The Electrical Contracting Is A Highly Competitive Industry

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The electrical contracting is a highly competitive industry that is also experiencing consistent growth in demand. This is evident in the state of California which has seen a rapid increase in commercial and residential buildings in the last decade. Southern California was one of the fastest growing areas in the entire nation in the late 1990s and early 2000s and it led to most upstart electrical companies basing their operations in that region. While there had always been some huge national companies there since the mid-twentieth century such as Bergelectric and Helix, there was still an opportunity to be filled by smaller enterprises. Companies such as J&J and Buck were founded to take advantage of the emerging market which seemed to…show more content…
J&J CEO John Abernathy stated that in some cases they have had to incur losses on a contract simply because they wanted to maintain the opinion that is held of them by the general public and private clients. In their field, rivalry is not as intense as in other sectors of the energy industry. This is because of the rapid rate of growth that has continued to be experienced in the electrical industry for almost two decades now. It means that there are less direct rivals because of the many opportunities available to all. Another reason for the relatively low direct rivalry is the lack of fixed cost. While every company knows its estimate for any potential contract, there is always room left aside to maneuver their way to successfully getting that contract. This means that companies usually bid for projects they know they can complete while generating a profit. As John Abernathy pointed out, one of the main reasons why J&J has remained successful over the years is that they knew from an early stage that they had to grow at a faster rate than the market itself. Unlike other companies which continually placed extremely low bids for contracts in order to win over new clients, J&J placed emphasis on the quality of their work. Therefore despite the fact that they were more costly, they were still in high demand as they provided excellent electrical wiring and systems services. The companies which
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