Why relationships matter more when markets soften

With 40 years of experience behind it, JM Electrical Company has seen its share of market shifts. CEO and principal Matthew Guarracino shares how the Massachusetts-based company continues to adapt and grow through changing conditions, drawing on lessons learned from past cycles. He also offers practical insight into what’s helping the business stay steady and competitive today.

—Interview by Margot Lester, edited by Bianca Prieto

What did you learn last year that you’re acting on this year?  

Look, we already knew this, but 2025 really hammered it home: relationships matter. Having strong partnerships isn't just nice to have; it's absolutely imperative to future success, especially when the market softens a bit. When things are busy, it's easy to get lulled into this false sense of security that the work will just keep rolling in. But when the tide goes out, the people who continue to do well are the ones who've been focused on their clients all along. That's what we're doubling down on in 2026. 

How are you feeling as we start the year? 

We always kick off a new year feeling optimistic and excited about what's ahead, and 2026 is no different. We've got great partners and a dedicated team that's proven they can deliver year after year. The market conditions are still pretty favorable overall. If we see some adjustments at the macro level—with things like interest rates coming down or shifts in government policy—I think things could really open up even more this year. There's a lot of potential out there. 

What's your most pressing business concern at the moment? 

Right now, we're really focused on seeking out the right opportunities that will continue to make us successful. We're constantly working to refine our services so we're offering the best possible delivery for our clients. It's about staying ahead of the curve and making sure we're positioned to deliver our services with the highest quality. The market's always changing, so we've got to keep evolving with it. 

Is AI part of your strategy to stay ahead of the curve? 

Like many companies, we're just scratching the surface and figuring out how it can best benefit us. In 2025, we looked at several AI solutions and adopted a few that have already shown some real benefits. In 2026, we're looking forward to taking a deeper dive by really exploring how AI can help us cross-functionally throughout the company. It's exciting stuff, but we're being thoughtful about how we integrate it.

What's one secret to your company's longevity?

We're celebrating our 40th year, which is a huge milestone for us. Over those four decades, we've seen plenty of market changes with ups, downs and everything in between. What's carried us through? Continuing to focus on people and working collectively as a team. That's a successful formula in every kind of market—and it's what will keep us moving forward. 

Any other advice for building a sustainable enterprise? 

Rely on your internal historical data to guide your company. The reality is, none of us can solve the macroeconomic challenges ourselves or just within our own businesses. Listen to what's going on, but focus more on your own data to make smart business decisions. Often, history is the best predictor of future performance.

Read more about how using AI can boost your productivity.

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The Level is curated and written by Margot Lester and edited by Bianca Prieto.