Siemens Projects on Demand: How Distributors Are Cutting Lead Times on Power Distribution Equipment

At the NAED National Meeting in Orlando, Trade Hounds CEO David Bauders sat down with Chris York, Vice President Channel at Siemens, to talk about Siemens Projects on Demand (POD) and how it’s changing the way distributors and contractors think about speed, inventory, and value-added assembly in the electrical industry.

In this conversation, Chris explains how POD works, where it fits in the construction ecosystem, and why it creates new opportunities for distributors.

What is Siemens Projects on Demand (POD), and how does it work in practice?

Our distributors can inventory what is normally a custom-built solution out of our factories, and they can build that custom solution using inventory and get that solution to the market very quickly.

Are these value-added assemblies like panels or similar electrical products?

There is value that they add. They assemble, which means they have to have a little bit of technical competency, but they don't have to have a UL certification or anything like that. They need to carry inventory, be able to price it to the market, and assemble it for contractors.

What support does Siemens provide to distributors who participate in POD?

Once they decide they're on board, they need to have space in their warehouse—not just to carry the equipment, but also dedicated assembly space. We help them learn how to put the product together safely and with high quality, using our UL. We also help them market it.

If we do all that right, customers in the market know the product is available. Once they know it's available, many customers start using it because it's a very quick solution.

How does POD change lead times compared to traditional factory-built electrical equipment?

Lead times in our industry have come down quite a bit, but they're still three to four times higher than historical norms. We have some power distribution equipment that can take almost a year to get, whereas lead times used to be around 12 weeks.

This isn't a highly customizable solution, and it's not highly specified equipment, but it still gets the job done. A 4,000-amp service with whatever branches you need in that power distribution equipment can be delivered in as little as a week if it's in inventory, instead of waiting almost a year in some cases.

How does POD fit into Siemens' broader strategy of helping contractors work faster and stay productive?

This is our avenue to get them equipment quickly. That is the number one problem that we're trying to solve. We obviously can still do quick ships out of our factories. But keep in mind, when you're doing a quick ship in a factory, you're essentially jumping the line ahead of the other 50 weeks of lead time that we have.

To jumping the line, the cost is a lot because we're expediting equipment, especially if it's highly specified, where there are all kinds of parts in that supply chain.

What I like about this solution is that it gives us a reasonably priced quick-ship option, as long as you're willing to give up the highly specialized part.

What types of projects are best suited for POD—and where does it not apply?

Not all projects are quick-turn projects that need a rapid-ship solution, but quite a number of them are. Let's say we're building an airport. There's a whole planning cycle around that. There's a bid process and a submittal process. Those are planned-out projects.

But we also work on a lot of projects in our markets where the electrical system needs to be delivered, installed, and turned on much faster than traditional lead times allow.

Where I would say it doesn't apply is longer-term, highly specified work. Many projects in the construction world—hospitals, airports, schools, and universities, for example—have long planning cycles and detailed specifications.

The thing about POD is that it's not highly specified. It's a 4,000-amp service with these branch breakers. But if you want brass bolts, it doesn't have brass bolts. That's the type of detail that falls into a highly specified project.

What workforce capabilities do distributors need in order to support POD?

Most distributors are selling, and they have technical resources. They do project management and manage the inventory they're trying to sell. They do need to be ready to do a little bit of assembly, but I would consider it light assembly. It's not a heavy lift from a labor standpoint, but there is labor involved.

The workforce development question is: do I have people in my organization who are willing to put their hands on this equipment and learn how to use those tools properly.

Does Siemens provide training for distributors on how to assemble POD products?

We have a whole program where we train them on what products to offer and then how to put those together with the right tools. We even give them tools in a lot of cases to help them do it, because we want the product to hit the field in a high-quality state.

How should distributors think about pricing the value-added assembly work?

When you're a distributor, your project business—where you share a purchase order and the product flows to the job site—is kind of low touch and a lot of times lower margin. But when you're carrying inventory, that's money, that's cash. Money costs money. And then you're putting your labor into the solution as well. You can't do that for low margins and make money.

It's really meant to be a higher-margin product for our distributor. They have more invested—they have time and labor invested as well. But it's meant to be a reasonable premium to the market. The market will pay a premium for that because they're getting speed.

How do contractors learn that POD is available through local distributors?

We certainly want to market it, but this is something that a distributor has to make a conscious decision that they want to do. Once they do, we help them, but we need to market it. The market needs to know that our distributors have it.

We need our salespeople out selling that. And then once contractors start using this solution, they know that's a go-to they can rely on. When I have quick-turn work, I know this distributor has Siemens POD. They can get me quick-turn solutions, and then they start using it. Once you prime the pump, it starts flowing.

How should contractors evaluate which types of projects are a good fit for POD?

It is a standardized product. Many contractors do design-build work, meaning it's not super highly specified plan-and-spec work. They're doing electrical work for certain users. They can design around the types of solutions we have, and they're more than willing to do that if they know they can get the solution quickly.

Power distribution equipment right now is not the easiest to get. If you have a solution you can offer to your customers as a contractor quickly, and that's part of your bid to them and you've got your supply chain already established, that's a value that you should be able to charge for.

Which contractor sizes is POD designed for?

I would say all, because even a lot of smaller contractors, medium-sized contractors, and even big contractors do small work. You mentioned service work earlier—it's a perfect opportunity to sell POD. Even large contractors do small work.

Final Thoughts

As labor shortages and supply chain challenges continue to impact the electrical industry, programs like Siemens Projects on Demand offer a practical way to get equipment to the field faster. By combining distributor inventory, light assembly, and contractor demand for speed, POD helps bridge the gap between traditional lead times and real-world project timelines.

Want to hear more?

Watch the full conversation with Chris below.