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Not many consumer products have seen double-digit growth each year since 2001. However, back-up power generators for homes and small businesses have not only witnessed this growth but have turned into a profitable business for many electrical contractors throughout the U.S. and Canada in recent years.
Threats of power outages have come from more than just the coastal areas affected by hurricanes. Wind and ice storms, dilapidated power grids and rolling blackouts have all contributed to consumer awareness and their desire to find back-up power solutions beyond portable generators and extension cords.
Market growth
Standby power for homes has been around since 1920. However, automatic systems became more prevalent in the mid-20th century and reached a peak during the Y2K scare in 1998 and 1999. Although the market saw a dip in the year 2000 due to a saturated market, it started an upward climb the following year and has not slowed down since.
Industry experts estimate that in 2006, the residential standby generator market (typically considered to be units ranging from 7 kW up to 45 kW, although larger units are available) saw sales of over half a billion dollars. Even with sales figures that high, the industry is still considered to be in its infancy and many of the residential standby generator manufacturers expect the market to double in size over the next five years.
So why should electrical contractors look at residential standby generators for their business? It's simple. With the market still experiencing double-digit growth each year, electricians are in a good position to find a generator brand that best suits their needs and that of their customers, while establishing themselves as the go-to-supplier of generators.
But for those electrical contractors considering offering this category, product isn't the only issue that helps drive profit.
Quality installations and the opportunity to offer basic preventive maintenance agreements (engine repair, oil and air filter replacements, for instance) to each customer can build one's customer service levels. This is critical in this product category, considering the category is still a bit unfamiliar to most consumers.
