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EMCOR provides a range of mechanical and electrical construction services to customers across multiple sectors, with a view to establishing itself as the building and industrial services provider of choice in the US and the UK.
EMCOR organises its operations into five principal business segments:
- United States Electrical Construction and Facilities Services, which comprises the Company’s systems for electrical power transmission and distribution, premises electrical and lighting systems, low-voltage systems – such as fire alarm, security and process control, voice and data communication, roadway and transit lighting, and fiber optic lines;
- United States Mechanical Construction and Facilities Services, which comprises the Company’s systems for heating, ventilation, air conditioning, refrigeration and clean-room process ventilation, fire protection, plumbing and high-purity piping, controls and filtration, water and wastewater treatment, central plant heating and cooling, cranes and rigging, and steel fabrication and welding;
- United States Building Services, which comprises the Company’s provision of services across the US that support the operation and maintenance of customers’ facilities, including facility maintenance and services, outage services, military base operations support services, and, program development and management for energy systems, among other services;
- United States Industrial Services, which comprises the provision of industrial maintenance and services, including on-site repairs, maintenance and service equipment, design, manufacturing, planning and engineering services, specialty welding services, and specialty technical services; and
- United Kingdom Building Services, which comprises similar activities to those of the United States Building Services segment I relation to its UK customer base.
EMCOR was established in 1995, as a result of the reorganisation of Jamaica Water Supply following its emergence from bankruptcy.
Jamaica Water Supply Company was launched in 1966 to provide water to Nassau County, Long Island, and Queens, New York. The company expanded during the 1970s and diversified its operations away from the water utility sector, establishing specialised construction units, largely through a series of acquisitions. Jamaica Water Supply’s expansion continued throughout the 1980s, with the company taking on significant amounts of debt. This debt ultimately forced the company into launching a restructuring process, and the filing for Chapter 11 bankruptcy protection in 1993.
In 1995 Jamaica Water Supply emerged from bankruptcy and was rebranded as EMCOR, focusing more on key business segments related to its electrical and mechanical construction activities. The Company has since stabilised, and has established itself as a leading construction and industrial services company in the US. EMCOR is ranked 381st on the Fortune 500 list. The Company trades shares on the New York Stock Exchange and has a current market capitalisation of $3.62 billion.
Benefits at EMCOR Group
Business model of EMCOR Group
EMCOR provides a broad range of services that target customers across multiple business sectors. The Company’s customers can be organised broadly into the following categories:
- Commercial, comprising a range of commercial enterprises that own or operate buildings and facilities, including property management companies and real estate developers;
- Industrial, comprising operators across all industrial segments, including industrial manufacturers, mining and natural resources companies, and processing companies;
- Utility, comprising distributors and generators of utilities, including energy companies, water treatment companies, and electricity transmission businesses; and
- Institutional, comprising various government bodies, principally including municipal, federal and state organisations across the US, participating in public works projects such as highway lighting systems and infrastructure maintenance.
EMCOR also serves tenants of buildings and building units, providing various maintenance and repair services.
EMCOR’s principal market is its native US, which accounts for the majority of its business. The Company also operates in the UK, where it has a number of customers across multiple segments.
EMCOR provides value to its customers in the following ways:
- The quality and reliability of its services and solutions, with the Company providing high-quality services, having a track-record as a well-regarded, reliable and efficient provider of engineering and maintenance services;
- The breadth of its service portfolio, with the Company providing an extensive range of services that serve a variety of business sectors, notably industrial, commercial, and institutional organisations;
- Its technical expertise and experience, with the Company employing highly-trained specialist personnel across its five operating segments, led by an experienced team of industry executives; and
- Its safety processes and procedures, with the Company having a safety record that is above the industry average, and higher than many of its competitors.
EMCOR operates a website at www.emcorgroup.com, through which it provides information on its various services, projects, and locations. The Company does not operate an online sales channel or a customer portal.
EMCOR serves its customers directly, operating sales and service teams specific to each of its operating segments. The Company is active through more than 75 group companies present operating across 170 locations in the US and the UK.
Once contracts and sales have been agreed, the Company works directly on construction service and building service both large and small projects, including for corporations, municipalities and federal and state governmental entities, through its expansive team of specialist engineering, construction, and maintenance personnel, which manage all aspects of these projects.
EMCOR also provides construction services indirectly, by acting as a subcontractor to general contractors, systems suppliers, property managers and other subcontractors.
EMCOR does not operate any self-service channels, beyond the information provided on its website. The Company works closely with its customers, consulting over a period of time in order to accurately establish the requirements, budget, and limitations of each project prior to the commencement of work. EMCOR collaborates with customers throughout these projects, with a view to establishing longstanding relationships.
Additionally, EMCOR provides ongoing support to its customers and makes support and service personnel available throughout the project process, with larger customers having their own account management teams. Potential and existing customers are also able to contact the Company via email and over the phone in order to receive a personalised response to enquiries.
EMCOR provides a range of information to customers through its website, publishing press releases, and news coverage. It also operates a number of social media accounts – including with Facebook, LinkedIn, and YouTube – through which it can provide more timely information and interact directly with customers.
EMCOR is an electrical and mechanical construction, and facilities services firm based in the US.
The Company provides a range of building and industrial services across its five business segments: United States Electrical Construction and Facilities Services; United States Mechanical Construction and Facilities Services; United States Building Services; United States Industrial Services; and United Kingdom Building Services. EMCOR’s services include construction services relating to electrical and mechanical systems for both non-residential and residential facilities; various services relating to the operation, maintenance and management of industrial facilities, such as refineries and petrochemical plants; and repair and maintenance services in relation to electrical and mechanical systems.
The Company’s customers include industrial, commercial, institutional, and utilities customers.
EMCOR works alongside a number of companies and organisations across its five operating segments. These partnerships include:
- Supplier and Vendor Partners, comprising suppliers of equipment, tools, and materials used in the Company’s various projects, and suppliers of services that support, facilitate, or supplement the Company’s own services;
- Joint Venture Partners, comprising various companies, principally engineering and construction companies, with which the Company provides joint services and collaborates on projects through mutually owned entities;
- Safety and Productivity Partners, comprising a range of companies that collaborate with the Company to improve safety and productivity practices across EMCOR’s portfolio of companies and projects; and
- Strategic and Alliance Partners, comprising a range of companies and organisations, with which the Company shares resources and collaborates on joint projects.
EMCOR has established partnerships with companies and organisations across multiple sectors, including British Airways, Heriot Watt University, and BAE Systems.
EMCOR’s key resources are its equipment and supply chain, physical infrastructure – including offices and facilities, its IT and communications infrastructure, its partnerships, and its personnel – particularly its specialist technical staff.
EMCOR owns and operates a number of properties across the US and the UK, including more than 25 facilities spanning an area greater than 50,000 square feet, the majority of which are leased.
EMCOR incurs costs in relation to the repair and maintenance of its equipment, the procurement of materials and supplies, the payment of fees to third-party service providers, the maintenance of its It and communications infrastructure, the management of its partnerships, and the retention of its personnel.
In 2015 EMCOR recorded cost of sales in the amount of $5.77 billion, which includes the procurement and maintenance of supplies and equipment, and the procurement of services from third parties. The Company’s selling, general and administrative expenses – including the payment of salaries and benefits to its workforce of 29,000 employees – totaled $656.57 million for the year.
EMCOR generates revenue through its provision of various engineering, construction and industrial services to a broad range of customers. This principally includes revenue derived from contracts relating to small and large contracts across it five operating segments.
In 2015 EMCOR generated annual revenue of $6.72 billion, up slightly on the $6.42 billion recorded by the Company in 2014. This small increase was attributed to general growth across the Company’s segments. The Company’s largest revenue generator was its United States Mechanical Construction and Facilities Services segment, which generated $2.31 billion in revenue for the year. The only other segments to generate more than $1 billion in revenue were the United States Electrical Construction and Facilities Services and United States Building Services, which recorded revenue of $1.37 billion and 1.74 billion respectively.
info: Anthony (“Guzzi”) has served as President at EMCOR since joining the Company in 2004, and has been the Company’s Chief Executive Officer since 2011. Prior to assuming his current role, he served as Chief Operating Officer for several years. Guzzi began his career in the US Army, serving from 1986 as Light Infantry Captain. He moved into the corporate sphere in 1991 on leaving the military, initially working at global consultancy McKinsey and Company, where he served as a senior manager. He went on to hold a number of executive positions before joining EMCOR, including a spell as President of United Technologies Corporation’s Carrier North American Parts, Distribution and Services Division.
info: Mark (“Pompa”) has served as Executive Vice President and Chief Financial Officer at EMCOR since 2007. Pompa has been with the Company since the 1990s, and has served in a range of senior positions. This includes spells as Vice President and Controller, Treasurer, and Senior Vice President and Chief Accounting Officer. Prior to joining EMCOR, Pompa worked for several years at Arthur Andersen, where he served primarily in the Audit and Business Advisory departments.
info: Bill (“Reid”) has served as Chief Executive Officer of EEMCOR Industrial Services for a number of a years. Reid has years of experience working in the oil and gas industry, beginning in 1974 when he joined Cameron Iron Works directly after graduating. In 1982 he joined NL Industries as part of its oilfield service business, later serving as Vice President of Worldwide Operations for Baroid Fluids. Reid served as President of Sperry Sun Drilling Services Group, until being appointed Chief Executive Officer and President of Schlegel Lining Technology, a manufacturer of high-density polyethylene lining systems. In the early 2000’s, prior to joining EMCOR, Reid was named Chief Executive Officer and Director of ITEQ.
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