As we do every June, it’s time to reveal the results of our annual Top 40 Electrical Design Firms survey, presenting the special report and rankings in print as well as online. As I sit at my desk trying to interpret both the obvious and subtle trends emerging from this year’s findings, it’s hard to believe. More than two years and three surveys later, we’re still trying to gauge the effects the COVID-19 pandemic has had on our world and our industry. As this year’s stats took shape, it became immediately evident that several factors are still having a significant short-term impact on electrical design firms, the most common of which include delayed projects, supply chain issues (delays in equipment and material shortages), and canceled projects.
As signs of a long-awaited coronavirus “all clear” began to slowly emerge at the start of 2022, one undeniable byproduct of the pandemic (coupled with the war in Ukraine and other worrisome economic indictors) seemed to take center stage: the highest inflation rate in 40 years. In fact, according to an online article in Forbes, “more than 40% of companies say workers have asked for higher pay to offset inflation,” however, most have not taken steps to adjust compensation accordingly. Hawkins Construction Company, located in Omaha, Neb., is not one such company. I recently read a piece on ConstructionDive that this family-owned and -operated firm (which specializes in construction, program management, and design-build services) is handing out two “inflation” bonuses to all 340 hourly employees (to the tune of $1,000 each) in an effort to help them combat the rising costs of basic necessities. Read the full original report from ConstructionDive for more details. But that’s incredible!
Despite rising inflation and other economic challenges that undoubtedly lie ahead, the majority of electrical design firms responding to this year’s survey reported record revenue numbers, a strong emphasis on hiring new headcount, and a business climate they already consider to be “back to normal.” Adjusting for the addition of one industry leader that participated in the survey for the first time in years, this year’s Top 40 topped last year’s collective revenue total of $2.301 billion by 13%, coming in at $3.17 billion. Written by veteran Freelance Writer Tom Zind, “What Pandemic?” tells you everything you need to know about the electrical design landscape for the coming year, including hot and cold markets, what the recovery process has been like, and how the $1.2-trillion Infrastructure Investment and Jobs Act is expected to jumpstart certain markets like roads and bridges, electric vehicle charging infrastructure, and water/wastewater projects. “A gearing up of committed infrastructure spending that may be somewhat insulated from worrisome economic headwinds could provide a good backstop for many design firms’ revenues this year,” writes Zind. “That, along with some optimism that recession fears are overblown, leads many Top 40 firms to the view that their bookings will be robust in 2022.”
That will only happen if firms can get a handle on retaining top talent. As if the labor shortage couldn’t get any more prominent, the number of survey respondents experiencing staffing issues shot up again — from 70% last year to 92% this year. Needless to say, recruitment is a top priority this year, as a never-before-seen 100% of survey respondents indicated they would be adding headcount this year. Only time will tell how all of these factors will affect business in the coming years, but one thing is certain: We will be there to conduct and present the original Top 40 research that has become an EC&M institution for so many consultants, manufacturers, and electrical design and contracting firms.
