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The residential construction market for electrical products remains highly localized, and success depends on the ability to supply the contractor reliably and conveniently, according to a new research report from the National Association of Electrical Distributors (NAED) Education & Research Foundation. The report was selected and funded by NAED's Channel Advantage Partnership.

The report, Emerging Trends and Traps in Residential Construction: The NAED Roadmap to Future Opportunities, looks beyond the current slowdown in residential construction and provides a long-term view of the opportunities and challenges for the distribution channel in reaching this market from now through 2012.

Overall, the residential construction market is expected to grow. The report cites studies forecasting 15 percent average annual growth in the number of housing units constructed between now and 2015, along with continued increases in remodeling expenditures.

"Over the long term, residential construction will continue to be a strong and consistent market to the traditional electrical distributor," the report said.
Unlike many industries which have consolidated, residential construction remains primarily in the hands of local builders and local electrical contractors, the report says, noting that the 350 largest homebuilders represent less than one-third of the U.S. market.