![]() ![]() 8), Irvine, Calif., revenues were up 75%, and backlog increased as the firm continued to reap the benefits of a multi-faceted and long-term expansion program, says Darin Anderson, chairman and CEO. Of those reporting an increase, half said it was modest, in the 6% to 9% range, though a third said it exceeded 15%.Īt Salas O’Brien (No. That was a welcome development, considering that only half of the 2021 Top 40 reported an increase in 2020. Like last year, when 86% of firms said backlog grew in the previous year, 83% of this year’s ranked companies said 2022 showed an increase ( Fig. Only 11% said revenues disappointed, which was in line with last year’s results.Īnother sign that last year was good for most design firms is that backlogs surged again - evidence that work was there for the taking, and firms were perhaps eager to lock up and stock up amidst concerns about a possible recession. 2) while two in 10 said revenues were in line. After two years of about a third of companies saying prior-year revenues failed to meet expectations, two-thirds of this year’s Top 40 say revenues came in higher than expected ( Fig. Last year’s growth looks to have caught many companies by surprise. “There are more electrical components of jobs and more electrically driven projects, too.” “Things are definitely getting back to normal coming out of COVID, but there’s also a new focus emerging on projects that are supported by electrical design work - areas such as renewables, microgrids, and EV charging,” he says. 30), revenues were up 25%, a result of both stalled work resuming and a bigger share that electrical is gaining in the typical project, says Matt Goss, senior vice president and MEP/energy practice leader. “Companies wanted to make up for opportunities lost during COVID, and there was also a surge past that to start pursuing the longer-term goals that they had for these years,” he says.Īt Boston-based CDM Smith (No. The overall feel to the year, he says, was one of pushing to get back to normal after the pandemic cloud forced developers to tap the brakes and put growth plans on hold. Regardless of pricing and materials issues, there was a lot of demand, and almost every category was strong for us.” 9), Rock Island, Ill., “one that the design and construction industry was looking for. “It was an amazing year, absolutely,” says Brian Leavitt, principal and director of electrical engineering at IMEG (No. All was not great in 2022, of course, with rising inflation and supply chain issues impacting business, but design firms may have simply been drawing comparisons with the COVID-19 years. Clearly, something changed, most likely the receding of the disruption and uncertainty caused by the pandemic and the surge in activity as demonstrated in a strong revenue rebound. Last year, 57% said the prior year’s climate was strong, up from a dismal 30% the year earlier. 1) - a big shift in sentiment from the last two years. ![]() No surprise, then, that 91% of firms rating the 2022 business climate described it as strong ( Fig. A year earlier, six of the returning Top 40 reported year-over-year decreases. All firms but one reported higher revenue the range was an increase of 145% and a decline of 7%. That was 22.2% higher than the combined prior-year revenues of last year’s Top 40, which came in at $3.204 billion (based on 2021 revenue numbers). This year’s Top 40 had combined reported electrical design revenue of $3.918 billion in 2022. Evidence of that big snapback comes from EC&M’s annual survey of electrical design firms that yields its Top 40 Electrical Design Firms ranked by prior-year revenues (see Rankings Table). After two years of subdued activity during the COVID-19 pandemic, electrical design firms appear to have gotten back to business last year, dusting off projects placed on hold and helping action-starved clients make up for lost time. The good old days - and then some - returned to the electrical design world in 2022. ![]()
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