2024 Election Results: What Electrical Contractors Need To Know

Key Takeaways

• The Trump administration is likely to prioritize traditional energy sources, but key clean energy provisions may remain, affecting project opportunities for electrical contractors.
• Increased federal infrastructure investment is expected, potentially boosting public sector construction projects for the electrical industry.
• NECA emphasizes industry unity and will advocate for policies supporting infrastructure investment, job creation, and economic stability in the new political landscape.

The 2024 U.S. presidential election has concluded, with Donald Trump emerging as the President-elect alongside Vice President-elect J.D. Vance. This outcome will have significant implications for the construction industry and electrical contracting, shaping policies, regulations, and market conditions in the coming years.

Industry Response and Outlook

The National Electrical Contractors Association (NECA) has extended congratulations to the newly elected officials, emphasizing the need for unity and collaboration within the industry.

NECA CEO David Long stated:

Through this election we are reminded of our responsibility as leaders in the electrical construction industry to come together and support one another. Regardless of individual perspectives, we are united by our commitment to advancing our industry and building a brighter future for the customers and communities we serve and our hard working employees.

NECA's priorities moving forward include:

• Advocating for sensible tax policy
• Pushing for permitting reform
• Driving the electrification of America

Key Policy Areas Affecting Electrical Contractors

Energy Policy

The Trump administration is expected to continue its support for fossil fuels, potentially rolling back clean energy initiatives. This approach may impact:

• Renewable energy projects
• Energy efficiency standards
• Demand for electrical services related to green technologies

However, it's worth noting that many clean energy provisions from the Inflation Reduction Act are likely to survive, even under a Republican-controlled government.

Infrastructure and Construction

The electrical contracting industry can anticipate:

• Potential new infrastructure projects
• Changes in public sector construction activity
• Shifts in private sector demand

Marco Giamberardino, NECA's Senior Vice President of Government and Public Affairs, emphasized:

Our industry plays a vital role in powering the nation's progress, and we look forward to working with the new administration to support infrastructure investment, job creation, and economic stability.

Regulatory Environment

Electrical contractors should prepare for potential changes in:

• OSHA regulations
• Electrical safety standards
• Permitting processes

The Trump administration's focus on deregulation could lead to:

• Streamlined permitting for new industrial projects
• Greater flexibility in hiring and workforce management
• Reduced compliance burdens, particularly in energy-intensive industries

Economic Factors

Key economic considerations include:

• Potential tax cuts benefiting businesses
• Changes in tariffs and trade agreements
• Labor laws and union policies

The construction industry may see increased near-term growth, but there's also a risk of a second wave of inflation.

State-Level Impacts

The 2024 election results may have distinct changes across different states:

• Texas: The state may see increased support for oil and gas projects, potentially boosting demand for industrial electrical work, hazardous location installations, and power system upgrades. However, the robust wind and solar sectors are likely to remain strong.
• Florida: With its vulnerability to climate change, Florida may continue to invest in resilient electrical infrastructure, creating opportunities for storm-hardening projects, backup power systems, and microgrid installations.
• California: Despite federal policy shifts, the state is likely to maintain its aggressive clean energy goals. Electrical contractors can expect continued demand for power distribution upgrades, EV charging infrastructure, and grid modernization projects.
• Midwest states: These states might see a resurgence in manufacturing, potentially increasing demand for industrial electrical services, motor control centers, and automated system installations.

Contractors should stay informed about their specific state's response to federal policy changes and be prepared to adapt their business.

Small vs. Large Contractor Implications

The election results will impact contractors differently based on their business size:

Small Contractors

• May benefit from potential tax cuts for small businesses
• Might find opportunities in local, smaller-scale projects as communities adapt to policy changes

Large Contractors

• Better positioned to take on large-scale infrastructure projects that may arise from federal initiatives
• May face more scrutiny regarding labor practices and environmental compliance
• Could benefit from potential corporate tax reductions

Both small and large electrical contractors can focus on adaptability and diversification.

Industry Adaptation Strategies

Electrical contractors should consider:

1. Diversifying service offerings
2. Staying informed on policy changes
3. Investing in training and new technologies

NECA has committed to providing resources and advocacy to help members thrive in this evolving environment.

Project Bidding Changes

The new administration's policies may affect the project bidding process:

• Potential streamlining of permitting processes could accelerate project timelines
• Changes in labor laws might impact wage requirements for federal projects
• Emphasis on domestic manufacturing could influence material sourcing requirements in bids

Contractors can strengthen bids by:

1. Stay informed about changes in bidding requirements for federal and state projects
2. Adjust bidding strategies to align with new priorities (e.g., energy efficiency, domestic sourcing)
3. Consider forming strategic partnerships and industry relationships to create more competitive bids

Supply Chain Effects

The election results could significantly impact the electrical contracting supply chain:

• Potential changes in trade policies may affect the availability and cost of conduit, wire, and electrical components
• Emphasis on domestic manufacturing could lead to shifts in sourcing strategies for switchgear and distribution equipment
• Possible fluctuations in raw material costs due to changes in environmental regulations

Contractors can address these supply needs by:

• Diversify supplier networks for critical electrical components
• Consider stockpiling essential materials like copper wire and circuit breakers when prices are favorable
• Explore alternative materials and technologies to reduce dependency on potentially affected supplies

Labor Market Implications

The 2024 election outcome will likely influence the labor market for electrical contractors:

• Potential changes in immigration policies could affect the availability of skilled electricians
• Shifts in apprenticeship programs and vocational training initiatives may impact workforce development
• Changes in union regulations could affect labor relations and hiring practices for journeymen electricians

To address these challenges, electrical contractors can:

• Invest in robust training and apprenticeship programs for electrical installations
• Explore partnerships with local electrical trade schools to develop talent pipelines
• Stay informed about changes in labor laws and adjust HR practices accordingly

Critical Areas of Focus for Electrical Contractors

Critical Minerals and Permitting

Bipartisan support may emerge for:

• Developing domestic critical mineral supply chains
• Reforming permitting processes for energy projects

These areas are crucial for advancing the energy transition and supporting the electrical contracting industry.

Public Projects and Infrastructure

Public construction projects, including infrastructure, schools, and utility projects, are expected to remain relatively stable despite election uncertainties. Ken Simonson, chief economist at the Associated General Contractors of America, noted:

I think public projects, [such as] infrastructure, schools, public safety, judicial, penal structures, data centers, utility projects and many manufacturing plants are especially immune to election uncertainty. These happen to be the categories with the best prospects for 2025.

Trade and Material Costs

The industry should monitor potential changes in trade policies, as they could impact:

• The cost of imported materials like steel and lumber
• Overall construction costs
• Project financing and interest rates

Looking Ahead

As the industry adapts to the new leadership in the country, electrical contractors should:

• Remain flexible and responsive to policy changes
• Engage with industry associations for support and advocacy
• Invest in workforce development and emerging technologies

NECA reaffirms its commitment to enhancing workforce development, expanding access to emerging technologies, and championing solutions that advance both industry success and trade resilience.

The 2024 election results present both challenges and opportunities for electrical contractors. By staying informed and adaptable, electrical contractors can stay above the noise and continue build their electrical businesses to play a vital role in powering America's future.

As the dust settles on this election, electrical contractors are poised to contribute significantly to the nation's infrastructure, energy transition, and economic growth. The industry's resilience and adaptability will be key in turning potential policy shifts into opportunities for success.