Electrical and mechanical construction is at the core of EMCOR Group. One of the world's largest specialty construction firms, EMCOR designs, installs, operates, and maintains complex mechanical and electrical systems. These include systems for power generation and distribution, lighting, water and wastewater treatment, voice and data communications, fire protection, plumbing, and heating, ventilation, and air-conditioning (HVAC). EMCOR also provides facilities services, including management and maintenance support. Through more than 70 subsidiaries and joint ventures, the company serves a range of commercial, industrial, institutional, and utility customers. EMCOR operates primarily in the US and UK.
More than 90% of EMCOR's revenues come from work performed in the US. The remainder is derived from the UK through EMCOR Group (UK). Of this business, about 40% of revenues are related to new construction. The remainder comes from renovation or retrofit projects as well as facilities services.
Challenging economic conditions have forced EMCOR to make some adjustments as customers limit capital spending. The company aggressively cut costs early on in the economic recession (mostly through job cuts) and it continues to bid on projects that present favorable profit margins. This strategy has kept EMCOR profitable even during the downturn. Additionally, the company has grown by diversifying its services and expanding geographically within the US.
EMCOR narrowed its international focus in 2011 when it sold its Canadian unit Comstock. The year prior, EMCOR sold its joint venture operations in the Middle East.
The divestures allowed EMCOR to focus on its core US market. Most recently the company has built its facilities services segment as facilities have become more complex and customers' desire to outsource maintenance of its systems has increased. The company provides facilities services for some of the country's most famous buildings, including the headquarters for the Secret Service, FDIC, and World Bank.
The company has made several recent acquisitions to expand its facilities services arm. In 2010 EMCOR strengthened its government services business by acquiring Florida-based government infrastructure company Harry Pepper & Associates. The addition allowed EMCOR to start offering diversified contracting services to federal and municipal governments. In 2011 the company acquired industrial services provider Bahnson Holdings and USM Services, further expanding its facilities maintenance offerings. The following year it bought North Carolina-based industrial services contractor Southern Industrial Constructors.
The acquisitions helped boost revenues in 2011. They were up by about 16%. And for the first time in the company's history, its facilities services segment earned more than $2 billion in revenues. That year, EMCOR particularly experienced an increase in demand for its services in the refinery and petrochemical markets, as well as in the mobile mechanical and government services industries.
Some of EMCOR's largest institutional, industrial, and commercial projects include water treatment plants, hospitals, correctional facilities, research labs, manufacturing plants, oil refineries, data centers, hotels, shopping malls, and office buildings. Many of those projects exceed $10 million and can span several years. Clients include Microsoft, the US Department of Veteran Affairs, and Hard Rock Hotel & Casino in Las Vegas. – less