Paresources finds a niche in supplying electrical materials packages for the alternative energy segment.
Paresources Inc. might only be in its 15th year of business, but its clients can rest easy knowing their projects are in the hands of industry professionals with more than a half-century of experience in dealing with the supply and application of medium- and high-voltage electrical products.
The West Allis, Wis.-based firm is a premier supplier of electrical substation packages, including transmission and electrical distribution equipment. “What makes us different is that we understand how things go together,” Vice President of Business Development Jeff Stein says. “We liken our operations to a store; when you go into a store, you expect them to know what they are selling. We understand the applications of our clients, and we make recommendations based on that.”
The firm has successfully worked with multiple engineering firms and installation contractors to develop electrical and transmission solutions for several projects. These include wind farms that were developed by some of the big names in the industry: Invenergy, Horizon, Iberdrola and Acciona. It also works with the electrical contractors that serve the developers in creating the wind farms.
Paresources enjoys repeat business, but that doesn’t mean it takes every project that comes its way. “This is really a people and a knowledge business, so customers work with us because we perform for them,” Stein notes. “There is a relationship component to strive to meet and maintain. When the phone rings and there’s an issue, we make sure it gets resolved. That means finding a solution.”
The company sells directly to contractors and utilities. “We are selective in how we choose our customers; we are not only interested in being their next lowest bidder supplier. Clients that work on that basis will replace you with the next supplier,” Stein notes. “We do a great job for the customer in conjunction with our suppliers and we are fairly priced. We tend to get the same clients who come back to us, based on [our] level of service and satisfaction.”
Providing competitive prices is due in part to its relationships with multiple vendors. Paresources is not a stock-ready distributor, but rather sources the product – such as wire, insulators, apparatus, connectors and structural steel – from pre-qualified vendors.
Once Paresources is awarded a project, the project bill of material is used to ensure the project schedule stays on track. Because most projects are unique, it maintains limited inventory. “We tap into manufacturers that stock and supply the product we need,” Stein notes. “We seek out suppliers with the appropriate balance of price and lead time. Inventory is a shortcoming of project management. It comes down to figuring out how you manage the project on a timeline when every project is engineered to be unique. That’s the challenge.”
Buzzword: ‘Sustainability’
“Renewable energies are a hot topic right now, and we are working on projects for wind farms on a national level,” Stein explains. “The other buzzword right now is sustainable infrastructure, which consists of new transmission lines, electrical substations or electrical distribution substations.”
Alternative/renewable energy investment is the fastest-growing market for Paresources today, and Stein expects it will grow rapidly in the future. Despite having an abundant supply of wind and vast land area, wind power currently accounts for less than 2 percent of the total U.S. electricity needs.
Alternative energy projects account for about 80 percent of the volume of its work today, Stein says. These projects are a mix of new projects for ground-up developments and replacements or retrofits for existing utilities.
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