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Electrical Contractors Industry Profile Excerpt
| SIC Codes: 1731 NAICS Codes: 23821 Page Length: 10-12 Last Quarterly Update: 11/17/2008 View Sample Industry Profile |
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The very fragmented electrical contracting industry includes about 60,000 companies with combined annual revenue of $70 billion. Large firms include EMCOR Group, Quanta Services, Integrated Electrical Services, and the electrical divisions of large construction firms. Most firms have less than $500,000 in annual revenue, fewer than 10 employees, and work in a single market.
COMPETITIVE LANDSCAPE
Much 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 prefer to deal with contractors who can provide service in multiple markets.
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; electrical systems replacement in existing buildings ("retrofitting"); and maintenance, repair, and replacement work, also called "MRR" work.
Electrical contractors often work as subcontractors on larger projects. Sources of work are industrial buildings (27 percent) including plants, factories, airports, and warehouses; commercial buildings (28 percent) including hotels, restaurants, and office buildings; residential buildings (12 percent) such as single family houses and multifamily apartments; and infrastructure work for local governments and utilities (33 percent). Electrical work ...
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