Electrical Contractors Private Company Multiples and Valuation
Electrical Contractors: Navigating Market Trends, Private Company Multiples and Valuation.
Electrical Contractors
Industry: Electrical Contractors
Naics: 238330
Private Company Multiples
Industry Overview
Electrical contractors are vital to powering modern society, with their work essential for homes, businesses, and infrastructure. The industry has demonstrated resilience despite economic challenges, remaining a cornerstone of economic activity. In recent years, the electrical contracting industry has experienced significant growth. The combined revenue of the top 50 electrical contractors reached a record $51.737 billion in 2023, up nearly 18% from the previous year. This growth is attributed to a strong economy-fueled construction market, despite ongoing challenges such as labor shortages, inflation, and supply chain issues
Market Size and Projections
The U.S. electrical contractors market is projected to reach $283.74 billion by 2028, up from $225 billion in 2022. This growth reflects the industry's adaptability and innovation, particularly in areas such as renewable energy integration and technological advancements
Workforce and Employment
The electrical contractor field employs just under 220,000 workers in the U.S.. Employment for electricians is projected to grow by 8% from 2019 to 2029, outpacing the average for all occupations. This growth is driven by the increasing need for wiring and electrical components in both residential and commercial settings.
Industry Structure
The industry comprises approximately 77,500 electrical contractor firms in the U.S., with an average firm employing 14 people and generating $2.2 million in annual revenue. The majority (88%) of establishments have fewer than 20 employees, highlighting the prevalence of small businesses in the sector.
Future Outlook
The future of the electrical contracting industry looks promising, with several key priorities for 2024:
- Adopting sustainable practices and embracing digital transformation
- Investing in workforce development to address skilled labor shortages
- Ensuring safety and compliance while implementing lean construction practices
- Leveraging data analytics for informed decision-making
As the industry continues to evolve, electrical contractors who adapt to these changes and embrace new technologies will likely find themselves at a competitive advantage.
How to Grow your Electrical Contractor Business?
The electrical contracting industry is set for continued growth, but success often hinges on getting the basics right. Many contractors stumble on operations—things like answering every call and making booking simple. These are low-effort, high-impact ways to stand out.
Beyond that, growth often comes from expanding what you offer. General residential trends like smart home installations, EV charging stations, solar energy systems, and energy-efficient lighting are opportunities to open new revenue streams and future-proof your business.
Finally, don’t ignore digital. Your website is your storefront. It should be professional, fast, and mobile-friendly. SEO gets you found, paid ads bring leads, and content positions you as the go-to expert in your field. The internet isn’t just a tool; it’s a distribution channel. Use it.
Key Financial Metrics
Income Statement Benchmark
