- ID: 1052395
- June 2015
- Region: United States
- 10 pages
- First Research
Brief Excerpt from Industry Overview Chapter:
Companies in this industry install and maintain electrical wiring and equipment. Major companies include Bergelectric, EMCOR Group, Integrated Electrical Services, MYR Group, and Rosendin Electric (all based in the US).
Electrical contractors worldwide depend on construction activity as well as demand for renovation. Global revenue for construction of all types exceeds $7 trillion and is expected to surpass $15 trillion by 2025, according to Oxford Economics. Emerging markets such as China, Brazil, and India, are driving growth for the global construction industry. Strong population growth, an increasingly mobile labor pool, and rising standards of living in emerging markets are boosting demand for construction.
The US electrical contracting industry includes about 70,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $135 billion.
Most electrical work is driven by new residential and nonresidential construction activity. Operation, 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% of electrical contracting firms have fewer than 10 employees....