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1 Electrical & Power Study May 2013

2 Introduction & Methodology Objective This study was conducted by Consulting-Specifying Engineer to evaluate customer awareness, usage of and preference for suppliers of various types of electrical and power products and systems. Sample The sample was selected from recipients of Consulting-Specifying Engineer for whom addresses were available. Only respondents involved in the buying/specifying process for electrical and power products and services were asked topic-related questions. Method Subscribers were sent an asking them to participate in this study. The included a URL linked to the questionnaire. Data collected: April 23, 2013, through May 7, 2013 The survey covered 16 product categories. Respondents were asked to select those product categories for which they are involved in the purchase/specification process. Number of respondents: 476 Margin of error: +/- 5.5 at a 95% confidence level Incentive: Survey participants were offered the opportunity to receive a summary report of this study s findings.

3 Product Specification Data

4 Electrical/Power Systems & Equipment Specified The top 3 products in which respondents reported currently specifying are: circuit breakers, fuses, etc. (91%); electrical distribution (90%); and cable, wire, etc. (88%). 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Currently Specify Q: What types of electrical or power systems or equipment do you currently specify? (n= 268) Q: What types of electrical or power systems do you expect to specify in the next 12 to 24 months? (n= 268) Expect to specify in next mos.

5 Types of Specifications The top 3 electrical or power systems specifications in which respondents reported always using are: performance spec totally open (14%); open spec, engineering approval or brand required (9%); and closed spec, multiple sources (7%). 70% 63% 60% 56% 57% 50% 51% 50% 49% 40% 37% 38% 41% 30% 20% 10% 0% 7% 27% 10% Closed spec, multiple sources 16% 20% 30% 12% 1% 1% 1% Closed spec, single source Closed spec, single source and alternate 24% Open spec, engineering approval or brand not required 9% 28% 12% Open spec, engineering approval or brand required 14% 26% 10% Performance spec totally open 5% 5% Performance spec, written around one manufacturer Always Frequently Rarely Never Q: Of the total electrical or power systems specifications issued by your firm, how often are you using each of the following? (n=267)

6 Challenges Facing Engineers The top 3 challenges in which respondents reported being moderately or extremely difficult are: inadequate budget for good design (85%); speed of project delivery (71%); and interoperability and complementing systems (54%). Interoperability and complementing systems 5% 41% 42% 12% Codes and standards changing frequently 9% 45% 38% 9% Speed of project delivery 4% 24% 49% 22% Inadequate budget for good design 2% 13% 48% 37% Energy efficiency 11% 47% 38% 5% Not difficult Fairly difficult Moderately difficult Extremely difficult Q: Using a 4-point scale where 1 is "not difficult" and 4 is "extremely difficult," please rate the difficulty posed by each of the following challenges facing engineers in electrical or power systems and design. (n=266)

7 Product Payback Period (1 of 4) The top 3 products in which respondents reported a payback period of less than 6 months are: software and analysis tools (9%); cable, wire, etc. (8%); and surge suppression (7%). 0% 10% 20% 30% 40% 50% Cable, wire, etc. Cable management, raceways, busways, etc. Circuit breakers, fuses, etc. Cogeneration Communication systems (low-voltage) Less than 6 months 6 to 12 months 13 to 18 months 19 to 24 months 25 to 30 months 31 to 36 months More than 36 months Q: What payback period is typically requested by your clients for each of the items listed below? (n=262)

8 Product Payback Period (2 of 4) The top 3 products in which respondents reported a payback period of less than 6 months are: software and analysis tools (9%); cable, wire, etc. (8%); and surge suppression (7%). 0% 10% 20% 30% 40% 50% Controls, network controls, etc. Electrical distribution Electrical generation Electrical inspection and test equipment Enclosures, equipment enclosures Less than 6 months 6 to 12 months 13 to 18 months 19 to 24 months 25 to 30 months 31 to 36 months More than 36 months Q: What payback period is typically requested by your clients for each of the items listed below? (n=262)

9 Product Payback Period (3 of 4) The top 3 products in which respondents reported a payback period of less than 6 months are: software and analysis tools (9%); cable, wire, etc. (8%); and surge suppression (7%). 0% 10% 20% 30% 40% 50% Energy storage Engines Emergency and standby power Meters, submeters, smart meters Motors and drives Less than 6 months 6 to 12 months 13 to 18 months 19 to 24 months 25 to 30 months 31 to 36 months More than 36 months Q: What payback period is typically requested by your clients for each of the items listed below? (n=262)

10 Product Payback Period (4 of 4) The top 3 products in which respondents reported a payback period of less than 6 months are: software and analysis tools (9%); cable, wire, etc. (8%); and surge suppression (7%). 0% 10% 20% 30% 40% 50% Renewable energy Transfer switches, ATS, etc. Transformers Software and analysis tools Surge suppression Less than 6 months 6 to 12 months 13 to 18 months 19 to 24 months 25 to 30 months 31 to 36 months More than 36 months Q: What payback period is typically requested by your clients for each of the items listed below? (n=262)

11 Importance of Qualities (1 of 2) The top 3 factors in which respondents reported being very important in the specification of electrical or power systems are: product quality (77%); service support (47%); and manufacturer s reputation (45%). 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 54% 49% 42% 52% 34% 34% 31% 31% 28% 19% 21% 19% 13% 11% 12% 7% 1% 1% 1% 1% 1% 1% 2% Design support Energy efficiency of product Initial product cost 55% Interoperability 47% Lead/delivery time 53% Lifecycle cost 57% 23% Manufacturer's complete product series or system capabilities Not important Somewhat important Important Very important Q: In your design/specification activity, how important is each of the following factors to your specification of electrical or power systems over another? (n= 351)

12 Importance of Qualities (2 of 2) The top 3 factors in which respondents reported being very important in the specification of electrical or power systems are: product quality (77%); service support ( 47%); and manufacturer s reputation (45%). 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 47% 45% 48% 42% 22% 77% 47% 42% 14% 12% 7% 8% 9% 1% 1% 1% 1% 1% 0% 1% Manufacturer's reputation Previous experience with manufacturer 59% 29% Product quality Service support Technical advantage of product 50% Warranty 34% Not important Somewhat important Important Very important Q: In your design/specification activity, how important is each of the following factors to your specification of electrical or power systems over another? (n= 351)

13 Product Manufacturers (1 of 6) The top 3 product manufacturers in which respondents reported being familiar with prior to the questionnaire are: Schneider Electric (72%); Eaton (62%); and Siemens Building Technologies (61%). 0% 10% 20% 30% 40% 50% 60% 70% 80% ABB Inc. ASCO Power Technologies Baldor Electric Co. Basler Electric Co. Carlo Gavazzi Inc. Caterpillar Inc. Currently specify Formerly specified Aware of but never specified Not familiar Q: Listed are several electrical and power systems product manufacturers. Please indicate the extent to which you were familiar with each company prior to seeing it listed on this questionnaire. (n= 350)

14 Product Manufacturers (2 of 6) The top 3 product manufacturers in which respondents reported being familiar with prior to the questionnaire are: Schneider Electric (72%); Eaton (62%); and Siemens Building Technologies (61%). 0% 10% 20% 30% 40% 50% 60% 70% 80% Chillicothe Metal Co. Inc. Cooper B-Line Systems Inc. Cooper Bussmann Electronics Cooper Wiring Cummins Power Generation E-Mon Currently specify Formerly specified Aware of but never specified Not familiar Q: Listed are several electrical and power systems product manufacturers. Please indicate the extent to which you were familiar with each company prior to seeing it listed on this questionnaire. (n= 350)

15 Product Manufacturers (3 of 6) The top 3 product manufacturers in which respondents reported being familiar with prior to the questionnaire are: Schneider Electric (72%); Eaton (62%); and Siemens Building Technologies (61%). 0% 10% 20% 30% 40% 50% 60% 70% 80% Eaton Emerson Network Power / Liebert Corp. Enercon Engineering Inc. GE Energy Generac Power Systems Inc. Hoffman Enclosures/Pentair Technical Products Currently specify Formerly specified Aware of but never specified Not familiar Q: Listed are several electrical and power systems product manufacturers. Please indicate the extent to which you were familiar with each company prior to seeing it listed on this questionnaire. (n= 350)

16 Product Manufacturers (4 of 6) The top 3 product manufacturers in which respondents reported being familiar with prior to the questionnaire are: Schneider Electric (72%); Eaton (62%); and Siemens Building Technologies (61%). 0% 10% 20% 30% 40% 50% 60% 70% 80% Hubbell Power Systems Legrand / Cablofil Inc. Littelfuse, Inc. MCG Surge Protection Mersen MTU Onsite Energy Corp. Currently specify Formerly specified Aware of but never specified Not familiar Q: Listed are several electrical and power systems product manufacturers. Please indicate the extent to which you were familiar with each company prior to seeing it listed on this questionnaire. (n= 350)

17 Product Manufacturers (5 of 6) The top 3 product manufacturers in which respondents reported being familiar with prior to the questionnaire are: Schneider Electric (72%); Eaton (62%); and Siemens Building Technologies (61%). 0% 10% 20% 30% 40% 50% 60% 70% 80% Pass & Seymour/Legrand Pritchard Brown Redwood Systems Russelectric Inc. S&C Electric Co. Schneider Electric Siemens Building Technologies Currently specify Formerly specified Aware of but never specified Not familiar Q: Listed are several electrical and power systems product manufacturers. Please indicate the extent to which you were familiar with each company prior to seeing it listed on this questionnaire. (n= 350)

18 Product Manufacturers (6 of 6) The top 3 product manufacturers in which respondents reported being familiar with prior to the questionnaire are: Schneider Electric (72%); Eaton (62%); and Siemens Building Technologies (61%). 0% 10% 20% 30% 40% 50% 60% 70% 80% Snake Tray Southwire Stored Energy Systems Thomas & Betts Universal Electric Wiremold/Legrand Yaskawa Electric America Inc. Currently specify Formerly specified Aware of but never specified Not familiar Q: Listed are several electrical and power systems product manufacturers. Please indicate the extent to which you were familiar with each company prior to seeing it listed on this questionnaire. (n= 350)

19 Respondent Profile

20 Building Structures Sixty percent of respondents specify systems for office buildings, while only 14% of respondents specify systems for correctional facilities. 70% 60% 60% 56% 50% 40% 30% 20% 43% 42% 42% 37% 36% 34% 31% 28% 26% 24% 20% 14% 10% 4% 0% Q: For which of the following types of building structures do you specify, design or make product selections? (n=474)

21 Type of Company Seventy-one percent of respondents reported being employed at a consulting engineering firm or an in-house engineering department. 9% 5% 15% 50% 21% Consulting Engineering Firm In-House Engineering For: Government Agency, Public Utility Company, Industrial/Commercial Institutional Firm Engineering/Architectural; Architectural/Engineering Firm Design/Build, Construction/Contracting Firm Other Q: Which of the following best describes your company? (n=472)

22 Involvement in Product Selections Approximately three-quarters (77%) of respondents determine requirements/write specs for electrical or power systems design. 90% 80% 70% 60% 77% 66% 62% 60% 50% 40% 36% 30% 20% 10% 0% 22% 11% 3% Q: In what ways, if any, are you involved in the specification of electrical or power systems? (n=474)

23 Job Title Over half (55%) of the respondents reported their job title/function as professional engineer. 5% 3% 3% 34% 55% Professional Engineer or Design, Consulting, Project, Plant, Mechanical, Electrical, Staff, Safety or System Engineer Owner, CEO, President, Vice President, Director, General Manager, Project/Group Leader, Chief Engineer or Senior Engineer Other Management and Senior Engineering Management titles not listed above Other Engineering title not listed above Other Q: Please indicate your primary job title/function. (n=473)

24 Years in Design & Respondent Age Thirty-seven percent of respondents have been involved in electrical or power systems for 30 or more years with only 7% of respondents being involved less than 5 years. All ages are represented, with a majority (70%) being older than 46 years old. 10 to 19 19% 5 to 9 8% Less than 5 7% 30 or more 37% 36 to 40 6% 25 to 30 5% 41 to 45 10% Prefer not to say 3% 31 to 35 5% Under 25 1% 56 to 60 15% 46 to 50 14% 20 to 29 29% 51 to 55 13% 61 to 65 14% Over 65 14% Years in Design Q: For how many years have you been involved in electrical or power systems? (n=472) Q: Which of the following ranges includes your current age? (n=470) Respondent Age

25 Office Location One-fifth (20%) of respondents reported that their office is located in the East North Central region of the U.S., while 3% reported that their office is based outside the U.S. 3% 5% 7% 20% 6% 7% 16% 7% 14% 15% East North Central (OH, IN, IL, MI, WI) Middle Atlantic (NY, NJ, PA) South Atlantic (DE, MD, DC, VA, WV, NC, SC, GA, FL) Pacific (AK, WA, OR, CA, HI) West South Central (AR, LA, OK, TX) Mountain (MT, ID, WY, CO, NM, AZ, UT, NV) East South Central (KY, TN, AL, MS) Q: In what region of the country is your office located? (n=473) West North Central (MN, IA, MO, ND, SD, NE, KS) New England (ME, NH, VT, MA, RI, CT) Based outside the U.S.

26 Number of Employees & Annual Revenue About a third (34%) of respondents reported 1 to 19 employees at their firm. Thirty percent reported annual mechanical, electrical, plumbing, and fire protection design revenue of less than $1 million. $10,000,001 to $20 million 8% 20 to 99 employees 17% 1 to 19 employees 34% $5,000,001 to $10 million 15% Less than $1 million 30% 100 to 499 employees 20% More than $20 million 19% 500 or more employees 29% $1,000,001 to $5 million 28% Q: Approximately how many people are employed by your firm? (n=468) Q: Which of the following ranges best describes your firm's annual mechanical, electrical, plumbing, and fire protection design revenue? (n=469)

27 Annual Volume & Equipment Vendors Involvement Thirty-six percent of respondents reported a total annual dollar amount of $5 million for electrical or power systems specified by their firm. Almost half (49%) reported equipment vendors being frequently involved in helping complete specifications. $750,001 to $1.0 million 10% $3.1 million to $5.0 million 8% Always involved 5% Never involved 3% $500,001 to $750,000 11% $1.1 million to $3.0 million 16% Less than $500,000 19% More than $5.0 million 36% Occasionally involved 43% Frequently involved 49% Q: What is the total annual dollar amount of electrical or power systems specified by your firm for new and existing buildings? (n=353) Q: How often are equipment vendors involved in helping you complete your specifications? (n=266)

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