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Electrical Contractor and Industrial Sales Potential for NAED’s South Central Region (in millions of dollars)

Feb. 10, 2017
Data on electrical sales potential for construction and industrial markets in the NAED South Central Region shows a mix of booming and struggling markets.

NAED's eclectic South Central Region touches on a diverse array of metropolitan areas with a dizzying assortment of micro-economic climates. Included in this sprawling region of 17 states are some pockets of growth in the industrial Midwest, where the Lansing-East Lansing, MI and Warren-Troy-Farmington Hills, MI MSAs (metropolitan statistical areas) are enjoying an increase of industrial employment year-over-year (YOY) of about 4%. On the flip side, a good-sized handful of markets  are showing YOY industrial employment growth closer to the national manufacturing employment growth rate of  -0.2%.

The construction market in the NAED South Central is a different story, with plenty of metros topping the 1.8% gains in total U.S. construction employment YOY through Dec. 2016. Construction employment is up 10.6% YOY in Iowa, although some of this growth may be attributed to a flurry of highway construction projects in the state.  Individual metros with surging total contractor employment growth include Nashville, TN; Lake Charles, LA; Tampa, Naples-Immokalee-Marco Island, Orlando, Jacksonville, FL, Des Moines, IA; Charlotte, NC; St. Louis, MO;  and Atlanta, GA.

While the 2016 year-end data on electrical contractor employment for these cities from the U.S. Bureau of Labor Statistics won’t be in for quite a while, electrical contractors typically account for 13% of total construction employment. When you consider that every electrical contractor employee accounts for roughly $61,512 in sales potential, as you can see in ;the chart on pages 7-8, any growth in construction employment has a direct impact on bottom-dollar sales in the electrical wholesaling industry.      

Notes. Markets were selected using Bureau of Labor Statistics employment data (3-month average for Oct. 2016-Dec. 2016, preliminary December data) and sales-per-employee multipliers from Electrical Wholesaling magazine’s 2017 Market Planning Guide: Electrical Contractor Potential - $61,512 per employee; MRO Sales Potential - $690 per employee; OEM Sales Potential - $722 per employee; Factory Automation Sales Potential - $94 per employee.

Check out the market potential of the individual MSAs in NAED's South Central Region by clicking on the  map below. To expand the map, click on the "+" sign, and to move the map, just grab it to where you want to go. You can also download an Excel version of the chart below by clicking here.