WESCO International, Inc., incorporated in 1993 and effectively formed in February
1994 upon acquiring a distribution business from Westinghouse Electric Corporation,
is a leading North American based distributor of products and provider of advanced
supply chain management and logistics services used primarily in industrial,
construction, utility and commercial, institutional and government (“CIG”)
markets. We are a leading provider of electrical, industrial, and communications
maintenance, repair and operating (“MRO”) and original equipment
manufacturers (“OEM”) products, construction materials, and advanced
supply chain management and logistics services. Our primary product categories
include general electrical and industrial supplies, wire, cable and conduit,
data and broadband communications, power distribution equipment, lighting and
lighting control systems, control and automation, motors, and safety.
We serve over 80,000 active customers globally through approximately 500 full
service branches primarily located in North America, with operations in 14 additional
countries and nine distribution centers located in the United States and Canada.
The Company employs approximately 9,300 employees worldwide. We distribute over
1,000,000 products, grouped into six categories, from more than 25,000 suppliers
utilizing a highly automated, proprietary electronic procurement and inventory
replenishment system.
In addition, we offer a comprehensive portfolio of value-added capabilities,
which includes supply chain management, logistics and transportation, procurement,
warehousing and inventory management, as well as kitting, limited assembly of
products and system installation. Our value-added capabilities, extensive geographic
reach, experienced workforce and broad product and supply chain solutions have
enabled us to grow our business and establish a leading position in North America.
Our global account, integrated supply and OEM programs provide customers with
regional, national, North American and global supply chain consolidation opportunities.
The demand for these programs has grown in recent years, driven primarily by
the desire of companies to reduce operating expenses by outsourcing operational
and administrative functions associated with the procurement, management and
utilization of MRO supplies and OEM components. We believe that significant
opportunities exist for further expansion of these programs. The total potential
in the United States for purchases of MRO and OEM supplies and services across
all industrial distribution market segments and channels is estimated to be
greater than $500 billion per an industry study.
According to a recent publication, despite weakness in commodity-driven end
markets, electrical distribution industry sales grew approximately 4% this year
following a similar rate last year. This expansion has been driven by the increased
use of electrical products in businesses and industries, new products and technologies,
the proliferation of enhanced building and safety codes, and use of the Internet.
Wholesale distributors have also grown as a result of a long-term shift in procurement
preferences that favor the use of distributors over direct relationships with
manufacturers. It is estimated that approximately 75% of electrical products
sold in the United States are delivered to the end user through the distribution
channel.
Our goal is to grow organically at a rate greater than that of our industry
while making accretive acquisitions. Our organic growth strategy focuses on
enhancing our sales and customer service capabilities to acquire new customers
and develop new end markets, broaden our product and service offerings and expand
our geographic footprint. We utilize LEAN continuous improvement initiatives
on a company-wide basis to deliver operational excellence and improve productivity.
We also extend our LEAN initiatives to customers to improve the efficiency and
effectiveness of their operations and supply chains. In addition, we seek to
generate a distinct competitive advantage through talent management and employee
development processes and programs.
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