Market Trends and Political Dynamics
The Q4 2023 Electrical Supply Chain Update reflects the onset of the Presidential Election Cycle. Tracked against projections, the third quarter witnessed an initial increase in overall index pricing, followed by declines in the fourth quarter. Notably, power wire and cable prices surged by 14%, constituting a 40% year-over-year increase. Despite global demand for aluminum and copper exceeding supply, raw material prices eased in the second half of 2023.
Building Wire and Varied Pricing Trends
Building wire experienced a 5% price decline, aligning with reductions in conduit, junction boxes, and other electrical materials. Conversely, generators, ballasts, panelboards, fuses, and switchgear saw 1-2% price increases. The Raiven Electrical Supply Index, encompassing 24 product categories, utilizes regression analysis for future projections.
2024 Presidential Election Cycle and Economic Factors
Entering the 2024 Presidential Election Cycle, historical economic patterns suggest increased consumer spending. The Inflation Reduction Act allocated substantial funding for energy, climate change initiatives, infrastructure, and tax credits. However, geopolitical conflicts, domestic political polarization, and higher interest rates pose potential challenges to consumer confidence and spending.
How will these and other pricing trends effect contractors buying electrical supplies? How will this impact consumer demand for electrical projects? What actions should I take to prepare for 2024? All these answers and more await you in our Q4 2023 Electrical Supply Chain Outlook. Download for free today!
