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The Coming Renaissance of Electrical Contracting |
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Monday, 15 March 2010 |
By Houston Neal
In the next 10 to 20 years, “electrical contractor” will no longer be a suitable job title for electricians. They will transition into “energy contractors” to support the fast-growing green construction market.
We see this as a coming renaissance in electrical contracting. There has
been a revival of interest in the electrical trade as home owners and
corporations adopt alternative methods (e.g. solar, wind, etc) to power
buildings. What’s driving this? Federal incentives, lower material costs
and savings from reduced energy spending.
 A study by the American Solar Energy Society projects renewable energy
jobs for electricians to grow approximately 900% by 2030, just in the
state of Colorado (See Figure 1, “Projected Growth of Renewable Energy
Jobs for Electricians”).
To take advantage of upcoming opportunities, electricians will need to
“green” their skill-set and re-brand themselves. We’ll share more on
this later. First, let’s take a look at the trends driving this change.
Green construction is on the rise
According to a 2009 Booz Allen Hamilton study, green construction will
skyrocket over the next five years. The report projects green
construction to generate $554 billion dollars in GDP, provide $396
billion in labor earnings and support or create over 7.9 million jobs
from 2009 to 2013 (Figure 2, “Growth of Jobs in Green Construction” and
“Economic Growth of Green Construction Market”). These figures are way
up from the previous 8-year period. From 2000-2008, GDP from green
construction was just $173 billion, labor earnings was $123 billion and
number of jobs created was 2.4 million.
 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 (e.g. American
Clean Energy and Security Act).
Clearly, environmentally friendly construction affects the architecture
engineering construction (AEC) industry collectively. But how will this
impact electricians?
Electricians are 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-set. 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 U.S. 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). Some of these upgrades can be handled by the local
maintenance guy, but others will require the expertise and skill of
electrical contractors.
Parking lot electrical outlets A state bill in Minnesota will require
half of new parking facilities to include outlets to charge electric
vehicles. Who will install these docking stations? Electricians of
course. 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 (ASES), 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-$59 thousand a year.
LEED creates new opportunities
 Projects applying for Leadership in Energy and Environmental Design
(LEED) status are growing just as fast as the rest of the green
construction market. With many 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 (AP). LEED projects get an extra point for having an AP on
the job, which could be a selling-point when bidding on jobs.
Check out Figure 3 for a sample of credits that require the knowledge
and skill of electricians.
Electricians must act 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 will have specific capabilities to
estimate solar panel installations and other types of renewable energy
jobs.
Houston Neal is with www.SoftwareAdvice.com - a website that helps electricians find softwar.
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