GE has been selling direct to large industrial customers for at least 12-14 years in my area. A select few GE factory sales reps call on large customers directly, quote to them directly the same way they would quote to a distributor, and have negotiated terms and conditions with the customer that cover liability on engineered equipment. These are the same reps that the distributors call to quote switchgear, motor control centers, transformers, prefabricated substations, and other large equipment. Obviously the GE distributor in the area is dissatisfied with this arrangement, but as Zog pointed out, for a sophisticated customer buying engineered equipment the distributor adds no value to the transaction but does add cost. As you mentioned, there is some administrative overhead that GE incurs, but it is worth it because we as customers have a much closer relationship with them and the communication channels are in place that enable them to offer highly custom equipment that would be difficult for a distributor to comprehend. I can see how a distributor does add value to the transaction for less sophisticated customers, which would include all customers without experienced power engineers and relay engineers working on the project - essentially everybody except the largest industrial customers.