Navigating Tariff Uncertainty as an Electrical Contractor

April 15, 2025

By Matthew Biswas

These three words put me into a catatonic shock – Supply Chain Disruption. It seems like just yesterday I was standing at a counter asking for products I’d bought 100’s of times before and being told they are on backorder with no expected delivery date. Circuit breakers, dimmers, panels, etc. all were in short supply. This made completing projects very difficult, and this put getting paid on hold until the supplies were in.  If that wasn’t bad enough, prices started to climb. Slowly and regularly the cost of wire, connectors, fittings, went up and up. Estimates approved months ago were now facing higher costs and lower margins. I thought all that was behind us.

Over the past few weeks, the constant talk about tariffs and counter tariffs have put a chill across the Canadian economy. With U.S. tariffs affecting imported materials and Canadian counter tariffs being added to items exported from the United States. Currently the United States-Mexico-Canada Agreement (USMCA) is in place and no new tariffs have been announced.  That could still change. The ripple effects of the tariffs announced on April 2nd will go on for weeks and months. Plus, the existing 25% tariff on Canadian steel and 10% on Canadian aluminum is bound to impact the cost of electrical boxes, wire, etc.

To add to this, many Canadian consumers have taken a “Canada First” action plan when they spend. Consumers are now asking “where is this made, who owns the company before spending their money.”  The rising costs and changing consumer behaviour could put a squeeze on your business?

Here are some of the kinds of cause and effects we can expect if all the tariff talk becomes a reality.

• Unpredictable material costs – Bidding on jobs has become riskier. A quote given today may no longer be profitable by the time materials need to be purchased.
• Delayed supply chains – Essential components, such as transformers, lighting fixtures, and panels, may be backordered for months due to international supply chain slowdowns.
• Pressure to absorb costs – Many contractors hesitate to raise prices, fearing they’ll lose customers to competitors who are willing to cut profits just to win jobs.
• Adjusting to a Canada first customer mindset some electrical components simply aren’t made in Canada so projects will continue to use supplies made in Canada, The U.S.A, Mexico and overseas.

It sounds ominous. But there is some relief.  Recently I got an email from a Liteline has reassuring me that their products will not beimpacted by international tariffs, meaning contractors using Liteline fixtures can count on predictable costs.

There’s more good news.

We’ve put together some ideas to keep your business profitable and adjust your purchasing patterns for you to stay competitive in a highly charged environment.

• Adjust Contract Terms to Account for Price Fluctuations
  • Include a price-adjustment clause in contracts for long-term projects to protect against sudden material cost increases.
  • Shorten the validity of quotes—instead of 60 days, consider 15 or 30 days.
  • Break your payment terms up into smaller pieces to keep your cash flowing during tough times.
• Diversify Your Supplier Network to ensure you are getting what you need when you need it.
  • Look for wholesalers who have they old stock with pre tariff pricing
  • Ask your supplies to lock in pricing when submitting a project quote
  • Build relationships with local wholesalers and ask for priority access to their inventory.
• Look at new purchasing methods
  • Consider bulk purchasing high-demand materials when prices are lower to mitigate future spikes. And/or partner with other electricians to get high quantity prices with no risk and storage costs. I always wanted to buy a barrel (7500) of Ideal Can-Twist Wire Connectors.
  • Offer substitute products to design specifications to take advantage of better pricing and possibly local manufacturing.
• Use the “Canada First” mantra to both educate your client and bring them extra value while making Canadian companies and jobs a priority
  • Many Consumers and businesses are willing to pay a premium for products and services that directly benefit Canadians. Keep this in mind when connecting with new clients and quoting projects.Inform your clients that many electrical wholesalers are local owned business keeping profits and higher paying jobs in Canada vs big box retail stores or international buying websites who pay lower wages and export profits to the U.S.A. or tax-free zones in the Caribbean etc.Position Canadian-made materials as a value-add: emphasize quality, reliability, faster shipping and stable pricing to customers. The big bonus is supporting local businesses and workers.
  • Remind clients that many mega manufacturers have diverse ownership structures and manufacturing centres – so it’s almost impossible to guarantee where any product began in the manufacturing process, who made it and where the profits will end up.

Who’s Supporting Canadian Electrical Contractors?

If you’re looking for Canadian-based manufacturers and distributors, here are some options:

Canadian Manufacturers (Designed & Built in Canada)

• Liteline – Lighting solutions (Sigma, Helios, Genesis, Klick)
• NESCO – Electrical enclosures and distribution equipment
• Hammond Manufacturing – Electrical enclosures, racks, and cabinets
• Techspan – Electrical and industrial products
• Hammond Power Solutions – Transformers
• Northern Transformers – Power transformers
• Ariel Tech – Enclosures and climate control solutions
• BL Lighting – LED lighting solutions
• Stanpro – Lighting and emergency lighting
• Arani – LED lighting and electrical products
• Northern Cables – Armored cable solutions
• ANAMET Canada – Conduits and fittings
• CES Transformers – Custom transformers
• Innovair Solutions (Stelpro, Ouellet, Britech, Flextherm) – HVAC and electrical equipment
• K-Line – High-voltage equipment and solutions
• Marcus Transformers – Dry type distribution, industrial control, auto transformers

Here are some global companies with Canadian manufacturing facilities and some of the products they manufacture in Canada:

• ABB: Produces a wide range of electrical equipment and automation technologies, including transformers, switchgear, and control systems.
• Nexans: Manufactures cables and cabling solutions for various industries, such as energy, telecommunications, and construction.
• IDEAL Industries: Produces electrical tools, connectors, and supplies for professional tradespeople.
• Eaton: Manufactures electrical components and systems, including circuit breakers, power distribution units, and uninterruptible power supplies (UPS).
• Mersen: Specializes in electrical power and advanced materials, producing items like industrial fuses, bus bars, cooling devices, capacitors, and heat exchangers.
• Siemens: Produces a diverse range of products, including industrial automation equipment, breakers, panels, switch gears, etc., etc.
• Nexans: Fergus, ON plant manufactures residential, commercial, industrial and distribution cables. Weyburn, SK plant manufactures medium voltage, underground, and overhead distribution wires. Nexans also has a copper rod mill in Montreal, QC.

You can find more manufacturers active in the Canadian market HERE

Canadian-Owned Electrical Distributors

• Gerrie Electric – Burlington, ON (Headquarters), with locations across Ontario
• Bartle & Gibson Co. Ltd. – Edmonton, AB (Headquarters), with branches in AB, BC, SK
• BJ Electric Supplies Ltd. – Winnipeg, MB
• Ideal Supply – Listowel, ON, with locations across Southwestern Ontario
• Daltco Electric – Kingston, ON, with locations in Brockville and Belleville
• Graybar – Headquartered in Halifax with 30 branches across Canada
• Guillevin – Global company founded in Montreal, with branches and brands throughout the country
• E.B. Horsman & Son – Surrey, BC (Headquarters), with branches across BC, AB, and SK
• Oscan Electrical Supplies Ltd. – Montreal, QC
• Paul Wolf Electric & Lighting Supply – Toronto, ON
• Marchand Electric – Sudbury, ON
• McLoughlan Supplies Limited – St. John’s, NL, with locations across Atlantic Canada
• House of Electrical Supplies – Vaughan, ON, with locations across the Greater Toronto Area
• Western Equipment Ltd. – Richmond, BC, with multiple locations across BC

Here are a couple global wholesalers that own brands founded in Canada:

These companies are owned by multinationals, although their brands have strong roots in the Canadian industry:

• Sonepar – Sesco, Electrozad, Dixon, Gescan, Lumen, MGM, Robertson Electric, Texcan
• Rexel – Rexel Atlantic, Westburne, Lineman’s Testing Laboratories of Canada Limited, Nedco

You can find more Canadian wholesalers HERE

The Covid-19 crisis taught us all many business lessons that we didn’t anticipate we’d ever need. The current tariff and trade war could put Canadian businesses and consumers may put us into a similar holding pattern that we saw from 2020 until 2022. 

As economic pressures mount, those who adapt to these changes and proactively manage costs will be in the strongest position to weather the storm and thrive in the evolving electrical industry.