The US electrical market has enjoyed 3 solid years of growth and expects 2007 sales to continue to increase at a steady pace. The nonresidential construction market will be a major player in the overall industry performance. Growth will mainly be driven by commercial and industrial buildings as there is a demand for upgrades, extensions and modernization in this marketplace. Nonresidential construction spending increased by 8.9% last year and in 2007, it will be up another 8%. This will provide US electrical wholesalers growth opportunities as the residential market slows down. It has been noted that when the residential construction market displays weaknesses, the other sectors, particularly the commercial sector, usually compensates this loss.
In 2007, the electrical industry expects sales to increase by 7.5% to $77.3 billion. The contractor market will lead with a 10.5% increase followed by 6% gain in the industrial market.
Concerning the commercial and utility markets, in August 2005, the passing of the US federal law, Energy Policy Act (EPACT), had an impact significant on these markets. EPACT establishes new product efficiency standards and offers financial incentives for using energy-efficient lighting, HVAC, and other high-efficiency technologies in both new installations and retrofit applications. In the 18 months since EPACT was enacted, the commercial market has been busy with upgrades opportunities.
With the help of government tax incentives and the electrical industry turning wish list projects into reality, the US is moving towards a more energy-efficient future.
