July 7, 2006—Electrical distributors in 2005 produced their highest profit margins in at least a decade, according to the National Association of Electrical Distributors (NAED) in its annual Performance Analysis Report (PAR) Highlights.
The average net profit for electrical distributors in 2005 was 2.9%, up from 2.1% in 2004 and just 1.3% in 2003, the report said. The 2.9% figure represents the highest profit margin reported in the past 10 years that NAED has conducted the PAR survey. Among a select group of “high profit” distributors, the 2005 profit margin was more than twice as high at 6.0%.
NAED conducts the PAR survey annually to provide industry financial benchmarks. The results from the 2006 survey are based on data from 179 NAED-member electrical distributors.
For more information, visit the NAED Web site.
