SPONSORED BY Beware of double-edged swords PUBLIC VS. PRIVATE Energy prices are low and the dollar is strong. So what’s wrong with that? It depends on where you’re at in the commercial/industrial/institutional marketplace 59.05% 40.95% MARKETS SERVED BY ROBERT P. MADER OF CONTRACTOR’S STAFF U .S. Gross Domestic Product only grew 0.2% in the first quarter of this year. What happened? There are a couple macro-economic trends that may be having an impact. “Up until six months ago, the U.S. economy was manifesting surging momentum, but the last six months have been disappointing,” says Anirban Basu, chairman and CEO of Sage Policy Group Inc., Baltimore, and chief economist of Associated Builders & Contractors. “The recovery’s momentum has slowed to a crawl. Lower energy prices and their impact on investment spending, a stronger U.S. dollar, weather, and the West Coast port slowdown have all conspired to undo the economic momentum apparent during midyear 2014.” Here’s where the doubled-edged sword comes in. The high dollar and lower energy prices are good for some customers and bad for others. All that work in the Dakotas on fracking, shale gas or tar sands has slowed to a crawl. The oil companies aren’t engaging mechanical contractors for new builds and they’ve laid off a lot of their own workers. On the other hand, if you’re an electric utility or steel mill, cheap gas is terrific. For a steel mill, that cheap feedstock is great. But for a steel mill ● Public ● Private building tanks and pipe for the oil industry, it’s bad. If you’re manufacturing plastics or asphalt and the like, cheap oil is great. A couple years ago, a Euro was worth $1.35. Today it’s worth $1.05 and the two currencies may reach parity. That makes imports cheap, but for U.S. manufacturers in the export market, it’s killing them. The U.S. has been a net exporter of refined petroleum products, notes Anthony J. Guzzi, president and CEO of EMCOR Group Inc. Low oil prices, however, have lead to massive layoffs in the oil industry. Guzzi says he’s heard job loss figures ranging from 30,000 to as high as 120,000. ● Residential/ Light Commercial 8.62% ● Commercial 39.00% ● Institutional 27.01% ● Industrial 27.01% HOW THEY GET WORK ● Design/Build 22.24% ● Bid/Spec 44.36% ● Negotiated 31.62% ● Other 10.42% 1.78% 14.51% 16.48% 58.59% TYPE OF WORK ● New Construction ● Service and maintenance ● Retrofit and replacement ● Remodeling 16 • MAY 2015 ➤ www.contractormag.com Photo: McElroy. CONTRACTOR'S TOP 100 WHO THEY ARE Rank 1 Company City State Revenue in millions Rank EMCOR Group Norwalk CT $2,889.10 51 Company City State Revenue in millions Shapiro & Duncan Rockville MD $110.68 2 Johnson Controls Inc. North America Service Milwaukee WI $2,080.65 52 Thomas G. Gallagher, Inc. Cambridge MA $106.47 3 APi Group Inc. New Brighton MN $1,484.92 53 Letsos Co. Houston TX $106.05 4 Comfort Systems USA Inc. Houston TX $1,410.80 54 Pacific Rim Mechanical Contractors, Inc. San Diego CA $102.97 5 ACCO Engineered Systems, Inc. Glendale CA $720.00 55 McKamish, Inc. Pittsburgh PA $101.00 6 American Residential Services Memphis TN $675.10 56 Harris Companies St. Paul MN $100.60 7 TDIndustries Dallas TX $430.00 57 Corrigan Co., Mechanical Contractors St. Louis MO $100.00 8 Southland Industries Garden Grove CA $407.28 58 F.W. Spencer & Sons Brisbane CA $100.00 9 Service Experts Inc. Plano TX $407.20 59 Hayes Mechanical LLC Chicago IL $100.00 10 McKinstry Co. Seattle WA $400.00 60 Herman Goldner Philadelphia PA $97.73 11 Harder Mechanical Contractors Inc. Portland OR $384.00 61 Pioneer Power Inc. Saint Paul MN $92.57 12 Dynamic Systems Inc. Austin TX $325.50 62 A. O. Reed & Co. San Diego CA $90.00 13 MMC Contractors Overland Park KS $323.04 63 Dorvin D. Leis Co., Inc. Kahuliu HI $88.57 14 Limbach Facility Services LLC Pittsburgh PA $296.10 64 GEM Industrial Walbridge OH $88.50 15 Apollo Sheet Metal Inc. Kennewick WA $272.00 65 Hussung Mechanical Corporation Louisville KY $84.50 16 BMW Constructors Munster IN $269.00 66 Fire & Life Safety America Richmond VA $80.80 17 U.S. Engineering Kansas City MO $252.36 67 Hermanson Co. LLP Kent WA $80.19 18 Hill Mechanical Group Franklin Park IL $245.70 68 Midstate Mechanical, Inc. Phoenix AZ $80.00 19 Greenstar Services Mt. Vernon NY $243.85 69 Conforti Plumbing Inc El Dorado CA $79.60 20 J.F. Ahern Co. Fond du Lac WI $239.37 70 Harry Grodsky & Co., Inc. Springfield MA $77.04 21 John E. Green Co. Highland Park MI $210.50 71 W.W. Gay Mechanical Contractor, Inc. Jacksonville FL $73.90 22 Waldinger Corp. Des Moines IA $200.00 72 Egan Cos. Inc. Brooklyn Park MN $73.00 23 Murphy Company Mechanical Contractors & Engineers St. Louis MO $199.56 73 Southern Air Inc. Lynchburg VA $72.70 24 Metropolitan Mechanical Contractors Inc. Eden Prairie MN $197.68 74 Corval Group Inc. St. Paul MN $72.00 25 JH Kelly Longview WA $190.00 75 California United Mechanical Inc. San Jose CA $71.30 26 J.C. Cannistraro LLC Watertown MA $183.50 76 Kroeschell Operations Inc. IL $69.28 27 McCarl's Beaver Falls PA $183.20 Arlington Heights 28 Coastal Mechanical Services Group Melbourne FL $175.81 77 KSW Mechanical Services Long Island City NY $69.28 29 Mechanical Inc. Freeport IL $172.98 78 Nashville Machine Co., Inc. Nashville TN $67.65 30 John W. Danforth Group Inc. Tonawanda NY $172.61 31 RK Mechanical, Inc. Denver CO $166.60 32 P1 Group Inc. Lenexa KS $160.00 33 Worth & Co. Inc Pipersville PA $158.57 34 Pan-Pacific Plumbing Co. Fountain Valley CA $155.69 35 J.J. White, Inc. Philadelphia PA $153.40 36 Kinetic Systems, Inc. Fremont CA $149.56 37 The Brandt Cos. LLC Carrollton TX $147.10 38 E.M. Duggan Inc. Canton MA $145.80 39 AZCO Inc. Appleton WI $137.10 40 Lee Co. Franklin TN $136.50 41 Environmental Air Systems LLC Greensboro NC $126.14 42 Ivey Mechanical Co. LLC Kosciusko MS $125.17 43 VSC Fire & Security Ashland VA $122.17 44 COSCO Fire Protection San Juan Capistrano CA $119.71 79 General Heating & Air Conditioning, Inc. Madison WI $67.55 80 Lusk Mechanical Contractors Inc. Muldraugh KY $67.00 81 Sterling Boiler & Mechanical Inc. Evansville IN $66.70 82 Beutler Corp. Mcclellan CA $66.30 83 Dyna Ten Corp. Fort Worth TX $65.81 84 Falasca Mechanical Inc. Vineland NJ $65.68 85 R.T. Moore Co., Inc. Indianapolis IN $64.25 86 Atlantic Constructors, Inc. Richmond VA $63.13 87 BCH Mechanical, Inc. Largo FL $62.00 88 Shumate Mechanical LLC Duluth GA $61.44 89 CCI Mechanical Salt Lake City UT $60.50 90 YMC Inc. Mechanical Contractor Meridian ID $60.35 91 R.S. Andrews Enterprises Inc Atlanta GA $57.60 92 Bonland Industries, Inc. Wayne NJ $56.88 93 Reliable Automatic Sprinkler Co. Liberty SC $56.40 94 Century Fire Protection, LLC Duluth GA $56.28 45 Therma Corp. San Jose CA $119.40 95 Frank M. Booth Inc. Marysville CA $56.10 46 Roth Bros. Inc. Youngstown OH $114.85 96 The Hardy Corp. Birmingham AL $55.41 47 Source Refrigeration & HVAC Inc. Anaheim CA $114.10 97 Fresh Meadow Mechanical Corp. Fresh Meadows NY $55.00 48 AMPAM Parks Mechanical, Inc. Wilmington CA $113.63 98 MLN Co. Houston TX $55.00 49 John J. Kirlin Inc. Rockville MD $113.40 99 Wayne Automatic Fire Sprinklers Ocoee FL $54.83 50 Burkes Mechanical, Inc. Brent AL $112.00 100 Berger Engineering Co. Dallas TX $54.50 ➤ www.contractormag.com MAY 2015 • 17 CONTRACTOR'S TOP 10 COMPANIES BY REGION Midwest Company City Revenue State in millions 2 Johnson Controls Inc. North America Service Milwaukee WI $2,080.65 3 APi Group Inc. New Brighton MN $1,484.92 13 MMC Contractors Overland Park KS $323.04 16 BMW Constructors Munster IN $269.00 17 U.S. Engineering Kansas City MO $252.36 18 Hill Mechanical Group Franklin Park IL $245.70 20 J.F. Ahern Co. Fond du Lac WI $239.37 21 John E. Green Co. Highland Park MI $210.50 22 Waldinger Corp. Des Moines IA $200.00 23 Murphy Company Mechanical Contractors & Engineers St. Louis MO $199.56 Company City Revenue State in millions 1 EMCOR Group Norwalk CT $2,889.10 14 Limbach Facility Services LLC Pittsburgh PA $296.10 19 Greenstar Services Mt. Vernon NY $243.85 26 J.C. Cannistraro LLC Watertown MA $183.50 27 McCarl's Beaver Falls PA $183.20 30 John W. Danforth Group Inc. Tonawanda NY $172.61 33 Worth & Co. Inc Pipersville PA $158.57 35 J.J. White Inc. Philadelphia PA $153.40 38 E.M. Duggan Inc. Canton MA $145.80 49 John J. Kirlin Inc. Rockville MD $113.40 Rank Trading good jobs for bad “That was a good growth industry, but now with the laydown of drilling rigs, we’re substituting good jobs for retail jobs,” Guzzi says. “We’re taking high-skill and highdollar jobs and replacing them with low-skill, low-dollar jobs. And we’re not seeing the benefit of low gaso- “Those guys react much faster,” he notes. “They’re much closer to the economy in terms of what’s going on. They don’t have the capital to fund projects, so they cut back on rolling projects out. I can’t say that it has had any direct impact on other customers such as chemical plants, auto plants and others in our Photo: BCH Mechanical. Northeast Rank South Company City Revenue State in millions 4 Comfort Systems USA Inc. Houston TX $1,410.80 6 American Residential Services Memphis TN $675.10 7 TDIndustries Dallas TX $430.00 9 Service Experts Inc. Plano TX $407.20 12 Dynamic Systems Inc. Austin TX $325.50 28 Coastal Mechanical Services Group Melbourne FL $175.81 37 The Brandt Cos. LLC Carrollton TX $147.10 40 Lee Co. Franklin TN $136.50 41 Environmental Air Systems LLC Greensboro NC $126.14 42 Ivey Mechanical Co. LLC Kosciusko MS $125.17 Company City Revenue State in millions 5 ACCO Engineered Systems Inc. Glendale CA $720.00 8 Southland Industries Garden Grove CA $407.28 10 McKinstry Co. Seattle WA $400.00 11 Harder Mechanical Contractors Inc. Portland OR $384.00 15 Apollo Sheet Metal Inc. Kennewick WA $272.00 25 JH Kelly Longview WA $190.00 31 RK Mechanical Inc. Denver CO $166.60 34 Pan-Pacific Plumbing Co. Fountain Valley CA $155.69 36 Kinetic Systems Inc. Fremont CA $149.56 44 COSCO Fire Protection San Juan Capistrano CA $119.71 Rank West Rank 18 • MAY 2015 line prices. Most people are using the savings to pay down debt. We have not had an active consumer. The low GDP number in the first quarter of 0.2% was caused by bad weather and a slower refining business, and retail can’t overcome what’s going on in energy and the export business.” Tim Moormeier, president of U.S. Engineering, Kansas City, Missouri, said he’s heard speculation about oil prices that run from $20 a barrel up to $80. (Guzzi believes that $70$75 a barrel is the sweet spot; high enough to maintain oil patch jobs, but low enough to not slow the U.S. economy.) ‘We are very busy in plant relocations and expansions, especially in the Southeast.’ “As a company we’ve been making some small inroads in the oil and gas industry at a time when they are scrambling to find way to save dollars,” says Moormeier. “So that’s having an affect on our work opportunities in that market.” Moormeier says low prices have had a greater impact on middle market firms such as Whiting Petroleum Corp. or Noble Energy or Andarko Petroleum. ➤ www.contractormag.com Piping at the WTC Memorial. industrial base.” Will industrial slow? The strong dollar makes Basu think that the industrial recovery, while still strong, will not continue. “The U.S. dollar continues to be strong at $1.05 against the Euro,” Basu told CONTRACTOR. “It’s also high against Yen, the Yuan and the Canadian dollar, and that creates headwinds for exporters and makes imports more competitive. The result is slower earnings growth for U.S. manufacturers and diminished investment in the nation’s plants and equipment. That’s not all seen in the current data because a lot of these investments were planned before the dollar became much stronger. And the likelihood is that the dollar will get stronger. The Federal Reserve is contemplating higher interest rates and that makes dollardenominated fixed-income assets more attractive. Europe is just getting into a quantitative easing program, so the dollar will get stronger. That makes it tougher for exports but better for imports, so manufacturers will not put lot of money into their physical plant.” State HVAC Piping Plumbing Sheet Metal Refrigeration Controls/ Testing Balancing Fire Protection Water/ Wastewater Treatment 1 EMCOR Group Norwalk CT $2,889.10 982.29 $317.80 $663.80 $144.46 $86.67 0.00 288.61 $317.80 $0.00 2 Johnson Controls Inc. North America Service Milwaukee WI $2,080.65 416.13 $0.00 $0.00 $416.13 $0.00 1,248.39 0.00 $0.00 $0.00 3 APi Group Inc. New Brighton MN $1,484.92 0.00 $74.25 $74.25 $0.00 $0.00 0.00 1,336.43 $0.00 $0.00 4 Comfort Systems USA Inc. Houston TX $1,410.80 1,043.99 $0.00 $225.73 $0.00 $0.00 84.65 0.00 $0.00 $56.43 5 ACCO Engineered Systems, Inc. Glendale CA $720.00 597.60 $0.00 $61.20 $0.00 $0.00 61.20 0.00 $0.00 $0.00 6 American Residential Services Memphis TN $675.10 337.55 $0.00 $337.55 $0.00 $0.00 0.00 0.00 $0.00 $0.00 7 TDIndustries Dallas TX $430.00 215.00 $86.00 $129.00 $4.30 $4.30 4.30 4.30 $4.30 $0.00 8 Southland Industries Garden Grove CA $407.28 256.59 $0.00 $114.04 $0.00 $0.00 24.44 16.29 $0.00 $0.00 Rank Company Guzzi believes that his customers plan long-term and view low energy prices and a strong dollar cyclically. “The people we work with make long, long term decisions,” Guzzi points out. “So the Southeast, Texas, and some parts of the Midwest have a competitive advantage now. If the dollar is strong, maybe you’re still better off manufacturing here rather than Europe and bringing back manufacturing from China because of low energy costs. That’s driving manufacturing in the U.S. and that Photo: Dunbar Mechanical. Photo: Dunbar Mechanical. will continue to help the dollar. “America is the world’s largest manufacturer anyway, and we will continue to see that in our business,” Guzzi continues. We are very busy in plant relocations and expansions, especially in the Southeast. I think China is going to move long term to a globally sourced product, that is, if you’re manufacturing in China, it’s to serve the Chinese market. There’s no big advantage to shipping stuff from China to the U.S., especially when you can consider manufacturing in Mexico if you’re just interested in low-cost manufacturing.” Basu notes that other sectors of the construction economy are re- 20 • MAY 2015 Other City Revenue in millions GIANT'S BREAKDOWN 9 Service Experts Inc. Plano TX $407.20 203.60 $0.00 $81.44 $81.44 $0.00 40.72 0.00 $0.00 $0.00 10 McKinstry Co. Seattle WA $400.00 200.00 $25.00 $23.00 $100.00 $8.00 20.00 20.00 $4.00 $0.00 11 Harder Mechanical Contractors Inc. Portland OR $384.00 19.20 $307.20 $19.20 $0.00 $0.00 0.00 0.00 $0.00 $38.40 12 Dynamic Systems Inc. Austin TX $325.50 24.41 $24.41 $107.42 $87.89 $0.00 16.28 0.00 $0.00 $65.10 13 MMC Contractors Overland Park KS $323.04 64.61 $96.91 $96.91 $48.46 $0.00 0.00 0.00 $16.15 $0.00 14 Limbach Facility Services LLC Pittsburgh PA $296.10 75.10 $75.00 $40.00 $76.00 $0.00 30.00 0.00 $0.00 $0.00 15 Apollo Sheet Metal Inc. Kennewick WA $272.00 58.08 $76.16 $59.84 $32.64 $27.20 8.16 0.00 $2.72 $0.00 16 BMW Constructors Munster IN $269.00 0.00 $161.40 $53.80 $13.45 $0.00 13.45 13.45 $13.45 $0.00 17 U.S. Engineering Kansas City MO $252.36 30.28 $133.75 $55.52 $27.76 $2.52 0.00 0.00 $2.52 $0.00 18 Hill Mechanical Group Franklin Park IL $245.70 73.71 $56.51 $22.11 $81.08 $0.00 4.91 7.37 $0.00 $0.00 19 Greenstar Services Mt. Vernon NY $243.85 60.96 $60.96 $60.96 $60.96 $0.00 0.00 $0.00 $0.00 20 J.F. Ahern Co. Fond du Lac WI $239.37 28.72 $21.54 $14.36 $23.94 $0.00 2.39 104.00 $26.33 $16.76 21 John E. Green Co. Highland Park MI $210.50 63.00 $63.00 $52.50 $0.00 $0.00 0.00 21.00 $10.50 $0.00 22 Waldinger Corp. Des Moines IA $200.00 50.00 $50.00 $50.00 $50.00 $0.00 0.00 0.00 $0.00 $0.00 23 Murphy Company Mechanical Contractors & Engineers St. Louis MO $199.56 55.88 $109.76 $9.98 $9.98 $9.98 3.99 0.00 $0.00 $0.00 24 Metropolitan Mechanical Contractors Inc. Eden Prairie MN $197.68 39.54 $79.07 $39.54 $39.54 $0.00 0.00 0.00 $0.00 $0.00 25 JH Kelly Longview WA $190.00 0.00 $70.30 $19.00 $0.00 $0.00 0.00 0.00 $7.60 $93.10 26 J.C. Cannistraro LLC Watertown MA $183.50 100.93 $0.00 $55.05 $0.00 $0.00 0.00 27.53 $0.00 $0.00 27 McCarl's Beaver Falls PA $183.20 0.00 $137.40 $0.00 $0.00 $0.00 1.83 1.83 $12.82 $29.31 28 Coastal Mechanical Services Group Melbourne FL $175.81 74.90 $25.14 $21.45 $14.77 $11.96 13.89 0.00 $0.00 $13.71 29 Mechanical Inc. Freeport IL $172.98 86.49 $25.95 $17.30 $43.25 $0.00 0.00 0.00 $0.00 $0.00 30 John W. Danforth Group Inc. Tonawanda NY $172.61 34.52 $69.04 $34.52 $34.52 0.00 0.00 $0.00 $0.00 31 RK Mechanical, Inc. Denver CO $166.60 0.00 $39.98 $51.65 $46.65 $26.66 0.00 0.00 $1.67 $0.00 32 P1 Group Inc. Lenexa KS $160.00 32.00 $24.00 $24.00 $16.00 $0.00 8.00 0.00 $8.00 $48.00 33 Worth & Co. Inc Pipersville PA $158.57 0.00 $79.29 $79.29 $0.00 $0.00 0.00 0.00 $0.00 $0.00 34 Pan-Pacific Plumbing Co. Fountain Valley CA $155.69 0.00 $31.14 $124.55 $0.00 $0.00 0.00 0.00 $0.00 $0.00 35 J.J. White, Inc. Philadelphia PA $153.40 30.68 $30.68 $30.68 $30.68 $0.00 0.00 0.00 $0.00 $30.68 36 Kinetic Systems, Inc. Fremont CA $149.56 28.04 $28.04 $28.04 $28.04 $0.00 0.00 0.00 $0.00 $37.39 37 The Brandt Cos. LLC Carrollton TX $147.10 36.78 $36.78 $36.78 $36.78 $0.00 0.00 0.00 $0.00 $0.00 38 E.M. Duggan Inc. Canton MA $145.80 80.19 $0.00 $52.49 $0.00 $0.00 0.00 13.12 $0.00 $0.00 39 AZCO Inc. Appleton WI $137.10 0.00 $83.63 $0.00 $5.48 $0.00 0.00 0.00 $0.00 $47.99 40 Lee Co. Franklin TN $136.50 54.60 $27.30 $27.30 $13.65 $0.00 4.10 0.00 $2.73 $6.83 41 Environmental Air Systems LLC Greensboro NC $126.14 63.07 $0.00 $0.00 $63.07 $0.00 0.00 0.00 $0.00 $0.00 42 Ivey Mechanical Co. LLC Kosciusko MS $125.17 87.62 $0.00 $37.55 $0.00 $0.00 0.00 0.00 $0.00 $0.00 43 VSC Fire & Security Ashland VA $122.17 0.00 $0.00 $0.00 $0.00 $0.00 0.00 122.17 $0.00 $0.00 44 COSCO Fire Protection San Juan Capistrano CA $119.71 0.00 $0.00 $0.00 $0.00 $0.00 0.00 119.71 $0.00 $0.00 45 Therma Corp. San Jose CA $119.40 22.39 $22.39 $22.39 $22.39 $0.00 0.00 0.00 $0.00 $29.85 46 Roth Bros. Inc. Youngstown OH $114.85 28.71 $28.71 $28.71 $28.71 $0.00 0.00 0.00 $0.00 $0.00 47 Source Refrigeration & HVAC Inc. Anaheim CA $114.10 57.05 $0.00 $0.00 $0.00 $57.05 0.00 0.00 $0.00 $0.00 48 AMPAM Parks Mechanical, Inc. Wilmington CA $113.63 0.00 $0.00 $113.63 $0.00 $0.00 0.00 0.00 $0.00 $0.00 49 John J. Kirlin Inc. Rockville MD $113.40 28.35 $28.35 $28.35 $28.35 $0.00 0.00 0.00 $0.00 $0.00 50 Burkes Mechanical, Inc. Brent AL $112.00 28.00 $28.00 $28.00 $28.00 $0.00 0.00 0.00 $0.00 $0.00 ➤ www.contractormag.com Piping Plumbing Sheet Metal Refrigeration Controls/ Testing Balancing Rockville MD $110.68 63.09 $0.00 $36.52 $11.07 $0.00 5.53 0.00 $0.00 $0.00 52 Thomas G. Gallagher Inc. Cambridge MA $106.47 26.62 $0.00 $26.62 $0.00 $26.62 0.00 26.62 $0.00 $0.00 53 Letsos Co. Houston TX $106.05 79.87 $0.00 $15.84 $9.94 $0.00 0.40 0.00 $0.00 $0.00 54 Pacific Rim Mechanical Contractors, Inc. San Diego CA $102.97 41.19 $10.30 $10.30 $10.30 $0.00 30.89 0.00 $0.00 $0.00 55 McKamish, Inc. Pittsburgh PA $101.00 25.25 $20.20 $15.15 $20.20 $3.03 10.10 0.00 $0.00 $7.07 56 Harris Companies St. Paul MN $100.60 20.12 $30.18 $20.12 $15.09 $0.00 5.03 0.00 $5.03 $5.03 57 Corrigan Co., Mechanical Contractors St. Louis MO $100.00 0.00 $85.00 $0.00 $15.00 $0.00 0.00 0.00 $0.00 $0.00 58 F.W. Spencer & Sons Brisbane CA $100.00 35.00 $30.00 $35.00 $0.00 $0.00 0.00 0.00 $0.00 $0.00 59 Hayes Mechanical LLC Chicago IL $100.00 20.00 $20.00 $20.00 $20.00 $0.00 0.00 0.00 $0.00 $20.00 60 Herman Goldner Philadelphia PA $97.73 19.55 $19.55 $14.66 $0.00 $4.89 0.00 0.00 $0.00 $39.09 61 Pioneer Power Inc. Saint Paul MN $92.57 0.00 $27.77 $64.80 $0.00 $0.00 0.00 0.00 $0.00 $0.00 62 A. O. Reed & Co. San Diego CA $90.00 22.50 $22.50 $22.50 $22.50 $0.00 0.00 0.00 $0.00 $0.00 63 Dorvin D. Leis Co., Inc. Kahuliu HI $88.57 13.29 $20.37 $38.97 $2.66 $3.54 0.88 0.88 $0.00 $0.00 64 GEM Industrial Walbridge OH $88.50 13.28 $39.83 $22.13 $0.00 $4.43 4.43 4.43 $0.00 $0.00 65 Hussung Mechanical Corporation Louisville KY $84.50 38.87 $4.23 $38.03 $0.00 $0.00 1.69 0.00 $1.69 $0.00 66 Fire & Life Safety America Richmond VA $80.80 0.00 $0.00 $0.00 $0.00 $0.00 0.00 80.80 $0.00 $0.00 67 Hermanson Co. LLP Kent WA $80.19 20.05 $20.05 $20.05 $20.05 $0.00 0.00 0.00 $0.00 $0.00 68 Midstate Mechanical, Inc. Phoenix AZ $80.00 44.00 $24.00 $12.00 $0.00 $0.00 0.00 0.00 $0.00 $0.00 69 Conforti Plumbing Inc El Dorado CA $79.60 0.00 $11.94 $67.66 $0.00 $0.00 0.00 0.00 $0.00 $0.00 70 Harry Grodsky & Co., Inc. Springfield MA $77.04 19.27 $19.27 $19.27 $19.27 $0.00 0.00 0.00 $0.00 $0.00 71 W.W. Gay Mechanical Contractor, Inc. Jacksonville FL $73.90 14.78 $14.78 $14.78 $14.78 $0.00 14.78 0.00 $0.00 $0.00 72 Egan Cos. Inc. Brooklyn Park MN $73.00 18.25 $18.25 $18.25 $7.30 $0.00 7.30 3.65 $0.00 $0.00 73 Southern Air Inc. Lynchburg VA $72.70 18.18 $18.18 $18.18 $0.00 $0.00 0.00 0.00 $0.00 $18.18 74 Corval Group Inc. St. Paul MN $72.00 7.20 $25.20 $14.40 $3.60 $7.20 0.00 0.00 $0.00 $14.40 75 California United Mechanical Inc. San Jose CA $71.30 35.65 $0.00 $35.65 $0.00 $0.00 0.00 0.00 $0.00 $0.00 76 Kroeschell Operations Inc. Arlington Heights IL $69.29 0.00 $17.32 $0.00 $0.00 $0.00 17.32 0.00 $17.32 $17.32 77 KSW Mechanical Services Long Island City NY $69.28 69.28 $0.00 $0.00 $0.00 $0.00 0.00 0.00 $0.00 $0.00 78 Nashville Machine Co., Inc. Nashville TN $67.65 12.85 $4.06 $18.27 $8.12 $0.00 0.00 0.00 $0.00 $24.35 79 General Heating & Air Conditioning, Inc. Madison WI $67.55 67.55 $0.00 $0.00 $0.00 $0.00 0.00 0.00 $0.00 $0.00 80 Lusk Mechanical Contractors Inc. Muldraugh KY $67.00 0.00 $22.11 $44.22 $0.00 $0.00 0.00 0.00 $0.00 $0.00 81 Sterling Boiler & Mechanical Inc. Evansville IN $66.70 0.00 $33.35 $0.00 $0.00 $0.00 0.00 0.00 $0.00 $33.35 82 Beutler Corp./Villara Mcclellan CA $66.30 22.10 $0.00 $22.10 $0.00 $0.00 11.05 0.00 $0.00 $11.05 83 Dyna Ten Corp. Fort Worth TX $65.81 0.00 $13.16 $13.16 $13.16 $0.00 13.16 0.00 $0.00 $13.16 84 Falasca Mechanical Inc. Vineland NJ $65.68 0.00 $65.68 $0.00 $0.00 $0.00 0.00 0.00 $0.00 $0.00 85 R.T. Moore Co., Inc. Indianapolis IN $64.25 16.06 $0.00 $48.19 $0.00 $0.00 0.00 0.00 $0.00 $0.00 86 Atlantic Constructors, Inc. Richmond VA $63.13 12.63 $12.63 $12.63 $0.00 $0.00 12.63 0.00 $0.00 $12.63 87 BCH Mechanical, Inc. Largo FL $62.00 18.35 $5.08 $6.90 $6.57 $0.62 2.79 0.00 $0.00 $21.70 88 Shumate Mechanical LLC Duluth GA $61.44 49.15 $0.00 $12.29 $0.00 $0.00 0.00 0.00 $0.00 $0.00 89 CCI Mechanical Salt Lake City UT $60.50 24.20 $12.10 $15.13 $0.00 $0.00 6.05 0.00 $0.00 $3.03 90 YMC Inc. Mechanical Contractor Meridian ID $60.35 12.07 $12.07 $12.07 $12.07 $0.00 0.00 0.00 $0.00 $12.07 91 R.S. Andrews Enterprises Inc Atlanta GA $57.60 46.08 $0.00 $5.76 $0.00 $0.00 0.00 0.00 $0.00 $5.76 92 Bonland Industries, Inc. Wayne NJ $56.88 39.82 $0.00 $0.00 $17.06 $0.00 0.00 0.00 $0.00 $0.00 93 Reliable Automatic Sprinkler Co. Liberty SC $56.40 0.00 $0.00 $0.00 $0.00 $0.00 0.00 56.40 $0.00 $0.00 94 Century Fire Protection, LLC Duluth GA $56.28 0.00 $0.00 $0.00 $0.00 $0.00 0.00 56.28 $0.00 $0.00 95 Frank M. Booth Inc. Marysville CA $56.10 0.00 $14.02 $0.00 $14.02 $0.00 14.02 0.00 $0.00 $14.02 96 The Hardy Corp. Birmingham AL $55.41 9.24 $9.24 $9.24 $9.24 $9.24 9.24 0.00 $0.00 $0.00 Multi-family is strong 97 Fresh Meadow Mechanical Corp. Fresh Meadows NY $55.00 55.00 $0.00 $0.00 $0.00 $0.00 0.00 0.00 $0.00 $0.00 98 MLN Co. Houston TX $55.00 38.50 $0.00 $13.75 $2.75 $0.00 0.00 0.00 $0.00 $0.00 99 Wayne Automatic Fire Sprinklers Ocoee FL $54.83 0.00 $0.00 $0.00 $0.00 $0.00 0.00 54.28 $0.00 $0.55 100 Berger Engineering Co. Dallas TX $54.50 38.15 $5.45 $5.45 $5.45 $0.00 0.00 0.00 $0.00 $0.00 John E. “Tripp” Ahern III, president and CEO of J.F. Ahern Co., Fond du Lac, Wisconsin, says that his firm, which specializes in both fire protection and HVAC, has gotten more work in urban centers, ➤ www.contractormag.com Other HVAC Shapiro & Duncan Water/ Wastewater Treatment State 51 Rank Company Fire Protection City Revenue in millions GIANT'S BREAKDOWN Photo: Ivy Mechanical. Photo: M&D Mechanical. covering nicely. The number one sector adding jobs, he points out, is business services that require more office space. That’s a big sector in non-residential construction. The consumer remains active even though the numbers for retail sales for the last three months have been disappointing, but online sales are strong, fueling the need for fulfillment centers. Americans feel more confident, Basu maintains, with unemployment down to 5.5% and wage pressure building. Wage growth is at its highest level in six years. Basu says he’s seen announcements by more companies for wage increases, which will contribute to higher retail spending and higher retail-related construction. Contractors note that online retailers, such as Amazon, are building distribution centers, so that they can deliver to customers faster. Data center work, a mainstay for mechanical contractors the past few years is changing. Previously, a lot of the work was for local firms such as banks. Now national firms, such as Apple or Yahoo, are building data centers. Basu expects increased hotel construction as more Americans can spend money on vacations. Occupancy rates and nightly rates are both up, generating money for both new construction and renovation of existing hotel rooms. MAY 2015 • 21 CONTRACTOR'S TOP 100 COMPANIES BY TYPE OF WORK Refrigeration Rank Company 1 EMCOR Group 47 Source Refrigeration & HVAC Inc. 15 Apollo Sheet Metal Inc. 31 RK Mechanical, Inc. 52 Thomas G. Gallagher Inc. Refrigeration Volume $86.67 $57.05 $27.20 $26.66 $26.62 Sheet Metal Rank Company Piping Sheet Metal Volume Johnson Controls Inc. North America Service $416.13 1 EMCOR Group $144.46 10 McKinstry Co. $100.00 2 12 Dynamic Systems Inc. $87.89 9 Service Experts Inc. $81.44 Rank Company EMCOR Group 11 Harder Mechanical Contractors Inc. 16 BMW Constructors 27 McCarl's 17 U.S. Engineering 23 Murphy Company Mechanical Contractors & Engineers $109.76 13 MMC Contractors $96.91 7 TDIndustries $86.00 $85.00 Coastal Mechanical Services Group $11.96 18 Hill Mechanical Group $81.08 23 Murphy Company Mechanical Contractors & Engineers $9.98 14 Limbach Facility Services LLC $76.00 The Hardy Corp. 41 Environmental Air Systems LLC $63.07 19 Greenstar Services $60.96 57 22 Waldinger Corp. $50.00 Corrigan Co., Mechanical Contractors 39 AZCO Inc. 10 McKinstry Co. $9.24 $8.00 74 Corval Group Inc. $7.20 $317.80 $307.20 1 28 96 Piping Volume $161.40 $137.40 $133.75 $83.63 Plumbing Rank Company Plumbing Volume $663.80 $337.55 1 EMCOR Group 6 American Residential Services 4 Comfort Systems USA Inc. $225.73 7 TDIndustries 34 Pan-Pacific Plumbing Co. $129.00 $124.55 8 Southland Industries 48 AMPAM Parks Mechanical, Inc. 12 Dynamic Systems Inc. 13 MMC Contractors $107.42 $96.91 9 Service Experts Inc. $81.44 $114.04 $113.63 Photo: Waldrop Mechanical Services. Controls/Testing & Balancing Fire Protection Rank Company Fire Protection Volume Rank Company Water/Wastewater Treatment Controls/ Testing & Balancing Volume Rank Company Water/ Wastewater Treatment Volume 2 Johnson Controls Inc. North America Service 1,248.39 1 EMCOR Group $317.80 4 Comfort Systems USA Inc. 84.65 20 J.F. Ahern Co. $26.33 5 ACCO Engineered Systems, Inc. 61.20 76 Kroeschell Operations Inc. $17.32 40.72 30.89 13 MMC Contractors 16 BMW Constructors $16.15 $13.45 1,336.43 288.61 122.17 119.71 104.00 9 Service Experts Inc. 54 Pacific Rim Mechanical Contractors, Inc. Fire & Life Safety America 80.80 14 30.00 27 McCarl's $12.82 93 Reliable Automatic Sprinkler Co. 56.40 Limbach Facility Services LLC 8 Southland Industries 24.44 21 John E. Green Co. $10.50 94 Century Fire Protection LLC 56.28 10 McKinstry Co. 32 P1 Group Inc. 99 Wayne Automatic Fire Sprinklers 54.28 76 Kroeschell Operations Inc. 20.00 17.32 25 JH Kelly $8.00 $7.60 26 J.C. Cannistraro LLC 27.53 12 Dynamic Systems Inc. 16.28 56 Harris Companies $5.03 3 APi Group Inc. 1 EMCOR Group 43 VSC Fire & Security 44 COSCO Fire Protection 20 J.F. Ahern Co. 66 22 • MAY 2015 ➤ www.contractormag.com Photo: Thinkstock/iStock. such as Minneapolis, Milwaukee or Chicago. “We have done a fair amount of high-rise residential work over the year,” Ahern says. “A lot is going on in a number of places, but not all of it is equal. Some of it is very high end, very expensive, high quality construction, and other projects are pure apartments, less expensive type of housing. There’s a definite difference in the type of competitors who pursue various forms of that work. We’re performing plumbing, HVAC, fire protection and automated controls, and we can see in our particular case where a project might be appealing from the fire protection standpoint and less so for HVAC, or vice versa.” Government spending remains an X-factor. Moormeier reports that U.S. Engineering’s public work is going well, with projects for the New York Federal Reserve, universities and other higher education, and federal contracts for the Department of Energy, Homeland Security, and the Air Force. Infrastructure spending may suffer, however, because of the gridlock in Washington. Other than airport construction, which is often funded locally, most infrastructure money comes from the federal government. That spells trouble for water supply and wastewater treatment projects. “Everything ebbs and flows at various times,” Ahern says. “So that’s why multi-family residential developers today have a clear business case for wanting to expand the number of rental units available in cities. We’ll see how long that lasts. For the overall economy we’ll see modest growth in 2015, and we’re really looking forward to 2016 and ’17. We think those will be good years. The low point for us was 2011 in terms of volume and we’ve seen a nice, steady climb upward from that point. 2014 was an all-time record sales year and we should eclipse that this year. The key issue is going to be making sure we have enough young people entering the construction industry over next several years … that will be our biggest challenge.”
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