October 16 and 17, a delegation from EuropeOn took part in a two-day transatlantic exchange in Milan, hosted by our American counterparts, ELECTRI International, the research foundation of the National Electrical Contractors Association (NECA) .
The event gathered over 60 participants, mostly electrical contractors from both sides of the Atlantic, to share experiences and explore common challenges and opportunities for the sector.
During these two days, discussions focused on five major trends and challenges shaping the future of the electrical contracting sector:
- labour and skill shortages,
- productivity challenges,
- private equity investing and succession planning,
- business development and clean tech solutions,
- and business volatility.
Throughout the event, participants noted striking similarities in the issues faced across both continents.
Labour and skills shortages
This is particularly true regarding labour and skills shortages, pressing concerns for all. In the US, it has been estimated that over 430,000 electricians are needed as of today. While comparable EU-wide data is lacking, national figures give a sense of urgency. For instance, Germany already faces a shortage of more than 80,000 workers in the electrical contracting sector. Yet, EuropeOn Vice-President Emma Elheim Karlsson concluded her speech on a positive note, reminding us all that our sector is comprised of “climate heroes” who make a highly valuable contribution to society.
Productivity
Both sides agreed that improving productivity is essential and could help ease workforce pressures. Yet, as EuropeOn’s former President Martin Bailey put it, “We spend a lot of time chasing new recruits, but not enough improving productivity.”
In the US, the sector is currently driven by a surge in mega-projects (exceeding USD 1 billion), particularly in the data centre economy. While these high-profit projects are a boon, they can also reduce the incentive to innovate on productivity. That said, both US and European participants shared promising examples of prefabrication and off-site manufacturing, which is notably more mainstream in the US market.
Succession Planning and Private Equity
On succession planning, one American participant summed it up: “You should manage your company every day as if it was for sale”. A sobering statistic was shared: only 2% of US electrical contracting companies continue operating after the departure of their original founder. Things are changing and private equity investing is a growing trend everywhere. As synthetised by EuropeOn President Kimmo Hallamaa, private equity can provide fresh capital and new opportunities, however there’s growing concern that it may drive short-termism in companies.
Business Development and Clean Tech
Diversification was the watchword when discussing growth strategies. EuropeOn Board member Martin Böhm gave an overview of how clean tech is driving business expansion across Europe, underpinned by regulatory support and policy incentives.
Business volatility
Finally, an all-encompassing question was discussed: how can our businesses navigated VUCA (vulnerability, uncertainty, complexity, ambiguity)? There was more than enough insight to fill a week-long symposium, but a few key takeaways emerged. For example, train your workforce continuously. Another clue is to develop a long-standing relationship with clients, throughout the lifespan of an electrical installation.
Beyond structured dialogue, the event was a great opportunity for EuropeOn’s Secretariat and members to meet the new Board of the Greek association, POSEH, and to share a first glimpse of what’s coming next with our Installers’ Summit 2025.
A big thank you to ELECTRI International and NECA for their warm invitation and excellent organisation. We look forward to continuing this fruitful collaboration and to repeating this inspiring exchange in two years, while continuing our interactions online for the time being!
