Electricians in the US Industry Market Research Report Now Available from IBISWorld

Slowed construction activity across all building markets has hampered demand for electrical contractors. But as the economy improves and construction activity returns, demand and revenue will turn around. In the next five years, industry growth will be driven by improvements in the US real estate market as the residential, industrial, commercial and municipal building construction markets all rebound from cyclical lows. In addition to new construction, the industry is also expected to benefit from an increase in renovation and retrofitting activity. For these reasons, industry research firm IBISWorld has added a report on the Electricians industry to its growing industry report collection.

  • Share on TwitterShare on FacebookShare on Google+Share on LinkedInEmail a friend

Los Angeles, CA (PRWEB) March 14, 2012

The Electricians industry is one of the largest subcontracting sectors in the United States, with about $109.8 billion in revenue estimated for 2012. According to IBISWorld industry analyst Andrea Alegria, the industry was significantly set back by the US construction slump of recent years as firms generate income from electrical system installations in new residential and non-residential structures, as well as from repair, retrofit and maintenance work across the different construction markets. As the general level of economic activity slowed during the recession, developers, homebuilders and business owners canceled or postponed construction projects or capital spending that required electrical installation. As a result, demand for electrical contractors dropped in the five years to 2012, with revenue expected to decline at an average annual rate of 5.3% to $109.8 billion, from $144.4 billion in 2007. The industry experienced the steepest revenue decline in 2009, when revenue dropped 20.1% during the peak of the economic recession. Revenue is expected to increase by 8.3% in 2012 as recovery in the construction markets gains momentum.

As a result of weakened demand from the downstream construction markets, the number of firms, enterprises and industry jobs is also expected to decline over the five years from 2007. As economic pressures, including weakened demand, intensified competition and forced firms to lower prices, many companies were unable to compete. These firms then shut down branches and laid off employees in an effort to cut costs. Some went out of business or were acquired by larger companies. Industry enterprises are anticipated to decline at an annualized rate of 1.3% to total 198,766 in 2012, while establishments and jobs will have declined at a rate of 1.3% and 1.9% respectively. During the five years to 2017, industry growth will be driven by improvements in the US real estate markets as the residential, industrial, commercial and municipal building construction markets all rebound from cyclical lows. In addition to new construction, the industry is also expected to benefit from an increase in renovation and retrofitting activity.

The Electricians industry has a low level of concentration, as the top four largest firms account for about 5.1% of total industry revenue. The majority of industry operators are smaller firms that specialize in specific regions or industries. According to the US Census and IBISWorld estimates, about 56.3% of industry employer establishments contain five or less individuals, while non-employers account for about 60.5% of all industry establishments. Conversely, less than 1.0% of industry establishments contain more than 250 people. The industry's low level of concentration is expected to continue in five years to 2017. "More firms are expected to enter the market as the construction sector improves, but the majority of these operators will be smaller firms and non-employers that left the industry during the Great Recession," said Alegria. This trend is similar to other sectors that are dominated by small operators, as these entities often enter and exit an industry depending on changes in demand. For more information, visit IBISWorld’s Electricians report in the US industry page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This industry comprises establishments primarily engaged in one or more of the following: performing electrical work at the site (e.g. installing wiring); servicing electrical equipment at the site; and the combined activity of selling and installing electrical equipment. The electrical work performed includes new work, additions, alterations, and maintenance and repairs.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


Contact