Introduction
The economic impact of the merit shop electrical contractor is largely misunderstood mainly because it has gone unmeasured. IEC has long believed that the merit shop, open shop, or just non-union electrical contractors have an overwhelming influence in the built environment and are a key economic engine across the entire commercial, industrial, and residential construction sector. A majority of jobs and businesses are considered merit shop, and most construction work is done by merit shop contractors and workers.
Why the study
The predominate narrative is that union contractors drive the electrical construction industry. They are large, they are organized, and the contractors have been able to rely on the platforms of trade unions themselves to prop up their economic impact and voice. At IEC, we understand this narrative unjustly dismisses a majority of the sector.
How the study was conducted
In 2024, IEC National engaged Geo Strategy Partners, a well- known and nationally regarded economic consulting firm, to conduct an in-depth study into the merit shop electrical contracting market. A team of economic analysts was tasked to measure the economic impact of the merit shop electrical contracting industry. Specifically, IEC wanted to obtain empirical data on the number of businesses, electrical workers employed, and revenue generated by the overall electrical contractor sector, and then breakdown both union and merit shop segments.
Over a period of several months, extensive secondary research of economic and industry data reported by government agencies, associations, and other publications was collected, including data obtained from NECA and IBEW. In addition, quantitative primary research was captured through surveys gaining insights on IEC members and their businesses. Through this research and data modeling, our economic study measured the size and economic significance of the US merit shop electrical contractor industry, which in turn created key insights on the number of businesses, employment and salaries, and total revenue generated.
Why the study is impactful
As you review the summary of the data in the following report, I think you’ll find this information as revealing as we did. I believe it will confirm what we and so many other Americans know. Merit shop works for America, and the critical infrastructure needed to electrify the nation is going to be done mainly through the skilled work and prowess of merit shop electrical contractors and merit shop electricians.
Our story needs to be told to the public, to government officials and to industry partners. Please join us at IEC in sharing this message.
Thank you,
IEC National
Executive Director
Merit shop electrical contractors account for over $165 billion in electrical construction put in place annually, out of a total market value of $260.4 billion. Meaning 63% of all electrical construction is completed by companies like IEC members.
Non-union electrical contracting firms have grown steadily by 2.2% since 2017 with over 80% of all electrical contractors proudly calling themselves merit shop.
Merit shop electrical contractors employ over 356,000 electricians and employment among merit shop companies has grown an astounding 31% in the period between 2017 and 2023- contrasted to a market share drop in union electricians by 15%
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