Supply Chain and Operations
Hemant Porwal
Executive Vice President, Supply Chain and Operations
VIPEliteBusinessMeeting–June5,2025
Supply Chain Transformation Agenda
Key Enablers Strategy
Facility of the Future Strategy
Repetitivetasksareseamlesslyautomated, freeing employees tofocusonhigh-valuetasks drivingincreasedproductivity
* Color Coding Matches Colors on Network Segmentation Slide
Sustainability Achievements
• GoalAchievement–Wastetolandfillreductiongoalwasmetandexceeded in2023.
• IncreasedReporting–PrimarydataforGHGcovered94%of ourglobal locations.ContinuingresearchanddatacollectionforfutureScope3 reporting.
• FreightOptimization–Ongoingresearchintoshiftingfreightmodes.For example-overnightairtogroundorrailtransport.
• GreaterTransparency–Addedseveralmorecategoriesofglobalemployee populationdatainthe2024SustainabilityReport.
• IncreasedFleetSafety–600fleetvehicleshavebeeninstalledwithAI safetydevices.
• CustomerEfficiencies–OurcustomersavoidedpotentialCO2emissions totalingmorethan53,000MTCO2ewithWescoenergysolutions.
2030 Sustainability Goals
• Reducelandfillwasteintensityby 15%acrossourU.S.andCanadian locationsfroma2020baselineby2030.
Baseline:0.64
• Provide425,000hoursofsafety traininganddevelopmenttoour employeesby2030
• ReduceabsoluteScope1andScope2 greenhousegas(GHG)emissionsby 30%froma2021baselineby2030.
Baseline:84,253MTCO2e
• Achievea15%reductioninTotal RecordableIncidentRate(TRIR) by2030from2020baseline.
Baseline:0.47
We are taking actions to be a Sustainability Leader in B2B Distribution
Digital Transformation
Hemant Porwal, on behalf of Akash Khurana
Executive Vice President, Supply Chain and Operations
VIPEliteBusinessMeeting –June5,2025
Technology Trends and Impact Framework
Reimagining Our Ecosystem
Artificial Intelligence and Machine Learning
AIismoving fromexperimentationtoexecution and isbeingembeddedintocore workflows
Automation and Robotics
Cloud and Edge Computing
Cloudisnolonger aboutinfrastructure,it’s aboutagility,scalabilityandcollaboration
Digital Twin and Advanced Analytics
Intelligentautomationisaccelerating productivityinsupplychainsandoperations
Thephysicalanddigitalworldsare converging throughreal-timemodeling andsimulation
Cybersecurity and Zero Trust Architecture
Securityisshifting fromperimeter to identitybasedandisrisk-aware bydesign
Sustainable Tech and Smart Infrastructure
Tech-drivensustainabilityisnowa business imperative andnotjustaside project
Wesco’s Application of a Transformation Model
Bringing it to life with how we are applying these principles
Pillar
What Wesco is Doing Value to Ecosystem
Innovation Velocity
Embedding AI in pricing, fulfillment and sales support
Faster, more personalized service for customers and suppliers
Operational Discipline
Unified cloud-native platform, MDM and integration stack
Seamless onboarding, cleaner data and shared visibility
Cybersecurity by Design
Building a zero-trust architecture with risk-based governance
Shared trust, IP protection and operational continuity
We’re not just digitizing Wesco, we’re building an ecosystem where our partners thrive with us, securely and intelligently
Suppliers
Suppliers get better demand visibility
Wescocanbeabetter partnertooursuppliers byprovidinginventory informationand demandgeneration
Supplier integration
• More accurate demand signals
• Consolidating volumes in efficient channels
• Increased supply chain flexibility through better integration
Drive efficiency gains
• Optimizes rebates through consolidated volumes
• Reduces distribution costs through supply chain efficiency
• Streamlines global supply chain logistics opportunities
Working capital benefit
• Improves inventory locations to drive flexibility
• Centralized real-time inventory data to be accessible to multiple users
• Accelerate inventory receiving procedures
Customers
Integrated capabilities
• Integrated delivery management
• Reduced cost of serving complex demand
• For a food manufacturing customer, integrated digital commerce across channels to create better spend management controls
Tangible benefits for our customers
Providingmoremeaningful, value-addedrelationships
Simplified ordering and inventory insight
• Visibility of Wesco inventory alongside customers
• Automatic re-ordering from customer
• Same-day order and delivery for global software company using API stack
Current services beyond the product
• Integrated storeroom management
• Customized solutions: kitting and assembly
• Technical expertise: product and application training
Benefits of digital transformation across the value chain
Enablingbenefitsforcustomersandsuppliers
Suppliers
Enablesmoreaccuratedemand signalsthroughoutthevaluechain, consolidatingvolumesinefficient channelsandacceleratedworking capitalvelocity
Enhancedgrowthopportunitiesthrough visibilityoncrossselling,internalefficiency gainsfromreducedorganization complexity,platformforaccelerated organicgrowthandacquisitions
Customers
Steppedupintegrationwith customersforimprovedorder managementandinventory visibility, integrationofproducts withwiderrangeofWescoservices
Digital transformation touches all parts of the value chain enabling efficiency gains across the company and our partners
Trends in Labor and People Management
Chris Wolf
Executive Vice President and Chief Human Resources Officer
VIPEliteBusinessMeeting –June5,2025
Today’s Agenda
85% of skilled trade business owners report challenges with talent attraction and retention, with 67% citing a talent shortage due to an aging workforce and 43% noting limited interest from younger generations
Trends in Labor and People Management
Navigating Critical Labor Challenges
Wesco’s Observations and Strategies
Trends in Labor and People Management
01
Labor ShortagesandSkillGaps
• Companies facepersistent worker shortages,particularlyinskilledtrades,healthcare, andtechnology. TheU.S.projectsa4.9millionworkershortfallby 2032, drivenbyanagingworkforce, decliningbirth rates, andmismatchedskills.
02
AgingWorkforce andBrainDrain
• Over53% of U.S. skilledtradesworkersareover 45, with2.7millionBabyBoomers expectedtoretire by2030, exacerbatingtheskillsgap. Onlyoneworker enters thetradesfor everyfivewhoretire.
DecliningInterestinTrades AmongYounger Generations
• Theapplicationratefor technicaljobs(e.g.,electricians,plumbers)droppedby 49% between2020and 2022,partlyduetoaculturalemphasis onfour-year collegedegrees.
PreparingfortheFuture
• Overthenexttwoyears, economicuncertainty, emergingbusinessopportunities,andrapid technological advancementswilldriveworkforcestrategies.
Challenge: Labor Shortages and Skill Gaps
Our industriesfaceacuteshortagesofskilled workerssuchaselectricians, automationtechnicians, andlogistics specialists. US manufacturinghad622,000unfilledjobsinearly2024,withprojectionsof2.1millionby 2030.
CAUSES
• RetirementofSkilledWorkers:Aging BabyBoomersexitingtheworkforce reduceavailabletalent.
• DecliningVocationalEducation: Reducedemphasisontrade-focused traininginschools.
• RapidTechAdvancements:Adoptionof AI,automation,andgreentechrequires skillsmanyworkerslack.
• EconomicandPolicyShifts: Uncertaintyandchangingregulations disruptworkforceplanning.
IMPACTS SOLUTIONS
• IncreasedCosts:Higherwages(3.9% yoy,BLS, January2025)andrecruitment expensesstrainbudgets.
• ProjectDelays:Unfilledrolesandskill gapsdelayprojects, impacting profitabilityinconstructionand manufacturing.
• ReducedCompetitiveness:Inabilityto adoptnewtechnologiesduetoskill shortageshindersinnovation.
• TurnoverPressure:Skillmismatches leadtoemployeefrustration, exacerbating4%quitratesinhighturnover sectors(BLS, 2024).
• UpskillingPrograms:Investintrainingto bridgeskillsgaps(85%ofemployersplanto prioritizeupskilling).
• Cross-FunctionalTraining:Trainworkers inversatileskills(e.g.,projectmanagement, digitalliteracy) toadapttodiverseroles.
• TargetedRecruitment:Usedigital marketingonplatformslikeInstagram,X andTikToktoattractyoungerworkers.
• AIinRecruitment:UseAItoolslikeresume parsingandchatbotstostreamlinehiring.
• ImplementKnowledgeTransferSystems: Usedigitaltoolstocaptureexpertisefrom retiringworkersfor broaderroles.
Challenge: Aging Workforce and Brain Drain
Theretirementofexperiencedworkers, particularlyBaby Boomers,leadingtoalossofinstitutional knowledgeandexpertise("braindrain")incriticalindustries, especiallyconstructionand manufacturing.
CAUSES
• DemographicShifts:BabyBoomers (born1946–1964) areretiringinlarge numbers.
• LowBirthRates:Feweryounger workerstoreplaceretireesdueto decliningbirthrates.
• PandemicAcceleration:Early retirementsspikedduringCOVID-19.
• LackofKnowledgeTransfer: Insufficientprocessestopassexpertise toyoungerworkers.
IMPACTS SOLUTIONS
• KnowledgeLoss:Criticalexpertise leaveswithretirees,affectinginnovation andefficiency.
• IncreasedCosts:Companiesfacehigher recruitmentandtrainingcoststoreplace experiencedworkers.
• SuccessionChallenges:Lackof preparedsuccessorsdisruptsleadership andoperations.
• CompetitiveDisadvantage:Firmslose edgeifunabletoretainorreplaceskilled workers.
• MentorshipPrograms:Implementtwo-way mentorshipstofacilitateknowledgetransfer betweengenerations.
• RevitalizeApprenticeships:Expand programsandpublic-privatepartnerships withhighschoolsandcommunitycolleges.
• SuccessionPlanning:Createformalizedjob successiontimetables,startpreparingearly.
• UpskillingInitiatives:Trainyoungerworkers tofillgapsleftbyretireesbeforetheyretire.
• IncentivesforRetention:Offerflexible schedules, reducedphysicaldemands,and pensionbonusestodelayretirements.
Challenge: Declining Interest Among Younger Workers
Declininginterest amongMillennials andGenZ inpursuing careersinskilled trades, favoringwhite-collar or tech-relatedjobs.
CAUSES
• CulturalBias:Societalemphasison collegedegreesastheprimarypathto success.
• Misconceptions:Tradesperceivedas alwaysphysicallydemandingor unstable.
• LackofExposure:Fewervocational programsinschoollimitearlyexposure.
• AlternativeIncomeSources:Younger generationspursuedigitalcommerce (e.g.,socialmedia, gigeconomy).
IMPACTS
• ShrinkingTalentPipeline:Fewer entrantsintosomeindustriesworsen shortages.
• IncreasedCompetition:Companies competeforasmallertalentpool, drivingupwages.
• InnovationLag:Lackofnewtalent hindersadoptionofmoderntrade techniques.
• ProjectDelays:Insufficientworkers delaycriticalprojects,impacting profitability.
SOLUTIONS
• RebrandTrades:Usesocialmedia campaignstochallengestereotypesand highlightcareer benefits.
• EarlyExposure:Partnerwithschoolsfor careerfairs,internships, andco-op programs.
• ShowcaseOpportunities:Emphasize competitivesalaries, jobsecurity, and advancementpotential.
• ScholarshipsandSupport:Offerfinancial aidandnetworksforalltypesofpeopleto entertrades.
Challenge: Preparing for the Future
Economicuncertainty, emergingbusinessopportunities, andrapidtechadvancementswilldriveworkforce strategies,requiringcompaniestoadapthiring, training, andleadershipdevelopmenttoremaincompetitive.
CAUSES IMPACTS
• EconomicUncertainty:Globalriskslike inflationandtradedisruptionscreate unpredictablelaborconditions.
• EmergingBusinessAreas:Growthin sectorslikecleanenergy,AI, andinfrastructuredemandsnewskillsandroles.
• RapidTechAdvancements:Adoptionof AI,automation,andgreenrequires upskillingandreskilling.
• ShiftingWorkforceExpectations: Youngerworkersprioritizeflexibility, purpose,andtech-drivenroles.
• IncreasedCosts:Upskillingfornew technologiesandhiringforemerging rolesstrainbudgets.
• CompetitivePressure:Firmsslowto adapttotechadvancementsorgrowth opportunitieslosemarketshareto innovativecompetitors.
• TalentMismatches:Rapidtechchanges outpaceworkforceskills,risking productivitylossesandinnovationlag.
• LeadershipChallenges:Lackofagile leadershindersadaptationtoeconomic andtechnologicalshifts.
SOLUTIONS
• UpskillingPrograms:Investintrainingto bridgeskillsgaps(85%ofemployersplanto prioritizeupskilling).
• DevelopAgileLeaders:Trainleadersin changemanagementanddual-focus strategies(short-termresults, long-term transformation)
• ScenarioPlanningforUncertainty:Model workforceneedsunderdifferenteconomic scenariostoensureflexibility.
• EngageYoungerWorkers:Promotetechdrivenandpurpose-drivenrolestoalign withGenZvalues.
Human Resources Leadership Challenge: Achieve short term results while managing transformational change
Costcuttingpressuretorespondtoeconomicuncertainty,fundtransformational investmentsand alignwithevolvingbusinessneeds
• Realignorganizationstructures,rolesandresourcestogrowthopportunities
• Centralizefunctionsfor greaterefficiency
• AssesshowAIandother newtechnologiesarereshapingworkandroles
• Reskillingandupskillingvs.recruitingpeoplewithrequiredcapabilities
• Respondingtoaccelerateddecisionmaking
• Developchangereadyleaderswhocandealwithdisruption
• Buildagilityintotheorganizationculture
Navigating Growth in Today’s Market
Dave Schulz
Executive Vice President and Chief Financial Officer
VIPEliteBusinessMeeting –June5,2025
Recent Views from Goldman Sachs
Globally, we expect real GDP growth will slow to 2.4% yoy in 2025, reflecting headwinds from higher US tariffs. We expect global core inflation to remain relatively steady this year and end the year at around 2.8% as the tariffdriven boost to inflation in the US is largely offset by disinflationary impulses from declines in shelter inflation and wage inflation as well as lower energy prices.
In the US, we expect real GDP growth to slow to 1.1% in 2025 on a Q4/Q4 basis as the rise in tariffs we expect and elevated policy uncertainty weigh on disposable income, consumer spending, and business investment. We see a 35% probability of entering a recession over the next 12 months. We expect core PCE inflation to rise to 3.6% yoy by end-2025 reflecting a boost from higher tariffs. We expect the unemployment rate to rise to 4.5% by end-2025.
We expect the Fed to deliver a series of three 25bp rate cuts starting in December and cut at every other meeting to a terminal rate range of 3.53.75%.
2025 – Mixed Economic Indicators
AprilConsumerConfidenceIndexDeclined8pts M/M
Keyquestion: impactofuncertainty,interestratesand tariffs
2025 – Mixed Economic Indicators
Nonresidential Construction Expected to Decline
Data Center A Larger Share of Office Construction
2025 Strategic Business Unit Sales Growth Drivers
Expect organic growth of 2.5% to 6.5%; reported growth to be flat to up 4%
