It was obvious when the completed surveys started to roll in this year that the top electrical contractors in the country were feeling pretty good about their business. More than half of this elite group met their revenue projections in 2014, and nearly a third exceeded their goal. In addition, almost half the group characterized the business climate as “strong,” and one-third was able to adjust their bids for greater profits. When we summed up the revenue totals for all 50 companies, we weren’t surprised at all to see this was the fourth year in a row of record sales.
Four companies on the list posted year-over-year gains of more than 25%, including:
- Parson Electric LLC (27.03%)
- Power Design, Inc. (26.98%)
- Sprig Electric Co. (46.25%)
- Cleveland Electric Co. (28.26%)
Six more posted at least a 15% increase in revenue. Heck, even those companies that posted a year-over-year decline in revenue did so at pretty low percentage rates.
One reason this year’s overall revenue total was so much higher than last year is the addition of a massive new player from the power sector. Quanta Services, Houston, provides EPC services for the electric power and oil and natural gas industries. They’re the biggest transmission and distribution specialty contractor in the United States, and they also claim to be the largest employer of certified linemen in North America. We’re excited to add this well-respected company to our annual listing.
So where did all of this Top 50 revenue come from? As identified by our survey participants, these five market sectors generated the greatest dollar volume of work.
- Health care
- Data center/mission critical
- Private office
- Education/institution
- Power (utilities and T&D)
According to the Top 50, these same markets are expected to remain strong through the end of this year. The only market sector in this group that was projected to drop off a bit was the education/institution market.
One positive outcome from all of this growth is the need to expand operations and hire additional staff. A little more than two-thirds of the Top 50 added headcount in 2014, and 70% plan to add more staff this year. But all of this growth doesn’t come without challenges. Companies are now reporting they’re having difficulty finding and hiring the talent they need to keep up with the work in front of them. So it appears the construction industry once again finds itself dealing with a shortage of qualified workers.
The most difficult positions to fill right now in the electrical market are foreman, project manager, job superintendent, and journeyman electrician. As has been the case in past ramped-up construction cycles, contractors across the country are scrambling to fill open positions and train the next generation of field workers. The companies that planned for this a few years back will be the ones we’ll see on next year’s Top 50 listing.
For a much more detailed look at EC&M’s Top 50, read this month's cover story and discover what Freelance Writer Amy Fischbach learned when speaking to some of the key executives at these powerful companies. As the article title aptly points out, business is booming. Let’s hope you’re reaping the rewards of this good fortune too.
