Electrical Contractors NAICS 238210

Sep 9, 2025 - Renewable Energy Drives Capacity Growth

• Renewable energy sources accounted for 91% of the 15 gigawatts (GW) of new electricity generation capacity that came online in the first five months of 2025, according to the Federal Energy Regulatory Commission (FERC) and reporting by Utility Dive. At 11.5 GW, solar held the largest share of new capacity additions, followed by wind (2.3 GW) and gas (1.3 GW). However, gas still accounts for the largest share of total electricity generation with 43%, followed by coal (15%), wind (11.8%), solar (11%), and nuclear (7.7%). Despite the Trump administration's favoring oil and gas and rescinding tax credits for renewables development and production, rising demand for electricity is expected to boost renewables. According to FERC, among 133 GW of “high probability” additions projected to be operational by 2028, 84% will come from solar and wind, and 15% from gas.
• New single-family home sales fell 0.6% month-over-month and were down 8.2% year-over-year in July 2025, according to the US Census Bureau. July’s total new home sales reached 652,000 units. However, home sales beat analysts’ outlook; economists polled by Reuters had expected July sales to reach only 630,000 units. The Chairman of the Federal Reserve has hinted at a possible rate cut during the central bank’s meeting in September. However, Fed rate policy will likely depend heavily on August employment and inflation data due in September. High mortgage rates continue to outpace wage growth, keeping home purchases out of reach for many would-be buyers. Some industry watchers expect new home sales to remain under pressure from interest rates through the end of the year.

• The total value of nonresidential construction put in place declined by 0.2% in July 2025 compared to June, according to the US Census Bureau. Spending on nonresidential building projects was mixed in June. Growth was led by a 0.9% uptick in lodging spending, followed by healthcare (0.5%), transportation (0.4%), and public safety (0.1%). Spending on office, educational, and communication projects was flat in July, month-over-month. Manufacturing construction spending fell 0.7% in July, and commercial projects saw a 0.8% drop. Associated Builders and Contractors (ABC) Chief Economist Anirban Basu said, “Nonresidential construction spending fell for a third consecutive month in July and is now down 2.5% from the December 2023 record high. Of course, that’s in nominal terms. With construction materials prices rising rapidly in recent months and set to continue as higher tariff rates go into effect, the recent decline in construction activity is even larger than this data series suggests.”
• Construction spending for nonresidential buildings is expected to remain sluggish in 2025 and 2026, according to the American Institute of Architects’ (AIA) most recent Consensus Construction Forecast. Total spending for nonresidential building construction is expected to rise 1.7% in 2025 and 2% in 2026 after increasing 2% in 2024. For the next two years, growth will be led by data centers. Spending on institutional projects should remain steady as they are less susceptible to cyclical factors. AIA Chief Economist Kermit Baker said, “A multitude of factors are preventing substantive growth in nonresidential construction. Stubbornly high long-term interest rates, falling consumer confidence scores, rising tariff rates for many inputs to construction and construction labor shortages exacerbated by restrictive immigration policies are limiting prospects for positive sustained growth.”