Find out where your
capex dollars actually go.
The U.S. power supply chain adds 20–35% in channel cost to every materials transaction.
The Problem
Your organization is paying for layers
Your organization is paying for layers
it cannot see.
31.7%
This is what manufacturers keep.
Source: Hubbell, ABB, Eaton, GE Vernova 2024 annual reports (linked in calculator below)
21.4%
Distribution margin on every transaction.
Source: WESCO International Q4 2024 earnings release
5%
Standard manufacturer rep commission — priced in before you see a quote.
Source: Industry standard; Sean Dunham's direct experience operating EMS Partners
2+ years
Current lead time for large power transformers.
Source: Industry data, utility procurement filings
Benchmark Your Organization
What are your added channel costs?
Enter your annual materials capex. See what you should be paying versus what you actually pay, based on publicly reported data. No signup required.
$
90%
0% (all through distribution)
100% (all direct)
Large IOUs typically source 80–95% of materials capex direct from manufacturer. Small co-ops and munis often rely more heavily on distributors. Adjust to your organization's reality.
Your breakdown — annual capex, % direct
Your annual materials spend
$0
What you should be paying
$0
This is the manufacturer's true wholesale cost — the price you would pay if every layer between you and the factory were stripped away.
Here is what gets added on top.
+ Year-end rebate to distributor
Volume rebate paid by the manufacturer to the distributor at year end. Does not appear in distributor gross margin reporting. Industry average: 3% of wholesale price.
+$0
Source: Industry standard; Sean Dunham's direct experience operating EMS Partners (2017–2025).
Running total: $0
+ Manufacturer rep commission
Paid by the manufacturer to the rep agency on every transaction. Industry standard: 5% of wholesale price. Layered into the price before you ever see a quote.
+$0
Source: Industry standard; Sean Dunham's direct experience operating EMS Partners (2017–2025).
Running total: $0
+ Distributor margin
The largest electrical distributor in North America reports a 21.4% gross margin on $21.8B in 2024 revenue. This applies only to the portion of your capex that flows through distribution — currently 10% of your spend based on the slider above.
+$0
Running total: $0
A note on manufacturer margins. The baseline above already includes a fair manufacturer gross margin. Manufacturers pay rep commissions and year-end rebates out of their own margin — then watch prices rise on the buyer side anyway. This is not a manufacturer problem. It is a channel structure problem.
Hubbell 2024 10-K (33.8%) ·
ABB Q4 2024 (37.4%) ·
Eaton Q4 2024 (38.2%) ·
GE Vernova FY 2024 (17.4%)
What you could be saving
You are paying $0 more than the manufacturer's true wholesale cost.
That is 0% in addressable channel waste. Every number above is sourced to a public filing.
What to do with this
Bring these numbers to your next leadership meeting. The sources are public. The methodology is transparent. Your CFO deserves to know what is recoverable before your next rate case filing. Forward this to your procurement team. This is the benchmark conversation every utility should be having.
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