For Immediate Release

Chicago, IL – October 12, 2009 – announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Electrical Products sector, including Hubbell Inc (HUB.B), Thomas & Betts (TNB), WESCO International (WCC), W.W. Grainger (GWW) and Anixter International (AXE).

Here is the latest on the Electrical Products sector:

The U.S. Electrical Products industry is highly fragmented, with the largest suppliers together accounting for only a small percentage of total sales. Some of the largest players in this market are Hubbell Inc (HUB.B) and Thomas & Betts (TNB), which distribute their own products. Other manufacturers sell through distributors such as WESCO International (WCC), W.W. Grainger (GWW) and Anixter International (AXE).

The primary factors influencing growth in this market are new construction activity (residential, industrial and commercial), regular repair and maintenance activities, large government construction projects and calamity-driven spending (natural disasters and terrorist attacks). The split between new construction revenue and rehabilitation/renovation revenue is roughly 2:1 in non-recessionary market conditions.

We track the Architecture Billings Index (ABI) for determining the condition of construction markets. The ABI indicates architectural billings, which lag construction spending by around 9-12 months. A score above 50 generally means growth in billings.

The ABI for August 2009 was 41.7, compared to 43.1 in July. The sector-wise breakdown was commercial/industrial (ABI 45.6), multi-family residential (ABI 43.4), mixed practice (ABI 41.4) and institutional, which includes religious and government, (ABI 37.5). The below-50 number for all sectors and regions across the U.S. indicates continued broad-based weakness across all construction markets in the next 9-12 months.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Mark Vickery
Web Content Editor



Zacks Investment Research