Gavitt Wire & Cable
From Buggy Whips to Complex Cables
Manufacturers need to be ever vigilant over their expenses, including utility costs. Given the complexity of the energy procurement landscape, energy sourcing can be a real challenge to keep budgets on track for many small- to medium-sized manufacturers. Enel X's procurement services team can help you navigate complex, competitive energy supply markets to buy energy at the best price and can work with you to design a holistic procurement strategy that works for your manufacturing business.
How One Company Manages to Keep Pace with Innovation
Gavitt Wire & Cable opened its doors in 1923 to sell buggy whips. Over the next 90 years, founder Lester Gavitt and his successors truly evolved, first using Gavitt's passion for ham radio to shift the braiding machines to wire manufacturing and then creating harness assemblies for telephone switchboards. Today, this family-owned New England manufacturer supplies aircraft, medical electronics, fire safety, and industrial markets with wire and cable components designed with special performance characteristics for high-tech products, such as military headsets and diagnostic medical equipment.
When he took the helm, current President Ray Chesson was determined to make Lester proud by continuing to modernize and making sales and customer service his top priority. But when it came to energy sourcing, Chesson admitted, "The last thing I have time to think about is energy costs and utilities." That's where Enel X came in.
Updating Gavitt's Energy Management
In 2005, when Gavitt needed to source electricity for its 800,000 kWh annual electricity load, Chesson sought to secure a fixed rate for the longest possible term at the right price for the company.
The energy advisor from Enel X used his knowledge of energy markets, relationships with New England energy suppliers, and experience sourcing energy for manufacturers to move Gavitt in the right direction.
Enel X took a direct sourcing approach, tapping into all potential suppliers, negotiating pricing and ensuring quotes were based on a level playing field. The result was a standard bid package with a simple, side-by-side comparison of offers.
The Improvement Continues
In 2012, when Chesson needed to renew electricity contracts for two of Gavitt's manufacturing facilities, the Enel X advisor kept a close eye on pricing trends, spotting an opportunity to lock in pricing that saved more than 20% on four-year contracts—and Chesson made his move.
Today, Chesson enjoys the optimal combination of price point, fixed-price product and contract term, plus the peace of mind knowing Gavitt's energy costs are controlled for the next four years. As Gavitt's leader, he looks to lower costs without affecting quality and service. Chesson says, "In the days of regulated energy markets, things were simpler. Now energy is too complicated to do on my own. The only way I can manage energy with confidence is through my partnership with Enel X."
Enel X takes what is fundamentally complicated and makes it simple, acting as an advocate and advisor for our customers to help them get the energy they need at the lowest possible rates, in the most efficient manner possible. Gavitt Wire & Cable was able to save 20% on its four-year contracts by partnering with Enel X.