Electrical Contractors

Electrical Contractors

Brief Excerpt from Industry Overview Chapter:

Companies in this industry install and maintain electrical wiring and equipment. Major companies in the US include Cupertino Electric, EMCOR Group, Integrated Electrical Services, MYR Group, and Rosendin Electric.

The US electrical contracting industry includes about 70,000 companies with combined annual revenue of about $100 billion. High growth is forecast for the next two years. Key growth drivers include the strengthening economy and rising demand in the construction industry. Other demand drivers include modernization and retrofitting as commercial and residential owners upgrade their electrical systems to meet technological demands.

COMPETITIVE LANDSCAPE

Most electrical work is driven by new residential and nonresidential construction. Maintenance and repair work (sometimes called "facilities services") is less sensitive to real estate cycles. Larger companies have an advantage in getting contracts because of the increasing complexity of electrical projects and systems, and due to consolidation in the real estate management industry. Building managers typically prefer to deal with contractors who can provide service in multiple markets. Small companies can compete in local markets through service, word-of-mouth referrals, and relationships with general construction contractors. The industry is highly fragmented: 80 percent of electrical contracting firms have fewer than 10 employees.

PRODUCTS, OPERATIONS & TECHNOLOGY

Electrical contracting involves installing and maintaining electrical power systems, conduits, cables, control panels, generators, lighting systems, video and data systems, and low voltage systems (fire alarms). The three major categories of contracting work are new construction (50 percent of business); electrical systems replacement...