A renaissance in electrical contracting

In the next 10 to 20 years, the title of “electrical contractor” will no longer be suitable for electricians. Instead, they will transition into "energy contractors" to support the fast-growing green building market.

There has been a revival of interest in the electrical trade as homeowners and corporations adopt alternative methods (e.g. solar and wind) to power buildings. What’s driving this? Federal incentives, lower material costs and savings from reduced energy spending.

Green construction on the rise

Green construction will skyrocket over the next five years, according to a 2009 Booz Allen Hamilton study. The report projects green construction to generate $554 billion in revenues, provide $396 billion in labor earnings and support or create more than 7.9 million jobs from 2009 to 2013. These figures are a significant increase from the previous eight-year period. This growth comes directly from increased demand for green buildings, which is largely driven by cost savings from reduced property operating expenses, and by new regulations from federal legislation.

Electricians in high demand
The growing green construction market will create new demand for electricians. And to keep up with demand, electricians will need to diversify their skill-sets. We obviously expect to see electricians working on solar photovoltaic and wind turbine installations, but that’s just the beginning. They’ll work on building retrofits, mass transit and light rail projects, smart electrical grid transmission systems and more. Here are a few examples of the unique places we expect electricians to find work:

• Lighting system upgrades – There are an estimated 2.2 million commercial buildings in the United States that have antiquated lighting systems (old fixtures, ballasts, lamps and controls). Additionally, all federal buildings are required to switch to Energy Star lighting products by the end of 2013 in accordance with the Energy Independence and Security Act of 2007.
• Parking lot electrical outlets – A state bill in Minnesota will require half of new parking facilities to include outlets to charge electric vehicles. Members of the Minnesota Electrical Workers (IBEW) Local 292 are already preparing to provide labor for these projects. If successful, we expect other states and cities to follow Minnesota’s example.
• Wind turbine manufacturing – According to a report from the American Solar Energy Society, a typical 250-person wind turbine manufacturing company has two electricians as employees. This isn’t a large number, but it’s an example of the variety of job opportunities available.
• Electric vehicle electricians – Jobs for electricians will also emerge in adjacent industries. For example, electricians will need to be trained in auto mechanics – or auto mechanics will need to be trained in electrical contracting – in order to meet demand for electric vehicle maintenance. And the career outlook is good: electric vehicle electricians make an average of $39,000 to $59,000 per year.
• LEED-certified buildings - With many Leadership in Energy and Environmental Design (LEED) credits being electric- and energy-related, electricians will have an opportunity to win work on these projects. However, they’ll need to get versed on credit requirements, and should even consider becoming a LEED-accredited professional.

 Start now
With so many opportunities on the horizon, contractors need to make sure they’re ready to win jobs. To get started, they must gain the skills and knowledge to take on “green” projects. Both the International Brotherhood of Electrical Workers (IBEW) and National Electrical Contractors Association (NECA) offer education programs for green electrical work.

Next, contractors should market and promote their new green credentials. Update your website and other marketing materials, syndicate a press release to trade magazines and local media and get more exposure online by joining directories (e.g. CalFinder.com) or advertising in search engines.

Finally, update your bidding process to make sure you win those green electrical jobs. You’ll need to bid accurately to ensure job profitability, but competitively to make sure you win the job. This means having up-to-date pricing information on materials and labor. Good electrical estimating software (visit Software Advice for examples) will have specific capabilities to estimate solar panel installations and other types of renewable energy jobs.

Houston Neal is the Director of Marketing at Software Advice, a free online resource that helps organizations make the right software purchase decisions. He can be reached at houston@softwareadvice.com.