Welcome to ElectricalTrends.
Thursday, January 31, 2013
Houston, We Have Another Distributor
Most have heard the 1970 phrase "Houston, we have a problem" and now we have another distributor coming to town.
After acquiring Mustang Electric last year and reportedly seeking to acquire someone in Houston, Mayer Electric is moving into Houston. The Southeast's largest independent regional distributor is making a major move in the Dallas market. Interestingly, the first move is hiring the ex-president and ex-svp sales for Wholesale Electric, one of Houston's premier distributors. Since making this move we understand that they've hired (or are in the process of hiring) some people away from other leading distributors and have leased a building (ex-Summit location).
Some thoughts ...
After acquiring Mustang Electric last year and reportedly seeking to acquire someone in Houston, Mayer Electric is moving into Houston. The Southeast's largest independent regional distributor is making a major move in the Dallas market. Interestingly, the first move is hiring the ex-president and ex-svp sales for Wholesale Electric, one of Houston's premier distributors. Since making this move we understand that they've hired (or are in the process of hiring) some people away from other leading distributors and have leased a building (ex-Summit location).
Some thoughts ...
- Mayer is willing to spend much money to develop a presence in Houston after not being able to make an acquisition. Senior managers from other distributors don't come cheap.
- For two senior managers from Wholesale to leave, it makes one wonder about changes at Wholesale Electric.
- Given their prior roles, we presume others from Wholesale may join them as it is not unusually for a manager to seek to bring some of their people with them.
- We understand that Mayer and Dealers, both AD distributors, used to do much networking together and had a close relationship. We don't know if the personal relationship is damaged, but the moral of the story becomes "be careful of networking too much with next door neighbors, they may decide to move into your house!" Reportedly Dealers is not overly pleased having Mayer in Texas (and perhaps there was a tacit understanding not to play in each others' backyard.)
Subscribe to:
Post Comments (Atom)
i'm in the houston market and have heard that 38 people are all set to leave wholesale to go work with bob and greg. good luck to the future wholesale. such a shame this is happening to the company that clyde built
ReplyDeleteYeah, but it ain't the same company Clyde built, is it? This is certainly not surprising.
ReplyDeleteAnother great Houston distributor bites the dust. Anyone remember what happened to Warren Electric?
ReplyDeleteDeja Vu
If you have something to say at least write you name, chickens.
ReplyDeleteSam H.
I wouldn't be so quick to look for the obituary for Wholesale. The people I know in the market tell me that the two fellows that Mayer is hiring were "invited" to leave Wholesale and were effectively sidelined sometime last year. The word I have on them is that neither was particularly missed at the places they left to go to Wholesale and not widely loved and respected at Wholesale. The words "slick" and "self centered" were used more than once in describing both of them. Mayer is making a big bet here, but I suspect it is anything but a sure thing. They may find out there are plenty of tough competitors in Houston who will gladly help raise the ante on the bet and make it a much higher stakes game than Mayer may have anticipated. They may end up wishing they had done a better job looking at the horses they are hitching their wagon to. Mayer is a very good company but this looks a lot like an ego based overreach.
ReplyDeleteI thought Wes was smarter that this. I can smell the money burning...
ReplyDeleteI have been in the electrical industry for over 20 years and seen many people come and go. The bottom line is two people leaving a company that has been in businees over 65 years is not going to change the world. Wholesale saw what happened to Warren and are clearly not going down that road. Wholesale is strong and going forward, with or without certain people. So hold on Houston, Wholesale is still on top.
ReplyDeleteAnd from the movie Taken.
I don't know who you are. I don't know what you want. If you're looking for ransom, I can tell you I don't have money... but what I do have are a very particular set of skills. Skills I have acquired over a very long career. Skills that make me a nightmare for people like you. If you let my Business go now, that will be the end of it - I will not look for you, I will not pursue you... but if you don't, I will look for you, I will find you... and I will defeat you.
I agree. In all my years in the business, I can only count several times when a few hotshots moving to a new location made much difference. Mayer may be willing to throw money around to get some people in Houston, but they are probably not going to get the real top players. Top players can look past a short term guarantee and see the long hard climb they will face making something out of nothing. I suspect if Wholesale blows up it will be from the inside, not from Mayer doing some headhunting and their people have a lot better options than a new player like Mayer. Wonder if Wholesale has some lawyers ready to make things tough if the new Mayer boys color outside the lines?
ReplyDeleteWholesale will miss the two guys exiting last week. Educated, experienced, polished businessmen. However, there are many many more like that out there and we are looking at every one of them. The phones are ringing, emailing, and interviewing as we blog today. Wholesale is not near death. We have new management and new owners with many long time employees that are excited about the new era at Wholesale.
ReplyDeleteThe achievements of an organization are the results of the combined effort of each individual.”
ReplyDelete“People who work together will win, whether it be against complex defenses, or the problems of modern society.”
“Individual commitment to a group effort – that is what makes a team work, a company work, a society work, a civilization work.”
Wholesale Electric is here to stay.....moving forward in a positive direction!
I am not so sure that two people leaving are going to cause a fine company like Wholesale to go out of business.
ReplyDeleteThere have been a number of people who have left Graybar and it didn't help them one or another.
So, I suspect that Wholesale will continue down the path that made them a good company.
The Houston market is a big and tough arena. Time will tell if Mayer makes a real go of it.
Networking at marketing groups has taken on a new meaning with smart phones that can record all sorts conversations.
ReplyDeleteWow....
Received my Electrical Trends this morning..How many folks have left Wholesale? Figured there would be an update by now!
ReplyDeleteThere is nothing to report! Except for the normal warehouse and a couple of inside sales people leaving for various reasons, everyone is still there.
Delete