Pelco Structural, HD Supply Utilities agree to distribution deal

Pelco Structural’s business could double as a result.

Claremore, Okla., February 25, 2010—Pelco Structural, a manufacturer of made-to-order pole assemblies for the traffic control, lighting, utility and communications industries, has agreed in principle to a primary distribution deal with HD Supply Utilities, North America’s largest electric utilities distributor. Per the agreement, Pelco will be the manufacture of choice for steel transmission and substation pole assemblies to HD Supply Utilities, expanding their utility pole solutions. HD Supply Utilities will distribute the pole assemblies to investor-owned, municipal and electric cooperative utilities in the United States.

HD Supply Utilities’ senior management will collaborate with Pelco leadership to devise and execute a go-to-market strategy, and provide access to a significantly-expanded market that includes more than 4,000 existing customers and 100+ outside sales representatives. Pelco Structural president Phil Albert calls the agreement, which takes effect March 15, a “gamechanger.”

“This deal is an excellent opportunity for Pelco Structural,” says Albert. “We have been supplying our poles to HD Supply Utilities for two years, and they know our commitment to providing superior products and excellent customer service. HD Supply Utilities provides market access to utilities throughout North America, which will likely double our business.”

As a result of the distribution agreement, Albert forecasts significant growth for Pelco before the end of 2010. “While our 200,000-square foot physical plant has the capacity to handle the projected increased workload, we do expect to add to our staff by about 50 percent this year,” predicts Albert. “Because our pole assemblies are made-to-order, we can provide a level of customer service and flexibility others can’t. That’s attractive to utilities providing electricity transmission, as well as taking on complicated infrastructure projects across the country.”

Training sessions for both Pelco and HD Supply Utilities team members will enable both companies to find “best fit” opportunities to sell utilities transmission and substation structures. “Our team is excited and ready to take on this challenge,” says Rick McClure, president, HD Supply Utilities. “Pelco Structural products enhance our current utility pole offerings, allowing our customers to benefit from an expanded portfolio of solutions. The distribution agreement is a good fit with out business model.”

Pelco Structural, LLC, designs, manufactures and delivers steel poles for infrastructure products used for traffic control, sports lighting, utility transmission and distribution, cellular telephone transmission and informational signage. The company’s automated cutting and forming equipment allows the custom manufacture of tapered steel poles, up to 50-foot lengths, in just over 5 minutes per unit. Pelco also provides delivery to destinations all over the continental United States as a part of its customer service; a licensed private carrier, Pelco employs its own over-the-road equipment and staff to deliver its products to 41 states.

As North America’s largest electric utilities distributor, HD Supply Utilities is a business of HD Supply, a leading wholesale distribution company, providing a broad range of products and services to professional customers in the infrastructure and energy, maintenance, repair and improvement and specialty construction markets. HD Supply is one of the largest diversified wholesale distributors in North America, with approximately 900 locations.

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