ELECTRICAL: THE 2026 MATERIAL SQUEEZE
Copper traded at $5.92 per pound in May 2026, up 24.75 percent year over year, with a 50 percent copper tariff in effect since August 2025 and a projected global deficit near 150,000 tons.
This page covers one problem. The full picture for this trade, including the other places margin leaks, is on the electrical operating system page.
WHERE THE MONEY GOES.
Copper traded at $5.92 per pound in May 2026, up 24.75 percent year over year, with a 50 percent copper tariff in effect since August 2025 and a projected global deficit near 150,000 tons. Switchgear is worse: small and mid-size contractors report panel lead times of 16 weeks or more, medium-voltage gear is effectively sold out through 2028 in many channels, and transformers quote around 128 weeks. A fixed-price bid signed today carries commodity and schedule risk the contract may not price.
THE COST, SOURCED.
OEMs now require 10 to 30 percent deposits to hold production slots. That deposit leaves the sub's account years before the equipment bills.
THE SAME PROBLEM, WRITTEN UP.
If you're not ordering electrical equipment 12 to 18 months before you mobilize the site, you're already behind.
Terrapin CG, 2026
Many GCs are still planning programmes as if electrical gear can be procured in 8 to 12 weeks. Part of your role as the electrical contractor is to educate the GC about supply realities, professionally, early, and in writing.
Electronate, 2026
THE NUMBER TO MEASURE IT AGAINST.
Electrical contractors run about % net profit at $1M to $5M, rising to roughly 12% at $5M to $10M. The CFOS target at $1M to $5M is11%, set at 10 percent before taxes or 3.5 points better than your trade's average at your revenue, whichever is higher. A problem like this one lives in the distance between those two figures rather than in a loss on any single job.
Gross margin over the same bands runs % to 27%, against a CFOS target of 11%.
THE SYSTEM THAT FIXES THIS.
The balance sheet figures a bank and a surety underwrite off.
