Wesco experienced a year of stagnant sales and profits in 2024 but remains committed to its ambitious digital transformation initiative.
For the year ending Dec. 31, 2024, Wesco reported flat sales of $21.818 billion. That compares with $22.385 billion in 2023. Net income also dipped, coming in at $660.2 million versus $708.1 million the previous year. Wesco is a leading public distributor of industrial supplies, electrical products, lighting systems, and power distribution equipment.
Despite this lackluster financial performance, Wesco is forging ahead with its $500 million digital transformation strategy. CEO John Engel expressed confidence in the company’s trajectory during the year-end earnings call with analysts.
“Key developments in 2024 have positioned us well for future margin expansion and industry outperformance,” Engel stated. “We’ve made considerable progress on our enterprise-wide digitalization efforts and broader business transformation. We’re more than halfway through our technology buildout, which will drive earnings growth through enhanced cross-selling and improved cost efficiencies.”
How Wesco approaches digital transformation
Wesco has already invested $270 million in this digital transformation initiative, focusing on upgrading its ecommerce platform, modernizing its supply chain, and enhancing digital tools. At Wesco’s 2024 Annual Investors Day conference, Engel detailed the next phase, which will emphasize artificial intelligence and other digital innovations.
“We are positioned for sustained growth, with strong tailwinds from trends such as AI-powered data centers, increased electrification, IoT, automation, and the reshoring of global supply chains,” he said.
Key achievements so far include the integration of generative AI analytics, automation of order fulfillment, and improvements in working capital efficiency. Wesco has also doubled the size of its technology team over the past 3.5 years, adding expertise in artificial intelligence and data science while expanding its global reach.
“We’ve streamlined backend systems and now provide 24/7 support for customers and suppliers through agile methodologies,” said chief digital and information officer Akash Khurana. “By the end of next year, we expect to complete the initial phases of our transformation, significantly enhancing our omnichannel experience.”
Wesco’s ecommerce upgrades aim to create a more seamless purchasing experience with greater transparency and efficiency. Engel reiterated that Wesco’s top priority is to invest in organic growth, leveraging digital transformation to drive long-term operational success.
“We remain fully committed to completing our business and digital transformation, ensuring Wesco stays at the forefront of industry innovation,” Engel concluded.
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