Underpowered: Mixed trends in downstream building markets have limited revenue growth

The Electrical Services industry is one of the largest specialist construction industries and undertakes essential work for a range of downstream construction and industrial markets. The industry's activities include installing and maintaining basic electrical circuitry on buildings and industrial equipment, and installing electric lights, power facilities and instrumentation. Contractors have endured subdued demand conditions from key building markets over the past five years, while slow growth in household discretionary income has limited consumer spending on electrical installation work...read more.

Industry Statistics & Market Size
Revenue
$21bn
Annual Growth 13-18
1.5%
Forecast Growth 18-23
Profit
Employment
93,350
Businesses
38,000
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Contractors have endured subdued demand conditions from key building markets
  • Intense competition in key building markets forced contractors to reduce prices, limiting margins
  • The industry is projected to benefit from improved demand across key construction markets
  • Industry Report - Industry Investment Chapter

    The industry is characterised by a low level of capital intensity. The principal industry value added is derived from the input of skilled labour services. Although some of the larger contracting firms have higher capital intensity and maintain in-house equipment such as hoists, scissor lifts, pumps, power generation units and specialist vehicles.The ratio of labour inputs to production relative to capital equipment expenses provides a measure of the industry's relative capital intensity. Depreciation charges as a share of revenue are used as a proxy for capital costs. The industry allocates $18.25 to labour inputs for every dollar spent on capital equipment in 2017-18. Thi...purchase to read more.

    Additional Insights for the Electrical Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Electrical Services Industry are

  • Ability to expand and curtail operations rapidly in line with market demand
  • Ability to change which market the firm operates in
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Demand from residential building construction and Demand from commercial and industrial building construction in the Electrical Services industry impact industry performance..

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    What's in this report

    What is the Electrical Services Industry?

    This industry consists of contractors that install electrical wiring or fittings in buildings or other construction projects. Industry operators are also involved in the repair and maintenance of existing electrical equipment and fixtures.

    Industry Products
  • Electrical circuitry installation
  • Electrical circuitry upgrade and renovation
  • Maintenance and repair services
  • Other services
  • Industry Activities
  • Electrical wiring repair or maintenance
  • Electrical wiring installation
  • Installation of closed-circuit video surveillance systems
  • Exhaust fans installation
  • Electric lights and power fittings installation
  • Electrical and communication cabling and switching systems installation
  • Illuminated signs installation
  • Safety switches installation
  • Specialist industry-specific equipment installation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from residential building construction
  • Demand from commercial and industrial building construction
  • Demand from heavy industry and other non-building construction
  • Private capital expenditure on machinery and equipment
  • Demand from institutional building construction
  • Real household discretionary income

  • Current Performance
  • Profit and competition
  • Construction trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit and competition
  • Construction trends
  • Industry developments
  • Table: Electrical Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Electrical Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Construction
  • Wholesale Trade
  • Residential Property Operators
  • Telecommunications Services
  • Office Property Operators
  • Retail Property Operators
  • Industrial and Other Property Operators

  • Key Selling Industries
  • Hardware Wholesaling
  • Telecommunications and Other Electrical Goods Wholesaling

  • Products & Services
  • Maintenance and repair services
  • Electrical circuitry upgrade and renovation
  • Electrical circuitry installation
  • Other services
  • Chart: Electrical Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential builders and households
  • Commercial and retail property developers and operators
  • Heavy industrial and engineering firms
  • Mixed customers
  • Chart: Major Market Segmentation for the Electrical Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Subcontractor, professional and technical service payments
  • Motor vehicle expenses
  • Depreciation
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Electrical Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electrical Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Electrical Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Electrical Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total Building Work Done (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Building The Education Revolution (Ber)
  • An initiative of the Rudd Federal Government that included the injection of over $14.0 billion into the refurbishment of primary schools to stimulate economic growth.
  • C-Bus
  • An installed communications protocol system used in the automation of buildings, to control lighting systems and other electrical equipment, such as air conditioning and video-audio systems.
  • Electrotechnology
  • Work done on high technology systems such as light and power, hardware platforms, networking and automation.
  • Facilities Management
  • The provision of multidisciplinary services in the maintenance of non-residential buildings (e.g. HVAC, electrical services, plumbing, cleaning and security).
  • Hvac
  • Heating, ventilation and air conditioning.
  • Led
  • Light Emitting Diode (LED) represents the latest technology in energy efficient lighting.
  • Neca
  • the peak industry association, the National Electrical & Communication Association.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Electrical Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Electrical Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Electrical Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Electrical Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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