2015 ELECTRICAL CONTRACTING
INDUSTRY BENCHMARK AND
CHARGE OUT RATE SURVEY
National Report
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:
1%
3%
1%
14%
14%
1 staff
2-5 staff
6-10 staff
11-25 staff
26-50 staff
18%
51-100 staff
49%
Master Electricians Australia
101-200 staff
2015 Industry Benchmark and Charge Out Rate Survey - National
1
AGE GROUP
The percentage of respondents by age group is as follows:
1%
21%
21%
Under 25
26-35
36-45
46-55
Over 56
30%
27%
LENGTH OF BUSINESS OPERATION - NATIONAL
The percentage of respondents by length of business operation is as follows:
3.1%
20.9%
Less than 12 months
1 - 5 years
53.5%
6 - 10 years
22.6%
Master Electricians Australia
Over 10 years
2015 Industry Benchmark and Charge Out Rate Survey - National
2
MEMBERSHIP TENURE
The percentage of respondents by membership tenure is as follows:
12%
27%
Less than 12 months
1 - 5 years
6 - 10 years
17%
Over 10 years
45%
MEMBERSHIP SERVICES
The percentage of respondents who are Accredited Master Electricians is as follows:
38.0%
Yes
No
62.0%
Master Electricians Australia
2015 Industry Benchmark and Charge Out Rate Survey - National
3
BUSINESS LOCATION
The percentage of respondents located in a metro or regional area is as follows:
Metro
45.6%
54.4%
Master Electricians Australia
Regional
2015 Industry Benchmark and Charge Out Rate Survey - National
4
TYPE OF WORK
60%
50%
Major Construction
Solar
Power Poles
40%
30%
20%
10%
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
70%
Service/Maintenance
80%
Industrial
Small/Medium Construction
90%
Domestic
Commercial
The percentage of respondents operating in the following types of work is:
0%
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
Master Electricians Australia
2015 Industry Benchmark and Charge Out Rate Survey - National
5
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:
70%
66%
60%
Industry average
50%
Customer expectations
40%
30%
29%
32%
Overheads
35%
29%
Wages
31%
Profit margin
Calculated over expenses
18%
20%
All of the above
10%
0%
CHARGE PER HOUR OR QUOTE PER JOB
The percentage of respondents who charge by the hour or quote per job is:
9.6%
3.1%
Charge per hour
Quote per job
Both
87.4%
Master Electricians Australia
2015 Industry Benchmark and Charge Out Rate Survey - National
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IDENTIFYING CHARGE OUT RATES TO CUSTOMERS
The percentage of respondents who identify their charge out rate to their customers is:
31.7%
Identify when quoting
34.1%
Identify when
invoicing
Don't identify
5.9%
On request only
28.3%
SERVICE FEES
The percentage of respondents who charge a service fee, in addition to hourly rates is:
Don't charge a
service fee
15.6%
Service fee
between $1-$25
7.6%
Service fee
between $26-$50
12.2%
61.5%
3.1%
Master Electricians Australia
Service fee
between $51-$70
Service fee over
$70
2015 Industry Benchmark and Charge Out Rate Survey - National
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TRAVELLING TIME
The percentage of respondents who charge an additional fee for travelling time is:
9.9%
Don't charge an additional
travelling time fee
8.9%
40.1%
Charge at a flat rate
Charge at a normal hourly
rate
30.9%
Charge per kilometre
10.3%
Other (please specify)
LOADING FOR AFTER HOURS AND EMERGENCY CALLOUTS
The percentage of respondents who charge an additional fee for after hours or emergency callouts
is:
21.3%
Don't charge an
additional fee
10-20% increase
31.3%
21-30% increase
13.1%
31-40% increase
11.9%
41-50% increase
15.7%
6.7%
Master Electricians Australia
50%+ increase
2015 Industry Benchmark and Charge Out Rate Survey - National
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EXPENDITURE
The percentage of respondents whose expenditure on the following areas has changed compared
to 12 months ago is:
45%
40%
35%
30%
Less
Same
25%
+10%
20%
+25%
+50%
15%
100%+
10%
5%
0%
Materials
Labour
Overheads
AVERAGE MARK UP % ON TRADE PRICE MATERIALS
Respondents indicated the following mark up percentage on the trade price of materials:
1.4%
1.7%
2.7%
13.1%
No mark-up
21.3%
5-10%
11-20%
21-30%
26.5%
31-50%
51-80%
33.3%
Master Electricians Australia
100%+
2015 Industry Benchmark and Charge Out Rate Survey - National
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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
1 Year
Apprentice
2 Year
Apprentice
3 Year
Apprentice
4 Year
Apprentice
Team Apprentice+
Tradesperson
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
Master Electricians Australia
st
nd
rd
th
2015 Industry Benchmark and Charge Out Rate Survey - National
10
Admin/
Clerical
Worker
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:
Domestic
New Residential
rd
th
Supervisor
/Manager
Trades
Person
Trade
Assistant
1st Year
Apprenti
ce
2 Year
Apprenti
ce
3 Year
Apprentice
4 Year
Apprentice
Team Apprentice
+
Tradespers
on
Admin/Clerical
Worker
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
nd
rd
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
Trades
Person
Trade
Assistant
Sole Trader Supervisor
/Partner
/Manager
Commercial
nd
Sole
Trader
/Partner
1st Year
2 Year
3 Year
Apprentice Apprentice Apprentice
nd
rd
th
4 Year
Apprentice
th
1st Year
2 Year
3 Year
4 Year
Apprentice Apprentice Apprentice Apprentice
Team Admin/Clerical
Apprentice+
Worker
Tradesperson
Team Admin/Clerical
Apprentice+
Worker
Tradesperson
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
Master Electricians Australia
2015 Industry Benchmark and Charge Out Rate Survey - National
11
Sole Trader Supervisor
/Partner
/Manager
Construction
nd
rd
th
1st Year
2 Year
3 Year
4 Year
Apprentice Apprentice Apprentice Apprentice
Team Admin/Clerical
Apprentice+
Worker
Tradesperson
$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
Trades
Person
Trade
Assistant
nd
rd
th
1st Year
2 Year
3 Year
4 Year
Apprentice Apprentice Apprentice Apprentice
Team Admin/Clerical
Apprentice+
Worker
Tradesperson
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
Trades
Person
Trade
Assistant
nd
rd
th
Sole Trader Supervisor
/Partner
/Manager
Air Conditioning
& Refrigeration
Trade
Assistant
2013
Sole Trader Supervisor
/Partner
/Manager
Industrial
Maintenance
Trades
Person
1st Year
2 Year
3 Year
4 Year
Apprentice Apprentice Apprentice Apprentice
Team Admin/Clerical
Apprentice+
Worker
Tradesperson
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
Master Electricians Australia
2015 Industry Benchmark and Charge Out Rate Survey - National
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Sole Trader Supervisor
/Partner
/Manager
Data &
Communications
Trade
Assistant
nd
rd
th
1st Year
2 Year
3 Year
4 Year
Apprentice Apprentice Apprentice Apprentice
Team Admin/Clerical
Apprentice+
Worker
Tradesperson
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
Trades
Person
Trade
Assistant
nd
rd
th
Sole Trader Supervisor
/Partner
/Manager
Appliance
Trades
Person
1st Year
2 Year
3 Year
4 Year
Apprentice Apprentice Apprentice Apprentice
Team Admin/Clerical
Apprentice+
Worker
Tradesperson
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
Master Electricians Australia
2015 Industry Benchmark and Charge Out Rate Survey - National
13
Part 3 – Training and Challenges
TRAINING IMPORTANCE
Respondents indicated the following levels of importance to training priorities:
Toolbox talks / training
Refresher training
Very Unimportant
Energy efficiency training
Unimportant
Important
Business skills training
Very Important
Post apprentice training
Apprentice training
0% 10% 20% 30% 40% 50% 60% 70%
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:
5
4.5
4
3.5
3
2.5
2015
2
2013
1.5
1
0.5
0
Apprentice
training
Post
apprentice
training
Master Electricians Australia
Business
training
Energy
efficiency
training
Refresher
training
Toolbox
talks/training
2015 Industry Benchmark and Charge Out Rate Survey - National
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BUSINESS CHALLENGES
Respondents indicated the level of importance to the following business challenges over the
next 12 months:
Cost of financing / borrowing
Energy efficiency
Energy retailer issues
Construction industry…
Cost of fuel
Very
Unimportant
Cost of electricity
Regulatory impact
Unimportant
Skills shortage
Economic conditions
Finding clients
Neutral
Transportation costs
Cash flow
Important
Work health and safety
Workplace relations issues
Debtor management
Very Important
Controlling finances
Quality of suppliers
Competition
0%
Master Electricians Australia
20%
40%
60%
80%
100%
2015 Industry Benchmark and Charge Out Rate Survey - National
15
Part 4 – Technology
USE OF TECHNOLOGY
Respondents indicated they utilise technology in the following ways:
3.96%
Field staff are provided with tablets /
smartphones to undertake work
6.10%
Field staff are required to have
tablets / smartphones to undertake
work
Only office staff utilise technology
for work
19.51%
55.79%
We are strictly paper based
14.63%
Other
WEBSITE
The percentage of respondents with a website is as follows:
41.6%
Yes
No
58.4%
Master Electricians Australia
2015 Industry Benchmark and Charge Out Rate Survey - National
16