Electrical work is picking up, and the demand for skilled electrical contractors is climbing. You may have already seen this reflected in your own schedule, but now there’s data to confirm that this is a steady upward trend and not just a random influx of work.

According to a study from Cascade Partners, the electrical industry was valued at $255 billion in 2024. By 2030, it’s expected to hit $295 billion.

That’s solid growth, but it’s not automatic. To get your share of it, you’ll need to stay sharp, adapt quickly, and navigate some headwinds.

Expect More Retrofit and Efficiency Projects

The biggest opportunities in the coming years are from upgrades. Renovations, retrofits, and energy-efficiency work are going to fuel a lot of the industry’s growth. If you're already taking on these types of jobs, you’re in a good position. If not, it may be time to sharpen your skills in this area.

Owners and facility managers want smarter, more efficient systems. If you can deliver that, whether it’s LED retrofits, building automation, or cleaner energy installs, you’ll stay competitive.

The study points to 2025 and beyond as a busy stretch for this kind of work. Smart buildings are becoming standard, and you need to be the one installing and maintaining them.

Labor Is Still a Big Problem

Finding qualified help hasn’t gotten easier. Cascade’s report confirms what you already know: the workforce is thin, and the pipeline of new tradespeople isn’t keeping up.

This year alone, the U.S. construction industry needs an additional 454,000 workers just to meet demand. The shortage is hitting complex work the hardest, especially in areas like clean energy, institutional systems, and anything that goes beyond basic installs.

The right crew can be the difference between landing a job and walking away from it. If you’ve got a strong team, hang onto them. If you’re still building one, know that you’re not alone in the hiring struggle.

Material Prices Are Unsteady, and Lending Is Tight

Copper and other metals are still swinging in price. That’s making it harder to forecast costs and protect your margins. If you’re quoting jobs months out, you already know how quickly numbers can shift between bid day and build day.

At the same time, financing remains tough. Cascade’s report points out that banks are pulling back from lending to electrical contractors. 

There are a few reasons for that. Lack of collateral. Bonding issues. General market volatility. The result? If you're looking to invest in new equipment, hire more help, or expand, you may run into roadblocks.

Some Markets Are Still Heating Up

Certain markets are driving the electrical industry’s growth. Data centers are booming. Institutional projects like schools and hospitals are on the rise. If you’re already working in these spaces, or looking to break into them, there’s room to grow.

These projects demand more experience, more coordination, and tighter execution. But they also offer steady pipelines and long-term value, especially if you can land maintenance contracts. If you’ve got the team and tools to deliver, these are jobs worth targeting.

Private Equity Is Interested

Here’s something new. Private equity firms are starting to look at electrical contracting as a real investment opportunity. That wasn’t the case a few years ago. Most investors stayed away because the business was seen as too project-based and unpredictable.

That’s changing. Cascade’s study shows a growing interest in companies that are well-run and ready to scale. If you’ve built a solid business, there may be investors out there looking for exactly what you offer.

The firms doing the buying want contractors with:

• A strong local presence and the ability to expand regionally
• A clean 50/50 split between new construction and retrofit or service revenue
• At least two active, high-growth markets
• A management team that’s proven they can grow

Even if you’re not looking to sell right now, it’s worth paying attention to this trend. It shows that outside investors recognize the long-term value in what you do.

What It Means for You

You’re in a trade that’s growing. The jobs are coming. The work is there. But getting ahead will take more than just showing up.

You’ll need to keep your team strong, your bids sharp, and your operations flexible. Stay focused on the high-growth areas. Watch your materials. Protect your cash flow. And keep an eye out for new opportunities, whether it’s a new project type or a bigger partnership.

The electrical industry is on the move. If you’re ready, there’s a lot to gain.