Electricians power our modern economy and digital lifestyle. The industry includes individuals who maintain, market, and install electrical equipment and those who do electrical work on-site. While most electricians work on new construction, electrical upgrades account for one-third of industry revenue, according to an IBIS World Report.
From 2018 to 2023, electricians kept the lights on, performing work on new housing builds and carrying out emergency repairs during the pandemic. At the same time, economic activity has increased, primarily benefiting the nonresidential and utilities sectors. Over the last five years, revenue in the electrical business has increased at a CAGR of 0.6% and is predicted to reach $233.4 billion in 2023, according to IBIS World.
The View Ahead
Moving forward, the market size for electricians is expected to increase over the next five years to accommodate the needs of electric vehicles owners and the infrastructure required to support them. Modernized and upgraded equipment is needed, creating additional opportunities for electricians. Many electricians also install chargers for EV use at homes, businesses, and offices.
Infrastructure Bill, Technology Innovation Boost Jobs
Furthermore, several project opportunities throughout the country have been created, fueled by the Infrastructure Investment and Jobs Act (IIJA) and an increased emphasis on renewable energy, electrification, and sustainability. Technology and innovation also continue to affect customers' desire to boost productivity while lowering costs.
The Need for Skilled Electricians Remains
While the outlook for 2024 and beyond is positive for electricians, specific residual issues from the previous year endure, according to Electrical Construction & Maintenance (EC&M). Skilled labor shortages will disrupt delivering projects on time and within budget. And, although supply chains have adjusted to the new normal, specific products, such as transformers and electrical equipment, will continue to have significant lead times as manufacturers work tirelessly to expand capacity, according to EC&M.
Protecting Your Business
Electricians should be licensed and bonded and ensure their operations are well protected with a comprehensive insurance program. This includes buying General Liability, Workers’ Compensation, and Contractors Tools and Equipment insurance.
General Liability insurance protects you financially if you’re obligated to pay for bodily injury, property damages, or medical payments to a third party due to your work. Workers’ Compensation is mandatory in California and pays for medical expenses and lost wages up to a certain amount for employees injured on the job. You must provide Workers' Compensation coverage if you own a business and have employees. If you are a subcontractor, the general contractor on the job will typically ask for a certificate of insurance as proof that you have purchased Workers’ Comp insurance.
A Contractors Tools & Equipment policy covers your tools and equipment in transit and at job sites if they are stolen, vandalized, or damaged.
With more project opportunities for electricians on the horizon, make sure you continue to protect your business with insurance products that address the varied exposures you face.