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N E W B U S I N E S S S E C TO R S

ELECTRI International
The Foundation for Electrical Construction, Inc.

Market Share:
Developing a Standard Format to Calculate Market Share

University of Michigan/MCA, Inc.


Dr. Perry Daneshgari
Michelle Wilson
Heather White
ELECTRI Council
ELECTRI International—The Foundation for Electrical Construction, Inc.
As of October 1, 2007

PRESIDENT’S COUNSEL Chapters and Affiliates


$1,000,000 or more Chicago & Cook County Chapter, NECA
Hugh D. “Buz” Allison Northeastern Illinois Chapter, NECA
Hugh D. “Buz” and Irene E. “Betty” Allison Trust, Northern Indiana Chapter, NECA
Vancouver, Washington
Southeastern Michigan Chapter, NECA*
Richard W. McBride* Manufacturers
The Richard W. and Darlene Y. McBride Trust,
ACCUBID
Escondido, California
Eaton Electrical
Albert G. Wendt*
The Al and Margaret Wendt Trust, Estimation
Cannon & Wendt Electric Co., Arizona McCormick Systems
National Electrical Contractors Association*
GOVERNORS
Square D/Schneider Electric
$150,000 or more
PROGRAM GUARANTOR Contractors
$500,000 or more Arthur Ashley
The Okonite Company Ferndale Electric Co., Michigan
Clyde Jones
DIPLOMAT Center Line Electric, Inc., Michigan
$350,000 or more Michael Lindheim*
Electrical Contractors Trust of Alameda County The Lindheim Family, California
San Diego County Chapter, NECA Richard R. Pieper, Sr.*
PPC Partners, Inc., Wisconsin
REGENTS James A. Ranck
$250,000 or more J. Ranck Electric, Inc., Michigan
Contractors Dan Walsh
H.E. “Buck” Autrey* United Electric Co., Inc., Kentucky
Ron Autrey
Miller Electric Co., Florida Chapters
John R. Colson Illinois Chapter, NECA*
Houston, Texas
Kansas City Chapter, NECA
Robert E. Doran III*
Los Angeles County Chapter, NECA
Capital Electric Construction, Kansas,
In memory of Robert E. Doran, Jr. Northern New Jersey Chapter, NECA
Nicholas Dutto Oregon-Columbia Chapter, NECA
Metropolitan Electrical Construction, California Oregon-Pacific-Cascade Chapter, NECA
Jerrold H. Nixon
Eric F. Nixon Manufacturers and Distributors
Maron Electric Co., Illinois Thomas & Betts Corporation
Panduit Corporation

* denotes founding member of


ELECTRI’21 COUNCIL (1989–1990)
MARKET SHARE

FOUNDERS FOUNDERS, CONTINUED


$100,000 or more Contractors
Manufacturers and Distributors
Randy Fehlman *
Advance Transformer/Philips Lighting Gregg Electric, Inc., California
Crescent Electric Supply Company Rex A. Ferry
Graybar Valley Electrical Consolidated, Inc., Ohio
Greenlee Textron Todd Finnegan
Ruud Lighting Walker Seal Companies, Inc., Virginia, In honor of
Michael H. Walker and Frank W. Seal
Thomas Industries
Brad Giles
Utility Giles Electric Company, Inc., Florida
San Diego Gas & Electric Darrell Gossett
ERMCO, Indiana
Contractors John F. Hahn, Jr.*
Ted C. Anton Peter D. Furness Electric Co., Delaware
Newkirk Electric Associates, Inc., Michigan Michael Hanson
Ted N. Baker Hunt Electric Corporation, Minnesota
Baker Electric, Inc., California Eddie E. Horton
D. R. “Rod” Borden, Jr.* Dallas, Texas
Tri-City Electric Co., Inc., Florida Mark A. Huston
Daniel Bozick Lone Star Electric, Texas
Daniel’s Electrical Construction Company, Inc., Thomas G. Ispas
California Daniel’s Electrical Construction Company, Inc., California
Larry Brookshire* Nazeeh A. Kiblawi
Fisk Acquisition, Inc., Texas Truland Systems Corporation, Virginia
Jay Bruce Donald W. Leslie, Sr.
Bruce & Merrilees Electric Co., Pennsylvania Johnson Electrical Construction Corporation, New York
Richard L. Burns* Richard J. Martin*
Burns Electric Company, Inc., New York Motor City Electric Co., Michigan
Brian Christopher Roy C. Martin, Jr.
Oregon City, Oregon Triangle Electric, Michigan
Larry Cogburn Edward C. Mattox
Cogburn Bros. Electric, Inc., Florida Inland Electric Corporation, Illinois
Michael Curran Michael Mazzeo
Red Top Electric Company Emeryville, Inc., California, Michael Mazzeo Electric Corp., New York
In honor of George T. and Mary K. Curran Michael McAlister
Ben D’Alessandro MRM Electrical/Communications, California
L.K. Comstock & Co., Inc., New York James C. Mc Atee
Gene W. Dennis Electric Power Equipment
Universal Systems, Michigan Company, Ohio
Frank DiFazio Timothy McBride*
DiFazio Electric, Inc., New York Southern Contracting Co., California
William T. Divane, Jr. Edward T. McPhee, Jr.
Divane Bros. Electric Co., Illinois, In memory of William McPhee, Ltd., Connecticut
T. Divane, Sr. and Daniel J. Divane III
Robert Egizii
EEI Holding Corporation, Illinois

iv
ELECTRI Council

FOUNDERS, CONTINUED FOUNDERS, CONTINUED


Contractors Contractors
James B. Morgan, Sr. Robert J. Turner II
Harrington Electric Co., Ohio Turner Electric Service, Inc., Michigan
Harvey Morrison Angelo Veanes
Pritchard Electric Co., West Virginia Ferguson Electric Construction Co., New York
Joel Moryn Brad Weir
Parsons Electric Company, Minnesota Kelso-Burnett Company, Illinois
Walter T. Parkes* Jack W. Welborn
O’Connell Electric Co., New York Electrical Corporation of America, Missouri
Skip Perley David A. Witz
TEC-Corp/Thompson Electric Co., Iowa Continental Electrical Construction Co., Illinois
In memory of Alfred C. Thompson Robert M. Zahn
Robert L. Pfeil, d. Chewning & Wilmer, Virginia
ELECTRI Council, 1991-2007
NECA Chapters and Affiliates
David Pinter
Zwicker Electric Company, Inc., New York AMERIC Foundation (Mexico)
American Line Builders
Carl J. Privitera, Sr.
Arizona
Mark One Electric Company, Inc., Missouri
Atlanta
Dennis Quebe Boston
Chapel Electric Company, Ohio Canadian Electrtical Contractors Association
Stephen J. Reiten* Cascade
M. J. Electric, Inc., Michigan Central Indiana
Frank Russell Central Ohio
Bagby & Russell Electric Co., Alabama In memory of Greater Cleveland
Robert L. Russell Greater Sacramento
Tim Russell Greater Toronto Electrical Contractors Association
R.W. Leet Electric, Inc., Michigan Michigan
Milwaukee
Frederic B. Sargent Minneapolis
Sargent Electric Co., Pennsylvania New York City*
Rocky Sharp North Central Ohio
Carl T. Madsen, Inc., Washington Northeastern Line Constructors
Turner Smith* North Florida
Dillard Smith Construction Co., Tennessee North Texas
Herbert Spiegel Northern California
A tribute in memory of Flora Spiegel, Corona Industrial Oregon-Columbia
Electric, California Oregon Pacific-Cascade
Penn-Del-Jersey
Greg E. Stewart San Francisco
Superior Group, A Division of Electrical Specialists Ohio Santa Clara Valley
Jeff Thiede Southeastern Line Constructors
Oregon Electric Construction, Oregon South Florida
Ronald J. Toomer South Texas
Toomer Electrical Co., Inc., Louisiana UNCE (Union Nacional de Contructores
Electromecanicos, A.C.) Mexico
Washington, D.C.
Western Line Constructors
Western Pennsylvania
West Virginia-Ohio Valley

v
Acknowledgements
The research team would like to acknowledge the contributions of the ELECTRI Council members and staff
who contributed to this project, and ELECTRI International for providing the financial support. Significant guid-
ance was provided by the project’s Task Force, made up of the following individuals:

Mark Ayers David Manderson


Director of Construction, IBEW Manager—North Texas Chapter, NECA

William C. Belforte Jerrold Nixon


Executive Vice President—Illinois Chapter, NECA Chapter Representative—Chicago & Cook County
Chapter, NECA
Robert J. Bruce
President, Bruce & Merrilees Electric Co. Walter Parkes
President & CEO , O’Connell Electric Company
Don Campbell
Executive Director—Northern California Chapter, NECA David Roll
Chapter Manager—Western New York State Chapter,
Robert Daoust NECA
Del Monte Electric Co., Inc.
Richard Schmid
Bob Gasperow Vice President, Marketing, Crescent Electric Supply
Executive Director, Construction Labor Research Company
Council
Bill Triplett
Jerry Hayes Executive Director Labor-Management Standards,
President, United Electric Company, Inc. NECA

Jason Joerg James Voye


Thomas & Betts Director, IBEW Research Department

Anthony “Tony” Maloney III David Yockel


Vice President of Construction, Koontz-Wagner Senior Manager, IBEW Education & Research
Electric Company, Inc. Department

This ELECTRI International research project has been conducted under the auspices of the Research Center.

©2007 ELECTRI International—The Foundation for Electrical Construction, Inc.


All Rights Reserved
The material in this publication is copyright protected and may not be reproduced without the
permission of ELECTRI International.

vi
Table of Contents
1. Executive Summary..............................................................................................................................1

2. Abstract .................................................................................................................................................3

3. Introduction...........................................................................................................................................5

4. Investigation of Current Methods of Market Calculation ................................................................9


4.1.Market Share Measurement Methodologies in Other Industries.........................................................................11
4.1.1.Market Measurement Based on Units of Production...............................................................................11
4.1.2.Market Measurement Based on Dollar Value (Economic Size) ..............................................................11
4.2. Current Electrical Construction Market Share Methodologies...........................................................................12

5. Development of a New Methodology for Measuring Market Share .............................................13


5.1. Definition of Electrical Construction Markets .........................................................................................................13
5.2. Identification of Economical Electrical Construction Market...............................................................................13
5.3. Formulation of an Economic Market Size methodology .......................................................................................13
5.3.1. Analysis of Data Sources ................................................................................................................................14
5.3.1.1. Analysis of Data Source Coverage..................................................................................................16
5.3.2. Investigation of Reliable Indicators ..............................................................................................................17
5.3.2.1. Explanation of Correlation Coefficient & Coefficient of Determination (R2)......................17
5.3.2.2.Verification of Correlation Coefficient ...........................................................................................17
5.3.3. Adoption of Data Source for Market Size Measurement.......................................................................17
5.4. Explanation of Economic Market Size Methodology ..............................................................................................21
5.4.1. Methodology in Brief.......................................................................................................................................21
5.4.2. Local Markets....................................................................................................................................................21
5.5. Market Share Calculation ..............................................................................................................................................22

6. Application (Steps to Calculate Economic Market Share for Electrical Construction at the
National, State or Local Level) .........................................................................................................25
6.1. Calculation ........................................................................................................................................................................25
6.1.1. Calculate Economic Market Size ..................................................................................................................25
6.1.1.1. National Economic Market Size ......................................................................................................25
6.1.1.2. Calculate State Economic Market Size (MS),Overall..................................................................26
6.1.1.3. Calculate State Economic Market Size (MS), by type of work.................................................26
6.1.1.4. Calculate Local Economic Market Size ..........................................................................................27

vii
MARKET SHARE

6.1.2. Calculate Share of Economic Market ..........................................................................................................28


6.1.2.1. Identify revenue dollars or equivalent............................................................................................28
6.1.2.2. Calculate market share......................................................................................................................28
6.2. Example: Calculation for State of Georgia ................................................................................................................28
6.2.1. Calculate Economic Market Size ..................................................................................................................28
6.2.1.1. National Economic Market Size: .....................................................................................................28
6.2.1.2. Georgia Economic Market Size (MS), Overall:.............................................................................29
6.2.1.3. Georgia Economic Market Size (MS), by type of work:.............................................................30
6.2.1.4. Atlanta/Local 613 Economic Market Size......................................................................................31
6.2.2 Calculate Market Share ...................................................................................................................................32
6.3. Market Calculation Tables..............................................................................................................................................34
6.4. Market Share Take-Away Card....................................................................................................................................37

7. Conclusion ...........................................................................................................................................39

8. References ...........................................................................................................................................41

All appendices for this report are available to download at


http://www.electri.org/active/?fa=appendices

viii
1. Executive Summary
Even if a reported market share of over 100% can All of these goals were achieved. The methodolo-
be explained, it is still an inaccurate representation of gy detailed in this report will enable NECA and the
markets, which hampers collaboration between the IBEW to set aside their differences and focus on what
IBEW and NECA. The lack of a common definition of matters the most:
market size and share has seriously reduced the devel- ■ common strategy
opment and application of winning strategies between ■ market expansion
these two organizations. Market share has become a
■ system productivity and labor management
negotiation tool to win concessions from each other
After an intensive investigation of all the existing
instead of a tool for developing a common strategy to
methodologies and data sources, the most reliable,
win back the market.
repeatable, unbiased, and accurate data sources were
The roots of this research date back to an August
selected and used to develop an Economic Market Size
2003 NLMCC (National Labor-Management
methodology for the calculation of the market.
Cooperation Committee) workshop conducted by
This method uses Construction Put In Place
MCA, Inc. during a meeting of top-ranking NECA
(CPIP) as the basis for construction market size.
and IBEW executives in Knoxville, Tennessee. During
Highly correlated Electricity End Use (EEU) is then
this four hour workshop, industry executives “guessti-
used to scale the market by its categories. The con-
mated” their market share as shown in Table 1, first
struction value ratio is used to calculate the specialty
published in A Comparison of Operational Costs of
Union vs. Non-Union Electrical Contractors. (Ref. 1) At
the conclusion of this session it became obvious that a
Table 1: Perceived EC Market Share
study was necessary to commonize the approach to (as defined by NECA & IBEW executives)
market share calculation.
The research approach utilized the following steps: ■ Industrial 58%
■ Look at what is out there currently being ■ Governmental/Institutional 52%
done ■ Line 48%
■ Determine how others calculate their market ■ Highway 34%
share ■ Commercial 25%
■ Develop an unbiased and reliable method ■ Service 18%

■ Recommend development of the common ■ VDV 10%


strategy ■ Residential 6%

1
MARKET SHARE

contractor’s portion of the construction market. This


method is used at both the national and state level.
Due to lack of local level reporting of CPIP, the local
population is used as the correlating factor for calcula-
tion of the local markets.
This methodology is very stable and unbiased.
Following the suggested steps will always result in the
same conclusion.

2
2. Abstract
The study was commissioned with the following ■ Conducting a pilot for recommended
goals and objectives: method of measuring market share
■ A simple theory for calculating economic ■ Recommending a methodology to measure
market share market share that can be used by NECA
■ A recommended method of measuring mar- chapters and IBEW locals
ket share for NECA chapters and IBEW
locals, the electrical contractors, and the gov-
ernment
■ Identification of the potential correlations
between productivity, profitability, and mar-
ket share
■ Recommendations of strategies to regain
market share
To achieve the research goals, the approach was to:
■ Define the economic electrical market
■ Identify electrical markets by their sectors
and geography
■ Formulate a common methodology to meas-
ure market share by NECA chapters and
IBEW locals
In the approach, the research was focused on:
■ Identifying how electrical contracting and
non-construction industries measure market
share
■ Developing theories for the electrical con-
tracting industry to calculate and use market
share data
■ Testing and validating theories and confi-
dence in measurement

3
3. Introduction
Market share has been one of the primary meas- a. Stop the erosion at the local levels
urements of business since the early 20th century. It is b. Regain the lost markets
a measure of the performance of an organization rela-
c. Expand into new markets
tive to its competitors in a particular industry. Share
Implementation of this recovery plan requires a
of the market by itself, although an indicator of rela-
thorough understanding of the root causes of erosion
tive strength, does not independently justify any con-
of the market share. The fishbone diagram in Figure 1
cern—or lack thereof—for the health and wealth of an
(next page) identifies some of the causes of union
industry or organization. Profitability, productivity,
market share erosion. To regain or expand market
and market share need to be evaluated simultaneously
share, all the root causes of erosion have to be
in order to gauge the individual success of any opera-
addressed. However, to achieve this objective, the
tion or organization.
entire economic market size and its trends need to be
Independent of the methodology used to calculate
known and measured. Only by using a methodology
the size and share of the market for the signatory con-
that can be consistently applied throughout the coun-
tractors and IBEW, current measurements show a 30-
try can NECA and the IBEW develop the necessary
year decline. (Ref. 1) To regain lost market share and
common national and local strategies to halt the ero-
reestablish the IBEW in its historical position of eco-
sion, recapture former markets, and expand into new
nomic strength, the market must first be correctly and
markets.
consistently defined. Only once the market has been
One of the main contributors to the erosion of the
established using a common definition can the market
signatory contractors’ and the IBEW’s market share is
share be reliably measured and a common strategy
the market control method used by IBEW and con-
developed to regain the lost share.
tractors. In a market economy the markets can be
The steps for halting and reversing the downward
controlled either by the supply-side—limiting the
cycle are as follows:
number of providers of a product or service—or by
1. Use a common method of measurement for the demand side—the demand presented by the con-
market size and share sumers. Supply-side market control is typically pres-
2. Recognize all the available markets ent in niche and specialty markets; demand-side mar-
3. Identify the root-cause of market erosion ket control appears primarily in commodity markets.
4. Develop and implement common national The IBEW and NECA contractors’ historical
strategies to: approach to market control has been that of supply-
side control by limiting the number of electricians

5
MARKET SHARE

Figure 1: Root causes of market share erosion and their interrelationships.

Technology advances
Tools Environment
Technology availability

Technology advances Shift of work from industrial to commercial

Technology availability Proliferation of the market (customer choice)

Technology cheaper GDP overall shift to service work

Power tools, etc. make Customer’s expectation has gone from


installation easier technical skill to perceived value

Erosion of
Market Share

Offshore purchase of material Need for production skill is more Younger generation attracted
important than technical skill to newer technology markets
Internet availability of material
prices Need for agility Skill required for “commerical”
market not as high
Margins for material no Material managment
longer there for contractor
labor is more important) People management Power tools, etc. make
installation easier
More “plug and play” Time management
kind of material Production skill is more
Labor usage is only way to important than technical skill
make money
Materials Process People

entering and remaining active in the workforce. This expertise has been drastically reduced. New players
practice was very useful during the era when the from less skilled merit shops can enter the market.
industrial work dominated the electrical market. The expansion of the market for the next twenty years
Industrial work required a specialized workforce and, will continue to be in the commercial-residential area.
by controlling the number of the electricians, the American Demographics predicts a doubling of the cur-
IBEW controlled the market and pricing. rent floor space as the American population is expect-
Since the early 1980s, the dominant electrical mar- ed to increase by another 20-25%. (Ref. 3)
ket has flipped from industrial work to commercial The supply-side control, once the strength of the
and residential work. The market shift to the com- IBEW, has now become its most potent handicap. For
mercial-residential type of work does not require as the IBEW and NECA’s strategy of market share expan-
many specialized electricians (Figure 2). In a com- sion to be effective, the limiting factors of expansion,
modity market the supply-side control is no longer as as identified in an earlier study, have to be removed.
effective. The threshold of entry and required level of (Ref. 1) The limiting factors are:

6
INTRODUCTION

Figure 2: Economic shift from industrial to commercial-residential market.

60%
Residential Commercial Industrial Other
50%
Construction Market Size

40%

30%

20%

10%

0%
1949
1952
1955
1958
1961
1964
1967
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
Year

■ Number of available electricians union electricians. Therefore the market share will
■ Composite ratio increase, presenting the opportunity for additional col-
■ Portability laboration. Higher profits enable better training and
usage of technology, lowering the costs of providing
■ Required training levels and skills of electricians
services and increasing the funds available for strategic
■ Lack of system productivity by weak labor
expansion (Figure 3).
management
The collaboration between the IBEW and signato-
ry contractors has to start with a focus on system pro-
ductivity through reduction of the five limiting fac- Figure 3: Virtuous cycle of market share,
tors, which will enable increased profitability of the productivity and profits.
contractor. In a commodity market, the contractors
can only be profitable if they are low cost providers.
(Ref. 4, 5) Low cost is not the same as cheap. Low
Increased
profits
cost providers of electrical installation and services Increased Low cost
provide high quality work at a lower cost through productivity provider
higher system productivity. Low cost providers in a Only low-cost
commodity market can offer profitable market-based providers can expand
market share
pricing, enabling them to increase their sales. NECA/IBEW Increased
Increased sales will increase employment, which will collaboration sales
increase the employment of union electricians. More Increased
employed union workers will allow the IBEW to market share
increase the portion of the labor market controlled by

7
MARKET SHARE

Figure 4: Number of electricians and signatory electricians in the United States.

700,000
Total Electricians Signatory Electricians
600,000
Number of People

500,000

400,000

300,000

200,000

100,000

0
1972 1977 1982 1987 1992 1997
*Data taken from the Economic Census and NECA

It is of utmost importance to realize that the his- tion of the open-shop contractors has helped
torical supply-side control of the industrial market them increase their market share. The number
should not be relinquished; new strategies should of Signatory electricians has remained relatively
complement the existing doctrine for more aggres- constant while the total number of electricians
sive expansion into the commodity markets present- has steadily increased.” (Figure 4), (Ref. 1)
ed by commercial and residential growth.
The earlier study (Ref. 1) also identified the rela-
tionship between the declining union market share
and the reduction of industrial work as a portion of
the US economy:
“The profitable markets that union contractors
have had a historical dominance in, such as line
work, power generation, manufacturing and
industrial are continuing to erode while some of
these markets, such as line and power generation,
may have a rebound opportunity. On the other
hand, the opposite is true for the non-union con-
tractors’ typical markets. The markets in which
they specialize—commercial, VDV, and service—
have all increased in size over the past 30 years.
The shift in market and reduced cost of produc-

8
4. Investigation of
Current Methods of
Market Calculation
Current measurements of the market share of sig- of Labor or Colorado State Electrical Board). Others
natory contractors and the IBEW show a 30-year simply take a physical survey to determine how many
decline. (Ref. 1) The fact that the union market share local jobsites are union versus how many are non-
is declining is recognized. However, the severity of the union. (Figures 5,6 next page)
decline varies depending on whose data and calcula- Many of the local studies are special “one time
tions are used. These differences in the measurement only” study measurements.
of the union share of the electrical contracting market
These one time studies
have hampered the development of an industry-wide
■ do not allow tracking of market share trends
strategy focus on regaining union market share that
can be jointly supported with the collaborative ■ cannot capture anomalies
strength of NECA and the IBEW. ■ are not comparable from jurisdiction to juris-
At local levels, contractors, NECA chapters, and diction
IBEW locals use a variety of methods to calculate vari- In addition, many local areas report no methodol-
ous measures of market penetration. The diversity in ogy or measurements at all. In many cases, when
methodology stems from both the need to understand asked for a measure of the local market share, chapter
the local situation from particular viewpoints as well managers responded with “best guesses” or “gut feels.”
as from the local availability, or lack of availability, of Substantial differences in measurement—both
certain data. Many of these methods are very well what is being measured and how the information is
suited to a particular purpose and very applicable to gathered and compiled—occur even at the national
understanding a particular issue or recognizing the level. For example at the national and state level,
market in a local area. However, the methods do not NECA maintains its market trend data on an employ-
measure the Economic Market Size in a manner that ment basis (Appendix B), while an IBEW method cal-
can be consistently extended on a national basis to culates the worker share by dividing the number of
evaluate the entire market. IBEW electricians by the total number of electricians.
For example, some NECA chapters and IBEW (Appendix C), (Ref. 6, 7) Although market informa-
locals have hired market researchers or utilized the tion in this format reveals demographic and employ-
resources of a local university to determine their chap- ment trends in population, the two measures are not
ters’ market, often using local data not readily available comparable as they use unrelated units to evaluate
in other markets. Some chapters and locals use local components of the market, not the market itself.
agencies to gather information (e.g. Colorado Division These substantial differences prevent a common
understanding of the true economic situation.

9
MARKET SHARE

Figure 5: Methods used by NECA chapters to calculate market share.


100%
% of Respondents Using Method

80%

60%

40%
32%

20% 15%
12%
9% 9%
6% 6%
3% 3% 2% 3%
0% its I
B LS BF ET
NE COM Perm dge on s IRS NSUS FM g
thin answe
r
Do Divisi Labor CE No o
al of N
Loc

Method Used *Data taken from MCA survey

Figure 6: Methods used by IBEW locals to calculate market share.


100
% of Respondents Using Method

80

57%
60

40

20 15%
12% 10%
6%

0 i ts
ion or d her rm tion we
r
f un ages, worke Ot al p e ula ans
ce nt o
s, w ur s ctr
ic Pop N o
Per orker ho Ele
w
Method Used

10
INVESTIGATION OF CURRENT METHODS OF MARKET CALCULATION

4.1 Market Share Measurement ket since the dollars cross industry boundaries. For
Methodologies in Other Industries example, Coca-Cola has a global distribution while
Market share is determined by the simple ratio of PepsiCo is limited in that regard, and PepsiCo’s pri-
the portion of the market controlled divided by the mary source of income comes from snack food sales
total market. (Frito Lay), instead of
EconMSStateEC = [
State Construction
beverages.
Market $
examples of unit share measurements. [[
Referxto State
TableE2Factor%
for
100%
(Ref. 8, 9, 10, [
portion of market controlled 11, 12, 13)
Market Share =
total market available
4.1.2 Market Measurement Based on Dollar
StateEEUCat
From industry to industry, the methodology of Value (Economic
State EEU%Cat = Size) x 100%
U.S.EEUTotal
measurement varies as does the industries’ determina- Value based measurements measure the market in
tion of the available market. However, in general, dollars rather than quantity. Value based measure-
industries measure their market, and therefore their ments are common in industries in whichStateEEU% the product
marketEEU

share, in one
Cat% Ind
U.S. EEUInd
= of two ways: x 100%
U.S. EEU
Total
Unit count methodology: number of units
[ State Construction
sold to a customer
Market $ is not [ = [CPIP$] [
x
uniform, or the products
EEU Cat
consumable (food) or low-priced retail (such as cloth-
[
Cat
100% are

produced or sold
U.S. EEURes ing). Most retail and service sectors use dollar meas-
EEU Cat%Res = x 100%
■ U.S. EEUTotal dollar value of
Value basis methodology: urements, calculating the market by the total industry
StateVEC EEU Cat
products or services StateE Factor%
sales or revenues and =
the market
EEU Cat x 100%
share by the portion
U.S. EEU StateVTC EEU Cat
Com
EEU Cat%Com = x 100% of sales from a particular entity (or segment) as a por-
4.1.1 Market U.S. EEUTotal
Measurement Based on Units
tion of the total industry sales. Value based measure-
of Production U.S. EEUT/O ments are also used in industries that do not have con-
EEU
Unit Cat%measurements
share T/O = U.S. EEU are frequently
Total
x 100% used in
industries in which the products are relatively uniform
StateEconMS
ventional [
EEU Cat =
“sales”(such
State Construction
as Market
banks and [
$ credit [
x StateE Factor%EEU C
unions,
EEU Cat
which measure their market share based on the funds
100%

and there is a prevailing price (such as commodities), they control compared to that in circulation).
[ Construction
or in industries
Market $
diversified (such as the[
where top=competitors EEU Cat %
[CPIP$] x are so highly
beverage industry)100%
EEU Cat that com-
Investment firms are another example, measuring
based on the
EconMS funds
StateEC Σ
= theyStateEconMS
control. EEU Cat
EEU Cat
paring dollars will not draw a clear picture of the mar-

Table 2: Unit
E Factor% Share
EEU Cat =
VECEEU Cat
Measurements
x 100% from Different Industries
VTCEEU Cat
Σ
counties CountyPopulation
Pop%Local Area = x 100%
StatePopulation
Industry Unit Share Measurement
Commodities Amount of the material (for example, weight of material) mined or produced
EconMSEEU Cat =
Public Education [
(Steel, Copper, etc.)Construction
Market $ [
EEU Cat Number 100%
[
xand Edistributed,
Factor%EEUoutCat
[
of the total global production or distribution.
EconMS
of students enrolled in a LocalEC
=
particular Σ
LocalEconMSEEU Cat
school or district
EEU Cat out of the total
potential students in the school or district.
Broadcasting Number of audience members reached by advertising out of available audience
members. Labor $
Revenue =
Automotive
EconMSNatEC = Σ
EEU Cat
EconMSEEU Cat Number of cars sold (rather than revenue0.43 earned) by a particular manufacturer
or in a given product line out of total cars sold.
Beverage Number of sales of individual soda units sold domestically
Revenue by brand.
StateEEU EconMktShare = x 100%
EconMS
State EEU% = x 100%
U.S.EEU

[ State Construction
Market $ [EEU Cat
= [CPIP$] x [ StateEEU%
100% [ LocalEconMSEEU Cat = (StateEconMSEEU Cat) x (Pop%Local Area)

11
StateVEC
MARKET SHARE

Some industries are in a position to use both value judgment or expertise, allowing for inconsistent appli-
and unit measurements to evaluate their market posi- cation. (See Appendix D for complete references.)
tion. For example, the cellular phone industry uses a Current methods of calculation have major limita-
unit basis—the number of cell phones sold or activat- tions, such as:
ed, or number of accounts—as well as a dollar basis to
a. only measuring the current markets in which
evaluate the dollars controlled through contracts and
the electricians are engaged
service plans in addition to phone units. (Ref. 14)
b. not showing the new and emerging markets
4.2 Current Electrical c. not showing the additional existing markets
Construction Market Share that could be captured by the electrical contractors
Methodologies d. yielding local measurements that will not
Current unit measurements, such as hours worked allow the development of a national strategy for mar-
or employed electricians, do provide valid information ket share recapture
about local conditions. Historically, electrical con- The electrical construction market is constantly
struction was primarily industrial and the work was evolving, especially as technology changes the nature,
more easily defined and measured by hours of installa- the applications, and the requirements for electrical
tion. As the market has transformed to a higher pro- services. In addition, the electrical construction indus-
portion of commercial and residential work, this is no try as a whole does not have a single uniform product,
longer a sufficient measure of the end product. The like cars or tons of copper, that is easily defined and
percent of union electricians working or the percent of understood. However, the electrical construction mar-
hours worked are not currently adequate for measur- ket can be impartially defined by its economic impact
ing either the market itself or the amount of work the —that is by the dollars available to the industry.
market is capable of sustaining. In addition, wage
share measurements cannot help the contractors be
competitive since labor cost does not reflect the
amount of work available or captured.
Some current value measurements, although also
valid and relevant locally, are based on data that is not
nationally available. Other current value measures
encounter the same limitations met by the unit meas-
ures of not adequately measuring the entire market.
For example, percent of wages earned is an important
measure, but is driven by factors other than the market
size, including local labor rates, competition and the
productivity of the labor force. In another example,
electrical distribution only measures wholesale sales,
missing a large portion of the residential market. Other
methods employ data that is infrequently or inconsis-
tently measured or utilize subjective “factors” requiring

12
5. Development of a New
Methodology for
Measuring Market Share
5.1 Definition of Electrical ect perspective, and inventories. Restricting the mar-
Construction Markets ket by excluding any of the work, even unintentionally
Before measuring the market, the boundaries must as a result of a lack of data, limits the market and
be defined. Without common agreement on the overstates the economic share.
boundaries, measurements cannot be compared. For Once the definition of the economic electrical
example, in the automotive industry, one company market is uniformly recognized, an appropriate meas-
represents its market as the entire transportation ure for the economic market must be identified. This
industry while another represents its market solely as measure will establish the market size that will then be
the number of passenger cars sold. (Ref. 13) used as the basis for determining market share.
A definition of the market must also recognize The electrical market size will be defined by the
and respond to a changing industry. For example, annual national expenditures on electrical construc-
when the dominant forces in the beverage industry tion work and referenced using the term “Economic
measured the market share by comparing domestic Market Size.”
sales of carbonated beverages, other competitors were
aggressively pursuing bottled water, energy drinks and 5.3 Formulation of an Economic
other bottled soft beverages. By only measuring the Market Size Methodology
historically recognized market, significant portions of In order to meet the underlying needs of this
the new drink market went unrecognized until the research, a market model must be applicable national-
impact affected the industry powers. (Ref. 8) ly as well as extendable to an economic model that is
locally applicable. In addition, the method must be
5.2 Identification of Electrical easily understood and easy to use. Most importantly,
Construction Economic Market however, the method itself must be neutral and unbi-
A common methodology for measuring market ased (Table 3, page 15).
share begins with a common understanding of the Any methodology that meets the above criteria
electrical construction market. The nature of electri- must use an impartial data source in addition to being
cal work encompasses a broad spectrum of services in a neutral methodology. The data itself must be consis-
many different arenas. The market itself can be divid- tently and frequently reported and reliable.
ed in many different ways, as shown in Figure 7 (next Furthermore, it must be accurately measured at
page), and assessed from any of those viewpoints: type national and local levels and publicly or inexpensively
of contract, type of work, geographical segments, proj- available. Finally, it needs to allow for segregation by

13
MARKET SHARE

Figure 7: Dimensions of the electrical construction market.

Design-Build
Plan & Spec
Cost Plus Type of
T&M Contract

l nal ay
en tial ercia t rial ti o ighw e
us titu /H e vic
sid mm Ind avy Lin VD
V r
Re Co Ins H e S e Type of
Work

nal l
rna
t i o
ional giona te al
Inte Na
t Re Sta Loc
Geographic
Segments

r
ect eer tor cto
Pro j
er ngi n
n t rac
n tra
u tor t urer
r n t/E o o i b ac
ed
fo Ow i tec ral C i alty
C
D istr anuf
e h e c M Project
N Arc Ge
n
Spe Perspective

Material
Labor
Financial Inventories/
Costs

types of work, and recognize both existing and emerg- were investigated to determine which, if any, were best
ing markets. able to establish the entire market size.
This report introduces many different data
5.3.1 Analysis of Data Sources
resources, including potential sources of market meas-
Many data sources, including those from the
urement, measurement methods historically used by
Department of Labor’s Bureau of Labor Statistics
NECA chapters or IBEW locals, and sources actually
(Refs. 15, 16); U.S. Department of Commerce’s Census
used in the calculation of Economic Market Size.
Bureau: Construction Put in Place (CPIP), Permits,
Appendix E contains an index card file. Sources
Population, (Refs. 17, 18, 19); McGraw Hill’s Dodge
that were investigated as potential sources for measur-
Reports (Ref. 20), and other market indicators such as
ing the market have an index card associated with
the U.S. Department of Commerce’s Bureau of
them. The index cards (Figure 8) provide information
Economic Analysis’ Gross Domestic Product (Ref. 21),
on the data source: a brief description of the informa-

14
DEVELOPMENT OF A NEW METHODOLOGY FOR MEASURING MARKET SHARE

Table 3: Criteria for Market Model and Data Source

Market Model Criteria Data Source Criteria


■ Neutral and unbiased ■ Consistently reported
■ Nationally applicable ■ Frequently reported
■ Extendable to a local level ■ Reliable
■ Easily understood ■ Accurately measured at local and national levels
■ Easy to use ■ Publically or inexensively available
■ Allows for segregation by type of work
■ Recognizes existing and emerging markets

tion, the authority for the data (who collects or for calculations and the calculations themselves,
reports), the collection and publication frequency, geo- appear throughout the text. Unless otherwise indicat-
graphic divisions, and appendix references for the data. ed, calculations are presented using 2004 data. State
Index tables, brief tables used to show sample data and local level examples are presented for Georgia.

Figure 8: Sample index card format.

[Data Keyword]

Description [Description of what the data measures]

Units of Measure [Units of measure used, if any]

Authority [Who requests data collection]

Geographic division(s) of the [All of the possible divisions for which the data is available (e.g. interna-
data tional, national, regional, state, city, county)]

Reference [Where the data is published, including website addresses if available]

Collection: [How often Publication: [How often data is pub-


Frequency
data is collected] lished]
Lag: [Time difference between collec-
tion date and publication date]

Appendix Reference [Appendix containing the data set in raw format]

15
MARKET SHARE

Georgia was selected to provide an example of the account the market demand. Wage data is only
methodology from start to finish; the state provided reported in historically defined categories; for exam-
data and full cooperation for the example. ple, the definition of an electrician excludes techni-
Appendices F-K provide replicas of the data cians doing work that could be a potential market for
sources as well as additional information on the electricians, such as alarm systems, tree trimming, etc.
source, including source methodologies for data col- The wage data also includes office employees in the
lection, and definitions. same categories as technicians. In addition, the BLS
data recognizes residential but not industrial or com-
5.3.1.1 Analysis of Data Source Coverage mercial breakdowns of work, so a measure of the mar-
Subsections of the electrical construction market ket share for a certain type of work is not available.
itself are measured with varying degrees of coverage. (Appendix F)
Some categories are thoroughly covered; others are National Electrical Benefit Fund data is another
barely reported at all (Table 4). Many sources overlap, source of wage data commonly used to identify the
some with input from a multitude of entities, making union market, however this data is not publicly avail-
it difficult to easily construct the market from multiple able and as a wage source, it is subject to the same lim-
sources. Markets are generally measured historically; itations as the BLS data. (Ref. 22) It also does not rec-
new markets are often recognized late, if at all. ognize the non-union portion of the market as there is
The U.S. Bureau of Labor Statistics (BLS) provides no comparable measure for non-union labor.
data on electrician employment and wages nationally (Appendix C), (Ref. 5)
and by state. (Refs. 15, 16) The limitation here lies in Some contractors or NECA chapters have attempt-
the data itself, not the source. The union’s share of ed to measure the available market using building per-
electrician employment or wages does not take into mits. Building permits only measure new work; the
measurement would not include potential mainte-
nance, renovation, or repair work. Only residential
Table 4: Coverage Provided by Various permits are easily publicly available. In addition, per-
Data Sources mits are regulated at a local level; a difference in
requirements and reporting makes this a valid source
Data Sources Geographic Segments only on a local basis.
National State Local Additional source limitations are noted in
Dodge (upcoming Appendix D.
contracts)
— — —
The data source with the best ability to recognize
BLS (wages and
hours worked) — X X the Economic Market Size as required to address the
underlying market share erosion, along with the most
Bldg Permits X X — potential to capture unrecognized or emerging mar-
NEBF (IBEW
wages)
— — — kets, is the Value of Electrical Construction Work. (Ref.
23, 24) This measure includes new construction, addi-
EIA (electricity
* * * tions and alterations, and maintenance and repair con-
end use)
struction work. It also includes the value of work
Legend: * Covers — Partially covers X Does not cover being done by the reporting establishments themselves

16
DEVELOPMENT OF A NEW METHODOLOGY FOR MEASURING MARKET SHARE

and the value of structures being built or to be built Correlation is measured using the statistically cal-
for sale in the same year as reported. (Appendix G.1) culated correlation coefficient (R), which takes on val-
However, even this measure faces limitations. The ues between -1 and 1. Perfect correlation between two
U.S. Census Bureau measures the value of electrical factors occurs when R exactly equals one or negative
construction work only every five years as part of the one, and means that if one factor changes, the other
Census of Construction, with a lag of 24 months for changes accordingly. If one factor increases (or
contractor-specific data and 31 months for geograph- decreases) by a certain amount, the other factor
ic-specific data between collection and publication. changes by a predictable amount. The closer the R
(Appendix G.2) Also, “electrical construction” is still value is to 1 or -1, the more predictable the value
limited by historical definitions. (Appendix G.3) (Figure 9, next page). A second measure, the coeffi-
cient of determination, also known as the R2 value,
5.3.2 Investigation of Reliable Indicators indicates how much of the variation (the difference
The investigation of sources included a search for from the expected value) of the second factor directly
a market indicator: a non-construction measurement results from variation in the first factor.
that could be used as a reference index to the electrical
5.3.2.2 Verification of Correlation Coefficient
market and would reflect its trends. Indicator meas-
ures were subjected to the same criteria as other As evident in Figures 10-12 (next page), there is a
potential sources (see Table 3, page 15). First and fore- very strong relationship, R2=.9986, between electricity
most, the indicator must be neutral. It must be reli- generation (Appendix H.1) and Electrical End Usage
ably, accurately, and consistently measured. It must be (EEU) (Appendix H.2)—as more electricity is used,
frequently reported at national and local levels, segre- more is produced and vice versa; as more is produced,
gate the market by types of work, and recognize both more electricity is consumed. An increase in either
existing and emerging markets. In addition, it must be one indicates a proportionate increase in the other.
publicly or inexpensively available. 99.86% of the volume of kilowatts consumed can be
predicted by knowing the volume of megawatts pro-
A clear relationship was identified between the
duced. There is also a very strong relationship
generation of electricity, the use of electricity and the
between the volume of electricity produced and CPIP
construction market—the entities that allow the use of
(Appendix I.1), and the volume of electricity con-
electricity. This relationship can be looked at another
sumed by EEU and CPIP. As Electricity End Use and
way: electricity is generated, distributed, and used
generation have increased, construction has increased
(Ref. 2), and in order to do any of these things, the
proportionately. In each case, annual changes in the
infrastructure must exist—electricity cannot be used
amount of electricity used or generated determines
without the panels, the wires, and the distribution
over 96% of any changes in value to the annual expen-
equipment.
ditures on construction with extremely high, near per-
5.3.2.1 Explanation of Correlation Coefficient fect correlation. (Appendix J)
(R) & Coefficient of Determination (R2)
5.3.3 Adoption of Data Source for Market Size
Correlation analysis can be used to identify the
Measurement
strength of the relationship between a non-construc-
While investigating potential data sources, it was
tion indicator and the construction market. The clos-
found that, in addition to its high correlation to CPIP
er R2 is to 1, the stronger the relationship.

17
MARKET SHARE

Figure 9: Correlation analysis can be used to identify the strength of the relationship between a non-con-
struction indicator and the construction market.The closer R2 is to 1, the stronger the relationship.

R2 ~ 1 R2 ~ 0

# Hurricanes in FL
Births 1946–1964

Crime Rate

World War II Returnees Phase of the Moon U.S. Population


Strong Moderate Weak or No
Correlation Correlation Correlation

R2 = The distance (squared) from the points to


the fitted line.

dollars, EEU meets all of the requirements in Table 3 (Table 6, page 20). However, because of the extremely
(page 15). Strict government regulation makes EEU a high correlation, the EEU can be used to allocate the
highly reliable, frequently measured, and publicly avail- CPIP to market categories. This flexibility in alloca-
able data source. (Appendix H.3) All electricity used by
any consumer, independent of its source (internal or Figure 10: Very strong relationship between EEU
external in the United States) is reported on a monthly and electricity generation. (Ref. 2)
basis. The data is published monthly with a lag of four
months between collection and publication. 4,200

R2 = 0.9986
EEU segregates the construction market into elec- 4,000
(in billions kWh)

trical categories (Table 5):


Generation

3,800

■ Commercial 3,600

■ Industrial 3,400

■ Residential 3,200

■ Transportation/Other
3,000

EEU on its own is not a market dollar measure; it 2,700 2,900 3,100 3,300 3,500 3,700

is being used for the scaling of construction work Electricity End Use
(in millions MWh) 1993–2004 data, Source: EIA

18
DEVELOPMENT OF A NEW METHODOLOGY FOR MEASURING MARKET SHARE

Table 5: Electricity Usage Segments (as defined by the Energy Information Administration)(Ref. 2)
■ Residential Consists of living quarters for private households. Excludes institutional living quarters and may
exclude apartment buildings if they fall under commercial category.

■ Commercial Consists of sercice-providing facilities and equipment of businesses; federal, state and local
governments; and other private and public organizatons, such as religious, social, or fraternal
groups.The commercial sector includes institutional living quarters, sewage treatment facilities,
and street lighting.

■ Industrial Consists of all manufacturing facilities and equipment used for producing, processing, or
assembling goods.The industrial sector encompasses the following types of activity:
manufacturing; agriculture, forestry and fisheries; mining; and construction. It may include energy
deliveries to large commercial customers and may exclude deliveries to small industrial
customers which may be included in the commerical sector.

■ Transportation Consists of electricity supplied and services rendered to railroads and interurban and street
railways, for general railroad use including the propulsion of cars or locomotives.

■ Other* Consists of electricity consumers not elsewhere classified.This category includes public street
and highway lighting service, service to public authorities, railroad and railway service, and
interdepartmental services. *EIA discontinued use of this classification in 2003.

tion avoids the historic limitations of “definition of Current CPIP category definitions are shown in
electrical work” and allows the recognition of new Appendix I.2; EEU category definitions are shown in
electrical markets, even before they are defined as Appendix H.4. Table 7 (next page) shows a matrix that
such, since they will be covered in one of the end use allows the translation from one to the other, allowing
categories. CPIP to be segregated according to the EEU categories.

Figure 11: Very strong relationship between EEU Figure 12: Very strong relationship between CPIP
and CPIP. (Refs. 2, 17) and electricity generation. (Refs. 2, 17)
4,100 4,200
R2 = 0.9621
Construction Put in Place

1,000
R2 = 0.9618
4,000
(in billions kWh)
(in $ Millions)

900
Generation

3,800

800
3,600
700
3,400
600

3,200
500

3,000
400
2,700 2,900 3,100 3,300 3,500 3,700
400 500 600 700 800 900 1,000 1,100

Electricity End Use Construction Put in Place


(in millions MWh) 1993–2004 data (in $ millions) 1993–2004 data
Sources: Energy Information Administration (EEU), Sources: Energy Information Administration (Generation),
U.S. Census Bureau (CPIP) U.S. Census Bureau (CPIP)

19
MARKET SHARE

Each construction category requires different vol-


umes of electrical construction. Residential work, for Table 6: Electrical End Use (EEU) Units
example, typically requires fewer dollars for specialized of Measurement (Ref. 2)
electrical installation than does industrial construc-
Measured in:
tion. The percentage of electrical dollars for each cate-
gory will be used to identify the final electrical market ■ Revenue ($)
size. Note: work categories can be reallocated without a ■ Sales (MWh)
change in the overall market size, and the percent of elec- ■ Average Revenue per kWh (¢ / kWh)
trical work will adjust with the categories accordingly.
The proportion of electrical work in the CPIP for Survey of Construction. (Refs. 23, 24) Table 8 shows
each work category is calculated by using the electrical the proportions nationally and for each state. These
portion of contracts for each type of work from the factors can be updated on a five year basis to correct,

Table 7: Correspondence Between CPIP Categories and EEU Categories


EEU CATEGORY
Residential Commercial Industrial Transportation/Other
Residential Buildings–Single Family
Residential Buildings–Multi-Family
(If office building is
Office located at mfg. site)
Commercial
Automotive
Food/Beverage
Multi-retail
Other Commercial (beauty salons,
CPIP CATEGORY

veterinary clinics, florists, pawnshops,


dry cleaners, post offices, etc.)
Warehouse (includes greenhouses and silos)
Healthcare
Educational
Religious
Public Safety
Amusement and Recreation
Transportation–air
Transportation–land
Transportation–water
Communication (includes telephone,
television and radio, distribution and
maintenance buildings and structures)
Power
Highway and Street
Sewage and Waste Disposal
Water Supply
Conservation and Development
Manufacturing

20
DEVELOPMENT OF A NEW METHODOLOGY FOR MEASURING MARKET SHARE

Table 8: Portion of Construction Work that is Electrical Contracting Work (1997–2002)


(Refs. 23,24)

Residential Commercial Industrial Other


US 3.3% 9.3% 14.1% 3.9%
AL 3.1% 6.5% 19.5% 0.0%
AR 3.2% 6.5% 18.0% 0.0%
… … … … …
FL 4.9% 11.1% 4.4% 1.0%
GA 3.6% 8.5% 12.9% 3.0%
… … … … …

and adjust if necessary, to the electrical portion of ■ CPIP dollars attributed to geographic (states)
CPIP. Consistent application of this factoring method and work categories by Electricity End Use
will eliminate the need for a separate measurement ■ Work categories are factored by the percent-
method or survey since it will always be pegged to the age of electrical dollars out of the total con-
same numbers. struction dollars for that category
These electrical portion factors are then applied to This methodology, explained in further detail in
the CPIP after it has been segregated into the primary Chapter 6, determines the available electrical market
sectors by the EEU in order to determine the electrical size by the annual national expenditures on electrical
construction market. construction work, defined in dollars, and segregated
Note that the size of the available electrical market by type of work to the state level (Figure 13, next page).
as it is used in this report is a calculated measurement
5.4.2 Local Markets
based on overall CPIP. Therefore, the value of the
available electrical market may be slightly different The above-described methodology extends to the
than the traditionally reported value of electrical con- local level: apply local electrical usage to segment local
struction. construction, factored by the electrical portion of
work. However, unbiased data sources at the local
5.4 Explanation of Economic level are not universally available.
Market Size Methodology To establish a prevailing method for extending the
The economic electrical market size can now be market size calculation to a local level with a signifi-
defined as the electrical portion of the CPIP as deter- cant degree of reliability, a local index is necessary.
mined by the electrical use of each category. Once again, indicator measures were subjected to the
same criteria as other potential sources: neutral, reli-
5.4.1 Methodology in Brief ably and consistently measured, frequently reported at
■ CPIP to establish dollars spent in the con- national and local levels and publicly or inexpensively
struction market available.

21
MARKET SHARE

Figure 13: Schematic of methodology for calculating the electrical construction market by market categories.

Mrkt.
al Com
Electric
t.
Com. Mrk
Carpentry
Manuf
acturi (Other Construction)
ng al
merci Com. Mrkts.
Com
Construction Put in Place
Reside
ntial Mrkt.
al Ind.

Type of Work Factor


ric

EEU Category Filter


Elect
Office
Buildin
gs Mechanical Ind. Mrkt.
Retail Industrial (Other C
(CPIP)

Buildin onstructi
o
gs Ind. Mrk n)
ts.

m
Teleco Residential Electrical Res. Mrkt.

et Drywall
ay/Stre Res. Mr
Highw (Oth
er C
kt.
onst
Sewage Tran ru
Res. ction)
spor Mrkt
s.
ional Oth tation/
Institut er Electric
al T/O M
rkt.
Shee
t Me
(Ot tal T
her /O M
Con rkt.
stru
T/O tio c
Mrk n)
ts.

Population is one of very few neutral measures will carry a slightly larger potential margin of error,
that is nationally available from the U.S. Census although the margin is still small due to the high level
Bureau down to a county level. Population data of correlation present. Note that the state level mar-
(Appendix K) is available annually on an estimated kets have already been identified by size for each cate-
basis and formally updated every four years. (Ref. 19) gory; the population will be used only to allocate the
State population shows significant correlations to the work within the state to a particular city, county or
Electricity End Use and to construction dollars (Figure jurisdiction.
14). The graph shows that within a given county, This method offers a nationally available local cal-
Electricity End Use is correlated with the population; culation of the local electrical Economic Market Size
as the population increases, electricity use increases with a significant and measurable degree of reliability.
proportionately. The correlation here, although very
strong (R2=0.82), is not the nearly perfect correlation 5.5 Market Share Calculation
that was evident with Electricity End Use at the Market share is calculated simply as a portion of
national level. The state correlation is still very signifi- dollars or units captured, sold or controlled, divided
cant, allowing the distribution of that market accord- by the total available for a given area.
ing to population. The local market size calculation

22
DEVELOPMENT OF A NEW METHODOLOGY FOR MEASURING MARKET SHARE

Figure 14: State population shows significant correlation to Electricity End Use (each graph point represents
one county. (Refs. 2,19)
Electricity End Use (millions MWh)
350
R2 = 0.8266
300

250

200
2004

150

100

50

0
0 10 20 30 40

Population (millions of residents)


2004

Economic market share is defined as the portion Economic Market Size, any entity—contractors,
of total available dollars in the electrical construction whether union or open shop, NECA chapters, IBEW
market that are controlled by the IBEW, a particular locals, distributors of electrical construction goods—
local or NECA chapter, or an electrical contractor can calculate their annual market share by comparing
(Table 9). By using a standardized definition of the their portion of dollars captured to the dollars avail-

Table 9: Sample Market Share Calculation (for an Atlanta, GA, Jurisdictional Area at
National, State, Local levels) 2004
Estimated Electrical Market Size Market Share—Local 613
Sales produced from work done in
Local 613 jurisdictional area $ 411,000,000
National Market $ 87,079,375,874 0.47%
Share of Georgia Market $ 3,112,867,642 13.20%
Share of Atlanta Market $ 2,149,519,337 19.12%

23
MARKET SHARE

able in the electrical market. This can be done at the


national, state, county, city, and jurisdictional levels.
The market share measures can be used to estab-
lish consistently measured baseline trends. Anomalies
will be recognized as such. District to district meas-
urements and comparisons become meaningful and
valid. The focus of the market share is on capturing
the dollars instead of regulating the labor force.
As the entire market can now be universally recog-
nized and measured, the methodology allows an entity
to measure its market share in the entire market or
solely in its current line of work. A company doing
only commercial work may find itself with 20% of the
local commercial market, but only 2% of the total
local market. The IBEW and NECA can use this eco-
nomic market share data, just as the company can, to
develop common strategies that allow the recapture of
lost markets and the recognition and penetration of
new markets, reestablishing the IBEW in its historical
position of economic strength.
The opportunities presented by the emerging and
expanding commercial and residential markets can
only be capitalized upon when the union contractors
can provide high quality work at a competitive market
based price by lowering costs though improved system
productivity, increasing sales, increasing employment
shares, and increasing the availability of union electri-
cians for additional work, which results in additional
control of the market allowing more collaboration and
leading to higher profitability. Recognition of the
position in the economic marketplace is essential to
survival.

All appendices for this report


are available to download at
http://www.electri.org/active/?fa=appendices

24
6. Steps to Calculate EEU Cat%Ind =
U.S. EEUInd
U.S. EEUTotal
x 100%

U.S. EEURes

Economic Market Share EEU Cat%Res =


U.S. EEUTotal

U.S. EEUCom
x 100%

EEU Cat%Com = x 100%


for Electrical Construction portion of market
EEU= Cat%T/O = T/O
U.S. EEUTotal

U.S. EEUcontrolled
x 100%
Econ

Market Share
total marketEEU
U.S. available
Total

6.1 Calculation Step 2: Determine the portion of US construction State

6.1.1 Calculate Economic Market Size


dollars that
[
are electrical dollars
Construction
Market $
Divide the value ofEEU Cat
U.S.
[ EEU Cat %
= [CPIP$] x
100% in
electrical construction
6.1.1.1 National Economic Market Size
Step 1: Segregate the national construction market
eachEconMS
EEUtotal
segment (VEC,
U.S. =
StateEC
Cat%construction
Ind =
State
[
Construction
in $), by the valuex ofState
EEUInd Market $
(VTC,xin100%$) in each segment:
U.S. EEUTotal
[[
U.S.E Factor%Stat
100%
[[
portion of market controlled
into market categories
Market Share = according to electrical end use
total market available VECEEU Cat
E Factor% U.S. EEURes
EEU Cat = x 100%
EEU categories (EEU Cat) are: Commercial, Ind- EEU Cat%Res = VTC
x 100%
EEU Cat
U.S. EEUStateEEU
Total Cat
ustrial, Residential and Transportation/Other. (Ref. 2) State EEU%Cat = x 100%
U.S.EEU State
Step 1.1: Divide the electricity used in each cate-
E Factor%
EEUofCat%
= the
U.S. EEU
EconMSStateEC
State
percentage
= Com
total= construction
the Com [ Construction
of electrical
Total
Market
x 100%(Ref.
dollars $ [[ Stateout
xdollars
23) for Eeach
E Factor%
100% [
gory by the total electricity
Market Share =
used:
portion of market controlled EconMS
EEU category.
U.S. EEUTotal
EEU Cat = [
Construction
Market $ [ [
EEU Cat
x Factor%EEU Cat
100%
EEU Cat%Ind =
U.S.total
EEUmarket
Ind
U.S. EEUTotal
available
x 100% EEUThe
Cat% [
matrix
U.S. EEUT/O
State Construction
= as shown
T/OMarket
U.S.$EEU EEU Cat
categories from the Total StateEEU
value
[
in Table = [CPIP$]
x 100%
of construction
Cat
[ StateEEU%Cat
7 (page x20) allocates
100% StateEcon
work (as
[
State EEU%Cat = x 100%
U.S. EEURes reported by the U.S. U.S.EEUCensusTotalBureau) to end use
EEU Cat%Res =
U.S. EEUTotal
x 100% EconMS
categories (asNatEC =
reported Σ
EconMS
by the EIA).EEU Cat

U.S. EEUCom
[ Construction
MarketStateE
$ [
Factor% =
EEU Cat
[CPIP$]
EEU Cat EEU Cat
=
EEU Cat %
StateVEC
x
StateVTC 100%
EEU Cat
x 100%
StateEEU%Cat Econ
[ [ [ [
EEU Cat
EEU Cat%Com = U.S. EEU Ind x 100%
State Construction
EEU Cat%Ind = U.S. EEUTotal x 100% Step 3: Determine the national electrical
= [CPIP$] construc-
x
U.S. EEUTotal Market $ StateEEU EEU Cat 100%
Statesize
tion market EEU%(MS)= per EEU x 100%
category
U.S.EEU
U.S. EEU
== U.S. EEUT/O Multiply the value State
of theConstruction
construction marketStateE by Factor%
EEU
EEUCat%
Cat%T/O
Res U.S.
U.S.EEU
Res x 100%
EEUTotal
Total
x 100% StateEconMSEEU Cat
segment
E Factor% EEU Cat =
VEC= EEU Cat
calculated in Step [
x1.2
Market $
100%by the
x
portion
EEU Cat
[of
VTCEEU Cat StateVECEEU Cat StateEEU% Pop% 100%
E
[
EEU Cat% = Percentage of US electrical use by cat-
egory EEU Cat%Com =
U.S. EEUCom
x 100%
StateE
[
StateFactor%
construction Construction
dollars
Market $
ed in Step 2.
from
EEU Cat = electrical
StateVTC
EEU Cat
[ work
= [CPIP$] x xcalculat-
EEU Cat
100%
100% [ [
[ Construction
Step 1.2: Multiply
Market $ [ U.S. EEUTotal
= [CPIP$] x
U.S. overall
EEU Cat %
CPIP by percentage
Σ
of US EEU
electrical
EEU Cat
use byU.S.
100%
EEUT/Oto determine the
category
EconMS
EconMSEEU Cat = StateEC
Market[
Construction
= StateEconMS
EEU$Cat StateVEC [ Cat
[
x EEEUFactor% EEU Cat
Econ [
category:
Cat%T/O =
U.S. EEU
U.S. Construction Market dollars
x 100%
Total for each end use
StateE Factor%
StateEconMS EEU Cat =
State
=
[
Construction
EEU Cat
StateVTC
Market $
100%
EEU Cat
This result is the economic market size (EconMS)
[
x 100% x StateE Factor%
100% [
VECEEU Cat
Σ
at the national level for each electrical construc-
[
E Construction
Market $ [
Factor%EEU Cat =
VTC
EEU Cat
= [CPIP$]
x 100%
EEU Cat x
EEU Cat %
100%
tionPop%
EconMS category.
NatEC = Σ
Local Area =
EEU Cat
EconMS StateEC
counties CountyPopulation
EconMS EEU Cat
StatePopulation
= Σ StateEconMS
x 100%
EEU Cat
Reve

EEU Cat

Econ
EconMSEEU Cat = [
Construction
Market $ [
VECEEU CatEEU Cat
[
x E Factor%EEU Cat
100% [
State EEU% =
StateEEU
EconMSLocalEC =
U.S.EEU
x
Σ
100%
LocalEconMSEEU Cat
E Factor%EEU Cat =
VTCEEU Cat
x 100%
EEU Cat
Σ
counties CountyPopulation
Pop%Local Area = x 100%
StatePopulation

EconMSNatEC = Σ EconMSEEU Cat


[State Construction Labor $
Revenue
Market $ = EEU Cat
0.43
[
= [CPIP$] x
StateEEU%
100% [ 25
Local
[
EconMSEEU Cat = [
EEUConstruction
Cat
Market $ EEU Cat
[x
[
E Factor%EEU Cat
100% [ EconMSLocalEC =
EEU Cat
Σ
LocalEconMSEEU Cat
Total Com StateEEUCat
EEU Cat%Com = x 100% EEU Cat
U.S. EEUTotal State EEU%Cat = x 100%
U.S. EEURes U.S.EEUTotal
EEU Cat%Res = x 100%
U.S. EEUU.S.Total
EEUT/O
EEU Cat%T/O = VEC
E Factor%EEU Cat = U.S. EEU
U.S. EEU
EEUTotal
VTCEEU Cat
Cat
x 100%
x 100%
MARKET SHARE
StateEconMS
StateE Factor% EEU
EEU
==
CatCat [Σ
StateVEC
State
counties
Construction
Market
EEU Cat
$
CountyPopulation
StateVTC [
x 100%x
EEU Cat EEU Cat
[
StateE Factor%EEU Cat
100% [
EEU Cat%Com =
EEU Cat%Ind U.S.
Step 4: Calculate total
U.S.Com
= EEUTotal
EEUInd
U.S. EEUTotal
Electrical
x 100%
x 100%
Economic Market Step 3:
Pop%
[ Construction
StateLocal Area =
Market $
Determine the state
[
StatePopulation
EEU Cat
= [CPIP$]
electrical
x [
x 100% Cat
StateEEU%

construction
100% [
Size (MS) [
Construction
Market $ [
U.S. EEUT/O
U.S. = [CPIP$] x
EEU
EEU Cat %
Market Size
[ [ [ [
EEU Cat%
EconMS
T/O
EEU Cat%
=
Res
EEU Cat =
EEU
[
Construction
Cat
= EEUTotal
U.S.
U.S.
MarketEEU $
The total national electrical construction
x
Res
[
100%
x 100%
Total EEU Cat
x
[
100%
E Factor%EEU Cat
100%
econom- [
StateEconMSEconMS
EconMSEEU Cat
State Construction
= ==
StateEC
Multiply the value
StateE
LocalEC
Factor%
EEU of
EEU ΣΣ StateEconMSEEU Cat
LocalEconMS
Market $
Cat theStateVEC
Cat
=
state’s portion
EEU Cat
EEU Cat
EEU Cat
x StateE Factor%EEU Cat
of the 100%
ic market size (EconMS U.S.NatEC
EEUCom ) is the sum of the construction market EEU Catas calculated
StateVTCEEU Stepx 1100%
in Cat by the
marketEEU Cat%
sizes of each = category. x 100% state’s electrical factor as calculated in Step 2.
[
Construction
Market $ [
Com U.S. EEUTotal EEU Cat %
= [CPIP$]
VECEEUxCat Labor $
Σ
E Factor%EEUEEU Cat =
Cat
EconMSNatEC = U.S.EconMS Σ
VTC
EEUEEU
100%
x 100%
Cat Cat
T/OEEU
Revenue =
EconMS
EconMS Pop%StateEC
StateEC [Σ
==State StateEconMS
=0.43
EEU Cat Market $ [[
Construction x State E Factor%
counties CountyPopulation
EEU Cat x 100%
100% [
[ [ [ [
Local Area
EEU Cat%T/O = EEU Cat x 100% StateStatePopulation
Construction x StateE Factor%EEU Cat
U.S. EEUTotal StateEconMSEEU Cat =
portion of market controlled This result is the state’s Market overall$electrical economic
EEU Cat 100%
Market Share = Revenue
total market available market size
EconMktShare (EconMS= StateEC ). x 100%
StateEEU

[[ [ [ [
6.1.1.2 State
Calculate State Economic Market Size
E Factor% EEU%
EconMS =Cat
=
Construction
VEC EEU Cat x 100% x
=U.S.EEU x 100%
E Factor%EEU Cat
EconMS ΣΣ
StateEEU
=
EconMS
LocalEconMSEEU Cat
(MS),Overall
[
Market $
EEU
Construction
EEU Cat Market $
VTC
EEU Cat
= [CPIP$]
EEU Cat

Step 1: Determine the state’s construction market


EEU EEU
x Cat
Cat % 100%
100%
State
Pop% EEU%
Local
6.1.1.3EconMS
Cat =
Area
Calculate StateEC
counties CountyPopulation
LocalEC
= U.S.EEUEEU Cat

State
=
Cat
x 100%
StatePopulation
ΣTotal
Economic
StateEconMS Market
x 100%
EEU Cat Size
EEU Cat
size (MS)State
according to electricity end use (MS), by type of work
Step 1.1: [
Construction
Market
Divide
[ Σ[ [
Construction
$
the electricity
[[
= [CPIP$] xE Factor%
EEU Cat usedx in the state
StateEEU%
100%by [[
EEU Cat Step 1:
LocalEconMSEEULabor Cat = (StateEconMS
$
Revenue = the state’s construction market
Determine
Σ[
EEU Cat) x (Pop%Local Area)
EconMS
EEU
EconMS
Cat%electricity
the total
=
EEU Cat NatECU.S.
Ind = U.S. EEU
= EEUInd
Market
used
EEU
E Factor%EEU Cat = Total
$EconMS
x EEU
Cat in the
VECEEU 100%
EEU Cat
Cat
U.S.
Cat
x 100%
100% [ State
according
Construction
EconMSLocalEC =
Market to electricity
$ EEU Cat
EconMSStateEC = [Σ
EEU
0.43
LocalEconMS
= [CPIP$]
State
end use
Cat
[ [[ [
EEU
Construction
counties CountyPopulation
Market $
StateEEU%
x Cat
100%
x
Cat

[
State E Factor%
VTCEEU Cat Step 1.1:Local
Divide 100%
StateVEC
Pop% Area = the electricity
Revenue used in each
StatePopulation
cate-
x 100%
StateE Factor% U.S. EEU
=portion
Res of market
StateEEU x 100% controlled EconMktShare = x 100%
EEU Cat%
Market =
Share x 100% gory in the state Laborby $ the total electricity used in the
EconMS
StateResEEU% = =EEUStateVTC
U.S. total market x 100%available Revenue =
EconMSNatEC = Σ U.S.EEU
Total
EconMSEEU Cat U.S.
StateE Factor%EEU Cat =
0.43 StateVEC EEU Cat
x 100%
StateEEU
EconMS
EEU Cat%ComEEU
% = = [
EEU Cat Construction
Percentage
U.S. EEU Com
= Cat Market $x 100%
used by a state U.S. EEU Total
of
[
national
EEU Cat
[ E Factor%
electricity
x
100% [
EEU Cat
State EEU%
EconMS LocalEC Σ
StateVTC
StateEEU
Cat== U.S.EEU
EEU Cat
Revenue
EEU
Cat Cat
LocalEconMS
Total
x EEU
100%Cat

Step 1.2: [
State Construction
Multiply StateEEU
U.S. [
overall =CPIP
[CPIP$]by [
x
StateEEU%
percentage [ LocalEconMS
EconMktShare = EEU Cat
StateEEU % =
EconMS
= (StateEconMS
Percentage
x 100% EEU Cat) x (Pop%Local Area)
of national elec-

[[ [ [ [ [[[ [ [
Market $ State Construction
State EEU% = U.S. EEUT/O x 100%
U.S.EEU
EEU Cat 100%
EconMSStateEC =
Category x State E Factor%
of state
EEU Cat%electricity
T/O = U.S.use by category
x 100%to determine tricity used byState a state in each $of the end
Construction
Market use cate-
x StateE Factor%EEU Cat
100%
EEUTotal StateEconMSEEU Cat = Labor $ $
the state’s portionportion
EconMS
EEUShare
Market Cat% =
NatEC
Ind
=
U.S.
Σ
U.S.
EEU total
EEU
of construction
of market
EconMS
EEU
CatStateVEC
market
Ind market
controlled
EEU xCat
100%
Total available
dollars.
[ State
gories:
Revenue Construction
Commercial,
=
Market $
Transportation/Other EEU Cat
Market
0.43
Industrial, Residential,
EEU
= [CPIP$]Cat x StateEEU%
100% [
and100%Cat

[[ [ [ [ [
StateStateE
Construction
Factor% = x 100% StateEEU% LocalEconMSEEU Cat = (StateEconMSEEU Cat) x (Pop%Local Area)
= [CPIP$] x
StateVTC Step 1.2: MultiplyStateEEU U.S. overall CPIP by percentage
Construction
Market $ U.S. EEU EEU Cat %100% Revenue
[ [[ [
EEU Cat
= [CPIP$] x State Construction
x 100%x toState E Factor%
Res Cat
MarketEEU$ Cat% = x 100% State EEU%
EconMktShare
EconMS = == eachx$category
100%
State EEU% =
Res
EEU Cat StateEEU
U.S. EEUTotal
U.S.EEU
100%
x 100%
of
EconMS
mine
state
StateEC Σ
electricity
=
Cat
StateEC
the Factor%
state’s
use
U.S.EEU for
EconMS
StateEconMS Market
Total
StateVEC
EEU Cat
EEU Catportion of construction
deter-
EEU Cat market
100%
StateE EEU Cat = StateVTC x 100%
portion of
U.S. EEUCom market controlled
Step 2: Determine
Market Sharethe = StateVEC
portion of state construction dollars in each category: EEU Cat
EEU
StateE Cat%Com
Factor% = = U.S.total x 100% x 100%
StateVTC EEUmarket
Total
available
dollars that are electrical dollars
[ [ [ [ [
U.S. EEUInd State Construction StateEEU%Cat
EDivide
State
EEU
Factor%the[
Cat%Construction
value
Market
EEU Cat
VECEEU Cat
Ind== ofU.S.
$VTC state
U.S. [ =
electrical
EEU
EEUTotalT/O x [CPIP$]
100% [
x 100% x StateEEU%
construction LocalEconMS
Market
State Σ
EEU% $ EEU = Cat
StateEEU= [CPIP$]
= (StateEconMS
Cat CountyPopulation
EEU Cat
Cat
x
x
100%
EEU Cat)100%
x (Pop%Local Area)
100%
[ U.S.EEU
[ [ [
counties
EEU Cat% T/O = EEU
EEU CatCat x 100% Pop%Local Area = State Construction
Total x 100% x StateE Factor%EEU Cat
(StateVEC, in $), by theU.S. EEUTotal
value of state total con- =
StateEconMSEEU CatStatePopulation
U.S. EEURes Market $ EEU Cat 100%
struction
EEU Cat% (StateVTC,
Res = U.S. EEU
in $). x 100% Step 2: Determine the portion of state construction
Total
StateVEC dollars that are electrical=dollarsStateVECEEU Cat
StateE
EconMSEEU
[
Construction
Market
=
Cat%
EEU Cat
$
[ [
Construction
Factor%
Ind
EEU Cat%Com = EEU Cat
=
Market $
U.S.
= [
= U.S. EEUInd xx 100%
U.S. StateVTC
EEU [CPIP$]
Com
EEU EEU
[x x
EEEU
100%
x 100% 100%
Cat
Factor%
Cat
100%
%EEU
[
Cat
[
EconMS
Divide
State
StateE
LocalECΣ
Construction
Factor%
=
Market
the value
EEU
$ [
Cat StateVTC
LocalEconMS
of stateEEU
= [CPIP$]
electrical
Cat
EEU[ Cat x
x StateEEU%
100%
EEU Cat construction 100% [ Cat

StateE Factor% = the EEUTotalTotalof electrical


U.S.percentage dollars (StateVEC,
EEU Cat
EconMSStateEC Σ
in $),=by the
EEU Cat
StateEconMS
value of state total con-
EEU Cat
U.S. EEU
in the state of interest (Ref. 24)Res
out of the total con- struction (StateVTC, in $) in each category
EEU Cat%Res =U.S. EEUT/O x 100%
struction dollars.
EEU Cat%
EconMSNatEC =
T/O =(Ref.

Σ
EconMS
EEU Cat =
U.S.
23)
U.S. EEU
VEC
U.S.
EEUTotalx 100%
Total
EEU Cat
EEUEEU
ComCat
StateEconMS
Revenue = EEU
StateE
Labor $
Cat =
Factor%
State Construction
Market
=
0.43 EEU Cat StateVTC$ [EEU Cat x 100% 100%
Σ
EEU Cat
[
StateVECEEU Cat x StateE Factor%EEU Cat
[ [
EEEU
Factor%
Cat%EEU Cat= x 100%
x
100% counties CountyPopulation
Com U.S.VTC
EEUEEU Cat
Total Pop%Local Area = x 100%
RevenueStatePopulation
[
Construction
Market $ StateEEU [ = [CPIP$]
U.S. EEUT/O x
EEU Cat %
100%
EconMktShare =
EconMS
x 100%
Σ[ [ [ [
State EEU% EEU=Cat
EEU =Cat%T/O x 100% x 100% State Construction
U.S.EEUU.S. EEUTotal EconMS StateEC
StateEconMS
=
Cat =
StateEconMS EEU Cat x StateE Factor%EEU Cat
[ [ [ [
EEU EEU Cat Market $
Construction E Factor% 100%
Σ
x EEU Cat EEU Cat
EconMSEEU Cat = EconMSLocalEC = LocalEconMS
Market $ 100%
EEU Cat EEU Cat
EEU Cat

26 [ [
State Construction
Construction VEC
Market
E Factor%$
MarketEEU$ Cat =EEU [[
Cat
EEUVTC
==
Cat
[CPIP$]
EEU Cat
x 100%100%[
StateEEU%
x x EEU Cat %
[CPIP$]
EEU Cat
100%
[ LocalEconMSEEU Cat = (StateEconMSEEU Cat) x (Pop%Local Area)
EconMS
Pop% = =
Σ
counties CountyPopulation
Σ
Labor StateEconMS
$ x 100%
StateEC
Local Area EEU Cat
Revenue = EEUStatePopulation
Cat
[ [ [ [ [ [ [ [
U.S. EEUInd State Construction StateEEU%Cat
EEU Cat%U.S.=EEUInd x 100% State Construction StateEEU%
= [CPIP$] x Cat
EEU Cat%Ind = Ind x 100%
U.S. EEU Market $ = EEU
[CPIP$]
Cat x 100%
U.S. EEUTotal Total Market $ EEU Cat 100%
STEPS TO CALCULATE MARKET SHARE FOR ELECTRICAL CONSTRUCTION
U.S. EEURes
EEU Cat%U.S.
Res =EEURes x 100%
EEU Cat%Res = x 100%
U.S. EEU Total
U.S. EEUTotal StateVEC
StateE Factor%EEU Cat = EEU Cat EEU Cat x 100%
StateVEC
U.S. EEUpercentage StateE Factor%EEU Cat = StateVTCx 100%
StateEEEU
Factor%
Cat% U.S.
EEUEEU = the
=CatCom
Com
x 100% of electrical contractor footprint, etc.) EEU Cat EEU Cat
StateVTC
EEU Cat%Com = Com U.S. x 100%
EEU
dollars in the State
state of interest
U.S. Construction
EEU (from
Total [value of electri-
EconMSStateEC = [
Total
Market $reference]) out
cal construction CensusU.S. EEUT/O
[[
State E Factor%
x
of the total
100% [ Step 2.2: Identify the population of each county
(Ref. 19)
U.S. EEU
[ [ [ [[ [
rolled EEU Cat%
construction = T/O x 100% State Construction StateE Factor%E
Cat%T/O = dollars
T/O (from value of construction)
ble
EEU U.S. EEUx 100%
Total
U.S. EEUTotal
The matrix as shown in Table 7 (page 20) allocates
StateEEUCat
StateEconMS
StateEconMS EEU Cat =
State
Step 2.3: Total
EEU Cat

counties of interest
Construction
= the populationx count
(add)
Market $
Market $
EEU Cat
StateExof
EEU Cat
Factor%
all EEU Cat
100%
100% [
categories
State EEU%Catfrom
= the valuex 100%
U.S.EEUTotal
of construction work (as Step 2.4: Identify the state’s population (Ref. 19)

[ [ [ [ [[ [
Construction
reported byStateEC
the U.S. State Construction EEU State E Factor%
Catuse
%
EconMS
Construction = Census Bureau)
EEU x to
x%end
Market $ =EEU Market
[CPIP$] x $ Cat
= [CPIP$]
100% If the jurisdictional area crosses state boundaries,
trolled
categories
Market $ (as
EEUreported
Cat by the EIA)
Cat
100%
100%
by state. EconMSStateEC =
addStateEC
EconMS = Σ
the population Σ
StateEconMSEEU Cat
of all states
StateEconMS
EEU Cat EEU Catinvolved.
ble [ State Construction
Market $ [EEU Cat
= [CPIP$] x
Step 3: Determine the state electrical construction
[ 100% [
StateEEU%Cat EEU Cat
Step 2.5: Calculate the area’s portion of the state’s
total population. State Construction
Market State
Size (MS)
E Factor%
EEU%Cat =
StateEEUCat
E Factor%EEUVEC
VECEEU Catx 100%
Cat
U.S.EEU
=EEU Cat Total
StateVEC x 100%
EconMSStateEC =
Σ
[Σ Market $
x
counties CountyPopulation
[[
State E Factor%
100% [
Multiply Cat =
EEUthe value of theVTC x 100%
state’s
EEUEEU
Cat
xportion
Cat of the Pop%Localcounties
= CountyPopulation x 100%
StateE Factor% EEU Cat VTC
= portion
EEU Cat of market100%controlled Pop%Local Area = Area x 100%
StatePopulation
Market Share
construction market=StateVTC EEU Cat
astotal
calculated StatePopulation
in
market available1 by the
Step Pop%Local Area = percentage of state population in
state’s electrical factor as calculated in Step 2.
[State Construction
Market
EconMS $ Construction
State =
[
Construction
EEU Cat
[[ [ [ [[[ [ [
= [CPIP$] x
Construction
E
StateEEU%
x
Factor%
StateE
E100%
Factor%
Cat
Factor%EEU Cat [ [
State EEU%Cat =
[[
EconMSLocalEC = U.S.EEU
counties of local interest
LocalEconMS
x 100%
Σ
StateEEUCat
$ xxEEU Cat 100%EEU Σ
StateEconMS =EEU Cat EEUCat
Cat Total
EconMSEEU Cat =
EEUCat Market
Market $ 100% EconMS = LocalEconMS EEU Cat
Market $ EEUCat
EEU Cat 100% LocalEC EEU Cat EEU Cat
Step 3: Determine
EEU Catthe local electrical construction
This result is the state’s overall electrical economic
Market Size per EEU category
Cat % market size (StateEconMS) for each
StateVEC category
00% StateE Factor%
EconMSEEU
StateECCat% Σ
EconMS
EEU Cat
EEU
U.S. EEUInd
= Cat = StateVTC
= IndStateEconMS
= U.S. EconMS
EconMSNatEC = NatECEconMS Σ
EEU Cat
Σ
EEUTotalEEUEEU
EEU Cat
x 100% x 100%
Cat
Cat Revenue =
[
State Construction
SeeRevenue
calculation
Labor
= $
Market
category in0.43
Labor $
0.43
[
$for state economic
EEU Cat
Section 6.1.1.3, Step 3.
market
= [CPIP$] x [
StateEEU%Cat
size by
100% [
EEU Cat EEU Cat
Step 4: Total State
EEU Electrical
Cat Economic Market Size
U.S. EEURes Multiply the local area’s portion of the state popu-
(MS) EEU Cat%Res = x 100% Revenue
Σ U.S. EEUTotal lations by the Revenue
EconMktShareeconomic
= market xsize (MS) for the
100%
% The state’s
StateEconMS
State
Pop%Local
State EEU%
market
total
Area EEU%
size
=
(EconMS
=
State
electrical
StateEEU
counties
=
= EEU CatStatePopulation
U.S.EEU
EEU Cat%Com =
[
Construction
StateEEU
CountyPopulation
construction
U.S.Market
U.S.EEU100%$
xEEU
StateEC ) is
Com
xx 100%
the
100% economic
EEU Cat
sum
x 100% of
x
the
[
StateE Factor%
100% [
EconMktShare
EEU Cat
state.
=
If the
StateE local
Factor%
EconMS
EEU [
area =
StateVEC
x 100% EEU Cat
EconMS
Cat crosses state borders,
StateVTCEEU Cat
calcu-
x 100%
late the local economic market size (MS) by cate-
market sizes of each U.S. EEUTotalThis value is the
category. gory for all states.
[00% E Factor%EEU Cat
Cat % [ State Construction
same as that
[EEU Cat%
calculated
Σ LocalEconMS directly in Section 6.1.1.2.
[Σ [ [ [ [ [
EconMSState = Construction U.S. EEU StateEEU%
100%
[ LocalEconMS Cat = (StateEconMS EEU Cat) x StateE
(Pop%Local Area)
LocalEC T/O EEU Cat
StateEEU%
EconMS
EEU Cat
Market T/O=$
Market $StateEC EEU
= = [CPIP$]
EEU Cat
Cat
= [CPIP$]
StateEconMS
U.S. EEU
EEU Cat
Total
x x 100%
x
EEU Cat
100%
100%
LocalEconMSEEU Cat =EEU
StateEconMSEEU Cat =
State
[
Construction
(StateEconMS EEU Cat) x (Pop%
Market $ EEU Cat
[
LocalEconMSEEU Cat = local economic market size
[
xLocal Area) Factor%EE
100%
Labor $
Revenue = (MS) for each category. The total local economic
0.43
StateVEC
%
6.1.1.4 [
Construction
StateE Calculate
Factor%
Market $
Pop%Local=Area
StateVEC
StateE Factor%
Σ=CatEconomic
= Local
StateVTC
EEU
Revenue
= construction
[ EEU Cat %
x x100% Size
=x[CPIP$]
100% Market
StateVTC 100%
counties CountyPopulation
x 100%
market size can be determined by summing the local
EconMS
market sizes across
StateEC Σ
= all StateEconMS
categories. EEU Cat
StepEconMktShare
1: Establish state
EconMS
x 100% Market Size
StatePopulation (MS) EEU Cat

by EEU categories (StateEconMSEEU Cat )


See calculation for State Level (Section 6.1.1.3, Step Step 4: Total Electrical Economic Market Size (MS)

[[ [ Σ
E Factor% VECEEU Cat for local area
StateEEU% EEU Cat
100%[ 3). EconMS
E Factor%
LocalEconMS LocalEC
EEU ==
CatEEU Cat =
(StateEconMS Σ
LocalEconMS x 100%
EEU Cat) x EEU
(Pop%
CatLocal Area)
VTCEEU Cat Pop%
counties CountyPopulation
The total Area =
local area electrical constructionx 100%
eco-
100% EEU Cat
Step 2: Determine the local area portion of the state’s Local StatePopulation
total population nomic market size (EconMSLocal EC) is the sum of
the market sizes of each category.
Step 2.1: Define Labor $ counties of interest
the Construction
local
Revenue =
EconMS
(based on aEEU Cat =
0.43
jurisdictional
Marketarea, [
$ metropolitan
EEU Cat
area,
100% [
x E Factor%EEU Cat
[ [ EconMSLocalEC = Σ
EEU Cat
LocalEconMSEEU Cat

Revenue
EconMktShare = x 100%
EconMS Labor $
Revenue =
EconMSNatEC = Σ
EEU Cat
EconMSEEU Cat 0.43

Revenue
[ StateEEU%
100% [ LocalEconMSEEU CatStateEEU
State EEU% =
= (StateEconMSEEU Cat) x (Pop%Local Area)
U.S.EEU
x 100%
EconMktShare =
EconMS
x 100% 27
[ State Construction
Market $ [EEU Cat
= [CPIP$] x [ [
StateEEU%Cat
100%
MARKET SHARE
StateEEUCat
State EEU%Cat = x 100%
U.S.EEUTotal
StateVEC
EEU Cat
6.1.2 StateE Factor%Share
Calculate EEU Cat =of x 100%
Economic Market
StateVTC 6.2 Example: Calculation for State
EEU Cat
of Georgia
[
6.1.2.1 State Construction
Identify revenue dollars
Market $ [ StateEEU%Cat
or equivalent
= [CPIP$] x
EEU Cat
Step 1: Determine the dollars controlled in area of
[ 100% [
6.2.1 Calculate Economic Market Size
interest
StateEconMSEEU Cat = [
State Construction

Contractor: year-end revenue.


x
Market $
StateE
[Factor%
EEU Cat
[
EEU Cat
100%6.2.1.1 [National Economic Market Size
StateVEC EEU Cat Step 1: Segregate the national construction market
StateE Factor% = x 100%
IBEW Local or NECA
EEU CatChapter:
StateVTCEEU Cat into market categories according to electrical end use
Step 1.1: Known payroll dollars: EEU categories (EEU Cat) are: Commercial,
EconMSStateEC =
Divide payroll total ΣStateEconMSEEU Cat
by CFMA’s reported
EEU Cat labor cost Industrial, Residential and Transportation/Other
percentage for
StateEconMSEEU Cat = [
State Construction
electrical contractors.
in 2004 = 43%) (Ref. 25)Market $
(Labor
EEU Cat
x
[StateE
cost
100%[
Factor%EEU(Ref.
Cat 2)
[
Step 1.1: Divide the electricity used in each cate-
Σ
Step 1.2: Known hours worked and wage rates:
counties CountyPopulation
gory by the total electricity used:
1. Pop%
Determine = dollars worked in a jurisdic-
Local Area the StatePopulation
x 100%
1,020,883,053MWh
tional areaStateEC
EconMS = Σ
by multiplying the hours
StateEconMS worked for
EEU Cat
EEU Cat%Ind =
3,550,511,771MWh
x 100% = 28.8%Ind
the previous yearEEU byCatthe appropriate wage rate
tor%EEU Cat
100% [ 2. EconMS
DivideLocalEC Σ
labor=dollars
EEU Cat
by CFMA’sEEUreported
LocalEconMS Cat
cost percentage for electrical contractors. (Labor
labor EEU Cat%Com =
1,228,505,390MWh
3,550,511,771MWh
x 100% = 34.6%Com

cost in 2004 = 43%) Σ (Ref.


counties CountyPopulation
25) 1,293,449,047MWh
Pop%Local Area = x 100% EEU Cat%Res = x 100% = 36.4%Res
Labor $StatePopulation 3,550,511,771MWh
Revenue =
0.43
EEU Cat% =
EEUIndCat%
7,674,296MWh
1,020,883,053MWh
x 100% = 28.8%
T/O = 3,550,511,771MWh xInd100% = 0.2%T/O EconMSEEU Cat = [ C
tor%EEU Cat
100% [ EconMSLocalEC =
6.1.2.2EconMktShare
Σ Revenue
LocalEconMS
=EEU Cat Share x 100%
Calculate Market
EEU Cat
3,550,511,771MWh

1,228,505,390MWh
M

EconMS EEU
EEU Cat%Com Cat%
= = Percentage
3,550,511,771MWh of US
x 100% electrical
= 34.6% Com use by cat-
Divide the revenue dollars from Section 6.1.2.1 by EconMSInd = [$295,
egory
the electrical market
Revenue =
size
Labor $
state, or local; total0.43
of interest (national,
or by category) as found in
EEU Cat%
Market
Step $[
Construction
1,293,449,047MWh
Res =1.2: Multiply
3,550,511,771MWh
EEU Cat
[
= [CPIP$]
x 100%
U.S. overall
EEU Cat %
= x36.4%
CPIPRes by percentage
100%
EconMSCom = [$355
EconMSRes = [$374
of US electrical use by category to determine the
EEU%
0% [ LocalEconMS
Section 6.1.1. EEU Cat = (StateEconMSEEU Cat) x (Pop%Local Area
Revenue
) Construction
EEU Cat%
U.S. =
[
7,674,296MWh
T/O Construction
Market $
Market
[
x 100%dollars
= 0.2%T/Ofor each end use
= [$1,027,736,000,000]
3,550,511,771MWh
Ind
EconMST/O = [$2,22
x [0.288] = $295,506,206,719 Ind
category:
EconMktShare = x 100%
EconMS
EconMktShare = the economic market share for [
[ Market[ $
Construction
Market $ [
Construction = [$1,027,736,000,000]
= [CPIP$] x
EEU Cat Com
EEU Cat %
100%
x [0.346] = $355,604,852,745Com
EconMSNatEC = Σ
EEU Ca
national, state, or local EC markets
EEU%
[ [
[ ) Construction
Market[ $
Construction
[
= [$1,027,736,000,000] x [0.288] = $295,506,206,719
= [$1,027,736,000,000] x [0.364] = Ind$374,403,532,647

{
Market $ ResE
LocalEconMSEEU Cat = (StateEconMSEEU Cat) x (Pop%Local Area Ind
Res
0% E
[ Construction
[
Construction = [$1,027,736,000,000] x [0.346] = $355,604,852,745

[ [
Com E
Market $ Com EconMSNatEC =
= [$1,027,736,000,000] x [0.002] = $2,221,412,231 T/O
Market $ T/O
+ E

[Market $[
Construction = [$1,027,736,000,000] x [0.364] = $374,403,532,647
Res
Res E

[ E Factor%
Market $[ T/O EEU Cat
=
VECEEU Cat
Construction = [$1,027,736,000,000] x [0.002] = $2,221,412,231T/O
x 100%
VTCEEU Cat

VECEEU Cat
E Factor%EEU Cat = x 100%
VTC$32,019,777,000
EEU Cat
E Factor%Ind = x 100% = 14.1%Ind
$343,014,737,000
$32,019,777,000
E Factor%Ind = $18,630,880,000
x 100% = 14.1%Ind
$343,014,737,000
E Factor%Com = $132,371,052,000 x 100% = 9.3%Com
$18,630,880,000
E Factor%Com = x 100% = 9.3%Com
28 $132,371,052,000
$7,816,397,000
E Factor%Res = x 100% = 3.3%Res
$239,752,543,000
$7,816,397,000
EEU Cat 100% EEU Cat

[
Construction
[
= [$1,027,736,000,000] x [0.288] = $295,506,206,719Ind

{ {
Market $ STEPS
Ind TO CALCULATE MARKET SHARE FOR ELECTRICAL CONSTRUCTION EconMSInd $41,591,727,14
EconMSCom $33,193,040,49
[
Market $ Com
[
Construction = [$1,027,736,000,000] x [0.346] = $355,604,852,745
Com
EconMSNatEC = EconMSRes
+ EconMS +
$12,206,279,91
$86,328,32
Step 2: Determine the portion of US construction
[
1,020,883,053MWh
Cat%IndConstruction
EEUdollars
[
=that are electrical dollars
3,550,511,771MWh
Market $ Res
x 100% = 28.8%Ind EconMSEEU Cat = [
Construction
= [$1,027,736,000,000] x [0.364] = $374,403,532,647Res Market $ EEU Cat
[x
[
100% =
EconMS NatEC
T/O
E Factor%
EEU Cat
[
$87,079,375,87
Divide1,228,505,390MWh
the Value of U.S. Electrical Construction in
EEU Cat%Com =
inx$,100% = 34.6%Com
[
Construction
each segment (VEC,
[
3,550,511,771MWh
Market $
Value of U.S. Total
Appendix
= [$1,027,736,000,000]G.4), by the= $2,221,412,231T/O
x [0.002]
T/O Construction (VTC, in $,
1,293,449,047MWh
EconMSInd = [$295,506,206,719]Ind x [0.141] = $41,591,727,145Ind

EEU Cat%Appendix G.4) in eachx segment


Res = 3,550,511,771MWh 100% = 36.4%Res EconMSCom = [$355,604,852,745]Com x [0.093] = $33,193,040,495Com

VECEEU Cat EconMSRes = [$374,403,532,647]Res x [0.033] = $12,206,279,912Res


E Factor% EEU Cat = VTC
7,674,296MWh x 100%
EEU Cat%T/O =1,020,883,053MWh x EEU
EEU Cat%Ind = 3,550,511,771MWh
3,550,511,771MWh
100%
Cat= 0.2%T/O
x 100% = 28.8%Ind EconMSEEU Cat = [
Construction
EconMST/O = [$2,221,412,231]
[
T/O x [0.039] = $86,328,323
Market $ EEU Cat
[
x E Factor%
T/O EEU Cat
100% [
This result is the economic market size (EconMS)
$32,019,777,000
1,228,505,390MWh
E Factor% Ind = $343,014,737,000% =x 34.6%
100% Com
= 14.1%Ind at the national level for each electrical construc-
[
EEU Cat%Com
Construction
Market $
=
[
3,550,511,771MWh
= [CPIP$] x
EEU Cat
EEUx Cat
100%
100%
EconMSNatEC = Σ EconMSEEU Cat
tion category.
EconMS EEU = [$295,506,206,719]Ind x [0.141] = $41,591,727,145
Ind Cat
$18,630,880,000
1,293,449,047MWh
E Factor% Com = $132,371,052,000 x 100% = 9.3%Com
[Construction
EEU
[
Cat%Res = = [$1,027,736,000,000]
3,550,511,771MWh
x 100% = 36.4%
x [0.288] = $295,506,206,719
Res Ind
EconMSCom = [$355,604,852,745]Com x [0.093] = $33,193,040,4
Step 4: Calculate totalIndElectrical Economic Market

{ {
Market $ Ind EconMS $41,591,727,145
$7,816,397,000 EconMSRes = [$374,403,532,647] Res x [0.033] = $12,206,279,91
Size (MS) EconMSCom $33,193,040,495
[Construction
EEU
Market [
=7,674,296MWh
E Factor% =
[$1,027,736,000,000]
Cat%$T/O =Com Res $239,752,543,000
3,550,511,771MWh
x 100%
x [0.346] = 3.3%Res
= $355,604,852,745
x 100% = 0.2%T/O Com
EconMS
The
EconMS total
NatEC = T/O EconMS $12,206,279,912
= [$2,221,412,231]
national
+ EconMST/O
electrical
Res
+
T/O x [0.039] =
construction
$86,328,323
$86,328,323T/O
econom-
$3,452,119,000 ic market size (EconMSNatEC) is the sum of the
[ Construction
Market $ [
E Factor%
Res
T/O = $88,830,399,000
= [$1,027,736,000,000] x 100%
x [0.364] = 3.9%T/O Res
= $374,403,532,647
market sizes of each
EconMS NatECcategory.
= $87,079,375,874

[[ Construction
Construction
Market $
Market $
[[ = the percentage of electrical dollars out
E Factor%
=
= [CPIP$] x
EEU Cat %
[$1,027,736,000,000]
EEU Cat
T/O
x [0.002] = $2,221,412,231T/O
100%
EconMSNatEC = Σ
EEU Cat
EconMSEEU Cat
of the total construction dollars (Ref. 23) for each

[Construction
[
EEU category.
= [$1,027,736,000,000] x [0.288] = $295,506,206,719Ind

{ {
Market $ Ind VECEEU Cat EconMSInd $41,591,727,145
E Factor%The matrix as shown
EEU Cat = VTC
in Table
x 100% 7 (page 20) allocates
EEU Cat EconMSCom $33,193,040,495
[Construction
Market $ reported
Com
[
categories from the value of construction work (as
= [$1,027,736,000,000] x [0.346] = $355,604,852,745Com
by the U.S. Census Bureau) to end use
$32,019,777,000
EconMSNatEC = EconMSRes
+ EconMST/O +
$12,206,279,912
$86,328,323
categories
E Factor%Ind = (as reported by =the
x 100% EIA).
14.1%

[ [
Ind
Construction $343,014,737,000
= [$1,027,736,000,000] x [0.364] = $374,403,532,647Res
Market $ EconMSNatEC = $87,079,375,874
Res $18,630,880,000
E Factor%
StepCom =
3: Determine x 100% =electrical
the national 9.3%Com construc-
$132,371,052,000
[Market $
E Factor%Res =
[
Construction = [$1,027,736,000,000] x [0.002] = $2,221,412,231
tion market size (MS) per EEU category
T/O$7,816,397,000
Multiply the value ofx 100%
$239,752,543,000
= 3.3%Res
the construction market by
T/O
6.2.1.2 Georgia Economic Market Size (MS),
Overall:
segment calculated in Step 1.2 by the portion of
$3,452,119,000 Step 1: Determine Georgia’s construction Market
E Factor%T/O =
constructionVECEEU Cat x from
dollars 100% = 3.9%T/O work calculat-
E Factor%EEU Cat = VTC
$88,830,399,000 x 100%electrical Size (MS) according to electricity end use
ed in Step 2. EEU Cat
Step 1.1: Divide the electricity used in Georgia by
$32,019,777,000 the total electricity used in the U.S.:
E Factor%Ind = x 100% = 14.1%Ind
$343,014,737,000 129,200,691MWh
GeorgiaEEU% = x 100% = 3.64%
3,550,511,771MWh
$18,630,880,000
E Factor%Com = x 100% = 9.3%Com
$132,371,052,000

E Factor%Res =
$7,816,397,000
$239,752,543,000
x 100% = 3.3%Res [Georgia Construction
Market $ [
= [CPIP$] x
GeorgiaEEU%
100% [ [
$3,452,119,000 = [$1,027,736,000,000] x [0.0364]
E Factor%T/O = x 100% = 3.9%T/O
$88,830,399,000
[Georgia Construction
Market $ [
= $37,409,590,000

29
GeorgiaVTC
$2,006,166,000
= x 100%
$27,519,944,000
MARKET SHARE
GeorgiaE Factor% = 7.29%

Step 1.2: Multiply U.S. overall CPIP by percentage 6.2.1.3 Georgia Economic Market Size (MS),StateEEU%
by
of Georgia’s
GeorgiaEEU%
129,200,691MWh
= electricity use by category
3,550,511,771MWh
x 100% = to deter-
3.64%
mine Georgia’s portion of construction market
[
State Construction
type of work: Market $ EEU Cat
= [
[CPIP$] x
100%
Cat
[ [
Step 1: GeorgiaEC
EconMS Determine the state’s construction
= [$37,409,590,000] x [0.0729]market
dollars:
[
Georgia Construction
[
size according to electricity end use = [$1,027,736,000,000] x [0.0101]
= $2,727,159,140
Market $ Ind
Step 1.1: Divide the electricity used in each cate-
[ Georgia Construction
Market $ [
= [CPIP$] x
GeorgiaEEU%
129,200,691MWh 100% [ [ [ [
GeorgiaState
gory in Georgia Construction
by the total electricity
Construction
MarketMarket
$ [ [
used in the StateEEU%
= [$1,027,736,000,000]
= [CPIP$] x x [0.0119]
Cat
[ [
GeorgiaEEU% = x 100% = 3.64% U.S.: $ Com
EEU Cat 100%
3,550,511,771MWh
= [$1,027,736,000,000] x [0.0364]

[ Georgia Construction
Market $ [
= $37,409,590,000
State EEU%Cat = [ [
Georgia Construction
StateEEU
Georgia
U.S.EEUTotal$
Market
Cat
Construction
x 100%
Market $
Res
[ [
= [$1,027,736,000,000]
Ind
= [$1,027,736,000,000] x [0.0144] =
x [0

[
Georgia Construction
Market $
= [CPIP$] x [
GeorgiaEEU%
100%
Step 2: Determine the portion of Georgia value of
[ [
GeorgiaEEU% Ind
[ [
Georgia Construction
=
Georgia
Market $ Construction
35,735,754MWh
Market $ x 100%
3,550,511,771MWh
T/O
[ [
= [$1,027,736,000,000]
Com
==1.01%
[$1,027,736,000,000]
Ind
x [0.0051]x [0

construction dollars that are electrical = [$1,027,736,000,000]


value of con-x [0.0364]

[
GeorgiaEGeorgia
struction Factor% =
GeorgiaVEC
dollarsConstruction
GeorgiaEEU% GeorgiaVTC
=
Market $3,550,511,771MWh [
129,200,691MWhx 100%
x 100% = 3.64%
= $37,409,590,000
GeorgiaEEU%
StateE
=[ Georgia
42,119,481MWh
State
Com 3,550,511,771MWh
Factor%
Construction
Construction
Market $= $ xEEU
Market
EEU Cat
[[
StateVEC100%Res
Cat
StateVTCEEU Cat
===[CPIP$]
EEU 1.19%
Cat
x Com
100%[ StateEEU%Cat
[$1,027,736,000,000]
x
100% [x [0
Divide the value $2,006,166,000
of Georgia’s electrical construc-

[[ [[
Georgia Construction
tion (GeorgiaVEC, = in $), by the xvalue 100%of Georgia’s 51,165,134MWh
GeorgiaMarketConstruction
$ $652,169,259 = [$1,027,736,000,000]
[$1,027,736,000,000] xx [0 [0
$27,519,944,000 GeorgiaEEU%GeorgiaE T/O==1.44%
Res = 3,550,511,771MWhMarket x 100%
Factor% Ind = $$5,073,342,048 x 100% = 12.85%
Res
total construction (GeorgiaVTC, in $) Ind
GeorgiaE
[
Georgia
Factor% Construction
= 7.29%
Market $
GeorgiaE Factor% =
[
= [CPIP$] x
GeorgiaVEC [
GeorgiaEEU%
x 100%100%
[GeorgiaEEU%GeorgiaE [
Georgia
180,319MWh
T/O = 3,550,511,771MWh
Construction
Market
Factor% [
$1,162,854,249
$ x 100%
= [$1,027,736,000,000] x [0
StateVECEEUx Cat
Com = 0.1151%
GeorgiaVTC StateE Factor% Com = $13,631,087,526
= 100% = 8.53%
T/O x 100%
= [$1,027,736,000,000] x [0.0364] EEU Cat StateVTCEEU Cat

[
Georgia Construction
Market $
=
$2,006,166,000

[
$27,519,944,000
= $37,409,590,000
EconMSGeorgiaEC = [$37,409,590,000] x [0.0729]
x 100% Step 1.2: Multiply
GeorgiaE Factor%
[
Georgia Construction
U.S.
GeorgiaE
Market
overall $ CPIP
Res = $8,624,589,057
Factor% Ind =
by[
$309,194,244
Res
= [$1,027,736,000,000] x [0.
percentage
$652,169,259 x 100% = 3.59%
x 100% = 12.85
of Georgia electricity use by category to determine
$5,073,342,048
GeorgiaE Factor% = 7.29%
= $2,727,159,140
GeorgiaE Factor% = the percentage of electrical dol- GeorgiaE
in each category:
[
Georgia Construction
Georgia’s portion of construction Market $ $91,539,214
Factor%Factor%
GeorgiaE
market
T/O = $3,087,609,955=
[ = dollars
[$1,027,736,000,000] x [0
T/O$1,162,854,249
x 100% = 2.96% x 100% = 8.
Com $13,631,087,526
lar value in Georgia (Ref. 24) out of the total con-
GeorgiaE
struction
GeorgiaEEU% Factor%
GeorgiaVEC
129,200,691MWh
= value=for thexUS
dollar GeorgiaVTC
3,550,511,771MWh
100%(Ref.x 100%
23)
= 3.64% [
State Construction
Market $ [
EEU Cat
= [CPIP$] x
GeorgiaE
StateE Factor%
[
StateEEU%Cat
100%
Factor% Res =
[
=
$309,194,244
StateVEC EEU Cat x 100% = 3.59
x 100%
EconMSGeorgiaEC
State EEU%Cat =
Step 3: Georgia
Determine
StateEEU
U.S.EEU
= [$37,409,590,000] x [0.0729]
Cat
$2,006,166,000
=Total
Georgia’s
=
x 100%
electrical
$2,727,159,140
$27,519,944,000
x 100%
construction
[
Georgia
Market $
StateEconMS
Construction
Ind
[ EEU Cat =
= [$1,027,736,000,000]
EEU
[ Cat
State Construction
x Market [
$8,624,589,057
[0.0101] =$$10,344,120,296Ind
$91,539,214
$652,169,259
EEU Cat
[
StateVTCEEU Cat x StateE Factor
100%
[ Construction
market sizeMarket $ [
= [CPIP$] x [
GeorgiaEEU%
100% [ [
Georgia Construction
Market $ GeorgiaEconMS
GeorgiaEFactor%
GeorgiaE
[
Factor%T/O==
= [$1,027,736,000,000]
Ind
Ind
= [$10,344,120,296] $3,087,609,955
x [0.0119] = $12,191,962,657
$5,073,342,048
Ind
xx100%
x [0.1285]Com
100%==12.85
2.96
= $1,329,7
GeorgiaE Factor% = 7.29%
35,735,754MWh Com

GeorgiaEEU% = [$1,027,736,000,000] x [0.0364]


Multiply Indthe= value of Georgia’s portionx 100% = 1.01%
of the Ind
[
3,550,511,771MWh
Georgia Construction
construction market [as calculated
= $37,409,590,000 in Step 1.2 by
[
Georgia Construction
Market $
GeorgiaEconMS [ Com = [$12,191,962,657]
= [$1,027,736,000,000]
Res GeorgiaE Factor%Com =
$1,162,854,249
Com x [0.0853]
x [0.0144] = $14,810,329,763
$13,631,087,526
= $1,04
Res x 100% = 8.5

[ [ [
Market $ State Construction
StateEEUCat
42,119,481MWh GeorgiaEconMS Res = [$14,810,329,763] Res x [0.0359] = $530,95x State
Georgia’s electrical
State EEU%
GeorgiaEEU% = Cat = factor as calculated
U.S.EEUTotal
Com 3,550,511,771MWh
xx 100%
100% in=Step
1.19%2.
Com [
Georgia Construction
Market $ T/O
=[
StateEconMS EEU Catx =
[$1,027,736,000,000] [0.0051] = Market
$52,195,385$
$309,194,244T/O EEU Cat
GeorgiaEconMSGeorgiaET/O = [$52,195,385]
Factor% T/O x [0.0296]
Res = $8,624,589,057 x =100%
$1,547,451
= 3.59%
EconMSGeorgiaECGeorgiaVEC
= [$37,409,590,000] x [0.0729] Step 2: Determine the portion of state
GeorgiaEconMS = construction
[$10,344,120,296] x [0.1285] =$
Ind Ind
GeorgiaE Factor% =51,165,134MWh
35,735,754MWh
x 100% StateVECEEU Cat
GeorgiaEEU%
GeorgiaEEU% GeorgiaVTC
Res = 3,550,511,771MWh x 100% = 1.44%= dollars
StateE that
Factor% are = electrical dollars
x 100%
Ind==$2,727,159,140
3,550,511,771MWh
x 100% Res1.01%Ind EEU Cat StateVTCEEU Cat
GeorgiaEconMS
$91,539,214
==[$12,191,962,657]xCom x [0.0853]
$2,006,166,000 GeorgiaE Factor% ComT/O 100% = 2.96%
=
This result is Georgia’s overallx 100%
$27,519,944,000 electrical economic Divide the Value of state Electrical Construction
$652,169,259
$3,087,609,955
market
GeorgiaE
GeorgiaEEU% size
GeorgiaEEU% (EconMS
Factor%
T/O =
42,119,481MWh
180,319MWh
= 7.29%=GeorgiaEC) x 100% x= 100%
Com 3,550,511,771MWh =
0.1151% 1.19%
T/O Com
GeorgiaE Factor%Ind =
(StateVEC, EconMS in GeorgiaEconMS
$), by the
$5,073,342,048
StateEC
EEU
Σ
= x Value100% =Res
Cat
of=State
12.85%
StateEconMS [$14,810,329,763]
Total
EEU Cat
Res x [0.0359] =
3,550,511,771MWh Construction$1,162,854,249
(StateVTC, in $) in=each category— x [0.0296] = $1,
GeorgiaE Factor%Com =
GeorgiaEconMS x 100%T/O= 8.53%
[$52,195,385] T/O

[
State Construction
[ [
x StateE

{ {
StateEEUCat $13,631,087,526
see Section 6.1.1.3, Step 2.GeorgiaEconMS
StateEconMS = Ind $1,329,718,587
State EEU%Cat = 51,165,134MWhx 100% EEU Cat Market $
GeorgiaEEU%Res =U.S.EEUTotal x 100% = 1.44%Res GeorgiaE Factor%Res =
$309,194,244
x 100%GeorgiaEconMS
= 3.59%
EEU Cat
$1,040,083,966
3,550,511,771MWh
EconMSGeorgiaEC = [$37,409,590,000] x [0.0729] $8,624,589,057
Com

EconMSGeorgiaEconMS GeorgiaEconMS $530,955,004


GeorgiaEC = Ind = [$10,344,120,296]
Res Ind x [0.1285] = $
GeorgiaEEU%
GeorgiaEEU%Ind =
35,735,754MWh
= $2,727,159,140
180,319MWh
T/O =3,550,511,771MWh
x x100%
100%==1.01%
0.1151%
GeorgiaE Factor%T/O =
Ind T/O
$91,539,214
EconMS +
x
$3,087,609,955StateEC
GeorgiaEconMS
100% == Σ
2.96%
=
StateEconMS
GeorgiaEconMS T/O EEU Cat
[$12,191,962,657]
+ $1,547,451
Com x [0.0853] =
EEU Cat
3,550,511,771MWh Com
EconMSGeorgiaEC = $2,902,305,018

{ {
42,119,481MWh GeorgiaEconMSRes = [$14,810,329,763]
GeorgiaEconMSIndRes x [0.0359] =$
$1,329,71
30
GeorgiaEEU%StateEEU = Cat x 100%
State EEU%Cat = Com 3,550,511,771MWh
U.S.EEUTotal
x 100% = 1.19%Com StateEconMSEEU Cat = [
State Construction
Market $
GeorgiaEconMS
[
EEU Cat
[
x StateE Factor%EEU Cat
GeorgiaEconMS
100% [
T/O = [$52,195,385]T/O x [0.0296] = $1,5
Com $1,040,08
EconMSGeorgiaEC
GeorgiaEconMSInd = [$10,344,120,296] Ind x [0.1285]
GeorgiaEconMS
= = $1,329,718,587 Ind Res $530,95
51,165,134MWh
35,735,754MWh
Georgia 3,550,511,771MWh GeorgiaEconMSCom [$12,191,962,657]Com x [0.0853] = $1,040,083,96
[
GeorgiaEEU%Com =
Construction
Market $
42,119,481MWh
Res
= [
[$1,027,736,000,000] x [0.0144]
x 100% = 1.19%Com
= $14,810,329,763
GeorgiaEconMS Res= [$14,810,329,763] x [0.0359] = $530,955,004
Res Res Res
3,550,511,771MWh
[Georgia Construction
Market $ [ GeorgiaEconMS
STEPS TO CALCULATE MARKET SHARE FOR
T/O
ELECTRICALT/O = [$52,195,385]
CONSTRUCTION T/O x [0.0296] = $1,547,451T/O
= [$1,027,736,000,000] x [0.0051] = $52,195,385T/O
[
GeorgiaEEU%Market
Res = $ [
51,165,134MWh
State Construction
3,550,511,771MWh
EEU Cat
[ [
StateEEU%Cat
= [CPIP$]xx 100% = 1.44%
100% Res

[StateE Factor%
GeorgiaEEU% =
T/O
[
Georgia Construction
180,319MWh
Market $ =
StateVEC
3,550,511,771MWh
Ind
EEU Cat
StateVTC
= [$1,027,736,000,000]
x 100%
x 100% = 0.1151%
EEU Cat x [0.0101] = $10,344,120,296Ind
T/O
EconMS StateEC = Σ
EEU Cat
StateEconMSEEU Cat
EEU Cat

[ [ $652,169,259
Georgia Construction
= [$1,027,736,000,000] x [0.0119] = $12,191,962,657Com

{ {
Market $ Com GeorgiaEconMSInd $1,329,718,587
4] GeorgiaE Factor% = x 100% = 12.85% GeorgiaEconMSCom $1,040,083,966
[ Market $ [
Georgia Construction Ind
$5,073,342,048
Res
= [$1,027,736,000,000] x [0.0144] = $14,810,329,763Res
EconMSGeorgiaEC = GeorgiaEconMSRes $530,955,004
$1,162,854,249
[GeorgiaE Factor%[ = $13,631,087,526 x 100% = 8.53%
Georgia Construction
Market $ Com = [$1,027,736,000,000] x [0.0051] = $52,195,385
T/O T/O
+ GeorgiaEconMST/O + $1,547,451

EconMSGeorgiaEC = $2,902,305,018
$309,194,244
GeorgiaE Factor%Res =
StateVEC
x 100% = 3.59%
StateE Factor% =
$8,624,589,057
EEU Cat
x 100%
EEU Cat StateVTCEEU Cat 6.2.1.4 Atlanta/Local 613 Economic Market Size
$91,539,214
GeorgiaE Factor% $652,169,259
GeorgiaE Factor% T/O = $3,087,609,955
Ind = $5,073,342,048
x 100%
x 100% = 12.85% = 2.96% Step 1: Establish Atlanta area/Local 613 construction
market boundaries by EEU categories
$1,162,854,249
GeorgiaE Factor%Com = x 100% = 8.53% (AlabamaEconMSEEU Cat and GeorgiaEconMSEEU Cat)
$13,631,087,526
Step 3: Determine Georgia’s electrical construction
market size (MS)
GeorgiaE Factor% [
State Construction
StateEconMSEEU Cat =$309,194,244
Market
Res = $8,624,589,057 $ = 3.59%
x 100% EEU Cat
[
100% [ [
See calculation for State Level (Section 6.1.1.3, Step 3).
x StateE Factor%EEU Cat
Alabama Georgia

{ {
Multiply the value of the state’s portion of the Ind $1,966,322,084 $1,329,718,587 Re
GeorgiaEconMS = $91,539,214
GeorgiaE Factor%T/OInd
=
[$10,344,120,296] x [0.1285] = $1,329,718,587Ind
x 100% =Ind2.96%
construction market as calculated
$3,087,609,955 in Step 1 by the Com $391,628,111 $1,040,083,966
EconMSStateEC =
GeorgiaEconMS Res $278,303,574 $530,955,004
Com =factor
state’s electrical [$12,191,962,657]
as calculated Com inxStep
[0.0853]
2. = $1,040,083,966Com
T/O + $0 + $1,547,451
GeorgiaEconMSRes = [$14,810,329,763] x [0.0359]
Factor%EEU=Cat$530,955,004Res
State
StateEconMSEEU Cat = [
Construction StateE
Res
Market $ [ EEU Cat
x
[ 100% [ Total Alabama$2,636,253,769 Georgia$2,902,305,018 Ec
GeorgiaEconMST/O = [$52,195,385]T/O x [0.0296] = $1,547,451T/O
GeorgiaEconMSInd = [$10,344,120,296]Ind x [0.1285] = $1,329,718,587Ind Step 2: Determine the Atlanta/Local 613 portion of Ec
nd GeorgiaEconMSCom = [$12,191,962,657]Com x [0.0853] = $1,040,083,966Com each state’s total population
GeorgiaEconMSRes = [$14,810,329,763]Res x [0.0359] = $530,955,004Res Step 2.1: Define the counties within jurisdiction Ec
Com
EconMSStateEC
GeorgiaEconMS = Σ
StateEconMSEEU Cat= $1,547,451T/O
T/O = [$52,195,385]T/O x [0.0296]
of Atlanta/Local 613 (Ref. 26)
O EEU Cat

This result is theGeorgiaEconMS


state’s overall electrical economic
AlabamaPop%
Step 2.2:
LocalIdentify [
250,799
613 = 4,530,182 x 100% = 5.5%
the population [
of each county

{{ { {
es
$1,329,718,587 (Ref. 19)

%T/O
EconMSStateEC =
EEU Cat
Ind
market size (StateEconMS) for each category
Σ GeorgiaEconMS
StateEconMS EEU Cat Com $1,040,083,966
GeorgiaPop%Local 613 =
[ 5,686,898
8,829,383 [ x 100% = 64.4%
Ec
EconMSGeorgiaEC = GeorgiaEconMSRes $530,955,004 Local Union Counties Covered County
GeorgiaEconMS
Step 4: Total Georgia Electrical
+ GeorgiaEconMS $1,329,718,587
Economic + Market
$1,547,451
Ind
T/O Jurisdiction (Boundaries) Population Ec
GeorgiaEconMSCom $1,040,083,966
Size 613–AL = [State EconMS Barbour 28,557
EconMSGeorgiaEC
EconMSGeorgiaEC = GeorgiaEconMS Res = $2,902,305,018
$530,955,004 EconMSLocalEC EEU Cat] x [Pop%Local Area]
Georgia’s+total electricalT/Oconstruction
GeorgiaEconMS + economic
$1,547,451 613–AL Chambers 35,567 Ec

market sizeEconMS
(EconMS … … …
= ) is
StateEC
GeorgiaEC
the sum of the
$2,902,305,018
613–AL TOTAL
Alabama 250,799
Georgia
market sizes of each category. This value is the
613–GA Banks 15,685

{ {
Ind $1,966,322,084 $1,329,718,587
same as that calculated directly in Section 6.1.1.3,
613–GA Com Barrow
$391,628,111 56,418
$1,040,083,966
subject to rounding differences introduced by the EconMSStateEC =
613–GA Bartow 86,972
Res $278,303,574 $530,955,004
EIA (see Appendix H.2). 613–GA T/O + Butts $0 + 22,362
$1,547,451
… …
Total Alabama$2,636,253,769 …
Georgia$2,902,305,018
613–GA TOTAL 5,686,898
Local 613 Total Population 5,937,697
EconMSLocal613 = AL$2,636,253,769 x 0.055 = AL$144,993,957
+
EconMSLocal613 = GA$2,902,305,008 x 0.644 = GA$1,869,084,425

EconMSLocal613 = EconMSLocal613AL + EconMSLocal613GA = $2,014,078,382

31
LocalEconMSEEU Cat = [State EconMSEEU Cat] x [Pop%Local Area]
EconMSStateEC =
EconMSStateEC =T/O +
MARKET SHARE Res
Total
Ind
Com

$0{ { [ { [{
GeorgiaPop%
Res
Com

$2,636,253,769
T/OAlabama +
$1,966,322,084
$391,628,111
Local
+
$278,303,574
$0
613 = 8,829,383
$278,303,574
$391,628,111

Georgia
$1,547,451
$2,902,305,018
+
$1,329,718,587
$1,040,083,966
5,686,898
x 100% = 64.4%
$530,955,004
$1,040,083,966
$530,955,004
$1,547,451
Total Alabama$2,636,253,769 Georgia$2,902,305,018
Step 2.3: Total (add) the population count of all EconMSLocalECx =0.055
EconMSLocal613 = AL$2,636,253,769
[State EconMSEEU Cat] x [Pop%Local Area]
= AL$144,993,957
Alabama Georgia
counties of interest. +
Alabama Georgia
EconMSLocal613 = GA$2,902,305,008$177,048,361

{{ {{
Ind $1,966,322,084 $1,329,718,587 x 0.644 = GA$1,869,084,425
Alabama population in Local 613 = 250,799 EconMSLocal613 = ALRevenue =
$2,636,253,769 x 0.055 == $411,740,374
$177,048,361
0.43 AL$144,993,957
IndCom $1,966,322,084
$391,628,111 $1,329,718,587
$1,040,083,966 Revenue = + EconMS = $411,740,374 Alabama Ge
EconMS
Georgia StateEC =
population in Local 613 = 5,686,898 EconMSLocal613 = EconMS Local613AL 0.43 Local613GA =+$2,014,078,382
Com Res $391,628,111
$278,303,574 $1,040,083,966
EconMSLocal613 = GA$2,902,305,008 x 0.644 = GA$1,869,084,425
$530,955,004

{ {
EconMSStateEC = Ind $1,966,322,084 $1,32
Step 2.4: Identify Res the state’s
T/O population $0
+ $278,303,574 (Ref. 19)
+ $530,955,004
$1,547,451
NOTE: To calculate the market size for only$391,628,111
a cer-
Com $65,000,000 $1,04
If the jurisdictional T/O area + crosses state $0
boundaries,+ EconMS
$1,547,451
tain type(s) of
Local613 =work,
EconMS
EconMSuse only = +desired
the
Local613AL EconMScategories
Local613GA =to$2,014,078,382
Total Alabama$2,636,253,769 Georgia$2,902,305,018 StateEC
EconMktShareNational Res= $65,000,000 $278,303,574 x 100% = 0.07%
$53
Alabama Georgia LocalEconMSEEU Cat = [State EconMSEEU Cat] x [Pop%$87,079,375,874
Local Area]
use the populations Total of all
Alabama
states involved.
$2,636,253,769 Georgia determine
$2,902,305,018 the market size
EconMktShare and apply = the population
NationalT/O $87,079,375,874
+ per-x 100%
$0
=
+
0.07%
$
$177,048,361

{ {
Alabama Ind
population$1,966,322,084
= 4,530,182 $1,329,718,587 centage
Revenueto
= only those categories.
= $411,740,374 $65,000,000
0.43EconMktShareGeorgia Total= $65,000,000 $2,636,253,769 x 100% = 2.24%
Com $391,628,111 $1,040,083,966 $2,902,305,008
Alabama Georgia$2,90
EconMSStateEC
Georgia= population = 8,829,383 EconMktShare = x 100% = 2.24%
Res $278,303,574 $530,955,004 LocalEconMS
Revenue = $65,000,000
EEU Cat = [State EconMS
Georgia ] x [Pop%
EEU $2,902,305,008
Cat Local Area ]
$65,000,000
Step 2.5: Calculate
T/O + each area’s$0portion + of $1,547,451
its own EconMktShareLocal613 = x 100% = 3.23%
$65,000,000 $65,000,000
$2,014,078,382
state’s total population.
Total Alabama $2,636,253,769 Georgia $2,902,305,018 EconMktShare EconMktShare
National = x= 100% = 0.07% x 100% = 3.23%
EconMS = AL$2,636,253,769
$87,079,375,874
Local613 $2,014,078,382 x 0.055 = AL$144,993,9
6.2.2 Calculate Market Local613 Share
+

[[ [[
250,799 $65,000,000
AlabamaPop%Local 613 = x 100% = 5.5% Revenue = $65,000,000
EconMS = GA x$2,902,305,008
100% = 2.24% x 0.644 = GA$1,869,084,
4,530,182
250,799 Step 1: Identify
EconMktShare revenue
Georgia = dollars
Local613
$2,902,305,008 or equivalent
AlabamaPop%Local 613 = x 100% = 5.5%
4,530,182 Step 2: Calculate market share

[[ [[
5,686,898 $65,000,000
GeorgiaPop%Local 613 = x 100% = 64.4% EconMktShareLocal613EconMS
= Local613 = EconMS = 3.23% + EconMSLocal613GA = $2,0
x 100%Local613AL
$411,740,374
8,829,383
5,686,898 Divide the revenue $2,014,078,382
dollars
EconMktShare from =Step 1 by the elec- x 100% = 0.47%
GeorgiaPop%Local 613 = x 100% = 64.4% National $411,740,374
$87,079,375,874
8,829,383
trical market EconMktShare
size of interest =
(national, state, or local;x 100% = 0.47%
AlabamaPop%Local 613 =
Step 3: Determine Atlanta [
250,799
[
x 100% = 5.5%
4,530,182 / Local 613’s electrical con- total or by category)
National
as found in Section
EconMktShare
$87,079,375,874
$411,740,374
6.1.1.
Georgia = $411,740,374
x 100% = 14.19%
$2,902,305,008
struction Market
GeorgiaPop%Local 613 = Size
EconMSLocalEC =8,829,383 [
5,686,898
(MS)
[
x 100% = 64.4%
[State EconMSEEU Cat] x [Pop%Local Area]
LocalEconMS
EconMktShare
Example 1—Contractor:
EconMktShareNational =
working entirely EconMktShare
within
==
EEU$65,000,000
$411,740,374 Cat
Georgia
[State
x 100%
Local 613’s jurisdiction
$87,079,375,874
EconMS
in revenue;
$2,902,305,008
=$411,740,374
0.47%
EEU Cat] x [Pop%
x 100% = 14.19%
Local Area

Local613 = $411,740,374
x 100% = 20.44%
EconMSLocalEC = [State EconMSEEU Cat] x [Pop%Local Area] $2,014,078,382
Alabama Georgia $411,740,374
EconMktShare x 100% = 20.44%
Step 1: Identify
EconMktShareGeorgia =
revenueLocal613
dollarsx=100%
or$2,014,078,382
equivalent
= 14.19%
Multiply Local 613’s portion of Alabama and $177,048,361 $2,902,305,008

{ {{ {
Ind $1,966,322,084 $1,329,718,587
Alabama Revenue =
Georgia Revenue == $65,000,000
$411,740,374
EconMS
Georgia = [State
populations EconMS
by the ] x [Pop%
economic market ] size 0.43 $411,740,374
Com
LocalEC $391,628,111
EEU Cat $1,040,083,966
Local
Alabama Area
GeorgiaEconMktShareLocal613 = x 100% = 20.44%
onMSStateEC = for the both states,
(MS) Indrespectively.$1,966,322,084 $1,329,718,587 $2,014,078,382
Res $278,303,574 $530,955,004

{{ { {
IndCom $1,966,322,084
$391,628,111 $1,329,718,587 Step 2: Calculate market share
$1,040,083,966
EconMSStateEC
T/O + = $0
Alabama + $1,547,451
Georgia
Com Res $391,628,111
$278,303,574 $1,040,083,966
$530,955,004 $65,000,000
EconMS
Total StateEC Ind= $1,966,322,084 $2,902,305,018
$1,329,718,587 x 100% = 0.07%
Alabama$2,636,253,769
ResT/O + $278,303,574
Georgia $0 + EconMktShareNational =
$530,955,004
$1,547,451 $87,079,375,874
Com $391,628,111 $1,040,083,966
EconMSStateEC = T/O +
Total$278,303,574 $0 + $1,547,451
Res Alabama$2,636,253,769 Georgia$2,902,305,018
$530,955,004 $65,000,000
EconMktShareGeorgia = x 100% = 2.24%
T/O Total + Alabama$2,636,253,769
$0 + Georgia$2,902,305,018
$1,547,451 $2,902,305,008
Total Alabama$2,636,253,769 Georgia$2,902,305,018
$65,000,000
EconMktShareLocal613 = x 100% = 3.23%
EconMSLocal613 = AL$2,636,253,769 x 0.055 = AL$144,993,957 $2,014,078,382
StepEconMS
4: Total = AL$2,636,253,769
Electrical
Local613 Economic Marketx 0.055 = Size AL
+$144,993,957
(MS)
EconMS EconMS = = $2,902,305,008
$2,636,253,769 x 0.055 = x 0.644 + $1,869,084,425 This $65million contractor is capturing 3.23% of
=
$144,993,957
abamaPop% Atlanta
forLocal
EconMS [
Local613 250,799
Local613
AL
/ Local
613 =Local613
EconMSLocal6134,530,182
The
EconMS
=
Atlanta
totalLocal613
GA
GA
613
[
x 100%
$2,902,305,008
= GA$2,902,305,008
= 5.5%
/ LocalLocal613AL
= EconMS
x
AL

613 electrical
+ EconMS
GA
x 0.644 = GA$1,869,084,425
GA
+0.644 = $1,869,084,425
construc-
the electrical construction dollars available in Local
Local613GA = $2,014,078,382
613’s jurisdictional area, 2.24% of the dollars available
eorgiaPop%
tionEconMS
Localeconomic
EconMS 613 [
5,686,898
=Local613
8,829,383
Local613
= EconMS
market
= EconMS
[
xsize
100%
Local613AL + EconMS
Local613AL
combined total of the proportional market sizes.
+Local613GA
= 64.4%
(EconMS EconMS
Local ) is the
= Local613GA
EC = $2,014,078,382
$2,014,078,382
in the Georgia market,
EconMktShare
$411,740,374
and 0.07% of the
National = $87,079,375,874
dollars
x 100% avail-
= 0.47%
able nationally.
$411,740,374
LocalEconMS = [State EconMS ] x [Pop%Local Area] EconMktShareGeorgia = x 100% = 14.19%
LocalEconMSEEU Cat = EEU Cat
[State EEU Cat
EconMSEEU Cat] x [Pop% Local Area] $2,902,305,008
LocalEconMSEEU Cat = [State EconMSEEU Cat] x [Pop%Local Area]
onMSLocalEC = [State EconMSEEU Cat] x [Pop%Local Area] $411,740,374
EconMktShareLocal613 = x 100% = 20.44%
$2,014,078,382
Revenue = $65,000,000
Revenue = $65,000,000
Revenue = $65,000,000
Alabama Georgia

{ {
Ind $1,966,322,084 $1,329,718,587
Com $391,628,111 $1,040,083,966
onMSStateEC
32 = Res $278,303,574 $530,955,004
T/O + $0 + $1,547,451
STEPS TO CALCULATE MARKET SHARE FOR ELECTRICAL CONSTRUCTION

Example 2—IBEW Local or NECA Chapter:


Example for Local 613 (known hours worked and
rgia wage rates):
718,587 $177,048,361
Step 1:
Revenue = Identify revenue dollars or equivalent
= $411,740,374
0.43
083,966
Step 1.1: (reported hours) x (reported wage
955,004
rate) = $177,048,361 calculated wages
547,451
Step 1.2: Divide$65,000,000
labor dollars by CFMA’s
305,018 EconMktShareNational = x 100% = 0.07%
reported labor $87,079,375,874
cost percentage for electrical
contractors. (Labor cost in 2004 = 43%) (Ref.
$65,000,000
25) Georgia = $2,902,305,008 x 100% = 2.24%
EconMktShare
Georgia
$177,048,361

{
$1,329,718,587 $65,000,000
Revenue = =
EconMktShare = $411,740,374
x 100% = 3.23%
Local613 0.43
$2,014,078,382
$1,040,083,966
$530,955,004
$1,547,451Step 2: Calculate Market Share for the Atlanta / Local
613 area $65,000,000
gia$2,902,305,018 EconMktShareNational = x 100% = 0.07%
$87,079,375,874
$411,740,374
EconMktShareNational = x 100% = 0.47%
$65,000,000
$87,079,375,874
EconMktShareGeorgia = x 100% = 2.24%
$2,902,305,008
$411,740,374
EconMktShareGeorgia = x 100% = 14.19%
$65,000,000
$2,902,305,008
EconMktShareLocal613 = x 100% = 3.23%
$2,014,078,382
$411,740,374
EconMktShareLocal613 = x 100% = 20.44%
$2,014,078,382

rgia The union labor of Local 613 is capturing 20.44%


%718,587 of the electrical construction dollars available in its
$411,740,374
EconMktShare
(Local 613’s) jurisdictional = 14.19% of the xdollars
Nationalarea,
100% = 0.47%
083,966 $87,079,375,874
available in the Georgia market, and 0.47% of the dol-
955,004 $411,740,374
lars available nationally.
EconMktShare Georgia =
x 100% = 14.19%
547,451 $2,902,305,008
If the hours are known according to the work cat-
305,018
ea] $411,740,374
egories, the market share
EconMktShare can be calculated further
Local613 = $2,014,078,382
in = 20.44%
x 100%
order to determine the market penetration in each cat-
Georgia
egory.
7

{
$1,329,718,587
25 All appendices for this report
$1,040,083,966
are available to download at
$530,955,004 http://www.electri.org/active/?fa=appendices
4,078,382
$1,547,451

gia$2,902,305,018

44,993,957

69,084,425

A= $2,014,078,382
33
MARKET SHARE

6.3 Market Calculation Tables

Table 10: Calculation of share of national, state and local market for a jurisdictional
area in Atlanta, GA.
Electricity End Use (EEU) by Categories for US and Georgia
2004

1. National Electricity Used by Category

Category MWh Categories % of Total National Used


Total 3,550,511,771 100.0%
Residential 1,293,449,047 36.4%
Commercial 1,228,505,390 34.6%
Industrial 1,020,883,053 28.8%
Other 7,647,296 0.2%

2. Georgia’s Portion of National Electricity Used

MWh
GA % of Total
National Used
GA National
Total 129,200,691 3,550,511,771 3.64%

3. Georgia’s Portion of National Electricity Used by Category

MWh
GA Categories % of
Category GA National Total Category Used

Residential 51,165,134 1,293,449,047 3.96%


Commercial 42,119,481 1,228,505,390 3.43%
Industrial 35,735,754 1,020,883,053 3.50%
Other 180,319 7,674,296 2.35%

Source: Energy Information Administration, 2004


*Totals may not equal sum of components because of independent rounding (EIA Technical Notes).

34
STEPS TO CALCULATE MARKET SHARE FOR ELECTRICAL CONSTRUCTION

Table 11: Segmenting overall CPIP for the US and the state of Georgia to determine
the overall construction market by category.
1. Application of Electricity Usage Categories to Total CPIP

2004 US Construction Put in Place = $1,027,736,000,000

Categories % of US Construction Market


Total US EEU by Category
Residential 36.4% $ 374,403,532,647
Commercial 34.6% $ 355,604,852,745
Industrial 28.8% $ 295,506,206,719
Other 0.2% $ 2,221,412,231
Total 100.0% $ 1,027,736,000,000

NOTE:Total construction market is as reported, not sum of segments (see note on rounding error at bottom of table)

2. Determine Georgia construction market based on Georgia’s portion of US electricity usage by segment

GA % of US EEU GA Construction Market


(by category) by Segment
Residential 4.0% $ 14,810,329,763
Commercial 3.4% $ 12,191,962,657
Industrial 3.5% $ 10,344,120,296
Other 2.3% $ 52,195,385
Total $ 37,398,608,101

EEU Source: Energy Information Administration


CPIP Source: US Survey of Construction
*Totals may not equal sum of components because of independent rounding (EIA Technical Notes).

35
MARKET SHARE

Table 12: Determine the electrical construction market by category.


Calculation of the Electrical Construction Market for US and Georgia

1. Determine US electrical construction market using the electrical work factor

US Construction Market US Electrical Work Factors US Electrical Market


Residential $ 374,403,532,647 3.3% $ 12,206,279,912
Commercial $ 355,604,852,745 9.3% $ 33,195,040,495
Industrial $ 295,506,206,719 14.1% $ 41,591,727,145
Other $ 2,221,412,231 3.9% $ 86,328,323
Total $ 1,027,736,000,000 $ 87,079,375,874

2. Determine Georgia electrical construction market using the electrical work factor

GA Construction Market GA Electrical Work Factors GA Electrical Market


Residential $ 14,810,329,763 3.59% $ 530,955,003
Commercial $ 12,191,962,657 8.53% $ 1,040,083,966
Industrial $ 10,344,120,296 12.85% $ 1,329,718,597
Other $ 52,195,385 2.96% $ 1,547,451
Total $ 37,398,608,101 $ 2,902,305,018

EEU Source: Energy Information Administration


CPIP Source: US Construction Census
*Total values are calculated by summing the categories; totals may not equal sum of components because of independent rounding.

36
6.4 Market Share Take-Away Card

Electrical Construction Electrical Construction Electrical Construction


US Market–2004 US Market Share–2004 State Electricity End Use–2004
US Overall Construction (U):
$1,027,736,000,000
US Overall Construction Market by Segment Company ____________________________ State _______________________________
Residential (U1) $375,210,932,951 (37%)
Commercial (U2) 353,476,396,463 (32%)
Industrial (U3) 296,986,419,660 (28%)
Trans/Other(U4) 2,062,250,926 (3%) 2004 Sales by Segment 2004 Electricity End Use Segments ( kwH)
Form EIA-826
US Electrical Construction Market by Segment
Overall Revenue (R) ____________________ (http:www.eia.doe.gov/cneaf/electricity/epm/epm_sum.html)
Overall (VU) $86,993,301,487
Residential (VU1) 12,206,315,542 (3%)
Commercial (VU2) 33,195,137,392 (9%) Residential (R1) _______________________
Industrial (VU3) 1,591,848,552 (14%)
Trans/Other(VU4) 86,328,575 (4%) Commercial (R2) ______________________ Residential (RE) _______________________

Electricity Usage Segments (as defined by the EIA)


Industrial (R3) ________________________ Commercial (CE) ______________________
Residential: Consists of living quarters for private
households. Excludes institutional living quarters and may
exclude apartment buildings if in commercial category. Trans/Other (R4) ______________________ Industrial (IE) _________________________
Commercial: Consists of service-providing facilities and
equipment of businesses; federal, state and local govern- Trans/Other (TE) ______________________
ments; and other private and public organizations, such as
religious, social, or fraternal groups. Includes institutional liv-
ing quarters, sewage treatment facilities, and street lighting. Overall Revenue (OE)___________________
Industrial: Consists of all manufacturing facilities and
equipment used for producing, processing, or assembling Company’s Share of US Electrical Market
goods. Encompasses manufacturing; agriculture, forestry and
fisheries; mining; and construction. May include energy deliv-
eries to large commercial customers; may exclude deliveries Overall Share (100%xR/VU) ______________ State EEU Proportion by Segment
to small industrial customers which may be included in the
commerical sector. Residential (ES1%=100xRE/OE) ____________
Residential (100%xR1/VU1)_______________
Transportation: Consists of electricity supplied and
services rendered to railroads and interurban and street
Commercial (100%xR2/VU2)______________ Commercial (ES2%=100%xCE/OE) _________
railways, for general railroad use including the propulsion of
STEPS TO CALCULATE MARKET SHARE FOR ELECTRICAL CONSTRUCTION

cars or locomotives.
Other*: Consists of electricity consumers not elsewhere Industrial (100%xR3/VU3) ________________ Industrial (ES3%=100%xIE/OE) ____________
classified. Includes public street and highway lighting service,
service to public authorities, railroad and railway service, Trans/Other (ES4%=100%xTE/OE) _________
and interdepartmental services. *EIA discontinued use of this
Trans/Other (100%xR4/VU4) _____________
classification in 2003.

37
Electrical Construction Electrical Construction Electrical Construction
State Market–2004 State Market Share–2004 County Market Share–2004
State _______________________________
Company’s Share of State Electrical Market County _____________________________
State Construction Market ($)
Overall Share (100%xR/VS) _______________ County Construction Market ($)
Residential (CS1=U1xES1%) ______________
Residential (100%xR1/VS1) _______________ Residential (VC1=P%xVS1) _______________
Commercial (CS2=U2xES2%) _____________
Commercial (100%xR2/VS2) ______________ Commercial (VC2=P%xVS2) ______________
Industrial (CS3=U3xES3%) _______________
Industrial (100%xR3/VS3) ________________ Industrial (VC3=P%xVS3) ________________
MARKET SHARE

Trans/Other (CS4=U4xES4%) _____________


Trans/Other (100%xR4/VS4) ______________ Trans/Other (VC4=P%xVS4) ______________
Overall (CS=CS1+CS2+CS3+CS4)
Overall (VC=VC1+VC2+VC3+VC4)
________________________ County and State
Population Figures–2004 ________________________
State Electrical Construction Market ($)
County _____________________________
Residential (VS1=CS1xVS1%) _____________ Company’s Share of County Electrical Market
State Population (PS) ___________________
Commercial (VS2=CS2xV2%) _____________ From US Census Bureau Overall Share (100%xR/VC) ______________
(www.census.gov/popest/counties/CO-EST2004-01.html)
Industrial (VS3=CS3xVS3%) ______________ Residential (100%xR1/VC1)_______________
County Population (CS) _________________
Trans/Other (VS4=CS4xVS4%) ____________ Commercial (100%xR2/VC2)______________
Industrial (100%xR3/VU3) ________________
Overall (VS=VS1+VS2+VS3+VS4) Industrial (100%xR3/VC3) ________________
County’s % of State Population
________________________ (P%=100%xPC/PS) _____________________ Trans/Other (100%xR4/VC4) _____________

38
7. Conclusion
Any socio-political research requires careful inves- to segregate the CPIP, and census bureau construction
tigation of the politically charged environment. The value measurements can determine the electrical por-
first step was to ensure that all the existing methodolo- tion of the various subspecialties. These databases cal-
gies were well investigated and understood. Deductive culate the national and state level market size and
reasoning was then used to determine whether any of share of electrical contractors, NECA chapters and
the existing methodologies would satisfy the require- IBEW locals. The method is extendable by using the
ment set forth by ELECTRI International (EI) mem- correlation between EEU and population to get more
bers. The initial hope was that one or more of the localized breakdowns such as at county, city and juris-
existing methodologies would acceptably meet the dictional levels, since reporting of CPIP and EEU does
conditions, but that was not the case. The next step not follow the political boundaries at the local level.
was then to find a new methodology that was capable During the investigation, some very interesting
of accommodating the specifications as set by EI, corollaries came out of this methodology. They are:
which were:
1. The electrical construction market has meas-
■ A simple theory for calculating economic urably shifted from industrial work to commercial-res-
market share idential work
■ A recommended method of measuring mar- 2. The commercial-residential electrical con-
ket share for NECA chapters and IBEW struction work does not require as many specialized
locals, the electrical contractors, and the gov- electricians per dollar as does the industrial work
ernment
3. Portability and crew composite ratios play a
■ Identification of the potential correlations much bigger role in commercial-residential environ-
between productivity, profitability, and mar- ment than in the industrial environment
ket share
4. The non-union sector has an easier time
■ Recommendations of strategies to regain
expanding in commercial-residential work by hiring
market share
lower skilled labor than the union contractors
In looking for various options, an investigation of
5. Management of the work force in commercial-
leading and lagging economic indicators was included.
residential work environment is much more critical
The research indicated that EEU, one of the major
than in an industrial environment
economic planning indicators used by the government
for national planning and forecasting, has an extreme- 6. The commercial-residential work environment
ly high correlation to CPIP. The EEU data can be used requires the training and education of the workforce

39
MARKET SHARE

in areas of material handling, people management,


time management and other managerial skills
7. Historical divisions of labor, such as inside
and outside, no longer define the actual work environ-
ment
8. IBEW and NECA must jointly define the work
in such a way as to comply with standard governmen-
tal measurements
9. Standardized data sources that are capable of
defining the type of work should be used to measure
the markets and market share
10. IBEW and NECA should work to craft agree-
ments that allow them to be a force in every work
environment
Addressing this list of corollaries will require the
implementation of a joint strategic plan. However, a
strategic plan that allows for sustaining, regaining and
expansion of the market share will require a very care-
ful investigation of
■ environment (markets)
■ people (skills)
■ process (management)
■ material (handling)
■ tools (technologies)
Every one of these factors significantly impacts the
ability of NECA and the IBEW to succeed as well as to
survive. A standardized, common methodology for
understanding and measuring the markets and market
share, like the one suggested by this research, provides
the constituencies the instrument with which they can
measure their progress.

40
8. References
Cited References
1. Daneshgari, P. “A Comparison of Operational Cost of Union vs. Non-Union Electrical Contractors”
National Electrical Contractors Association (NECA), 2003.
2. Energy Information Administration, U.S. Department of Energy, ”Electrical Power Monthly (Form EIA-
826),” Washington D.C. August 2005
3. American Demographics, Summer 2005
4. Daneshgari, P. “Optimized Operational Model for Maximizing Electrical Contractor’s Profitability” The
Electrical Contracting Foundation, Inc. Bethesda, MD. 2001. Paper and Presentation. Management Education
Institute Class.
5. Deming, Dr. W. Edwards: Out of the Crisis. Cambridge, MA. The MIT Press, August 2000.
6. Construction Labor Research Council (CLRC), “Calculating Market Trends,” Washington D.C. March 2005
7. Education and Research Department, International Brotherhood of Electrical Workers, “ IBEW Inside
Construction Unionization Rate and Market Share Methodology,” February 2005
8. LaMonica, Paul R., “Coke vs. Pepsi: the new cola wars,” CNN/ Money, New York, May 10, 2002
9. “Seattle Public Schools Market Share: 2000, 2004, 2009,” Seattle Public Schools, Seattle Washington March
2005
10. Nielsen Media Research, “Glossary of Media Terms and Acronyms,” VNU Media Measurement and
Information, New York December 2005
11. Visclosky, Representative Peter J., First Congressional District of Indiana, “Testimony on the current
American Steel Crisis before the House Committee on Ways and Means, subcommittee on Trade,” February 25,
1999.
12. Milker, Emile W., Manager of Market Intelligence, Copper Development Association, Inc. “Opportunities
in North America’s Copper Market,” presented to International Copper Study Group in Santiago Chile, March 22,
2002
13. Daneshgari, P., “Lecture Series,” University of Michigan, Dearbon MI, May 1999.
14. Krazit, Tom, IDG News Services, PCWorld, “Cell Phones Sales Skyrocket,” December 8, 2003.
15. Bureau of Labor Statistics, U.S. Department of Labor,” Current Employment Statistics (CES) Survey,”
Washington D.C. December 2005

41
MARKET SHARE

16. Bureau of Labor Statistics, U.S. Department of Labor, ”Quarterly Census of Employment and Wages,”
Washington D.C. October 2005
17. U.S. Census Bureau, U.S. Department of Commerce, “Survey of Construction,” Washington D.C.
September 2005
18. U.S. Census Bureau, U.S. Department of Commerce, “New Residential Construction Press Release,”
Washington D.C. November 2005
19. U.S. Census Bureau, U.S. Department of Commerce, “Population Estimates by County,” Washington D.C.
July 2004
20. Research and Analytics, McGraw-Hill Construction, “Dodge Local Construction Potentials Bulletin,”
Lexington, MA November 2005
21. Bureau of Economic Analysis, U.S. Department of Commerce, “News Release: Gross Domestic Product
and Corporate Profits, Third Quarter 2005,” Washington D.C. December 2005
22. National Electrical Benefit Fund, “Wage/ Benefit Survey August 2004 Inside,” Bethesda, MD. August 2004
23. U.S. Census Bureau, U.S. Department of Commerce, “Electrical Contractors, 1997 Economic Census,
Construction Industry Series,” Washington D.C. September 1999
24. U.S. Census Bureau, U.S. Department of Commerce, “Geographic Area Summary, 1997 Economic Census,
Construction Industry Series,” Washington D.C. April 2000
25. Construction Financial Management Association, “CFMA’s 2004 Construction Industry Annual Financial
Survey,” Princeton NJ 2004
26. International Brotherhood of Electrical Workers, “Local Union Directory,” http://www.ibew.org/ibew/direc-
tory/, Washington D.C. December 2005

Additional References
27. Daneshgari, P; Wilson, M: "The Impact of Job Planning on Profits" The Construction Financial
Management Association : Nov - Dec 2005
28. Daneshgari, P: "Procurement Management in the Electrical Contracting Industry" Electrical Contractor :
October 2005
29. Daneshgari, P; Nimmo, P; Wilson, M: "Procurement Management in the Electrical Contracting Industry"
Electrical Contractor : August 2005
30. Daneshgari, P; Murdock, F: "Operational Model for Improving System Productivity of Distributors:
Internal Cost Drivers" System Dynamics Society, The 23rd International Conference of the System Dynamics
Society - Boston, MA: July 2005
31. Daneshgari, P; Wilson, M: "Procurement Management In the Electrical Contracting Industry" Electro-
Federation Canada 11th Annual Supply & Distribution Conference - Montreal, Quebec Canada: June 2005
32. Daneshgari, P; Wilson, M: "Customer Positioning Model for Contractors" The Construction Financial
Management Association : May-June 2005

42
REFERENCES

33. Daneshgari, P; Nimmo, P: “Ideal Jobsite Inventory Levels to Improve Profitability” National Electrical
Contractors Association (NECA), 2005.
34. Daneshgari, P; Harbin, S: “Procurement Chain Management in the Construction Industry.” The Electrical
Contracting Foundation, Inc. Bethesda, MD. 2004. Paper and Presentation. Management Education Institute
Class.
35. Daneshgari, P.: “A Strategy for Improving the Electrical Contracting Industry – The role Electri21 can play
to promote more productive relationship.” The Electrical Contracting Foundation, Inc. Bethesda, MD. 2004. Paper
and Presentation. Management Education Institute Class.
36. Daneshgari, P.; Olmstead, B.: “Operational Model for Increasing Profitability of Electrical Distributors,”
National Association of Electrical Distributors (NAED), 2003.
37. Daneshgari, P.: Article, “The Future of Cooperative Relationships”. TED Magazine December 2003
38. Daneshgari, P.: Article, “Building a “How To” for Distributor Profitability”. TED Magazine November 2003
39. Daneshgari, P.: Article, “Helping Distributors Increase Profitability”. TED Magazine October 2003
40. Daneshgari, P.: “Wireless Technology and the Electrical Contractor”, National Electrical Contractors
Association (NECA) Convention. Chicago, IL, October 2002
41. Daneshgari, P.; Nimmo, P.: “Learning Based Product Development and Planning” Paper for ASEE, 2002.
42. Daneshgari, P.: Paper and Presentation “Scientific Project Management: A Path to Engineer’s Management
Career.” IEEE-USA Professional Development Conference. Scottsdale, Arizona. September 2000.
43. Daneshgari, P.; Dennis, G.: Paper and Presentation “Matrix Organization: How to Manage 21st Century
Companies”. National Electrical Contractors Association (NECA) Convention. New Orleans, Louisiana. October
1999.
44. Daneshgari, P.; Dennis, G.: Paper and Presentation “Inventory Management through Supplier Partnership.”
National Electrical Contractors Association (NECA). Las Vegas, Nevada. October 1998.
45. Daneshgari, Dr. Parviz (Perry): The Chase. San Diego, CA. Black Forest Press. 1998.
46. Daneshgari, P.; Ryder, R.: Paper and Presentation “Periodic Prototyping and Project Management.” Project
Management Institute Annual Seminar. Control # 97126. Chicago, Illinois. PMI 1997.
47. Daneshgari P.; Marvin, W.: Paper and Presentations “Real Time Business Process Management with the
Help of a Smart Distribution Process Control.” SAE International Congress. Detroit, Michigan. Vol. 970271.
February 1997.
48. Daneshgari, P.; Romanowski, M.; Stimpson, T: Paper and Presentation “Application of QFD to Engine
Development Time.” SAE International Congress. Detroit, Michigan. Vol. 960546, from SP-1146, New Technologies
for Product and Process Integration. 1996.

43
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© 2007 ELECTRI International—


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Electrical Construction, Inc.
All rights reserved.
Index No. F2710

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