WESCO International, Inc. distributes electrical, industrial, and communication maintenance, repair, and operating (MRO) products; and original equipment manufacturers products and construction materials in North America and internationally. The company offers general supplies, such as wiring devices, fuses, terminals, connectors, boxes, enclosures, fittings, lugs, terminations, tapes, splicing and marking equipment, tools and testers, safety, personal protection, sealants, cutting tools, adhesives, consumables, fasteners, janitorial, and other MRO supplies. It also provides wires, cables, raceways, and metallic and non-metallic conduits; and communications and security products, including structured cabling systems, broadband products, low voltage specialty systems, specialty wire and cable products, equipment racks and cabinets, access controls, alarms, cameras, and paging and voice solutions. In addition, the company offers electrical distribution and controls comprising circuit breakers, transformers, switchboards, panel boards, metering products, and bus way products; lamps, fixtures, ballasts, and lighting control products; and motor control devices, drives, relays, timers, pushbuttons, operator interfaces, switches, sensors, interconnects, and surge and power protection products. Further, it provides supply chain management and logistics services; and value added services in the areas of construction, e-commerce, energy and sustainability, engineering, production support, safety and security, supply chain optimization, training, and working capital. The company serves industrial firms, electrical and data communications contractors, utilities, commercial organizations, institutions, and governmental entities. WESCO International, Inc. was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.
Business Analysis of WESCO International
The Industrial Goods & Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how WESCO International compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by WESCO International to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of WESCO International with an interactive chart.
- Revenue Growth: WESCO International reported a revenue growth of -2.4% year-on-year during 2016. Industrial Machinery Industry grew at -3.7% in the same period
- COGS share of Revenues: As a percentage of revenue, WESCO International spent 80.3% of its total revenues on COGS. Industrial Machinery industry average (COGS share of revenue) in the same period was 67.3%
- R&D share of Revenues: WESCO International R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, WESCO International spent 14.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Industrial Machinery industry average SG&A spending in the same period was 20.4%
- Inventory share of Revenues: As a percentage of revenue, WESCO International spent 11.2% of its total revenues on Inventories. Industrial Machinery industry average Inventory spending in the same period was 14.0%
- Accounts Payable share of Revenues: As a percentage of revenue, WESCO International invested 9.3% of its total revenues on Accounts Payable (A/P) Industrial Machinery industry average Accounts Payable investment in the same period was 9.4%
- Accounts Receivable share of Revenues: As a percentage of revenue, WESCO International invested 15.3% of its total revenues on Accounts Receivable (A/R). Industrial Machinery industry average Accounts Receivable investment in the same period was 16.2%
- PP&E share of Revenues: As a percentage of revenue, WESCO International invested 2.1% of its total revenues on Property, Plants, and Equipments (PP&E). Industrial Machinery industry average PPE investment in the same period was 15.0%
- Intangibles share of Revenues: As a percentage of revenue, WESCO International invested 28.8% of its total revenues on Intangibles. Industrial Machinery industry average Intangibles investment in the same period was 46.7%
- Net Margins: WESCO International Net Margins in the year 2016 were 1.4%. Industrial Machinery industry average Net Margins in the same period were 4.7%
Sector and Industry Association of WESCO International
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
WESCO International is associated with Industrials Sector Group, Industrial Goods & Services Sector, and Industrial Machinery Industry.
Industrial Goods & Services sector is comprised of the following industries: Industrial Conglomerates; Industrial Machinery; Electrical Components & Equipment; Electronic Equipment & Parts; Containers & Packaging. The definitions for each of the industries is as follows:
- Industrial Conglomerates industry includes Industrial companies engaged in three or more classes of business within the Industrial industry that differ substantially from each other.
- Industrial Machinery industry includes designers, manufacturers, distributors and installers of industrial machinery and factory equipment, such as machine tools, lathes, presses and assembly line equipment. It also includes makers of pollution control equipment, castings, pressings, welded shapes, structural steelwork, compressors, pumps, bearings, elevators and escalators.
- Electrical Components & Equipment industry consists of manufacturers and distributors of electrical parts for finished products, such as printed circuit boards for radios, televisions and other consumer electronics. It also includes makers of cables, wires, ceramics, transistors, electric adapters, fuel cells and security cameras. Manufacturers of Electric motors and generators and mechanical motion control products are also part of this industry.
- Electronic Equipment & Parts industry includes companies offering Manufacturing and Design services for Engineered Components and Products used in different industries. Companies providing Laser-based manufacturing products are part of this industry.
- Containers & Packaging industry includes producers and distributors of cardboard, bags, boxes, cans, drums, bottles, jars and glass used for packaging. Specialty Packaging Products and Pressure-Sensitive Materials producers are also part of this industry.
Industry Ranking of WESCO International
With $7.3 billion revenues, WESCO International ranked number 5 of all the companies in the US Industrial Machinery industry. There were a total of 92 public companies in the US Industrial Machinery industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Industrial Machinery industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
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- Get free data, charts, and analysis of WESCO Internationaland its peers on select key performance indicators by clicking the reports provided below