January 14, 2022

GNRC, Kohler Co.

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Sources and Background

26 U.S. residential automatic standby generator dealers in the Northeast (4), West (7), Midwest (8) and South (7), including 16 Generac and 10 Kohler dealers

REPEAT SOURCES 16 from OTR Global’s October report



Sales Moderate on Short Supply

Although demand for residential standby generators in the United States has remained robust, insufficient supply and lengthening lead times caused yy sales growth to slow during 4Q21 and have tempered 2022 expectations.

  • 4Q21 residential standby generator sales up 8%–11% yy (vs. up 28%–31% in 3Q21); sales weaker than expected for more dealers than in 3Q21 because of insufficient inventory
  • Lead times extended qq for 21 of 26 dealers (vs. 18 of 26 in 3Q21), including all 16 GNRC dealers
  • 4Q21 pricing up 9%–11% yy (vs. up 6%–8% in 3Q21); material, labor cost inflation drove installation costs up 11%–13% yy (vs. up 4%–6% in 3Q21)
  • Work-from-home needs driving demand for 13 of 26 sources during 4Q21 (vs. 6 of 26 in 3Q21) as pandemic defers back-to-office plans; consultations up yy for fewer sources vs. 3Q21
  • Area to Watch: 19 of 26 sources expect 2022 sales to increase yy (vs. 21 of 26 in October) and 5 expect declines (vs. 2 in October); many now expect lead time-driven backlogs to limit growth
T. Jarrett Harris