2008â2009 Technical solutions provider to electrical ... - Sonepar USA
2008â2009 Technical solutions provider to electrical ... - Sonepar USA
2008â2009 Technical solutions provider to electrical ... - Sonepar USA
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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