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Information Systems. Electrical Contracting Industry


The electrical contracting industry consists of companies which offer services in installing fixed electrical wirings and fittings for electricity, lights, security alarms, equipment for communications and security systems. The electrical contracting industry and market is inseparable from the other main building and construction sub sectors like housing, communications, industrial and commercial work.

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The industry comprises 60,000 companies with total annual revenue of $70 Billion. Most of the work in this industry is carried out by small companies which may have about 10 employees.

The three largest companies by total sales

The electrical contracting industry in the United States is fragmented to a very high degree and this has resulted into a situation where most of the firms in the industry making not more than $500,000 yearly as revenue and also the majority of these companies tend to have less than ten workers per company.

The three largest companies in the electrical contracting industry according to the sales which have been recorded in the year 2007 according to EC& M are:

  1. EMCOR Group, Inc. this company’s headquarters are in Norwalk. Its sales in 2007 were $1,433,774,226.
  2. IES Inc. whose headquarters are in Houston. Its sales for 2007 were $893,000,000.
  3. MYR Group, Inc. its headquarters are in Rolling Meadows, III. Its sales were $610,314,000.

The total industry wide sales for that year amounted to $13.1 billion.

CEOs and market share for each company.

EMCOR Group Inc. The CEO for this company is Frank T. MacInnis who is the Chairman and CEO. (EMCOR, 2008).

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Andrew Bullen is the President & CEO of IES.

The MYR Group CEO is William A. Koertner.

Professional Association representing the industry

The Electrical Contracting Industry in the United States is represented by the National Electrical Contractors Association. The association is over 100 years old. The association has its headquarters in Chicago. It has 120 local chapters. The National Electric Contractors Association represents the electrical contracting market which is made up of more than 70,000 electrical contracting companies. Apart from the chapters in the United States it also represents other chapters in other countries from around the globe.

Services that association provides to the members in the Industry.

The National Electrical Construction Association ensures that the members have current information which is relevant for the dynamic market and enable the members keep abreast with industry developments. The association also has upon itself the responsibility of giving promotional activities for the benefit of the companies in the industry.

  • It does promotion and enhancement of the management interests of the members through: labor relations
  • NECA offers safety programs, materials for HAZCOM and also trains the members in hazard awareness. This helps them make savings.
  • It strives to ensure the members have the federal, state and compliance assistance materials which aid the members in working without contravening the law.
  • The association is instrumental in promoting harmonious relations for management in the labor industry and also helps in settling of labor disagreements.
  • The association is the voice of the members and it airs its interests to the legislative assemblies and government organizations.
  • It is a provider of information and also gives advice on business and council in the industry.
  • It is a promoter of sound managerial principles for business by educating and giving sponsorships for courses in management, accounting and also in electrical contractors.
  • Provision of continuous education for the members of the association.
  • Ensures that there is constant improvement in skill of the members.
  • It provides apprentice and journeyman training for the members in the industry.
  • Provides marketing services for the member companies thereby enabling them to access jobs and contracts in the United States.
  • The association strives to create a business environment that is better for the member companies.
  • Development of standards in the industry which have to be upheld by the all the companies in the industry.
  • The association works to ensure there is increased efficiency of the members thus having a better industry outlook. The association usually organizes for meetings where the members can come together for interchanging ideas to enrich their knowledge bases and experiences for the betterment of their careers.

Trade Association of Electrical Contracting Industry in the United States

The trade association of the electrical contractors in the United States is the Independent Electrical Contractors (IEC) which represents more than 3000 electrical contractors in a span of 72 chapters across the United States. The association helps the electrical contractors gain access to apprenticeship and training in management, it helps businesses or individuals to get the contractors who have been certified by the IEC to handle their electrical jobs. It also helps the electrical suppliers to network with others in the industry to make better their services.

Problems faced by the Electrical contracting industry in the US

One of the main problems faced by this industry is the increased prevalence of counterfeiting of electrical products from the United States companies by the Chinese companies.(Business Wire, 2008) The counterfeits have pervaded almost all products ranging from all kinds of wiring cables. Counterfeiting has become a global problem and the countries producing the original certified products end up losing billions of dollars annually to the pirate companies.

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The current economic slowdown which is being experienced in the United States has affected many organizations and people and this has resulted into decrease in the business opportunities for these companies in the industry. The industry is facing a declining trend in the ages of new people joining it as employees. There are less new people joining it as employees. Apart from this, race is still a problem in the industry as there are lopsided chances given to the different races for employment.

Solutions to the problems

The solutions which can be put in place for the problems currently being faced in the industry, specifically for the counterfeiting is that the government should ensure that there are more strict regulations put in place so that the goods coming into the country can be scanned thoroughly so as to reduce the chances of letting the counterfeits get into the country. This will require the use of advanced technology to be able to detect the fake products at the ports.

There should also be more efforts put in the public awareness campaigns to ensure that the general population knows exactly what the original products are and what the counterfeits are. This will help in reducing the chances of people buying the counterfeits unknowingly. Apart from these, the companies producing the electrical products should also use more advanced technology in order to ensure that their products are not easily counterfeited. This will make a clear difference between the pirated products and the original products thereby the consumers will not easily be duped.

The problem of the economic slowdown has also affected the companies in the industry negatively. The financial crisis has had many companies trying to reduce their costs and decreasing the number of employees is the first place to start thereby causing massive job loses. In this respect the government can help by ensuring that there is enough liquidity in the markets so as to enable the companies continue employing their staff and not cut down.


  1. Beck Ireland, 2008. EC & M. The Future Is Now.
  2. EMCOR, 2008. Investor Relations. Directors and Officers.
  3. Business Wire. Electrical Contractor/TED Magazines Launch New Industry Effort to Eliminate Counterfeit…
  4. Joseph M. Kelly. 2008. Challenges & Opportunities: 2008 Profile of the Electrical Contractor

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