Electrical Contractors and Other Wiring Installation Contractors — Business Survival Rate

An estimated 65% of electrical contractors and other wiring installation contractors businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 8.4%.

65%
5-Year Survival Rate
+4.1%
Net Growth Rate
177,201
Total Firms
12,921
Annual Firm Deaths

Is Electrical and Other Wiring Installation a Good Business to Start?

With a 65% five-year survival rate, electrical contractors and other wiring installation contractors has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.

The annual exit rate of 8.4% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)10.5%
Exit Rate (closures)8.4%

Net positive: more businesses opening than closing (+2.1 pp spread).

Job Creation & Destruction

15.7%
Job Creation Rate
11.6%
Job Destruction Rate
+4.1%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 2,369,218 workers across 177,201 firms.

Want to know how much electrical contractors and other wiring installation contractors businesses actually make?

See full revenue benchmarks for Electrical Contractors and Other Wiring Installation Contractors →

Frequently Asked Questions

What percentage of electrical contractors and other wiring installation contractors businesses fail?
Approximately 35% of electrical contractors and other wiring installation contractors businesses fail within their first 5 years. The annual closure rate is 8.4%, with 12,921 firms closing permanently in 2023.
Is the electrical contractors and other wiring installation contractors industry growing or shrinking?
The electrical contractors and other wiring installation contractors industry is currently growing with a net job creation rate of +4.1% per year. New businesses are entering at 10.5% while 8.4% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.