The home construction market in the United States is a massive contributor to the country's economy. The construction industry, which includes home construction, accounts for nearly 4% of the U.S. gross domestic product (GDP). Therefore, any fluctuations in this market can have significant impacts on related industries, such as the wholesale electrical industry.
In recent years, the U.S. home construction market has seen both ups and downs. However, the overall industry has been steadily growing over the past year, despite the pandemic's adverse effects on other sectors of the economy. This uptick has led to increased demand for electrical products and equipment, which has had solid effects on the wholesale electrical industry. As more homes are being built, the demand for electrical products such as wiring, switches, and lighting fixtures has gone up. This has led to an increase in production for electrical manufacturers, and wholesalers have had to stock up on more electrical products to meet the demand.
Another impact of a robust construction market is the pricing of electrical products. With increased demand, prices for electrical products tend to naturally creep up. This has resulted in higher costs for wholesalers, which often must be passed on to customers. This increase in pricing has affected construction companies' bottom line and have led to budgetary considerations for certain projects. In many cases, the increase in pricing leads contractors and end-users to shop around more than usual. Buyers are becoming more discerning - spending more time and energy researching options to keep costs down.
The current home construction market in the United States has had pointed effects on the wholesale electrical industry. Increased demand for electrical products has led to increased production, changes in product types, and higher prices. While in many cases, this has resulted in added competition within the industry, it has also created new opportunities for growth and innovation. As the home construction market continues to evolve, successful electrical distributors are adapting to meet the changing demands of customers. As your specialty wire & cable partner, DWC is here to help you meet the demands of this ever-changing market.
If you have questions about maximizing your wire & cable opportunities, we’re here to help! Please feel free to reach out to DWC for questions or quotes on a full range of residential wire & cable to serve the home construction market.