It is my honor as the president of NECA to share an outlook of the construction sector in the year to come and the economic trends shaping our industry. The electrical construction sector remains at the forefront of innovation and growth, with significant opportunities and challenges on the horizon.

Indicated in the 2024 presidential election exit polls, the economy is at the forefront of most Americans’ minds. At the moment, within the industry there is a mixed but optimistic outlook for 2025. Despite ongoing concerns about interest rates and inflation, the construction sector is expected to grow by 4%–5%, supported by sustained investments in infrastructure and renewable energy. The bipartisan infrastructure law and the Inflation Reduction Act will continue to drive demand for electrical contractors, particularly in transportation, broadband expansion and grid modernization.

Private sector activity is also accelerating, with data centers, healthcare facilities and mixed-use developments dominating project pipelines. The global shift toward clean energy has led to a surge in demand for electric vehicle charging infrastructure and energy storage systems—opportunities that electrical contractors are uniquely positioned to capitalize on.

A large challenge in 2025 continues to be workforce recruitment. Our industry must intensify efforts to attract, train and retain skilled electricians to meet growing demand. Partnerships with apprenticeship programs and innovative workforce development initiatives, like the 720-hour apprenticeship model, will be critical to addressing this gap. From enhancing professional development resources to fostering innovation through initiatives such as the NECA Innovation Institute, our mission remains to empower contractors with the tools, knowledge and advocacy to thrive.

As we enter 2025, let us seize the opportunities before us while working collectively to address our challenges. Together, we can build a future that not only meets the needs of today but lays the groundwork for a more sustainable, electrified tomorrow.

I wish you and your families a prosperous and impactful year ahead!

Kirk Davis
President, NECA