With prices continuing to stabilize for most electrical equipment segments in Q3, switchgear and electrical panels continue to suffer from volatility.
Irvine, California, November 10, 2022 – Although electrical supply prices remain stubbornly high, Q3 saw many key electrical segments’ price indexes stabilize, with price changes hovering under 1% for the entirety of the quarter. Despite this, certain key segments failed to find similar stability, as pricing on switchgear saw prices increase by as much as 5%.
Using data from the portfolio of members and suppliers in their network, Raiven, a leading developer of digital purchasing and procurement solutions for contractors, property owners, and maintenance professionals, estimates that, while further pricing relief is on the horizon, 2023 could see increased pressure on both pricing and availability for several key segments in the electrical supply chain.
Below is a summary of Q3 results and what to expect in Q4 for the electrical supply chain. If you would like to read the full report, view the Q4 2022 Electrical Supply Chain Outlook.
Q3 2022 – Trends and Developments
With some exceptions, the electrical supply chain in Q3 can largely be characterized as a breath of fresh air. The overall electrical price index stabilized after consecutive quarters of increasing volatility; however, despite this, two key segments still suffered significant price increases.
Switchgear saw continual price hikes since the beginning of 2022, and Q3 was no exception, with manufacturing delays and soaring input costs acting as the primary drivers. Additionally, electrical panels remain in short supply due to a variety of factors, with many showing backorder delivery dates as months away.
Q4 2022 – Expectations and Insights
Through analysis of pricing trends, inventories, and consumer spend, Raiven anticipates that price relief and stabilization, through a combination of recessionary monetary policies and energy price fluctuations, will continue through Q4 and into the beginning of 2023.
However, due to the electrical market’s dependence upon copper as a raw material, Raiven expects to see a general price increase in the electrical price index of 1-3% in Q2 and Q3 of 2023. Copper is becoming increasingly scarce, and shortages have the potential to put positive pressure on the price of electrical goods. While this has the potential to be largely offset by contractionary monetary policy, expect price increases across the board as supply shrinks.
Even though electrical supply prices are stabilizing in key areas, finding stock for switchgear, breakers and panels can still be very challenging. For these products, it’s important to plan ahead, maintain inventories, and schedule projects with sufficient lead times in mind.
For a detailed analysis of the electrical supply chain and a host of strategies and techniques for navigating the electrical supply chain, read Raiven’s full report on the Q4 2022 Electrical Supply Chain Outlook and begin capitalizing on the coming changes.
About Raiven
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.
