2015 ELECTRICAL CONTRACTING INDUSTRY BENCHMARK AND · PDF file2015 electrical contracting industry benchmark and charge out rate survey national report

2015 ELECTRICAL CONTRACTING

INDUSTRY BENCHMARK AND

CHARGE OUT RATE SURVEY

National Report

Master Electricians Australia 2015 Industry Benchmark and Charge Out Rate Survey - National 1

Industry Benchmark Survey including Charge Out Rates

2015 National Report

Benchmarking your business against others is a useful way to stay competitive in the marketplace and stay

one step ahead. That’s why Master Electricians Australia has developed this 2015 Industry Benchmark and

Charge Out Rate Survey Report.

The figures indicated in this report allow you to compare your business rates (including charge out rates,

service fees, travelling fees and mark-ups) with those of your peers. It is an invaluable business tool when

planning for your business in the coming 12 months and assessing your performance over the past 12

months.

Part 1 – Business Profile

COMPANY SIZE

The percentage of respondents by business size is as follows:

14%

49%

18%

14%

3%

1% 1%

1 staff

2-5 staff

6-10 staff

11-25 staff

26-50 staff

51-100 staff

101-200 staff


AGE GROUP

The percentage of respondents by age group is as follows:

LENGTH OF BUSINESS OPERATION - NATIONAL

The percentage of respondents by length of business operation is as follows:

1%

21%

27%

30%

21%

Under 25

26-35

36-45

46-55

Over 56

3.1%

20.9%

22.6%

53.5%

Less than 12 months

1 - 5 years

6 - 10 years

Over 10 years


MEMBERSHIP TENURE

The percentage of respondents by membership tenure is as follows:

MEMBERSHIP SERVICES

The percentage of respondents who are Accredited Master Electricians is as follows:

12%

45% 17%

27%

Less than 12 months

1 - 5 years

6 - 10 years

Over 10 years

38.0%

62.0%

Yes No


BUSINESS LOCATION

The percentage of respondents located in a metro or regional area is as follows:

54.4%

45.6% Metro

Regional


TYPE OF WORK

The percentage of respondents operating in the following types of work is:

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Domestic Commercial Industrial

Small/Medium Construction Major Construction Solar

Power Poles Service/Maintenance Energy Management

Fire Detection Asbestos Refrigeration

Air Conditioning Hazardous Location HV

Home Automation Home Theatre\AV Data Networks

Domestic Security Commercial Security CCTV Security

Pay TV Marine Electricity Supplier

Manufacturer Wholesaler Government Department

Teacher


Part 2 – Charges and fees

CHARGE OUT RATE FACTORS

The percentage of respondents who consider the following factors when working out their charge

out rates is:

CHARGE PER HOUR OR QUOTE PER JOB

The percentage of respondents who charge by the hour or quote per job is:

29% 32%

35%

29% 31%

18%

66%

0%

10%

20%

30%

40%

50%

60%

70%

Industry average

Customer expectations

Overheads

Wages

Profit margin

Calculated over expenses

All of the above

9.6% 3.1%

87.4%

Charge per hour

Quote per job

Both


IDENTIFYING CHARGE OUT RATES TO CUSTOMERS

The percentage of respondents who identify their charge out rate to their customers is:

SERVICE FEES

The percentage of respondents who charge a service fee, in addition to hourly rates is:

34.1%

28.3%

5.9%

31.7% Identify when quoting

Identify when invoicing

Don't identify

On request only

61.5%

3.1%

12.2%

7.6%

15.6% Don't charge a service fee

Service fee between $1-$25



Service fee over $70


TRAVELLING TIME

The percentage of respondents who charge an additional fee for travelling time is:

LOADING FOR AFTER HOURS AND EMERGENCY CALLOUTS

The percentage of respondents who charge an additional fee for after hours or emergency callouts

is:

40.1%

10.3%

30.9%

8.9%

9.9%

Don't charge an additional travelling time fee

Charge at a flat rate

Charge at a normal hourly rate

Charge per kilometre

Other (please specify)

21.3%

13.1%

15.7%

6.7%

11.9%

31.3%

Don't charge an additional fee

10-20% increase

21-30% increase

31-40% increase

41-50% increase

50%+ increase


EXPENDITURE

The percentage of respondents whose expenditure on the following areas has changed compared

to 12 months ago is:

AVERAGE MARK UP % ON TRADE PRICE MATERIALS

Respondents indicated the following mark up percentage on the trade price of materials:

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Materials Labour Overheads

Less

Same

+10%

+25%

+50%

100%+

1.7%

13.1%

26.5%

33.3%

21.3%

2.7%

1.4%

No mark-up

5-10%

11-20%

21-30%

31-50%

51-80%

100%+


CHARGE OUT RATES – NATIONAL - 2015

The average National charge out rate per hour for each employee for different types of work is as follows:

Sole Trader

/Partner

Supervisor /Manager

Trades person

Trade Assistant

1st

Year Apprentice

2nd

Year Apprentice

3rd

Year Apprentice

4th

Year Apprentice

Team - Apprentice+

Tradesperson

Admin/Clerical Worker

Domestic $85.19 $91.31 $89.49 $50.53 $38.79 $47.27 $55.19 $63.46 $124.78 $37.81

New Residential $78.02 $85.54 $85.97 $47.63 $36.37 $43.49 $49.91 $58.30 $114.73 $37.05

Commercial $92.00 $100.70 $95.16 $54.83 $41.09 $49.44 $57.86 $65.71 $126.38 $50.11

Construction $88.87 $99.12 $89.29 $60.95 $42.16 $50.54 $58.69 $66.31 $126.68 $52.19

Industrial Maintenance

$93.43 $104.46 $92.69 $57.31 $42.33 $51.94 $57.82 $65.51 $134.33 $55.66

Air Conditioning & Refrigeration

$77.03 $90.05 $90.84 $33.60 $35.59 $45.03 $49.76 $62.15 $117.65 $36.25

Data & Communications

$82.63 $88.38 $90.73 $52.04 $40.53 $47.61 $53.74 $63.83 $123.33 $44.71

Appliance $73.97 $72.93 $88.42 $36.18 $35.83 $45.00 $48.33 $56.86 $107.72 $36.50


CHARGE OUT RATES COMPARED TO 2013 INDUSTRY BENCHMARK SURVEY

The average charge out rate per hour for 2015 for different types of work, compared to corresponding data from 2013 is as follows:

Sole Trader

/Partner

Supervisor /Manager

Trades Person

Trade Assistant

1st Year Apprenti

ce

2nd

Year Apprenti

ce

3rd

Year Apprentice

4th

Year Apprentice

Team - Apprentice

+ Tradespers

on

Admin/Clerical Worker

Domestic

2013 $84.92 $87.00 $85.14 $57.57 $39.72 $46.03 $56.00 $65.22 $122.96 $55.59

2015 $85.19 $91.31 $89.49 $50.53 $38.79 $47.27 $55.19 $63.46 $124.78 $37.81

Change $0.27 $4.31 $4.35 -$7.04 -$0.93 $1.24 -$0.81 -$1.76 $1.82 -$17.78

Sole

Trader

/Partner

Supervisor

/Manager

Trades

Person

Trade

Assistant

1st Year

Apprentice

2nd

Year

Apprentice

3rd

Year

Apprentice

4th

Year

Apprentice

Team -

Apprentice+

Tradesperson

Admin/Clerical

Worker

New Residential

2013 $83.33 $84.23 $82.90 $57.03 $39.76 $46.26 $55.96 $65.55 $125.84 $58.82

2015 $78.02 $85.54 $85.97 $47.63 $36.37 $43.49 $49.91 $58.30 $114.73 $37.05

Change -$5.31 $1.31 $3.07 -$9.40 -$3.39 -$2.77 -$6.05 -$7.25 -$11.11 -$21.77

Sole Trader

/Partner

Supervisor

/Manager

Trades

Person

Trade

Assistant

1st Year

Apprentice

2nd

Year

Apprentice

3rd

Year

Apprentice

4th

Year

Apprentice

Team -

Apprentice+

Tradesperson

Admin/Clerical

Worker

Commercial

2013 $87.54 $91.49 $86.76 $60.26 $42.22 $48.57 $57.22 $66.67 $128.84 $58.35

2015 $92.00 $100.70 $95.16 $54.83 $41.09 $49.44 $57.86 $65.71 $126.38 $50.11

Change $4.46 $9.21 $8.40 -$5.43 -$1.13 $0.87 $0.64 -$0.96 -$2.46 -$8.24


Sole Trader

/Partner

Supervisor

/Manager

Trades

Person

Trade

Assistant

1st Year

Apprentice

2nd

Year

Apprentice

3rd

Year

Apprentice

4th

Year

Apprentice

Team -

Apprentice+

Tradesperson

Admin/Clerical

Worker

Construction

2013 $87.22 $95.37 $85.18 $62.94 $42.65 $48.02 $57.67 $66.26 $127.33 $63.69

2015 $88.87 $99.12 $89.29 $60.95 $42.16 $50.54 $58.69 $66.31 $126.68 $52.19

Change $1.65 $3.75 $4.11 -$1.99 -$0.49 $2.52 $1.02 $0.05 -$0.65 -$11.50

Sole Trader

/Partner

Supervisor

/Manager

Trades

Person

Trade

Assistant

1st Year

Apprentice

2nd

Year

Apprentice

3rd

Year

Apprentice

4th

Year

Apprentice

Team -

Apprentice+

Tradesperson

Admin/Clerical

Worker

Industrial

Maintenance

2013 $91.76 $97.69 $89.97 $65.44 $44.46 $50.39 $59.81 $68.38 $128.00 $65.21

2015 $93.43 $104.46 $92.69 $57.31 $42.33 $51.94 $57.82 $65.51 $134.33 $55.66

Change $1.67 $6.77 $2.72 -$8.13 -$2.13 $1.55 -$1.99 -$2.87 $6.33 -$9.55

Sole Trader

/Partner

Supervisor

/Manager

Trades

Person

Trade

Assistant

1st Year

Apprentice

2nd

Year

Apprentice

3rd

Year

Apprentice

4th

Year

Apprentice

Team -

Apprentice+

Tradesperson

Admin/Clerical

Worker

Air Conditioning

& Refrigeration

2013 $85.26 $90.36 $88.02 $58.02 $40.10 $47.70 $57.04 $66.03 $130.16 $55.00

2015 $77.03 $90.05 $90.84 $33.60 $35.59 $45.03 $49.76 $62.15 $117.65 $36.25

Change -$8.23 -$0.31 $2.82 -$24.42 -$4.51 -$2.67 -$7.28 -$3.88 -$12.51 -$18.75


Sole Trader

/Partner

Supervisor

/Manager

Trades

Person

Trade

Assistant

1st Year

Apprentice

2nd

Year

Apprentice

3rd

Year

Apprentice

4th

Year

Apprentice

Team -

Apprentice+

Tradesperson

Admin/Clerical

Worker

Data &

Communications

2013 $88.43 $93.00 $86.67 $61.31 $43.19 $49.14 $56.92 $65.54 $124.46 $58.41

2015 $82.63 $88.38 $90.73 $52.04 $40.53 $47.61 $53.74 $63.83 $123.33 $44.71

Change -$5.80 -$4.62 $4.06 -$9.27 -$2.66 -$1.53 -$3.18 -$1.71 -$1.13 -$13.70

Sole Trader

/Partner

Supervisor

/Manager

Trades

Person

Trade

Assistant

1st Year

Apprentice

2nd

Year

Apprentice

3rd

Year

Apprentice

4th

Year

Apprentice

Team -

Apprentice+

Tradesperson

Admin/Clerical

Worker

Appliance

2013 $88.33 $87.36 $87.49 $56.06 $41.27 $49.34 $53.71 $66.17 $131.96 $61.00

2015 $73.97 $72.93 $88.42 $36.18 $35.83 $45.00 $48.33 $56.86 $107.72 $36.50

Change -$14.36 -$14.43 $0.93 -$19.88 -$5.44 -$4.34 -$5.38 -$9.31 -$24.24 -$24.50


Part 3 – Training and Challenges

TRAINING IMPORTANCE

Respondents indicated the following levels of importance to training priorities:

TRAINING IMPORTANCE COMPARED TO 2013

The below table represents the average weighting respondents indicated for the importance of

training priorities compared between 2015 and 2013:

0% 10% 20% 30% 40% 50% 60% 70%

Apprentice training

Post apprentice training

Business skills training

Energy efficiency training

Refresher training

Toolbox talks / training

Very Unimportant

Unimportant

Important

Very Important

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Apprentice training

Post apprentice

training

Business training

Energy efficiency training

Refresher training

Toolbox talks/training

2015

2013


BUSINESS CHALLENGES

Respondents indicated the level of importance to the following business challenges over the

next 12 months:

0% 20% 40% 60% 80% 100%

Competition

Quality of suppliers

Controlling finances

Debtor management

Workplace relations issues

Work health and safety

Cash flow

Transportation costs

Finding clients

Economic conditions

Skills shortage

Regulatory impact

Cost of electricity

Cost of fuel

Construction industry …

Energy retailer issues

Energy efficiency

Cost of financing / borrowing

Very Unimportant

Unimportant

Neutral

Important

Very Important


Part 4 – Technology

USE OF TECHNOLOGY

Respondents indicated they utilise technology in the following ways:

WEBSITE

The percentage of respondents with a website is as follows:

55.79%

14.63%

19.51%

6.10%

3.96%

Field staff are provided with tablets / smartphones to undertake work

Field staff are required to have tablets / smartphones to undertake work Only office staff utilise technology for work

We are strictly paper based

Other

58.4%

41.6%

Yes No

Documents

2015 ELECTRICAL CONTRACTING INDUSTRY BENCHMARK AND · PDF file2015 electrical contracting industry benchmark and charge out rate survey national report