales Breakdown<br />

2008 figures in %<br />

Sales—by product family<br />

30.8<br />

25.9<br />

18.8<br />

13.7<br />

6.2<br />

4.6<br />

Installation and industrial materials<br />

Cable<br />

Others<br />

Lighting<br />

Heating, Ventilation and Air Conditioning<br />

Communications & Safety<br />

4.6<br />

5.5<br />

43.8<br />

29.5<br />

19.7<br />

Europe without France<br />

North America<br />

France<br />

2.4<br />

3.6<br />

2.1<br />

1.3<br />

Oceania<br />

Latin America<br />

Asia<br />

54<br />

24<br />

14<br />

Installers<br />

Industry<br />

Others<br />

Sales—by geographical zone<br />

8<br />

Services<br />

1988 1994 1997 2000 2003 2004 2005 2006 2007 2008<br />

Sales—by cus<strong>to</strong>mer type


<strong>Sonepar</strong> <strong>USA</strong><br />

Penn Mutual Building 4th Floor, Suite 400<br />

510 Walnut Street<br />

Philadelphia, PA 19106<br />

215.399.5900<br />

www.sonepar-us.com<br />

Brook Electrical Distribution<br />

880 S Rohlwing Road<br />

Addison, IL 60101<br />

847.353.6300<br />

www.brook<strong>electrical</strong>.com<br />

Capital Lighting & Supply<br />

3950 Wheeler Avenue<br />

Alexandria, VA 22304<br />

703.823.6000<br />

www.capitallighting.com<br />

Cooper Electric Supply Co.<br />

70 Apple Street<br />

Tin<strong>to</strong>n Falls, NJ 07724-2600<br />

732.747.2233<br />

www.cooper-electric.com<br />

Crawford Electric Supply Corporation, Inc.<br />

7390 Northcourt Rd.<br />

Hous<strong>to</strong>n, TX 77040<br />

713.476.0788<br />

www.cescoltd.com<br />

Eoff Electric Co.<br />

3241 NW Industrial Street<br />

Portland, OR 97214<br />

503.222.9411<br />

www.eoff.com<br />

Essco Wholesale Electric, Inc.<br />

175 E Corporate Place<br />

Chandler, Arizona 85225<br />

480.497.8000<br />

www.esscous.com<br />

Friedman Electric<br />

1321 Wyoming Avenue<br />

Exeter, PA 18643<br />

570.654.3371<br />

www.friedmanelectric.com<br />

NorthEast-Eagle Electrical Distribu<strong>to</strong>rs<br />

135 Will Drive<br />

Can<strong>to</strong>n, MA 02021<br />

781.401.8500<br />

www.needco.com | www.eagleweb.com<br />

Stuart C. Irby Co.<br />

815 South State Street<br />

Jackson, MS 39201<br />

601.969.1811<br />

www.irby.com<br />

Viking Electric Supply<br />

451 Industrial Boulevard<br />

Minneapolis, MN 55413<br />

612.627.1300<br />

www.vikingelectric.com<br />

Warren del Caribe<br />

Physical Rd. #1; KM 33.3; Bairoa;<br />

Caguas, Puer<strong>to</strong> Rico 00725<br />

Mailing: PO Box 4985 PMB 280 Caguas,<br />

Puer<strong>to</strong> Rico 00726-4985<br />

787.757.8600<br />

www.warrendelcaribe.com<br />

World Electric Supply<br />

569 Stuart Lane<br />

Jacksonville, FL 32254<br />

904.378.4000<br />

www.worldelectricsupply.com<br />

May 2009

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