Mid-Year Electrical Economic Review: A Mixed-Bag But Some Reasons to Smile

I don’t think anyone was expecting 2025 to be a “business as usual” year, but it’s been one long, strange trip so far.

Folks are still waiting for the other shoe to drop on electrical prices if the most stringent of the White House’s tariffs actually go into effect. The Israel-Iran conflict is still very much in play, although commentators don’t think Iran will be crazy enough to stop shipping in the Gulf of Hormuz because it needs to get its oil tankers through there, too and oil is its key export. The residential market and particularly single-family housing is in the dumpster in most markets and may remain there for a while, at least until mortgage rates are a point or two friendlier.

Although any of these market drivers could potentially putting the “kibosh” on market growth in 2025, some if not many companies are still expecting a good year. In EW’s Top 100 ranking, there were just as many distributors expecting double-digit growth in their 2025 revenues as there  were companies expecting a much more pedestrian point or two of annual growth. And when you look at the growth in electrical stock prices over the past year for some companies (see table on page 2), you realize that many investors believe some electrical manufacturers and contractors and other public companies in this business are nicely positioned to benefit from all the investment in data centers, the electrical grid and other power-hungry projects, like semiconductor plants, auto factories and — in spots —  EV plants and charging stations.

Yes, it does some like we are in the middle of a have/have not period in the electrical economy, where some companies in the “right” geographic markets or business mix will grow at double-digit rate, and other companies outside of those areas have a much tougher slog.

Despite it all, distributors are still investing in their businesses. EM’s editors were impressed with how many Top 100 distributors were opening up new branches, retooling ERP systems or launching new services. For those companies in slower growth markets, it seems like a good time to explore potential in niche product markets, develop or double down on investments in their digital business systems, online storefronts, or research some of the new procurement systems that can link them closer to customers,  or AI-powered inventory management and sales tools.  2025 is just about half over, but its story has yet to be written. There’s just enough opportunity out there to still make it a very good year.