With average sales increasing about 30% from 1999 to 2000, the contractors enjoyed growth, prosperity and more work than they could handle this year.
The robust economy, coupled with strong industrial and power markets, boosted revenues for many of the contractors. Rosendin Electric Inc., San Jose Calif., experienced a 41% growth in sales due to a boom in the power market, said CEO David Brule. Many of the consolidators also grew through acquisitions. The strength of the 2000 economy, however, is tempered with the potential drop in 2001 sales due an economic slowdown and tightening markets.
“2001 revenues are expected to drop about 10% because of the drop in high-tech and data-center work,” said Glenn Patterson, president of Oregon Electric Group, Portland, Ore.
Along with the slowing economy, the skilled-labor shortage remains a top concern for electrical contractors in 2001.
Click here to see the CEE News’ second-annual listing of the 50 largest electrical contractors. In this online special section, you’ll find 2000 sales figures, industry analysis and capsule summaries of the fastest-growing electrical contracting firms.
[For a copy of CEE News Top 50 article in PDF format, click here. Requires Adobe Acrobat Reader, free download. ]