Electrical supply business

The electrical supplies sector is a massive industry that generates substantial amounts of revenue every year. Here, we take a look at the state of the industry, where it’s heading, and why electrical franchises are making lucrative returns.

>> Read more:

• Electric Company: Are There Franchises?
• Start an Electrical Services Franchise and Become a Bright Spark
• Local Electricians: Create Your Own Business
• Best Electrical Franchise Opportunities

Starting an Electrical Business

With construction firms investing heavily in new housing schemes up and down the country, there is plenty of demand for electricians in the UK at the moment.

Every new house that is built needs to be fitted with the right wires and appliances to make it habitable. As a result, technicians are benefitting from the wealth that is trickling down from heavy-duty housing initiatives.

But the electrical supply industry is about much more than just electricians. Manufacturers and retailers also take up a big share of the industry, and they are benefitting from the UK’s appetite for tech.

Technicians, suppliers and retailers are all jostling with other businesses in their respective industries to offer the cheapest service possible. However, the most successful of them also pay plenty of opportunity to the quality of their products and services.

Electrical supply franchise

If you’re looking to make a name for yourself in the electrical supplies industry, the best approach is to join an established electrical franchise.

The franchise model is the best way of keeping costs low and ensuring quality. Franchises achieve both of these things by establishing cost-effective supply lines and conducting in-depth customer research.

Currently, there are plenty of home repair expert franchises and general DIY store franchises looking for new partners.

Few electrical suppliers utilise the franchise model to their advantage, and there's certainly an opportunity to be had. If you are a talented, business-orientated individual, you can join a high-quality retailer that’s capable of servicing the needs of customers.

Electrical supply industry

The UK electrical industry generates an approximate annual revenue of £24 billion and employs around 175,000 people across the country. It is made up by a range of different businesses, both local and international. They include the following:

• Electrical manufacturers. These are the people that make the electrical goods we use on a daily business. They tend to be located in places like China and Pakistan, where labour is cheap. The final product is exported all over the world, and in particular to hungry European and US markets.
• Electrical goods retailers. Companies like Currys and PC World have traditionally been two of the largest electric retailers in the UK. Now, Amazon has taken the lead in the industry and is shipping out more tech products than any other.
• Technicians. If you have a problem with any of your electrics, you are likely to get in touch with a local electrician that can fix it. Electrician businesses come in all shape and sizes, from local small businesses to national franchises like Mr Electric.

Electrical supply industry growth

Currently, the electrical supply industry is growing fast. All tradesmen are enjoying the business that is being generated by the UK’s current housebuilding drive.

Moreover, less young people are showing an enthusiasm to train to become electricians. That means less competition for franchises in the sector and, as a result more freedom to keep prices high.

All in all, this points to a healthy future for the industry and is a good sign for anyone hoping to open a new business in the sector.

Read more: Buy a Business with Franchising

Just under 45,000 businesses are operating in the electrical industry. Though there are large-scale organisations working in the sector, it still predominately consists of smaller organisations and independents.

Contracting still plays a large role in the industry, and many electricians operate as self-employed workers. However, not many go as far as setting up their own business.

The future of the industry

The electricity industry is heavily intertwined with the construction industry. Consequently, booms in construction have a knock-on effect on the electricity sector. However, that also means that a struggling construction sector will limit profitability in the electricity industry.

In tough times, the industry struggles due to price competition, with different business and contractors dropping prices in an attempt to win what little work there is.

The demand for electrical supplies

As long as the economy is pulling in the right direction, an electrical services franchise can earn you a fortune. The current housing crisis in the UK and several other developed countries means that their governments are likely to go on housing drives in the future.

The UK government is not going to take a spectator approach to housing in the coming years. To galvanise the market, it is subsidising residential construction to make sure as many new houses are built as possible.

UK electrical supplies

The electrical supplies industry is diverse and covers a wide range of stores and products. This includes both residential and commercial equipment, such as:

• Lighting fixtures
• Heating systems
• Ventilation systems
• Generators

Producing these appliances is dependent on the production of raw materials that include:

• Copper
• Aluminium
• Steel

This means that prices in the industry often fluctuate due to an increase or decrease in the value of these materials. In the UK, research and development play an essential role in ensuring that electrical suppliers can refresh and revitalise their product lines constantly.

Specialist electrical supply businesses

In the UK electrical sector, there are numerous niches in which a company or franchise could fit. For instance, electricians can specialise in certain types of build, such as homes, hotel refurbishment, office spaces, or outdoor events.

On the other hand, retailers can specialise in residential or commercial goods or a particular type of electrical product. In this respect, there are excellent opportunities for a business owner with some expertise to exploit gaps in the market. Even if you don’t have experience in electricals, there are franchise opportunities available for you.

Advantages of an electrical franchise

The franchise model is advantageous for many reasons. Here, we take a look at the top three and examine the benefits that franchising has over traditional start-up operations, particularly in respect to the electrical supplies sector.

1. Brand reach

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First and foremost, franchising allows you to expand your brand’s reach and target many more customers.

While independents can market themselves effectively, it’s much harder to build a recognisable brand when your business is limited to a single premise. Large, successful brands all have one thing in common – they achieve greater recognition by spreading across different regional markets and advertising to as many people as possible.

Franchising is designed to facilitate this type of growth and to expand the reach of a brand. However, it’s important to note that businesses still need to dedicate serious resources to their marketing efforts if they’re to build a successful brand.

Expansion alone won’t result in the development of a powerful brand experience – businesses need to create a coherent identity and utilise the same tone of voice in all of their advertising efforts.

2. Business training

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Some of the most significant benefits of the franchising system are the training opportunities. These opportunities are particularly important in the electrical industry, where there’s a great deal of specialist knowledge to get to grips with.

The best franchises are those that understand the importance of staff training and ensure that their employees are fully prepared for their roles. This may take the form of regular workshops, online e-learning opportunities, or conferences. Events like these are also useful when it comes to keeping up with the latest developments in the industry.

Mr Electric

Mr Electric is an international electrical franchise that has had incredible success stateside. Now, it is looking to bring its proven business model across the pond to the UK.

One of the main reasons that new partners are rushing to register for a Mr Electric franchise is its bespoke training programme. Designed to cover all of the challenges that come with opening your own business, it includes supervision in the following:

• Operations • Marketing • National Accounts

Your own dedicated franchise consultant will help you to develop a proficiency in all of these areas. All franchisees are also offered the services of a local marketing specialist that has expertise in leading campaigns and producing promotional material.

3. Ongoing franchise support

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Finally, electrical franchises tend to provide individual franchisees with a great deal of support and guidance. This can come in the form of established contacts, franchisee hotlines and in-store visits.

Franchisor supervision helps electrical franchisees to have the best possible chance of turning a profit and growing their businesses. It is also important to the franchisor, as it guarantees that all franchisees are operating to a similar standard and that the brand is protected.

Should I open an electrical supply franchise?

The electrical supplies industry makes an impressive contribution to the UK economy. Within the industry, there’s plenty of opportunity for new businesses with a strong brand.

The industry is also well suited to franchising, and quick-thinking entrepreneurs are beginning to take advantage. If you’re looking to start a new business in the industry and feel as though you’ve got what it takes to run a large-scale business network, an electrical franchise is the best route to take.