• An Electrical Design Surge: EC&M's 2025 Top 40 Electrical Design Firms Special Report

    This year’s Top 40 Electrical Design Firms see revenues spike again as demand grows for electrical work.
    June 12, 2025
    19 min read

    Even as a cloud of uncertainty — rivaling the one spawned by the Covid pandemic — descended on the U.S. economy this spring, the nation’s leading electrical design firms are largely refusing to succumb to pessimism about prospects for 2025. 

    Questions on the course of interest rates, taxes, regulations, and tariffs — and their possible economic repercussions — abound. But firms don’t seem overly worried, at least for the near term. And maybe for good reason: Many had a blockbuster year in 2024 and perhaps can’t shake the feeling, or the hope, that these good times have legs. 

    Answering EC&M’s annual survey on business conditions in March, many of the 40 firms whose reported 2024 revenues qualify them for a spot in the EC&M Top 40 Electrical Design Firms for 2025 expressed some level of business concern about what’s happening on the policy front in Washington, D.C. Yet most see a strong 2025 unfolding in which revenues and backlog continue to grow, hiring is still a priority, technology continues to exert a positive impact on their business, and demand for their services blossoms as infrastructure projects that incorporate ever more electrical backbone move ahead, though haltingly. Although uncertainty might hang in the air, design firms seem willing to see through it.

    A banner year

    That might be a natural response coming off a year like 2024, which 78% of respondents said delivered a strong business climate for their firms (Fig. 1). That inched up from last year, when 76% of respondents said the 2023 business climate was strong. The recent high on that measure was reached the year before, when 91% judged the 2022 business climate as strong.

    Though only one component of a business climate, revenues came in hot for this year’s Top 40. Their combined reported electrical design revenues of $5.223 billion in 2024 (the full year in which the 2025 survey results are based) set a record for this annual list (see 2025 Rankings Table). That was almost 18% higher than that reported by the 2024 Top 40, whose revenues were 13% higher than those of the prior year’s top firms. In the year prior, Top 40 collective revenues grew 22%.
    For more than half of firms, final numbers for last year were a pleasant surprise. Fifty-four percent said revenues exceeded expectations (Fig. 2), little changed from last year’s survey. The balance of firms mostly said they met expectations.
    On another key metric, backlog growth was the rule. Eighty-six percent of firms said it increased last year (Fig. 3), a five-percentage point increase from the prior year’s Top 40. In terms of magnitude, almost three-quarters of firms said backlog increased (Fig. 4) at least 5%. But 20% reported a decline, up notably from the prior survey.
    At Burns & McDonnell (No. 1), Kansas City, Mo., revenues were up almost 23% to $1.339 billion, a healthy boost attributed partly to better positioning. Mandy Olson, vice president of engineering, says an expanded electrical design team opened the door to more complex work that could be handled more efficiently with improved design automation and digital workflow tools.
    “Clients are now seeing tangible schedule and cost benefits from the technology investment, which feeds a cycle of repeat business and referrals,” Olson says.
    Backlog grew again for the firm, aided by federal and state infrastructure program business and bolstered by continued private sector investments in energy and manufacturing.
     
    “With solid bookings across multiple business lines, we’re carrying healthy, diversified work into 2025,” says Keegan Odle, vice president of ascending business.
     
    Salas O’Brien (No. 6), Irvine, Calif., boosted revenues 58% to $205 million, a result of scorching demand that fed strong organic growth coupled with more revenue that was booked to the firm through mergers.

    “We’re working in some critical market sectors which have seen strong tailwinds and good prospects for the near-term future,” says Darin Anderson, chairman and CEO. “It’s the result of choosing the right markets and delivering to our clients.”

    Heavily invested in the data center and health care markets, the firm is reaping benefits from being focused on delivering designs that address key concerns in the areas of backup power resiliency, clean power integration, and reduced electrical construction costs. 

    One focus, he says, is on producing innovative solutions on the design side that have long been delivered by product manufacturers. Team members have developed a patented electrical system design that reduces the amount of rigid conduit needed and labor to install it, potentially “saving millions in construction and long-term energy costs.” The company has also innovated in the area of backup power using alternative fuels, getting clients away from the heavy sunk cost for traditional diesel backup generators.

    Data center, power markets shine

    Salas O’Brien’s focus on data centers and health care is on trend. Those two electrical design markets were judged by more respondents than any others as two of their hottest three (Table 1) in 2024, garnering mentions from 43% each. Both data centers and power moved up dramatically from last year, when 22% and 30%, respectively, named it. Rounding out this year’s list of active markets for the prior year were power/utilities/T&D, government, manufacturing, education, water/wastewater, and aviation.
    On the ledger’s cooler side for 2024 (Table 2) were private office, hospitality, retail, oil/gas, housing, water/wastewater, and pharmaceuticals. The only big movers from last year’s list were oil/gas (moving from 7% to 21%), water (from 3% to 17%), and pharmaceutical (from 7% to 17%).
    Jaros, Baum & Bolles (No. 28), New York, continued to tap the health care and surging data center market, where growing computing power needs pose ever more complex electrical design challenges, but also saw stirrings in the moribund office space.
     
    “A growing push to rethink the traditional office environment is driving both space refreshes and new office developments,” says John Koch, a JB&B partner.
    Electrical infrastructure is central to those projects, he says, because both environmental sustainability and user-friendliness — think heat pumps and improved lighting — are primary considerations. That’s especially true in many New York City building projects that must conform to new electrification mandates. That often occasions top-to-bottom building infrastructure replacements that demand a holistic design approach fusing electrical, mechanical, and plumbing teams.
     
    “Rather than design each separately, there’s a big, coordinated package put together to make sure the right design solution is being delivered, and electrical and mechanical systems are upgraded and optimized for energy consumption,” Koch says.
     
    Office, along with retail, another sector that has lagged, showed signs of life in markets PBS Engineers, Inc. (No. 38), San Dimas, Calif., serves. But aviation and health care were the firm’s strongest markets last year — areas where sheer scale of power demand require rigorous design.
    Airport projects are growing more abundant and complex, says President and CEO Kunal Shah, because more facilities are aging and replacements and upgrades are more technologically sprawling and demanding of resiliency. A trend is toward more decentralized terminal power that involves individual airline operations having access to their own backup power.
     
    “There’s a tremendous amount of electrical work in these projects, partly because there’s a major focus on making sure there’s reliable power,” Shah says. “Airport projects haven’t wanted to do anything more than the bare minimum on resiliency, but that’s now shifted 180 degrees. Our designs have to account for the requisite capacity and infrastructure to support automated backup systems.”

    Banking on no letup

    Opportunities like that are certain to continue into 2025, a year most design firms see as promising. In fact, more than three-quarters of respondents expect revenue increases, many forecasting 10% (Fig. 5) or higher. That’s 11 percentage points more optimism for the year in progress than last year’s respondents showed. And a higher percentage see backlog increasing (Fig. 6). But, similar to last year, almost half see only modest backlog growth (Fig. 7) no higher than 9%. Still, substantially more (21%) see a decrease; last year decrease predictions totaled 6%.

    With solid footing in multiple elements of the surging data center market, the 2025 landscape for Faith Technologies Incorporated (No. 17), Menasha, Wis., looks good, says Rob Messina, executive vice president. Design of both electrical systems and products it manufactures for data center integration work it and customers perform is core to its business, which may prove impervious to economic headwinds that could kick up this year. Worries about the impact of heightened uncertainty and sticky high interest rates on construction spending are real, he says, but the company’s design niche might prove resilient.

    “As a contributor of end-to-end services, we see opportunity and growth in data centers through at least 2030,” says Messina. “We can see some ebb and flow, but there is predicted to be pretty steady growth in that vertical.”
     
    A decision post-Covid to focus on the foundation and realign staff to “allow people to do what they do best,” is paying growth momentum dividends for Smith Seckman Reid (No. 31), Nashville, Tenn., says Jim Dolezal, electrical technical leader. Electrical revenues were ahead of schedule in the first quarter as the firm continued its pursuit of health care, sports, and entertainment megaprojects, “a ton of ongoing smaller stuff” in areas like water and transportation, and delved into more industrial process design work in food/beverage, power systems, and data security infrastructure studies across business units.
     
    “Electrical touches on so many things that affect our business,” Dolezal says. “Our electrical teams are working closely alongside our other internal groups and also industrial clients.”
    Increased infrastructure spending, aided by federal and state dollars, could be a sustained source of more trickle-down business for electrical design firms. But the future course of that spending is currently up for grabs. The Trump Administration has halted funding for many projects birthed through Biden-era legislation, including some requiring significant electrical design input, such as EV charging infrastructure, grid updates, and renewable energy expansion. 
     
    Top 40 firms, though, largely aren’t disconcerted. Only 3% of firms predict the Infrastructure Investment and Jobs Act (IIJA) will have a significant impact (Fig. 8) on their business in 2025, down from 12% who expected that for 2024. Expectations for current-year new project revenue tied to federal infrastructure funds also have declined. Almost half last year expected such funding to pad 2024 revenues by 6% to 29%; only one-third of this year’s group (Fig. 9) expect that. Two-thirds expect no more than a 5% boost, compared with 52% last year.

    Policy trickle down worries

    Yet Trump’s “Unleashing American Energy” executive order — effectively halting disbursement of IIJA and Inflation Reduction Act funds — is seen by many as a clear threat to federal construction projects this year and next. While only 11% (Fig. 10) see a significant negative impact, almost two-thirds expect a moderate or minor impact.
    The federal policy upheaval has left many firms feeling uncertain — not a rare condition in the current climate. Almost 70% concurred that the IIJA, which authorized $1.2 trillion for transportation and infrastructure spending, could be repealed (Fig. 11). That uncertainty leaves firms with exposure to infrastructure projects little choice but to watch and wait. 

    Federal funding is important for some infrastructure projects CDM Smith (No. 24), Boston, works on, but it may not prove essential to viability, says Matt Goss, MEP practice leader. Cutbacks are a concern, and the pace of projects going to bid could slow, but state and private sector funding could endure.

    “There’s a need for energy-related infrastructure improvement, and critical things will continue to move forward, but the pace may slow — and they may have to take a different path forward,” he says.
     
    Salas O’Brien is monitoring the effects of closer federal review of IIJA funding on its business, says Anderson, but the consequences aren’t clear. He expects some projects won’t survive the cuts, but that Salas O’Brien and specific federal client projects that are more mission critical in nature will.
     
    “Some decarbonization projects are being canceled, but we haven’t seen many resiliency projects affected yet,” he says.
    Should that happen, some firms heavily invested in infrastructure design work could feel the pinch. And some, like Burns & McDonnell, are hedging their bets. VP Odle says federal and state infrastructure programs continue to generate demand, but other markets could fill any gap that emerges.
     
    “Power industry work, especially transmission protection and grid modernization design, remains our largest slice,” Odle says. “But mission-critical facilities have become one of our fastest growing sectors.”

    Tariffs are another Washington, D.C. worry for firms. Almost 85% said tariffs on China, Mexico, and Canada would have some negative impact (Fig. 12) on their business in the form of materials price increases and shortages that could alter the math for many building projects. All expect them to increase prices (Fig. 13) but are equally split on the magnitude.

    Carollo Engineers (No. 10), Walnut Creek, Calif., specializes in water/wastewater projects that have been surging recently. Instrumentation Engineer Ron Burdick sees a chance for higher tariffs to “hit hard on the construction side, which will affect our bottom line.” 

    They’ll contribute to higher costs that could shelve some projects because overseas suppliers are key sources of components like instrumentation packages, he says.
     
    Tariff uncertainty will almost surely complicate the design process, says CDM Smith’s Goss. Projects could stall out with a lack of clarity on materials prices, what items will be hit, and what the price hike will be.
     
    “As you bid, something might not have a tariff on it but could be applied later,” he says, “so we’re asking contractors what they think could be impacted and to let us know. Those are the conversations we’re having.”
     
    With Washington, D.C. intrigue complicating the economic picture, the course of the economy is on the Top 40’s mind. More than a quarter chose economic conditions that could foreshadow a recession as their top worry from a business growth standpoint (Fig. 14). That’s up from 19% last year.

    Staffing concerns persist

    But more worrisome, by far, is finding and keeping good talent. No surprise there, as that’s topped the list every survey in recent years. That was the top choice of 62%, up a bit from last year.
     
    Digging deeper, the survey found evidence of growing worries about being able to fill open positions. Eighty-nine percent said they were having difficulties (Fig. 15). That’s tough because firms are again in hiring mode; employees were added last year by 89% of firms (Fig. 16), and the same share say they plan to add again this year (Fig. 17). As shown in Fig. 18, more said the three hardest jobs to fill were project, supervising, and design engineers.
     
    Engineers are more in demand at Faith Technologies Incorporated (FTI), but more on the product development side, says Messina. As the firm moves more into designing products its electrical contracting business integrates for clients, product engineer is the hotter commodity. Over the next two years, he says, design staff could grow 20% to 30%, but hiring success will partly depend on making the sale to candidates.
    “Our industry is not the typical landing space for a graduating engineer,” he says. “You won’t be developing the next iPhone if you’re in the electrical contracting or design world, but the industry has evolved to demand a higher level of expertise.”
     
    After adding staff last year, PBS Engineers is now looking to trim. But that doesn’t mean the hiring challenge has gone away. Shah says he’ll forge a net reduction in design staff this year to help bring expenses more in line with expected revenue. Yet a tricky balance must be struck: selecting staff fat to cut and finding talent for roles that are becoming more essential as the business evolves.
     
    “We’ll have to make some staff reductions a bit larger than we had thought,” he says. “But overall, that will be good for us because we’ll be leaner and more judicious on hiring, finding the right individuals with special talent.”
    With a growing backlog, Carollo Engineers needs to fill slots, notably the design engineer role, Burdick says. And they ideally need to double duty as de facto leaders and mentors to take up the slack from an exit of more senior staff, some leaving for the client side or the industry entirely, he says. The 10- to 12-year veteran is the target, but they’re hard to find. That leaves new grads, who may not come fully prepared. Both options present challenges.
     
    “A lot has to happen to turn them into power engineers,” he says. “And consulting — what we do — can be a tough gig.”

    Training for new challenges

    Indeed, training is a top priority for design firms, especially as electrical’s scope in projects grows. Whether it’s informal mentorship and job shadowing or subject matter deep dives training is key, especially as more green talent comes on board. Once again, power systems analysis, electrical design software, and building management/automation systems rank high on the support need list (Table 3). But some other new choices offered this year, reflecting clear trends, scored many mentions, including energy storage, AI, and DC power systems.
    As client needs evolve and industry trends shift, JB&B is placing greater emphasis on training that extends beyond traditional project design. The firm is expanding its role by offering ongoing engineering and professional services that support clients throughout the entire life cycle of their facilities—not just during design and construction. This continued support helps clients adapt and optimize their infrastructure systems as they evolve over time.
     
    And as grid level battery storage demand grows, the company is positioning itself to incorporate these design elements. “We’ll have to build upon our current knowledge base to address rapid expansion in that area,” says JB&B’s Koch.

    New demands and opportunities are also driving Carollo Engineers to train staff in new subject matter, Burdick says. Its water-focused business is incorporating more green energy and renewables, for instance, so some knowledge in that area exists. But as more co-generation and solar project opportunities emerge, he adds, the company might look to build, partly through more focused training, a group to tackle that more intensely.

    AI adds to tech toolbox

    But, he says, “the most impactful thing we can do” in the training realm, might be around AI. Others echo Burdick, pointing to AI as a technology component that must be explored, understood, and deployed in their businesses. 
     
    More than half, though, say they’re already using AI in electrical design work (Fig. 19), up 13 percentage points from last year. Drilling down, 35% say they’re using (Fig. 20) it to perform specific design tasks, up from 13% last year. Various other possible applications drew mentions, including marketing/promotions work and process improvement, which each tallied more than “generating, analyzing and optimizing designs.”
     
    An “emerging technology council” at Smith Seckman Reid spearheaded the launch of an AI chatbot this year to help design teams to reach deeper into the firm’s project archives.
     
    “We want to develop better tools for our design engineers, knowledge-based design guidelines that can help them write specs, narratives, reports, size conductors properly, etc.,” Dolezal says. “Some of that information can be hard to find, so AI will help us bridge that gap.”
     
    But AI isn’t risk free. It does raise concerns about data security, Dolezal says, a sensitive issue for the firm because it does some federal government work. “There’s caution about our information getting out or bad information getting in,” he says.
     
    Similar concerns have caused CDM Smith to go slow with AI. For now, it’s “more on the softer side of things, supporting RFP responses and speeding up technical research and investigation,” and less on the design side, Goss says. QA/QC are concerns as are ethical, legal and insurance-related worries and, he added, “I’m not sure those are particularly clear now.”

    While AI emerges other design-related technology tools are gaining a firmer foothold. Reported augmented and virtual reality (AR/VR) usage grew appreciably. Around 60% said they’re now using both AR and VR (Fig. 21 and Fig. 22), up from 40% and 48%, respectively, last year.

    Firms looking to use AR and VR in their business in coming years say (Fig. 23 and 24) they’re primarily eyeing them to generally enhance collaboration, modify designs, and plan in the pre-construction phase. Specific current electrical design uses, respondents say, include virtual walk-throughs; development of models for O&M manuals, performance monitoring and work orders; space planning and owner coordination; product development and site placement; conflict resolution; and generating images, renderings, and videos of design concepts and completed installations.
    Having utilized 3D modeling to generate construction plans, JB&B has been accelerating the use of VR to walk owners and contractors through models it develops, Koch says. The next frontier is AR, leveraging it to work with architectural and project planning partners to “help end users better understand the space.”
     
    At Salas O’Brien AR/VR has so far benefited non-electrical elements of the practice more, Anderson says, but the opportunity is there. It could find a place alongside BIM and others as a tech tool ensuring better design coordination and efficiency, reducing repetitive tasks and aligning with “our feverish efforts to improve the quality of our product delivery, communicate better and faster and have better outcomes.”
    Editor’s Note: At press time (in early June), the U.S. tariff situation continues to be fluid; however, many of the Trump Administration’s harshest tariffs have been paused (and some exemptions have been made). As of June 1, a 10% universal tariff, 25% on cars and auto parts (with some exceptions), 30% tariff on Chinese imports (with some exceptions), and 25% tariffs on goods from Canada and Mexico not covered in the United States-Mexico-Canada Agreement (USMCA) were all active. On May 28, however, a U.S. trade court blocked most of the tariffs in a ruling that found the President had overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. On May 29, a federal appeals court temporarily paused this ruling, allowing the tariffs to remain in effect until the government’s appeal is considered (the Administration must respond by June 9). These developments all occurred after this survey was sent out. However, the questions about tariffs are geared toward determining if electrical design firms expect tariffs (in any form) will have an impact on their firm’s business in 2025 and 2026.

    About the Author

    Tom Zind

    Freelance Writer

    Zind is a freelance writer based in Lee’s Summit, Mo. He can be reached at [email protected].

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