By Amy Florence Fischbach, Staff Writer, CEE News; and Michael J. Harrington, Managing Editor, CEE N
Jul 1, 2002 12:00 PM
The year 2001 may have been an odyssey of opportunity for some, but for most of the country's largest electrical-contracting firms, it turned into an economic oddity. For electrical contracting, it seemed the bigger the business, the bigger the financial woes.
The electrical-contractor Top 50 surveys for Electrical Wholesaling's sister publication CEE News came back full of phrases like “economic pressures,” “economic downturn,” and “continued recession.” The word contractors used most to describe business in 2001 was “flat.” The most popular word to forecast 2002 and beyond? “Flat” again.
Recession or not, some contractors found a way to profit and grow. Posting big gains in 2001 were Rosendin Electric Inc., San Jose, Calif.; Mass Electric Construction Co., Boston; and Morrow-Meadows Corp., Walnut, Calif. Capital Electric, Kansas City, and Fisk Electric, Houston, continued strong and steady. Fourth-ranked Quanta Services Inc., Houston, a contractor consolidator, reported a whopping 58 percent increase.
Contracting consolidators, those giant national firms that rose up in the late 1990s, took the brunt of the bad economy in 2001. Integrated Electrical Services Inc., Encompass Services Corp. and Quanta Services Inc., all of Houston, are struggling with debt and sluggish markets. Meanwhile, the telecom division of Bracknell Corp., Minneapolis, filed for Chapter 11.
The four consolidators, formed from hundreds of local and regional electrical, telecom and mechanical businesses, acquired successful contractors and planned to standardize office procedures and product purchasing to maximize profits. But it simply hasn't happened. The consolidators cite reasons that range from overextension of capital to a collapsing telecom market. Some analysts believe that the contractor consolidation is failing because financial people run the companies — not electrical contractors, who understand construction's ebb and flow.
One shining exception to the corporate contractor conundrum has been EMCOR Group, Norwalk, Conn., which made Fortune magazine's most admired companies list. EMCOR reported flat sales and a flat 2002 outlook, but it remains the only publicly traded consolidator still turning a profit; at press time EMCOR's stock was trading at over $60 a share.
Encompass, like many companies, blames financial troubles on the collapse of its faltering telecom market, the tragic events of Sept. 11 and a general economic downturn. The company also predicts flat sales for 2002.
Things could even get worse for the consolidators, according to a report from Standard and Poor's. Encompass is trying to get through 2002 without violating its lending agreements, like it did in 2001; Integrated Electrical Systems and Encompass both had their credit ratings lowered early in 2002; and Quanta Services reportedly is in a power struggle with its biggest investor, UtiliCorp United Inc.
Power struggle or not, Quanta seems to be doing just fine. “We expect continued growth and demand for our services… though a continued economic downturn may lead to less demand,” said John Colson, Quanta CEO.
Perhaps the biggest surprise in this year's Top 50 report, is the top challenges. Last year, 59 percent of the survey respondents listed finding qualified personnel as the top challenge for 2001. This year, competitive bidding came in No. 1, beating the perennial-favorite contractor complaint — the skilled labor shortage.
The 50 largest contractors are listed two ways on the subsequent pages: by the region(s) in which they do business and by rank with key information. Check out your region(s) and then read the company capsules. You're sure to garner some valuable customer knowledge.
CONTRACTORS BY REGION
National
2001 Sales
Top 50 Rank
Integrated Electrical Services Inc.
$1,693,000,000
1
Encompass
$1,635,000,000
2
EMCOR Group
$1,371,000,000
3
Quanta Services Inc.,
$791,847,000
4
Henkels & McCoy Inc.
$683,633,000
5
MYR Group Inc.
$650,000,000
6
Cupertino Electric
$510,000,000
7
Bracknell Corp.
$632,000,000
8
Mass. Electric Construction Co.
$377,022,339
9
Sargent Electric Co.
$156,000,000
21
Constar International Inc.
$140,000,000
24
M.J. Electric
$138,000,000
25
EEI Holding Corp.
$88,000,000
37
New England
2001 Sales
Top 50 Rank
Wayne J. Griffin Electric Inc.
$111,733,000
30
*Another Player: E-J Electric Installation Co.
Middle Atlantic
2001 Sales
Top 50 Rank
Petrocelli Electric Co.
$170,000,000
18
E-J Electric Installation Co.
$111,200,000
31
O'Connell Electric Co.
$63,000,000
47
*Other Players: ERMCO Inc., Wayne J. Griffin Electric Inc. and Hatzel & Buehler Inc.
East North Central
2001 Sales
Top 50 Rank
Motor City Electric Co.
$162,150,000
19
GEM Industrial Inc.
NA
22
Aldridge Electric Inc.
$120,000,000
27
Kelso-Burnett Co.
$112,000,000
29
ERMCO Inc.
$68,000,000
43
Lake Erie Electric Inc.
$47,465,510
49
*Other Players: Sachs Electric Co., Sargent Electric Co., Guarantee Electrical Co., Inglett & Stubbs Inc., Wayne J. Griffin Electric Inc. and Hatzel & Buehler Inc.
West North Central
2001 Sales
Top 50 Rank
Sachs Electric Co.
$200,000,000
14
Guarantee Electrical Co.
$128,000,000
26
Capital Electric Construction Co. Inc.
$103,500,000
34
Commonwealth Electric Co.
$60,802,000
45
*Another Player: Inglett & Stubbs Inc.
South Atlantic
2001 Sales
Top 50 Rank
Inglett & Stubbs Inc.
$116,000,000
28
Aneco Inc.
NA
36
Miller Electric Co.
$84,000,000
38
Truland Systems Co.
$83,498,963
39
Cleveland Electric Co.
$83,000,000
40
Hatzel & Buehler Inc.
$63,960,000
46
Mona Electric Group Inc.
$52,000,000
48
Patrick Power Corp. (Driscoll Ltd.)
NA
50
*Other Players: Red Simpson Inc., Bergelectric Corp., Wayne J. Griffin Electric Inc., MMR Group Inc. and ERMCO Inc.
East South Central
*Players: Red Simpson Inc., Sargent Electric Co., Inglett & Stubbs Inc. and Wayne J. Griffin Electric Inc.
West South Central
2001 Sales
Top 50 Rank
Fisk Electric Co.
$290,000,000
12
Red Simpson Inc.
$197,000,000
15
The Newtron Group
$153,700,000
23
MMR Group Inc.
$104,000,000
33
Industrial Specialty Contractors LLC
$67,000,000
44
*Other Players: Amelco Corp. and Motor City Electric Co.
Mountain
2001 Sales
Top 50 Rank
Ludvik Electric Co.
$82,800,000
41
Cache Valley Electric Co.
$80,876,485
42
*Other Players: Rosendin Electric Inc., SASCO Group, Fisk Electric Co., Morrow-Meadows Corp., Amelco Corp., Bergelectric Corp., Helix Electric Co., Inglett & Stubbs Inc., Capital Electric Construction Co. Inc. and Commonwealth Electric Co.
Pacific
2001 Sales
Top 50 Rank
Rosendin Electric Inc.
$369,000,000
10
SASCO Group
NA
11
Morrow-Meadows Corp.
$201,268,140
13
Amelco Corp.
$183,000,000
16
Bergelectric Corp.
$180,018,401
17
Helix Electric Co.
$160,000,000
20
Oregon Electric Group
$108,702,000
32
Rex Moore Electrical Contractors
$101,000,000
35
*Another Player: Ludvik Electric Co.
* “Players” work in a given region but are headquartered elsewhere.
CONTRACTOR CAPSULE SUMMARIES
Integrated Electrical Services, Houston, Texas
2001 Sales. $1.693 billion
Behind the 2001 Numbers. Change in the economy and a contraction in construction spending.
Forecast for 2002. Expect sales to be down and a continued decrease due to the slow economy.
Employees. 13,700
Branch Offices. 170
Top Market Segments. Commercial, industrial and residential.
Behind the 2001 Numbers. Collapse of telecom industry and general economic downturn.
Forecast for 2002. Continued general economic softness and no recovery in telecom industry.
Employees. 31,000
Branch Offices. 80 electrical branches and 200 total branches in all major U.S. cities.
Services. The Electrical Technologies Group installs, maintains and upgrades the electrical systems of commercial and industrial facilities, including process controls, lighting and power, life-safety systems and energy management systems. The group also designs, installs, upgrades, maintains and repairs low-energy systems, including voice and data cabling, high-speed data network infrastructure systems, fiber optics, video, security and sound.
Top Market Segments. Commercial, industrial and residential.
Behind the 2001 Numbers. General economic downturn/slowdown. EMCOR's total sales decreased from $3.46 billion in 2000 to $3.42 billion in 2001. According to EMCOR's annual report, the decrease can be attributed to a sharp decline in telecommunications, which provided revenue growth in 2000.
Forecast for 2002. About the same as 2001 — Challenging with some opportunities.
Fast Facts. EMCOR, a network of 65 companies, provides mechanical and electrical construction and facilities services including planning, consulting and operations and maintenance.
Employees. 6,700
Branch Offices. More than 20 electrical branches in most major metropolitan cities throughout the United States and Canada.
Top Market Segments. Commercial, institutional and transportation.
Specialities. Design, integration, installation, start-up, operation and maintenance of systems for generation and distribution of electrical power, lighting systems, low-voltage systems and voice and data communications systems.
Company News. Early in 2002, EMCOR Group acquired a group of 19 companies, which are former subsidiaries of Comfort Systems U.S.A.
Recent Projects. New York Power Authority peaking plants.
Behind the 2001 Numbers. Sales were up about $290 million due to strong growth as a result of increased outsourcing and deregulation.
Forecast for 2002. Quanta expects continued growth and demand for its services throughout 2002.
Employees. 13,987
Branch Offices. More than 50 nationwide.
Top Market Segments. Installation, repair and maintenance of electric transmission lines and electric power distribution projects and design, construction and maintenance of substation projects.
Recent Projects. Replaced 37 miles of 345kV transmission lines for a New England client in less time than possible using traditional methods — a combination of energized services and bare-handed techniques.
Branch Offices. More than 80 offices from New England to Hawaii.
Top Market Segments. Commercial, industrial, institutional and security, power transmission and distribution system construction.
Recent Projects. The Bonneville Power Administration awarded Henkels & McCoy Inc. a contract for new 500 kV power transmission system segments and upgrade of some existing transmission lines, totaling about 155 miles. Later phases of the project have the potential to bring the total amount of transmission system constructed to about 800 miles.
New Leadership. In January 2002, Kenneth Rose, president and chief executive officer, was elected vice chairman and chief executive officer and T. Roderick Henkels, executive vice president and chief operating officer, was named president and chief operating officer.
Behind the 2001 Numbers. Economic slowdown affected commercial and industrial decreases and was offset by increases in power plant and transmission work.
Forecast for 2002. Zero growth due to general economic conditions in key markets and regulatory uncertainty in transmission and distribution markets.
Employees. 5,000 to 6,000
Branch Offices. 28 across the nation.
Top Market Segments. Transmission and distribution, power generation, commercial and industrial.
Recent Projects. TVA transmission, University of Colorado hospital, Sprint data center and ANP Bellingham Energy Project.
Fast Facts. Bracknell ranked fifth on last year's Top 50 list with revenues of $632.8 million but has lately fallen on hard times. The Ontario Securities Commission issued Bracknell a cease-trading order after the contractor failed to make statuatory filings.
Trouble With Telecom. Adesta Communications Inc., a nationwide developer of fiber-optic-based communication networks and a wholly-owned subsidiary of Bracknell, filed for Chapter 11 on Nov. 2. Bracknell made a significant investment in the telecommunications market to build national and city-scale telecom networks with the intent of leasing them out to carriers. When the telecom market collapsed, however, Bracknell was left with million-dollar debts from defunct providers and unfinished networks.
Projects. Bracknell's financial woes can also be linked to a Detroit airport construction project, which went overbudget. According to a report on www.sedar.com, delays and design changes caused the $1.2 billion terminal to be plagued by cost overruns. The extra costs worsened the problems with creditors; by the end of last July, Bracknell had $350 million in debt with $25 million due by the end of 2001.
Mass. Electric Construction Co., Boston, Mass.
2001 Sales. $377 million
Behind the 2001 Numbers. Significant increase in industrial and commercial work.
Forecast for 2002. A decrease is expected in industrial and commercial due to the slow economy.
Employees. 1,800
Branch Offices. None.
Top Market Segments. Transit, industrial and commercial.
Fast Facts. SASCO is the largest privately-held electrical and data contractor in the United States with eight offices on the West Coast extending from Southern California to the Northwest.
Branch Offices. San Francisco, Santa Clara, Vacaville, Newbury Park, Newport Beach and Sacramento, Calif.; Kapolei, Hawaii; Las Vegas, Nev.; and Woodinville and Seattle, Wash.
Specialties. Commercial/retail/hospitality, education, data centers, transportation, high-tech, sports/entertainment/gaming, financial, government/institutions, semiconductor and healthcare/biotech.
Top Market Segments. Power, datacom and design/build pre-construction services.
Forecast for 2002. 10 percent decrease due to the recession.
Employees. 2,500
Branch Offices. Houston, Austin, Dallas and San Antonio, Texas; Las Vegas; and New Orleans.
Top Market Segments. Commercial, government/public and industrial. Fisk Electric, which was recently acquired by Tyco, relies on telecom installation work for about 25 percent of its total revenue.
Behind the 2001 Numbers. Increased outsourcing by electrical utilities.
Forecast for 2002. Increase of 15%.
Employees. 2,000
Branch Offices. Austin, San Antonio, Beaumont, Harlingen, Freer, Sherman and Marshall, Texas; Tulsa, Okla.; Little Rock, Ark.; New Orleans, La.; and Melbourne, Fla.
Top Market Segments. Distribution, transmission and substation systems for electric utilities.
Recent Projects. Foundation preparation for 345kV transmission structure in south Texas.
Petrocelli Electric Co. Inc., Long Island City, N.Y.
2001 Sales. $170 million
Behind the 2001 Numbers. According to New York's Newsday, Petrocelli credits its revenue and employee growth to its expansion into a new building three years ago and a strong commercial real estate market.
Employees. 1,000
Top Market Segments. Power and data contracting.
Recent Projects. Besides maintaining New York City's lights, the company also installs electrical wiring and fiber-optic cable.
Motor City Electric Co., Detroit, Mich.
2001 Sales. $162.15 million
Behind the 2001 Numbers. Slowing economy and several large jobs completed in 2001.
Forecast for 2002. $150 million due to recession.
Employees. 500 to 1,000
Branch Offices. Detroit and Madison Heights, Mich.; Toledo, Ohio; Kokomo, Ind.; Fort Worth, Texas; and Windsor, Ontario.
Top Market Segments. Public works, commercial, network and systems integration and industrial.
Specialties. Motor City provides in-house engineering, procurement and electrical panel fabrication as well as 24-hour emergency service.
Services. Design-build work, electrical utility services, electrical emergency services, controls and automation systems, networking and communication systems, process engineering, panel fabrication, directional boring and excavation and selective general contracting.
Recent Projects. Motor City provided electrical construction of power, control and communication systems for Ford Field Stadium, Detroit's football stadium.
Behind the 2001 Numbers. Very active in the gas turbine power plant market.
Forecast for 2002. 2002 will be down by about 15 percent due to the soft power market.
Employees. 145
Branch Offices. East Chicago and Terra Haute, Ind.; and Birmingham, Ala.
Top Market Segments. Industrial, energy and communications services and commercial.
Recent Projects. Heinz Field (new Pittsburgh Steelers stadium), a power plant rebuild from a fire in central Pennsylvania, gas turbine projects for Mirant, Constellation, Reliant and Black and Veatch.
Fast Facts. GEM has established itself in the Midwest as a single-source industrial contractor. GEM direct-hires all major trades. Its core work force includes pipefitters, electricians, instrument technicians, linemen, ironworkers, boilermakers, millwrights, carpenters and laborers. The company has experience in modernization, new construction, maintenance services, plant relocation.
Market Segments. Automotive, metals manufacturing, food processing, petrochemical and power generation.
The Newtron Group, Baton Rouge, La.
2001 Sales. $153.7 million
Behind the 2001 Numbers. Increased power industry.
Forecast for 2002. Down due to power industry decrease.
Employees. 2,500
Branch Offices. Lake Charles, La.; Nederland and Houston, Texas.
Top Market Segment. Industrial
Recent Projects. Cement plant modernization, combined-cycle generating unit and refinery instrument modernization.
Top Market Segments. Industrial, utility and process controls and instrumentation.
Fast Facts. M. J. Electric Inc., a subsidiary of Infrasource (formerly Exelon Infrastructure Services), has more than 40 years of experience in the electrical construction market.
Recent Projects. Minnesota Power and Wisconsin Public Service selected M.J. Electric as the contractor for the “Power Up Wisconsin” 345 kV transmission line, which will run from the Weston Power Plant in Wausau, Wis., to the Arrowhead Substation in Duluth, Minn. M.J was also selected as the “Contractor Of Choice” for ComEd's transmission line projects.
Behind the 2001 Numbers. Experienced an increase in sales due to the clarification of its market strategy.
Forecast for 2002. Decrease of 10 percent due to the slowdown of the economy and overall market, which is not as strong as recent years.
Employees. 600
Branch Offices. Granite City, Ill.
Top Market Segments. Commercial, advanced technology and health care.
Recent Projects. In March 2001, Guarantee started working on the largest single electrical project in St. Louis history — a $24 million contract to power more than 1 million sqare feet of new office, training and data center space for A.G. Edwards. Guarantee has also worked on Sigma Aldrich Life Science, Renaissance Hotel and the St. Louis City Justice Center.
Company news. Guarantee Electrical celebrated its 100th anniversary in 2002. In 2001, the contractor implemented its succession plan with Chuck Oertli as chairman, Fred Oertli Jr. as vice chairman, Rick Oertli as CEO and Roger Oertli as COO.
Behind the 2001 Numbers. Selected as the electrical contractor of choice by general contractors and clients in New England and the Southeast.
Forecast for 2002. Expects a modest decrease in overall sales in 2002 due to the unstable economy, high unemployment rates and the fallout from the Sept. 11 terrorist attacks. However, the company continues to seek innovative solutions to this possible decrease by reaching into new market segments and diversifying the size of projects they bid.
Employees. 768
Branch Offices. Cary, N.C.; Pelham, Ala.; and Atlanta, Ga.
Top Market Segments. Commercial, industrial and educational.
Recent Projects. Electrical installation for Fidelity Investments' 210,000 square feet four-level office building and a 392,000-square-foot three-level parking garage.
Behind the 2001 Numbers. Projects were cancelled or postponed into the next year because of the slowing economy. Companies also stopped building data centers.
Forecast for 2002. Flat for 2002 due to general economy but expects it to pick up in 2003.
Fast Facts. Oregon Electric Group was founded in 1947 during the postwar building boom and incorporated in 1959. The contractor focused only on the residential market until 1959, when it started doing commercial projects.
Employees. 800
Branch offices. Seattle, Wash.; and four offices in Portland, Ore.
Top Market Segments. High-tech, industrial, healthcare and low-voltage systems.
Services. Oregon Electric Group has Emergency Response Teams (ERT) throughout Oregon and southwest Washington. When customers call, a licensed electrician answers and assigns a team to respond to a customer's needs 24 hours a day, seven days a week.
Recent Projects. $27 million electrical and systems project for Novellus Systems, several projects at Intel, LSI, Providence Health Systems and Longview Fiber.
Company News. Oregon Electric Group was acquired by MDU Resources, Bismarck, N.D., in September 2001.
Behind the 2001 Numbers. Better estimating and focused sales.
Forecast for 2002. 2002 should be flat due to decrease in industrial projects.
Employees. 1,200
Branch Offices. Atlanta, Ga.; Belle Chase and Lafayette, La.; Houston and Corpus Christi, Texas; and Barcelona, Venezuela.
Top Market Segments. Power generation, industrial manufacturing and offshore oil and gas production.
Capital Electric Construction Co. Inc., Kansas City, Mo.
2001 Sales. $103.5 million
Behind the 2001 Numbers. Increase is due to design-build, service and large projects.
Forecast for 2002. An 8 percent to 10 percent increase.
Fast Facts. MDU Resources acquired Capital Electric Line Builders Inc. and Capital Electric Construction Co. in January 2001.
Employees. 600
Branch Office. Omaha, Neb.
Top Market Segments. Commercial, line construction, and service and maintenance.
Recent Projects. Runway work and data backbone for the Kansas City International Airport, Denver's Invesco Field Mile High Stadium and data rooms for Sprint PCS.
Fast Facts. Aneco is a fast-track oriented electrical and telecommunications company serving North Carolina, Florida and Georgia.
2001 Sales. More than $95 million.
Employees. More than 850 technicians, electricians, craftsmen and support professionals.
Branch Offices. Orlando, Tampa and Miami, Fla.; Charlotte, N.C.; and Atlanta, Ga.
Top Market Segments. Aneco provides diversified electrical contracting services to the commercial, medical, governmental, and industrial construction markets throughout the southeastern United States. Projects include sporting arenas, convention centers, hotels and airline terminals.
Behind the 2001 Numbers. Down from $96 million due to a recessionary business cycle.
Forecast for 2002. Down 5 percent due to 9/11.
Employees. 850
Branch Offices. Miami and Gainsville, Fla.
Top Market Segments. Industrial, electrical service, renovation and new commercial construction.
Services. Electrical construction and repair, maintenance services, specialty systems, communications systems and services, UPS and generator installation and maintenance, control systems, fire protection systems, lightning protection systems and site lighting.
Top Market Segments. Electrical design and construction, power, lighting, life safety and energy management.
Recent Projects. MCI Center, AOL Dulles Technology Center, IBM/Toshiba Dominion Semiconductor, Jack Kent Cooke/Washington Redskins Stadium and the IRS headquarters.
Specialties. Pre-construction, design-build, design-assist and construction management.
Top Market Segments. Government, infrastructure, commercial, industrial, health care, pharmaceutical, food and beverage and defense enterprises.
Recent Projects. Completed a contract of more than $86 million on one of the nation's leading computer chip manufacturing facilities in the Colorado Springs area. Ludvik has also worked on Union Plaza, a residential, office and retail tenant complex, the Longmont wastewater treatment plant and the Boulder Community Hospital.
Behind the 2001 Numbers. Since Sept. 11, Cache Valley has seen companies cancel or trim projects. The steel industry, an area that the contractor does a lot of construction in, is also in a recession.
Forecast for 2002. Expects a 10 percent to 15 percent decrease in the current year. Companies are going out of business or scaling back construction in the Internet industry.
Employees. 529
Branch Offices. Salt Lake City; Denver; and Phoenix, Ariz.
Top Market Segments. Industrial, commercial and telecommunications Web Site. www.cvelectric.com
ERMCO, Indianapolis, Ind.
2001 Sales. $68 million
Behind the 2001 Numbers. Good economy.
Forecast for 2002. Decrease due to the 9/11 terrorist attack and economy slump.
Employees. 250
Branch Offices. Orlando, Fla.
Top Market Segments. Commercial, industrial and communications.
Behind the 2001 Numbers. Cut in all economic sectors, especially the automotive and steel industries.
Forecast for 2002. Maintain same level as 2001. In later 2002 and early 2003, the automotive industry may improve because of the demand for projects.
Employees. 300.
Branch Offices. Detroit, Mich.; Dayton, Mansfield and Toledo, Ohio.
Top Market Segments. Automotive, commercial and power generation.
Specialties. Lake Erie is known for its work on plants making automotive model changeovers and complex electrical installations required for the steel industry. The contractor has also done work with facilities, utilities and independent power plants.
Recent Projects. Freemont Power Regeneration Plant, Freemont, Ohio and John Carroll University's new Science and Technology Building.
