Electricians in the US Industry Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) September 29, 2013 -- The Electricians industry, one of the largest subcontracting industries in the United States, has short-circuited over the past five years due to massive contractions across its downstream construction markets. Firms generate a large portion of revenue from electrical system installations in new residential and nonresidential structures, as well as from repair, retrofit and maintenance work. As the general level of economic activity slowed during the recession, developers, home builders and business owners canceled or postponed construction projects that required electrical installation. As a result, demand for electrical contractors waned in the five years to 2013. At the height of the recession in 2009, revenue plummeted 18.3%, representing the industry's steepest revenue decline during the five-year period. Throughout this period, revenue is expected to decline at an average annual rate of 2.3%, to $120.2 billion in 2013.
As a result of weakened demand from the downstream construction markets, the number of firms in the Electricians industry, establishments and jobs has been volatile during the past five years. According to IBISWorld Industry Analyst Omar Khedr, “Because economic pressures reduced the pool of available work for electricians, intensified competition forced firms to lower prices, and many companies were unable to compete.” Nonemploying firms without the luxury of reducing wages or closing branches struggled to stay in business. However, as construction markets stabilized in 2011 and began growing in 2012, operators returned to the industry. Consequently, the number of industry enterprises is expected to rise slightly at an average annual rate of 0.2% during the five years to 2013.
Construction markets showed strong signs of life in 2012 when the value of residential construction posted growth of 12.3%. In turn, industry revenue is expected to reflect downstream demand growth, with an increase of 3.9% in 2013. In the five years to 2018, the industry is expected to fully recoup its recessionary losses. “In addition to new construction, the industry is also expected to benefit from an increase in renovation and retrofitting activity, particularly for green upgrades, such as energy efficiency projects,” says Khedr.
The Electricians industry has a very low level of concentration. The majority of industry operators are smaller firms that serve the single-family housing market in narrow geographic areas. The industry's low level of concentration is expected to continue in the five years to 2018. More firms are expected to enter the market as the construction sector improves, but the majority of these operators will be smaller firms and nonemployers that left the industry during the recession
For more information, visit IBISWorld’s Electricians in the US industry report 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
The Electricians industry is engaged in performing electrical work at a site (e.g. installing wiring), servicing electrical equipment at a site and the combined activity of selling and installing electrical equipment. The electrical work performed includes new work, additions, alterations, 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.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
Share this article