Specialty Contractors

Specialty Contractors

Brief Excerpt from Industry Overview Chapter:

Companies in this industry contract to perform construction work in a wide variety of trades, including site preparation, concrete, electrical, HVAC, plumbing, and painting. Major companies include APi Group, Comfort Systems USA, EMCOR Group, Performance Contracting, and Quanta Services (all based in the US), as well as Bilfinger (Germany) and Skanska (Sweden).

COMPETITIVE LANDSCAPE

Demand is driven by new residential and nonresidential construction activity, as well as corporate profits and local government budgets. The profitability of individual companies depends on accurate project bids and efficient operations. Most specialty contractors earn revenues from fixed price contracts, and companies must estimate total costs for projects. If actual material prices or labor costs differ from the estimates and cannot be recovered through change orders, profitability could be reduced. Large companies have advantages in being able to offer a variety of services over a geographically diverse market at competitive prices. Small companies can compete effectively by offering niche services or by building relationships with customers in individual markets.

PRODUCTS, OPERATIONS & TECHNOLOGY

Main revenue sources for specialty contractors include the new commercial buildings, which account for about 20% of the industry revenue. This is followed by additions, renovations, and alterations for about 15% and new residential buildings for about 10%. Not specified construction services account for about 5% of the revenue. Other services include the maintenance and repair of single detached buildings, and the construction of new nonresidential buildings.