Q2 2023 Electrical Supply Chain Outlook Now Available
Discover Valuable Insights and Emerging Trends in the Electrical Supply Chain – Now Available to Everyone
Raiven is now offering our Q2 2023 Electrical Supply Chain Outlook free to the public. This exclusive outlook provides valuable insights into pricing trends, market conditions, and potential challenges that may impact electrical products' supply and demand dynamics. With a focus on the latest developments in the industry, this comprehensive report offers essential information for industry professionals and stakeholders.
Highlights of the report include projection that electrical products are to experience a 1-2% increase by the end of Q2, despite an initial 3% increase in the overall pricing index for Q1. Notably, wiring and related products saw significant price hikes, contributing to the overall index. However, promising signs of easing pricing during Q2 suggest a more favorable outlook.
The renowned Raiven Electrical Supply Index, which analyzes 24 product categories, indicates a stable performance for Q2. The projected range of 1.56-1.57 suggests resilience in the electrical supply chain. By August, we anticipate a return to a consistent index of around 1.58, highlighting the potential for steady growth in the sector.
The report delves into the critical role of the copper market in the electrical industry. Ongoing production levels must catch up to demand projections, particularly considering China's economic recovery and electrification initiatives. The low production levels are expected to result in long-term inflationary pressure on copper pricing. Additionally, historically low storage levels of copper indicate potential scarcity. As China's growth rebounds and geopolitical events unfold, these factors may influence pricing trends in the coming months.
ELECTRICAL EQUIPMENT SECTOR RECESSION
Furthermore, the report suggests the possibility of a recession in the electrical equipment sector based on a negative sales "inversion" observed in Q1 2023. This indicates a decline in demand, with fewer respondents reporting higher sales than lower sales. Declining backlogs and customer inventories further support the contraction.
Regional variations in pricing and growth are also addressed in the report. Specific states, such as Wisconsin, Indiana, Michigan, North Carolina, and Tennessee, experienced regional growth of 5-10% in Q1 2023. This insight offers valuable opportunities for suppliers and manufacturers to explore.
The report provides an in-depth analysis of switchgear and lead times, highlighting price increases and the volatility of lead times. It advises careful planning for projects and bids, considering the uncertainties associated with lead time fluctuations.
The Q2 2023 Electrical Supply Chain Outlook examines current market conditions and presents critical factors to watch in Q2/Q3. These factors can significantly impact pricing and availability, from labor contract negotiations on the West Coast to geopolitical issues in Asia/South Pacific, including the Ukraine/Russia conflict.
Get the complete insights of our Q2 2023 Electrical Supply Chain Outlook to make informed decisions in the ever-evolving electrical supply chain landscape. This report is a key to success in the electrical market. Access the full report to navigate the challenges and leverage the opportunities in the industry.
Raiven is a leading purchasing, procurement, and supply chain management platform enabling contractors and facility managers to digitally transform their procurement process and obtain significant discounts on their most commonly purchased items. Raiven's cloud-based procurement platform helps businesses purchase smarter and more efficiently through patent-pending AI algorithms that find in-stock products at the lowest prices. Learn more about Raiven at www.raiven.com and on LinkedIn or Facebook.