EMCOR Group Statistics & Concepts

I came across a 4,863-word transcript of an appearance by EMCOR Group (Tony Guzzi, president & CEO) at a 9/20 investor’s conference. EMCOR’s stock has previously been recommended here (EleBlog’s proprietor owns Zero shares, to avoid a conflict-of-interest).

This post, however, isn’t about the stock — it consists of some data & ideas sucked out of that presentation, about EMCOR Group:

• 27,000 employees

• “a 5-to-1 to 6-to-1 ratio of people doing real work vs. people that are overseeing people doing real work”

• “About 20% we work directly for the owners” on the construction side

• About 80% of the work on the facility services side is done directly (for owners)

• More than 10,000 service agreements.

• “Site base services — this is where we put people actually in buildings to run it or we manage . . . between that and maintenance services, you see [EMCOR Group working in] 120,000 locations. How could we possibly do that? We do that through a network of service providers where we bring the full trades plus snow plowing, landscaping cleaning.”

• “We get about $2 billion [in revenue, out of $6.3B this year] from new construction. Now, we would like to see that number be about $1 billion more, and we could easily bring that revenue into our business today with very little fixed-cost addition.”

• On achieving productivity: ” . . . a lot has happened to help us do that and not let people impede us. What are the kinds of things that we talked about there? Prefabrication. Technology has moved onto our sites. You will go to some of our sites and you will see people with iPads describing to our folks what they are going to build those next three days. [These] big changes really aid us.”

And this comment, which reflects what I think I remembered from the 1997-2002 days:

“What has been remarkable to me over the last four years — and I have been doing this for a while now — is the capital budget, and, at the end of the day, those things tend to move slowly (even in a good market).

“The only guys I saw spend like drunken sailors were the dot-com guys and telecom guys. In some ways, they would throw money out the window — and we would be there with baskets to collect it in those days.

“I have never seen that anywhere else. Everyone else is . . . very careful spenders.”

Source: http://electricalcontractor.com/?p=6718

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