NECA market evaluation
The NECA Market Monitor is a study that is conducted every year which covers a wide range of issues varying from general sentiment and business confidence, to the purchase process.
Some of the refined topics include the ordering process and different channels and methods used to purchase materials, all the way through to feedback on major wholesalers and manufacturers. The study opened during December 2016 and closed April 2017 with over 900 responses from small businesses and independent owners.
Nature of work
Most businesses saw that the majority of their work came from residential and commercial projects, regardless of its size. It was noticed that smaller companies are getting a lot of their work through residential projects while larger companies involve themselves in commercial work.
Optimism has improved
The general feel from most businesses is that they’re extremely optimistic about the future and the direction the industry is heading when it comes to opportunities for them to grow. Contractors in NSW were the most positive while Western Australian electrical contractors had some concerns about what the future held for them and their businesses.
Competition for work is high
Regardless of the optimism, there are some electrical contractors that see current economic conditions having an impact on the likelihood of work, more so over the next two years. Legislative changes are also a cause for concern among some contractors as well as an increase in unlicensed/unskilled workers undercutting prices.
Take it digital
Face to face relationships are still the crux to the progression of a business but there is a want from younger electricians to have better connectivity from their business partners. Being online within other industries is obviously important, which is why there is a need for wholesalers and manufacturers to be savvier with the digital world.
Compliance is on the radar
The importance of using products that adhere to Australian standards is a lot more prevalent among contractors nowadays compared to that in 2015. 52% looked at the compliance markings on the product while 44% trusted the fact that it is compliant because it’s being sold by an Australian wholesaler or leading brand. Overall, contractors are savvy to the fact that they know when products aren’t compliance with Australian standards.
Renewables and the SMART revolution
Among the majority, batteries and solar are predicted to be booming technology which is closely followed by IoT or smart technology. A lot of businesses are heading down the automation pathway which is resulting in an increased desire for more employees to be trained in this space.