2024 Profile of the Electrical Contractor Reveals Industry Growth and Shifting Trends

 WASHINGTON, July 16, 2024 /PRNewswire/ -- The 2024 Profile of the Electrical Contractor, an in-depth analysis of the electrical construction market conducted by ELECTRICAL CONTRACTOR Magazine, which is published by NECA, is now available.  This report, developed through a comprehensive survey conducted by Renaissance Research and Consulting, offers a more than 100-page detailed report and a 14-page summary for industry professionals. The Profile represents a snapshot of operations over a point in time with questions related to firm size, revenue, age demographics, project type and confidence in economic growth. 

Key findings from the 2024 report include: 

• Firm Growth and Revenue Increase: 
  • The trend of increasing firm size continues, with 51% of firms classified as small (1-9 employees) and 42% generating $1 million or less in revenue.
  • There is a significant decline in firms with 1-4 employees, and a rise in firms with 10+ employees. Revenue has notably increased, especially for firms earning over $2.5 million.
  • Both NECA and non-NECA firms have seen revenue growth, with NECA firms experiencing a significant increase in the percentage of firms earning over $10 million.
• Employee and Demographic Shifts: 
  • 56% of firms maintained their employee numbers, while 28% increased their workforce. The number of young electrical contractors (18-34) has slightly but significantly increased to 3%. 
  • Electrical contractors in larger firms (10+ employees) tend to be younger, with an average age of 56.6 years, compared to 60.7 years in smaller firms (1-9 employees). 
• Revenue Sources and Project Types:
  
  • Average revenue from Commercial, Industrial, Institutional (CII), and non-building projects is increasing, while residential projects remain stable.
    
  • New construction revenue has risen to 36.6%, indicating economic strength. 
    
  • Contractors are increasingly engaged in high-tech and value-added areas, including electric vehicle charging, solar projects, and smart home technology. 
• Purchasing and Brand Influence:
  • There is a significant shift in purchasing from electrical distributors to online sources. 
  • Contractors continue to have a high influence on brand selection and project specifications, with availability and price being the main factors. 

The report summary is separated into two segments available in the July and August print editions of ELECTRICAL CONTRACTOR Magazine and online at ecmag.com. The full report will be available online at ecmag.com/profile which is also where archived reports dating back to 2000 can be found.

SOURCE National Electrical Contractors Assoc Inc.