industry benchmark survey including charge out rates 2020

1

Industry Benchmark Survey including Charge Out Rates 2020 National Report

This report contains historical data, allowing you to view industry trends for 2020 and earlier (where data is available). This

includes charge out rates, service fees, travelling fees and mark-up.

Data has been aggregated and all individual responses have been de-identified. Please note contractors must set their own

prices, Master Electricians Australia does not authorise the data or provide a recommended pricing schedule.

The following report provides an overview of the results of a benchmarking survey undertaken by Master Electricians Australia

in early 2021 covering more than 600 responses.

Executive Summary

Business Profile

Of survey respondents, there has been an increase in the business categories of 2-5 staff (+3%) and 6-10 staff (+3%) compared

to the 2019 Industry Benchmark Survey.

The most common types of work continues to be Domestic, Commercial and Service/Maintenance, while the proportion of

respondents working in Security (domestic) has seen a 12% increase and Refrigeration by 20% compared to 2019.

Charges and Fees

Profit margins, wages and overheads remain the main factors for determining charge out rates. Expenditure increase on

materials and overheads for most respondents continues to grow on average by 10%. While Labour expenditure has either

stayed the same or decreased in expenditure for 48% of respondents.

Across almost all sectors, there has been an increase in charge out rates for Sole Traders, Supervisors/Managers and

Tradespersons. However, Trade Assistants, Apprentices and Administration/Clerical staff have seen a decline in charge out rates.

Industrial Maintenance has seen the highest percentage growth, by 2.5% on average compared to data collected in 2019. By job

type, Sole Traders have seen the highest increase, by 4.5%.

Business Challenges

For the coming 12 months, despite the impacts of COVID-19, respondents ranked Safety as the most important challenge for the

2nd year in a row.

Economic Conditions has also seen an increase in importance, moving from 6th to 5th along with Skills Shortage moving to the 8th

most important challenge. Beyond this, the relative importance of categories has remained consistent since 2019, with Cash

Flow, Controlling Finances and Debtor management still key business challenges.

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Contents Industry Benchmark Survey including Charge Out Rates 2020 National Report ................................................................................ 1

Executive Summary ............................................................................................................................................................................. 1

Part 1 – Business Profile ...................................................................................................................................................................... 3

Company Size ................................................................................................................................................................................. 3

Business Location ........................................................................................................................................................................... 3

Length of Business Operation ......................................................................................................................................................... 3

Type of Work .................................................................................................................................................................................. 3

Part Two – Charges and Fees .............................................................................................................................................................. 4

Charge per Hour or Quote per Job ................................................................................................................................................. 5

Identifying Charge Out Rates to Customers ................................................................................................................................... 5

Service Fees .................................................................................................................................................................................... 5

Travelling Time ............................................................................................................................................................................... 5

Loading for After Hours and Emergency Callout ............................................................................................................................ 6

Average Mark Up % on Trade Price Materials ................................................................................................................................ 6

Expenditure .................................................................................................................................................................................... 7

Charge Out Rates ................................................................................................................................................................................ 8

Part Three – Business Challenges ..................................................................................................................................................... 10

Appendix One – Charge Out Rates By Work Type ............................................................................................................................ 11

Appendix Two – Charge Out Rates By Job Classification .................................................................................................................. 14

3

0

100

200

300

400

500

600

22%

48%

16%

10%

3% 1%

1 Staff

2 - 5 Staff

6 - 10 Staff

11 - 25 Staff

26-50 Staff

51-100 Staff

44%

36%

20%Metro

Regional

Both regional andmetro

Part 1 – Business Profile COMPANY SIZE BUSINESS LOCATION

The percentage of respondents by business size is as follows:

The percentage of respondents located in a metro or regional area is as fol lows:

• The proportion of respondents who identified they are sole operators has decreased by 2% since 2019. This has been reflected in a proportionate increase in 2-5 (+3%), 6-10 (3%) staff businesses.

• Respondents location continues to be relatively evenly distributed between metro and regional.

• The proportion of respondents who have been in operation for more than 10 years decreased by 11% from 2019. This has reflected growth in the categories of under 12 months (+3%) 1-5 years (+4%) and 6-10 years (+4%).

LENGTH OF BUSINESS OPERATION The percentage of respondents by length of business operation is as fol lows:

TYPE OF WORK The percentage of respondents operating in the fol lowing types of work is:

• Domestic, Commercial, Service/Maintenance, Small/Medium Construction, and Industrial remain the most common

types of work undertaken.

• Security (domestic) has seen a 12% growth, and Refrigeration a 20% compared to the 2019 survey.

5%

24%

18%53%

Under 12 months

1 - 5 years

6 - 10 years

Over 10 years

4

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

VeryImportant

Important SomewhatImportant

LowImportance

NotImportant

Customers Expectations

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

VeryImportant


LowImportance

NotImportant

Overheads

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

VeryImportant


LowImportance

NotImportant

Wages

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

VeryImportant


LowImportance

NotImportant

Profit Margin

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

VeryImportant


LowImportance

NotImportant

Calculated Over expenses

0.00%

10.00%

20.00%

30.00%

40.00%

VeryImportant


LowImportance

NotImportant

Competitor Pricing

Part Two – Charges and Fees Respondents identified the level of importance of the six fol lowing factors as below:

▪ There appears to be limited importance in competitor pricing when

determining charges and fees.

▪ The number of respondents who listed Profit Margins as very important

fell by 5%. While the number who listed Calculated Over Expenses as Very

Important or Important fell be 10% since 2019.

5

46%

41%

12%

1%

Hourly Rate

Quote per job

Charge by point

Other

9%

33%

3%28%

27%No

On request only

Other (please specify)

Yes, when invoicing

Yes, when quoting

48%

15%2%

10%

9%

16% No

Varies

Yes, $1-$25

Yes, $26-$50

Yes, $51-$70

Yes, Over $70

35%

16%8%

29%

5%7%

No

Varies

Yes, flat rate

Yes, normal hourlyrate

Yes, other - pleasespecify

CHARGE PER HOUR OR QUOTE PER JOB IDENTIFYING CHARGE OUT RATES TO CUSTOMERS The percentage of respondents who charge by the hour or quote per job is:

The percentage of respondents who identify their charge out rate to their customers is:

• 73% of respondents don’t identify their charge out rate to customers when quoting (33% of these will if requested).

• There has been a 2% increase in the proportion of respondents who quote per job since 2019

SERVICE FEES TRAVELLING TIME The percentage of respondents who charge a service fee, in addition to hourly rates is :

The percentage of respondents who charge an additional fee for travell ing time is:

• In the 2020 survey 48% of respondents did not charge a service fee compared to 43% in 2019.

• 65% of respondents choose to charge some form of additional fee based on their travel time. This has remained largely

consistent with 2019 data.

6

16%

24%

8%

12%

7%

10%

23%No

Varies

Yes, 10-20%

Yes, 21-30%

Yes, 31-40%

Yes, 41-50%

Yes, 50%+

1%

8%

25%

37%

23%

5%

1%

Nil

1-10%

11-20%

21-30%

31-50%

51-80%

100%+

LOADING FOR AFTER HOURS AND EMERGENCY CALLOUTS AVERAGE MARK UP % ON TRADE PRICE MATERIALS

The percentage of respondents who charge an additional fee for after hours or emergency cal louts is:

Respondents indicated the fol lowing mark up percentage on the trade price of materials:

• There has been a 2% increase in respondents who do not charge for emergency callouts. Excluding the option of ‘varies’

the 2nd most common fee ranged between 21-30%, with the most common being more than +50% for emergency call

outs.

• There has been an increase in Average mark ups on trade price materials since 2019. With respondents shifting from

mark ups of 1-10% (-2%) and 11-20% (-4%) to 23-30% (+4%) and 31-50% (+3%).

7

0%

5%

10%

15%

20%

25%

30%

35%

Less No change 10% 25% 50% 100%+

Materials

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less Nochange

10% 25% 50% 100%+

Labour

0%

10%

20%

30%

40%

50%

Less Nochange

10% 25% 50% 100%+

Overheads

EXPENDITURE The percentage of respondents whose expenditure on the fol lowing areas has changed compared to 12 months ago is:

• Key changes in each category are:

o There has been a 5.4% increase in respondents who have spent less on materials.

o 52% of respondents have reported no change, or a decrease in their labour expenditure. This figure has increased by 4.4% compared to 2019.

o 43.4% of respondents have reported no change, or a decrease in overheads. This figure is an 8.1% increase from 2019 data.

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Charge Out Rates Note: All prices are inclusive of GST.

2020 Sole Trader / Partner

Supervisor / Manager Tradesperson

Trades Assistant

1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice

4th Year Apprentice

Team / Apprentice + Trades

Administration / Clerical

Domestic $96.02 $107.30 $96.03 $61.70 $46.96 $54.38 $59.86 $69.57 $150.58 $57.35

New Residential $96.02 $100.64 $92.60 $61.00 $45.93 $54.13 $58.91 $67.93 $150.50 $56.55

Commercial $105.06 $112.26 $98.75 $62.71 $49.41 $55.72 $60.99 $70.03 $150.11 $63.17

Construction $98.04 $110.60 $95.75 $65.16 $50.04 $56.45 $61.03 $69.40 $147.54 $61.85

Industrial Maintenance $104.04 $115.75 $100.29 $66.59 $50.41 $59.43 $64.87 $73.42 $150.13 $66.26

Air-conditioning and Refrigeration $97.71 $104.58 $100.04 $60.58 $48.45 $54.65 $59.28 $67.50 $150.06 $56.13

Data and Communications $100.85 $108.67 $99.43 $66.13 $46.86 $53.57 $58.25 $68.64 $150.60 $65.26

Appliance $96.22 $98.35 $96.53 $60.17 $44.54 $51.40 $56.75 $64.93 $142.58 $54.00

% Change (compared to 2019)

Sole Trader / Partner


Trades Assistant

1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice

4th Year Apprentice



Domestic 1.54% 4.46% 3.00% -3.72% 1.01% -2.27% -3.42% -1.63% 3.58% -10.61%

New Residential 6.23% 0.42% 1.39% -0.06% 0.50% -1.47% -4.30% -6.81% 5.20% -12.62%

Commercial 8.46% 5.13% 3.81% -6.31% 1.48% -3.49% -2.45% -3.03% 4.17% -0.40%

Construction 5.11% 7.88% 2.67% -2.95% 3.82% -2.44% -3.19% -3.27% 9.05% -4.28%

Industrial Maintenance 6.33% 4.68% 2.61% 1.13% 4.34% 2.80% 1.80% -0.43% 2.13% -0.28%

Airconditioning and Refrigeration 1.25% -0.89% 1.42% -5.98% -2.15% -10.73% -10.47% -15.63% -2.56% -11.02%

Data and Communications 5.12% 0.25% 2.35% 2.92% -3.34% -8.78% -8.21% -7.41% -0.74% -3.63%

Appliance 3.70% 3.60% 1.99% -4.50% -4.67% -8.21% -11.60% -15.62% 0.85% -2.92%

Legend:

- Increase - Decrease

9

2019 Pricing Sole Trader / Partner


Trades Assistant

1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice

4th Year Apprentice



Domestic $94.56 $102.72 $93.23 $64.08 $46.49 $55.64 $61.97 $70.72 $145.38 $64.16

New Residential $90.39 $100.22 $91.33 $61.04 $45.70 $54.94 $61.56 $72.89 $143.07 $64.71

Commercial $96.86 $106.78 $95.12 $66.94 $48.69 $57.73 $62.52 $72.22 $144.11 $63.42

Construction $93.28 $102.52 $93.27 $67.14 $48.20 $57.86 $63.04 $71.75 $135.29 $64.61

Industrial Maintenance $97.85 $110.57 $97.74 $65.84 $48.31 $57.81 $63.72 $73.74 $147.00 $66.44

Airconditioning and Refrigeration $96.50 $105.52 $98.65 $64.44 $49.52 $61.22 $66.21 $80.00 $154.00 $63.08

Data and Communications $95.93 $108.39 $97.14 $64.25 $48.48 $58.73 $63.46 $74.13 $151.72 $67.72

Appliance $92.78 $94.93 $94.65 $63.00 $46.72 $56.00 $64.20 $76.94 $141.38 $55.63

- Across almost all sectors, there has been an increase in charge out rates for Sole Traders, Supervisors/Managers and Tradespersons. However, Trade Assistants, Apprentices

and Administration/Clerical staff have seen a decline in charge out rates.

- Industrial Maintenance has seen the highest percentage growth, by 2.5% on average compared to data collected in 2019. By job type, Sole Traders have seen the highest

increase, by 4.5%.

10

Finding apprentices

Cost of financing / borrowing

Cost of electricity

Energy efficiency

Cost of fuel

Transport costs

Competition

Energy retailer issues

Construction industry activity

Regulatory impact

Workplace relations issues

Skills shortage

Finding clients

Quality of suppliers

Economic conditions

Debtor management

Controlling finances

Cash flow

Safety

Business Challenging for coming 12 months

Very Important Important Somewhat Important Low Importance Not Important

Part Three – Business Challenges

Respondents have indicated the level of importance of business challenges over the next 12 months.

• Despite growing importance of economic conditions (+1.63% growth compared to 2019 for Very Important and Important categories), Safety remains the most

listed challenge for the coming 12 months, with 92% rating it as either Important or Very Important. The proportion of respondents who rated Skills Shortage as

either Very Important or Important grew by 3.54%.

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Appendix One – Charge Out Rates By Work Type Work Type: Air-conditioning and Refrigeration


Supervisor / Manager

Tradesperson Trades Assistant

1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice

4th Year Apprentice Team / Apprentice + Trades


2019 $96.50 $105.52 $98.65 $64.44 $49.52 $61.22 $66.21 $80.00 $154.00 $63.08

2020 $97.71 $104.58 $100.04 $60.58 $48.45 $54.65 $59.28 $67.50 $150.06 $56.13

Change 1.25% -0.89% 1.42% -5.98% -2.15% -10.73% -10.47% -15.63% -2.56% -11.02%

Work Type: Appliance




1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice



2019 $92.78 $94.93 $94.65 $63.00 $46.72 $56.00 $64.20 $76.94 $141.38 $55.63

2020 $96.22 $98.35 $96.53 $60.17 $44.54 $51.40 $56.75 $64.93 $142.58 $54.00

Change 3.70% 3.60% 1.99% -4.50% -4.67% -8.21% -11.60% -15.62% 0.85% -2.92%

Work Type: Commercial




1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice



2019 $96.86 $106.78 $95.12 $66.94 $48.69 $57.73 $62.52 $72.22 $144.11 $63.42

2020 $105.06 $112.26 $98.75 $62.71 $49.41 $55.72 $60.99 $70.03 $150.11 $63.17

Change 8.46% 5.13% 3.81% -6.31% 1.48% -3.49% -2.45% -3.03% 4.17% -0.40%

12

Work Type: Construction




1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice



2019 $93.28 $102.52 $93.27 $67.14 $48.20 $57.86 $63.04 $71.75 $135.29 $64.61

2020 $98.04 $110.60 $95.75 $65.16 $50.04 $56.45 $61.03 $69.40 $147.54 $61.85

Change 5.11% 7.88% 2.67% -2.95% 3.82% -2.44% -3.19% -3.27% 9.05% -4.28%

Work Type: Data and Communications




1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice



2019 $95.93 $108.39 $97.14 $64.25 $48.48 $58.73 $63.46 $74.13 $151.72 $67.72

2020 $100.85 $108.67 $99.43 $66.13 $46.86 $53.57 $58.25 $68.64 $150.60 $65.26

Change 5.12% 0.25% 2.35% 2.92% -3.34% -8.78% -8.21% -7.41% -0.74% -3.63%

Work Type: Domestic




1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice



2019 $94.56 $102.72 $93.23 $64.08 $46.49 $55.64 $61.97 $70.72 $145.38 $64.16

2020 $96.02 $107.30 $96.03 $61.70 $46.96 $54.38 $59.86 $69.57 $150.58 $57.35

Change 1.54% 4.46% 3.00% -3.72% 1.01% -2.27% -3.42% -1.63% 3.58% -10.61%

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Work Type: Industrial Maintenance




1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice



2019 $97.85 $110.57 $97.74 $65.84 $48.31 $57.81 $63.72 $73.74 $147.00 $66.44

2020 $104.04 $115.75 $100.29 $66.59 $50.41 $59.43 $64.87 $73.42 $150.13 $66.26

Change 6.33% 4.68% 2.61% 1.13% 4.34% 2.80% 1.80% -0.43% 2.13% -0.28%




1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice



Work Type: New Residential




1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice



2019 $90.39 $100.22 $91.33 $61.04 $45.70 $54.94 $61.56 $72.89 $143.07 $64.71

2020 $96.02 $100.64 $92.60 $61.00 $45.93 $54.13 $58.91 $67.93 $150.50 $56.55

Change 6.23% 0.42% 1.39% -0.06% 0.50% -1.47% -4.30% -6.81% 5.20% -12.62%

Work Type: All Work Types




1st Year Apprentice

2nd Year Apprentice

3rd Year Apprentice



2019 $94.96 $104.55 $94.73 $65.23 $47.68 $56.66 $63.21 $73.49 $144.44 $63.17

2020 $99.67 $108.75 $97.32 $63.14 $48.10 $55.32 $60.34 $69.40 $149.57 $60.96

Change 4.96% 4.02% 2.73% -3.20% 0.89% -2.37% -4.55% -5.56% 3.55% -3.50%

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Appendix Two – Charge Out Rates By Job Classification Role Type: 1st Year Apprentice

Domestic New Residential Commercial Construction Industrial Maintenance Airconditioning and Refrigeration Data and Communications Appliance

2019 $46.49 $45.70 $48.69 $48.20 $48.31 $49.52 $48.48 $46.72

2020 $46.96 $45.93 $49.41 $50.04 $50.41 $48.45 $46.86 $44.54

Change 1.01% 0.50% 1.48% 3.82% 4.34% -2.15% -3.34% -4.67%

Role Type: 2nd Year Apprentice


2019 $55.64 $54.94 $57.73 $57.86 $57.81 $61.22 $58.73 $56.00

2020 $54.38 $54.13 $55.72 $56.45 $59.43 $54.65 $53.57 $51.40

Change -2.27% -1.47% -3.49% -2.44% 2.80% -10.73% -8.78% -8.21%

Role Type: 3rd Year Apprentice


2019 $61.97 $61.56 $62.52 $63.04 $63.72 $66.21 $63.46 $64.20

2020 $59.86 $58.91 $60.99 $61.03 $64.87 $59.28 $58.25 $56.75

Change -3.42% -4.30% -2.45% -3.19% 1.80% -10.47% -8.21% -11.60%

15

Role Type: 4th Year Apprentice


2019 $70.72 $72.89 $72.22 $71.75 $73.74 $80.00 $74.13 $76.94

2020 $69.57 $67.93 $70.03 $69.40 $73.42 $67.50 $68.64 $64.93

Change -1.63% -6.81% -3.03% -3.27% -0.43% -15.63% -7.41% -15.62%

Role Type: Administration / Clerical


2019 $64.16 $64.71 $63.42 $64.61 $66.44 $63.08 $67.72 $55.63

2020 $57.35 $56.55 $63.17 $61.85 $66.26 $56.13 $65.26 $54.00

Change -10.61% -12.62% -0.40% -4.28% -0.28% -11.02% -3.63% -2.92%

Role Type: Sole Trader / Partner


2019 $94.56 $90.39 $96.86 $93.28 $97.85 $96.50 $95.93 $92.78

2020 $96.02 $96.02 $105.06 $98.04 $104.04 $97.71 $100.85 $96.22

Change 1.54% 6.23% 8.46% 5.11% 6.33% 1.25% 5.12% 3.70%

16

Role Type: Supervisor / Manager


2019 $102.72 $100.22 $106.78 $102.52 $110.57 $105.52 $108.39 $94.93

2020 $107.30 $100.64 $112.26 $110.60 $115.75 $104.58 $108.67 $98.35

Change 4.46% 0.42% 5.13% 7.88% 4.68% -0.89% 0.25% 3.60%

Role Type: Team / Apprentice + Trades


2019 $145.38 $143.07 $144.11 $135.29 $147.00 $154.00 $151.72 $141.38

2020 $150.58 $150.50 $150.11 $147.54 $150.13 $150.06 $150.60 $142.58

Change 3.58% 5.20% 4.17% 9.05% 2.13% -2.56% -0.74% 0.85%

Role Type:

Trades Assistant


2019 $64.08 $61.04 $66.94 $67.14 $65.84 $64.44 $64.25 $63.00

2020 $61.70 $61.00 $62.71 $65.16 $66.59 $60.58 $66.13 $60.17

Change -3.72% -0.06% -6.31% -2.95% 1.13% -5.98% 2.92% -4.50%

Role Type: Tradesperson


2019 $93.23 $91.33 $95.12 $93.27 $97.74 $98.65 $97.14 $94.65

2020 $96.03 $92.60 $98.75 $95.75 $100.29 $100.04 $99.43 $96.53

Change 3.00% 1.39% 3.81% 2.67% 2.61% 1.42% 2.35% 1.99%

industry benchmark survey including charge out rates 2020

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