The electrical industry has been around for quite some time, yet it is continually shifting and adapting to an ever-changing world. In today’s article, we will discuss trends and news for the electrical industry within the United States.
The first electricians are alleged to have been hired in Chicago around 1893 for demonstrations and lighting at the Chicago fair. Now, over 126 years later, electricians can be hired to work on anything from small home projects to multimillion-dollar corporate and government buildings.
The industry is mature – yet is still experiencing steady and consistent growth over each year at small and sustainable rates. With that being said, the global pandemic of COVID-19 and its effects on the United States economy has taken a toll on the growth of the industry by decreasing the revenue of the entire industry by an estimate of 10.5%. But don’t worry! The electrical industry is projected to make a full recovery over the course of the next five years into 2025 and even exceed its previous market cap. Recovery will require adaptation, creativity, and a proactive approach, but there is light at the end of the tunnel.
The industry is affected by a variety of different aspects. First, the entire electrical industry is driven by the overarching construction industry. The largest component of projects for the industry consists of nonresidential building construction. Prime would like to extend a special thank you to its general contractors. We pride ourselves on forming strong, long-lasting relationships and have nothing but amazing things to say about our partners. It is these partnerships that allow us to continue to provide exceptional service and outstanding project results to our clientele. We are glad to be part of a team of strong, honest, and motivated construction professionals.
The electrical industry is also reliant on its system of suppliers. For example, the industry's success is fed through its relationships with electrical manufacturers, tool manufacturers, and their subsequent wholesalers. Prime Electrical recognizes this and prioritizes forming strong relationships with our vendors. It is their equipment that provides a modern and beautiful appearance to our projects. For that, we say thank you to our amazing vendors!
Beyond just relationships, a wide array of other factors influences the industry. Overall, the electrical industry acts as a subcategory of the construction industry and is subject to the strict regulations that accompany it. Regulations help protect employees and ensure that work gets done safely and properly. OSHA, NECA, National Electric Code, and other organizations regulate the industry with codes, rules, and guides. It is important that all electrical contractors and electricians are aware of regulations and are able to follow them to not only ensure their own safety but that of the client's future users as well.
The influence of technological change is also a major factor in determining industry news and trends for electricians for both the electrical and structured cabling portions of the industry. Businesses and organizations are driven by a need for new technology as they grow with the changing world. One example is the desire to go green and reduce their footprint – which simultaneously cuts costs and saves the environment.
Another possible influence is the need for new technology to increase efficiency – for example, modernized technology is especially important in science, medical, defense, communication, or manufacturing environments. Our Electrical Division specializes in helping businesses stay at the top of their industry with the support of the latest technology and the most demanding of systems. Structured cabling and low voltage are also driven by the need for technological change and updates with the Internet of Things, the increased need for security, and more. Our Structured Cabling Department prides itself on helping tackle these issues before problems occur.
All in all, the electrical industry is a fascinating industry with deep roots in the United States. The industry combines a twist of traditionalism with a drive for new technology and modernized installation techniques. The industry is affected by a variety of components and is resilient - moving steadily towards rebuilding and growth!
What is the History of Electricians?
Interested in learning more about the history of electricians? Tune into our next Electrician's blog as we will discuss the origin of electricity and its founding fathers. Learn more about the battle for the Chicago fair project between Edison and Tesla and the first electricians - as well as how all this shaped the way the industry works today.
Looking to Enter the Electrical Industry?
Prime Electrical Services takes on apprentices. We can even help you get set up with WECA or ABC! Our foremen, superintendents, and project managers are dedicated to facilitating learning in electrical apprentices. Many of our long time team members even joined us as apprentices and have transitioned into Journeyman electricians, project managers, foremen, or general foremen. We pride ourselves on growth. If you are thinking about joining the industry, visit our Join Our Team page to learn more.
Prime Electrical Services has a variety of divisions that address the wide needs of the electrical industry. Our Electrical Department expertly handles electrical contracting projects from tenant improvements, to design builds, to ground-up projects. Whatever our clients need, our Electrical Department with its client-focused project managers and experienced superintendents, foremen, and electricians can handle it. Our Structured Cabling Division addresses structured cabling and low voltage needs - focusing on updating technology, increasing efficiency, and heightening security. Finally, our Service Division helps businesses with smaller updates, minor issues, and small scale projects to ensure that our clients are covered through every stage and scale of need!
Breakdown of Projects in the Industry
As an electrician, there is never a dull moment! One of the interesting things about the career is the vast differences that exist between the projects and industries that an electrical contractor services. Residential units, such as apartment buildings, compose just over 1/5th of the market! Almost 1/5th the market is made up of institutional and educational organizations. Office buildings are almost 1/6th of construction, while industrial and commercial building trail just behind with each at 1/8th. Hotels, motels, and tourist destinations make up just 1/50th of the market. The remainder of the industry is designated between nonbuilding projects and MISC. nonresidential designs. No matter the industry, electricians have it covered!