4 MIN. READ
Have you ever gone through a day without using electronics or a piece of electrical equipment? Probably not. Electronic and electrical equipment form a crucial industry segment. Current data gathered by MNI, the power behind IndustrySelect, highlight the sales opportunities that electrical and electronic equipment manufacturers present across the country.
The 12,986 companies manufacturing electronic and electrical equipment provide 1.2 million jobs. These businesses report annual average sales of $1.8 trillion. The international distribution for these companies is 56%, as compared to 29% for U.S. manufacturing as a whole.
If you watch the stock markets, you might expect many of the companies in this segment to be publicly traded. You would be right. As opposed to 5% for manufacturing as a whole, 12% of electronics and electrical equipment organizations trade publicly.
While you’ll see many other industries concentrate in one geographic area, this segment is pretty evenly distributed, with:
• 27% in the South.
• 26% in the West.
• 25% in the Midwest.
• 22% in the Northeast.
With electronic and electrical equipment encompassing everything from cellphones to lighting, you might wish to focus your sales and marketing efforts on a particular subindustry sector. These sectors include:
● Electric motors and generators.
● Carbon and graphite products.
● Household appliances.
● Lighting equipment.
● Electronic capacitors.
● Electronic resistors.
● Electronic connectors.
These subindustries serve utilities, factories, retail markets and construction. They also fill many needs of the automotive industry. Recent events caused many pain points for these manufacturers, opening new doors to prospecting.
A report shows that 86% of electronics manufacturers worry about inflation. Among these companies, 9 out of 10 already face rising costs. Despite raising prices in response, these manufacturers are on the alert for any solutions, especially ones involving digitalization, that they can use to stay ahead of the game. The ability to offer these solutions may be your entry into a new market.
As electronic devices evolve, most electronic components eventually go obsolete. If you’re prepared to sell a replacement part, the change won’t take you by surprise. You may even steal a march on your competitors by keeping up with lifecycle stages and aiming your line to fill new needs. Consider that:
● An in-production component may be available from a manufacturer but not yet from a distributor. If you’re a rep for that manufacturer, you’ll want to line up clients before distributor reps get the chance.
● Your product line may include components not recommended for new designs (NRND). If this is the case, you’ll want to make deals that will unload them as soon as possible.
● You may also find a component marked as obsolete even though it is temporarily still in production. By making this status clear to customers requiring it, particularly for replacement or repair, you may create an urgency for purchase.
● Your customers may want a component that is no longer in production. Potential purchasers will be overjoyed if you can provide a suitable replacement.
The more you know about your target industry’s lifecycles, the better sales strategies you can create.
As chip supplies disrupted many businesses over the years, you probably became painfully aware of the need for reliable multisourcing. In the future, the Chips and Science Act of 2022 will offer some relief. The legislation provides $52.7 billion to promote U.S. chip production. Several sites for chip fabrication are already going up, including an Intel facility in Ohio. Increased availability of chips may expand sales opportunities that were blocked by shortages.
Procuring raw materials may also represent a challenge to manufacturers. In early 2023, prices are either level or rising. These prices may affect the cost of B2B goods.
IPC, an international organization for electronics manufacturing, reported in 2022 that materials and labor costs are the major hurdles facing the electronics supply chain. Ninety percent of electronics manufacturers cite rising materials costs. Although orders remain strong, backlogs are growing while profits shrink. Prepare yourself and your team to deal with customer questions regarding pricing structure.
For the most part, the electronics industry is not environmentally friendly. Waste products are often toxic and don’t biodegrade. The industry can also lose resources of scarce and costly materials through improper waste handling. If your company has expertise in managing these problems, you have an opportunity in that industry segment.
The 2023 edition of the National Electrical Safety Code became effective on Feb. 1. The revision covers new technologies and focuses on outdoor power lines and everything connected to them. You should be aware that this code affects both electronics and electrical equipment. It impacts providers of:
● Photovoltaic cells.
● Cable television.
● Wireless services.
If your company offers products or services to these industries, be up to date on the new rules and how you can help your customers comply.
An upcoming National Institute of Standards (NIST) standard for data protection may offer your company cybersecurity-based opportunities. Ascon protects data generated from electronics associated with the Internet of Things (IoT). The Ascon group of algorithms guards products such as:
● Small medical devices.
● Road and bridge stress detectors.
● Vehicle keyless entry fobs.
Your prospects may soon demand products and components compliant with the new standard. Providing them can lead to new sales.
Are you looking to build your prospect list with contacts at electronic equipment manufacturers or electrical equipment fabricators? In these fast-moving industries, you need the most up-to-date information on company locations, positions and executive emails. An IndustrySelect subscription can provide these and the services you need to ride the wave of these developing markets. To learn more about using IndustrySelect to generate the reliable, high-quality leads you need, try a free demo of IndustrySelect, pre-loaded with 800 free leads to get you started!