alice-photo/iStock/Thinkstock
Ecmweb 14893 Electrical Industry 2017
Ecmweb 14893 Electrical Industry 2017
Ecmweb 14893 Electrical Industry 2017
Ecmweb 14893 Electrical Industry 2017
Ecmweb 14893 Electrical Industry 2017

$2.15 Billion and Counting

July 6, 2017
Business trends for the 2017 Top 40 Electrical Design Firms

EC&M’s Top 40 Electrical Design Firms have been cranking out the projects the last few years — that’s for sure. Overall design revenue has grown from $1.68 billion in 2014 to $1.86 billion in 2015 to nearly $2.15 billion in 2016. That’s a pretty impressive three-year growth rate. I guess that’s why more than half of these power players characterized last year’s business climate as “strong” and a whopping 85% met or exceeded their revenue projections.

Which markets helped fuel this solid growth last year? As was the case in prior years, the health care, education/institution, and power (utilities/T&D) sectors remained hot. Some of the firms also found success in the transportation sector, which includes aviation and rail projects. But this type of growth doesn’t come without challenges. More than three-fourths of the firms indicated they were experiencing labor shortages. Experienced project engineers and project managers were identified as the most difficult positions to fill, followed closely by supervising engineers. This lack of talent limits their ability to bid on new jobs and expand into new markets. It also drives up their labor costs. Can you imagine what the overall design revenue total would have been if all of these firms had access to the senior-level talent they’re ready to put to work right now?

What does the financial future look like for our Top 40 Electric Design Firms? For the most part, this bunch is bullish in the short term. Sixteen firms forecast their revenue to hold steady this year or rise by up to 5%. Another nine firms project a revenue increase between 6% to 10%, and seven additional firms project their revenue total to rise by more than 10%.

Where will the demand for their services come from in the near future? Since half of the Top 40 Firms identify the general building category as their primary area of expertise, it makes sense that this group sees building management / building automation systems work as the most promising revenue driver in the next year or two. The growing complexities of upgrading older disparate building systems into networked intelligent buildings will certainly drive the demand for engineering services. A majority of the other half of the Top 40 firms identify one of these three market sectors as their primary business: power, water supply/wastewater, and transportation. So it makes sense when we asked them which market sectors would benefit the most from a Trump Administration Infrastructure Investment Plan they replied in order of importance: water supply and wastewater systems; electric utility grid; highways, streets, roads and bridges; airports; and railway systems. In fact, 77% of the Top 40 firms believe a $1 trillion plan would have a moderate or significant positive impact on their business.

At the moment, the future looks really good for our Top 40 firms. Let’s hope they continue the trend of year-over-year revenue growth for many years to come.

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.

Voice your opinion!

To join the conversation, and become an exclusive member of EC&M, create an account today!

Sponsored Recommendations

Electrical Conduit Comparison Chart

CHAMPION FIBERGLASS electrical conduit is a lightweight, durable option that provides lasting savings when compared to other materials. Compare electrical conduit types including...

Fiberglass Electrical Conduit Chemical Resistance Chart

This information is provided solely as a guide since it is impossible to anticipate all individual site conditions. For specific applications which are not covered in this guide...

Considerations for Direct Burial Conduit

Installation type plays a key role in the type of conduit selected for electrical systems in industrial construction projects. Above ground, below ground, direct buried, encased...

How to Calculate Labor Costs

Most important to accurately estimating labor costs is knowing the approximate hours required for project completion. Learn how to calculate electrical labor cost.