Southwire

Providing Innovative Solutions to the Industries We Support

Providing Innovative Solutions to the Industries we Support

North America Outlook (NA):

Tell us about Southwire and how it came to be a valuedpartnertoelectricalcontractorslike Inglett&Stubbs?

Southwire:

We have such a rich history and a really great story around our founder, Roy Richards, and his drive for innovation. Over 70 years ago, out of a desire to see his grandmother experience electricity in her home, Mr. Richards began making products for the electrical industry right here in Georgia. Over those seven decades, Southwire’s continuous pursuit to make the electrical contractor safer and more productive changed the industry by creating the SIMpull Solutions System. Southwire also diversified in strategic directions which allowed the company to look for other ways to benefit the electrical contractor while continuing to focus on its core business. Some of those areas are Southwire’s Tools, Components and Assembled Solutions (TCAS), and more recently, Southwire’s Services business. Southwire has expanded its vertical integration with things like our newly constructed state of the art rod mills that create the initial inputs for Southwire’s wire manufacturing. As North America’s largest wire and cable producer, contractors find great confidence in growing their own business by partnering with us for the long term.

NA:

Thatisarichahistory!So,whatexactlydoesa partnershipbetweenamanufacturerandthe electrical contractor consist of?

Southwire:

Well, to explain that, we should point out that we actually transact through a “channel”, in this case, of electrical distributors. Our channel partners are an integral part of getting the product to the contractor, but there is much that can be established through a relationship with the end user electrical contractor. Ongoing efforts with Inglett & Stubbs give both parties visibility into forecasting the upcoming market conditions. They share project pipeline insights while we advise on expected volume capacities and how those impact product lead times and availability. We can also co-navigate complex pricing issues that arise from the heavy copper and aluminum content of our products. Most importantly, Southwire has developed an entire suite of labor-saving solutions. We call those Southwire SIMpull Solutions™ that involve product, packaging and processes that allow us to continuously educate the electrical contractors on how to get the most value out of our innovation.

NA:

Thatisreallyinteresting.Howfarbackdoesthistype ofcollaborationgobetweenInglett&Stubbs and Southwire?

Southwire:

The collaboration between Inglett & Stubbs and Southwire began over 30 years ago. Southwire, the electrical distributor, and Inglett & Stubbs worked very closely together to successfully win projects in the Atlanta markets and the surrounding areas. The vision for success that we both share, along with the

relationships we formed over the years, has contributed to the manner in which we do business today.

NA:

Thathistorytrulyreflectsthepartnershipinplace. Wheredoyouseethingsgoingintothefuture?

Southwire:

Our CEO has been using the phrase, “It is a great time to be in the electrical industry, and an even better time to be at Southwire.” Our team in the commercial construction industry can really see the truth in that phrase. Contractors, like Inglett & Stubbs, still report a strong backlog and positive outlook in a general sense. In addition, there is so much momentum around various market verticals. With the electrification of literally everything, there continues to be tremendous opportunities in data centers, factory automation, electric vehicles, and smart cities/buildings to name a few.

It is critical that we continue to hear from our electrical contractors as to the challenges they face in these areas, whether it be new products, additional labor-saving innovations or other aspects. As we seek to maintain our leading market position, having their insights and developing answers to those problems is as important as it ever has been.

NA:

Doeslaborcontinuetobetheforemosttopicon everyone’smind?

Southwire:

I am sure there are some competing challenges, but yes, labor is still such a concern. Recent figures on the number of open positions in the construction industry as a whole showed a drastic drop. I think that reflects some slow down in the residential side. Throughout the country, commercial electrical contractors have not experienced an easing in the demand for more skilled and unskilled labor in the trade.

The battle for labor and retaining that labor once obtained also reflects the changes in our culture. The days are behind us where people are accepting of a job that leaves them completely exhausted at the end of the

day. The next generations are going to avoid that sort of work more and more. They lead dynamic, full lives, so they want to come home and have “gas in the tank” to play with their kids or go out with friends. The value proposition I mentioned earlier regarding our Southwire SIMpull Solutions™, continues to grow to include these facts. It is no longer only about the incremental savings to the company of being safer and more efficient with the labor, it is a deal breaker to not have the equipment and processes that open up the work to a broader audience.

NA:

Isupposeiftheworkcontinuestomoveawayfrom “bruteforce”activities,wewillcontinuetoseemore andmorewomeninthisspace?

Southwire:

Absolutely. We celebrated Women in Construction back in March, and the emphasis is greater than ever on getting more opportunity for everyone and creating a more diverse workforce. By instituting changes in the planning process and investing a nominal amount into the right products and equipment, this work becomes “smarter”. We see our contractor partners like Inglett & Stubbs taking full advantage of that fact and leading the way in the industry at reaching a female audience with their message.

NA:

Thatissuchapositivemessage.Circlingbacktothe newerbusinesssegmentsyoumentioned-Tools, Components,andAssembledSolutions,aswellas yourServicesBusiness-howdothosefactorintothe electricalcontractorrelationship?

Southwire:

Tools, Components and Assembled Solutions, known internally as “TCAS”, comprises everything from the feeder cable pulling equipment that was acquired as a core part of our solutions over a decade ago, to the more recently added Topaz family of fittings and components. Between those, we have full lines of hand tools, meters, extension cords and items that have had tremendous success in a retail setting and are gaining ground across

the commercial segment of the industry. Additionally, we have temporary power equipment, temporary and permanent lighting, and material handling equipment that extends to almost any contracting trade.

On the services side, we are making huge strides in a short time frame. Many of the offerings already commercialized include things more targeting outside line contractors or utilities like high voltage underground installation and medium voltage cable rejuvenation. We also acquired a software company in this space that helps utilities manage their assets effectively. However, exciting new things are happening that will impact commercial contractors like Inglett & Stubbs. We will be expanding on our solution set with things to help plan jobs efficiently on the front end. This will ensure that optimized solutions are planned for when wire and cable installation phases arrive on a project.

NA:

Insummary,howdoesallofthisworktogether,and wheredoyougofromherewiththeseideas?

Southwire:

The collaboration continues. I want to give one more mention to the fact that the channel partners who

coordinate the supply of our products to the contractors play a key role in the solutions and labor savings as well. They can execute on much of the innovation in the market and maintain various certifications to that end. While we will continue to push for solutions and innovations to solve today’s problems in the field, we have actually begun to set our sights on things being worked in the office of our contractor customers. Much of it is not ready to share, but we are really excited at various digital tools that can be leveraged by engineering or project management. I mentioned our Services Business before, but that team is moving forward with what we think will be game changing offerings to the estimating team and other stakeholders. We know your readers will be eager to hear more about these things, so stay tuned in to our social media platforms and follow along as we bring them to life.