Electrical Equipment Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,700 electrical equipment manufacturing firms in the US produce goods that generate, control and distribute power. The industry manufactures a wide range from products including light fixture components; electric motors, generators, and components; power substation transformers; electrical panels and components for buildings; and electrical controls used in machinery.

Reliance on Construction Spending

Electrical equipment manufacturers’ sales are affected by the health of the construction sector.

Electric Grid Modernization

The need to modernize and expand electric grids is a positive for electrical equipment manufacturers.

Industry size & Structure

A typical electrical equipment manufacturer employs 77 workers and generates about $22 million annually.

    • The electrical equipment manufacturing industry consists of about 1,700 companies which employ about 134,300 workers and generate about $38 billion annually.
    • Most companies are small, independent operators - about 84% have a single location.
    • The industry is concentrated: the 20 largest firms represent 53% of industry revenue.
    • Customer industries include electric power generators and distributors, lighting equipment manufacturers, industrial machinery manufacturers, motor manufacturers and repair services, electrical component wholesalers and retailers, and electrical contractors.
    • Large companies include General Electric, Honeywell, Schneider Electric, Emerson, and Eaton.
                                  Industry Forecast
                                  Electrical Equipment Manufacturers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 15, 2022 - Grid-Enhancing Technologies Needed to Bridge Clean Energy Transformation Gap
                                  • At the recent WIRES conference in Washington DC, electricity industry panelists suggested transmission planners and regulators should use “grid enhancing technologies” (GETs) to quickly ramp up transmission capacity as the country transitions to clean energy, according to Utility Dive. To meet clean energy goals and support the growing number of electric vehicles and homes, annual US transmission spending will need to triple, according to UK-based electric power and gas firm National Grid. However, because transmission projects can take a decade to build, electric utilities need to optimize their grids with GETs. Examples of GETs include digital substations, power flow technologies, advanced conductors, energy storage, and advanced power flow controllers. WIRES is a trade group consisting of transmission providers and customers, regional grid managers, and equipment and service firms.
                                  • On a seasonally adjusted basis, the total value of power project construction put in place decreased by 0.3% in September 2022 compared to August, according to the US Census Bureau. Unadjusted power project construction spending was down 8.1% in September compared to a year earlier and fell 11.4% on a year-to-date basis from the first nine months of 2021.
                                  • Electrical equipment manufacturers that rely on component suppliers in China may experience some supply chain issues amid a continued slowdown in Chinese manufacturing activity and exports. While conditions have improved, China’s zero-COVID policy continues to pose challenges for the country’s manufacturing sector. The Caixin China General Manufacturing Purchasing Managers’ Index (PMI) rose slightly to 49.2 in October from 48.1 in September. A reading below 50 suggests that output is contracting rather than expanding. While output and new orders declined, they did so at slower paces, and purchasing levels grew for the first time since May. However, exports contracted for the third consecutive month amid ongoing cost pressures. Input costs rose for the first time in three months, but manufacturer selling prices declined for the sixth straight month as producers promoted sales to move goods.
                                  • North American construction and engineering spending in 2022 is expected to grow by about 8%, according to FMI’s fourth-quarter 2022 North American Engineering and Construction Outlook. However, growth may be tempered by ongoing challenges, including inflation, higher interest rates, supply chain issues, labor shortages, and geopolitical turmoil. Construction subsectors that are expected to see the strongest growth, ranging from 5% and up, include: residential, commercial, manufacturing, water supply, sewage and waste disposal, and conservation and development. Subsectors that are projected to post 2022 growth between 0% and 4% include amusement and recreation, communication, healthcare, and highway and street. Education, public safety, lodging, office, religious, power, and transportation are forecast to see flat-to-negative growth.
                                  Get A Demo

                                  Vertical IQ’s Industry Intelligence Platform

                                  See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                  Build valuable, lasting relationships by having smarter conversations -
                                  check out Vertical IQ today.

                                  Request A Demo