648 new electricians companies formed this month

Why so many electrician companies are forming

Electrical work remains one of the most reliable trades to build a business around, which helps explain the steady flow of new companies in the sector. Demand is broad and recurring: domestic rewires, fault-finding, EV charger installations, solar and battery storage, commercial fit-outs, and the growing volume of inspection and testing work tied to landlord obligations. Many founders are experienced electricians moving from employment or subcontracting to running their own limited company, attracted by higher day rates, control over their workload, and the tax efficiency a company structure can offer over sole-trader status.

Start-up costs are relatively modest compared with many trades. Beyond tools, a van and basic insurance, the main outlay is usually competent-person scheme registration and ongoing certification. Founders typically budget for public liability insurance, calibrated test equipment and professional indemnity cover where they issue certificates. Crucially, electrical work in dwellings is governed by Part P of the Building Regulations, and most electricians register with a scheme such as NICEIC, NAPIT or ELECSA so they can self-certify notifiable work rather than involving building control each time. Qualifications to the current BS 7671 wiring regulations (the 18th Edition) and an EPA-assessed apprenticeship or equivalent are effectively expected by clients and schemes. Anyone hiring staff or using employees on site also takes on Health and Safety Executive duties.

A high formation rate in this sector usually signals confident underlying demand rather than speculation. The push toward electrification, heat pumps, renewables and tighter rental safety standards (including mandatory five-yearly EICR checks for let properties in England) creates a long pipeline of work, and a buoyant construction and retrofit market encourages skilled tradespeople to set up on their own. It can also reflect a fragmented market with low barriers to entry, where many one- and two-person firms coexist.

Newly formed electrical businesses are valuable contacts for a wide range of suppliers and service providers. Wholesalers and tool merchants, van leasing and fleet insurers, accountants and bookkeepers, trade insurance brokers, certification software and job-management platforms, and B2B marketing services all target firms at this early, high-spend stage. Reaching them while they are choosing suppliers and building routines is often when commercial relationships prove most durable.