As I sat down to write this month’s column, I felt a sense of déjà vu. Almost a year ago to the day, we were wrapping up work on our September 2016 issue. I shared my thoughts with you that month about how impressed I was with the performance of our 2016 Top 50 Electrical Contractors. This group of power players had once again posted an impressive electrical and datacom services revenue total for the year ($22.8 billion). In fact, they beat the prior year total by $1 billion, and in doing so, extended their streak of besting the previous year’s total to five years.
So what happened when we summed up the annual revenue figures for this year’s Top 50 Electrical Contractors? Well, going into it, I pretty much had the exact same feeling as I did last year. I figured most of the big players in this group had held their own last year, but I wasn’t very confident they could keep this streak alive. Once again, they showed this doubting Thomas they were up for the challenge.
As a group, this year’s Top 50 posted a revenue total of $23.8 billion — $1 billion more than last year’s total. Sound familiar? In doing so, they extended their year-over-year record-setting revenue streak to six years — impressive, to say the least.
Let’s review some key data points from this year’s Top 50 Special Report that support this record-breaking revenue total:
• 69% of the group characterized last year’s business climate as “strong.”
• 90% of respondents met or exceeded their sales goal.
• 11 contractors grew their revenue total over the prior year by more than 20%.
• 21% of respondents were able to make bid adjustments in 2016, resulting in greater profits.
Let’s also look at some key data points around this group’s projections for 2017.
• 92% of respondents expect to meet or exceed their sales goal this year.
• Nine contractors are forecasting their 2017 revenue total to increase by more than 10%, and another 12 expect to bump up their total from 6% to 10%.
• 23% of respondents expect to make bid adjustments this year, which will result in greater profits.
Based on these company’s early forecasts for 2017, I might be feeling that sense of déjà vu right about this same time next year.
For a closer look at this year’s Top 50 Special Report, read this month’s cover story, and see what freelance writer Tom Zind learned when speaking to some of the key executives running these companies. In addition to a more detailed look into the financial performance of the Top 50, this story highlights some fascinating developments being explored on the technology front and reviews the challenging labor situation facing many contractors in the industry.
For those of you attending the NECA Show in Seattle in early October, make sure you stop by the EC&M booth and say hi. We’re interested in hearing your thoughts about where the industry is headed, too.