Motor and Generator Manufacturing
Industry: Motor and Generator Manufacturing
Naics: 335312
Private Company Multiples
Industry Overview
Generator contractors are critical to modern life, ensuring reliable power for homes, businesses, and infrastructure. Their work—installation, repair, and maintenance—keeps the lights on, literally and figuratively.
Despite economic ups and downs, this industry has proven both resilient and essential. The generator market itself is expanding rapidly. In 2022, it was valued at $32.17 billion and is projected to reach $54.87 billion by 2032, with a steady CAGR of 5.5%.
What’s driving this growth? Two main forces: rising demand for uninterrupted power and the increasing frequency of power outages. In a world where reliability matters more than ever, generator contractors are positioned to thrive.
Market Size and Projections
The U.S. generator sales market is expected to grow from $6.43 billion in 2024 to $10.26 billion by 2032, with a CAGR of 6.03%. This growth reflects the industry's adaptability and innovation, particularly in areas such as fuel-efficient and environmentally friendly power generating systems.
Workforce and Employment
The overall electrical equipment manufacturing sector, which includes generator manufacturing, has been experiencing growth. The industry's expansion is driven by increasing demand for backup power solutions and the need for skilled professionals in installation, repair, and maintenance of generator systems.
Industry Structure
The generator industry comprises a mix of large manufacturers and smaller service providers. For instance, the construction generator sets market includes numerous small businesses, with 88% of establishments having fewer than 20 employees. This structure highlights the importance of specialized generator contractors in the service and maintenance sector.
Future Outlook
The future of the generator contracting industry looks promising, with several key trends emerging:
- Adoption of digital technologies for remote monitoring and predictive maintenance
- Increasing demand for hybrid power solutions and clean energy alternatives
- Growing focus on grid stability and resilience
- Expansion of electric vehicle charging infrastructure creating new opportunities
As the industry evolves, generator contractors who adapt to these changes and embrace new technologies will likely find themselves at a competitive advantage.
How to Grow Your Generator Contracting Business?
To thrive in the expanding generator market, contractors need to adopt a strategic approach to growth. Diversifying service offerings is key—emerging technologies like smart generators and renewable energy integration present new opportunities to meet evolving customer demands. At the same time, addressing the industry’s skilled labor shortage is critical. Investing in workforce development through training and competitive incentives can help attract and retain top talent.
Digital tools also play a pivotal role in driving growth. Leveraging technology to streamline operations and enhance customer service can set businesses apart in a competitive market. Additionally, targeting high-growth sectors such as data centers, healthcare, and telecommunications offers access to customers with an ongoing demand for reliable power solutions. Building strategic partnerships with manufacturers and suppliers ensures access to cutting-edge equipment and technology, keeping your business ahead of the curve.
A strong online presence is essential in today’s market. A professional, fast, and mobile-friendly website, coupled with targeted digital marketing strategies like SEO and paid ads, can effectively attract and convert leads. Finally, offering comprehensive maintenance contracts not only generates recurring revenue but also builds long-term customer loyalty.
Key Financial Metrics
Income Statement Benchmark
