The Value of First-Class Design

May 1, 2010
Examining the future for EC&M’s top 40 electrical design firms

Our cover story this month, starting on page 18, focuses on the giants in the electrical design world — powerful firms that typically work on large, high-profile projects around the country. Our annual Top 40 survey and follow-up report allow us to provide you with an inside look at the firms' most recent financial performance indicators and offer a glimpse of their future growth plans. As expected, their financial performance as a group in 2009 did not call for celebration, as delayed and canceled projects continued to pile up. Here's a snapshot of the numbers:

  • 19 of the 31 firms on last year's list suffered year-over-year revenue decreases (12 of the 19 saw double-digit declines).

  • 18 of 38 firms responding to a revenue expectation question admitted they did not meet their goal in 2009.

  • Approximately 54% of the firms reported a decrease in the number of employees on the payroll from the prior year.

  • 65.8% of the firms anticipate the American Recovery and Reinvestment Act to have little or no effect on their workload moving forward.

Despite the lack of projects in the market these past few years, a couple of firms managed to maintain steady revenue streams while a few others posted single-digit growth rates. This isn't all that bad, considering how depressed most markets have been lately. How did they do it? Some grew through acquisition, which allowed them to extend their geographic presence. Others expanded, which allowed them to delve into new markets. A few others benefited from established relationships in the electric utility market — where investment and expansion funds are still flowing strong.

Where will these firms focus their efforts next? I'm confident many of them are closely tracking the development of new photovoltaic cells and systems, fuel cell technology, AC and DC superconducting cables, and LEDs. They're also positioning themselves to take advantage of new market opportunities that center around the rebirth of nuclear power plants, widespread expansion of a new Smart Grid, and development of a new electric vehicle infrastructure.

Despite the economic challenges of the past year, one thing is certain: Going forward, successful design firms must stay at the forefront of business and technology trends in order to remain key players in the markets they serve. In our world, this means they better be out there preaching the virtues of environmental stewardship and renewable technologies — working with customers to better manage their existing assets, reduce their energy consumption levels, invest in alternative energy sources, and realize the value of sustainable design. As the push for net-zero energy building projects continues to gain momentum, so does the value of a design firm that offers the expertise to fulfill this goal.

About the Author

Michael Eby

Mike received a B.S. degree in electrical engineering in 1986 and an M.S. degree in engineering management in 1994 from the University of South Florida. He is currently a member of the National Fire Protection Association (NFPA), Institute of Electrical and Electronics Engineers (IEEE), Association of Energy Engineers (AEE), and American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE).

Prior to joining EC&M as Editor-in-Chief in September 1999, Mike served as the Executive Editor of Transmission & Distribution World magazine for five years. He currently serves as the Senior Director of Content - Buildings Group in the Infrastructure & Intelligence Division at Informa. Before joining Informa, Mike held various engineering titles within the Substation and Transmission Engineering Groups at Florida Power & Light Co., Juno Beach, FL.

Mike was awarded the Southeastern Electric Exchange (SEE) Excellence in Engineering Award in 1993 and has received numerous regional and national editorial awards for his reporting and writing work in the electrical market.

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