In the early days of the industrial electrical contracting industry, there were literally hundreds of small electrical firms that operated all over the country. These companies were run by untrained people, with little to no experience or education. There were no formal associations or educational standards to speak of. Today, however, the industry is a much more regulated and specialized one.
Construction market
The construction market continues to improve as the economy grows. It is expected to grow an additional 3.1 percent this year. However, the pace of growth will slow as the expansion continues. According to Dodge Data & Analytics, the total U.S. construction starts in 2018 will rise 3 percent to $765 billion. The total amount of nonresidential construction will increase 2 percent and residential construction will grow by 4 percent. The amount of nonbuilding construction spending is difficult to forecast because of uninsured losses.
The electrical contracting industry is governed by strict regulations to protect workers and ensure that projects are completed safely. These include OSHA, NECA, and the National Electric Code. The industry is also undergoing a change toward prefabricated methods to reduce lead times and costs.
Union status
There are several benefits to union status in industrial electrical contracts. For starters, electrical work is seasonal and therefore, a union electrician may be better able to find work in a slow season. This may allow them to relocate to another state or city to get more work. However, non-union electricians may be more affected by these seasonal slow downs and may be forced to take temporary furloughs.
Other benefits of union membership include health care benefits and pensions. After a certain period of service, a union electrician can collect a guaranteed pension. This is especially valuable when many employers are eliminating pensions in recent years. Union electricians also enjoy medical and dental benefits.
Regulations
Industrial electrical contracts require special skills and training. These contractors must have extensive experience in industrial environments and must meet rigorous deadlines. They must also be committed to safety. This is especially important in industrial settings, as every day of delay in a project is a loss to the end user. These contractors also need to maintain a comprehensive safety program to avoid jobsite accidents and keep projects on schedule.
Industrial experience is the most valuable attribute of a qualified industrial electrical contractor. This experience can be found in several ways. For example, an industrial electrical contractor can draw on his experience working with a hospital to better understand the requirements.
Costs
Costs of industrial electrical contracts are an important consideration for the electrical contractor. It is important to understand what factors contribute to rising costs. The study compared open shop and unionized electrical contractors, identified the main cost drivers and determined their impact. Unionized electrical contractors have higher labor costs and lower profit margins than open shop companies.
Safety is another important consideration, and many inexperienced electrical contractors fail to factor in safety costs into their bid. In any construction setting, jobsite safety is essential. Inadequate safety measures can put people at risk, delay a project, and increase costs.
Quality checks
An industrial electrical contractor should implement a quality program that ensures the items it installs or repairs are up to code and meet safety standards. This will attract government customers and save the company money. A quality program will also make the company pay close attention to every aspect of the manufacturing process and the results it produces, identifying any changes that need to be made to produce an acceptable product.
There are a few different ways a contractor can meet quality standards. First, the government can rely on the contractor’s quality assurance system, testing, and in-process inspections. The key is to make sure these measures are consistent with the contractor’s commercial practices.
