DATA-DRIVEN ANALYSIS OF THE FACTORS AFFECTING THE UNION INSIDE ELECTRICAL CONTRACTOR MARKET SHARE
The primary goal of this study was to develop a data-driven understanding of the market share dynamics of union electrical contractors. The National Electrical Contractors Association (NECA) inspired this study, based upon its “1025 Initiative” to increase the market share of NECA members 10 percentage points by 2025.
Based on NLMCC employment data, the average national market share of union locals increased slightly from 34% in 2004 to 37% in 2017. However, the locals experienced different market share trends of growth and shrinkage within the same period. Some grew by multiple-folds and others contracted by more than 50%. As such, market share growth strategies should be identified through a comprehensive investigation that identifies the effectiveness of these strategies for the varying market conditions found in the different union locals.
This study applied a hybrid data collection and analysis methodology that combined NECA Chapter town hall meetings, online surveys, and interviews.
The study revealed the limited availability of reliable and accurate market research data that is available to union electrical construction stakeholders, which should be accounted for when considering and interpreting the study findings. Union market share analysis should be based on insights from multiple metrics that provide complementing labor and economic aspects of the trade union organizations. An economic market share metric can complement the insights from the employment-based NLMCC metric to have a more comprehensive understanding of the union market performance. Some NECA chapters are already investing in creating their own parallel economic market share metric data, and this effort can be replicated in more NECA chapters and IBEW locals.