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Generac Holdings CEO On The Impact Of Weather Events On Company's Sales

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Shares of generator manufacturer Generac Holdings Inc. (NYSE: GNRC) were up significantly on expectations that the storm in along the east coast will lead to an increase in demand of generators. Aaron Jagdfeld, CEO of Generac Holdings, was on CNBC to discuss how the company is gearing itself for the big storm.

Do Events Like These Cause A Spike In Sales?

“We’ll see on the small gasoline-powered portable generators, which really is he first line of defense for somebody who doesn’t have a permanently installed unit,” Jagdfeld said. “We could some sales increase ahead of events like these, but generally you won’t see sales spike tremendously until you really kind of see the extent of whatever damage may occur from this and how much, how many people are actually without power on the back end of it in terms of this, in therm of homeowners looking to protect things in the future.”

How Bad This Storm Is Going To Be In Terms Of Power Loss?

“We are not meteorologists here,” Jagdfeld replied. “We are manufacturers, but at the same time we have watched a lot of events over the years and this one certainly has the makings of heavy, wet snow and wind. People love their trees and then unfortunately the trees are the ones pulling down the power lines and the infrastructure in this country has been under invested in for a long, long time.”

Do Sustained Weather Patterns Play More Severe Roles In Generator Sales Than One Off Blizzards?

“Well, we are generator manufacturer so outages do play a role, but what we found is that if you just look at reliability, the grid in general, that under investment I talked about, the grid is less reliable today on an everyday basis…and so we think reliability is going to continue to be a problem. Generators are going to continue to be something that people need as a back-up plan,” Jagdfeld added.

Posted-In: Aaron Jagdfeld CNBC JunoMedia

 

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