RESCO Expands Moorhead, MN Warehouse, Boosts Inventory Capacity

Moorhead, MN – Rural Electric Supply Cooperative (RESCO), a member-owned, not-for-profit electrical wholesaler and one of the Midwest’s largest full-line distributors of high-voltage electrical products, is pleased to announce an expansion of its supply warehouse in Moorhead, MN, a move that will enable it to better serve its electric cooperative members and utility customers throughout the state.

Scheduled for completion in November 2023, the expansion will provide an additional 15,000 square feet of storage space, allowing RESCO to house more material in a controlled environment, while at the same time improve overall operational productivity.

Once completed, the total storage space of the Moorhead warehouse will be almost 34,300 square feet.

“Having a reliable and dependable source of electrical supplies, materials, and equipment is a vital component of a utility’s operations,” says Matt Brandrup, president and CEO of RESCO. And while utilities can effectively plan out their annual supply needs, weather-related events can have an instant impact on their operations.

“The Moorhead warehouse expansion will enable us to increase our inventory capacity, so that our members and customers can quickly acquire the products they need, when they need them, whether for routine maintenance, planned projects, or unexpected occurrences.”

RESCO’s Moorhead warehouse has played a vital role in the distribution of high-voltage materials, supplies, and equipment to rural electric cooperatives, municipalities, and utility companies throughout Minnesota and the Dakotas.

Mt. Pleasant, MI – Rural Electric Supply Cooperative (RESCO), a member-owned, not-for-profit electrical wholesaler and one of the Midwest’s largest full-line distributors of high-voltage electrical products, is pleased to announce an expansion of its supply warehouse in Mt. Pleasant, MI, a move that will enable it to better serve its electric cooperative members and utility customers throughout the state.

RESCO last month completed the expansion of the warehouse interior, which included the addition of approximately 4,500 square feet of storage space. The property’s exterior will also undergo an expansion this year, which will result in an additional 3,500 square feet.

Once completed, the expansion projects will provide RESCO with a total of 41,000 square feet of combined indoor and outdoor space.

“The need for quick and reliable access to electrical supplies is a year-round consideration for utility providers, whether for planned projects, routine maintenance, or unexpected weather occurrences,” says Matt Brandrup, president and CEO of RESCO. “These materials are essential for delivering power to the households, businesses, schools, and farms that depend on them to keep the power and the lights on.

“Expanding our warehouse space in Mt. Pleasant enables us to continue to grow and house our ever-increasing inventory, thereby ensuring our members and customers can get the materials they need, when they need them.”

Beginning operations in 1998, RESCO’s Mt. Pleasant warehouse plays a vital role in the distribution of high-voltage materials, supplies, and equipment to rural electric cooperatives, municipalities, and utility companies throughout Michigan.

Faced with continued long lead times and higher cost of supplies, equipment, and materials, utilities can lessen the impact of current supply chain disruptions by focusing on multi-year planning of projects and construction. RESCO is also helping members and customers combat these challenges by carrying $42 million in product inventory in its warehouses. President and CEO Matt Brandrup discussed this topic in a recent article published by the National Rural Electric Cooperative Association (NRECA). To read the article, click here.

‘Supply chain’ and ‘inflation’. The two words all of us have probably heard enough over the past year. Both have greatly impacted the operations of utilities and the everyday lives of their members and customers, with seemingly no short-term end in sight.

In terms of supply chain disruptions, more than half of supply chain executives don’t expect a “return to normal” until the first half of 2024 or beyond, according to survey results reported by SupplyChainBrain.

And with inflation at its highest level since November 1981, fears of an impending recession–which some experts believe has already begun–are on the minds of businesses and consumers alike.

While it’s difficult for organizations to pivot their operations during unstable market conditions without skipping a beat, recognizing potential operational concerns early on and taking a proactive approach to address them can help weather the storm.

That’s the approach RESCO has taken, increasing our utility product inventory by over 70% in the past 12 months alone. We’re pleased to report that, as of the writing of this article, our inventory stands at over $42 million — an all-time record high for RESCO.

And thanks to our strong relationships with our manufacturer partners and our dynamic Purchasing Department, we’re also able to pivot quickly and obtain additional quantities of specific products when needed, such as when severe weather impacts your service area.

This record amount of inventory is much more than just a number. It’s an assurance that your utility has access to the materials, supplies, and equipment that you need, when you need it. Utility operations–whether it’s regular maintenance, storm-related repairs, or ongoing projects–cannot wait for better market conditions to develop or for the supply chain to normalize. That’s why we take pride in our ability to provide reliable availability and prompt delivery of products you need.

We thank you for your partnership with RESCO and look forward to continued growth of our relationship with your utility.

Williston, ND – Rural Electric Supply Cooperative (RESCO), a member-owned, not-for-profit electrical wholesaler and one of the Midwest’s largest full-line distributors of high-voltage electrical products, has shipped a record amount of equipment, supplies, and materials to its electric cooperative members following a strong blizzard that downed utility poles and power lines in parts of the Dakotas and Eastern Montana in late April, resulting in power outages for thousands of households and businesses.

Employees at RESCO’s Williston, ND, warehouse shipped 370,000 pieces of storm material over the last 30-plus days, a record amount over that specific time frame (the typical storm response duration is four to seven days, which makes this situation very unique).

These products were essential in helping its cooperative members restore power to their customers.

“This strong blizzard that struck the region April 22-24 delivered a swift and powerful blow to the region’s power grid, with thousands of poles and lines downed due to the rain, snow, ice, and intense winds that the storm unleashed on us,” said Chris Pederson, RESCO regional vice president. “Given the widespread amount of damage, our cooperative members needed supplies and materials well in excess of what they normally would for storm-related repairs, and we responded immediately.”

Pederson adds that the RESCO warehouse team continues to process deliveries and ship orders daily to member cooperatives still in need of materials to repair damage and restore power in areas impacted by the April storm.

“When an event like this occurs, it’s an ‘all-hands-on-deck’ scenario, and our dedicated teams in both the Williston and Moorhead, MN, warehouses, as well as the Purchasing Department in our Middleton, WI, office, did a fantastic job of keeping up with inbound shipments and outbound orders of products,” he said.

As we’ve reported previously (and which you’ve undoubtedly experienced in your own operations), supply chain and inflation issues have plagued our sector over the past year or so, impacting lead times and creating inventory challenges.

While we are not any closer to a correction in the market, we are noticing a stabilization in the market, both in terms of product lead times and inflationary impacts on pricing. We’re hopeful that this stabilization will soon turn into positive adjustments within the supply chain and, ultimately, normalized operations of our members and customers.

As we’ve done throughout our history as your valued partner, we’ll continue to provide the knowledge, support, and products you depend on for efficiently and successfully managing your utility operations. Here are a few things that we’re currently focused on (and for you and your organization to keep in mind) as we continue to successfully navigate through the current logistical challenges:

• Record inventory on hand. In the January edition of this newsletter, we reported record inventory across all of our warehouses. And that amount continues to rise. As of April, we now are housing $35 million of inventory in our warehouses. This enables us to meet your requests for equipment, supplies, and materials, whether for routine maintenance, emergency repair services, or planned construction or projects. Adequate inventory is always a major focus of RESCO, and we will continue to expand our inventory to meet our members’ and customers’ needs
• Opening of our new Iowa office/warehouse. We completed our move from our previous location in Ankeny to our new and larger office and warehouse facility in Elkhart the last week in April. Our new building—which encompasses 30,000 square-feet—enables us to store two-and-a-half times the inventory that the Ankeny location did, allowing us to better service the needs of not only our Iowa members and customers, but those from surrounding states as well. The added space allows for even greater inventory.

As an extension of your organization, your success is our success. We thank you for your continued support of RESCOrder placement for 2023. Given the extended lead times our manufacturer partners continue to face, placing orders early for 2023 is essential in helping us ensure that product is available when you need it. If you haven’t already done so, please work with your account representative to identity needs for the upcoming year.